The AME3 Rules

AME3 stands for Adaptive Metaframework for Empirical Enterprise Evolution. The framework assists an enterprise in adopting a system design grounded in three fundamental pillars: an Agile Leadership System, a Strategy for Evolution, and Enterprise-wide Rules.

The AME3 Rules enable companies to adapt their services and products to changing market conditions using empirical evidence. They foster the simultaneous evolution of services and products with the organizational structure.

AME3 sets a minimal yet sufficient number of rules to allow integration with other frameworks and methods. Thoroughly understand the impact of these rules on the entire system before attempting to make any changes. The framework targets primarily small to medium-sized enterprises (SMEs), though larger enterprises can implement it within sufficiently autonomous divisions.

The AME3 Rules alone are insufficient to enhance agility and results. Enterprises should adopt other methods and frameworks like Scrum, LeSS, LeSS Huge, Lean, Kanban, Wardley Mapping, or Cynefin. The choice should align with the evolutionary stages of the product and organization and the particular Ambitions.

Although some frameworks and methods may have different rules and recommendations, the combined use outweighs the inconsistencies. The AME3 Rules support easy mapping and integration with other frameworks, enhancing overall results. See Example Mapping of Methods and Frameworks for a practical illustration.

The AME3 Rules organize into two sections: the Rules of the Arena, where teams create and evolve products and services, and the Rules of the Enterprise, which provides the strategic context of Arenas. Each level defines Leadership Functions, Artifacts, and Constraints.

The AME3 Rules by design do not delve into the reasons behind the rules, how they work, or specific usage instructions. The Leadership, Strategy, and Foundation chapters provide the theoretical background. The Playbook and Interplay chapters help with practical application.

Arena

An Arena is a highly independent organizational unit within an Enterprise dedicated to a specific Ambition. It contains a complete work system with Teams, Owner, and System Lead. The Arena is defined by its Leadership functions, Artifacts, and Constraints.

Leadership Functions

Team

The Team is a leadership function in AME3 focused on improving customer satisfaction. Teams develop, provide, and maintain the Arena Product with stable membership. Each Team is supported by at least one System Lead.

• A Team leads to improved customer satisfaction.
• An Arena consists of one or multiple Teams.
• All Teams in an Arena do all the work to develop, provide, and maintain the Arena Product.
• The Team has stable membership over at least one Match, preferably for much longer.
• Each employee is a member of only one Team at a time.
• The Teams are responsible for keeping all work transparent.
• Each Team is supported by at least one System Lead.
• Team members may have different qualifications and experience. Additional roles may be defined by the Team or System Lead.

Owner

The Owner is the leadership function responsible for the success of the Arena Product in alignment with the enterprise Ambition. They hold authority over Arena Backlog ordering and capacity decisions. The Owner collaborates with System Leads while maintaining distinct accountability.

• The Owner leads to the success of the Arena Product, in line with the Ambition.
• The Owner determines how the Arena Backlog is ordered.
• Only one person serves as the Owner, who cannot simultaneously be a System Lead.
• The Owner sets the maximum number of employees in the Arena based on operational constraints.
• The Owner must consider the System Lead’s recommendations.
• The Owner is an Accountable Representative.

System Lead

The System Lead ensures an effective work system within the Arena and guarantees compliance with AME3 rules. They establish and enforce additional frameworks and methods as needed. Multiple System Leads can serve an Arena, collectively accountable for all Teams.

• A System Lead leads to an effective work system in the Arena.
• A System Lead ensures compliance with the AME3 rules.
• An Arena can have multiple System Leads.
• The System Leads are entitled to establish, discard, and demand compliance with rules beyond the AME3 Framework. This includes additional frameworks and methods.
• A System Lead cannot simultaneously serve as the Owner and is appointed by the Owner.
• A System Lead may specialize in certain Teams, yet collectively all System Leads remain accountable for all Teams.

Artifacts

Artifacts on Arena level create the transparency needed to guide the Team’s work. They connect the Team’s daily efforts to the Arena’s purpose.

Improvement

An Improvement represents an enhancement to the Arena Product or work system. Teams pull Improvements from the Arena Backlog and commit to completing them within one Match, with Owner support for just-in-time decisions.

• An Improvement represents an enhancement to the Arena Product. This includes improvements of the work system within the Arena.
• Each Improvement can exist in one of three states: In the Arena Backlog, pulled by a Team, or done.
• Once an Improvement is pulled, a Team is expected to complete it within one Match.
• The Owner must ensure that decisions can be made just-in-time when a Team starts working on an Improvement.
• Once a Team has pulled an Improvement, it commits to focusing all its resources to complete it within the Match. If unsuccessful, the Team must identify and implement necessary improvements for the work system and/or Arena Product.

Arena Backlog

The Arena Backlog is the ordered collection of Improvements awaiting Team selection in an Arena. Teams and the Owner collaboratively create and refine these Improvements, with the Owner holding ultimate accountability for prioritization.

• The Arena Backlog is the collection of all Improvements not yet pulled by a Team.
• Improvements in the Arena Backlog are created, defined, and refined by both the Teams and the Owner.
• The Owner has the authority to order the Arena Backlog, or delegate this responsibility to the Teams, but remains ultimately accountable.

Arena Product

The Arena Product is the result of the Arena’s work, encompassing services and goods delivered by Teams, product development, and work system improvements. The Product evolves with each completed Improvement.

• The Arena Product is the result of the Arena’s work. It encompasses:

1. The services provided by the Teams’ labor.
2. The services or goods provided by systems created by the Teams, which customers utilize or potentially use in the future.
3. The work to improve these services. Often called product development.
4. The work to improve the work system.

• The Product evolves with each Improvement completed by a Team.
• The Arena’s Product is part of the Enterprise Product.

Constraints

Match

The Match defines the fixed-period constraint for Arena work in AME3. It implements the Anticipate, Advance and Assess loop. Teams autonomously manage improvements within this monthly cycle. System Leads ensure effective structures are in place.

• The Match is the Anticipate, Advance and Assess Loop for the Arena.
• Each Match is a fixed period during which all work in an Arena is carried out, lasting at most a month.
• In Enterprises with multiple Arenas, all Arenas follow the same Match schedule.
• Teams are responsible for self-managing all work within a Match.
• The System Leads ensure adequate work and communication structures are in place to support the Teams throughout a Match.
• Only the Owner has the authority to cancel or restart a Match.
• Each Team is expected to complete at least one Improvement from the Arena Backlog during each Match.
• The System Leads oversee the application of Anticipate, Advance and Assess practices within the Match.

Anticipate

• Teams autonomously decide the number of Improvements they aim to complete in a Match

• A Team must pull Improvements from the top of the backlog but can discuss the order with the Owner.

Advance

• Once a Team pulls an Improvement, they are solely responsible for its completion, including coordinating with other teams and stakeholders both within and outside the Arena.
• Teams and the Owner collaboratively establish rules for completing Improvements.
• The System Leads ensure that these rules are established, adhered to, and modified as necessary to maintain efficiency and effectiveness.

Assess

• The Arena Product is regularly inspected by the Teams as part of their routine during a Match.
• At the end of each Match, Teams identify Improvements for the Product, which the Owner must then consider for inclusion in the Arena Backlog.
• At the end of each Match, Teams assess their processes to pinpoint enhancements aimed at boosting effectiveness. These enhancements are added as Improvements to the Arena Backlog.
• During the next Match’s Anticipate phase, the Teams, Owner, and System Leads commit to addressing at least one improvement in the work system.

Enterprise

The Enterprise defines the organizational entity in AME3 that provides resources and support for Arenas. It establishes clear boundaries through Leadership Functions, Artifacts, and Constraints to ensure Arena autonomy and independence.

• The Enterprise provides resources to support an Arena.
• An Enterprise may encompass multiple Arenas.
• If the Enterprise operates other business areas with products and services outside the AME3 framework, it ensures these do not interfere with the independence of the Arenas.
• The boundaries of an Enterprise are defined by its Leadership Functions, Artifacts, and Constraints.

Leadership Functions

Accountable Representative

The Accountable Representative holds ultimate accountability for Enterprise success and societal impact. They have collective authority to initiate or discontinue Arena Products while respecting Arena autonomy. They receive full transparency and generate strategic insights.

• An Accountable Representative is accountable for the overall success of the Enterprise.
• An Accountable Representative is accountable to the society for the actions of the Enterprise.
• The Accountable Representatives have the collective authority to initiate or discontinue any Arena Product and its corresponding Arena.
• Accountable Representatives receive complete transparency regarding all artifacts within an Arena.
• They are tasked with generating additional insights as needed, utilizing data from Arena artifacts.
• While Accountable Representatives can suggest modifications, they cannot mandate changes to the Artifacts, Functions, or Constraints of an Arena.
• They may suggest Improvements for the Arena Backlog or Goals of the Enterprise Backlog but cannot override the decisions of the Enterprise Owner or Owners.
• All Owners and the Enterprise Owner are Accountable Representatives.

Enterprise System Lead

The Enterprise System Lead is the System Lead for the enterprise-level work system in AME3. This leadership function ensures effective structures and processes across all Arenas while maintaining system coherence. They can also serve as System Lead for individual Arenas.

• The Enterprise System Lead is the System Lead for the work system on Enterprise level.
• They can also be System Lead for an Arena.

Enterprise Owner

The Enterprise Owner is the executive leadership function responsible for the success of the Enterprise Product. They have the authority to initiate or stop Arenas, change Ambitions, and order the Enterprise Backlog while considering Enterprise System Lead recommendations.

• The Enterprise Owner leads to the success of the Enterprise Product.
• The Enterprise Owner can initiate or stop an Arena and/or its Product.
• The Enterprise Owner can change the Ambition of an Arena.
• The Enterprise Owner is an Accountable Representative.
• The Enterprise Owner cannot be a System Lead or Enterprise System Lead.
• The Enterprise Owner must consider the Enterprise System Lead’s recommendations.
• The Enterprise Owner determines how the Enterprise Backlog is ordered.

Artifacts

Artifacts on Enterprise level creating the transparency and data to lead the Enterprise. They connect the Enterprise with the Arenas and these with each other if necessary. All Artifacts of the Arenas are transparent and accessible to the Enterprise too.

Ambition

The Ambition defines the purpose, expected successes, and constraints for each Arena Product in the enterprise. It justifies an Arena’s existence and guides the Owner’s leadership. Annual refinement ensures alignment and commitment across all Team members.

• The Ambition clarifies the purpose, expected successes, and constraints associated with the Arena Product, including financial limitations.
• The Ambition justifies the existence and operations of an Arena.
• The Owner is responsible for leading the development of the Arena Product towards achieving the Ambition.
• If the Ambition is at risk, the Owner must take appropriate actions, which may include terminating the Arena Product.
• The Ambition is reviewed and refined at least annually, with discussions involving members of all Teams to align understanding and commitment.

Goal

The Goal is a strategic objective that provides direction for all Teams within an Arena. Set by the Owner, it defines what needs to be achieved within one to nine Matches. The Goal ensures alignment between Arena work and Enterprise Ambitions.

• The Goal is a strategic objective that guides all Teams within an Arena.
• Among others, a Goal can be a new Arena Product, the initiation or reorganizing of an Arena, or changes to an Ambition.
• Multiple Arenas can share the same Goal.
• The Goal is moved into focus by the Owner of the Arena and at the transition between Matches.
• The Owner can remove or replace a Goal at will.
• The Owner, System Lead, and Teams are collectively responsible for aligning their efforts towards achieving the Goal.
• The Owner must ensure that there is always at least one Goal in focus.
• There may be more than one Goal in focus, but the Owner is encouraged to keep the number to a minimum.
• A Goal should encompass the scope of work for all Teams for at least one Match but should not exceed nine Matches in duration.
• The Owner must ensure that the Goal aligns with the Ambition.
• The Owner must ensure that the Goal and the Arena Backlog are well-aligned.
• Each Goal can exist in one of three states: in Enterprise Backlog, In focus, or completed.

Enterprise Backlog

The Enterprise Backlog contains all strategic Goals awaiting Arena focus. The Enterprise Owner orders this backlog, while Owners collectively define and refine Goals. Owners pull the highest priority Goals for their Arenas.

• The Enterprise Backlog is the list of all strategic Goals an Arena is not focused on or had not yet completed.
• Goals in the Enterprise Backlog are created, defined, and refined by all Owners and the Enterprise Owner. Others may also be involved.
• The Enterprise Owner has the authority to order the Enterprise Backlog, or delegate this responsibility to all Owners collectively, but remains ultimately accountable.
• Owners are obliged to pull Goals with the highest order from the Enterprise Backlog.

Enterprise Product

The Enterprise Product represents all products and services offered by the enterprise. It combines the Arena Products from all Arenas plus results from units not yet operating within AME3.

• The Enterprise Product represents the combined result of work of the entire Enterprise. It includes the Products from all Arenas and results from all other units not yet operating within AME3.
• The term ‘Enterprise Product’ is synonymous with the phrase ‘all products and services offered or are in preparation to be offered by the enterprise’.

Constraints

Tournament

The Tournament is the enterprise-level constraint that implements the Anticipate, Advance and Assess loop across the entire organization. It spans one or multiple Matches and enables Accountable Representatives to assess the Enterprise Product, while the Enterprise Owner decides on strategic changes to Ambitions and the Enterprise Backlog.

• The Tournament is an Anticipate, Advance and Assess Loop for the entire Enterprise.

• Each Tournament is a fixed period of one Match or a multiple of Matches, but not more than one year, preferably 3 months.
• With each Tournament the Accountable Representatives …
  1. … assess the Enterprise Product by updating their landscape toward evolution, and
  2. … suggest changes to Ambitions and the Enterprise Backlog, and
  3. the Enterprise Owner decides on changes to the Ambitions and the Enterprise Backlog.
• The Enterprise System Lead oversees the application of Anticipate, Advance and Assess practices within the Tournament. Planning and Execution are covered by the Matches of the Arenas.

Postscript

Applying the AME3 Rules amounts to a radical shift for most companies because it typically requires significant restructuring. For new enterprises, adopting AME3 from the start is relatively straightforward. However, existing companies may need to navigate complex pathways and undertake major restructuring efforts at varying intervals. The AME3 Rules help identify necessary organizational changes.

Unlike prescriptive scaling frameworks, AME3 allows organizations the flexibility to steadily adapt their structures and processes to meet the demands of a competitive environment. The Agile frameworks and methods recommended within AME3 may occasionally conflict in detail. In cases of discrepancy, the principles of inspection and adaptation are invaluable, which is a Strategic Doctrine in AME3.