06.20.08
My Favorite Companies: Apple, Southwest and Toyota
Topping my list of favorite companies are Apple, Southwest and Toyota. Why? Because they unerringly meet my expectations. That is what I expect out of a company, whether they insource everything or outsource everything.
What makes these companies great? Top quality products, for sure, but there is something else beyond the quality of their products that comes into play. It’s a sense of fit-and-finish to their products, I think, that takes them to the next level.
Apple is legendary for this. An Apple product simply works well - it is consistent, has a great look-and-feel, and allows the underlying product to become an appliance that fosters creativity. It is truly amazing how their products are engineered to allow the customer to better enjoy the media that runs through them.
Southwest is also legendary for producing a product, in this case air travel, that is a cut above the other carriers - at least for me. Because I’m not a €œPlatinum Level Frequent Traveler, I don’t often get to enjoy the higher-end service that used to be offered by the domestic carriers. However, what I don’t enjo€ is the feeling of being a second-class citizen on their aircraft, crammed into seats that are too tightly packed, treated rudely by gate staff and in-plane staff, etc. On Southwest, I’ve never had that feeling - and sitting here at the airport in Las Vegas - I still don’t. Southwest has always been a class act - and in these days of troubled times, their class is shining through.
Toyota has been dominating car quality and popularity statistics for years. Why? I think, honestly, it is because their products - from the lowly Yaris to the Lexus LS - feel like they’ve actually had someone look at the product after design was complete and smooth out the rough edges. U.S. designed vehicles have rarely had that feeling, with options either bolted, or vast areas of plastic switch covers which remind you that the options aren’t there. Remember the old Chevy Bel Air from the 60’s? It was like an Impala, but instead of three light taillight clusters (two running/stop, one reverse), it had two light clusters. Get behind a Bel Air and you knew that the driver opted for the €œcheapo€ version.
What are the commonalities? In my mind, Apple and Toyota spend that extra time post-engineering their solutions - making sure that the pieces fit together as a coherent whole. Southwest and Toyota avoid blatant class distinctions - while still maintaining some stratification. Apple and Southwest excel in focusing on the user experience - clearly evaluating their products and cultures from their customer’s perspective.
What does this have to do with outsourcing? Each company outsources large percentages of its activities - Apple products are made in China, Southwest’s jets are maintained in Latin America and Toyota offshores to the US to build a large percentage of its products. It is clear that outsourced production can, if guided correctly, produce quality results. The trick is that guidance - and it is the standard that we must all strive for.
Once companies begin to build that level of quality into their operations, be them insourced or outsourced, the true value of outsourcing - which is bringing the best and brightest minds to work on business problems - will begin to be seen. Until then, we may continue to feel like the companies we deal with treat us like second-class citizens or worse.
