Our consulting and teaching experiences in industry have led us to conclude that if statistical methodology is to be effectively implemented in industry, the following prerequisites must be satisfied: (i) statistical studies of processes must be perceived as carefully planned systematic investigations; (ii) statistical techniques presented to industry must address their unique problems in a manner that is understandable to them; (iii) training must be done by professional statisticians with extensive industrial experience. This paper discusses our interpretations of these prerequisites and how we are assisting companies in meeting them through our work at the Institute for Improvement in Quality and Productivity at the University of Waterloo. In this paper, we have discussed whatwe believe to be the main prerequisites for the effective implementation of statistical methodology. The most important prerequisite is painstaking up-front planning and the allowance of sufficient time and resources for careful implementation; in many instances, it appears at industry is too busy putting out fires to take this longer-term view. If we can convience industry to take the time to plan their studies on a sound statistical basis, we shall have made a lanrge step towards the effective implementation of statistical methodology in industry, and thus to a dramatic improvement in quality and productivity.