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Organizations are turning to agile frameworks. Sure, you have heard that!

In the face of escalating costs and the imperative to deliver value swiftly and efficiently, organizations are turning to agile frameworks. Additional structure is essential to coordinate agile teams and maximize their potential effectively. Organizations struggle to align investments with sgoals amidst competing priorities. This is why Lean Portfolio Management in 2024 emerges as an essential component and as the backbone that sustains companies amid the relentless pace of technological evolution and market fluctuations.

## What is Portfolio Management?

Portfolio management involves overseeing a collection of projects, investments, or other assets to achieve specific financial or strategic goals. In a business context, Portfolio Management means managing various projects or products to ensure they collectively meet the company’s objectives efficiently and effectively. The aim is to balance risk against performance, allocate resources optimally, and ensure that the overall portfolio aligns with the organization’s strategic direction.

Portfolio management leadership teams help connect a company’s big-picture plans to what actually gets done. Organizations manage various types of portfolios, including Business, Product (Line), Project Portfolio, IT Project, etc.

## What is Lean Portfolio Management (LPM)?

Building on the concept of portfolio management, Lean Portfolio Management (LPM) integrates principles from Lean thinking. Lean principles focus on maximizing value by minimizing waste and inefficiencies. In LPM, the portfolio is managed in a way that emphasizes flexibility, speed, and the efficient use of resources. 

### Exploring Lean Portfolio Management (LPM)

Lean Portfolio Management (LPM), guides organizations in delivering value in a lean-agile environment. It aligns the project portfolio with business objectives, optimizes resource allocation, and fosters continuous improvement. LPM provides a structured framework for decision-making, prioritization, and governance, ensuring efficient resource use and responsiveness to customer needs and market changes. It holds the highest level of decision-making and financial accountability for a portfolio’s solutions and development value streams. Individuals in LPM roles, are responsible for business outcomes and aligning strategy with actions.

#### The Three Dimensions of LPM

**Strategy and investment funding:** Strategy and investment funding ensure the portfolio aligns and is funded to meet business targets. Lean Portfolio Management (LPM) involves developing a clear portfolio vision, guided by detailed roadmaps for major initiatives and timelines. Enterprise architects support this planning with a robust technological framework, ensuring project viability and adaptability. LPM manages large-scale projects called epics through a flexible process, staying aligned with the evolving business environment. Funding is controlled with lean budgets and financial guardrails, maintaining spending control and adaptability. LPM also balances new development with ongoing maintenance, ensuring efficient resource utilization

**Agile Portfolio Operations:** Agile Portfolio Operations enhance coordination and support for decentralized project execution, leveraging SAFe principles to empower teams and align with business goals. This approach manages project interdependencies (value streams) to optimize performance and foster innovation. The Lean-Agile Center of Excellence (LACE) supports Agile Release Trains (ARTs) with best practices, troubleshooting, and ensuring continuous workflow. The shift from traditional Project Management Offices (PMOs) to Value Management Offices (VMOs) emphasizes decentralized, value-focused management, continuous improvement, and operational excellence. Agile Portfolio Operations streamline processes, enhance efficiency, and maintain a steady workflow, driving the organization toward its strategic objectives.

**Lean Governance:** Lean governance oversees spending, auditing, security, compliance, and performance with dynamic adjustments based on ongoing project evaluations. The goal is to align financial decisions with strategic objectives, ensuring spending directly supports business goals. Performance metrics assess customer needs, workflows, and strategic aims to inform resource allocation. Continuous compliance manages risks and integrates governance throughout the project lifecycle with automation, ensuring regulatory adherence witht slowing processes. Lean governance fosters a responsive, agile management style that adapts to changes, maintains compliance and security standards, and relies on automation for efficiency and speed.

## How is Lean Portfolio Management different from Traditional Portfolio Management?

Unlike traditional portfolio management, SAFe’s LPM doesn’t rely solely on a designated department or a chief manager. Instead, it focuses on a collaborative approach to financial decision-making, opportunity flow, governance, and fostering a new working method. This article delves into the essence of LPM in SAFe, providing practical insights for organizations looking to embrace business agility. 

LPM is different from traditional portfolio management in various aspects, some of which are listed below.

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## Why you should consider Lean Portfolio Management in 2024?

Traditional portfolio management falls short in the digital age, where speed and innovation reign supreme. In 2024’s ever-changing business landscape, Lean Portfolio Management isn’t just a choice; it’s a must. LPM empowers swift responses to market shifts, seizing new opportunities while managing risks smartly. It’s all about delivering value to customers and boosting ROI. By breaking down silos between teams and fostering collaboration, LPM drives innovation and efficiency. It’s the compass guiding organizations to align strategies with daily actions, make better decisions, and confidently navigate uncertainty. 

Embracing a culture of continuous improvement, LPM helps organizations stay competitive by aligning strategic objectives with day-to-day execution, improving decision-making, and adapting to uncertainty. Lean Portfolio Management enables organizations to prioritize high-value tasks, allocate funding accordingly, and establish feedback mechanisms for accelerated delivery. As a result, companies devote resources more effectively to meaningful endeavors.

## Benefits of Lean Portfolio Management

Let’s explore the various benefits implementing Lean Portfolio Management (LPM) brings:

1.  LPM ensures a clear vision for the portfolio’s future, aligning projects with business targets. This clarity helps teams understand their role in achieving organizational goals, fostering alignment across the entire portfolio.
2.  Detailed roadmaps and technological frameworks enable efficient project planning and execution. This ensures that initiatives are feasible and adaptable to future changes and innovations, enhancing overall project success.
3.  LPM allows for adjustments based on feedback and new insights, ensuring that projects remain aligned with the evolving business environment. This adaptability helps organizations respond effectively to changing market conditions or internal needs.
4.  Lean budgets and financial guardrails keep spending in check while allowing flexibility to adapt to new opportunities or challenges. This approach ensures that financial resources are used efficiently, maximizing the value delivered by projects.
5.  LPM prioritizes balanced workflows, ensuring a smooth blend of new development and ongoing maintenance to prevent bottlenecks. This streamlined approach optimizes resource utilization, enhancing efficiency and productivity. Agile Portfolio Operations further streamline processes, maintaining a steady workflow that drives the organization towards strategic objectives, fostering innovation, and optimizing overall performance.
6.  LPM enhances coordination and support of decentralized project execution within the organization. By leveraging SAFe principles and Agile Portfolio Operations, teams are empowered to work towards broader business goals while managing interdependencies effectively.
7.  Lean governance ensures efficient oversight of spending, auditing, security, compliance, and performance. By shifting from rigid budgeting to dynamic adjustments, organizations can make informed decisions that directly contribute to business goals while remaining compliant and secure.
8.  Continuous compliance manages risks effectively, integrating governance throughout the project lifecycle with automation. This ensures regulatory adherence without slowing down processes, maintaining high standards of compliance and efficiency.
9.  Overall, implementing LPM fosters a responsive, agile management style that stays aligned with strategic goals, adapts to changes, and maintains compliance and security standards. This agility enables organizations to respond quickly to market shifts and customer needs, gaining a competitive edge in the industry.

## SAFe® Lean Portfolio Management Course

Our Lean Portfolio Management course provides a comprehensive understanding of managing portfolios within the SAFe® framework. Throughout the course, you’ll develop a Lean-Agile mindset and learn to navigate challenges like project-cost accounting while embracing Lean Portfolio Management as a transformative process. Key learning objectives include establishing a portfolio strategy and vision aligned with enterprise goals, mastering the management of Portfolio Epics and investment funding, and implementing Agile portfolio flow using tools like Portfolio Kanban and the WSJF method. You’ll also gain expertise in Agile Portfolio Operations, including Value Stream Coordination and executing Agile Release Trains (ART) while ensuring Lean governance through effective measurement of Lean Portfolio Performance and continuous compliance. With hands-on experience and practical exercises, this course equips you to drive organizational agility and maximize value delivery in today’s dynamic business landscape.

## Concluding Thoughts?

Lean Portfolio Management isn’t just about managing portfolios; it’s about driving meaningful change. It’s about empowering teams, fostering collaboration, and delivering customer value. In a world where change is constant and competition is fierce, LPM offers a roadmap to success—a roadmap built on lean principles, collaboration, and a relentless focus on customer value. 

In 2024, Lean Portfolio Management isn’t just a trend; it’s a strategic imperative for organizations.

[Talk to your learning consultant for information, course details, and guidance to kickstart your agile learning journey.](https://www.skillbookacademy.com/instructors)

In 2024, Lean Portfolio Management (LPM) is essential for organizations to deliver value efficiently amidst rising costs and rapid technological changes. 

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## Is Your Enterprise Responding Quickly to Market Dynamics?

If your organization is not swiftly adapting to market changes and focusing on customer centricity, a cultural shift may be necessary. This is where SAFe Transformation comes into play.

The Scaled Agile Framework (SAFe) is a widely adopted approach for organizations aiming to drive transformation and instill agility at all levels—organizational, portfolio, program, and team. SAFe provides a comprehensive solution for achieving business agility, enabling organizations to adapt quickly to changing market conditions and stay focused on customer needs.

## What is SAFe Transformation?

Adaptation is now a necessity. Organizations must continuously evolve to meet customer needs, embrace technological advancements, and navigate market dynamics. Traditional organizations often struggle to keep pace in today's fast-moving business landscape.

SAFe Transformation involves adopting the Scaled Agile Framework (SAFe) across the organization to scale Agile practices effectively. This includes restructuring teams, aligning strategy with execution, enhancing collaboration, accelerating time-to-market, and fostering continuous improvement. It equips leaders with tools to navigate change across business strategies, portfolio management, program execution, and team collaboration. Organizations analyze challenges, assess potential impacts, and develop resilient contingency plans by making informed decisions and embracing calculated risks.

This blog will guide you through starting the SAFe transformation journey in a traditional organization, ensuring a smooth and effective transition.

### Understanding SAFe: An Overview

SAFe, or the Scaled Agile Framework, guides enterprises in scaling lean and agile practices through organizational and workflow patterns. It promotes alignment, collaboration, and delivery across multiple agile teams by integrating principles from Lean, Agile, and DevOps to support large-scale, complex projects.

#### The Four Core Values

SAFe's effectiveness relies on its four core values:

*   **Alignment**
*   **Transparency**
*   **Respect for People**
*   **Relentless Improvement**

[Read more about SAFe Core Values](#)

#### SAFe Lean-Agile Principles

SAFe is founded on ten fundamental Lean-Agile principles that guide its roles and practices:  
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_SAFe Lean-Agile Principles_

1.  **Take an Economic View:** Focus on the economic impact of decisions to maximize value for the customer and optimize the entire value stream.
2.  **Apply Systems Thinking:** View the organization as a system of interconnected parts, optimizing the whole rather than just individual teams or departments.
3.  **Assume Variability; Preserve Options:** Embrace uncertainty by keeping options open as long as possible, allowing flexibility and adaptation.
4.  **Build Incrementally with Fast Integrated Learning Cycles:** Deliver value in small increments with fast learning cycles, enabling rapid feedback and continuous improvement.
5.  **Base Milestones on Objective Evaluation of Working Systems:** Set milestones based on working systems’ performance to ensure measurable progress aligned with business goals.
6.  **Visualize and Limit WIP (Work in Progress), Reduce Batch Sizes, and Manage Queue Lengths:** Use visual tools to track progress, limit WIP, reduce batch sizes, and manage queues to improve efficiency.
7.  **Apply Cadence, Synchronize with Cross-Domain Planning:** Use regular planning, execution, and delivery cycles to synchronize activities across teams and domains, ensuring alignment.
8.  **Unlock the Intrinsic Motivation of Knowledge Workers:** Foster autonomy, mastery, and purpose to motivate knowledge workers, driving innovation and higher performance.
9.  **Decentralize Decision-Making:** Empower teams to make decisions quickly, increasing agility and responsiveness to changes.
10.  **Organize Around Value:** Structure teams and resources around delivering value to the customer, aligning work with customer needs and business outcomes.

#### Key Pillars of Successful SAFe Implementation

1.  **Leadership Engagement and Commitment:** Leadership involvement is critical for driving successful SAFe implementation. Executives and senior management must actively champion Agile values and practices, demonstrating unwavering support throughout the transformation journey.
2.  **Comprehensive Training and Education:** Equip teams with essential SAFe knowledge and skills through comprehensive training sessions to ensure a shared understanding and consistent implementation of Agile methodologies.
3.  **Cultivating a Lean-Agile Mindset:** Shift from traditional command-and-control structures to a Lean-Agile mindset, encouraging adaptability, responsiveness, and a focus on delivering customer value.
4.  **Agile Release Trains (ARTs):** Establish ARTs, which are cross-functional teams aligned around a shared mission to deliver value consistently, enabling synchronization and collaboration across multiple teams.
5.  **Embracing Continuous Improvement:** Foster a culture of continuous improvement by regularly assessing processes, outcomes, and feedback loops to remain responsive to market changes and enhance productivity.

### How to Begin Your SAFe Transformation Journey

1.  **Clarify the Need for Change:** Understand why there is a need for change and articulate a compelling vision for transformation.
2.  **Establish the Change Vision:** Root the vision in the Lean-Agile Mindset and SAFe Principles, outlining specific objectives and baseline metrics.
3.  **Assess the Current State:** Evaluate existing processes, culture, and capabilities to identify areas for improvement and readiness for an agile transformation.
4.  **Evaluate the Baseline:** Create a customized model for assessing maturity and measuring progress.
5.  **Strategize the Key Steps:** Collect and analyze baseline data, communicate the target maturity level, and prepare for key categories including organizational readiness, content readiness, logistics, and enablers.
6.  **Educate and Empower Leaders, Stakeholders, and Teams:** Ensure leaders and stakeholders understand SAFe principles and provide training for teams on Agile methodologies and SAFe practices.
7.  **Create Agile Release Trains (ARTs):** Establish ARTs aligned with value streams and business units.
8.  **Start Slow:** Implement small, manageable changes to minimize disruption and gradually scale up.

### Common Challenges in SAFe Implementation

1.  **Resistance to Change and Cultural Alignment:** Address resistance by fostering a culture of openness and continuous learning.
2.  **Ensuring Alignment Across Teams and Continuous Improvement:** Use regular PI planning and synchronization meetings to maintain alignment and promote continuous improvement.
3.  **Training and Skill Development:** Provide comprehensive training on Agile methodologies and SAFe practices.
4.  **Implementing Agile Release Trains (ARTs) and Logistics Planning:** Focus on setting up and managing ARTs effectively.
5.  **Balancing Local Optimization with System-wide Impact:** Use a systems thinking approach to measure overall business outcomes.
6.  **Scaling Agile Across Complex Organizations and Sustaining Change:** Utilize SAFe scaling frameworks and develop a change management strategy that includes continuous training and regular assessments.

### Role of SAFe Implementation Experts

*   **Onboarding Stakeholders with Case Studies and Strategic Analysis:** Experts bring valuable case studies and strategic analyses to facilitate stakeholder onboarding.
*   **Collaborative Partnership with Internal Teams for Change Leadership:** Experts work with internal teams to establish centers of excellence and empower internal champions.
*   **Providing Fresh Perspectives for Innovative Solutions:** Experts tailor the SAFe framework to fit the organization's specific context and needs.
*   **Tailoring Expertise to Fit Organizational Context:** Experts customize implementation strategies and practices to align with organizational goals.
*   **Bringing Credibility, Authenticity, and Unbiased Guidance:** Experts offer credibility and unbiased views through their track record of successful transformations.
*   **Assessing Critical Paths and Facilitating Strategic Resolution:** Experts identify critical paths and potential roadblocks.
*   **Continuous Development through Training and Mentoring:** Experts provide ongoing mentoring and coaching to develop internal competencies in SAFe practices.

At Skillbook Academy, we specialize in professional development through Agile Training and provide comprehensive solutions for business and product agility. From individual coaching to team development and entire organizational transformation, we address all aspects of agile implementation. Discover how we can help you achieve business agility! Reach out to us today for a personalized agile assessment and transformation strategy.

## Conclusion

In the words of Allen Ward, “A strategic inflection point is that moment when technological advancements, market changes, and customer expectations demand a company to either transform radically or face obsolescence.” This resonates profoundly in today’s fast-paced business environment. Traditional organizations now confront immense challenges due to rapid technological changes, dynamic markets, and evolving customer demands.

SAFe transformation provides a structured approach to tackle these challenges, empowering organizations to foster agility and customer-centricity at every level. By embracing SAFe principles grounded in Lean, Agile, and DevOps methodologies, businesses can streamline operations, boost collaboration, and expedite value delivery to customers. However, successful adoption hinges on implementing the right strategy and receiving expert guidance, as outlined in this blog. A well-defined strategy ensures that organizations can navigate the complexities of transformation effectively, driving sustainable success and achieving their business objectives.

Is your enterprise struggling to adapt to market changes? Discover how SAFe Transformation can drive agility and customer focus. Learn more in our latest blog on SAFe implementation.

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Scrum is a framework developed by Ken Schwaber and Jeff Sutherland in the 1990s to allow product development teams to be adaptable and responsive to changes in stakeholder requirements. Scrum is based on Agile principles and involves breaking down the product development process into several iterations, with each iteration building on the learnings from the previous one.

### What is Scrum Framework?

The Scrum framework includes several elements, including the Scrum artifacts, roles, goals, and events which are all customer-centric in their approach. Scrum is implemented by a Scrum team which consists of a Scrum Master, a Product Owner, and Developers. Each member of the team works closely together to achieve the set goals and adhere to the Scrum methodology to stay agile and adaptable throughout the process. The Scrum Guide, published by Ken Schwaber and Jeff Sutherland, provides guidance and support for teams implementing Scrum.

There are three Scrum artifacts such as product backlog, sprint backlog, and increment, while the three Scrum goals are the product goal, sprint goal, and the definition of done. The Scrum artifacts and goals are aligned with each other in a way that each artifact commits to the respective goal. The product backlog is committed to achieving the product goal, the sprint goal is the commitment to the sprint backlog, and the increment is in commitment with the definition of done.

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### What are the major events of Scrum?

There are five primary Scrum events, as outlined in the Scrum Guide released in November 2020.

#### 1. Sprint

Scrum is an innovative framework that emphasizes the principles of lean thinking and empiricism to create a more efficient and productive development process. To achieve this, Scrum uses small timed events called sprints, which are designed to produce a potentially shippable product. Each sprint has a specific duration, usually lasting no more than a month.

As soon as one sprint ends, the next one begins, allowing the Scrum team to continuously learn from their experiences and improve the process. The ultimate goal of sprints in Scrum is to empower the team to deliver the best results possible while minimizing waste and remaining flexible to changes and feedback from stakeholders. Overall, Scrum sprints are a powerful tool for maximizing efficiency and creating a more successful development process.

#### 2. Sprint Planning

Sprint planning is an important event in the Scrum methodology where the product backlog is refined and the most crucial items are chosen for the upcoming sprint. The entire Scrum team participates in this process to decide on the sprint goal. Sometimes, other stakeholders may also be invited to assist with the decision-making process.

The primary objective of sprint planning is to determine the “why,” “what,” and “how” of the sprint. This means that sprint planning answers questions about the purpose of the sprint, the items that need to be worked on during the sprint, and the process of achieving the sprint goal.

If the sprint is one month long, sprint planning should take a maximum of 8 hours. However, if the sprint is shorter, the timing of the planning session will be less.

#### 3. Daily Scrum

The Daily Scrum is a meeting that takes place every day during the sprint. It aims to facilitate communication among developers so that they can analyze their progress and ensure alignment with the sprint goal. The meeting is also an opportunity for the team to identify any impediments and come up with new strategies for tackling the product backlog.

The Daily Scrum is designed to promote effective communication among team members while empowering them to adapt to new challenges. To keep things simple, the meeting is held at the same time and place every day and should not exceed 15 minutes.

#### 4. Sprint Review

The Sprint Review is held towards the end of a sprint and involves all the stakeholders and developers. During the review, the team evaluates the work completed during the sprint and identifies opportunities for future improvements. They also decide on new goals and what can be added to the next product backlog.

Typically, the Sprint Review will last for up to 4 hours for a one-month sprint, but it can be shorter for shorter sprints. The main objective is to promote transparency, collaboration, and teamwork among the team members.

#### 5. Sprint Retrospective

The Sprint Retrospective is an important event that marks the end of a sprint. Its main objective is to reflect on the achievements and shortcomings of the sprint and, to guide the team’s future efforts. During this event, the scrum team evaluates their success against their definition of done and identifies any gaps that need to be addressed. They also discuss any issues or problems they encountered during the sprint, and how they were or were not resolved.

The Sprint Retrospective should not exceed three hours for a one-month sprint. The event is shorter for a shorter sprint. It’s worth noting that the discussions that take place during this event can potentially impact the sprint backlog.

### Conclusion

The Scrum framework is designed to empower product development teams to adapt to rapidly changing customer requirements and respond to them empirically. By adopting an Agile mindset, Scrum teams can not only prevent resource waste but also promote a positive work environment. The framework is such that the shortcomings of one sprint will lead to the start of another, further enhancing the team’s positive outlook. Scrum boosts team morale by setting achievable goals and thus increasing the chances of success.


With the massive demand for Scrum Masters and Product Owners in the job market, the questions about what Scrum is and how it is implemented are natural. Here’s a list of the 5 major events of Scrum, with a brief overview on the framework of Scrum.

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The need for agility has never been more essential for organizations aiming to stay up-to-date with the latest trends and achieve success and expansion in a world of rapidly evolving technology. This video offers valuable insights into the five agile trends for 2023 and beyond to steer your organization toward a successful future.

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Top 5 Agile Trends of 2023 

As SAFe 6.0 brings forth substantial improvements in scalability, alignment, and adaptability, you might ask, "What's Changed and Why Does It Matter?" This expert-led webinar is your answer to gaining valuable insights into the key modifications and benefits of the latest version. The video highlights what has remained constant and the best practices to ensure a seamless and successful team transition. It is the ultimate resource for clearly understanding the SAFe® 6.0 upgrade.

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This video provides a comprehensive understanding of the Scrum framework, covering everything from the Product Owner's vision and backlog prioritization to collaborative sprint planning, development of potentially releasable product increments, and the crucial Sprint Review. You'll also gain insights into the team-exclusive Sprint Retrospective. Understanding these fundamental concepts and intricacies will enable you to lead your projects to success using Scrum confidently.

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The Scrum Framework in 15min

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I took the SAFe Product Owner/Product manager training with Skillbook and was so pleased with the training. This was my second course and I plan to take many more. My instructor was great and all communication and activity with the academy was great as well. I highly recommend their training.

Our instructor did a fantastic job in the Leading SAFe certification program. It did not even seem to matter that it had to be a virtual class because of the current crisis. The class was very engaging and it was clear from minute 1 that we had a highly competent teacher in our midst. Those two days flew by and there was not a single time that any of us in that class was restless. He has us fully engaged and truly learning. I feel very fortunate to have been in that class.Many thanks also to Skillbook Academy for being so responsive and patient with all my concerns prior to the class.



The Skillbook's SAFe class was very well planned out and executed. The instructor was well prepared and presented the lesson in a clear and concise manner. This was my first class in SAFe and I felt so lost going in but by the end of the class, I understood the concepts and the purpose of LPM.


I had preconceived ideas about Scrum but wanted to learn more. WOW I had no idea how much Scrum/Agile philosophy meshes with my normal leadership style. I'm excited about the future leading and advocating for true Scrum environments. Amazing experience all around and I highly recommend it for anyone looking to become a Scrum Master or just looking for more information


SAFe Scrum Master was one of the best courses I have taken. In the 2 day workshop I was with professionals in the field or aspiring professionals. The instructor Ryan did a phenomenal job facilitating the course and working with the 16 people in the class. I am looking forward to my next certification that I will be taking with SAFe.


Had a great experience with the CSPO certification course. Everyone involved in the process was awesome!

A fantastic experience with Skillbook Academy! Took both the CSM & CSPO certifications. Professional, educational, very hands on, with lots of real-life scenarios, in a very comfortable and convenient environment. Very well organized, exceptionally informed and experienced instructor - I could listen to him talk for hours.

The training was wonderful and great. Great trainer, SCRUM contents were well explained. I like the hands-on aspect of the training and group (Team) setting method of approach in solving problems. The basic bases of SCRUM applications and its core values when it comes to solving complex problems utilizing its FRAMEWORK (not methodology) concepts. The usage of MIRO and TRELLO boards for product metrics and tracking is amazing. To cap it all, the presentations of 'WHY SCRUM' to the executives were so interesting. I believe everyone, like me, learnt a bunch of ideas and very deep knowledge of scrum rudiments and its applications.
(Highly Recommended)
