Evaluation · Multi-week iterative cycles

Testing Business Ideas (Experimentation Loop)

A systematic process for de-risking new ideas through rapid experimentation. It emphasizes validating the desirability, feasibility, and viability of a concept before committing significant resources.

When to use Testing Business Ideas (Experimentation Loop)

When launching high-stakes innovation projects or implementing unproven instructional technologies.

How Testing Business Ideas (Experimentation Loop) works

Facilitators can apply this to pilot programs, using small-scale 'experiments' to test instructional interventions and gather data before a full-scale rollout.

Phases of Testing Business Ideas (Experimentation Loop)

  1. Hypothesize: Break the idea into testable assumptions about desirability, feasibility and viability, and pick the riskiest ones. Teams map assumptions by importance and lack of evidence to decide what to test first.
  2. Design (Experiment): Choose a cheap, fast experiment for the chosen hypothesis and define the metric and success criteria up front. Teams write test cards stating what they will test, measure and count as success.
  3. Test: Run the experiment with real customers or stakeholders and collect the data. The facilitator keeps the team to the plan and the timebox.
  4. Learn: Compare results with the success criteria, judge how strong the evidence is and decide to persevere, pivot or stop. Teams fill in learning cards and pick the next hypothesis to test.

Key principles

  • Evidence over Opinion
  • Iterative Learning
  • Risk Reduction
  • Speed to Insight

Best for

  • Risk Management
  • Hypothesis Testing
  • Agile Development

Considerations

  • Requires a culture that accepts 'failed' experiments as learning
  • Needs clear success metrics defined upfront

Attribution & sources

Developed by David J. Bland and Alexander Osterwalder

Primary source

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