Instead of simply cutting prices, investigate your pricing structure as a customer discovery tool. Komatsu found it was overcharging for commodity parts and undervaluing unique IP. Realigning prices to match value perception and creating stocking strategies increased sales.
To change an unhelpful cultural norm inside a large company, don't act like a lone entrepreneur. The most effective approach is to build alliances before taking action. Gaining support from key stakeholders reduces personal risk and transforms it into a shared risk with a higher chance of success.
Komatsu uses a five-step decision tree: Safety, Law, Quality, Delivery, and then Cost (SLQDC). By making cost the final consideration, the framework ensures that product decisions prioritize long-term viability, legal compliance, and customer value over short-term savings.
To truly understand customer problems, product managers must practice 'gemba'—a Japanese term for 'go where the work is happening.' Physically visiting customers in their environment is crucial for uncovering genuine needs that lead to better products.
Product managers operate as internal ambassadors, responsible for outcomes like budget and sales but without direct authority. Success depends on building relationships and influencing functions like cost accounting, engineering, and other product teams to achieve shared goals.
When told 'no' to new hires, create a pro forma profit and loss (P&L) statement for your product. Use it to identify and quantify the monthly cost of specific problems, like bill of material issues, to make a compelling financial case for the new role.
To break down silos and build a strong culture, intentionally schedule and budget for team travel. Have engineers visit customer sites with field service reps and vice-versa. Getting people out of their comfort zones fosters collaboration and a shared sense of purpose.