Interview with Peter Metcalf, by Jonathan Edelman, June 2006

Peter Metcalf is the CEO of climbing and alpine sport gear purveyor Black Diamond (BD) Equipment. The company traces its origins to 1957, when Yvon Chouinard fabricated hand-forged pitons, the metal spikes once freely used by climbers before nuts and cams replaced them.

EDELMAN: Many of your designs employ asymmetric forms. They remind me of older tools that have a very unselfconscious type of ergonomics and that speak to thespecific task in which they are employed. How do you develop the form ofyour climbing tools?

METCALF: We began by working about 15 years ago and studying how climbers would grip, what they liked, etc., and from there we went to hand carving wood. Today we take that knowledge and design in CAD programs and then do rapid prototyping to prove out design concepts.

EDELMAN: Do you have a "design language" that your designers follow?

METCALF: I believe strongly that every part of Black Diamond, from product design, to design processes, to the look and feel of our offices, to how we communicate and work together, etc should personify the philosophy, personality, values, attitudes of climbers especially alpinists and serious ski mountaineers. Hence form should follow function, less is more. Bauhaus captures it simply, or using the guiding quote of the writer Antoine de Saint-Exupury, "Perfection is reached, not when there is nothing left to add, but rather when there is nothing left to take away, when a body has been stripped to its essence." This attitude is ingrained in much of what we do.

EDELMAN: How do you continue to generate innovative designs and concepts?

METCALF: We are a company founded on passion for the sports we serve and we do these sports not only weekly but often via early morning group "dawn patrols." We will meet to skin up a peak to then ski or climb a frozen waterfall, initially by headlamps, and then we are still at work by 8:30 AM, inspired and energized by the morning groups outing. That and we all understand (because it is part of training) that Innovation is our Driver. We have a very flat and approachable management structure within our 250 employees in SLC; all contribute to a strong culture of "innovation". BD recognizes the supremacy of a good idea. Also, for BD, like with climbers, the means by which we succeed is as important as to whether we succeed. Style does matter and since we are driven by a commitment to "make a difference," we don't feel we will do that by "me too products." Our sales and marketing not only shares that philosophy but does not have adequate budgets to succeed if were just hawking a bunch of me too products.

EDELMAN: Does Black Diamond support a culture of prototyping? If so, how?

METCALF: Yes, and we are into cutting, forming or creating a prototype as early into the design process as possible. Though there is a cost to this, the time we save from reducing wasteful design time that might have continued were it not for the prototyping does make it all worthwhile. Primarily we use Stereo Lithography but also foam models, clay and cutting aluminum via CNC's.

EDELMAN: Black Diamond seems to be run by experienced climbers. How do you keep in touch with the needs of new-comers to the sport?

METCALF: For sure we are bunch of very experienced climbers and skiers but we are out doing it and we come into great contact with users at all levels. In addition all of our sales reps/sales service folks are asked to provide input and we have a formal and varied group of testers. Last and not least, we have product category managers who are tasked with really staying in touch with all parts of the market via doing, talking with retailers and users and working closely with our sales reps. All that said, we do make the odd mistake.

EDELMAN: Tell us about your designers, what are their backgrounds, and do they work in teams or alone?

METCALF: For a company of our modest size we've got a large design and engineering department. Our design engineers, ID guys, design manufacturing guys and product management guys come from places as diverse as Nike, Northface, Porsche Design, and the like, Ford, Toyota, as well as directly out of the U of U and BYU design and design engineering departments. What ties them all together is a passion for the sports of climbing and off-piste skiing, a more then mild interest in athleticism, a slightly iconoclastic personality and a belief in BD's belief that it can make a difference.

EDELMAN: How can a company like Black Diamond keep its competitive edge and market share against companies like REI?

METCALF: We are in a beautiful position in that regard. Yes, REI is developing quite an R&D group to do their own REI branded clothing, tents, packs etc.. However, they are a major retailer who plays in the middle of the outdoor specialty market. As big as they are, they will never develop the laser like focus, passion and intimacy we have the sports, nor will they get the get the specialized knowledge, nor would it make financial sense to them. I know this because they are our largest customer and we have a very close, open and positive relationship with them. LookÑwe are a collection of niche and nano-niche categories. The only way we can justify the large investments we make in R&D is that we are truly a global player who has a strong position in the majority of the world's markets for our product. Thank god for that since you need global sales at a leadership level to earn back on your investment. REI is never going to get there and they know it.

EDELMAN: What does the future hold for new markets?

METCALF: Asia as a global market and Eastern Europe all hold great growth potential... We are also slowly moving out from our core, without abdicating it, and launching killer new innovative product in niches like Trekking Poles, Headlamps, Packs, Tents and next winter. You will see BD designed and built Tele and FreeRide Ski boots. Our future for continued strong growth never has looked better or more promising. In 1997 we started Black Diamond Europe (where I am now) and in 2006 we created BD Asia (where I was last week)... both these entities are and will provide us with insights into markets we'd only be a visitor vis a local were it not for these entities and their BD employees.

EDELMAN: How does Black Diamond anticipate design for new markets?

METCALF: By using all the skills, experiences I have described above and making sure we have the right Category Manager running it. We also begin with product and if we can't come up with a compelling product we will not enter a new market.

EDELMAN: With so much manufacturing being done in the East, how does Asia, and China in particular, figure into the equation?

METCALF: BD manufactures at our own facility in SLC, our brand new facility in China (BD owned) and with OEM contractors in North America, China, and the Philippines. We look at the big picture of raw materials, supply chain, and our own competency to determine which products will be made where and when. We are developing a systemic analysis matrix to be sure we are taking advantage of each place we produce in and know to make the best decision for the company

EDELMAN: Is Asia seen a new market for Black Diamond?

METCALF: Yes and no. We have been selling significantly into Japan and to a lesser extent into OZ since our inception. However we have definitely felt a growing surge of demand out of Asia and in the last two years have made many positives changes with our distribution there, how we promote and what we do. That said we've been getting a growth rate there that is over 21% which is materially higher then in North America. Also China has grown very rapidly for us and is part of the reason we just set up shop thereÑbig growth and even bigger opportunity.

EDELMAN: How do you succeed where your predecessors failed in respect to liability?

METCALF: In 1989 we got to start with a clean slate and immediately developed strong quality insurance systems as well as great warning language ... At the same time the EEC was being formed and it was proclaimed that all climbing product sold in Europe had to meet the new CEN standards and because it was "life dependent" gear , it had to meet the PPE (Personal Protective Equipment) European directive, which meant you had to submit your gear for testing with outside auditors and you had to get ISO 9001,2 or 3 audited and certified to. This has proven to be a rather large set of hurdles for a plaintiff's attorney to climb over. Hence, I feel we are reasonably well protected in this regards.

EDELMAN: Why does a potentially dangerous sport like climbing have such a great following?

METCALF: Because the majority the growth in climbing has been in gym and sport climbing, which is no more dangerous then driving your car but still has a bit of a "daredevil" personality to it. Secondly, people have a need, especially today, to find ways to be challenged mentally and physically and to do things where they and only they take responsibility for their actions. This has defined mankind since we arrived on the planet, i.e. the lure of adventure and the unknown. It makes us whole, it makes us alive. Last and not least, many places you climb take you to some rather beautiful and sublime locales that inspire people to no end. It is also an activity that builds powerful bonds between people who share a rope or a true adventure.

EDELMAN: Tell us about the greatest climbing experience you have had?

METCALF: Geez... hmm... Certainly the most memorable was the first Alpine Style Ascent (and second ascent overall) of Mt. Hunter's Face. Mt. Hunter is a big peak next to McKinley in Alaska. The route was big, technically hard for its day and the weather was crap and we brought no tents. We brought six days of light rations, were out 14 days, had 30 below zero storms and feel lucky to have returned. The experience with two others (one who lost several finger tips do to frostbite from the climb) did more to teach me the lessons, personality, values and attitude required to start a Black Diamond then anything else I had done in my life. A book, call Breaking Point was written about the climb. It is out of print now so you will have to go to eBay.

Copyright 2006 Ambidextrous Magazine, Inc.