By David Taber.
It’s 1966, and the largest car company in Europe is looking to create an
inexpensive, fun sports car. They own the biggest single automobile plant
in the world, so manufacturing won’t be an issue. They have Pininfarina
under contract, so styling will be clean and sexy.
The Spider hits the market at a price below most competitors, with a solid
marketing campaign and good global distribution. It sells pretty well and
is a cool car for 20-somethings not suffering from testosterone poisoning.
They got 1000 things right with this product — the convertible top
mechanism should have won a Nobel prize — but they got one thing wrong. It
was made by Fabbrica Italiana Automobili Torino — a company that customers
called “Fix It Again, Tony.”

This month, we’re not looking at
href=”http://www.taberconsulting.com/download/dtr-18.htm”
target=”_blank” class=”offsite-link-inline”>branding or
href=”http://www.taberconsulting.com/download/dtr-42.htm”
target=”_blank” class=”offsite-link-inline”>market timing: it’s about product design.
What’s Old is New Again
Whenever innovation provides a competitive edge, great designs (and quick
tweaks) will yield way more profits than you can get once a product category
is mature. In the early 80s and 90s, the high-innovation market was
hardware. In the late 90s, it was software and the internet. Today,
product design — and design errors — have come back as important issues
for hosted services, web 2.0, and open source products.
Product Design is at the core of the Product Management function, and it
permeates conversations between Marketing, Engineering, Executives and
Sales. As with the FIAT Spider, the market gives you very few points for
all the things you got right, and hits you hard for the one or two things
that went wrong. So it pays to put quality time into this.
Of course, a great product design can’t happen unless you know who the
href=”http://www.taberconsulting.com/download/dtr-15.htm”
target=”_blank” class=”offsite-link-inline”>customer is, why they really
href=”http://www.taberconsulting.com/download/dtr-13.htm”
target=”_blank” class=”offsite-link-inline”>need it, and how much they’re
href=”http://www.taberconsulting.com/download/dtr-16.htm”
target=”_blank” class=”offsite-link-inline”>willing to pay. Read the linked articles to get ideas
about product strategy. Assuming you got all that under control, it’s time
to examine product design.
At the executive level, product design decisions manifest themselves as a
series of tradeoffs, budgetary and schedule allocations among:
- Features
- Ease of Use / OOBE
- Performance
- Scalability / adaptability / robustness
- Quality / fit-and-finish
The problem is, these choices usually present themselves serially, along the
lines of “do you want feature X, or do you want to delay the launch?” This
is a false choice. The trick is to look at these five as a simultaneous
equation, trying to optimize the five domains of the product goals against
the five possible cost areas (budget, time, market size, team morale, and
company reputation).
When Design Really Matters

I hate to sound like a New Age throwback, but upper management needs to look
at product design and resource allocation decisions holistically, not
hierarchically. The whole company produces the product and the customer
experience, not just one department.
An
href=”http://www.taberconsulting.com/shared/images/newsletter/awards.gif”
target=”_blank” class=”offsite-link-inline”>award-winning product does not need to be best on the
planet along every competitive measure (indeed, it is quite unprofitable to
even attempt this). Instead, management should be looking for the optimal
tradeoff where the product is good enough for most every expected use, and
world beating for at least one important use case. As I
href=”http://www.taberconsulting.com/download/dtr-13.htm#Xtreme”
target=”_blank” class=”offsite-link-inline”>wrote earlier, products need to be developed around a
coherent thesis that evolves incrementally. The product description must
not be a requirements bible, a tome written by marketing and read by nobody.
Instead, use an evolving document where key product team members insert
incremental contributions throughout the design cycle. Three-ring binders
and this stuff called paper are amazingly effective.
So how does an executive team know if this kind of iterative, flexible
product development process is in place? Here are some questions you can
ask to assess the health of your product development team — and the success
of your product design — long before problems surface:
- Product development team membership: is someone from customer
support or sales on the product development team? They needn’t attend every
meeting or review every document, but they can’t be out of the loop, either.
Ideally, an early customer acts as a design partner both for the product’s
features and its commercial aspects.
- Product development team trust: do the members of the team
actually work together, or are they adversaries? Generally speaking,
product management should have 51% of the vote on the team…but the product
manager will have to earn that trust through good decisions. Healthy debate
is a good thing, but if you ask a team member why a decision was made and
hear something along the lines of, “those jerks insisted,” there’s probably
trouble. In the extreme, engineering and marketing are at war…and the
company is the loser.
- Bugs, board revs, and chip spins: nothing is worse for a
product schedule than
href=”http://www.taberconsulting.com/download/dtr-22.htm”
target=”_blank” class=”offsite-link-inline”>unanticipated rework. If the team (or management) is in
denial, it’s deadly. Ask whether a lot of bugs have been re-prioritized
(either their severity or priority), or testing skipped, or simulation steps
deferred until after tape-out. Any hint of these maneuvers does not bode
well for your product design or its implementation schedule.
- Multiple realities: for any one product, there should only be
one feature list, one set of release/launch criteria, one set of benchmarks,
one bug list, and one schedule.
- If there isn’t one of each of the items above, you’ve got a
problem with engineering or marketing maturity. Very young companies have
an excuse. But fix this situation no matter what.
- If, on the other hand, there are more than one of any of the
above items (like “the official bug list and the engineering bug list”)
you’ve got a severe organizational disconnect. The first thing to do is
outlaw fiction, and find out what’s true. Watch out for
href=”http://www.taberconsulting.com/download/dtr-32.htm”
target=”_blank” class=”offsite-link-inline”>weenie behaviors. You will rapidly uncover other
problems from the overall list.
Rectifying problems here may mean a reset to the schedule or a change
to your product expectations — but delay will only make things worse.
- Big bonus syndrome: big incentives can improve team
performance, but can distort good judgment. If an executive has $100K or
more on the line, he is all too likely to ship garbage. This can kill a
product, a product line, or a whole company reputation. Restructure the
bonus so it’s contingent on product profitability, including the costs of
excessive customer support.
- Come-from-behind syndrome: when most companies are trying to
recover from a tarnished reputation, it’s really hard for the customer to
believe that your new product will pass muster. Negative branding is in
play. This is what happened to FIAT (the Spider had good relatively good
quality, but nobody would believe it) and is happening now to GM (their new
designs are pretty good, but nobody notices). There are some companies that
can pull off come-from-behind product victories (think Microsoft), but it
takes tenacity and real patience.
- Incomplete product syndrome: engineering says the product is
done, marketing says it’s not so sure, and sales says they can’t sell a
product that isn’t complete. This is a really common problem, and causes
blatant political behaviors on all sides. Unfortunately, the big political
implication is that upper management has not been sufficiently involved with
the product or its customers. The fastest way to solve this is to involve
customers in candid product reviews where upper management is present…and
in listen mode.
- Guess-wrong syndrome: has marketing or engineering gotten
something completely wrong in the product design? Guesses and assumptions
are part of any innovative process, but if marketing completely
misunderstood what customers meant, or if engineering misinterpreted the
requirements and designed something nobody would want, you’re out of tune
with the customer. Either the team is missing domain knowledge is missing,
or they are not actively listening to customers.
- Wild product positioning: somebody (maybe an airhead in
advertising, maybe a pointy-haired executive) has come up with product
positioning or messaging that simply is not believable outside of your
offices. For political reasons, Sales may actually use the marketing
message, but with poor results. The product design is blamed for not
complying with the unrealistic product positioning. But marketing is not
about making fantasies true, it’s about making the truth interesting and
motivating to a customer. Bring positioning back to reality by talking with
customers.
- In software companies, infrequent builds: there is no
substitute for doing a build of your entire software system on at least a
weekly basis, with incremental builds every night. Ask around — if a
system build takes a week or even longer, and making the system fully
testable requires heroic efforts, you’re on the road to big problems.
Invest in automated build infrastructure and establish real schedule
expectations.
- In IT companies, can’t eat the dog food: sometimes, you’ll
find that your internal operations people won’t use early releases of your
software or hardware. This means they aren’t willing to bet their jobs on
your quality, performance, or features. Using the product internally in
Marketing and company operations should be a hard requirement. Fixing this
means reforming both engineering quality and your internal operation’s
practices.
- In high-tech products, user interface: whether it’s a GUI, an
instruction manual, or a web site, user interface mistakes are like a bad
haircut. You just can’t hide them. Nothing will make users angry more
quickly or raise your product support costs more dramatically. Don’t
economize on your product’s installation, upgrade, or “OOBE” — out of box
experience — if you want it to be a hit. This can have the biggest payoff
of any product investment you can make.
Contents copyright 2006 by DOTnet Consulting, Inc., all rights reserved.
From
target=”_blank” class=”offsite-link-inline”>The Taber Report.