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White Paper: Business Myths Maybe Destroying Your Shareholder Value Every executive in the world wants the same thing-improved results: more profit, less cost, better quality, and higher customer satisfaction. But what business improvement ideas will produce these results, and how can you be sure that plans which look good on paper will actually work in the real world? Without testing them, you can't be sure. The problem is further complicated by the fact that most of us were taught that the optimum process for gaining knowledge is to test one-thing-at-a-time and hold everything else constant. It is called the scientific method. MVT® (Multivariable Testing) proves that the scientific method doesn't really work in the real world. Where the method goes wrong is that it is unable to quickly test dozens of ideas simultaneously and measure the impact of the combinations of ideas. One-idea-at-a-time testing is simply incapable of uncovering the synergies between the ideas, even if you had the time, energy and resources to continue testing for years. MVT® permits you to uncover the synergies between ideas that often times yield results that are counter-intuitive. MYTH: Efforts to increase customer convenience will certainly payoff. A direct sales organization that markets telecommunication equipment tested 22 ideas in an MVT® experiment. One of the ideas was to extend office hours by one hour at the beginning and end of each day, to make themselves more accessible to customers and increase sales. The actual result was the direct opposite, sales went down. What happened? Spreading the staffing schedule across two additional hours each day resulted in inadequate coverage. A few customers took advantage of the expanded hours, but the majority of customers received poorer service. The good news was that by avoiding this damaging action and implementing five other helpful ideas, sales more than tripled! Request a reprint of the entire article. |
Since 1982, QualPro has used Multivariable Testing (MVT®) with 1000+ companies to test 100,000+ improvement ideas. MVT® tests between 20 and 40 ideas simultaneously, accurately predicting the bottom-line impact of potential process changes in as short as 12 weeks. Take existing process initiatives, like Six Sigma, to a whole new level. All process improvement tools and approaches (TQM, DOE, Six Sigma, Re-Engineering, SPC) can be enhanced through the use of Multivariable Testing® by QualPro.
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