Hudson Valley businesses can and must acquire information in many ways. Demographic studies gather facts such as how old the customer is, where they live, income, what their buying habits are and so on.

People often have hidden needs, opinions, and preferences that even they may not understand. When using products or services, people often work around problems or employ them in innovative ways that they would find difficult to put into words.

L.L.Bean has developed a group of customers to whom it sends new products. Researchers then take them on hiking trips, spend hours in their homes, and question them endlessly about their habits and preferences in search of better product ideas.

Xerox had a similar experience when asking people how they used copiers. The survey answers matched the instructions nicely. Direct observation gave a rather different picture, including a rich variety of informal practices that turned out to be crucial to getting the job done.

Honda sent a design team to Disneyland to watch people in the parking lot use their cars. Hoover gave vacuums with timers to people in order to discover how much time they “actually spent” vacuuming: not as much as customers said…it turns out.

Milliken, a textile company, sends “first-delivery teams” with products to follow them through the customer’s production process and see how the products are used, pose questions, and develop ideas for improvement.

While people learn through active experience, the best lessons are learned when people are given time to reflect on their experience. Unfortunately, many managers view reflection as incompatible with work. This prevents the people who have gained experience from making the jump to implementing the lessons.

Hudson Valley businesses must realize that people learn from what went wrong. IBM’s Stretch computer was a failure, but the lessons learned from it led directly to the company’s most profitable 360 series.

Microsoft depends on single-case studies to glean valuable lessons. After every software release, team members spend three to six months conducting a “post-mortem analysis” that reviews every aspect of their work and makes recommendations for the future. Such analyses are sharply self-critical, but as a result, they are highly effective.

Boeing had serious problems with the 737 and 747 models, and created “Project Homework” to compare the new aircraft series with the previous one. The project lasted three years and was well worth the investment. Boeing introduced the 757 and 767, the most successful launches in the company’s history.

By putting an effective performer under the microscope others can discover distinctive tools and techniques that enhance his performance. After creating a program aimed at disseminating such “best practices,” Bell Labs experienced a 25 percent improvement in productivity in a single year.

In spite of all benefits, the review processes take place after the fact. Errors have already been made. Games and role-playing can provide valuable simulation. Polaroid had employees play Kodak, Fuji, and PGI and instructed them to come up with an unexpected technology that would blindside the market. The results caused several changes in product positioning.

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