06 — Evidence-Based Management (EBM) basics

EBM is a way to improve outcomes using goals and evidence rather than opinions.

Core idea

• Define a goal.
• Measure what matters.
• Run experiments and adapt.

Key Value Areas (KVAs)

A common mental model:

• Current Value: value delivered today (customer/stakeholder outcomes).
• Time-to-Market: how quickly you deliver changes and learn.
• Ability to Innovate: how well you can respond and create new value (tech debt, constraints).
• Unrealized Value: potential value not yet captured.

Leader behavior:

• Don’t optimize one KVA at the expense of all others long-term.

Metric hygiene

Use metrics as sensors, not weapons:

• Pair metrics with qualitative insight.
• Inspect trends, not single points.

Exam traps

• Don’t optimize only velocity. Prefer measures that connect to outcomes, flow, and sustainability.
• Use evidence to decide. Answers that propose “set bigger targets and push harder” without changing the system rarely align with EBM.