8. October 2022
The Power of Experimenting
To innovate is key in a transformation. Do you have the right balance between planning and rapid experimenting? For example, as most know, at Google, when there is a decision to be made whether ads should have a blue or yellow background, this is not resolved by debate but by running an experiment. It became clear throughout Google that many debates and decisions were unnecessary. It’s an experiment-focused mindset.
Michael Luca and Max H. Bazerman, in a recent MIT Sloan Management Review, suggested the following practices:
- Embed experiments in the decision-making processes. Create a ‘testing’ sensibility and more inclination to check assumptions as leaders.
- Explore why experiments work or not. Be clear about which questions to test and which not. A series of experiments is often better than drawing conclusions from a single experiment.
- Test for broad-based and long-term outcomes. Measuring effects over several months or more can create more powerful insights.
- Aim for transparency. Acknowledge as an organization that you are using experiments to better your services.
I have found quick tests versus long debates to often be a great way to get off the debate roundabout. What are the ways you are using experimentation?