Boeing's Need for Experience Custodians: Lessons from Zappos
Written on
Understanding Boeing's Challenges
Boeing has recently faced significant scrutiny, stemming from two tragic crashes in 2018 and 2019 that claimed 346 lives. This turmoil continued into 2024 with several alarming incidents, including a severe emergency landing by Alaska Airlines due to a critical failure involving missing bolts, which resulted in a dangerous hole in the aircraft.
The Boeing 737 MAX has been at the center of these controversies. Bill George, an Executive Fellow at Harvard Business School, highlights a series of misguided decisions that contributed to Boeing's ongoing issues. The acquisition of McDonnell Douglas in 1997 marked a cultural shift, emphasizing cost-saving measures over engineering integrity. In 2001, moving the headquarters to Chicago distanced executives from engineers, leading to further complications.
Boeing's focus shifted under subsequent leadership to maximizing profits from existing models rather than innovating new designs. The decision to prioritize short-term gains over long-term safety culminated in significant setbacks, including regulatory scrutiny and reputational damage.
Section 1.1 The Cost of Short-Term Thinking
The repercussions of prioritizing immediate financial returns have been profound, resulting in an estimated $87 billion loss for Boeing's investors since 2018, while Airbus thrived in the marketplace. Boeing's culture shifted to focus on stock prices rather than ensuring safety and quality, as seen with the 787 Dreamliner project, which faced extensive delays and massive budget overruns.
Section 1.2 The Importance of Customer-Centric Approaches
The narrative around Boeing serves as a cautionary tale of leadership failures and the dangers of neglecting customer needs. Organizations often fall into the trap of relying solely on financial metrics, sidelining the voice of the customer. While product owners may track customer engagement statistics, they risk missing the full picture without integrating qualitative insights.
Roger Martin, the author of "A New Way to Think," argues that companies should prioritize customer satisfaction over shareholder value. This shift can drive better decision-making and sustainable growth.
Chapter 2 Lessons from Zappos
Boeing could learn valuable lessons from Zappos, a company renowned for its customer-centric philosophy. Tony Hsieh, the late CEO, emphasized the importance of creating meaningful connections with customers, stating, "What do we want to be when we grow up? Do we want to be about shoes or do we want to be about something bigger and more meaningful?"
Zappos's commitment to customer service has set industry standards. They eschew outsourcing, preferring to cultivate a customer-focused culture. Their innovative policies, such as free shipping and 24/7 support, have transformed expectations in e-commerce.
In one notable instance, Zappos demonstrated their dedication to customer care when they sent flowers and a condolence note to a customer who returned shoes after her mother's passing.
Section 2.1 The UX Philosophy at Zappos
Critics might argue that Zappos’s practices are unrelated to UX/UI design, but a closer examination reveals transferable principles. Just as digital interfaces serve as touchpoints, so do customer service interactions. Zappos's approach showcases the importance of creating a cohesive experience across all channels.
As a testament to their success, Zappos achieved $1 billion in gross merchandise sales by 2008, leading to Amazon's acquisition of the company for $1.2 billion in 2009. Hsieh's philosophy of prioritizing positive human experiences, devoid of profit as the primary motive, fosters loyalty and enhances customer lifetime value.
Conclusion: A Call for Experience Custodians
To cultivate products that resonate with users, businesses must adopt a custodian mentality, viewing their offerings as shared responsibilities rather than solely ownership. The term "Experience Custodian" aptly describes this role, focusing on protecting and enhancing customer experiences.
Boeing has much to learn from Zappos's model of integrating customer feedback into decision-making. Embracing a people-first approach can pave the way for companies to thrive in a competitive landscape, ensuring that both customer and employee experiences are prioritized.