Whose Pain Is Most Important?

Hint: it’s not yours.

Here’s a -- to me -- fresh perspective on what to do about innovation in a down economy, courtesy of Michael Wedman, Associate Director of IT with KPMG, whom we met during a session on “Leading Innovation in Turbulent Economic Times” at the Creative Problem Solving Institute.  Perhaps it shouldn’t be a new way of looking at things, but it just slapped me across the face as a good articulation of what I wish I’d said.

In Wedman’s words, “Focus on customer core or pain -- Michael Raynor sees the downturn as a time to focus on the customer’s core rather than the company’s core. This is counter to the traditional reaction of hunkering down and becoming introspective – sometimes overly so – in times such as these. Frey and Callahan make the point that, ‘Customers always have problems to solve, even in a downturn.’ Choosing to focus innovation on customer pain has a couple of positive impacts for an organization. First, there is the obvious ability to increase revenues through the introduction of highly targeted products. This is similar to the ‘less [of an offering] for less [money] strategy,’ but differs in that it is not necessarily directed just toward customers whose only other option is nothing. Second, an external focus provides a more hopeful outlook for employees, providing them with the opportunity to help customers as they face their own challenges.”

Another way to say it is, stop worrying about what you’re going to do, and start worrying about solving your customer’s needs.  To quote Cecil Day, the founder of Days Inn Hotels when asked for advice to give those who wanted to make a lot of money, “Find a need, then fill it.”

 It’s still good advice no matter what the economic outlook.  What's your best advice for success in a tough economy?