In Scaling Agile, you must change the traditional project-based funding and coast accounting in a Product Lean-Agile Budget with Lean Budget Guardrails.
” Lean Budget Guardrails describe the policies and practices for budgeting, spending, and governance for a specific portfolio. SAFe provides strategies for Lean budgeting that eliminates the overhead of traditional project-based funding and cost accounting. In this model, LPM maintains appropriate levels of oversight through the allocation of value stream budgets and by applying Lean budget guardrails. This way, enterprises can have the best of both worlds: a development process that is far more responsive to market needs, along with professional and accountable management of spending. “
© Scaled Agile, Inc.
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Lean Budget Guardrails :
- Guide investments by horizons
- Use capacity allocation to optimize value and solution integrity
- Approve significant initiatives
- Insure of Continuous Business Owner engagement