Shipulski On Design

Archive for the ‘CEO’ Category

There are many definitions of product robustness and just as many formally trained specialists willing to argue about them. I get confused by all that complexity, I don’t like to argue, and I am not a specialist, I am a generalist. I like simplicity so I use operational definitions every chance I get. Here’s one for product robustness:

A customer walks up to your product, turns it on, and it works without breaking or getting in its own way.

Bad product robustness is bad for your brand. Very bad. Customers do not like when they pay money for a product and it doesn’t work, especially when they rely on those products to make money for themselves. And they remember the experience in a visceral way.

You can’t fix bad product robustness with great marketing; you can’t fix it with spin selling; you can’t tell customers you fixed it when you didn’t (since they use your product, they know the truth); and you can’t hide it because customers talk (so do competitors). There is no quick fix – it takes tools, time, training, and new thinking to improve product robustness. And when you do manage to fix it, customers won’t believe you until the see it for themselves. They don’t want to get burned again.

No product is infinitely robust, nor should it be. It doesn’t make financial sense. The product would be infinitely expensive and would take an infinite amount time to develop. But how much robustness is enough? An easier, and possibly more important, question to answer is – how much is too little? Or, stated another way, what is the minimum level of product robustness?

The specialists won’t agree with my assertion that there is a minimum threshold for product robustness, but I don’t care. I think there is one. I call this minimum value the brand-damaging threshold. Here’s an operational definition of product robustness that’s below the brand-damaging threshold:

Customers don’t buy your product because they know it breaks or gets in its own way and they go out of their way to tell others about it.

It is difficult to know when customers don’t buy, never mind know why they don’t. But there are some tell-tale signs that product robustness is below the brand-damaging threshold. Here are a few.

The CEO takes enough direct calls about products that don’t work to feel obligated to send you a thoughtfully-crafted, four word email saying something like “Fix that @#&% thing!” Customers have to be really pissed off to call the CEO directly, so the situation is bad. It’s also bad for a reason that’s closer to home – the CEO sent the email to you.

You get a little sick to your stomach when sales increase. You know you should be happy, but you’re not. Deep down you know you’ll see many of those products again because they’ll be sent back by angry customers, in pieces.

The volume of returns is so significant you create a refurbishment department. Or you create a new group to scavenge the reusable stuff off the piles of returned product. Not good signs.

Your product’s lack of robustness is the headline message in your customers’ marketing literature.

Now that the brand-damaging threshold is defined, the next logical topic is how to improve product robustness so it’s above the threshold. But that’s for another post.

Everyone laughs at the person who says “We don’t have problems, we have opportunities.”  Why do we say that?  We know that’s crap.  We have problems; problems are real; and it’s okay to call them by name.  In fact, it’s healthy.  Problems are good.  Problems focus our thinking.  There is a serious and important nature to the word problem, and it sets the right tone.  Everyone knows if the situation has risen to the level of a problem it’s important and action must be taken.  People feel good about organizing themselves around a problem – problems help rally the troops.

In a previous post on innovation, I talked about the tight linkage between problems and innovation.  In the pre-innovation state there is a problem; in the post-innovation state there is no problem.  The work in the middle is a good description of the thing we call innovation.  It could also be called problem solving.

Behind every successful product launch is a collection of solved problems.  The engineering team defines the problems, understands the physics, changed the design, and makes problems go away.  Behind every unsuccessful product launch is at least one unsolved problem.  These unsolved problems disrupt product launches – limiting product function, delaying launches, and cancelling others altogether.  All this can be caused by a single unsolved problem. Read the rest of this entry »

2009 is a tough year, especially for CEOs.

CEOs have a strong desire to do what it takes to deliver shareholder value, but that’s coupled with a deep concern that tough decisions may dismantle the company in the process.

Here is the state-of-affairs:

Sales are down and money is tight.  There is severe pressure to cut costs including those that are linked to sales – marketing budgets, sales budgets, travel – and things that directly impact customers – technical service, product manuals, translations, and warranty.

Pricing pressure is staggering.  Customers are exerting their buying power – since so few are buying they want to name their price (and can).  Suppliers, especially the big ones, are using their muscle to raise prices.

Capacity utilization is ultra-low, so the bounce-back of new equipment sales is a long way off.

Everyone wants to expand into new markets to increase sales, but this is a particularly daunting task with competitors hunkering down to retain market share, cuts in sales and marketing budgets, and hobbled product development engines.

There is a desire to improve factory efficiency to cut costs (rather than to increase throughput like in 2008), but no one wants to spend money to make money – payback must be measured in milliseconds.

So what’s a CEO to do?  Read the rest of this entry »