experimentation - Blog - Global Risk Community2024-03-29T08:02:09Zhttps://globalriskcommunity.com/profiles/blogs/feed/tag/experimentationYour Guide to Growth Hacking: 8 Critical Steps for Experimentationhttps://globalriskcommunity.com/profiles/blogs/your-guide-to-growth-hacking-8-critical-steps-for-experimentation2023-10-20T10:40:00.000Z2023-10-20T10:40:00.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><a href="{{#staticFileLink}}12256894872,RESIZE_1200x{{/staticFileLink}}"><img class="align-full" src="{{#staticFileLink}}12256894872,RESIZE_710x{{/staticFileLink}}" width="710" alt="12256894872?profile=RESIZE_710x" /></a></p><p>Development hacking is a trendy term at the moment. In general, conventional marketers perceive <a href="https://flevy.com/browse/flevypro/growth-hacking-experimentation-7661">Growth Hacking Experimentation</a> as a formidable challenge.</p><p>Traditional marketers inadvertently participate in growth hacking experiments in the course of their routine activities. As an illustration, they perform A/B testing, pre-test variables, and incorporate experimental results in order to improve the products or variables. To increase conversion rates, this may entail revising the current content of a document we produce, such as a whitepaper, memo, or article.</p><p>A number of marketers have successfully implemented Growth Hacking through a thorough understanding of its fundamental principles and mechanisms. Gaining comprehension of the subsequent foundational pillars that constitute Growth Hacking empowers organizations to achieve remarkable results:</p><ul><li>Assess existing marketing initiatives: This entails the evaluation of an organization's primary lead generation sources, <a href="https://flevy.com/browse/marketplace/designing-a-marketing-channel-system-6387">Marketing Channels</a>, traffic patterns, and page viewers.</li><li>To establish clear objectives: In order to advance the progress of your ongoing marketing initiatives, establish objectives and the means to achieve those objectives.</li><li>Develop experimental strategies to validate hypotheses: Develop an assortment of methodologies in order to verify your hypotheses and achieve your objectives.</li><li>Conduct pilot tests: Analyze your hypotheses until you arrive at results that are statistically significant.</li><li>Record and distribute findings: Create and disseminate documentation of the techniques that have improved your current marketing strategies to your team.</li></ul><p>Growth Hacking is a strategic approach aimed at augmenting customer base, revenue, or business operations. As experimental trials, it necessitates a methodical approach to organizing, executing, and documenting concepts.</p><p>The process of Growth Hacking Experimentation consists of the following eight crucial steps:</p><ol><li><strong>Employ a scientific approach.</strong></li><li><strong>Establish objective.</strong></li><li><strong>Foster a culture of brainstorming and </strong><a href="https://flevy.com/browse/flevypro/defining-issues-and-generating-hypotheses-1691"><strong>hypothesis development.</strong></a></li><li><strong>Prioritize ideas.</strong></li><li><strong>Design and execute experiments.</strong></li><li><strong>Evaluate results.</strong></li><li><strong>Share findings of experimentation.</strong></li><li><strong>Learn from others.</strong></li></ol><p> <a href="{{#staticFileLink}}12256895253,original{{/staticFileLink}}"><img class="align-full" src="{{#staticFileLink}}12256895253,RESIZE_710x{{/staticFileLink}}" width="710" alt="12256895253?profile=RESIZE_710x" /></a></p><p>Let’s dive deeper into the first four steps of the Growth Hacking Experimentation model for now.</p><p><strong>Step 1. Employ a scientific approach.</strong></p><p>The preliminary stage of Growth Hacking Experimentation underscores the importance of a systematic process free from any element of uncertainty. The procedure should consist of distinct and well-defined phases, starting with <a href="https://flevy.com/browse/flevypro/7-steps-to-brainstorming-3499">idea generation through Brainstorming</a> and advancing to hypothesis formulation, idea prioritization, and implementation.</p><p>It is not imprudent for the process of Experimentation to occur in isolation. The methodology should be thoroughly documented, scalable to other experiments, and applicable to a wider range of product lines, departments, and geographic regions.</p><p><strong>Step 2. Establish objective.</strong></p><p>During this phase, measurable and actionable goals and indicators are established for the Growth Hacking Experimentation so that their progress can be monitored. Every experiment's results must be actionable and traceable. The execution of Growth Hacking Experiments ought to be carried out gradually and incrementally.</p><p>To illustrate, in the context of a Growth Hacking initiative aiming to augment revenue, procuring supplementary leads of superior quality will aid in the realization of this goal. As a result, enhancing the conversion rate of the campaign that generates the minimum quantity of leads becomes imperative. Precisely on a landing page, the campaign-level objective should be a 5% increase in conversions.</p><p><strong>Step-3. Foster a culture of brainstorming and hypothesis development.</strong></p><p>Nurturing a culture that appreciates and applies innovative concepts necessitates a steady provision of motivation and stimulation throughout collaborative ideation sessions. This process enables the development of feasible hypotheses. To guarantee the positive outcome of the Growth Hacking Experimentation, it is imperative to establish a methodical framework for overseeing and documenting ideation sessions.</p><p>It is advisable for marketers to utilize a suitable internal documentation application, such as Trello, Google Doc, or Excel, in order to methodically record every idea that the team proposes. Following this, they should provide guidance to their team on how to transform assumptions generated by ideation into hypotheses that are supported by empirical evidence. Additionally, they should maintain a record of prioritized concepts, evaluation criteria, and Decision-making justifications to aid future experiments.</p><p><strong>Step 4. Prioritize ideas.</strong></p><p>Following the ideation session, the Growth Hacking Experimentation requires an evaluation and classification of the growth ideas generated. To facilitate the prioritization of ideas, it is critical to establish precise criteria that will be applied to evaluate each concept. In order to facilitate an objective comparison of the ideas, a score and rank should be assigned to each one in accordance with the predetermined criteria.</p><p>Interested in learning more about the next steps of Growth Hacking Experimentation? You can download <a href="https://flevy.com/browse/flevypro/growth-hacking-experimentation-7661">an editable PowerPoint presentation on <strong>Growth Hacking Experimentation</strong> here </a>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><p><strong>Do You Find Value in This Framework?</strong></p><p>You can download in-depth presentations on this and hundreds of similar business frameworks from the <a href="https://flevy.com/pro/library">FlevyPro Library</a>. <a href="https://flevy.com/pro">FlevyPro</a> is trusted and utilized by 1000s of management consultants and corporate executives.</p><p>For even more best practices available on Flevy, have a look at our top 100 lists:</p><ul><li><a href="https://flevy.com/top-100/strategy">Top 100 in Strategy & Transformation</a></li><li><a href="https://flevy.com/top-100/organization">Top 100 in Organization & Change</a></li><li><a href="https://flevy.com/top-100/consulting">Top 100 Consulting Frameworks</a></li><li><a href="https://flevy.com/top-100/digital">Top 100 in Digital Transformation</a></li><li><a href="https://flevy.com/top-100/opex">Top 100 in Operational Excellence</a></li></ul><p> </p></div>Do You Know How to Transform Your Organization into a Learning Organization?https://globalriskcommunity.com/profiles/blogs/do-you-know-how-to-transform-your-organization-into-a-learning2019-06-13T19:25:51.000Z2019-06-13T19:25:51.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><img src="https://media.licdn.com/dms/image/C4E12AQGUHGSZFjsW9g/article-cover_image-shrink_720_1280/0?e=1565827200&v=beta&t=hGbxR7ReCncyIhWsY41RvJ4OKVsJRJgFHjDrauWlKfY" alt="0?e=1565827200&v=beta&t=hGbxR7ReCncyIhWsY41RvJ4OKVsJRJgFHjDrauWlKfY" /></p><p>In this era of rapid change only organizations that are evolving and continuously learning can flourish. Successful organizations discover how to tap their people’s commitment and capacity to learn at all levels.</p><p>A <a href="https://flevy.com/browse/flevypro/learning-organization-primer-3829" target="_blank">Learning Organization</a> is a place where people continually expand their capacity to create the results they truly desire, where new ideas and thinking are nurtured, and where people are continually learning to see the whole together. A Learning Organization is established on the principles of innovation, free flow of ideas, and a consistent focus on transforming the ways of doing business.</p><p>Learning Organizations adopt 5 distinct practices to succeed, which form the “building blocks” of such organizations:</p><ul><li>Systematic Problem Solving</li><li>Experimentation</li><li>Learning from Experience</li><li>Learning from Others</li><li>Knowledge Transfer</li></ul><p><a href="https://flevy.com/browse/flevypro/learning-organization-primer-3829" target="_blank">Five key characteristics distinguish a Learning Organization</a> from the rest. These attributes serve as the guiding principles and practices that these organizations study and integrate into their DNA. A blend of these core characteristics helps organizations adopt a more interconnected way of thinking:</p><ol><li><strong>Systems Thinking</strong></li><li><strong>Personal Mastery</strong></li><li><strong>Mental Models</strong></li><li><strong>Shared Vision</strong></li><li><strong>Team Learning</strong></li></ol><div class="slate-resizable-image-embed slate-image-embed__resize-full-width"><a href="http://flevy.com/browse/flevypro/learning-organization-primer-3829" target="_blank"><img src="https://media.licdn.com/dms/image/C4E12AQGARvoOh8bLUg/article-inline_image-shrink_1000_1488/0?e=1565827200&v=beta&t=ZQ3L393IaB5Yw_p8lrgUO1LTwID_Zo_nEVD6iKxlCQY" alt="No alt text provided for this image" /></a></div><p>By adopting and mastering these core characteristics organizations become communities that employees can commit to. Let's, now, discuss the first 3 characteristics in detail.</p><h3><strong>Systems Thinking</strong></h3><p>Systems thinking allows people to study businesses as bounded objects. Learning Organizations possess information systems to assess the performance of the organization and its components as a whole. Systems thinking states that all the characteristics must be present together in an organization for it to be a Learning Organization. However, some experts consider that the characteristics of a Learning Organization are gradually acquired, rather than developed simultaneously.</p><h3><strong>Personal Mastery</strong></h3><p>Personal mastery is an individual’s commitment to learning. It is about becoming more productive by applying skills to work in the most constructive manner. It involves clarification of focus, vision, and to interpret reality objectively. Training, development, and continuous self-improvement are the sources of individual learning.</p><h3><strong>Mental Models</strong></h3><p><a href="https://fs.blog/mental-models/" target="_blank">Mental models</a> include assumptions and generalizations retained by individuals and organizations, which go undetected, as mental models limit peoples’ observations. Learning Organizations need to identify and challenge these models. For a learning environment it is important to replace confrontational attitudes with an open culture that promotes inquiry and trust, introduce mechanisms for uncovering and assessing organizational theories of action, and discard any unwanted values.</p><h3><strong>Role of Leadership</strong></h3><p>Productivity and competitiveness relies on knowledge generation and processing. Therefore, organizations not only have to invest in new machinery and systems to improve production, but also focus on knowledge generation and learning of their people. Learning Organizations require a new view of leadership. Leaders in Learning Organizations create workplaces that help people keep building their capabilities to understand complexity, clarify vision, and improve shared mental models.</p><p><a href="https://mitsloan.mit.edu/faculty/directory/peter-m-senge" target="_blank">Peter Senge</a> describes the 3 key qualities of leaders to be critical in leading the Learning Organization:</p><ol><li><strong>Designer</strong></li><li><strong>Steward</strong></li><li><strong>Teacher</strong></li></ol><h3><strong>Designer</strong></h3><p>The key roles of a leader as a designer in Learning Organizations is designing the policies, strategies, and systems. The designer also outlines the governing ideas—the purpose, vision, and core values—for the people. They plan and develop the learning processes whereby people throughout the organization can deal productively with the critical issues they face, and cultivate personal mastery of the team members in the desired learning disciplines.</p><h3><strong>Steward</strong></h3><p>According to Peter Senge, the notion of management in this modern age should be replaced by “stewardship”—whereby control and consistency should be swapped with partnership and choice. The leader as a steward tells ‘purpose stories’ about their organization and relate those stories. They explain the reasons of the tasks that are required to be performed, the need for the organization to evolve, and the purpose of evolution. They learn to listen to other people, involve them, and develop vision—both individual and shared.</p><p>Interested in learning more about the key attributes of leaders and core characteristics of a <a href="https://flevy.com/browse/flevypro/learning-organization-primer-3829" target="_blank">Learning Organization</a>? You can download <a href="https://flevy.com/browse/flevypro/learning-organization-primer-3829" target="_blank"><u>an editable PowerPoint on </u><strong><u>Learning Organization Primer</u></strong><u> here</u></a> on the <a href="https://flevy.com/browse" target="_blank">Flevy documents marketplace</a>.</p><h3><strong>Are you a Management Consultant?</strong></h3><p>You can download this and hundreds of other <a href="http://flevy.com/pro/library/frameworks" target="_blank">consulting frameworks</a> and <a href="http://flevy.com/pro/library/consulting" target="_blank">consulting training guides</a> from the <a href="http://flevy.com/pro/library" target="_blank">FlevyPro library</a>.</p></div>The 5 Building Blocks to Creating a Learning Organizationhttps://globalriskcommunity.com/profiles/blogs/the-5-building-blocks-to-creating-a-learning-organization2019-06-08T11:53:18.000Z2019-06-08T11:53:18.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><img src="{{#staticFileLink}}8028296891,original{{/staticFileLink}}" alt="8028296891?profile=original" /></p><p>Organizations need to persistently improve the way they do business to stay ahead of the curve. New ideas trigger organizational improvement and build the foundation of a Learning Organization.</p><p>Scholars have defined a <a href="https://flevy.com/browse/flevypro/learning-organization-5-building-blocks-3827" target="_blank">Learning Organization</a> in many different ways. Some suggest it as an organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights. Marlene Fiol and Marjorie A. Lyles describe <a href="https://en.wikipedia.org/wiki/Organizational_learning" target="_blank">organizational learning</a> as “the process of improving actions through better knowledge and understanding.” Barbara Levitt and James G. March define organizations as "Learning Organizations when they encode inferences from history into routines that guide behavior. Chris Argyris categorizes organizational learning as “a process of detecting and correcting error.” According to Peter Senge, “a Learning Organization is a group of people working together collectively to enhance their capacities to create results they care about.”</p><p>Being a Learning Organization offers several advantages. A perpetual influx of insights and new experience keeps the organization dynamic and ready for transformation; assists in better management of investments, improves efficiency; and helps in developing cost leadership and differentiation strategies. Learning Organizations tend to be more innovative by encouraging people to learn, develop, and by generating a more innovative environment. Shared learning builds the corporate image of the organization and increases the pace of change within the organization. Learning Organizations provide their people the ability to think insightfully about complex problems, take coordinated action, improve decision making, and instill a sense of community in them.</p><p>Despite efforts to improve continuously and creating new knowledge, organizations cannot simply become Learning Organizations. They employ various approaches but what they actually need is to become proficient in translating new knowledge into new ways of doing things, and actively managing the learning process so that it gets ingrained into the organizational culture.</p><p>Becoming a Learning Organization necessitates mastering 5 key activities. These 5 activities form the <a href="https://flevy.com/browse/flevypro/learning-organization-5-building-blocks-3827" target="_blank">building blocks of a Learning Organization</a> and should be integrated into the organizational core to transform your company into a Learning Organization.</p><ol><li><strong>Systematic Problem Solving</strong></li><li><strong>Experimentation</strong></li><li><strong>Learning from Experience</strong></li><li><strong>Learning from Others</strong></li><li><strong>Knowledge Transfer</strong></li></ol><div class="slate-resizable-image-embed slate-image-embed__resize-full-width"><img src="https://media.licdn.com/dms/image/C4E12AQHfqTx8YarMow/article-inline_image-shrink_1000_1488/0?e=1565222400&v=beta&t=k9bNfOaQrzGicarnmLbyZjAywugiDhE3GXjTFrI2ZN4" alt="No alt text provided for this image" /></div><p>Applying these practices to some degree or in isolated cases isn’t enough. To ensure continued success, these practices should be complemented by distinct mindsets, support systems, and processes.</p><p>Let’s now discuss the first 3 building blocks in detail.</p><h3><strong>1. Systematic Problem Solving</strong></h3><p>Systematic problem solving is based on scientific methods for diagnosing problems, e.g., the Plan, Do, Check, Act (PDCA) cycle or “hypothesis-generating, hypothesis-testing.” The technique employs fact-based management, relying on concrete data instead of assumptions for making decisions and utilizes statistical tools—such as Pareto charts, histograms, correlation, and cause and effect diagrams—to consolidate data and draw conclusions.</p><p>For a real Learning Organization, people need to become more disciplined, pay more attention to detail, assess underlying causes, and analyze data before reaching decisions.</p><h3><strong>2. Experimentation</strong></h3><p>Experimentation involves systematic exploration and testing of new knowledge. Experimentation has 2 fundamental configurations; both forms transfer knowledge and yield new insights, capabilities, tools, techniques, and processes:</p><ol><li>Ongoing programs</li><li>Demonstration Projects</li></ol><h3><strong>Ongoing Programs</strong></h3><p>Ongoing programs entails a chain of small experiments aimed at yielding incremental gains in knowledge. These programs maintain a steady flow of new ideas by sending workforce on sabbaticals at different places to learn new work practices and tools from industry and academia, and applying that knowledge to their daily routines. Such programs foster risk taking and a feeling of “benefits of experimentation far outweigh the costs.”</p><h3><strong>Demonstration Projects</strong></h3><p>Demonstration projects are one of a kind, large-scale initiatives that include holistic system-wide transformation targeted at a single site. These projects are executed with a goal of developing new organizational capabilities using a “clean slate” approach.</p><p>Self-managing, multi-departmental teams; high level of employee autonomy; considerable “learning by doing;” course corrections; implicit policy guidelines, precedents, and decision rules are the key characteristics of demonstration projects.</p><h3><strong>3. Learning from Experience</strong></h3><p>Learning Organizations gain valuable knowledge from their past experiences, by doing an exhaustive and systematic appraisal of past successes and failures. However, not too many managers pay attention to past experiences or reflect on those, eventually losing valuable insights. To inculcate a culture of learning, lessons learned should be recorded and made readily accessible to all employees.</p><p>A handful of companies have laid out processes for their managers to contemplate on their past actions and incorporate those in their learning. At the core of this approach lies the belief that distinguishes productive failure from unproductive success. Productive failure delivers knowledge and understanding whereas unproductive success goes unnoticed where nobody knows what went well and why. Learning from experience approach isn’t that expensive—case studies and project reviews can be compiled with little cost.</p><p>Interested in learning more about the <a href="https://flevy.com/browse/flevypro/learning-organization-5-building-blocks-3827" target="_blank">building blocks of a Learning Organization</a>? You can download <a href="https://flevy.com/browse/flevypro/learning-organization-5-building-blocks-3827" target="_blank"><u>an editable PowerPoint on </u><strong><u>Learning Organization: 5 Building Blocks</u></strong><u> here</u></a> on the <a href="https://flevy.com/browse" target="_blank">Flevy documents marketplace</a>.</p><h3><strong>Are you a Management Consultant?</strong></h3><p>You can download this and hundreds of other <a href="http://flevy.com/pro/library/frameworks" target="_blank">consulting frameworks</a> and <a href="http://flevy.com/pro/library/consulting" target="_blank">consulting training guides</a> from the <a href="http://flevy.com/pro/library" target="_blank">FlevyPro library</a>.</p></div>THE DELTA MODEL: Discovering New Sources Of Profitability In A Networked Economy - THE METRICShttps://globalriskcommunity.com/profiles/blogs/the-delta-model-discovering-new-sources-of-profitability-in-a-32014-12-08T23:30:00.000Z2014-12-08T23:30:00.000ZEnrique Raul Suarezhttps://globalriskcommunity.com/members/EnriqueRaulSuarez<div><h5 style="background:#FFFFFF;margin:0in 0in 0pt;text-align:justify;"><em><span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en">Aggregate Metrics need to be supplemented with Granular Metrics</span></em></h5><p style="background:#FFFFFF;text-align:justify;"></p><p style="background:#FFFFFF;text-align:justify;"><span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en">The popular wisdom today is that the success of a business can be managed by focusing on several key top-line variables. While these averages are helpful, our research has shown that the true performance drivers can only be identified by de-averaged granular metrics. The challenge then is to isolate these detailed metrics, measure the concentrations of cost, revenue and profitability, and learn how to harness these underlying performance factors to improve the profitability of the enterprise as a whole.</span></p><p style="background:#FFFFFF;margin:0in 0in 0pt;text-align:justify;"><span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en">Performance measurements and quantifiable indicators are essential for the development, execution and monitoring of the desired strategy. The Delta Model aligns performance metrics to the strategic options selected and their required Adaptive Processes, and recognizes that these metrics will be fundamentally different depending on the strategic position they intend to support.</span></p><p style="background:#FFFFFF;text-align:justify;"></p><p style="background:#FFFFFF;text-align:justify;"><span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en">In the Delta Model, we use two types of metrics. First, we need aggregate metrics to give us the overall, integrated view of the business and the firm's performance. Second, we need granular metrics in very specific parameters that will allow us to go in-depth for the necessary understanding of their behavior.</span></p><p style="background:#FFFFFF;text-align:justify;"><em><span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en">"Managing solely by the averages leads to below average performance."</span></em></p><p style="background:#FFFFFF;text-align:justify;"><strong><span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en">Aggregate Metrics</span></strong></p><p style="background:#FFFFFF;text-align:justify;"><span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en">The Aggregate Metrics we propose are those associated with the Adaptive Processes that support each distinct strategic option. Since these processes are the instruments for the execution of each strategic option, they also serve as the guidelines to define and measure strategic performance — Operational Effectiveness metrics focus on cost drivers, Customer Targeting metrics on profit drivers, and Innovation metrics on renewal drivers. The aggregate metrics used also reflect the nature of the strategic options whose performance they are measuring — the Best Product metrics are product-oriented; the Total Customer Solution, customer-oriented; and the System Lock-in, system-oriented. Of course, specific tailor-made metrics could and should be introduced in each individual business situation.</span></p><p style="background:#FFFFFF;text-align:justify;"><strong><span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en">Granular Metrics</span></strong></p><p style="background:#FFFFFF;text-align:justify;"><span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en">While aggregate metrics are essential for gathering the full picture of overall performance, they are not enough. They need to be complemented by individual granular metrics whose objective is understanding the variability in the behavior of some critical parameters such as product costs, customer profitability, workers productivity, as so on. The performance of these parameters is inevitably non-linear. This so called 80/20 rule is universal, in the sense that a small percentage of items (say 20 percent of customers) account for a disproportional amount of the output (say 80 percent of the profit). We need to measure this variability in order to assess what is the cause. With that knowledge we can begin to learn how to improve performance by making corrective actions or taking on innovative solutions.</span></p><p style="background:#FFFFFF;text-align:justify;"></p><p style="background:#FFFFFF;text-align:justify;"><strong><span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en">Experimentation and Feedback</span></strong></p><h5><span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en"><em>Key Adaptive Mechanisms</em></span></h5><p style="background:#FFFFFF;text-align:justify;"><span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en">Success in today's ever-changing world comes not from creating one perfect plan but rather from adapting as the environment changes. This requires incorporating feedback mechanisms and defined experimentation into your processes and improving through a defined process of segmentation, testing, learning and execution.</span></p><p style="background:#FFFFFF;margin:0in 0in 0pt;text-align:justify;"><span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en">An important contribution of the Delta Model addresses the issues of experimentation and feedback, key adaptive mechanisms in the pursuit of successful corporate and business strategy development.</span></p><p style="background:#FFFFFF;text-align:justify;"></p><p style="background:#FFFFFF;text-align:justify;"><strong><span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en">Experimentation</span></strong> <span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en"><br /> Structured experimentation is the key to implementing effectively a major business transformation. This is particularly critical when you want to move from one strategic option to another (say from Best Product to Total Customer Solution), where the number of unknowns is high and the optimal implementation path is unclear. The way to address this challenge is to design a careful set of experiments aimed at building a more thorough, fact-based knowledge of the issues prior to committing to a full-scale organizational effort.</span></p><p style="background:#FFFFFF;text-align:justify;"><span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en">As an example, for a client attempting to adopt a Total Customer Solution strategy, we first requested a list of three critical customers who were willing to participate in a joint research activity, and whose business portfolios would provide valid lessons transferable subsequently to the overall customer community. For each customer we then identified five high priority needs in terms of product and service requirements. We thoroughly analyzed the customer economics and the competitor's offerings. The "test" market allowed us to develop a unique value proposition for each customer and to quantify the level of economic benefit for the customer and the client. We then implemented a roll-out of the successful approach to the balance of the customer base.</span></p><p style="background:#FFFFFF;text-align:justify;"><strong><span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en">Feedback</span></strong> <span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en"><br /> Once you have chosen a strategic direction, identified the relative metrics, and conducted the appropriate experiments to "fine-tune" your adaptive processes, you are ready to move forward with implementation. However, after you have done all of that, you will still likely need to modify the selected course of action and the consequent strategic agenda to allow for unexpected changes in your basic hypotheses. Thus you will need feedback. You will need to constantly monitor and measure performance, identify changes versus the original plan, and determine corrective and adaptive actions. You will also need to build enough flexibility into your management system, organizational structure, and resources to allow for proper changes to be made.</span></p><p style="margin:0in 0in 0pt;text-align:justify;"><span lang="en" style="font-family:Arial, 'sans-serif';font-size:11pt;" xml:lang="en"> </span></p><p></p></div>