Evidence-Based Management
A data-driven approach to measure value delivered to customers.
Evidence-Based Management (EBM) is an empirical approach that provides organizations with the ability to measure the value they deliver to customers and the means by which they deliver that value, and to use those measures to guide improvements in both.
EBM consists of four Key Value Areas (KVAs)
Key-Value Area
Time to Market
Expresses the organization’s ability to quickly deliver new capabilities, services, or products.
The goal of looking at Time-to-Market is to minimize the amount of time it takes for the organization to deliver value. Without actively managing Time-to-Market, the ability to sustainably deliver value in the future is unknown. Questions that organizations need to continually re-evaluate for time to market are:
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How fast can the organization learn from new experiments?
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How fast can you learn from new information and adapt?
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How fast can you deliver new value to customers?
A variety of things can improve CV: improving usability, improving customer or user outcomes, even creating a happier workplace. Looking at CV from the perspectives of customers or users, as well as investors, is obvious, but considering employee attitudes recognizes that employees are ultimately the producers of value. Engaged employees that know how to maintain, sustain and enhance are one of the most significant assets of an organization, and happy employees are more productive.
A sample of Agile Tools metrics in this Key-Value Area
Mean Time To Repair
Can customers rely on your ability to remove defects quickly?
Release Frequency
How often do your clients get updates?
Lead Time
How long does it take to get a new feature to a customer?
How is EBM related to OKRs?
Each metric can be classified in one (or two) EBM Key-Value Areas. By using metrics in your goal's key results, you can see in which of the four EBM areas you try to create an impact.