Customer-focused
Product Planning

Ask your sales, service, and support teams to tell you what
bothers them the most about new product launches at your
company. Are you regularly asking your sales people to sell
products that do not exist? Do you ask your sales people to
sell core products with no clear positioning message saying
why anyone should buy it from you?
Does your hot-line support team complain that the same
problems show up repeatedly with new products? Can they answer
the customers’ calls during the first few months after a new
product launch? Does your implementation services team gather
needs for custom versions of your product, tailored to meet
each client’s needs? Ask operations or IT if they have a
special meeting each Tuesday to decide how to support any new
products launched in the last week.
If you answered “yes”, your business may be suffering. You
may be wasting huge amounts of money in poor sales
performance. You may have larger than expected service and
support costs. Your operations or information technology
infrastructure may seem to be out of control. You may be
annoyed at each of these groups for these issues without
knowing where the troubles began.
Let us say you planned to open a new department store,
attached to a large shopping mall. Your architect and
construction company successfully put a building in the right
place. When the doors opened on the first day, visitors
entered the nice wide double doors. Nobody was there to greet
them. After finding the department for the items they needed,
nobody was at the customer service desk or cash registers. The
escalator to the next floor was in the back of the building
down a narrow hallway passed the rest rooms. Escalators do
take up floor space. There was no store directory.
An artistic sign that displayed your logo up in lights
masked the entrance from the mall on the second floor. Not one
person in the store had been trained on how do deal with
returns, or in-store financing. Nobody helped customers to
find their way through the wide array of products in all the
departments. The women’s shoe department was on the second
floor right next to the men’s shoe department. The cosmetics
department was in a corner next to the coffee stand. Where was
everyone? They were attending an emergency meeting to decide
what to do with the scuba gear that arrived for the men’s
department - in the middle of winter in Minnesota.
What kind of experience would shoppers have in this store?
How do your customers experience your product and your
company? Your engineering team may be very good, smart, and
creative. However, they must include every function that will
sell service and support the product planning process. This
includes planning, justifying investment, and developing new
products from concept to launch.
If they do not, you will more than likely be creating a
long-term costly mess. Then, while you spend precious time and
money to correct the mess, your reputation suffers making it
still harder to sell. Your top line will suffer from
difficulty in selling. Your bottom line will suffer from both
poor sales and inefficient operations and service. This wasted
time and resources on corrections are completely avoidable.
When designing your products or services, do you include
the customer facing groups in your company in that process? Is
there a well-defined process for them to contribute to new
product developments? These customer-facing groups support the
products and interact with the customer in sales,
implementation, hot-line support, day to day.
Their experience at servicing your customers plus their
system requirements should have a major influence on the
design for any new product. You may have a phased process for
managing the development of new products. The process may
include overt executive decisions after each phase to open the
gate to proceed with the next phase. For example:
Phase 1: New idea evaluation
- Is this idea
really worth pursuing? Does it fit with your strategy? Will it
pass the financial
hurdles
for your business?
Phase 2: Business Case development
- an assessment of
the market opportunity, competitive landscape, market
functional
requirements, resources and time frames required, and detailed
financial analysis
Phase 3: Design and develop specifications
- detailed
specifications and engineering resources and schedules to
validate the business
case
Phase 4: Development
- writing the code,
quality assurance and customer testing, implementation and
support
service
documentation and training
Phase 5: Launch
- organization
readiness including sales kits, promotional plans, pricing,
final updated
business case, sales plans
Phase 6: Life cycle maintenance and support
- customer service,
support, software updates, service and satisfaction reports
Many companies delegate this process to product managers,
business development managers, or even engineering managers.
These managers take on the task of driving a new product from
concept to market. Make sure that they are not the only people
– aside from executive review – involved in the development of
the requirements and of the product itself.
Engage sales, service and support, and operations in new
product plans in Phase 2, the business case phase. They should
provide requirements to validate market assumptions,
functional needs of the products to improve serviceability.
They should provide cost estimates to develop, launch and
support the product once it is developed. They need to
sign-off on the business case at this phase to assure their
requirements are addressed.
They should fully engage during the design, development and
launch phases to ensure the product itself meets their needs.
Further, they need to develop the tools, training, systems,
and plans necessary to launch and support the product. Their
sign-off on Phase 5, the launch, indicates they are satisfied
that the product is ready. That means their organizations are
ready to sell, service, and support the product.
Engaging these teams in this way will go a long way to
assuring that your products meet the needs and live up to your
customers’ expectations when launched. This will maximize your
ability to sell and support them at the same time – thereby
reducing time to profit. So, cancel the weekly emergency
support services meetings to try to handle the new product
surprises. Invite those teams to join in the planning process
and you will all arrive at the same place together at the same
time – with your customers!
Patrick Smyth is a leadership navigator and advisor to leaders
of high growth and emerging businesses. He creates compelling
visions and comprehensive strategic plans, and coaches on
effective leadership and management practices. He is a
recognized speaker, trainer, coach, and international business
strategist and author of the book Elephant Walk: Balancing
Business Performance and Brand Strategy for the Long Haul.
http://www.innovationhabitude.com |