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The Four Key Value Areas of EBM
>> YOUR LINK HERE: ___ http://youtube.com/watch?v=sT44RQgin5A
📊 The Four Key Value Areas of Evidence-Based Management • 🎯 Introduction: Evidence-Based Management Overview • When I talk about evidence-based management (EBM), I often refer to the four key value areas that encompass a holistic view of organizational success. These metrics ensure we don’t just optimize one area at the expense of the overall system. Each value area allows us to assess various aspects of the business and product, ensuring a balanced approach to growth and innovation. • --- • 🚀 The Four Key Value Areas • 1. Market Value • Market value consists of two key areas: current value and unrealized value. • Current Value: • What it measures: The value your existing product provides to users right now. • Key Metrics: • Telemetry: Measure how often features are used, which customers use them, and how satisfied they are with the product. • Customer Satisfaction: Through surveys and real-time data, understand customer feedback and overall happiness with the product. • Revenue: Revenue generated from the product is another critical measure of its current value. • Unrealized Value: • What it measures: The potential value that the product could create but hasn't tapped into yet. • Key Metrics: • Product Backlog: What new features could be added, and what gaps exist that could unlock new markets or opportunities? • Market and Competitor Analysis: Stay ahead by assessing trends, analyzing competitors, and looking for ways to expand market share. • 📺 Analogy: TV Shows and New Markets • Just like how TV networks invest in new series rather than additional seasons of existing shows, adding new features can bring in new audiences. A fresh, innovative feature can open up new markets and unlock greater potential than continuing with older, more familiar elements. • --- • 2. Organizational Capability • The second broad category is organizational capability, broken into two areas: ability to innovate and time to market. • Ability to Innovate: • What it measures: How much focus and time your team spends on creating net new functionality vs. maintaining existing systems. • Key Metrics: • Technical Debt: Any technical debt will reduce your team's ability to innovate. Managing this debt is critical to long-term success. • Code Branch Management: How much time do you spend managing code between different environments or branches? Reducing this time can boost innovation. • Production Incident Count: Track the number of production issues—more incidents could indicate lower quality in delivered innovation. • Time to Market: • What it measures: The speed at which your team can move a change from idea to production. • Key Metrics: • Cycle Time: How long it takes to deliver a new feature from the initial concept to the hands of the customer. • Lead Time: How quickly can you change direction based on new information? • Release Frequency: The frequency with which you release updates or new features to customers. • Examples: • Facebook: They can go from code commit to production in 12.5 minutes! • Microsoft Windows: Shifting to regular updates and faster time-to-market helped improve quality and customer satisfaction. • 💡 Why Time to Market and Ability to Innovate Matter • A fast time to market ensures your organization can adapt to customer needs more quickly, close the feedback loop, and increase customer satisfaction. Meanwhile, a high ability to innovate ensures that your teams aren't bogged down by technical debt and can continuously deliver new value. Together, these two metrics help maximize organizational capability and ensure you stay competitive in your industry. • 📊 Evidence-Based Management in Practice • Current Value: Know how your current product is performing by leveraging telemetry, revenue, and customer satisfaction metrics. • Unrealized Value: Look for opportunities that haven't been explored yet, either through backlog features or new market trends. • Ability to Innovate: Manage technical debt, reduce complexity, and increase the time your team can spend on creating new, valuable features. • Time to Market: Measure the speed of delivering changes to production, from cycle time to release frequency. • 🎯 Conclusion: The Power of the Four Key Value Areas • By focusing on the four key value areas, you can make informed decisions about your product’s development, align efforts across the business, and optimize both market value and organizational capability. It’s about ensuring that every area of your product delivery and management is measured, tracked, and continuously improved to maximize value and impact. • Visit https://www.nkdagility.com to discover how we can help you achieve great results
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