PAL-EBM : Professional Agile Leadership - Evidence Based Management (PAL-EBM) 2025 Exam

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Scrum
PAL-EBM
Professional Agile Leadership - Evidence Based Management
(PAL-EBM)
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Question: 127
As low-value features and systemic impediments accumulate, more budget and time is consumed maintaining the
product or overcoming impediments, reducing A2I (Ability to Innovate).
A. True
B. False
Answer: A
Explanation:
As low-value features and systemic impediments accumulate, more budget and time is consumed maintaining the
product or overcoming impediments, reducing its available capacity to innovate. In addition, anything that prevents
users or customers from benefiting from innovation, such as hard to assemble/install products or new versions of
products, will also reduce A2I.
Question: 128
Which are the three types of goals described in the Evidence-Based Management framework? (Choose three)
A. The Strategic Goal.
B. Nexus Goals
C. The Intermediate Goal.
D. Tactical Goals.
E. Sprint Goals
Answer: A,C,D
Explanation:
Complex problems require organizations seek solutions toward in a series of small steps, inspecting the results of each
step, and adapting their next actions based on feedback. This model has several key elements:
Question: 129
What are the key characteristics of an effective strategic goal? (Choose all that apply)
A. A strategic goal should be measurable.
B. A strategic goal is usually focused on achieving a highly desirable but unrealized outcome.
C. A strategic goal should encourage organizational alignment.
D. A strategic goal should be transparent.
Answer: A,B,C,D
Explanation:
The Strategic Goal is usually focused on achieving a highly desirable but unrealized outcome for a specific group of
people that results in improved happiness, safety, security, or well-being of the recipients of some product or service.
When setting goals, organizations must define specific measures that will indicate that the goal is achieved. In other
words it should be measurable. Goals, measures, and experiments should be made transparent in order to encourage
organizational alignment.
Question: 130
Product 1 creates profits of £1 million currently. Product 2 creates profits of £2 million currently.
Which product creates more value for customers?
A. We do not have enough information to know
B. Product 2
C. Product 1
Answer: A
Explanation:
In the Scrum framework, it is important for Scrum Teams to deliver a valuable Increment as frequently as they can -
at least once per Sprint. Each Increment brings the team and its stakeholders one step closer to a valuable Product
Goal.
Whenever the Scrum framework talks about “value”, it refers to the valuable transactions between the Scrum Team
and its stakeholders. In other words, something can only be valuable when it is delivered to and validated by
stakeholders - until then any value is purely hypothetical.
As seen in the above question event though the Products are making millions of dollars of profits, they might not be
valuable to the company using it or product it. Remember profit does not equal customer value.
Question: 131
Using the four key value area’s, EBM examines: (Choose all that apply)
A. The responsiveness of the organization in delivering value.
B. The effectiveness of the organization in delivering value.
C. The current state of the organization relative to the organizational goals.
D. Goals of the organization.
Answer: A,B,C,D
Explanation:
EBM looks at 4 Key Value Areas (KVAs). Defined measures will vary by organization, but all 4 areas contribute to an
organization’s ability to deliver business value. These areas examine the goals of the organization (Unrealized Value),
the current state of the organization relative to those goals (Current Value), the responsiveness of the organization in
delivering value (Time-to-Market), and the effectiveness of the organization in delivering value (Ability-to-Innovate).
Note:
Question: 132
Which two Key Value Areas are most affected if a team is switching tasks or is interrupted? (Choose two best
answers)
A. Market share.
B. Potential System Value.
C. Ability to Innovate.
D. Time to Market.
Answer: C,D
Explanation:
Interruptions and task switching cause a team to lose focus, which results in less value being produced per interval of
time, which is another way of looking at their Ability to Innovate. It could potentially affect Time to Market because
interruptions cause loss of focus which can lead to delay.
A variety of things can impede a team from being able to deliver new capabilities and value (thus reducing A2I):
Question: 133
An organization has a large number of products and is unsure about how to allocate funding across the products.
Which of the following is the best way for them to proceed?
A. Let the Finance Director decide
B. Allocate funding equally across all products.
C. Allocate funding evenly based on the revenue share for each product.
D. Fund small incremental changes for each product and measure outcomes and repeat.
Answer: D
Explanation:
Small Incremental changes and the right measures can help us decide where best to allocate funds. Funding product or
service development in a series of experiments lets organizations test new ideas quickly, allowing the ideas that won’t
work to be identified quickly. This lets the organization focus on the ideas that are more likely to produce better
results. Betting only a small amount minimizes the amount of effort “wasted” going down the wrong path when an
idea proves to be unworkable.
Also Organizations generally have more ideas than they have capacity to pursue.
When the organization tries to work on more ideas than it has capacity, they force teams to multi-task, which causes
the teams to lose focus, and become less effective:
o Each initiative takes longer to deliver because teams lose effectiveness when they switch contexts between different
initiatives
o Delaying value realization or feedback on value delivered deprives the organization of information it needs to make
course-correcting decisions
o Delaying feedback causes organizations to waste time and money on things that later prove to be valueless once they
get feedback.
Working on fewer things at a time, eliminating multi-tasking, helps organizations focus so that they finish everything
faster than they would if they took on more work and also reduced the risk of losing bigger funds on failed ideas.
Question: 134
An organization has many customers on different versions of the same product. Most of the employees in the
organization spend time and effort in maintaining all of the product variations. This leaves them with little time to
invest in product improvements.
Which of the following would best help the organization analyze it’s effectiveness to deliver new value? (Choose the
best answer)
A. Time to market
B. Ability to innovate
C. Current Value
D. Unrealized Value
Answer: B
Explanation:
Ability to Innovate expresses the ability of a organization to deliver new capabilities that might better meet customer
needs. The goal of looking at the A2I is to maximize the organization’s ability to deliver new capabilities and
innovative solutions.
Organizations should continually re-evaluate their A2I by asking:
Question: 135
Playtech, a software company has recently acquired a lot of new clients. While the existing client products and
services are not impacted, the human resource department of the company has reached out to the management with
concerns about the increase in employee work hours.
Which KVA should the Playtech evaluate to understand how happy or stressed the employees currently are and
whether its increasing or decreasing?
A. Current Value
B. Unrealized Value
C. Time to Market
D. Ability to Innovate
Answer: A
Explanation:
Current Value (CV) reveals the value that the product delivers to customers, as of today. The Goal of looking at CV is
to maximize the value that an organization delivers to customers and stakeholders at the present time.
Current Value considers only what exists right now, not the value that might exist in the future.
Questions that organizations need to continually re-evaluate for current value are:
Question: 136
Unrealized Value helps measure:
A. The value achievable if all features currently in the Product Backlog were built and released.
B. The potential value that could be realized if the organization met the needs of all potential customers or users.
C. The potential value of features currently under development.
D. None of these options
Answer: B
Explanation:
Unrealized Value measures the potential value that could be realized if the organization met the needs of all potential
customers or users.
The goal of looking at Unrealized Value is for the organization to maximize the value that it realizes from a product or
service over time.
When customers, users, or clients experience a gap between their current experience and the experience that they
would like to have, the difference between the two represents an opportunity; this opportunity is measured by
Unrealized Value.
Questions that organizations need to continually re-evaluate for unrealized value are:
Question: 137
An organization has many customers on different versions of the same product. Most of the employees in the
organization spend time and effort in maintaining all of the product variations. This leaves them with little time to
invest in product improvements.
Which of the following would best help the organization analyze it’s effectiveness to deliver new value? (Choose the
best answer)
A. Time to market
B. Ability to innovate
C. Current Value
D. Unrealized Value
Answer: B
Explanation:
Ability to Innovate expresses the ability of a organization to deliver new capabilities that might better meet customer
needs. The goal of looking at the A2I is to maximize the organization’s ability to deliver new capabilities and
innovative solutions.
Organizations should continually re-evaluate their A2I by asking:
Question: 138
Which two Key Value Areas are most affected if a team is switching tasks or is interrupted? (Choose two best
answers)
A. Market share.
B. Potential System Value.
C. Ability to Innovate.
D. Time to Market.
Answer: C,D
Explanation:
Interruptions and task switching cause a team to lose focus, which results in less value being produced per interval of
time, which is another way of looking at their Ability to Innovate. It could potentially affect Time to Market because
interruptions cause loss of focus which can lead to delay.
A variety of things can impede a team from being able to deliver new capabilities and value (thus reducing A2I):
Question: 139
An organization has many customers on different versions of the same product. Most of the employees in the
organization spend time and effort in maintaining all of the product variations. This leaves them with little time to
invest in product improvements.
Which of the following would best help the organization analyze it’s effectiveness to deliver new value? (Choose the
best answer)
A. Time to market
B. Ability to innovate
C. Current Value
D. Unrealized Value
Answer: B
Explanation:
Ability to Innovate expresses the ability of a organization to deliver new capabilities that might better meet customer
needs. The goal of looking at the A2I is to maximize the organization’s ability to deliver new capabilities and
innovative solutions.
Organizations should continually re-evaluate their A2I by asking:

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