The EBM framework consists of:
- A strategic goal
- Intermediate goals
- Immediate tactical goals
- A starting state
- A current state
In order to progress toward the strategic goal, organisations conduct experiments which involve forming hypotheses that are intended to advance the organisation toward its intermediate goal. As experiments are conducted the results are gathered and related evidence. [4] Experiments can be viewed as actions or activities that introduce change (or development) within the organisation that propels the organisation toward its strategic goal.
EBM provides a set of perspectives on value. They are:
- Unrealised value: What is the additional potential value that could be achieved?
- Current value: What value is currently delivered by the organisation?
- Ability to innovate: How effective is the organisation at improving value?
- Time to market: How long does it take to deliver new value?
Metrics detailed by EBM include:
- Unrealised value – market share, customer satisfaction gap, desired customer satisfaction.
- Current value – revenue per employee, product cost ratio, employee satisfaction, customer satisfaction.
- Ability to innovate – innovation rate, defect trends, technical debt, change failure rate.
- Time to market – build and integration frequency, release frequency, mean time to repair, lead time, deployment frequency.
When your team uses EBM, their Sprint Goals should contribute to these key value areas.