"In physics, the term observer effect refers to changes that the act of observation will make on the phenomenon being observed. This is often the result of instruments that, by necessity, alter the state of what they measure in some manner."
For example, measurement of the properties of electric current requires attachment of some device to the circuit being studied. The presence of the device in the circuit changes the characteristics of that circuit, which affects the properties of the current being measured. A casual observer can see, for instance, a battery connected to a light bulb by a few wires, which may be interrupted by a switch. But ammeters and voltmeters are necessary if one is to understand the hidden electronics of the system.
What does this have to do with a start-up business?
Buried under any observable strategy are numerous assumptions about marketplace size and expected behaviors. These assumptions commonly vary in validity from widely observed and accepted statements of fact to casual hunches. The number of people in a developed country, for example, is reasonably well known and reliable. The number of them who may have a compelling need for a particular product is much more difficult to measure.
Open-minded and thorough questioning of the validity of strategic assumptions is almost certain to induce a change in the overall launch strategy. Weakly validated assumptions are extremely dangerous. They may be, in fact, correct. But what if they are not? What if their opposites are true?
Serious questioning of founder assumptions is one of the most powerful services that can be provided by Mentors - another reason why Mentors are one of the Four Fundamental Factors. It amounts to a deliberate application of the "observer effect." In the case of a pre-launch business plan, encouragement of change in the system through measurement of underlying properties is a really good idea.
It is almost guaranteed to reduce risk.
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