Creating Value - Designing a (Design) Business

As designers – What's the true value we provide? How can we increase that value? How can we get best compensated for the value we create? // Orginally presented for IxDA, Salt Lake City, this talk shares the lessons learned thus far, in building value as a designer and design company and how we can apply our design thinking + skills to our own work.

VIDEO of presentation with full details – http://www.youtube.com/watch?v=ZEG9h_VqKDU

@ClaytonFarr // @FORMexperience

Transcript

1. DESIGNING BUSINESS a Design
2. Welcome THANKS FOR COMING
3. CLAYTON FARR CO-FOUNDER, FORM UX Who’s Talking?
4. DESIGN
5. DESIGN Creating Meaning System Thinking Process Thinking
6. Curiosity Tinker Discovery DESIGN
7. BUSINESS
8. BUSINESS Creating Value
9. BUSINESS Exchanging Value
10. DESIGNING BUSINESS a Design
11. Applying design thinking + skills 
 to how we create value and how we’re 
 compensated for it. aka
12. VALUE ? What’s the true value
 we provide as designers? VALUE How can we increase 
 the value we provide? How can we get best compensated for the 
 value we produce? VALUE $
13. ME YOU ≠
14. MY EXPERIENCES YOUR SITUATION may not =
15. MY EXPERIENCES YOUR NEEDS may not =
16. MY EXPERIENCES YOUR GOALS can help but hopefully
17. VALUE? What’s the true value we provide through our work?
18. WHAT I THOUGHT
19. BEAUTY + ELEGANCE THOUGHT
20. BEAUTY + ELEGANCE THOUGHT To save them from themselves.
21. OPTIONS THOUGHT
22. OPTIONS Mild, Medium, or Spicy? THOUGHT
23. SPEED THOUGHT
24. SPEED THOUGHT Do a lot of stuff.
25. SPEED THOUGHT Do a lot of stuff. Faster.
26. THE FINISHED PRODUCT THOUGHT
27. THE FINISHED PRODUCT Forgives everything that led to it. THOUGHT
28. WHAT I’VE LEARNED
29. THE BASICS = 79% OF YOUR SUCCESS LEARNED
30. BASICS = TRUST Be reliable. Follow-through. Don’t make more work.
31. COMMUNICATION BASICS = Clear, consistent and proactive. (This topic deserves 23 slides in itself. Alas.)
32. DESIGN PROCESS LEARNED DESIGN RESULTS is as valuable as (and sometimes more)
33. You’re selling a lot more than just design. You’re selling less risk for the client… a solid process and strategy. – Jason Blumer “ ”
34. DESIGN PROCESS = CLARITY Providing perspective and insight of factors that the design supports.
35. DESIGN PROCESS = DIRECTION Aligning varied factors into an effective design solution.
36. EXPLORATION Discovery, learning, adjustment amidst implementation. DESIGN PROCESS =
37. VALIDATION Reality wins every time. DESIGN PROCESS =
38. VALIDATION Reality wins every time. Help your client join its team. DESIGN PROCESS =
39. What’s the true value we provide through our work? “ ” ?
40. BEAUTY + ELEGANCE OPTIONS SPEED FINISHED PRODUCT
41. BEAUTY + ELEGANCE OPTIONS SPEED FINISHED PRODUCT Sometimes Important
42. TRUST COMMUNICATION Baseline
43. TRUST COMMUNICATION Baseline Super Important
44. CLARITY DIRECTION EXPLORATION VALIDATION Unique
45. CLARITY DIRECTION EXPLORATION VALIDATION Unique Super Valuable
46. VALUE How can we increase the value we provide?
47. WHAT I THOUGHT
48. Be quicker. THOUGHT DOING MORE WORK
49. Be quicker. Over deliver. THOUGHT DOING MORE WORK
50. DOING BETTER WORK THOUGHT Be more perfect. Increase ‘quality’.
51. WHAT I’M LEARNING
52. EFFICACY EFFICIENCY out performs LEARNING
53. EFFICACY LEARNING Knowing what work to do - and not. All experience prior to this problem.
54. NOT ALL WORK VALUE is of equal LEARNING
55. INSIGHT SKILLS out performs LEARNING
56. IDEATION PRODUCTION aka out performs
57. COMMODITY PRODUCTION Quality implementation is necessary & highly important, but -
58. COMMODITY PRODUCTION Good production is increasingly available from many sources
59. COMMODITY PRODUCTION Equaling a large amount of supply to meet demand
60. COMMODITY PRODUCTION Making production less ‘valuable’. It should (and will) cost less.
61. EXCLUSIVE Clear, effective thinking & planning is in shorter supply. Can be focused. IDEATION
62. EXCLUSIVE Effective insight & ideation is much more difficult to duplicate. IDEATION
63. EXCLUSIVE Clear perspective & lateral insight is less likely to be available internally. IDEATION
64. EXCLUSIVE IDEATION Making ideation much more ‘valuable’. It should (and does) cost more.
65. DIFFERENT BETTER LEARNING is better than
66. BETTER, BASICALLY = EVERYTHING
67. ANYONE TRIES TO ATTRACT DOING EVERYTHING =
68. EVERYONE COMPETES WITH DOING EVERYTHING =
69. NOTHING YOU BECOME EXCELLENT AT DOING EVERYTHING =
70. SPECIFIC BECOMING SOMETHING BEING DIFFERENT =
71. EVERYTHING INTENTIONALLY SAYING NO TO BEING DIFFERENT =
72. Instead of being mildly appealing to anyone, become intensely appealing to a select group. – Tim Williams “ ”
73. Deciding what you do - and don’t, for whom, and why. BEING DIFFERENT TAKING A POSITION
74. Your purpose. Beyond making money, why does your business exist? POSITIONING = CALLING UNCOVERING YOUR
75. POSITIONING = COMPETENCIES DETERMINING YOUR What are your unique strengths - that you can do better than others?
76. POSITIONING = CUSTOMERS Who can you serve best - your preferred and ideal customers? SELECTING YOUR
77. POSITIONING = CULTURE What are the principles you would turn-away business to support? DECIDING YOUR
78. TWO PEOPLE ONE are smarter than LEARNING
79. HONEST A PERSON WHO KEEPS YOU PARTNERSHIP =
80. HONEST A PERSON WHO KEEPS YOU PARTNERSHIP = WITH YOURSELF
81. SMART A PERSON WHO KEEPS YOU PARTNERSHIP =
82. TRUST A PERSON WHO YOU PARTNERSHIP =
83. STRANGLE A PERSON YOU WANT TO PARTNERSHIP =
84. STRANGLE A PERSON YOU WANT TO RARELY PARTNERSHIP =
85. STRANGLE A PERSON YOU WANT TO RARELY, BUT SOMETIMES PARTNERSHIP =
86. WORTH THE EFFORT IS CERTAINLY PARTNERSHIP =
87. How can we increase the value we provide? “ ”
88. GET LEVERAGE ANSWER:
89. Little Leverage Tons of Leverage EFFICIENCY SKILLS GENERALIST INDIVIDUAL EFFICACY INSIGHTS SPECIALIST PARTNERSHIP
90. VALUE How can we get best compensated for the value we produce? $
91. WHAT I THOUGHT
92. PRICING “How much do I need to make an hour THOUGHT COSTS = +this + that + another thing?”
93. PRICING THOUGHT MARKET = “How much are these other guys getting away with charging?”
94. PRICING THOUGHT EFFORT = “How many hours is this damn thing going to take?
95. UNIT OF $ THOUGHT HOUR = “Um, yeah. That’s the way everyone does it.”
96. UNIT OF $ THOUGHT DAY = “Less micro-managing. Cool.”
97. UNIT OF $ THOUGHT WEEK = “Finally, big picture thinking. We’re geniuses.”
98. WHAT I’M LEARNING
99. COSTS LEARNING YOURS =
100. COSTS LEARNING YOURS = Your concern.
101. COSTS LEARNING YOURS = Your concern. Your benefit.
102. COSTS LEARNING YOURS = Not the concern of your client.
103. COSTS LEARNING Affect whether you can profitably provide requested value, but -
104. COSTS LEARNING Should not dictate compensation for the value you produce.
105. PRICING LEARNING
106. PRICING LEARNING VALUE =
107. PRICING LEARNING VALUE = Me: “Of course. Duh.”
108. Instead of negotiating price, negotiate value. Clients aren’t price conscious, they’re value conscious. – Ron Baker “ ”
109. TOTAL VALUE = YOU THE VALUE CLIENT VALUE FOR + CHARGE FOR TO REAP
110. PRODUCED TOTAL VALUE CLIENT VALUE FOR – TO REAP aka THE VALUE YOU CHARGE FOR =
111. UNIT OF $ LEARNING
112. UNIT OF $ LEARNING VALUE =
113. UNIT OF $ LEARNING VALUE = Me: “Dammit. Of course, double duh.”
114. VALUE BILLING LEARNING ≠ VALUE PRICING
115. VALUE BILLING LEARNING ≠ Pricing is proactive. Billing is reactive. VALUE PRICING
116. MORE HONEST LEARNING VALUE PRICING is
117. MORE HONEST LEARNING VALUE PRICING is By aligning designer & client incentives.
118. MORE FAIR LEARNING VALUE PRICING is
119. MORE FAIR LEARNING VALUE PRICING is To you and your client.
120. MORE FLEXIBLE LEARNING VALUE PRICING is
121. MORE FLEXIBLE LEARNING VALUE PRICING is Compensation can come in many forms.
122. MORE PROFITABLE LEARNING VALUE PRICING is
123. MORE PROFITABLE LEARNING VALUE PRICING is Costs no longer dictate / limit your value.
124. SCOPE OF VALUE LEARNING based upon VALUE PRICING
125. SCOPE OF VALUE LEARNING based upon VALUE PRICING Instead of scope of work.
126. THEREFORE, VALUE PRICING
127. CONVERSATION THEREFORE VALUE PRICING is a
128. CONVERSATION THEREFORE VALUE PRICING is a Up-front dialogue & discovery with client.
129. How can we get best compensated for the value we produce? “ ” $
130. VALUE SEPARATE
131. COSTS AND
132. VALUE COSTS = REALLY, TRULY
133. KILL YOUR HOURLY RATE MAKE EVERY EFFORT TO
134. SO YOU CAN TIE YOUR UNIT OF PAYMENT VALUEproduced instead. to the
135. TO LEARN WHAT A CLIENT VALUES TAKE THE TIME AND EFFORT
136. TO HELP MAKE THOUGHTFUL PRICING one of your core competencies.
137. YOUR BUSINESS =
138. YOUR BUSINESS = YOUR DESIGN
139. YOUR BUSINESS = YOUR DESIGN Design it thoughtfully & purposefully, as you would anything else.
140. @ClaytonFarr FORMexperience.com THANK YOU
141. LEARN MORE Businessologyshow.biz Dan Mall & Jason Blumer Positioning for Professionals Tim Williams Implementing Value Pricing Ron Baker