Do you test new ideas before implementing them in your organization? Conducting business experiments can be a helpful way to reduce risk when charting a new course. However, there is a fine line between effective testing and testing too much. Here’s what you need to know about keeping the balance.

What is the Value of Testing Ideas?

Whether you’re A/B testing the subject line of your email newsletter or designing new packaging for your product, running business experiments can give you valuable insight into what your customers prefer. If you never test your new ideas before implementation, you cannot know if the changes you’re making are an improvement.

However, problems arise when we test less. When the C-suite starts getting nervous about strategy effectiveness, the tendency is to put too many moving parts into play. It’s possible to spend so much time, energy, and money on testing that it cancels out whatever additional profit might arise from the test results.

It’s also possible to hide behind testing a business hypothesis to put off making a stressful decision. By continuing to test, we complicate the process and delay the point at which our success or failure will be determined. Eventually, it would be best if you pulled the trigger in situations like this.

How to Test a Business Idea

The key to successful testing is to develop a process that must be followed every time. Here are a few suggestions for running more effective business experiments:

1. Establish a test czar. One senior team member should be the gatekeeper for all tests. Without a metering position, too many competing agendas and priorities within the senior team will create havoc. Someone with a new idea must run it past the test czar. Create a process for this to maintain order and prevent overwhelm.
2. Define the parameters. Before you start any test, clearly state in writing what you expect, how you will measure the results, who is responsible, what the sunset date is, and most importantly, how you will re-establish the norm if it doesn’t work. How can you replace the original environment, and what will it cost?
3. Listen to your line managers. If the complexity of your test throws off your operations gurus, you need to regroup fast. These are the experts who have to execute the senior team’s directives. If they can’t make sense of the test, make it simpler and get them refocused.
4. Have the courage to say no. When seeking answers, the business principal often needs to be more lenient in making recommendations from their team. Your leadership needs to help prioritize and to bolster your test czar.
5. Please be sure to know when not to test. It’s tempting to experiment with every change to find the most optimized solution, but sometimes it’s not worth it. Unless you think your test will uncover a significant increase in conversions, you should be selective about when to test. Occasionally, you must trust your intuition and decide without testing.

Are you interested in maximizing the effectiveness of your business experiments and other leadership tactics? Sign up for my email list for weekly articles about leading and operating businesses delivered directly to your inbox.

Coach Dave