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Ensuring Value in our Work: The ROI of Design (FEDC 2018)

Jared Ponchot
April 26, 2018
77

Ensuring Value in our Work: The ROI of Design (FEDC 2018)

This was a talk at FEDC 2018 about how to measure the ROI of design.

Jared Ponchot

April 26, 2018
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Transcript

  1. ENSURING VALUE
    IN OUR WORK
    The ROI of Design
    JARED PONCHOT // @JPONCH // FEDC 2018

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  2. ‣Understanding the ROI of an
    improved User Experience
    WHAT’S MOST IMPORTANT FOR YOUR AGENCY RIGHT NOW?

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  3. THE ROI OF DESIGN?

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  4. ROI=

    RETURN ON
    INVESTMENT

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  5. the resources (e.g. time, money) we
    invest in design will wind up getting
    us even more money in return?
    HOW CAN WE KNOW THAT …

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  7. — ALBERT EINSTEIN
    If you can’t explain it to a six year
    old, you don’t understand it yourself.

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  8. A TAXONOMY FOR
    DESIGN VALUE

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  9. ‣ Brand
    ‣ Innovation
    ‣ Efficiency
    ‣ Satisfaction
    ‣ Sustainability

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  10. BRAND

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  11. — HARTMUT ESSLINGER, FROG DESIGN
    Money buys, but emotion sells.

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  13. Desirability Studies

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  14. INNOVATION

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  15. ‣ Making strategic initiatives possible
    ‣ Creating new products, services, etc.
    ‣ Enabling entry into new markets
    INNOVATION THROUGH

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  16. Re-imagining
    problems

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  17. Tesco Subway Store in South Korea image from littledoremi.com

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  18. from evigo.com

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  19. from jcdecaux-oneworld.com

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  20. Intellectual Property

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  21. EFFICIENCY

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  22. 25% FAIL OUTRIGHT
    IT PROJECTS
    PROVIDE NO ROI (IF THEY SUCCEED)
    20-25%
    REQUIRE SIGNIFICANT REWORK
    50%
    Based on a 2009 study

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  23. Poor requirements

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  24. Editorial & process
    improvements

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  25. Customer service
    requests

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  26. SATISFACTION

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  27. — JEROME KATHMAN, CEO OF LPK
    Consumer-preferred design outperforms
    management-preferred design.

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  28. Usability

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  29. SUSTAINABILITY

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  30. YOUR USERS

    desirability YOUR BUSINESS

    viability
    YOUR BUILD TEAM

    feasibility

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  31. ‣ Is it changing how customers see our brand?
    ‣ Is it helping us innovate?
    ‣ Is it increasing efficiency?
    ‣ Is it improving satisfaction?
    ‣ Is it making things more sustainable?

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  32. MEASURING IS HARD

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  33. Projects often begin with a
    measurement to improve

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  34. Simpson’s Paradox

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  35. 7.9%
    11%

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  36. 22.9%
    2.8%
    0%
    11.3%

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  39. “If an unfriendly foreign power
    had attempted to impose these
    bad schools on us, we might well
    have viewed it as an act of war.”

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  40. MATH SCORES
    40pts
    VERBAL SCORES
    50pts

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  41. Bad Teachers

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  42. More test takers

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  43. LOW INCOME
    INCOME:
    LURKING VARIABLE
    MIDDLE INCOME
    HIGH INCOME

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  44. LOW INCOME
    INCOME:
    LURKING VARIABLE
    MIDDLE INCOME
    HIGH INCOME

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  45. LOW INCOME
    INCOME:
    LURKING VARIABLE
    MIDDLE INCOME
    HIGH INCOME

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  46. LOW INCOME
    INCOME:
    LURKING VARIABLE
    MIDDLE INCOME
    HIGH INCOME

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  47. 448/8,000 VISITS
    PAGE A
    5.6%
    584/8,000 VISITS
    7.3%
    PAGE B

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  48. PAGE A PAGE B

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  49. PAGE A PAGE B
    FACEBOOK
    300/6,000
    5%

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  50. PAGE A
    FACEBOOK
    30/750
    4%
    PAGE B
    FACEBOOK
    300/6,000
    5%

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  51. PAGE A
    GOOGLE ADS
    60/1,000
    6%
    FACEBOOK
    30/750
    4%
    PAGE B
    FACEBOOK
    300/6,000
    5%

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  52. PAGE A
    GOOGLE ADS
    60/1,000
    6% GOOGLE ADS
    40/800
    5%
    FACEBOOK
    30/750
    4%
    PAGE B
    FACEBOOK
    300/6,000
    5%

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  53. PAGE A
    GOOGLE ADS
    60/1,000
    6%
    EMAIL
    90/1,000
    9%
    GOOGLE ADS
    40/800
    5%
    FACEBOOK
    30/750
    4%
    PAGE B
    FACEBOOK
    300/6,000
    5%

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  54. PAGE A
    GOOGLE ADS
    60/1,000
    6%
    EMAIL
    90/1,000
    9%
    GOOGLE ADS
    40/800
    5%
    EMAIL
    516/6,450
    8%
    FACEBOOK
    30/750
    4%
    PAGE B
    FACEBOOK
    300/6,000
    5%

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  56. DATA != MEANING

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  57. Confirmation Bias

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  58. — UPTON SINCLAIR
    It is difficult to get a man to
    understand something, when his
    salary depends on his NOT
    understanding it.

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  59. Gestalt Principle:
    Isomorphism

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  61. Photos from Reddit

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  62. — JACK HANDY
    To me, clowns aren't funny. In fact,
    they're kind of scary. I've wondered
    where this started and I think it goes
    back to the time I went to the circus,
    and a clown killed my dad.

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  63. Photo by Ghida Basma

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  64. Availability Heuristic

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  66. — ERIKA HALL
    We tend to measure what we can easily
    count, but not necessarily what counts.

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  67. Goodhart’s Law

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  68. MORE DATA !=
    BETTER DECISIONS

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  69. Photos by Reuters / Bassim Shati and from https://www.huffingtonpost.co.uk/2014/05/07/working-at-amazon-like_n_5278503.html

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  70. The allure of cheap science

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  71. SCIENCE & ART

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  73. Sunset photo from http://www.city-data.com/picfilesv/picv16390.php

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  75. From https://reasonandreflection.wordpress.com/tag/atomic-bomb/

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  76. 1. Mystery
    2. Hypothesis
    3. Repeated Experimentation
    4. Theory
    5. Fact
    SCIENTIFIC METHOD

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  77. 1. Mystery

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  78. 2. Hypothesis

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  79. 3. Repeated
    Experimentation

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  80. 4. Theory

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  81. 5. Fact

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  82. Repeat

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  83. EPISTEMOLOGY

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  84. How do we know things?

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  85. From wallpapercave.com

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  86. — JEFF BEZOS
    “Most decisions should probably be
    made with somewhere around 70% of
    the information you wish you had. If
    you wait for 90%, in most cases,
    you’re probably being slow.

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  87. Trust

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  88. TAKE RISKS

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  89. The value of design

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  90. — ANNE LAMOTT
    Perfectionism is the voice of the
    oppressor, the enemy of the people. It
    will keep you cramped and insane your
    whole life, and it is the main obstacle
    between you and a shitty first draft.

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  91. THANKS!
    Jared Ponchot
    @jponch

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