Why IT companies who claim to implement SAFe (Scaled Agile Framework) do NOT implement SAFe at the Portfolio level by and large?

There could be several reasons why some companies choose not to implement the Scaled Agile Framework (SAFe) at the portfolio level. Here are a few common challenges and potential reasons:

1. Organizational Resistance: Implementing SAFe at the portfolio level often requires significant organizational change. Some companies may face resistance from executives or stakeholders who are not willing to embrace the necessary shifts in mindset, culture, and practices.
2. Lack of Understanding: There might be a lack of understanding or awareness about the benefits of implementing SAFe at the portfolio level. Decision-makers may not fully comprehend how aligning the portfolio with agile principles can enhance strategic planning and execution.
3. Complexity and Scale: Portfolio-level implementation can be more complex and challenging due to the scale of operations and involvement of multiple business units. Organizations may be concerned about the effort required to coordinate and synchronize activities across diverse portfolios.
4. Existing Governance Models: Companies may already have established governance models and processes that are perceived as effective or ingrained in the organizational culture. Shifting to SAFe at the portfolio level might be seen as disruptive, and there could be resistance to change from those accustomed to existing practices.
5. Moving from cost center-based budgeting model to funding Value Streams also demands the capability of doing a precursor activity of Organization Change Management (OCM).
6. Need to integrate the existing financial systems and applications to support Dynamic Budgeting or Value Stream based funding model as a pre-requisite but without creating a disruption! and SoW clauses also needs to be aligned accordingly.

To overcome these challenges and encourage the implementation of SAFe at the portfolio level, consider the following strategies:

1. Education and Training: Provide education and training to key stakeholders, executives, and decision-makers about the benefits of implementing SAFe at the portfolio level. Highlight how it can improve strategic alignment, increase agility, and deliver better business outcomes.
2. Pilot Programs: Start with pilot programs or small-scale implementations at the portfolio level to demonstrate the value of SAFe. Showcase success stories and measurable improvements to build confidence among stakeholders.
3. Incremental Approach: Implement SAFe at the portfolio level incrementally rather than attempting a full-scale transformation. Gradual adoption allows the organization to adjust and learn from the experience while minimizing disruption.
4. Collaborative Decision-Making: Involve key stakeholders in the decision-making process and collaborate on designing a customized SAFe implementation that aligns with the organization's specific needs and context.
5. Executive Sponsorship: Secure strong executive sponsorship and commitment to drive the necessary changes. Leadership support is crucial for overcoming resistance and ensuring the successful implementation of SAFe at the portfolio level.
6. Communication and Change Management: Develop a robust communication and change management plan to address concerns, manage expectations, and keep all stakeholders informed throughout the implementation process.

It's important to note that each organization is unique, and the specific challenges and solutions may vary. Tailoring the approach to the organization's context and addressing concerns collaboratively can significantly increase the likelihood of successful portfolio-level implementation of SAFe.

Now funding Value Streams instead of projects would also help companies to move from Project to Product Mindset and also to build simple, replicable, sustainable, and scalable Productized IT Models, similar to what I had done in 2021 to 2023 for my clients.

By the by in my Agile Mentorship Program (AMP), I teach hands-on in terms of all these concepts to my mentees and also share the Scaled Agile Implementation Playbook (to my L3/Level 3 AMP mentees) that I had created based on my experience in SAFe implementation in umpteen engagements across various domains. By NOT implementing SAFe at the Portfolio level, companies are indeed missing the "Think Tank" of SAFe.

Reference Link used - Portfolio Level in Scaled Agile Framework (SAFe) (kendis.io)