A technique is suggested for designing an interacting multi-variable system which minimizes the m.s.e. and sensitivity simultaneously, when perturbations in system parameters are considered to be random in nature. Design procedure for non-interacting multivariable systems is suggested which gives a system with minimum m.s.e. and sensitivity, and also ensures that the final system will have the desired stability margin. A sufficient condition is derived, when a closed-loop system will exhibit better performance than an equivalent open-loop structure.