Summary from the Front End of Innovation Conference in Boston, May 2007. .

David Swift, President, and Charles Jones, VP of Global Consumer Design, provided two consistent, but different perspectives on Whirlpool’s design strategy.

David Swift, President:

Design is what differentiates Whirlpool. It is inextricably linked to innovation and a strong contributor to revenues which have doubled in past six years. The design strategy is based on an expansive vision that Whirlpool should be in every room, every home, everywhere. Whirlpool has a wide range of brands manufactured and distributed worldwide.
Design is centralized, but integrates regional input.

About 1/3 of consumers have no brand preference when they enter a retail location. They focus instead on price in a commoditized the market. In the 1980s, the appliance section of any store was a “sea of white.” Whirlpool’s journey to differentiate its brands through innovation has three key areas: tools, processes and measurements.

Leadership looked outside the organization to locate and train people with new tools for discovery, synthesis and realization.

Discovery identified and evaluated discontinuities, core competencies, customer experience, economic engine and orthodoxies. Opportunities for innovation appeared when the focus on washers and dryers was reframed as fabric care. Similarly, the focus on refrigeration shifted to become management of the food stream.

Opportunities were distilled into action plans through briefs which outlined a path of rapid experimentation. Whirlpool brands serve distinct market segments. Careful attention to maintain clear brand differentiation avoids brand contamination (a major failure at General Motors).

Experimentation challenged existing orthodoxies. The purpose of experimentation was to validate concepts. Does the idea fulfill a consumer need? Does is contribute to brand differentiation? Is there a potential for significant return?

A business plan is generated for each product developed an includes a value prop and documentation of a compelling customer need. Further considerations explore the migration path or long range potential. One-offs or short range product lines generally do not justify the necessary investment. If all these criteria were successfully met, competitive advantage would be the logical conclusion. Additional considerations include development or availability of key relationships, understanding of risks and overall brand fit. Each business plan outlines the first 100 days of development to assure rapid movement toward clear objectives.

Visual aids in the form of concept boards, pipelines and evaluations which balanced loyalty and shareholder value also support rapid development. (See summary of presentation by Bill Buxton on the value of sketching, visualization and communication) The pipe demonstrates the intensity of Whirlpool’s innovation portfolio. The commitment to innovation is evidenced by an increase from $1.3 billion to $4 billion in potential new products between 1999 and 2008.

Chuck Jones: VP Global Consumer Design

Design encompasses more than industrial design. It is linked to architecture of the company and its marketing strategies.

Washers/dryers had been a replacement business. Consumers generally replace one at a time. By integrating radically different form, features and functionality, a new paradigm was created which increased washer/dryer combined purchases from 15% to 96%.

The new design, the Whirlpool Duet changed the perceived value of the laundry. Innovations include pedestals, work surfaces, fabric refreshers, and integrated cabinetry for iron and built in ironing board. This is an example of how reframing the view from washers and dryers to fabric care created a different understanding of the customer need and market opportunity.

Similar rethinking of garage storage areas spawned an entirely new business for a line of garage organizing units. Design thinking extended the KitchenAid brand from high end mixers to a complete line of gourmet utensils. Design was controlled from inside while manufacture was outsourced.

Whirlpool’s corporate mission is to expand expertise to move into other regions of the home. To accomplish this, senior leadership dedicates resources to look at future and to reward innovative thinkers to work on “what if” projects. What the future holds is kitchen systems designed around a new generation meal preparation needs and space utilization –rethinking form and functionality.

Design thinking maps unique spaces for each product without overlap. Form follows function. Brand architectures are created and defined to direct the design process. Whirlpool keeps itself honest with systemized tools to measure design outcome. This is deployed and leveraged on a global basis. No other company is doing this.

Risk taking is essential. The washer/dryer duet tests indicated a 30% rejection on aesthetics. Traditionally, that would have killed the product line. The remaining 70% loved it. At the time the product was developed, there was not much else in the pipe. Their risk assessment paid off. The process that has evolved from integration of design thinking at the senior leadership level has positioned Whirlpool with clear competitive advantage in the markets where they operate.

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