Definition:
“The measure of execution in product development is our ability to constantly align our plans to whatever is, at the moment, the best economic choice”
-Donald Reinertsen
The Economic Framework is a set of decision rules that align everyone to the financial objectives of the solution and guides the economic decision-making process. SAFe Lean Agile Principle states – Take an economic view highlights the key role of economics in successful solution development. The primary purpose of the economic framework is to support effective, fast decision making within the bounds of larger economic picture, which requires understanding of the rules for decision-making, the current local context and relevant decision-making authority.
Lean Budgets, Epic funding and governance, decentralized decision-making, and job sequencing based on the Cost of Delay (CoD) are SAFe constructs for economic decision-making.
Further Reading:
Book: The Principles of Product Development Flow: Second Generation Lean Product Development by Donald Reinertsen
https://www.scaledagileframework.com/economic-framework/
