Herman Miller, Inc. & US Robotics: Different Paths to Successful Innovation

by John D. Trudel, Certified Management Consultant

In a world of many theories some faddish, some conflicting - about how business should work, the Outstanding Corporate Innovator Award grounds us in reality. We work backwards, taking what works and learning how. We take companies delivering excellent business results and screen to see which of these focus on innovation. Then we examine the finalists on-site and in detail to see how they do it. As examiners we scrutinize what is working to find learning examples. We look for good stories to tell our membership.

Paradoxes abound. There is constant tension between "innovation" and "consistent." In general we learn that judgment matters a lot. Metrics help, but sometimes they cause harm. It's the same with process. People help, but it is also legend that "to err is human. "

Investment firms warn us, "Past performance is no assurance of future results." Still, wise investors look at the track records of funds before they commit money. Looking at past OCI awards teaches a similar lesson. Though most winners have prospered, a few have not. That's good to know: innovation is a journey, not a destination.

This year we had two winners from very different industries with very different stories to tell us as they accepted their awards.

One was Herman Miller (HMI), an old line furniture company (1923), now the "Leading provider of Products and Services for the Work environment." Seeking growth, they moved from residential markets to office furniture in the 1940s and 50s.

Later HMI invented the cubicles made popular, if not notorious, by the "Dilbert" comic strip. Their products combine form and function. Today 35 HMI products reside in the Museum of Modern Art. The firm has grown from $13 million in 1967 to $1.5 billion in sales today.

Representing HMI, Don Goeman, New Product Development Vice President and Kenneth Munsch, Director, Product Portfolio Group, noted that "Product Development is a Messy Process." To cope, they use the normal tools - process maps, product positioning, strategic plans - and admit that things sometimes go wrong. They adapt to change through "tenets" like formal project commissioning, team-based management, and team-led process. They use methods like phased development (stage gates) and customer-based validation of concepts. Concurrency is stressed, as is the use of alternate processes and modern CAD tools.

HMI says their tenets form a foundation, serving as a compass through the chaos of innovation. They conclude that "Innovation is a response to social change."

In contrast to HMI's approach, U.S. Robotics (now a division of 3Com), depends on "the X-factor," cultural norms, for new product success. USR has also had to migrate and adapt. They started as a modem company and distinguished themselves by being consistently first to market with the next generations of products.

Today they have moved beyond that to "Products for the Edge of the Net." Their offerings span modems, control hubs and "edge-servers" to new category-defining types of products like their popular "Palm Pilot." USR pushes technology limits constantly, with a new focus on products to allow real-time applications (audio and video) over a packet-switched Internet that is generally hostile to real-time.

Accepting the OCI Award for USR, John Manzo, Vice President of Research and Development observed that USR wins by applying leading-edge technology quickly to serve and even create new customer needs. They admit to making occasional mistakes, even over basics. For example, a learning experience from their successful "X2" modem line was "teams should formally be formed up-front." Still, USR wins though culture, not process or methodology.

Their culture emphasizes things like "one company, team empowerment, a willingness to take big risks, and unusually high level of employee pride and empowerment." They speak in metaphors like "killer bees," where all drop what they are doing and rally to defend the nest. They speak proudly of a "rabid dog" approach to satisfying commitments.

USR's culture rewards tenacity, resourcefulness, fleetness of foot, and obstacle annihilation. USR is about "making it happen" in high uncertainty environments. They encourage fast decision making, flexibility, agility, and routine questioning of "truth." Senior management sets goals, coaches, and prods, but sees itself as working for the team. Process is to serve, not rule.

Each winner is distinctive. Though "one size does not fit all," most firms and most practitioners can learn something from these companies to improve results.

              John D. Trudel is an OCI award examiner and judge

Ken Munsch (HMI), John Manzo (USR)

John Moran (OCI Chair), Don Goernan (HMI)

PDMA Visions January 1998 Vol. XXII No. 1

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