As the calendar turns to 2025, a question looms large for business leaders: How do we stay ahead in a world that’s changing faster than ever? The answer lies in one word: experimentation. The most agile companies recognize that calculated risk-taking, guided by data and sound frameworks, is no longer optional—it’s essential. For fractional operations leaders, helping businesses embrace experimentation could be the key to unlocking transformative growth this year.

The 70-20-10 Innovation Model: A Map for Risk and Reward

To effectively experiment, businesses need structure. That’s where the 70-20-10 innovation model comes in. This proven framework allows teams to allocate their time and resources to ideas that balance safety with creativity:

70% on core activities: Focus on refining and optimizing what already works. These are your bread-and-butter operations that keep the business running smoothly.
20% on adjacent innovation: Invest in ideas that build on existing strengths or customer bases. Think of this as enhancing what’s already familiar but with a twist.
10% on disruptive ideas: Dedicate a small but meaningful slice to bold, out-of-the-box experiments. These are moonshot projects with the potential to redefine the future of your business.

This model isn’t about abandoning what works; it’s about rebalancing priorities to make room for experimentation without risking the stability of your core operations. Need help figuring this out? Book a free call with us!

Storytime: A Tale of Two Teams

Let’s paint a picture. In early 2024, two companies in the same industry faced identical challenges: stagnant growth and an increasingly competitive market. Both engaged fractional operations leaders to guide them. One company clung to the status quo, tightening budgets and sticking to tried-and-true methods. The other embraced the 70-20-10 model.

By mid-2024, the second company had:

Optimized their supply chain (70%) to cut costs by 15%.
Introduced a subscription model (20%) that increased customer retention by 20%.
Launched a new AI-driven tool (10%) that, while still in its infancy, captured industry attention and opened doors to new revenue streams.

Guess which company entered 2025 with momentum?

How Fractional Operations Leaders Drive Experiments

Fractional leaders are uniquely positioned to implement and oversee this innovation model. They bring a fresh perspective, lean budgets, and a focus on measurable outcomes. Here’s how engaging our services can help you when it comes to experimentation:

Identify Core Strengths (70%)
Fractional leaders conduct operational audits to pinpoint areas for optimization. Whether it’s automating repetitive tasks or streamlining workflows, these improvements free up resources for innovation.
Expand into Adjacent Areas (20%)
Adjacent innovation requires a nuanced understanding of a company’s strengths. Fractional leaders can propose initiatives like new product features or complementary services that align with the company’s expertise.
Experiment Boldly but Safely (10%)
Moonshot ideas are high-risk, but they don’t have to jeopardize the business. Fractional leaders ensure these projects are low-cost pilots, such as running a limited trial in a small market or testing a prototype with select customers.

Setting Up Low-Risk Pilots

If 2025 is the year of experimentation, how do you get started? Here’s a simple roadmap:

Define Clear Objectives
What do you hope to learn or achieve? Clarity on objectives ensures that even “failures” yield valuable insights.
Start Small
Pilot programs don’t need massive budgets. Begin with a small test group, a single location, or a condensed timeline to minimize risk.
Measure and Adjust
Set measurable KPIs before the experiment begins. Use tools like Power BI or Airtable to track progress and make data-driven decisions.
Gather Feedback
Customer and team feedback are critical. Understanding what worked and what didn’t will shape future iterations.
Scale or Scrap
Not every experiment will succeed, and that’s okay. The goal is to identify which ideas have potential and scale them while letting go of those that don’t.

Why Now?

The urgency to experiment in 2025 stems from several factors:

Rapid technological advancements: AI, automation, and data analytics are leveling the playing field.
Customer expectations: Audiences demand innovation and personalization at a faster pace.
Economic pressures: With budgets under scrutiny, low-risk pilots allow companies to innovate without overcommitting.

A Culture of Continuous Improvement? We Think So

Experimentation isn’t just about new products or services; it’s about fostering a culture of curiosity and adaptability. By adopting the 70-20-10 model, businesses can safely navigate uncertainty while positioning themselves for sustainable growth. Fractional operations leaders play a pivotal role in guiding this process, ensuring that experimentation aligns with overarching business goals.

As we step into 2025, the question isn’t whether to experiment but how to experiment smarter. Are you ready to take the leap?

Why 2025 is the Year to Double Down on Experimentation