You are probably looking at how the Vioxx recall controversy has evolved over last couple of weeks and wondering what a bunch of morons run Merck. Do not forget, however, that Merck used to be a great company and as recently as last month was ranked among the best for innovation. So what happened?
Rather than going outside to find out what is wrong with other corporations, just walk to the product development group in your company and chat with some of the engineers. American corporations have always been known for making defective, poorly designed products. Since speed has always been more important to us than quality, we often commercialize products that have not been fully designed. We don't want to wait till we perfect the product. No wonder customers have so many problems with products made in the United States. We are good at R&D but horrible at commercializing them and whether we want to admit it or not, this is the way of life in most American corporations.
This is not a major problem in nine out of ten cases. Microsoft is still issuing patches for Windows 95. We recall products so often that most of us never even hear of what has been recalled. When that happens with a product that can kill, that is when things get ugly. Think mesothelioma here. Dozens of companies literally disappeared or are not what they used to be. Many are still struggling to survive.
So the day is not far off that Harvard Business School will do a case on Merck and we will all tell stories of how a greedy group of Merck executives destroyed the company. Instead of admitting wrongdoing (for which evidence seems to be mounting), apologizing to patients and family members of those who are dead because of Vioxx, and moving on, Merck continues to engage in a game that is bound to result in its demise. The legal process will simply make some attorneys rich and delay the sad day by months/years.
So what can you learn from the Vioxx recall mess?
Rather than going outside to find out what is wrong with other corporations, just walk to the product development group in your company and chat with some of the engineers. American corporations have always been known for making defective, poorly designed products. Since speed has always been more important to us than quality, we often commercialize products that have not been fully designed. We don't want to wait till we perfect the product. No wonder customers have so many problems with products made in the United States. We are good at R&D but horrible at commercializing them and whether we want to admit it or not, this is the way of life in most American corporations.
This is not a major problem in nine out of ten cases. Microsoft is still issuing patches for Windows 95. We recall products so often that most of us never even hear of what has been recalled. When that happens with a product that can kill, that is when things get ugly. Think mesothelioma here. Dozens of companies literally disappeared or are not what they used to be. Many are still struggling to survive.
So the day is not far off that Harvard Business School will do a case on Merck and we will all tell stories of how a greedy group of Merck executives destroyed the company. Instead of admitting wrongdoing (for which evidence seems to be mounting), apologizing to patients and family members of those who are dead because of Vioxx, and moving on, Merck continues to engage in a game that is bound to result in its demise. The legal process will simply make some attorneys rich and delay the sad day by months/years.
So what can you learn from the Vioxx recall mess?
- Zero defect is not desirable in most cases and it is simply a matter of risk management what percentage of defects makes sense to your business. However, if your product can mean life and death choices, think zero-defect.
- Causing death deliberately of your customers (not even of one life) is not an option no matter what your risk management gurus are telling you. If some risk management expert throws some charts and numbers at you and tries to build a compelling case why X number of deaths are acceptable from a financial perspective, you not only need a new set of risk management experts, you also need to a crash course in business ethics.
- Great companies are not built on a foundation of greed. While Vioxx was a blockbuster drug, Merck executives knew as early as 2000 that it was only a house of cards waiting to collapse. So no amount of direct-to-consumer advertising or huge campaign contributions to the Republican Party would help in the long run.
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