The overlooked – and often untapped – benefits of user groups.

Many sources of information can help build a picture of potential suppliers for equipment or services; the Internet is now one of the favorites, but it is not the only one.

One source of information often overlooked by equipment or services buyers is the user group. These are not to be confused with technology groups, which are not always specific to a supplier and are often run by universities or research organizations. The latter can provide guidance about the best-suited technology and providers, but do not offer much on the supplier’s overall performance. This is where the user group can score. There are two types of user groups: the sanctioned and the unofficial. Let’s evaluate them from all perspectives, including what suppliers can get from them.

The official, sanctioned user group. Many companies see great benefits in the information interchange between users and manufacturers of equipment and services. A properly organized user group should meet at least once annually under the auspices of the supplier. It is an excellent forum for the supplier to ensure all users in a particular region are up to date with the latest revisions and details of equipment or services. It is also a great place to vent about grievous topics. The advantage to the supplier is that, hopefully, dissatisfaction is controlled; however, the risk is that users who were previously unaware of issues might now be primed to look for them.

Suppliers should accept negative feedback as an opportunity to provide rapid problem resolution. For example, the manufacturer may not have been aware that a software issue existed whereby a machine might lock up under certain operating conditions. It was once possible, when time-to-market was less critical, for a supplier to indulge in MIST – the Man in the Street Test – to find out if, for example, buttons being pressed in entirely the wrong order would actually cause a major problem with the equipment. If an engineer designs a product without fully understanding how it might actually be used, he or she might fall into the trap of designing it for other engineers and not shop floor staff. This is the kind of feedback suppliers need and can get from a user group under their control.

It is a brave decision for any supplier to set up a user group because there is a concern about washing dirty linen in public. At first users feel they do not control events, but a properly constructed group will soon give rise to good information flow, both ways.

I once was involved in setting up a group for an electronics production equipment supplier and met huge internal resistance at the onset. Users were suspicious. But group meetings quickly evolved into two-day forums in which the supplier spent time explaining the latest developments of equipment, services or spares, and then the users discussed their issues.

We soon realized the overnight stay offered the users’ engineers an opportunity to get together and discuss problems totally disassociated from the equipment, and often solve process problems for each other. The user day regularly resulted in finding new requirements that perhaps would have taken the supplier much more time to discover on its own.

And when users contacted each other away from the group, they were much more likely to also relay the outcome to the supplier. It was made clear that issues relating to personalities or particular support affairs had their place, but were not allowed to be a focus of the event.

Mostly, these meetings were harmonious, but the main point was that the supplier was always informed quickly so that a possible serious issue could be dealt with before it became a major headache.

The unofficial user group. Usually unofficial groups form because the supplier does not want to be involved with any perceived aggravation.

The users often form strong bonds and regularly communicate with each other, resolving common issues. This can catch the supplier unaware and can lead to animosity. The risk is that users will “gang up” on the supplier and force a certain option, software, etc., to try to keep the peace. In this mode, the supplier is always “on his back foot,” to use a British cricketing metaphor, and rarely gets the chance to discuss new requirements without pressure already being applied. Sometimes an unofficial group may develop into a quasi standards institution and force standards back on to suppliers to gain some advantage for themselves; this usually ends up ensuring even more animosity.

It is also less likely that users will get together to resolve process or non-supplier related issues. As far as suppliers are concerned, unofficial groups act like loose cannons on 18th Century warships and can often cause huge surprises.

Many users like to feel in control, but, in reality, they also appreciate the formality of a supplier-controlled group. Some unofficial groups have formal and sound structures, but not all do. Still, given the potential benefits, it is surprising that more suppliers do not take advantage of the product development potential. It may be arrogance; it could be fear, but it is probably apathy and that is a shame. The benefits of organizing a group from the suppliers’ perspective have more positives than negatives.

Peter Grundy is director of P G Engineering (Sussex) Ltd. and ITM Consulting (itmconsulting.org); peter.grundy2@btinternet.com. His column appears bimonthly.