What Are The Benefits Of SAFe® Participatory Budgeting?

 

SAFe (Scaled Agile Framework) is an enterprise agile framework that helps organizations to optimize their software development process. It is a framework that ensures the management of changes in the market, and it has a strong emphasis on enabling continuous improvement.

Regarding integration, fairness, and accountability, organizational leaders get interested in how SAFe participatory budgeting can be effectively applied to members of an organization or portfolio, both as an economic process and potential positive outcomes such as commitment, alignment, and learning.

In this blog, we will discover what Participatory Budgeting is, its overview, and the benefits in detail.

What Is Participatory Budgeting In SAFe®?

PB is the collaborative and dynamic process that LPM uses to collect data and reach a consensus on how to invest in the best possible solutions. This is a worthwhile LPM part that can help you set Lean Value Stream budgets.

Overview - Participatory Budgeting (PB)

Participants (stakeholders) in the PB event are divided into groups of 4-8 people. To foster knowledge, every group has a blend of diverse roles from numerous value streams. Each member receives solutions and epics lists, the investment funding amount required for value flows, and an equal share of the entire portfolio budget.

For example, consider a portfolio with a total requested investment funding of $46 million and a 40 million USD budget. A five-participant forum would provide $8 million to every participant.

Participants co-invest their personal budgets on demand in line with the policy that epics and solutions must normally be funded to receive actual funding upon forum closure. As participants cannot fund all items, they must work together for the best investment identification.

More importantly, participants from different value streams need to pool their budgets to support initiatives that no single value stream can finance on their own. As partially funded solutions and epics can be completed, the group will negotiate where the best investments can be made. Discussing this collaboration enables participants to make decisions that optimize value creation across the portfolio.

 

“Without involvement, there is no commitment. Mark it down, asterisk it, circle it, underline it. No involvement, no commitment.”

- Stephen Covey (The Seven Habits of Highly Effective People)

 

In PB forums, teams discuss to what extent their decisions face barriers to the investment horizon and adjust their investments accordingly. Forums also empower teams to do suggestions that can decrease/increase investment in an epic/solution that reflects the team's wisdom and experience.

The results of several forums are analyzed and the LPM makes the necessary adjustments to the value flow budgets in line with the agreed financing.

 

Benefits of SAFe® Participatory Budgeting

 

1.      Increased employee participation, motivation, and morale.

2.      Alignment because they set the direction and execution of the work as they have a coordinated common goal.

3.      With the remaining signs of member deprivation reduced, other members will have a better opportunity to form a consensus on what they want to do.

4.      Goal congruence.

5.      PB offers the exchange of information between department managers and seniors in the management (Upward report information).

6.      More teamwork and achievement as they stay together throughout the journey.

 

Conclusion

 

Scaled Agile Inc. understands the challenges of building leading metrics and linking to budget and cost-effectiveness across the enterprise. Understanding the problem is the first step in learning how and when to invest. The ability to actively and dynamically manage budgets using SAFe is a key aspect in developing a new learning approach for organizations/systems.

Get experience in participatory budgeting, specialized tools to manage a portfolio, and key strategic plans to help the organization with SAFe Certification Training that creates the right solution for you.

Begin with the foundational course “Leading SAFe Certification” and reap the benefits in both: organizations and individual.

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