SAFe-Agilist Leading the Change Practice Question
A global enterprise is midway through its SAFe transformation. The Lean Portfolio Management (LPM) group has been established, but funding is still allocated to traditional projects rather than value streams. This mismatch is causing delays and misalignment. Which action should the LACE recommend to resolve this conflict?
⚠ Common exam trap
The trap here is thinking that improved reporting or team collaboration can fix a structural funding mismatch.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Transition to value stream funding by allocating budgets to value streams and empowering them to manage their own backlogs.
Value stream funding is essential for SAFe because it provides persistent teams with the budget and authority to deliver value continuously. It aligns funding with strategy and enables LPM to make informed trade-offs. By shifting from project to value stream funding, the organization removes a major impediment to flow and fosters a culture of long-term ownership and adaptability.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Maintain project-based funding but create cross-functional teams to improve collaboration.
Why it's wrong here
Cross-functional teams alone cannot overcome the structural misalignment caused by project-based funding. Project funding often leads to local optimization and short-term focus, which conflicts with the long-term, value stream-oriented approach of SAFe. While collaboration is important, the root cause is the funding model. The LACE should advocate for a shift to value stream funding to enable sustainable flow.
- ✗
Delegate funding decisions to the Project Management Office (PMO) to centralize control.
Why it's wrong here
Centralizing control in the PMO contradicts SAFe's principles of decentralized decision-making and Lean Portfolio Management. The PMO often perpetuates project-based thinking. Instead, the LACE should guide the organization toward value stream funding, where decisions are made closer to the work, enabling faster response to market changes and better alignment with strategy.
- ✗
Increase the frequency of project status reports to ensure better tracking of expenditures.
Why it's wrong here
More frequent reporting does not address the fundamental mismatch between project funding and value stream delivery. It may even reinforce the wrong behaviors by focusing on cost control rather than value creation. The LACE should focus on changing the funding model rather than adding administrative overhead that can slow down delivery and demotivate teams.
- ✓
Transition to value stream funding by allocating budgets to value streams and empowering them to manage their own backlogs.
Why this is correct
Value stream funding aligns budgets with the flow of value, enabling persistent teams to prioritize and deliver continuously. This approach is a core tenet of Lean Portfolio Management in SAFe. By allocating budgets to value streams, the organization can make trade-off decisions at the portfolio level and empower value streams to manage their own work, reducing delays and improving alignment with strategic objectives.
Visual reference
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Scaled Agile exam blueprint
This SAFe-Agilist practice question is part of Courseiva's free Scaled Agile certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the SAFe-Agilist exam.