Experimentation versus Planning

Strategic planning was trendy in the 1990s when I began working. To achieve any task, a general strategy was first set up, tactical plans were created to support this strategy, and these plans were implemented in a determined manner. Thus, it was aimed to ensure efficient use of the available resources towards the desired target.

Strategic planning required the knowledge of expertise in the field of activity and the best practices. Many assumptions were used while creating a strategic plan, and these assumptions were assumed to be true. Thus, it was ensured that the highest possible percentage of the activities carried out would produce efficient results.

After all, it was a global economy that made it easier to access information through the internet, and it made sense to imitate initiatives in which others tried and succeeded. Strategic planning attaches great importance to theory; while intellectual knowledge was blessed, the practice did not seem so important.

As the years progressed, generally accepted ways of doing business began to lose popularity. Because the assumptions adopted during strategic planning could be wrong, as the change in the market accelerated, things could not go as expected. The rapid technology change had begun to change the game rules so quickly that the plans made with great effort could become useless.

To make a difference in the work done over time, it was not enough to use the well-known methods. It was necessary to innovate and quickly implement these innovations constantly. Because digitalization reduces costs, it became popular to try out new business models with relatively low costs.

After all, strategic planning emerged when the industry was the dominant sector in the economy. Industrial production required a large scale and a large amount of physical investment. The price of a wrong investment was therefore very high.

Now many experiments have been carried out to achieve business objectives. Innovations are first tested on a small scale, and products/services accepted by the market are gradually being developed. This gradual investment concept has even shaped the entertainment industry. When a particular piece of fiction is appreciated, new films, novels, computer games, and tv series regarding that universe are produced.

Nowadays, a business understanding that encourages risk is popular. A large number of low-cost and fast-paced trials are being carried out. The experiments that succeed are applied on a larger scale.

The practice of applying the trial and error method with fast iterations has also taken place in politics. Populist right-wing politicians use this method. They develop hypotheses contrary to generally accepted truths, measure reactions, and sometimes implement these concepts despite the negative responses. Thus, they remain on the agenda, and when some of the actions work, they are regarded as brave, foresighted leaders.

Being less educated is a kind of advantage to implement the action-driven way of doing business. Because in educated minds, there are clear boundaries about what is right and wrong. Experts in a particular field can prevent innovation because of their preconceptions about which action will work and will not work.

Due to the nature of innovation, most trials fail, but a small number of successful tests make up for the amount spent on failed trials.

Experimentation neither diminishes the importance of expertise nor eliminates the need for strategic planning.

Of course, there is also an ethical dimension. The experiments must comply with the ethical rules. Focusing too much on daily practical results in education, international relations, the law, can lead to significant problems in the long run.

In recent years, the business world began to prefer empiricism rather than rationalism. The development of measuring possibilities compared to the past is influential in this issue. Digitization allows measuring the results of the actions quickly and efficiently. The most critical problem with the trial and error approach is that short-term output does not guarantee positive results in the long term. For this reason, it is necessary to evaluate the long-term effects and whether a concept is useful before being disseminated.

Thanks for reading.

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