What are 4 Guardrails of Lean Budget?

The four guardrails of Lean Budget serve to ensure that investments are aligned with the strategic goals and value streams of the organization while enhancing transparency and optimizing delivery. One of these guardrails, guiding investments by horizon, is critical because it helps align the funding of initiatives based on their timeframes and expected benefits—short-term, mid-term, and long-term. This alignment allows organizations to prioritize investments that maximize value in a timely manner, catering to both immediate and future needs. By framing investments within this horizon approach, teams can make more informed decisions that better contribute to the overall success of the enterprise.

Other options do not fully encapsulate the guardrails of Lean Budget. For instance, applying capacity allocation focuses on how work is distributed among different value streams but does not specifically relate to the guardrails concept. Managing daily stand-ups or continuous Business Owner engagement are important practices in Agile methodologies but do not serve as foundational guardrails for Lean Budgeting. Thus, while each option addresses elements of Lean and Agile practices, only guiding investments by horizon directly reflects the strategic framework essential to Lean Budgeting.