Start the Game in an Arena
What Is an Arena?
An Arena is a highly independent organizational unit within an Enterprise, dedicated to a specific Ambition. It contains a complete work system: Teams that deliver and improve the Arena Product, an Owner who drives product success, and a System Lead who ensures an effective work system.
Independence is essential. An Arena must be able to evolve its product without depending on other Arenas for every decision, resource, or release. This autonomy enables speed. It allows Teams to respond to customer needs and market changes without navigating enterprise-wide coordination for every step.
But independence does not mean isolation. Every Arena operates within the strategic frame set by the enterprise. The Ambition defines the Arena’s purpose and constraints. Goals from the Enterprise Backlog provide strategic direction. The Tournament creates the feedback loop between Arena results and enterprise strategy.
Tactics need strategic guidance and doctrines. An Arena without enterprise alignment optimizes locally — exactly the sub-optimization AME3 is designed to prevent.
Three Entry Points
Not every Arena starts from the same place. The AME3 Playbook defines three entry points depending on the Arena’s starting situation.
- Entry Point 2.1 — New, Independent Product. Start here when the Arena will develop a completely new product or service with no existing teams or processes in place.
- Entry Point 2.2 — Existing Work System with Agile and Lean Practices. Start here when the Arena takes over an existing product that already operates with Scrum, Kanban, Lean, or similar practices.
- Entry Point 2.3 — Established Product without Agile and Lean Practices. Start here only when urgency is high. This applies to established products and services that have not yet adopted agile or lean ways of working.
Entry Point 2.1 — New, Independent Product
This path applies when the enterprise creates a brand-new Arena for a new product or service. You start with a clean slate and full freedom to design the Arena from the ground up.
2.1.1 Define Owner and System Lead
Appoint an Owner who will be accountable for the success of the Arena Product. Appoint a System Lead who will build and maintain an effective work system. These two leadership functions form the foundation of the Arena. They must be held by different people — the separation ensures balanced decision-making between product direction and work system effectiveness.
2.1.2 Ensure Ambition
Verify that a clear Ambition exists for this Arena. The Ambition defines the purpose, expected successes, and constraints including financial boundaries. If the Ambition was already formulated during the enterprise setup (Step 1.6), review it with the newly appointed Owner and System Lead. Make sure it is understood and actionable.
2.1.3 Set Initial Goal
The Owner sets the first Goal — a strategic objective that provides direction for the Arena’s initial work. The Goal defines what needs to be achieved within one to nine Matches. It translates the broad Ambition into a concrete, time-bound objective.
2.1.4 Define Initial Team
Form the first Team. A Team is a stable group with full responsibility for delivering and improving the Arena Product. Consider the skills needed to achieve the initial Goal. Keep membership stable — each employee belongs to only one Team at a time.
2.1.5 Choose Preferred Agile and Lean Frameworks
Select the agile and lean frameworks that best fit the Arena’s context. AME3 does not prescribe a specific method at the Team level. The System Lead may choose Scrum, Kanban, or other approaches. The choice should serve the Arena’s needs, not follow a template.
2.1.6 Educate Teams and Stakeholders
Train all Team members and relevant stakeholders on AME3 and the chosen frameworks. Everyone needs to understand the Rules, their leadership functions, and how the Arena operates within the enterprise structure.
2.1.7 Create Initial Backlog
Build the first Arena Backlog. The Owner orders the backlog based on the current Goal. The backlog makes work visible, enables prioritization, and ensures that every Improvement contributes to the Goal.
2.1.8 Reorganize
Put the new structure into effect. People move into their new roles. The Arena becomes operational. This is the moment where planning turns into action.
2.1.9 Start the First Match
Begin the first Match — the fixed monthly cycle during which all Arena work is carried out. Teams autonomously manage Improvements within this cycle. The System Lead ensures effective structures. The Owner steers product direction. The game has started.
Entry Point 2.2 — Existing Work System with Agile and Lean Practices
This path applies when the Arena takes over an existing product with teams already using Scrum, Kanban, or Lean. The challenge is transitioning established practices into the AME3 structure without losing momentum.
2.2.1 Discuss and Define AME3 Leadership Functions
Map the existing roles to AME3 leadership functions. Who becomes the Owner? Who takes the System Lead role? How do existing teams map to Teams in AME3? This step requires open discussion with everyone involved. Existing Scrum Masters, Product Owners, and managers need clarity on how their responsibilities evolve.
2.2.2 Redefine the Product
Clarify the Arena Product. In existing organizations, product boundaries are often blurry. Multiple teams may work on loosely related features without a unified product definition. Define a single, coherent Product that the Arena is accountable for.
2.2.3 Ensure Ambition
Establish or refine the Ambition for this Arena. Existing teams often operate without a clear strategic mandate. The Ambition provides that mandate — it defines why this Arena exists and what success looks like.
2.2.4 Run an Overall Retrospective with All Teams
Bring all Teams together for a joint retrospective. Assess the current state of the work system, the product, and inter-team collaboration. Identify what works, what doesn’t, and what needs to change for AME3 to succeed. This creates shared understanding and buy-in.
2.2.5 Define Improvement Goals for Product and Work System
Based on the retrospective, the Owner defines Goals that address both product evolution and work system improvements. These Goals bridge the gap between where the Arena is today and where AME3 needs it to be.
2.2.6 Educate Teams and Stakeholders in AME3
Train everyone on AME3. Even experienced agile practitioners need to understand how AME3 differs from their current setup — especially the enterprise-level governance, the Tournament cycle, and the distinct accountability of Owner and System Lead.
2.2.7 Create a Single Backlog for All Teams
Consolidate all existing backlogs into one Arena Backlog. This is often a significant shift. Multiple team backlogs become a single, Owner-ordered backlog. This creates transparency and enables true prioritization across all Teams.
2.2.8 Reorganize
Implement the structural changes. Adjust team compositions if needed. Formalize the new leadership functions. Make the transition visible and official.
2.2.9 Start the First Match
Begin the first Match under AME3. The familiar cadence of agile work continues, but now within a coherent Arena structure connected to the enterprise strategy.
Entry Point 2.3 — Established Product without Agile and Lean Practices
This path is for legacy products and services that have not yet adopted agile or lean ways of working. Proceed only when urgency is high.
2.3.1 Consider Starting a Successor of the Product
Before transforming the existing organization, consider whether it is better to start a new Arena that builds a successor product (Entry Point 2.1). A successor approach avoids disrupting the existing operation and allows the new Arena to move fast without legacy constraints.
2.3.2 Only Continue If Reorganization of All Existing Roles Is Supported
If a successor is not feasible, the only option is to transition the existing organization. This requires full support from leadership for reorganizing all existing roles into AME3 leadership functions. Without this commitment, the transition will stall.
If support is confirmed, continue with either Entry Point 2.1 (treating the product as new within AME3) or Entry Point 2.2 (transitioning the existing structure).