When my team came to me with competing ideas to get my input, or a decision on which path to take, I would often say, “test/don’t guess.” Run a strategic experiment to evaluate both ideas and see what happens.
Growth principle number nine is not to just assume or guess you are right, test! I have observed that the more experience or power a person has, the more likely they are to assume they are right. Right about their predictions, assumptions, opinions, etc. Resist the urge and test.
Concept:
Run strategic experiments to increase the probability that you are pursuing the best growth strategy.
- Start with a challenge or goal.
Example: grow market share by focusing on sales force effectiveness. - Create a hypothesis or test statement.
Example: if we increase the sales training budget and make training mandatory, the sales team will become more knowledgeable. This will eventually improve sales force effectiveness, which drives market share and revenue. - Run a test.
Example: double sales training budget and offer bonuses for completing training by a target date in one region. Compare results with another region. - Set evaluation criteria, compare actual results with projected results.
Example: compare close ratios, retention rates, and sales between the test and control groups.
By observing actual results and getting firsthand feedback, the best growth strategies will emerge.
Reflection:
Are you running the strategic experiments necessary to sustain organic growth and competitive advantage?
Action Step:
Design and implement three to five strategic experiments over the next twelve months.
