Tough Business Conditions Lead to Serious Questions

By Ken Westray, PE, NPDP

Your Career, Your Dollars

Here we are in the last month of the calendar year.  Amid the festivity of the upcoming holiday season, dimmed somewhat by the overhang of tough business conditions, serious questions present themselves to us. Where have we been?  Where are we headed? And how do we keep our bearings along the way?  As new product development professionals, now is the time to face these questions in the context of our everyday experience.

Where We’ve Been

I would nominate the Apple iPhone 3G as the product of the year for 2008.  Think back to the release last summer and recall the lines of excited buyers.  In fact, Apple sold one million of these units in just three days after its launch on July 11.  The product was available in 21 countries at launch and others followed soon afterward.

Apple understood the needs of the market and was able to translate those needs into a solution the market eagerly adopted.  Its distribution and marketing arms performed no less flawlessly.  The net result was a textbook success story.

Where We’re Likely Headed

Are we likely to see another success story of this magnitude?  Success story – yes.  Of this magnitude – probably not. Anecdotally, I’m aware of companies that have cut travel altogether from their fourth calendar quarter 2008 budgets.

People and businesses are going to be far more reluctant to part with their dollars, yen, or euros in the coming year.  Expect customers to be much more demanding of suppliers to provide a compelling case for them to spend money.  In many cases, businesses may have only minimal dollars to spend this coming year.

Going back to the iPhone, would the same type of campaign succeed in 2009?  Probably not in my view. The iPhone could be viewed either as a status symbol or a technology upgrade. If so, the coming year will be about making do with what is available and not parting with cash unless a step change in improved performance is available for only incremental cost. However, the Blackberry STORM produced long lines and a back order condition. 

Job Security

Earlier in my career I spent time in sales in the Detroit, Michigan area. The influence of the auto industry was everywhere.  New model introductions were exciting and I recall the epic negotiations that occurred at contract negotiation time between the UAW and the various auto companies.

One of the major issues that the union pursued was “job security.” It wanted the automakers to provide its membership with “job security” so they would have jobs in future years.  The contracts got done, the workers got their hourly increases, and new cars became progressively more expensive.

Think how dramatically the fortunes of the auto industry have waned over the years. Consider that the CEOs of GM, Ford and Chrysler recently appeared before Congress seeking bailout protection and emerged empty handed.

To be clear, I’m not castigating the union or automakers but I wanted to make a point about “job security.”  It is not something that comes out of a collective bargaining agreement. Rather it accrues from the application of a series of skills that regularly add value to a business.

Keeping Our Bearings – Surviving Tough Times

How about individuals?  How do we acquire or retain “job security”?  I would suggest that differentiating ourselves in a positive way from those around us is at the heart of a viable survival strategy.  One of the major differentiators in our profession is New Product Development certification.

As a disclaimer, I’ll fess up to being a provider of these services.  That said, there is still a solid business case for NPD certification.  The Product Development Management Association (PDMA) certification program focuses on strategy, customers and cross-functional teamwork and other key factors.  Acquiring and using these skills is a very clear and effective way for individuals to stand out from the rest of the pack. The people with those skills see a broader spectrum and can interact effectively with both company colleagues and clients.

In the title of this month’s article, I was trying to suggest two concepts.  First, to hold on to one’s career will demand a strategy for differentiation.  The skills that professionals acquire in the certification process provide them with both differentiation and credibility with their clients.  Second, there will be increasing pressure for business people, especially NPD professionals, to measure their performance in an objective way. This often comes down to how much we generate in revenue for our companies.  NPD professionals grow accustomed to this type of challenge.

If you are already a certified professional, accept my congratulations for your efforts to develop these skills.  If not, I’d recommend that you consider the value of enrolling in a certification program.

If you are certified and not currently involved in the activities of a PDMA chapter near you, let me encourage you to join one.  I understand how business travel can make it difficult to attend all meetings.  At the same time, I would suggest to you that one of the best ways to leverage your learning is to work with others in PDMA.  It’s an opportunity to nurture relationships with those new to the field and also to learn from those who have demonstrated a record of success over time.

Please accept my warm wishes that the upcoming holiday season may be a bright one for you and your loved ones.  More importantly, may the coming year be one of opportunity and success for you – both personally and professionally.