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Want to Make Better Decisions, Start Experimenting
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Want to Make Better Decisions, Start Experimenting

Four lessons for using randomized controlled experiments to create value for your company and customers.

Michael Luca and Max H. Bazerman
MIT Sloan Management Review, 2020
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9

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Recommendation

The era of gut instinct as the sole source of information for making decisions is over. Companies now use randomized controlled experiments to resolve issues involving sales or algorithms. Writing for the MIT Sloan Management Review, Michael Luca and Max H. Bazerman report four lessons gleaned from research and interviews to highlight the basics of making your experiments relevant and valuable. From integrating testing into your decision-making processes to ensuring that your experiments provide the results you need, their analysis can help you build your business.

Take-Aways

  • To leverage experiments to make good business decisions follow four lessons:
  • Lesson 1: Imbed experimentation into your decision process.
  • Lesson 2: Don’t only consider “if” something works; find out the “why” behind it.

About the Authors

Harvard business professor Max H. Bazerman and associate professor Michael Luca co-wrote The Power of Experiments: Decision-Making in a Data-Driven World.

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