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For Product Owners/Product Managers and Scrum Teams: Growth Hacking, Devops, Agile, Lean for IT, Lean Startup, customer centric, software quality...
Curated by Mickael Ruau
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Taming the Zoo with EBM – How Evidence-Based Management Helps Solve Common Stakeholder Challenges

Taming the Zoo with EBM – How Evidence-Based Management Helps Solve Common Stakeholder Challenges | Devops for Growth | Scoop.it
We've all had challenges with various stakeholders coming to us with a whole bunch of different information and wanting a whole bunch of different things. Who do I listen to? What’s most important? Why do I feel like I’m in a zoo? Some of the most notorious stakeholder animals in the zoo are the HiPPO, the ZEBRA, the WOLF, and the RHINO. 
Mickael Ruau's insight:

 


 

Let's start with the HiPPO. The HiPPO is the Highest Paid Person's Opinion. When we look at the HiPPO what they're normally doing is relying on their position to influence people in a certain direction. Notice that it says opinion (everybody has one). What evidence-based management allows us to do is transition that from opinions to facts. So, as we’re learning and getting more information, we’re able to leverage those facts to tell us what we want to invest in next based on the evidence that we have before us. This allows us to look at true data for the investment we are making with small steps, true valid feedback, and therefore disarm the HiPPO. 

 

 


 

 

For the ZEBRA this person normally comes in and has an idea of what they want to do, and they are very strongly leaning in a certain direction. They have Zero Evidence for that direction, But they are Really Arrogant. They just “know” based on “instinct” that what they're proposing is the absolute best thing to do for the organization. What Evidence-Based Management allows us to do is focus on actually getting evidence and reducing where that arrogance comes into play. So instead of it being an arrogance play, we are able to objectively look at the facts and the data that we've learned on our way to achieving a goal. 

 

 

 


The WOLF: Working On Latest Fire. How can Evidence-Based Management help us with this? I think there's two ways that Evidence-Based Management helps us with this: one is having a crystal-clear understanding of the goals that we're going after. By having really clear goals, and knowing what is truly most important for our organization, we can say no to the WOLF with the “fires” that happen to come up. We also need to look at the KVAs: the Key Value Areas that are talked about in Evidence-Based Management. By balancing these four areas we can look at ability to innovate or time to market. Those are really important for us to look at because they help balance long-term sustainability along with our desire to provide valuable products now. Too often organizations will be pursuing current value at the expense of things like technical debt or other things that get in the way, that later impact our ability to actually deliver value. So by looking at these two things Evidence-Based Management can help us be proactive and prevent fires, stopping the WOLF in its tracks. 

 

 

The RHINO. How does the RHINO get impacted by Evidence-Based Management? With Evidence-Based Management what we're doing is focusing on goals. Too often when we have somebody that's Really Here In Name Only what it is, is a lack of motivation, lack of engagement, or a lack of drive for actually accomplishing something meaningful within the organization. Most humans do not have the will or the desire to not do something purposeful. Where Evidence-Based Management can help is to paint a clear direction of what it is that we're trying to accomplish by having clear goals and a trusting environment in which people can succeed. That's going to make it more likely that people are willing to show up and put their hearts and minds into the work that they're doing. Looking at the rest of the KVAs we can also keep in mind what's the environment like? Are there things that we can be doing to help increase employee satisfaction? Often that’s something that gets cut at the expense of shareholder satisfaction or customer satisfaction. But as we all know if we don't have happy employees, we're not going to succeed in the long term with customer satisfaction. So looking at goals and balancing long-term sustainability for our business and our employees can allow the RHINO to show up with their heart and mind.  

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Speed, Efficiency, and Value: Using Empiricism to Achieve Business Agility

Speed, Efficiency, and Value: Using Empiricism to Achieve Business Agility | Devops for Growth | Scoop.it

Most of what we do is waste, we just don’t know it yet

 

Microsoft and Amazon are regarded as two of the most successful business organizations in the world today, if not in the entirety of history. And yet, by their own measures, most of their new ideas fail to achieve the goals they set out to achieve. In research spanning more than a decade, Ronny Kohavi found, at Microsoft, the following approximate results:

⅓ of ideas improved their intended measures
⅓ of ideas had no effect on their intended measures
⅓ of ideas actually made their intended measures worse

Or to put it more simply, two-third of ideas had zero or negative business benefit. And it didn’t matter who conceived the ideas; executives and other highly experienced, and usually highly paid individuals had no better track record in devising great ideas than relatively inexperienced and lowly-paid employees. In short, everyone has a bad idea sometimes.

You might be tempted to think that your organization does better than that, but if you’re not measuring the impact of the work that you do, how can you be sure? Perhaps you are luckier than most, but it’s very unlikely. Organizations that measure the impact of their work report largely similar results: most of their ideas fail to improve customer outcomes. The key is to identify the ideas that don’t add value early and not develop them any further.
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Why You Should NOT Waste Time & Money on Evidence Based Management!

Why You Should NOT Waste Time & Money on Evidence Based Management! | Devops for Growth | Scoop.it
Are you too busy doing real work to bother about this new fad called "Evidence Based Management"?
Mickael Ruau's insight:

 

SIMPLE, 8 STEP PROCESS

  1. TOTAL MONTHLY BUDGET: Calculate the total number of hours human beings (not "resources") spend on delivering and supporting your solutions each month. Calculate the total money your organization spends on delivering and supporting your solutions each month. (cost of people, servers, licenses, marketing, sales, support, etc. etc.)
  2. TARGET BURN-DOWN: Now define your target burn-down - what is your budget for the number of person hours and money you are willing to burn down each month in the avoidable destruction of value for your customers, users and your business?
    Note: Remember in the complex domain some waste is inevitable and unavoidable. Being in the complex domain implies that there is uncertainty and you don't know what you don't know. When you do complex work, failure is guaranteed. The challenge is not to avoid failure. The challenge is to minimize the amount of failure, to rapidly learn from it and to rapidly course-correct based on the learning and to avoid repeating the same failure over and over again.
  3. ACTUAL BURN-DOWN: Now start measuring your actual burn-down - how many person hours and how much money are you actually burning down each month in the avoidable destruction of value for your customers, users and your business?
  4. TARGET DELIGHT: Now answer this question...On a scale of 0 to 10, how delighted would you like to be with the amount of money and time you burn down each month in the avoidable destruction of value for your customers, users and your business?
  5. ACTUAL DELIGHT: Now answer this question...On a scale of 0 to 10, how delighted are you with the amount of money and time you have actually burned down each month in the avoidable destruction of value for your customers, users and your business?
  6. TARGETS vs. ACTUALS: Now compare your monthly burn-down targets (#2 & #4) with your monthly burn-down actuals (#3 & #5).
  7. TARGETS(#2 & #4) ARE MORE THAN ACTUALS(#3 & #5): If your targets are more than your actuals, YIPPEEEE!!! You don't need no stinking Evidence Based Management!!! You don't need to beat yourself up or feel inadequate in front of those cool kids.
    Your tolerance for wasting time and money is greater than your exposure to wasting time and money. Keep doing what you've always been doing. You'll keep getting what you've always been getting. You're fine. You'll be fine. It's all good.
  8. TARGETS(#2 & #4) ARE LESS THAN ACTUALS(#3 & #5): If, on the other hand, your targets are less than your actuals and you have a longing to reduce the amount of money and time you burn down each month in the avoidable destruction of value for your customers, users and your business, maybe you could consider Evidence Based Management.

WHAT NEXT

OK, so if you found yourself in the second category and are curious to learn more about Evidence Based Management, what do you do next? Where do you get started...? Watch this video...

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Pitfalls (challenges) of implementing EBM

Pitfalls (challenges) of implementing EBM | Devops for Growth | Scoop.it
We have now launched a new Scrum.org course – Professional Agile Leadership – Evidence-Based Management (EBM), and it is an exceptional occasion to share my experience with implementing the framework.
Mickael Ruau's insight:

 

I have been actively working with the Evidence-Based Management (EBM) framework since 2015. Attempts have been incorporated in different environments, including large corporations, medium-sized companies, and start-ups. In this article, I am sharing my best knowledge, practice and… struggles.

If you are looking for an explanation of what the EBM is, please take a look first at the EBM Guide. You may also want to review some additional materials like my article and video devoted to this topic.

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Evidence-Based Management: Gathering the metrics

Evidence-Based Management: Gathering the metrics | Devops for Growth | Scoop.it
Gathering the metrics for Evidence-based Management in software organisations can be a strenuous task and I have a number of customers that are fretting on what to collect and from where. Here I try to create an understanding of the ‘what’ that we need to collect.

Updated to reflect the 2020 Scrum Guide!
Mickael Ruau's insight:

 

There are really three groups of metrics that make sense at the organisational level. There are metrics that monitor the current value being delivered, the time to market and your organisation's ability to innovate. We need to gather these metrics at a point in time as soon as possible to provide a baseline for where the organisation currently is.

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How to start with Evidence-Based Management?

How to start with Evidence-Based Management? | Devops for Growth | Scoop.it
From my experience and observations, my concern is weak understanding that the Evidence-Based Management (EBM) framework is empirical. It requires transparency, frequent inspection, and adaptation. Some organizations proceed with the initial evaluation and then drop the idea. Measuring once and making some decisions is not enough! No promises that this would work.

 
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Learn what really matters based on evidence: Introduction to Evidence-Based Management | CQ Net

Learn what really matters based on evidence: Introduction to Evidence-Based Management | CQ Net | Devops for Growth | Scoop.it
This CQ-Dossier provides an introduction into Evidence-based Management (EBM) and how professionals and managers can implement it.
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The quality of what we know: Denise Rousseau on evidence-based management

The quality of what we know: Denise Rousseau on evidence-based management | Devops for Growth | Scoop.it
Process the facts from the best sources of information
Mickael Ruau's insight:

 

Murmann: So what does evidence-based management mean and why should businesses care about this?

Rousseau: Well, the key idea in evidence-based management is the notion that the quality of the evidence we use makes a difference to how well our decisions work and to the kind of understandings we have of organisational problems.

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“Big Data” and Evidence-Based Management

“Big Data” and Evidence-Based Management | Devops for Growth | Scoop.it
It's a daunting task to keep up with technology. Consider, for instance, the tremendous increase in the sheer volume of information we are
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Evidence-Based Management: From the What and the Why, to the How To •

The central premise of evidence-based practice (EBP) is that decisions are more likely to be successful when they build on critical thinking and the use of the best available evidence – which is easier said than done.

In the past decade, leading figures on EBP in Management and Leadership at the Center for Evidence-Based Management (CEBMa) have been developing a framework to make effective people decisions. In short, this comprises a clear decision-making process and skills and techniques to critically evaluate evidence from multiple sources:

However, up until now, the debate in the evidence-based management movement was centered more on what is it and why do we need it, than on how you do it. But now we are progressing: several practitioners in organizations are being trained on the principles and know-how to make evidence-based decisions, and interest – and commitment – of professional bodies and organizations is raising.

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Design principles: Selection bias –

I will share an interesting case that illustrates the selection bias very well. After that we can take a look at how to counter the selection bias when we make design decisions. Brilliant deduction…
Mickael Ruau's insight:

 

During World War II the British were loosing a lot of their bombers over Germany. They decided to add armor to them but it was expensive so they needed to choose carefully where to add it.
All bombers who had returned were documented well and all the areas of the damage they took were illustrated in diagrams. When the diagrams were overlaid the picture became clear. All the damage was focused around the wings and the body of the planes.
The British first reaction was that they need to add armor to these areas.
However, they decided to ask for a second opinion. A Hungarian mathematician by the name of Abraham Wald was asked to take a look at the diagrams.
Wald’s data was based on the planes that had survived. The data did not include the bombers that were shot down.

His recommendation was the opposite to what the British thought was the solution. They needed to add the armor to the engine , the cockpit and the tail of the planes.

Brilliant deduction from Abraham Wald! He resolved the problem with the bomber’s armor. He could have made a very nice designer. :)

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What Is Evidence-Based Management? « Center for Evidence Based Management

What Is Evidence-Based Management? « Center for Evidence Based Management | Devops for Growth | Scoop.it

 

CEBMa is proud to announce the publication of the booklet “Evidence-Based Management, The Basic Principles”. The booklet is written by Denise Rousseau, Rob Briner and Eric Barends and covers basic questions such as “What is EBP?”, “What counts as evidence?”, “Why do we need EBP?”, “What sources of evidence should be considered?”, “Why do we have to critically appraise evidence?” and “What is the evidence for EBP?”. In addition, common misconceptions are discussed.  
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Jean-Michel Lacroix on LinkedIn:

Jean-Michel Lacroix on LinkedIn: | Devops for Growth | Scoop.it

Durant la 2e guerre mondiale, la Marine a étudié les endroits où renforcer ses avions. Résultats selon leurs données: les ailes, le dos et les ailerons. Mais une personne n'était pas d'accord. Le statisticien disait qu'il fallait plutôt renforcer là où il n'y avait pas eu d'impacts (le nez, les moteurs, le corps). Ses collègues étaient sceptiques: les données montraient l'inverse. Ce qu'il était le seul à avoir compris, c'est que les avions étudiés sont ceux qui revenaient abimés. Ceux touchés ailleurs ne revenaient jamais. Tout mesurer, c'est bien, mais quels sont vos angles morts?

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Les entreprises doivent adopter la "composabilité de l'entreprise" (business composability) en 2022 - Solutions d'entreprise

Les entreprises doivent adopter la "composabilité de l'entreprise" (business composability) en 2022 - Solutions d'entreprise | Devops for Growth | Scoop.it

La volatilité étant le moteur de l'activité dans un avenir prévisible, les DSI sont dans une position unique pour faire progresser les trois domaines de la composabilité de l'activité : la pensée composable, l'architecture d'entreprise composable et la technologie composable.

Pensée composable

"La composabilité des entreprises n'est pas uniformément élevée dans l'ensemble de l'économie parce qu'elle exige de réinventer la pensée des entreprises", a déclaré M. Sinha. "La pensée traditionnelle des entreprises considère le changement comme un risque, alors que la pensée composable est le moyen de maîtriser le risque d'accélération du changement et de créer une nouvelle valeur commerciale."

Les DSI à la tête d'entreprises à haute composabilité reconnaissent que les conditions commerciales changent souvent, des demandes des clients aux modèles financiers, et donnent aux équipes les plus proches de l'action les moyens de réagir et de se reformer en fonction de ces nouvelles conditions. Par exemple, plus de la moitié des entreprises à forte composabilité ont déclaré promouvoir une culture de confiance élevée qui encourage les employés à prendre des décisions de manière indépendante - soit le double du pourcentage des entreprises à composabilité modérée et six fois plus que les entreprises à faible composabilité.

Architecture d'entreprise composable

Les entreprises de l'ère industrielle étaient conçues pour la stabilité et les changements lents et prévisibles. À l'ère numérique, les architectures d'entreprise doivent être conçues pour l'incertitude et le changement continu. Au lieu d'optimiser l'efficacité, l'entreprise composable optimise l'adaptabilité. Les systèmes, les processus et les travailleurs ne servent plus un cas d'utilisation ou un objectif prédéterminé.

"Les initiatives d'affaires numériques échouent lorsque les chefs d'entreprise commandent des projets à l'organisation informatique et se dérobent ensuite à la responsabilité des résultats de la mise en œuvre, en la traitant comme un projet informatique comme un autre", a déclaré Sinha. "Au lieu de cela, les entreprises à haute composabilité embrassent la responsabilité distribuée des résultats numériques, ce qui reflète un changement que la plupart des DSI essaient de faire depuis plusieurs années, et crée des équipes multidisciplinaires qui mélangent les unités commerciales et informatiques pour obtenir des résultats commerciaux."

Technologie composable

"Les entreprises fonctionnent grâce à la technologie, mais la technologie elle-même doit être composable pour faire fonctionner des entreprises composables", a déclaré M. Sinha. "La composabilité doit s'étendre à toute la pile technologique, de l'infrastructure qui prend en charge l'intégration rapide de nouveaux systèmes et de nouveaux partenaires à la technologie du lieu de travail qui favorise l'échange d'idées."

L'enquête a révélé que les DSI et les responsables technologiques des entreprises à forte composabilité ont poussé plus loin le développement technologique itératif, le partage des données entre les systèmes et les personnes, et le développement des capacités d'intégration des données, des analyses et des applications.

"Les DSI des entreprises à composabilité modérée ou faible doivent internaliser ces trois domaines de la composabilité de l'entreprise pour rendre leur organisation plus agile et bien équipée pour faire face à l'évolution rapide de l'environnement commercial dans lequel elles opèrent", a déclaré M. Sinha. "C'est un processus progressif, mais impératif, à l'horizon 2022 et au-delà."

Source : Gartner
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How to use Evidence-Based Management and Scrum (Part 1): Bridging EBM goals with the Scrum Guide  | Scrum.org How to use Evidence-Based Management and Scrum (Part 1): Bridging EBM goals with the Sc...

How to use Evidence-Based Management and Scrum (Part 1): Bridging EBM goals with the Scrum Guide  | Scrum.org How to use Evidence-Based Management and Scrum (Part 1): Bridging EBM goals with the Sc... | Devops for Growth | Scoop.it
This part I of a three-part series will focus on goals. We’ll examine how the goals set out in the EBM guide correspond to the Scrum Guide and some tools and formats for setting workable goals. Part II will focus on experimentation, and Part III will focus on measurement. This part I of a three-part series will focus on goals. We’ll examine how the goals set out in the EBM guide correspond to the Scrum Guide
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The Evidence-Based Management (EBM) Train-the-Trainer (TtT) Experience

The Evidence-Based Management (EBM) Train-the-Trainer (TtT) Experience | Devops for Growth | Scoop.it

 

To summarize, EBM focuses on empiricism, an appropriate approach for solving complex problems:

  • We get evidence if we are making progress on reaching the Strategic Goal
  • We obtain proof if we focus on the right Strategic – and Intermediate Goals
  • An Experiment Loop helps to find out if we create value with Immediate Tactical Goals
  • EBM is beneficial both on a portfolio -  and product level
  • It can be used to match investment to goals and helps to reconsider investment strategies
  • It gives you valuable data on whether your budgeting is reasonably aligned
  • EBM empowers teams in their self-management and foster organizational alignment
  • It fits fine in an agile environment and can be used to increase business agility overall
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Metrics that matter with evidence-based management

Metrics that matter with evidence-based management | Devops for Growth | Scoop.it
I was recently asked to speak at ALM Days in Dusseldorf and more specifically to create a talk on Metrics and KPI’s for Quality. As I have been working a lot recently with evidence-based management.
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What my father taught me about Evidence-based Management (34 years before it was invented!)

What my father taught me about Evidence-based Management (34 years before it was invented!) | Devops for Growth | Scoop.it
A few weeks ago I headed out to the Scrum.org offices in Boston to participate in training to become an Engagement Manager for Agility Path. I was talking to my father about it when I got back and was surprised that he recognised many of the practices and tools.
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Metrics for Agile Teams — Evidence Based Management for Software Organizations

Metrics for Agile Teams — Evidence Based Management for Software Organizations | Devops for Growth | Scoop.it
Also, remember that “not everything that counts can be counted”, and always consider subjective data in addition to objective data. With all of those caveats, I highly recommend you click on the button at the bottom of the EBM page to download the “EBM Guide” as a PDF, and start measuring today!
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Evidence-Based Management: An Overview

Evidence-Based Management: An Overview | Devops for Growth | Scoop.it
Evidence-based management is not a new idea. It has developed several years ago, however, it continued through the movement of evidence-based practice following emerging well-known definition of David Sackett from evidence-based medicine. As other professionals, the movement of evidence-based practice, as well as its application in real setting faces to many challenges. This study aimed to address Evidence-based management definition, principles and its challenges for applying in real settings and the possible solutions to overcome the barriers.
Mickael Ruau's insight:

 

 

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Evidence-Based Management

Evidence-Based Management | Devops for Growth | Scoop.it
Executives routinely dose their organizations with strategic snake oil: discredited nostrums, partial remedies, or untested management miracle cures. In many cases, the facts about what works are out there—so why don’t managers use them?
Mickael Ruau's insight:

Treat the organization as an unfinished prototype.

For some questions in some businesses, the best evidence is to be found at home—in the company’s own data and experience rather than in the broader-based research of scholars. Companies that want to promote more evidence-based management should get in the habit of running trial programs, pilot studies, and small experiments, and thinking about the inferences that can be drawn from them, as CEO Gary Loveman has done at Harrah’s.

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Evidence-based Management: Gathering the metrics

Evidence-based Management: Gathering the metrics | Devops for Growth | Scoop.it
Gathering the metrics for Evidence-based Management in software organisations can be a strenuous task and I have a number of customers that are fretting on what to collect and from where. Here I try to create an understanding of the 'what' that we need to collect.
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Evidence-Based Management for Software Organizations

Evidence-Based Management for Software Organizations | Devops for Growth | Scoop.it

‘Evidence-Based Management’ for software organizations promotes evidence-based decision-making in the managerial domain to create a more sustainable business through improved services in turbulent markets and businesses.

 

Scrum.org, which has Scrum as its DNA and empiricism as guiding principle, provides guidance for ‘Evidence-Based Management’ for software organizations.

 

 

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Robert I. Sutton: Making a Case for Evidence-Based Management

Business wisdom is pretty straightforward, says author and Stanford professor Robert I. Sutton: Act on the best evidence possible, and learn from your mistakes.
Mickael Ruau's insight:

 So ultimately you need the right balance between being able to get the evidence, and not getting caught up in continually getting more and more. You have to be able to act, as well.

That's why the core idea of the book is this notion of wisdom—acting with knowledge while doubting what you know. You can't be so arrogant that you can't learn, nor so insecure that you can't act.

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Agile KPIs: How to measure agile success

Agile KPIs: How to measure agile success | Devops for Growth | Scoop.it
Measuring success of agile efforts can be complex. The key is to emphasize value once you’ve established organizational trust.
Mickael Ruau's insight:

Most organizations that claim agility are not high-trust, which leads to a breakdown in being able to align metrics with business priorities, he says.

 
 

 “The entire goal of agile is to gain trust and be trusted,” Dalton says. Before drilling down to more granular metrics, he says, you first have to address five questions: “‘Do we have an agile culture? Are we credible in the eyes of our own teams, managers and customers? Are we doing the best we can to meet our commitments? And are we producing quality products and services? And are we showing the outside world our best?’” Dalton says. The answers to those questions, he says, tell a manager everything they need to know.
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