What is an effective leverage point for performance improvement with today’s analytic tools?

Conducting experiments on processes is an effective leverage point for performance improvement with today’s analytic tools because it allows organizations to test different strategies or changes in a controlled environment. This experimentation can lead to insights about what works and what doesn't, enabling data-driven decisions to optimize operations. By systematically varying elements of a process and observing the outcomes, organizations can identify the most effective methods and implement improvements based on empirical evidence rather than assumptions. This approach fosters a culture of continuous improvement and supports innovation, making it highly valuable in today's fast-paced business environment.

While options such as collecting extensive data, convincing stakeholders, and building contingency plans are important aspects of a data-driven strategy, they do not directly facilitate the same level of hands-on experimentation that can yield immediate insights and actionable results. Collecting extensive data can provide a wealth of information, but without the experimentation to test hypotheses, it may not lead to effective performance improvements. Convincing stakeholders is crucial for driving change, yet it primarily addresses buy-in rather than direct performance enhancement. Building contingency plans is about preparing for potential issues but does not inherently foster improvement within existing processes. Therefore, conducting experiments stands out as a proactive and dynamic approach to leveraging analytic tools for performance enhancement.