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Introduction to Evidence Based Management

The content on this page has been gathered from a free EBM training course delivered by Agile for Humans (Evidence-Based Management – Free EBM Training Course )

Here is the white paper from Scrum.org. (Evidence-Based Management™ (EBM) )

These are some related recordings from a meetup I attended:

4 Mistakes We Make with Goals (and How to Fix Them) with Stephanie Ockerman Just. Build. It. with Wilbert Seele

How do you measure agility?

One way is through Evidence-Based Management (EBM)

What is EBM?

  • It’s none prescriptive. You measure based on your needs.
  • It allows for empiricism. It creates transparency.
  • It allows you to steer governance in a complex environment.
  • A framework that can be used for a variety of use cases to measure against goals.
  • Come up with a hypothesis to inform what to measure.

There are three components:

GOALS

Our goals should determine what evidence we need to collect. If we don’t have goals how do we know what to measure?

Type of GoalDescription
Strategic(a vision that you have)Big and far away – aspirational – a lighthouse – this is where we want to goIdeally, impact or outcome orientated Specific and Measurable
IntermediateA step towards a strategic goal – it’s achievable but still a little uncertain Long term objectiveNot a plan – it’s a goal Is time-boundThis could be a product goal….
Immediate TacticalCritical near term objectives that work towards intermediate goalsLow uncertainty This could be a sprint goal….

EVIDENCE

This is the ‘stuff’ we will look at… when you think about a hypothesis you’ll need to know what is the proof? The evidence you need will depend on your goals.

There are 4 KVAs (Key Value Areas)

(also for the jargon buster KVM = Key Value Metric)

  • Unrealised Value (Identifying the satisfaction gap)
    • What value are we not delivering?
    • What customers are we not reaching?
    • What markets are we not reaching?
    • Undelivered Features
    • Measuring allows us to ask additional questions
    • What can we pursue?
  • Current Value (view of the present)
    • What kind of value do we deliver right now….?
    • Allows you to make decisions in the moment.
    • Is what we are doing valuable?
    • How happy are our customers? Squads? Business Stakeholders?
    • Validation of what we have delivered
  • Time to Market (T2M)
    • How quickly can we react to what is happening around us?
    • How fast can we learn/adapt/deliver?
    • How frequently are we releasing?
    • How quickly can we react?
    • Flow metrics
  • Ability to Innovate (A2I) – keeps us honest
    • What are we getting to market?
    • Bugs/ are we piling up defects?
    • Tech debt/keeping the lights on vs value added releases
    • What is our ability to deliver new value?
    • What is the ability of our customers to benefit?
    • Personal development
    • Context Switching

EMPIRICISM

Inspect, adapt, make transparent

  • Setting goals and gathering evidence will influence everything.
  • Transparency is your friend – showing the why and the lessons learnt/celebrating the wins can be very empowering to teams

Changing Measurements

  • Measure what is relevant, what you want to measure will vary depending on your goals – evidence will inform goals – it is fine to change
  • Spending time and money measuring what isn’t important doesn’t make sense
  • Behavioural influence – measuring the wrong ‘thing’ could lead to behaviours that aren’t desired

Changing Goals

Based on EBM you might find that one of your goals is not worth pursuing

  • You should be asking some questions frequently:
    • Is this goal a step towards the intermediate goal?
    • What has it taught us about the intermediate goal?
    • What has it taught us about the strategic goal?

How to get started? Build from the inside out….

  • What are we measuring now… what KVMs are we currently measuring and do they slot into KVAs?
  • Are there too many goals/ too few?
  • Are there any gaps?
  • Ask good questions
  • Do we have strategic, intermediate or tactical goals already set up and can we see the link between them and what we are measuring?
  • This can allow for targeted conversations – what is important – what do you want to focus on?
  • Jargon can be off-putting
  • Is there a greenfield opportunity to try this out?
  • Start small – iterate