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Page 1: Case Study Harley- Davidson - Futurethinkfuturethink.com/wp-content/uploads/2017/03/cs_harley_davidson.pdf · To save Harley-Davidson, Vaughn Beals (who’d been heading the company

© 2005–2016, Future Think LLC. All rights reserved. All other trademarks are the property of their respective companies. futurethink clients may make one attributed copy or slide of each figure contained herein. Additional reproduction is strictly prohibited. For additional reproduction rights and usage informa-tion, go to www.futurethink.com. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. To purchase reprints of this document, please email [email protected].

Innovation Simplified | [email protected] | P 646-257-5737 | © Future Think LLC. All rights reserved

Case StudyHarley-Davidson

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Case StudyHarley-Davidson

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When does innovation transcend age, income, and background? Where do executives and outcasts come together based on a shared passion for being “antiestablishment”?

Harley-Davidson, Inc. is a century-old company that designs and sells heavyweight motorcycles, motorcycle parts, and accessories, as well as motorcycle collectibles and riding apparel. More important than what the company makes for consumers is what it means to them. For many Harley owners, they don’t just buy a Harley—they live its lifestyle. And Harley-Davidson somehow manages the right amount of rebellion with the perfect level of prestige.

Harley-Davidson is a classic example of a cult brand. It’s a company whose logo customers proudly tattoo on their bodies. It’s a movement that inspires owners to embrace their own special language (you don’t just buy a Harley bike—you ride a “Hog”). The company’s success is nothing short of an amazing story of innovation.

As Harley-Davidson looks towards the future, they have their eyes set on the next generation of Harley riders. The launch of lighter, more cost-effective bikes, like the Street 750 and Street 500 are attracting customers that are new to the brand, thus expanding their reach and customer base. With the demand for electric motorcycles projected to increase 30 percent in North America and Europe by 2023, Harley-Davidson will be ready. After an overwhelmingly positive response from American riders piloting their electric LiveWire bikes in 2015, they’re testing with international customers in 2016 to meet rising demand.

Part of the company’s secret is being close to customer experiences, understanding its dealership network, and keeping its eye on global growth beyond the United States.

Read on to discover more of Harley-Davidson’s secrets and learn how you can apply them to your organization.

 

Customers Drive Innovation: Full Speed Ahead

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The Four Innovation Capabilitiesfuturethink’s Case Studies are designed to provide insights on today’s leading innovators. Information about each of the companies we feature covers the four key innovation capabilities: Strategy, Ideas, Process, and Climate.

Set a foundation that defines innovation objectives and mobilizes your efforts. The notion of “serendipitous innovation” is dangerously outdated. The secret to success lies in crafting an action-oriented strategy. It means setting a vision for your company to follow and viewing innovation as an expected result, not a lucky one. Innovation should be handled like any business initiative: with an eye on growth, results, and profit.

Think differently to develop original ideas that drive business value. In today’s economy, the ability to continually fuel innovation is what separates winning organizations from the rest. Idea generation should be managed, purposeful, and clearly linked to business objectives. Leading innovators succeed by balancing out-of-the-box thinking with sound management principles.

Create a streamlined and flexible approach to shepherd innovative ideas to market. The reality in every organization is that money is limited. To make sure you’re spending effectively, you must have a streamlined process for innovation. A good process will help to consistently identify your best projects and enable you to move them forward more efficiently.

Build a thriving work environment that drives innovation across your organization. We live in a world where the new replaces the old very quickly. Only organizations that keep pace with the shifting marketplace will be able to stay ahead. So how do the best companies adapt? They cultivate a climate in which employees are encouraged to innovate in a continuous and consistent manner. The companies that stay ahead have made innovation part of their DNA.

futurethink analysts develop case studies by drawing from a mix of extensive research, by conducting organizational and customer interviews (where possible), and by experiencing first-hand interactions with the organization. We want to thank those individuals who contributed to this case study and provided the information found herein, which made the Harley-Davidson story so fascinating.

We hope the information contained on the pages that follow offers insights and inspiration for innovation in your organization.

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Daring Moves Keep a Legend AliveHarley-Davidson was born in 1903, when William S. Harley and Arthur Davidson created their first motorcycle in a wooden shed in Milwaukee and sold it to one of their childhood friends.i Decades of successful growth followed.

However, by the beginning of 1981, a declining market and increased competition from foreign manufacturers had brought Harley-Davidson to the brink of bankruptcy. AMF (the American Machine and Foundry Company) had owned Harley-Davidson since 1969 and the company was in dire financial straits by the early 1980s.

To save Harley-Davidson, Vaughn Beals (who’d been heading the company since 1975) led a buyout along with 12 other executives, taking ownership from AMF for $81.5 million.ii It was a risky move. Yet, as troubled as the company was, the Harley-Davidson name still held a lot of history and brand value.

The new owners faced a mountain of problems. Back in 1973, Harley held 75 percent share of the heavyweight motorcycle market, but that had dropped to less than 25 percent by this point. The quality of the bikes had deteriorated sharply, so much that more than half of the bikes coming out of the factory were missing parts. In order to sell them, dealers often had to fix them up themselves.iii Early attempts to stem the quality problem were costly, at about $1,000 per bike. Harley simply couldn’t match the quality and price that Japanese companies offered in the heavyweight motorcycle market. It needed a major overhaul from the inside out.

Start by Killing Assumptions. By rethinking internal processes, Harley was able to pull itself from the brink of bankruptcy. A slew of changes were instituted, from just-in-time inventory management to increased employee involvement (more on this below), but perhaps the most important change was the way the company approached innovation. Early in this period of self-reinvention, managers at Harley realized that “innovation” did not just mean looking at existing systems and making them work better. Operating that way took too much for granted: namely the very existence of the systems.

“We mistakenly began to automate existing practices

rather than question the need for them.” iv

–Jeff Bleustein, former Chairman and CEO of Harley-Davidson

Harley experienced this with their inventory system. Holding large amounts of inventory was very costly, plus it added time and complexity to the manufacturing process (moving the parts around the facilities, getting the right parts to the right section of the line at the right time, etc.). The company had gotten completely wrapped up in computerizing the inventory, forgetting to ask why there was a surplus of inventory in the first place. But by stepping back and looking at what was creating the mess, instead of simply organizing the mess—Harley was able to dramatically reduce production cost and improve quality. They needed to kill the assumptions that were constraining their ability to problem-solve. Doing this opened the door for innovation to transform the company.

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Progress Through Process. After the buyback, Vaughn Beals took his team on a tour of a Honda assembly plant. They had seen other Japanese plants before, but during this visit, things started to make sense. It wasn’t about superior technology or the different culture—it was simply better management.

A few months into the new ownership regime, the team piloted a just-in-time (JIT) inventory program in their main plant in Milwaukee. After encouraging signs, they tried rolling out a similar program at their York, Pennsylvania, assembly facility. It was tough for managers to accept the new process, which seemed too simple and old-fashioned compared to their current conveyor-belt, computer-controlled system. Harley’s leaders knew they had to involve employees from all departments in order to make the transition to the new process work. Tom Gelb, former senior vice president of operations, said, “No changes were implemented until the people involved understood and accepted them. It took two months before the consensus decision was made to go ahead.”v Just weeks into the new JIT process, workers on the line were reporting that though the system wasn’t perfect, it was already better than the way things had been before.

The enormous increase in quality coupled with decreased costs put Harley on the road to recovery, but it wasn’t outperforming the Japanese producers overnight. To address the foreign competition, the company lobbied for increased import tariffs on heavyweight motorcycles, and it won. Import tariffs were raised sharply from 4.4 percent to 50 percent, and were set to last five years.vi

During that window, Harley undertook strong initiatives to convince the public that its quality really had improved. Spreading the word—and delivering on it—Harley was able to steadily regain market share. The company went public in 1986, and in 1987 asked to have the tariffs lifted a year ahead of schedule. According to The Lean Machine, a book about Harley’s turnaround, “Between 1985 and 1987 the company had increased inventory turnover from five to 20, reduced inventory by 75 percent, reduced scrap by 68 percent, increased productivity by 50 percent, and reduced manufacturing space requirements by 25 percent.”vii

It was quite a comeback. By applying lean manufacturing principles such as just-in-time (JIT) and total quality management (TQM), as well as making employee involvement a critical part of the process, Harley-Davidson set the stage for a strong period of renewed growth. Today, the company has over 1,600 dealers and employs approximately 6,400 employees worldwide. Their manufacturing plants are known for their safety, quality, and rate of production. In particular, their York, PA plant consolidated 41 buildings into one facility where robots do most of the heavy lifting. This revamping has allowed Harley-Davidson to quickly increase or cut production in response to shifting demand.viii Harley currently sells more than 30 different models, ranging in price from $6,800 to nearly $40,000 and sold 267,999 motorcycles in 2014—a 2.7 percent sales growth over 2013. The company has strong emerging market growth, and in 2014 grew 5% in emerging markets - which accounted for 36% of sales.ix

New Product Development: Staying True to the LegacyAs a lifestyle brand built around independence and individuality, Harley-Davidson must consistently deliver authenticity. They know that, in a way, the various features and functions of a bike are just extras. At its core, riding a motorcycle is emotional—it’s about an experience. It can be hard to practice innovation on new products when a brand is so “owned” by its customers. That loyal base has strong emotional ties to what “Harley-Davidson” means, and may not embrace changes that might seem fantastic to a product development team.

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That’s one reason why Harley makes it a point for the people on the inside to truly understand the Harley lifestyle. The company encourages employees to ride motorcycles, participate in Harley Owners Group (H.O.G.) events, host factory tours, and generally play an active role in the Harley extended family. In fact, it’s part of their mission:

“We ride with our customers and apply this deep

connection in every market we serve to create superior value

for all of our stakeholders.”

–Mission Statement,

Harley-Davidson.com

In addition to leveraging a strong consumer connection to inform product development, Harley-Davidson implements an internal system that values diverse opinions and expertise. Instead of leaving it solely to the engineering team, product development happens in a matrix system, pulling people from various functions across the enterprise to work together. Not only does this create better products, but it creates opportunities for employees to learn about different functions and build their own expertise.

The latest product, Project LiveWire, is a departure from Harley’s signature loud and powerful motorcycle. This electric motorcycle—seen as a reinvention of the brand—is undergoing further iterations to improve power, battery life, and speed. The prototype has finished the domestic part of its Project Livewire Experience tour (an international two-year tour started in 2015 during

which customers ride and comment on the new bike).x

The bikes received positive response from domestic customers, and the project will gain even more attention when it goes international in 2016.

The electric-motorcycle market is generating a lot of interest these days. BMW already sells a $22,500 C Evolution e-Scooter in Europe. Although the market for e-cycles is still small, the consultancy Navigant Research predicts that worldwide sales could reach 1.5 million units in 2024. A couple of specialty manufacturers, such as Brammo and Zero, are already in the market. Harley says it isn’t worried about being late to market., “If it’s green, it’s badass green. It has character. We don’t see our competitor understanding that.” Waiting longer to release LiveWire gives Harley time to push the electrical range of the bike from 50 to 100 miles, making the model increasingly more competitive.xi

Common Language: Swirl, Bins, and Cadence and FlowAnother important aspect of Harley-Davidson’s new product development process was the way the company tailored its innovation process. Internally, employees used the terms “swirl,” “bins,” and “cadence and flow” to talk about the various stages of the innovation process. These were not (and still are not!) industry-standard terms.

Swirl. “Swirl” referred to the stage in the process in which ideas floated around constantly, between employees, from various origins. These ideas existed in this shapeless state, held behind a sort of “firewall” that kept the endless stream from overwhelming the product development team. It was the role of the Product Planning Committee to evaluate market needs, concept costs, internal capabilities, etc. to move ideas past the firewall.

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Bins. “Bins” were classifications for potential projects once they had made it out of the swirl, past the firewall. The classifications were based on several factors: risk, size, and whether a team could follow a standard methodology to pursue the project. The idea behind bins is that it helps organizations understand the tradeoffs between project risks and market risks. It helped Harley-Davidson identify which projects make sense to pursue, and how to balance their portfolio of innovation projects.

For more information on their process, read the book The Lean Machine: How Harley-Davidson Drove Top-Line Growth and Profitability with Revolutionary Lean Product Development by Dantar P. Oosterwal (AMACOM, 2010).xii

Cadence and Flow. “Cadence and flow” were terms used to describe the continuous pace of progress on innovation projects. It’s about the prioritization of resources against projects so that a steady stream of milestones are achieved, both minor and major, but most importantly in an aligned fashion that keeps projects moving through the system.xiii

By implementing a standard process for executing new product development, Harley-Davidson set clear expectations that innovation was expected, not lucky. Creating proprietary language showed that management had given it serious thought, and truly integrated innovation into the way the company’s process worked. Once Harley had operations in line, new product development became essential for its continued growth.

The Brand: Lifestyle, Community, and Game MechanicsHow many publicly traded, corporate brands can you think of that inspire such loyalty as to be tattooed across the biceps of bad-boy types everywhere? Harley-Davidson has consistently let its customers define its brand, cultivating an authentic brand image with true staying power.

The company has always believed that the customer’s experience transcends the product itself. On the heels of the manufacturing changes in the early 1980s, Harley-Davidson formed a community called the Harley Owners Group. It was a clever adaptation of the

nickname that riders had been using for decades to refer to their bikes (“Hogs”), turning it into the group’s acronym, H.O.G. Harley has 1,400 local chapters around the globe, each tied to a dealership, sponsoring motorcycling events and get-togethers. It was a medium for not only promoting the products, but also for reinforcing the Harley lifestyle.xiv One annual, altruistic event includes Harley-riders from Texas to Scotland getting together during the holiday season, dressed in Santa costumes, and riding their Hogs to deliver toys and gifts to families in need.xv

The Harley-Davidson Brand and Ownership Culture We fulfill dreams inspired by the many roads of the world by providing extraordinary motorcycles and customer experiences. We fuel the passion for freedom in our customers to express their own individuality.

Today, the Harley Owners Group—the largest factory-sponsored motorcycle organization in the world—spans the globe with one million members living the Harley lifestyle. Each new motorcycle purchase comes with a free one-year H.O.G. membership, and after that riders pay a fee of about $45/year.

Benefits include corporate discounts, roadside assistance, access to motorcycle insurance, invitations to rallies and events, and much more. Members are eligible to log their miles and earn exclusive pins and patches as bragging rights.xvi Harley-Davidson had figured out game mechanics before it ever became a hot business strategy, creating a die-hard community of loyal bikers before social media even existed.

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Harley-Davidson Innovation Hall of Fame. As mentioned, Harley-Davidson knows that their brand depends on living the lifestyle. Their connection to the consumer is key. Here are just a few examples of the ways in which Harley is constantly innovating the customer experience.

H.O.G. (Harley Owners Group). Probably one of the best examples of the brilliance behind the Harley brand is the H.O.G. (Harley Owners Group). Established in 1983, it answered a call from riders for an organized way to share their passion and show their pride.

In 2013, more than 100,000 people turned up at Harley-Davidson’s 110th anniversary celebration in Milwaukee. Former CEO Keith Wandell was reported to “tear up” with emotion when riding his bike with 6,000 other riders to the party. Artists like Aerosmith and Kid Rock performed—demonstrating the many unique ways Harley-Davidson create experiences for their members.xvii

Harley-Davidson Factory Tours. Harley-Davidson customers don’t just want to buy a bike, they want to experience how it’s made. Several Harley facilities (Vehicle and Powertrain Operations in Kansas City; the Powertrain Operations Facility near Milwaukee; and the Vehicle Operations in York, Pennsylvania) showcase how the high-performance organization operates. These tours highlight the way employees work collaboratively and are empowered to “channel their pride and expertise into machines that capture the imagination.”xviii Visitors can witness the entire production process from start to finish first-hand from the manufacturing floor.

Harley-Davidson Museum™. In June 2008, the company opened the much-anticipated Harley-Davidson Museum™ in Milwaukee, Wisconsin. The Museum attracts an estimated 350,000 visitors annually from around the world. Featuring programs such as movie night, Camp Harley-Davidson (an exclusive event that lets you “become the ultimate insider”), the Back Roads Tour (private tour of the Harley-Davidson archives)xix, the Steel Toe Tour (“up close and personal with the assembly line”), and many others, the Museum invites attendees to interact with the brand in unique ways.xx

Leaving a Permanent Mark: Personalized Rivets.Enthusiasts can become a lasting part of the Harley-Davidson Museum by engraving their names and statements on 3’ or 6’ steel rivets, which are displayed in the walls and plazas of the museum. The rivets are meant to symbolize the connection felt among the Harley community.xxi

A MARVEL-ous Partnership. One way Harley Davidson connects with a younger population is through their partnership with the MARVEL franchise. In Marvel’s recent film, Avengers 2, released in 2015, Harley-Davidson showcased their latest innovations, Project LiveWire and Street 750.xxii The Street 750 appears in the new Captain America movie – with Cap riding a Harley like he’s done since 1941 – but this time, with a lighter model and attracting a much younger fan base. There is great opportunity for the company through custom bikes appearing in MARVEL films, as well as showcasing bikes with innovative technology. Harley-Davidson reaches even more Marvel fans through it’s “Road Force” limited edition comic book series. These issues star fan-created heroes, like Highway Bandit, who fight villians while riding custom, weaponized Harleys. This direct engagement with comic superfans elevates their ability to access young adult customers.xxiii

 

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Ride Planner. Started in 2006, the Ride Planner is an interactive application that lets riders plot their touring routes. It is also a social application that allows users to find the best roads recommended by other riders, check-in to restaurants, hotels, and other attractions, and find Harley-Davidson dealers along the way.xxiv It is a clever way to connect their community as H.O.G. members can share where the best restaurants, bars, and bands are. The application targets a wide range of Harley owners from New Riders, Skilled Riders, to Group Riders, allowing individuals to self-identify with similar communities.

Harley on Facebook. Social media is a popular way for Harley-Davidson to engage its community.

• The Harley-Davidson page has over 7 million fans and features tens of thousands of photos tagged with “Harley-Davidson.”

• You’ll also find fan pages for specific Harley dealers, Harley products, Harley models, and even pets named Harley and/or Davidson.

• There are hundreds of Harley-Davidson events posted on Facebook each year, including: Rally De Harley-Davidson en Nicaragua, the Sturgis Motorcycle Rally (in Sturgis, South Dakota—“the granddaddy of all motorcycle rallies”), and the Harley-Davidson raffle for Muscular Dystrophy.

• There are also 13 Harley-Davidson-related Facebook applications, from puzzles to a crowd-sourcing app that collects fans’ advertising ideas.

Harley-Davidson Cafes. Not every new idea is successful; the Harley-Davidson cafés are one such example. Meant to be another means to “experience” or “live” the brand, Harley-Davidson launched a restaurant chain following a similar model to that of Hard Rock Café, but instead of rock memorabilia, the focus was motorcycles. To attract a large number of people, the cafés were set up near dealer stores, in tourist destinations, and in major metropolitan areas. It seems that the only café (complete with a Chopper Chapel!) still open is the Las Vegas location; the others have subsequently closed.xxv

Harley-Davidson Financial Services Through Harley-Davidson Financial Services (HDFS) and Eaglemark Savings Bank (a subsidiary), Harley offers a variety of services that help riders get the bikes they want. The company provides financing opportunities for new bikes bought from dealers, as well as the unique “Seller’s Assist” program, in which the company will provide financing for a buyer purchasing a used Harley from another individual. In 2012, HDFS financed more than half of all new Harley-Davidson motorcycles sold in the US. The group also markets the Harley-Davidson Visa Card, which earns points that can be redeemed at any Harley dealer in the United States.xxvi

Changing DemographicsOne of the biggest challenges Harley-Davidson faces in the next few years is the aging of their core market. The Harley lifestyle has always appealed to baby boomers—a huge group as far as size—but the company needs to make inroads with younger riders before their core stops riding. In 2011, the average age of a Harley rider was 51; five years before it was only 44.

While Harley acknowledges the need to reach a younger demographic, they do expect that boomers will be riding for about 15 more years.xxvii The company has developed a strategy to target more customers in global markets, as well as to target new demographics worldwide. The target groups include young adults (men and women 18–34), women (Caucasian 35+), and “diverse” men and women (African-American and Hispanic 35+).xxviii

In true Harley fashion, the company opts for experiential tactics to reach these groups. Additionally, their using taglines like,“3 New Harley Motorcycles Under $12,000” to highlight lower price points.

 

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Young Adults: To connect with young adults, Harley showcases new bikes at South by Southwest (SXSW), a huge music and cultural festival held annually in Austin, Texas.They partner with Ultimate Fighting Championship on Hometown Throwdown fighting events, and ticket holders are eligible to win hogs. These events take advantage of wide viewership and reach younger customers. In 2013, partnering with the popular FX TV show “Sons of Anarchy” made Harley a brand leader in the 18-to-34 year old market and increased sales by 6%. Newly appointed CEO Matt Levatich plans to attract younger riders with Harley’s Street Models, priced as low as $6,800, compared to the typical $30,000 price point for a Harley. Through Operation Personal Freedom they offer free motorcycle lessons for U.S. miliatry personnel and first responsders. One of the company’s 2016 objectives is to “grow the sport of motorcycling in the U.S.” therefore growing its core and outreach customers.

Women + “Diverse”: Harley holds Garage Party events at dealerships just for women.xxix They’ve also released the FL Low, a hog easier for shorter people to ride. The corporate website features a whole section on “Harlistas,” the term Latin American Harley riders have been calling themselves for decades. Harley-Davidson is already the market leader in each of these segments—the key is to grow these markets over the next 15 years as the core market demand decreases.xxx

The launch of the Street 700 and Street 750 bikes, which are the cheapest and lightest available, should help the retailer reach a wider consumer base. So far it’s been working. 2014 was the third consecutive year that Harley grew sales to outreach customers by more than twice the sales-growth to core customers.xxxi

What’s Next for Harley?Harley-Davidson has big goals to expand their presence internationally: they want international sales to make up 40 percent of total retail sales. To meet these goals, Harley promises to add 150–200 new dealerships outside the United States by 2020.xxxii India is a major focus, as the world’s second-largest market for motorcycles (after China).xxxiii

Although a huge market, it is a very different one from that in the United States or Europe: most motorcycles in India are the sole form of transportation for individuals or families—not the “toys” that they are to American riders. Consumers in India tend to buy lighter, less expensive bikes for a more functional purpose.xxxiv Harley Davidson built a manufacturing plant in India, for easier exporting of Street models to Asian-Pacific, European, and Australian markets.xxxv The Street models will be available in almost all of Harley’s markets in 2016, seeing long-term growth “as disposable incomes and aspirations rise.”xxxvi

Their Project LiveWire tour goes international in 2016, collecting rider feedback on their electric motorcycle prototype. They hope to mass produce by the end of the year. The market for electric bikes has great potential and Harley’s global reach prepares them for the increasing demand. Better yet, this new motorcycle design has proved to be more suited to the taste of outreach customers, helping the company expand their base.xxxvii

In 2014, members of Harley-Davidson’s management team participated in their “Walk-A-Mile” tradition. This involves spending a week working in dealerships to see firsthand the challenges dealers might face every day. The director of channel strategy saw low-level tasks in its process for warrantying bike parts that were wasting employees’ time. The process has since been improved to make the programs for entering the information less repetitive for the dealer.xxxviii This example shows that Harley-Davidson looks not only at creating innovations for their products, but for other areas of their business that might not be so obvious to the consumer’s eye. This gives insight into why the brand has existed for over 110 years.

Wherever Harley-Davidson goes, its iconic brand goes before it. For over a century, the company has supported the brand by fully embracing the rider’s lifestyle and constantly innovating to provide the ultimate ride.Levatich will increase product development spending by 35% in 2016, as it develops bikes for new customer groups.xxxix The ability to reinvent itself, yet stay true to the essence of individuality, independence, and the open road, continues to make Harley a uniquely successful leader.

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What Can You Learn from Harley?Set a foundation that defines innovation objectives and mobilizes your efforts.Everything Harley does centers around the customer experience. Creating experiences that go far beyond mere “products” are what build the cult brand and drive its long-term success.

• What types of ideas are you specifically looking for to drive your organizational success?

• How can you think beyond your current offerings and use innovation to try something new?

Think differently to develop original ideas that drive business value. From hosting factory tours to participating in H.O.G. road rallies, Harley employees live the brand and interact with a wide range of people to get new ideas.

• Which audiences are being tapped by your organization to ensure it is getting a diverse set of ideas into your pipeline?

• How can you involve your customers in your innovation efforts? What mechanisms can you create to continually interact with them and learn their needs?

 

 

 

 

 

 

 

 

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Create a streamlined and flexible approach to shepherd innovative ideas to market. Harley’s process of “Swirl, Bins, and Cadence and Flow” is an extremely well-articulated process that keeps innovation efforts running smoothly.

• What workflows do you have in place to move ideas forward?

• How well are you articulating the process of innovation to the larger organization so people can better participate in it?

Build a thriving work environment that drives innovation across your organization. Harley’s internal climate builds on the organization’s mission to “Ride with the Customer,” which motivates employees to continually embrace change for the good of its customers, and ensure everything the company does is authentic. Executives also “Ride with the Customer,” playing an active role in innovation and participating in different parts of the process.

• How does leadership in your organization participate in innovation?

• How do you create a climate of innovation that embraces change and welcomes a bit of rebellion to drive success?  

 

 

 

 

 

 

 

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Online ReferencesBloomberg News. “Harley Davidson focus on customers, tech revive lagging sales.” (3 September 2013). http://www.newsday.com/classifieds/cars/harley-davidson-focus-on-customers-tech-revive-lagging-sales-1.6005190

Cochran, Amanda. “Harley-Davidson CEO on creating the motorcycle ‘Experience’.” CBS News (23 August 2013). http://www.cbsnews.com/news/harley-davidson-ceo-on-creating-the-motorcycle-experience/

Dark Custom. http://www.harley-davidson.com/content/h-d/en_US/home/motorcycles/darkcustom.html?source_cd=social_YouTube

Davies, Alex. “Harley Davidson’s One Step Closer to Selling An Electric Motorcycle.” Wired. (February 24, 2015). http://www.wired.com/2015/02/harley-davidsons-one-step-closer-selling-electric-motorcycle/

Fleming, Charles. “Harley-Davidson Blasts into the Future with 2014 Lineup.” Los Angeles Times (19 August 2013). http://articles.latimes.com/2013/aug/19/business/la-fi-mo-autos-harley-davidson-2014-lineup-20130816

Granatstein, Lisa. “How Harley-Davidson is Reaching Out to Milennials While Still Appealing to Baby Boomers.” 16 Oct 2015. AdWeek. http://www.adweek.com/news/advertising-branding/how-harley-davidson-reaching-out-millennials-while-still-appealing-boomers-167585

Hagerty, James. “Harley-Davidson’s Hurdle: Attracting Young Motorcycle Riders.” (19 June 2015). http://www.wsj.com/articles/can-harley-davidson-spark-a-motorcycle-counterculture-1434706201

Harley-Davidson 2014 Annual Report: <http://www.annualreports.com/Company/harley-davidson-inc>

Harley-Davidson Corporate Website: <www.harleydavidson.com>

Harley Ride Planner: <http://rideplanner.harley-davidson.com/rideplanner/ridePlanner.jsp>

Harley-Davidson Café: <www.harley-davidsoncafe.com/>

Harley-Davidson Owners Group (H.O.G.): <www.harley-davidson.com/wcm/Content/Pages/HOG/HOG.jsp?locale=en_US&bmLocale=en_US>

Harley-Davidson YouTube Channel: <www.youtube.com/user/HarleyDavidson>

Lublin, Joann, and James Hagerty. “Why the Boss is Younger Than You Are.” The Wall Street Journal. (7 July 2015). http://www.wsj.com/articles/why-the-boss-is-younger-than-you-are-1436306860

Steinberg, Stephanie. “Around the Water Cooler With Harley-Davidson’s CEO.” US News (9 July 2013). http://money.usnews.com/money/careers/articles/2013/07/09/around-the-water-cooler-with-harley-davidsons-ceo

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ENDNOTESi www.harley-davidson.com/content/h-d/en_US/home/museum/explore/hd-history/1900.html

ii Reid, Peter C. “How Harley Beat Back The Japanese.” Fortune (25 September 1989). money.cnn.com/magazines/fortune/fortune_archive/1989/09/25/72503/index.htm

iii Reid, Peter C. “How Harley Beat Back The Japanese.” Fortune (25 September 1989). money.cnn.com/magazines/fortune/fortune_archive/1989/09/25/72503/index.htm

iv Teresko, John. “Technology Leader of the Year—Fueled by Innovation.” Industry Week (2 December 2002).

v Reid, Peter C. “How Harley Beat Back The Japanese.” Fortune (25 September 1989). money.cnn.com/magazines/fortune/fortune_archive/1989/09/25/72503/index.htm

vi Reid, Peter C. “How Harley Beat Back The Japanese.” Fortune (25 September 1989). money.cnn.com/magazines/fortune/fortune_archive/1989/09/25/72503/index.htm

vii Oosterwal, Dantar P. “The Lean Machine: How Harley-Davidson Drove Top-Line Growth and Profitability with Revolutionary Lean Product Development.” New York: AMACOM. (13 January 2010).

viii Hagerty, James. “Harley Goes Lean to Build Hogs.” The Wall Street Journal. blogs.wsj.com/drivers-seat/2012/09/24/harley-goes-lean-to-build-hogs/

ix “2014 Annual Review: Letter to Shareholders” (19 Nov 2015). http://ar.harley-davidson.com/pdfs/Letter_to_Shareholders_2014.pdf

x “Could Delaying the Launch of Project LiveWire Cost Harley-Davidson?” 4 June 2015. (18 Nov 2015). Forbes. http://www.forbes.com/sites/greatspeculations/2015/06/04/could-delaying-the-launch-of-project-livewire-cost-harley-davidson/

xi “Could Delaying the Launch of Project LiveWire Cost Harley-Davidson?” 4 June 2015. (18 Nov 2015). Forbes. http://www.forbes.com/sites/greatspeculations/2015/06/04/could-delaying-the-launch-of-project-livewire-cost-harley-davidson/

xii Oosterwal, Dantar P. “The Lean Machine: How Harley-Davidson Drove Top-Line Growth and Profitability with Revolutionary Lean Product Development.” New York: AMACOM (13 January 2010).

xiii Oosterwal, Dantar P. “The Lean Machine: How Harley-Davidson Drove Top-Line Growth and Profitability with Revolutionary Lean Product Development.” New York: AMACOM (13 January 2010).

xiv www.harley-davidson.com

xv “Kind Hearted Bikers Gear up to Deliver Presents and Festive Cheer.” STV Edinburgh. (22 Dec. 2014).

xvi www.harley-davidson.com/wcm/Content/Pages/HOG/HOG.jsp?locale=en_US&bmLocale=en_US

xvii Engel, Jeff. “Harley-Davidson CEO in spotlight again at GMC event.” Milwaukee Business Journal. (9 September 2013). http://www.bizjournals.com/milwaukee/blog/2013/09/harley-davidson-ceo-in-spotlight-again.html?page=all

xviii www.harley-davidson.com/en_US/Content/Pages/Factory_Tours/factory_tours.html

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xix “The Back Roads Tour at the Harley-Davidson Museum®.” Harley-Davidson Museum. (22 Dec. 2014). http://www.harley-davidson.com/content/h-d/en_US/home/museum/explore/programs-tours/back-roads-tour.html

xx www.harley-davidson.com/content/h-d/en_US/home/museum/explore/programs-tours.html

xxi www.harley-davidson.com/content/h-d/en_US/home/museum/explore/programs-tours.html

xxii “Samsung, Harley-Davidson Go All-Out for Product Placement in Avengers 2.” (22 Dec. 2014).

xxiii “Ride Again with Marvel and Harley Davidson.” 11 June 2013. (19 Nov 2015). http://marvel.com/news/comics/20730/ride_again_with_marvel_and_harley-davidson

xxiv http://www.harley-davidson.com/en_US/Content/Pages/Ride_Planner/ride-planner.html

xxv www.lasvegas.com/listing/harley-davidson-caf/6692/

xxvi www.myhdfs.com

xxvii Hamner, Susanna. “Harley, You’re Not Getting any Younger.” The New York Times. (21 March 2009).

xxviii investor.harley-davidson.com/phoenix.zhtml?c=87981&p=irol-irhome

xxix “What’s Next for Harley Davidson?” 23 Sept 2015. (19 Nov 2015). http://www.chicagobusiness.com/article/20150923/NEWS05/150929950/whats-next-for-harley-davidson

xxx investor.harley-davidson.com/phoenix.zhtml?c=87981&p=irol-irhome

xxxi “Could Delaying the Launch of Project LiveWire Cost Harley-Davidson?” Forbes. 4 June 2015. http://www.forbes.com/sites/greatspeculations/2015/06/04/could-delaying-the-launch-of-project-livewire-cost-harley-davidson/

xxxii Hagerty, James. “Harley-Davidson to Ramp Up Marketing, as Sales Skid.” The Wall Street Journal. (20 October 2015). http://www.wsj.com/articles/harley-davidson-to-cut-jobs-as-results-miss-expectations-1445344845

xxxiii Leahy, Joe and James Fontanella-Khan. “Harley-Davidson Revs Up to Lure Indian Fans.” Financial Times (1 January 2010).

xxxiv Kapur, Nick. “This Is the Future of Harley-Davidson?”Motley Fool (15 February 2011). www.fool.com/investing/international/2011/02/15/this-is-the-future-of-harley-davidson.aspx

xxxv Harley-Davidson Annual Report 2009.

xxxvi “India Driving Volume Growth for Harley Davidson | Latest News & Updates at Daily News & Analysis.” Dna. (22 Dec. 2014). http://www.dnaindia.com/money/report-india-driving-volume-growth-for-harley-davidson-2036451

xxxvii “Lightweight and Electric Motorcycles.” Forbes. (February 27, 2015) http://www.forbes.com/sites/greatspeculations/2015/02/27/lightweight-and-electric-motorcycles-to-expand-harley-davidsons-customer-base/

xxxviii “How Harley-Davidson Keeps Things Small, Even as They grow.” Fortune. 04 Nov. 2014. (22 Dec. 2014.) http://fortune.com/2014/11/04/harley-davidson/

xxxix “What’s Next for Harley Davidson?” 23 Sept 2015. (19 Nov 2015). http://www.chicagobusiness.com/article/20150923/NEWS05/150929950/whats-next-for-harley-davidson