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Learn From NPD Failures

The document discusses the importance of companies learning from product failures through post-launch reviews. It outlines the methodology of morbidity and mortality conferences used in hospitals to systematically review failures and determine root causes and improvements. Key aspects that enable learning from failures at companies like Intuit, 3M and Toyota are discussed.

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Samarth Lahoti
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51 views16 pages

Learn From NPD Failures

The document discusses the importance of companies learning from product failures through post-launch reviews. It outlines the methodology of morbidity and mortality conferences used in hospitals to systematically review failures and determine root causes and improvements. Key aspects that enable learning from failures at companies like Intuit, 3M and Toyota are discussed.

Uploaded by

Samarth Lahoti
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Akshay Palande – FT212007

Manu Singh - FT212048

Pallavi Ahuja – FT212056

Rajashree Agarwal – FT212061

Shakuntla Sundararajan – FT212074

LEARN FROM NEW Vikas Mishra – FT212095

Priyanka Murali – FT212102

PRODUCT FAILURES Himanshu Varma – FT212103

Bharat Saigal – FT213020

Samarth Lahoti – FT213072


Group 2 Kunal Madnani – FT214034
Companies lose out billion of R&D and marketing dollars every year
because of not learning from Product failures.

Product development success would be higher and far less risky if


companies would regularly analyze, widely share, and learn from each
Overview unsuccessful new venture.

This article describes the needed culture, process and steps to conduct
post-launch reviews from new product failures that closely parallels the
methodology teaching hospitals use to learn from their mistakes.
Century-old practice of conducting hospital M&M conferences began in
the early 1900s by Dr. Ernest Codman at Massachusetts General
Hospital.

M&M Physicians review unexpected patient outcomes and deaths - systematic


approach that utilizes the history, symptoms, diagnostic images,
pathology tests, autopsy results, prescribed treatments, and other
Morbidity and information to search for the root cause(s) results of an adverse patient

Mortality outcome.

They determine what went wrong and figure out what to do differently
next time.
By reviewing, M&Ms help the entire multidisciplinary team learn from
their mistakes and supply needed corrective actions.

M&M conferences model the professional leadership, safe culture and


processes needed for manufacturers to routinely learn from failed new
product launches

Why don’t bright, highly educated people in R&D,


engineering organizations and business units
regularly learn from their new product development
mistakes as teaching hospitals routinely do?
Why companies do not perform post-mortems?

• Time Pressure and Heavy workload


• Find no value in analysing the mistakes
• Lack of budget, people and resources
• Analysing the root cause is a complex process
• Lack of knowledge on how to conduct a post-mortem
review
● Failures are important
Learn From ● What went well
Product ● What went poorly
Failures ● What improvements are needed
Seven essential requirements for conducting a new
product post-mortem
Relevant experience: Have many years of hands-on experience
in NPD, ask right questions, identify symptoms, RCA, and make
recommendations.
Objectivity: Principal investigator must be a neutral outsider to
Post-launch
the project.
review
Customer-centric: Interview unhappy OEMs and end-use
customers, create an outside in-view to analysis and re-
establish the tarnished customer relationship.
Interviewing skills: Sharp listening skills and diplomacy when
raising questions about sensitive or negative outcomes,
observing body language and asking probing questions
Persistence: To schedule interviews and get people to share
documents and speak up about mistakes to collect evidence

RCA: Create chronological timeline of events and decisions


and find RCA to build a factual cause and effect report. This
Post-launch can also be used as a case for discussion.
review
Organizational and communication skills: orchestrate
scheduling interviews, collecting information, compiling
evidence and effective presentation of case and
recommendation.
Success factors for M&M conferences - 7 key factors
Selection of Cases to Review: The chosen cases should be
challenging cases with high risks and frequent chance of failures

Regular Reviews and Recent Cases: Meetings should be help at


regular intervals depending on the type of organization.
Corporate M&M
Standard Case Review Format: Standard format should be used
learning to collect,analyze and make recommendations.
conferences
Objective Case Analysis: Competent, independent and objective
investigator should be conducting the conference.

Safe Learning Environment: The conference should have a safe


learning environment so that a free flow of discussion can take
place.
Conference Leadership: Often CTO/VP of the company takes
up this role and is responsible for conducting a
constructive debate about sensitive issues.

Corporate M&M
learning Recommendations from each case: Principal investigator to
conferences state corrective recommendations regarding what could have
been done better.
● Software company that developed Quicken, QuickBooks and TurboTax
● Co Founder Scott Cook, encourages everyone to speak up about new product
glitches during and after the projects
● Engineers spend a lot of time observing and interviewing customers before
finalizing a design
● Engineers are also urged to voice their views firmly about unstated needs of the
customer
Performing M&Ms ● Cook encourages the design team to provide constructive innovation inputs but
at Intuit not to harm anyone personally
● Flattens the already flat organization by telling everyone to make new product
development mistakes and learn from them
● Conduct in depth post mortem process and document the mistakes to rectify for
the current project and avoid repeating
● Debriefing customers has given the management insights on shoddiness of the
front end work
● Ideology – Failure and near miss breeds success in new product development at
Intuit
● Technologists openly discuss their problems and mistakes across
departments, divisions and group lines.

● All technical teams are invited to the Technical Forum – fostering trust,
open dialogue, sharing, solving problems and discussing failures

● Many divisions present most recent technical or commercial challenges


Performing M&Ms
with hope to get suggestions and opinions
at 3M
● 3M encourages its employees to seek help beyond the boundaries of
departments and divisions and consult anyone they feel like in the
organization for their problems, as products belong to divisions, but
sharing knowledge belongs to the entire company
● Organically grown business for decades
● Foundation of success – Continuous learning from self and others
● Company belief – pilot everything first and assumes it wont get right in the first
try
● Learning is not separate from innovation and hence, there is no failure but
instead, deeper learning
● Hansei (Japanese for Reflection) Method – rigorous review after product
Performing M&Ms development action completed, to identify what when wrong at the end of every
project
at Toyota ● Engineers believe there is no Kaizen (continual improvement) without Hansei
● Hansei Meeting occurs at major milestones and after each automobile is
designed, made and launched
● Publicly feel bad and never make the same mistake again
● Acknowledgment is the first step to improvement
● Helps instil a culture of humility, learning and improvement everyday
• It is vital to conduct post-mortems in order to come up with corrective

actions.

• Create a separate team to develop 100% new products.

• Understanding the customers in detail and work on their unmet or


Recommendations
unfulfilled needs.
from Postmortem
• Up skill the new product development teams.

• Create value as per the data collected from customer interviews.

• Improve the reward systems to encourage efficiency and productivity.

• Develop robust solutions and involve the right partners when necessary.
Put Customers First: Customers as the primary reason any
organisations pursue innovation.

“The customer first” is at the core of the three companies

Common Senior Leadership is committed to Post Mortems:


Strong CEO leadership is mandatory to begin to create a
Threads at learning culture from reviewing mistakes.
Company Post “CEO can move values and create a learning culture if he
mortems wants to start the cultural change.”

Leave egos at home : In order to create a safe and


constructive learning environment, egos must be left outside
the M&M conference room.
Storytelling
Sustains the Let’s Wrap it up with few interesting stories
Learning Process

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