Design strategy and strategic design at Master Lock

Design Management Journal, Winter 2002 by Zaccai, Gianfranco

EXECUTIVE PERSPECTIVE

Master Lock has a new vision of its business and its customers, and design is a big part of this transformation. Interviewed by Gianfranco Zaccai, president and COO John Heppner explains how design has helped shift the company's focus from locks to security and innovation. In this process, Master Lock has established itself in new markets, extended its presence in existing markets, accelerated its competitive lead, and built an enduring relationship with customers.

John Heppner has been president and chief operating officer of Master Lock Company since January 2001. Since joining the company in 1992, he has served in positions ranging from corporate controller to executive vice president of sales and marketing.

Founded in 1921 by Harry E. Soref, inventor of the laminated padlock, Master Lock Company today is the world's largest manufacturer of padlocks and related security products and one of the most recognizable consumer brands in North America. Zaccai: Could you talk to us a little bit about Master Lock's vision for its brand and its products?

Heppner: Our brand is the number-- one asset that we have to leverage, so it's important that we grow and strengthen it. And we aim for consumers to view Master Lock as a brand they can feel good about and trust, so we consider as part of our brand promise the need to develop products that can be trusted. More specifically, in the past few years, we have focused on organizing our company into business teams that focus on end-user lifestyles and product applications for those lifestyles.

Zaccai: Is this a change from the way Master Lock viewed itself in the past? Traditionally, Master Lock has been viewed as a producer of secure, reliable hardware.

Heppner: Yes. Basically, we sold what we made: hardware. Now, we've moved beyond the perception of ourselves as a hardware manufacturer to become a brand that is focused on the security needs of consumer segments, such as automotive and sporting goods. But the brand promise-- trustworthy products-remains the same.

Zaccai: When Master Lock first engaged Design Continuum several years ago, you held the position of executive vice president of sales and marketing, and I know you were a major force for change. Could you elaborate on why you felt there was a need for change?

Heppner: Well, the reason I initially placed the call to Continuum was because our most immediate need at that time was to remain competitive at Wal-Mart and Home Depot. In the past, anyone could look at a Master Lock planogram [product merchandising chart] in a retail store, write down the SKU numbers, send the information overseas, and knock off our product at much lower cost. Those knockoffs were taking our space on shelves at many mass-merchandising retailers.

Clearly, our driving goal was to ensure that we had a planogram that included products that were protected with utility and design patents, which competitors could not imitate. We needed to create a barrier to entry. And, after all, as the market leader, we believed we should also be innovators. We have always wanted our brand to stand for security, but we also want it to stand for innovation. And that meant developing new and appropriately innovative products that would resonate with consumers.

Continuum addressed this situation by setting out to learn what security needs and concerns consumers have, rather than focusing solely on what they think about padlocks. We have embraced that perspective. As a result, we have developed innovative designs for padlocks and new functional applications for locks. And this has enabled us to occupy new product segments-like automotive.

Zaccai: Did that require a considerable organizational change or a shift in corporate philosophy?

Heppner: Yes, both. Padlocks have customarily been approached from a utilitarian standpoint. If you make the assumption that one size fits all, you can achieve efficiencies in manufacturing. But that is a very cost-focused path. I think we've proven that consumers will pay for design. They'll pay for innovation, and they'll pay for improved functionality, as long as it's directed to meet their specific needs. Basically, we've demonstrated that one size does not fit all, and that our product is not a simple utilitarian purchase.

Zaccai: How did this transformation occur?

Heppner: Continuum had helped us to identify key target markets and develop a design strategy for each segment. Continuum was in the process of developing innovative products for those segments when we decided to show the early design concepts to our customers-end users and retail buyers-and allow them to be part of the design process by incorporating their feedback into the development of the new line of products. This meant taking a risk. There's always a risk in sharing concepts, in that some of the information you share won't remain confidential. But the reward for us was gaining an understanding of how to change some of the paradigms in the lock category.

Zaccai: It's a process of design research combined with "making mistakes faster than anybody else." That means not just listening to what people are saying, but employing a deeper understanding of a product's users and buyers when creating a product. We did this by conducting qualitative research, analyzing the results, and then utilizing several iterations of illustrations, simulations, and rapid prototyping to test and expand hypotheses.