What I learned from Milton Hershey about Product Development

When looking at Product Development practices, I’m reminded that history has shown us ways to succeed as well as how to certainly fail. Specifically, I admire the vision and strategy that Milton Hershey had for his business. While we can learn from his successes, we can also learn from his failures, and how he faced them. Much of what he did & how he did it still holds true today, and that fascinates me.

Rule # 1: Think Outside the Box

When I started making chocolate, I didn’t follow the policies of those already in the business. If I had, I would never have made a go of it. Instead, I started out with the determination to make a better nickel chocolate bar than any of my competitors made, and I did so.

Milton Hershey had a clear vision for his product and his company that he was able to use to guide his decisions.

He was also not afraid to innovate, in fact, he knew it was necessary. He didn’t just do something different for the sake of being different, he had focus on what he was going to do in order to stand apart from his competitors, and why. He knew his competitors’ products, and he knew he needed to satisfy his customers with something of better quality for similar cost.

This focus allowed him to achieve his goal.

Having a clear vision for your product is not a new concept, looking through history we can see the companies and products that have stood the test of time add value and satisfy a real need.

If you don’t know what your customers want and why they want it, you are just creating something to sell and will eventually fail.

Rule # 2: Perseverance

Milton Hershey received this particular piece of advice from his mother that we can see come through in just about everything he did:

When you tackle a job, stick to it until you have mastered it

Before Milton Hershey found success with his caramel business, he faced 5 major failures with previous attempts. But with perseverance and dedication to his vision, he was finally successful. This success made him a millionaire, and allowed him to focus his attention to his true passion and what he believed was the future, chocolate.

But before moving to chocolate he finally mastered the job he originally set out to do with his caramel business.

How many of us give up on our vision when times get tough, or think we just can’t figure out the winning combination, and abandon something that we believed in so strongly at one time?

Even after moving to milk chocolate, Milton Hershey struggled to find the right recipe that would allow his chocolate to last longer while using fresh milk that increased the quality of the product. He didn’t move away from the fresh milk as an obstacle, because having it aligned with his vision of making a better chocolate bar than his competitors. Of course he finally figured it out, and the rest is history.

However, imagine a world where he did not have the courage to face failure and learn from each one. What would the history of the chocolate industry have looked like without his drive to overcome obstacles and become successful? What would the world be like for the many underprivileged children that his school (paid for by said chocolate) provided opportunity for if he did not believe in himself and his mission? As a beneficiary of that school and the life lessons that I learned there, I for one would not be here writing this today.

We don’t always know how what we create will impact the world around us, but if we push through failures along the way and learn from them, we have a much better chance of finding out. Some of the best feelings for a Product Owner are seeing your vision come to life and be used by the customers that you had in mind, along with those that you never imagined. Seeing your creation add value provides a sense of accomplishment, and it is even sweeter when you have worked hard and pushed through to get it there.

Don’t give up, persevere and get your product out there if you believe in it!

Rule # 3: Hard Work

“Why shouldn’t I work?” he replied when he was asked why he did not sit back & take things easier. “I’m still on the payroll and I don’t want to lose my job, especially at this late date”

When starting his chocolate venture, Hershey bought the most expensive, most impressive and most modern machinery he could find, but had no one to show him how to use this equipment. After moving to Derry Township to conduct his research in private, he worked behind closed doors with a guard watching while he experimented with various formulas. He had no chemistry degree to apply to his research for his milk chocolate formula. One of his employees was quoted as stating “Nobody told him how to make it, he just found out the hard way”

Milton Hershey used empirical evidence as part of his experiments. He knew other companies were using powdered milk in their milk chocolate, but he wanted to improve the quality and make it last longer with fresh milk or cream. After a series of trials, he determined cream would not work. He was using plan-do-check-act, by taking each of his iterations all the way through the process. He then faced challenges with milk, and then sugar, going through whole batches. But with each failure came new learning and progress towards the goal. And all through this process he was collaborating with his workers, taking suggestions from various subject matter experts.

Hershey was a firm believer in hard work. He found that he could accomplish his goals only through hard work and observed the same of those around him. But he also enjoyed working hard. If you enjoy your work it goes more easily and you are able and willing to work hard. If you love your work it rarely seems difficult and you can devote as much time to it as you wish.

Follow your passion, and it will guide your decisions to great products!

Rule # 4: Take Risks

“My experience has shown me that the people who are exceptionally good in business aren’t so because of what they know, but because of their insatiable need to know more.”

Hershey decided to take a risk and acquire cough drop machinery on credit. This machinery helped him learn the steps to mass produce chocolate.

Hershey believed in taking risks. His risks were calculated, and with more maturity and experience became increasingly calculated. He did not advocate reckless risk taking. However he recognized from his own life lessons that big rewards do not come to those who will not take a risk.

Milton Hershey’s multiple failed businesses speak to his ability to take risks, and how he used each as a learning opportunity rather than a defeat.

In Product Development, we take risks in the form of not being 100% certain if our products will serve our customers needs. But these should be calculated risks, further minimized by regular communication with customers & stakeholders throughout the Product Development process. These regular check ins as the product is being developed help to ensure we are on the right track, and if we are not, we have time to course correct before it’s too late.

We take risks by being ok with not having everything perfect, but figuring out where good enough is and learning from it.

Some would say another form of risk is how we plan. By not planning up front each and every task that needs to be accomplished in great detail, there are those who would say we are putting our release at risk. However, how many times have those plans gone wrong, and needed to change? Depending on how much time & detail you put into your plan, the real risk is the waste that may occur in massive re-planning. But if you’ve only planned the near future, you’ve reduced this risk and increased your ability to pivot. Then I would say what you release, and not when you release, becomes more important.

Taking risks is part of business, and when those risks are calculated & pay off, we see the leaders in their industries emerge.

Rule # 5: Take Care of Your Workers

When a foreman proudly reported that a newly acquired machine was doing the work of 40 men, Hershey replied “Then get rid of it and get those men back”

Everything I read and hear about Hershey, he always put people first, in life and in business. While he gets credit for coming up with the formula & process to create his chocolate bar, he knew he would not have been able to reach the masses with out the people that worked for him in his factory. He built the town around the factory so that his workers had a nice place to live and raise their families. Hershey did this during the Depression, providing jobs for about 600 construction workers. He recognized them as people, not resources.

As a Product Owner, you are not only responsible the success of your product, but you are a leader for your product team. While you may be the face of your product, no Product Owner delivers on their own, and it’s important to acknowledge the contribution the team makes to that success when it is achieved. It is equally important that you support your team in difficult times as well. This can look like defending the teams estimates for work when presenting to stakeholders that may want to challenge them because they want something faster. Sometimes it can be public recognition of the teams ideas on how to deliver something that was successful and valuable to your organization.

Product development is a team sport, and as a Product Owner you are part of the team. When you remember & recognize what each team member brings to the table, and value them for their skill & expertise, your product will be better for it.