Lean Value Tree

(LVT)

discovery-loop-outcomes loop position

What is it?

It’s a conceptual tool to facilitate, capture and share the companie’s strategy and visión for all the organization’s levels and teams.

Why use it?

This enhance to manage Lean Portfolio Management. It uses a lean [](<>)approach impulsed with colaborative work and based in value delivery. It takes advantage of the visual work propeties that are realized into Lean Portfolio level, it permits advice us that all that we do goes in function of Customer Value and corporative visión, avoiding to make inicitatives that are time waste.

Further Information

It uses a framework that goes with a Top-Down structured in Vision, Goals, Bets ans Initiatives. Show the picture:

The goals: LVT allows to align the goals to the company’s corporative visión, goals are raletively stable and managed at high level, they looks for to be aligned with outcomes more tan specific solutions or outputs. The goals should be ambitious.

The bets: A goal is composed for a set of bets, every bet is a value hypothesis that the organization believes that can help to achieve the goal. If the bet doesn’t functions then is taken out the tree, in this way we assure not to spend time in something that doesn’t help top achieve the corporative visión. LVT uses the word bet becouse it forces to shift the mindset to the actual VUCA Markets.

Initiatives: One initiative shows what should we make to test our hyphotesis, typically they takes the shape of little hyphotesis that have a clear way to measure its success, through that the team can take decitions in the short term about if the hyphotesis is approved or denied. The difference between a project and a initiative is that the first one has a fixed deadline, while the another not. Initiatives should be tested within a product backlog with little hyphotesis that evolves and constantly are reprioritized, that means that doesn’t exist a fixed deadline. The judgment to complete an initiative is based in review the compliance of the defined outcome.

It’s important that LVT would be visible for all the organization and be reviewed regularly for the Lean Portfolio Steering Committee. Furthermore, it should define responsables in goals, bets and inicitative levels for their implementation, creating diverse teams to achieving it.

Furthermore this continuous review of Lean Portfolio with LVT makes possible to remove, incorporate or correct initiatives, bets and goals.

A dilema that exists in all the organizations is that the LVT would be only for strategic initiatives or Business As Usual (BAU) too (this are between the 80 ans 90% of portfolio). If the BAU are taken out it’ll permit to have better strategic visión, however the persons that works in BAU could feel displaced. The answer for this question is that it depends of the organization size, if it’s small or medieum, then it’s better to incorporate 100% of the lean portfolio, on the contrary the strategic initiative can’t be seen.

Look for an simple example of a LVT in this article’s image:

How you can see in the example the long term visión is to get a healthy life, a complete goal would be to looks well for to end of the year’s party, that has associated two bets, this are to eat less and to make exercise; and everyone of the bets has initiatives associated.

The idea is to define sucess metrics and monitor them constantly, for example. To measure the clothing size, the weight, to make glucose tests, triglycerides, cholesterol and other, and if they don’t work the bets then should be changed.

I see the LVT like an excelent tool to manage lean portfolio, that could be the key to have an more agile adaptatibity capacity into the VUCA market and it’s an excelent opportunity to engage digital transformation working in collaboration with PMO, shifting it’s traditional focus in projects to bets with hyphotesis from LVT.

I recomend to read the book EDGE of Jim Highsmith, an agile manifesto signatory.

Improve this practice
View all practices