outcomes count as success?”’ These are banal questions to which every competitor in any industry will have similar answers. Instead, competitive advantage begins by asking: ‘On what assumptions are we banking to deliver these outcomes, and what evidence do we have that they are true?’ Experimentation liberates the human imagination. The experimental mindset is one that relishes creativity. It is not afraid of appearing naïve, foolish or unorthodox. The importance of this lies with recognition that great entrepreneurial ideas are rarely self-evident and can be eccentric or idiosyncratic. We need to stray outside of our notions of common sense if we are to bump into great business ideas. Experimentation not only inspires people to be more imaginative in seeking options, but also to be more disciplined in their evaluation. This contrasts sharply with the standard method of strategic planning where little creativity goes into the content of the strategy and yet a spirit of ‘anything goes’ is invested in its execution… as long as targets are met. Experimentation acknowledges human fallibility. When we start with intention, we move to plans, targets and milestones, missing the critical ingredients of knowledge and conceptual foundations. Experimentation starts in the right place – with what we need to know rather than what we need to achieve. It starts with our ignorance, not with our desires. With an acknowledgment of our own fallibility, we find ourselves exercising curiosity, listening to each other, and formulating conjectures. When we ask, ‘what don’t we know that we need to know?’ it becomes the material from which sustainable strategies are constructed. Experimentation changes attitudes to risk and failure. The list of transient practices described in the Bain report are often the result of ‘social proof’ or herd mentality. Management techniques become popularised as people seek ‘best practice’ to avoid the risk of falling behind competitors. They seem blind to the fact that ‘best practice’ is plagiarism, with little being achieved by dutiful obedience. The real competitive advantage is the preserve of those who first experimented with the concept or idea. Changing attitudes to risk and failure can make the difference from being a follower to a leader. Experimentation encourages boldness to try new ideas and catch the first wave of innovation. It means applying a process in which risks are mitigated and failure is viewed as learning. It allows organisations to test strategies in discrete market segments or small parts of the organisation. ‘Farming the bets’ rather than ‘betting the farm’, spreads risk and creates freedom to try things out. It encourages people to test a wider span of ideas because the costs of failure are lower. Experimentation encourages ‘agile’ competences In science, experimentation exemplifies the virtues of patience, humility, open-mindedness, curiosity, and objectivity – qualities that are rare in most businesses where leaders are mainly rewarded and recognized for behaviours that deliver timely results and solutions. However, an over-reliance on authority, experience, and an alacrity to get the job done in these situations, becomes limiting when applied in complex business environments where imagination, nimbleness and dexterity are required to succeed. Leaders that do flourish in such an environment are comfortable with ambiguity and shun control as the only way of decision-making. They are suspicious of shortcuts, compromise and received wisdom. They seek new solutions and different ways of working. In short, they develop a set of skills and behaviours that makes them more agile leaders – they become experimentalists.
ROB JAMES MBE
established his own leadership consultancy practice in 2003, following senior roles in executive development at PwC. In this practice, and as a Programme Director at London Business School, he has worked globally across many industry sectors using experimentation to create greater value for businesses.
JULES GODDARD is the leading proponent and practitioner of action learning programmes at London Business School. He was the first person to be appointed Gresham Professor of Commerce and now serves as a member of the Council of the Royal Institute of Philosophy.
Business Experimentation – A practical guide for driving innovation and performance in your business by Rob James and Jules Goddard is out now.
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