Discuss Scaled Agile SP-SAFe-Practitioner Exam Topic 5 Question 44

Which Lean budget Guardrail helps ensure the appropriate allocation of budgets to balance near-term opportunities with long-term strategy and growth?

AApplying capacity allocation

BGuiding investments by horizon

CApproving significant initiatives

DContinuous Business Owner engagement

Suggested Answer: B

Guiding investments by horizon is one of the four Lean budget guardrails that describe the policies and practices for budgeting, spending, and governance for a specific portfolio.This guardrail helps ensure that the portfolio allocates its budget to solutions that reflect different time horizons and risk profiles, balancing near-term opportunities with long-term strategy and growth1.The portfolio-level guidance for investments by horizon is based on the four horizons model2, which categorizes solutions into four types: Horizon 0 (solutions that are being decommissioned), Horizon 1 (solutions that are mature and generate most of the current revenue), Horizon 2 (solutions that are emerging and have high growth potential), and Horizon 3 (solutions that are exploratory and have high uncertainty).Each value stream should allocate its budget to solutions in these horizons according to the portfolio's vision and roadmap1.Reference:1:Lean Budget Guardrails - Scaled Agile Framework2:Investment Horizons - Scaled Agile Framework

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21 comments · newest first

Trinidad 10 months ago

Wait, is this really the best way to balance budgets?

Herminia 10 months ago

I’m not so sure about that, C could also fit.

Nan 10 months ago

Totally agree, B makes the most sense!

Bronwyn 11 months ago

I think it's B, guiding investments by horizon.

Millie 11 months ago

A is definitely important too, but B feels right for this!

Sage 11 months ago

I’m leaning towards D, "Continuous Business Owner engagement," but I’m not confident. It seems like it could relate to ensuring alignment with long-term strategy.

Sabine 11 months ago

I feel like I’ve seen a question similar to this before, and it was about how to prioritize investments. Maybe it's B again?

Giovanna 11 months ago

I'm not entirely sure, but I remember something about capacity allocation being important for resource management. Could it be A?

Wynell 12 months ago

I think the answer might be B, "Guiding investments by horizon," since it sounds like it relates to balancing short-term and long-term goals.

Fausto 12 months ago

Ah, I see what they're getting at now. The Lean budget Guardrail that helps ensure the right balance between near-term and long-term priorities is "Guiding investments by horizon." That makes sense, since it's all about allocating resources across different time frames. I feel good about selecting option B.

Kathrine 12 months ago

I'm a little confused by this question. There are a lot of different Lean budget Guardrails, and I'm not sure which one is specifically focused on balancing short-term and long-term needs. I'll have to review my notes and see if I can figure it out.

Laquita 1 year ago

Okay, I've got this. The key here is that the question is asking about which Guardrail helps balance near-term and long-term priorities. Based on that, I'm pretty confident the answer is B, "Guiding investments by horizon." That's all about allocating resources across different time frames.

Elsa 1 year ago

Hmm, this is a tricky one. I know Lean budgeting is all about being flexible and responsive, but I'm not sure which specific Guardrail is meant to balance short-term and long-term needs. I'll have to think it through carefully.

Jeffrey 1 year ago

This seems like a question about Lean budget Guardrails, so I'll need to think about how those work to balance near-term and long-term priorities. I'm not totally sure, but I think option B about guiding investments by horizon might be the right answer.

Tijuana 1 year ago

I agree with Soledad, because it helps in balancing short-term and long-term goals.

Soledad 1 year ago

I think the answer is B) Guiding investments by horizon.

Olene 1 year ago

D seems like the obvious choice here. Continuous Business Owner engagement is crucial for aligning budgets with strategy.

Rebbeca 1 year ago

I think option B is the way to go. Guiding investments by horizon is key to balancing near-term and long-term priorities.

Alishia 1 year ago

↳ replying to Rebbeca

Continuous Business Owner engagement is essential for aligning budgets with strategy and growth.

Werner 1 year ago

↳ replying to Rebbeca

I think applying capacity allocation is also important to ensure appropriate budget allocation.

Dorothy 1 year ago

↳ replying to Rebbeca

I agree, option B is crucial for balancing near-term and long-term priorities.

Scaled Agile SP-SAFe-Practitioner Exam - Topic 5 Question 44 Discussion