the delta project

framework: experimentation & feedback

 
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.

Experimentation
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.

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.

Feedback
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.