Imagine a workplace where taking risks isn’t just encouraged but expected. A place where employees feel empowered to share their bold ideas, their insights, and even their concerns without fear of being dismissed. It is a “culture of experimentation,” and it’s more than a trendy phrase—it’s a survival strategy.

As Steve Jobs said, “Innovation is the ability to see change as an opportunity—not a threat,” a crucial mindset for businesses looking to stay competitive in today’s rapidly evolving landscape. Fostering this kind of culture is easier said than done, so how can leaders create an environment where experimentation thrives?

Why Foster a Culture of Experimentation?

1. To Stay Competitive

In his article Building a Culture of Experimentation, Stefan Thomke describes how Booking.com stays ahead by continuously experimenting. They don’t wait for the next big thing to come along; they test and tweak constantly, finding out what works. In contrast, sticking rigidly to a plan without adaptability is like driving with your eyes closed.

Dan Rogers, CEO of LaunchDarkly, highlights this necessity, emphasizing the importance of integrating experimentation with the development process itself. He explains, “What if you could bring experiments and software features together, allowing product managers, marketers, and data scientists to have visibility and input into the process? Ultimately, though, the control over the feature remains at the software level.” This developer-driven approach keeps companies competitive, allowing them to test new features seamlessly and adapt quickly.

2. To Retain Top Talent

No one wants to work in a place where creativity feels stifled. A culture of experimentation fosters an environment of high trust, where employees are not just allowed but encouraged to make mistakes. This kind of atmosphere makes the work exciting, meaningful, and, quite frankly, a lot more fun. Companies that embrace this approach often find it easier to retain their brightest talent.

As Rogers points out, “Our notion of ‘How do you create experimentation as a mainstream culture?’ is to bring it into the realm where the feature resides.” This democratization of experimentation gives employees across departments—whether developers, product managers, or marketers—input into the process. By making experimentation more inclusive and accessible, businesses not only foster creativity but also create an environment where top talent wants to stay.

How to Create a Culture of Experimentation

1. Create a Psychologically Safe Environment

Imagine a meeting where everyone feels free to speak up—even if their idea seems a little unconventional. That’s the power of psychological safety. If your team is afraid of getting shot down, you’ll never unlock their full potential. Amy Edmondson, in her book The Right Kind of Wrong, notes how the tragic Challenger disaster could have been avoided if the right people had felt comfortable speaking up. Psychological safety is key to experimentation—people need to feel secure enough to take risks and learn from them.

2. Fail Smart, Not Hard

Failing smart doesn’t mean being reckless. It’s about taking calculated risks and learning from mistakes. Dan Rogers speaks to this mentality, saying, “Velocity and execution are key—maintaining a constant drumbeat of innovation, shipping software fast.” LaunchDarkly releases 60 to 70 updates daily, continuously testing and gathering real-time feedback. This rapid iteration allows them to “fail smart”—learning from small, manageable failures and improving quickly.

3. Make Data Your Best Friend

Experimentation isn’t about throwing things at the wall to see what sticks. Data should guide your decisions. Adam Savage’s quote, ““In the spirit of science, there really is no such thing as a ‘failed experiment.’ Any test that yields valid data is a valid test,”” underscores this idea. Large-scale experimentation only works when you’re measuring results.

The Double Competitive Advantage

Companies that embrace experimentation don’t just stay ahead of the competition—they also build teams that want to stick around for the ride. It’s like getting a two-for-one deal at your favorite store, only this time, the prize is both business success and employee retention. Who wouldn’t want that?