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DESIGNING BUSINESS a Design

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Welcome THANKS FOR COMING

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CLAYTON FARR CO-FOUNDER, FORM UX Who’s Talking?

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DESIGN

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DESIGN Creating Meaning System Thinking Process Thinking

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Curiosity Tinker Discovery DESIGN

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BUSINESS

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BUSINESS Creating Value

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BUSINESS Exchanging Value

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DESIGNING BUSINESS a Design

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Applying design thinking + skills 
 to how we create value and how we’re 
 compensated for it. aka

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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 $

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ME YOU ≠

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MY EXPERIENCES YOUR SITUATION may not =

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MY EXPERIENCES YOUR NEEDS may not =

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MY EXPERIENCES YOUR GOALS can help but hopefully

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VALUE? What’s the true value we provide through our work?

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WHAT I THOUGHT

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BEAUTY + ELEGANCE THOUGHT

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BEAUTY + ELEGANCE THOUGHT To save them from themselves.

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OPTIONS THOUGHT

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OPTIONS Mild, Medium, or Spicy? THOUGHT

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SPEED THOUGHT

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SPEED THOUGHT Do a lot of stuff.

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SPEED THOUGHT Do a lot of stuff. Faster.

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THE FINISHED PRODUCT THOUGHT

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THE FINISHED PRODUCT Forgives everything that led to it. THOUGHT

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WHAT I’VE LEARNED

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THE BASICS = 79% OF YOUR SUCCESS LEARNED

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BASICS = TRUST Be reliable. Follow-through. Don’t make more work.

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COMMUNICATION BASICS = Clear, consistent and proactive. (This topic deserves 23 slides in itself. Alas.)

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DESIGN PROCESS LEARNED DESIGN RESULTS is as valuable as (and sometimes more)

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You’re selling a lot more than just design. You’re selling less risk for the client… a solid process and strategy. – Jason Blumer “ ”

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DESIGN PROCESS = CLARITY Providing perspective and insight of factors that the design supports.

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DESIGN PROCESS = DIRECTION Aligning varied factors into an effective design solution.

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EXPLORATION Discovery, learning, adjustment amidst implementation. DESIGN PROCESS =

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VALIDATION Reality wins every time. DESIGN PROCESS =

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VALIDATION Reality wins every time. Help your client join its team. DESIGN PROCESS =

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What’s the true value we provide through our work? “ ” ?

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BEAUTY + ELEGANCE OPTIONS SPEED FINISHED PRODUCT

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BEAUTY + ELEGANCE OPTIONS SPEED FINISHED PRODUCT Sometimes Important

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TRUST COMMUNICATION Baseline

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TRUST COMMUNICATION Baseline Super Important

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CLARITY DIRECTION EXPLORATION VALIDATION Unique

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CLARITY DIRECTION EXPLORATION VALIDATION Unique Super Valuable

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VALUE How can we increase the value we provide?

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WHAT I THOUGHT

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Be quicker. THOUGHT DOING MORE WORK

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Be quicker. Over deliver. THOUGHT DOING MORE WORK

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DOING BETTER WORK THOUGHT Be more perfect. Increase ‘quality’.

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WHAT I’M LEARNING

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EFFICACY EFFICIENCY out performs LEARNING

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EFFICACY LEARNING Knowing what work to do - and not. All experience prior to this problem.

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NOT ALL WORK VALUE is of equal LEARNING

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INSIGHT SKILLS out performs LEARNING

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IDEATION PRODUCTION aka out performs

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COMMODITY PRODUCTION Quality implementation is necessary & highly important, but -

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COMMODITY PRODUCTION Good production is increasingly available from many sources

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COMMODITY PRODUCTION Equaling a large amount of supply to meet demand

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COMMODITY PRODUCTION Making production less ‘valuable’. It should (and will) cost less.

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EXCLUSIVE Clear, effective thinking & planning is in shorter supply. Can be focused. IDEATION

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EXCLUSIVE Effective insight & ideation is much more difficult to duplicate. IDEATION

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EXCLUSIVE Clear perspective & lateral insight is less likely to be available internally. IDEATION

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EXCLUSIVE IDEATION Making ideation much more ‘valuable’. It should (and does) cost more.

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DIFFERENT BETTER LEARNING is better than

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BETTER, BASICALLY = EVERYTHING

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ANYONE TRIES TO ATTRACT DOING EVERYTHING =

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EVERYONE COMPETES WITH DOING EVERYTHING =

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NOTHING YOU BECOME EXCELLENT AT DOING EVERYTHING =

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SPECIFIC BECOMING SOMETHING BEING DIFFERENT =

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EVERYTHING INTENTIONALLY SAYING NO TO BEING DIFFERENT =

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Instead of being mildly appealing to anyone, become intensely appealing to a select group. – Tim Williams “ ”

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Deciding what you do - and don’t, for whom, and why. BEING DIFFERENT TAKING A POSITION

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Your purpose. Beyond making money, why does your business exist? POSITIONING = CALLING UNCOVERING YOUR

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POSITIONING = COMPETENCIES DETERMINING YOUR What are your unique strengths - that you can do better than others?

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POSITIONING = CUSTOMERS Who can you serve best - your preferred and ideal customers? SELECTING YOUR

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POSITIONING = CULTURE What are the principles you would turn-away business to support? DECIDING YOUR

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TWO PEOPLE ONE are smarter than LEARNING

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HONEST A PERSON WHO KEEPS YOU PARTNERSHIP =

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HONEST A PERSON WHO KEEPS YOU PARTNERSHIP = WITH YOURSELF

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SMART A PERSON WHO KEEPS YOU PARTNERSHIP =

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TRUST A PERSON WHO YOU PARTNERSHIP =

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STRANGLE A PERSON YOU WANT TO PARTNERSHIP =

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STRANGLE A PERSON YOU WANT TO RARELY PARTNERSHIP =

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STRANGLE A PERSON YOU WANT TO RARELY, BUT SOMETIMES PARTNERSHIP =

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WORTH THE EFFORT IS CERTAINLY PARTNERSHIP =

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How can we increase the value we provide? “ ”

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GET LEVERAGE ANSWER:

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Little Leverage Tons of Leverage EFFICIENCY SKILLS GENERALIST INDIVIDUAL EFFICACY INSIGHTS SPECIALIST PARTNERSHIP

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VALUE How can we get best compensated for the value we produce? $

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WHAT I THOUGHT

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PRICING “How much do I need to make an hour THOUGHT COSTS = +this + that + another thing?”

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PRICING THOUGHT MARKET = “How much are these other guys getting away with charging?”

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PRICING THOUGHT EFFORT = “How many hours is this damn thing going to take?

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UNIT OF $ THOUGHT HOUR = “Um, yeah. That’s the way everyone does it.”

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UNIT OF $ THOUGHT DAY = “Less micro-managing. Cool.”

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UNIT OF $ THOUGHT WEEK = “Finally, big picture thinking. We’re geniuses.”

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WHAT I’M LEARNING

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COSTS LEARNING YOURS =

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COSTS LEARNING YOURS = Your concern.

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COSTS LEARNING YOURS = Your concern. Your benefit.

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COSTS LEARNING YOURS = Not the concern of your client.

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COSTS LEARNING Affect whether you can profitably provide requested value, but -

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COSTS LEARNING Should not dictate compensation for the value you produce.

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PRICING LEARNING

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PRICING LEARNING VALUE =

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PRICING LEARNING VALUE = Me: “Of course. Duh.”

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Instead of negotiating price, negotiate value. Clients aren’t price conscious, they’re value conscious. – Ron Baker “ ”

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TOTAL VALUE = YOU THE VALUE CLIENT VALUE FOR + CHARGE FOR TO REAP

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PRODUCED TOTAL VALUE CLIENT VALUE FOR – TO REAP aka THE VALUE YOU CHARGE FOR =

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UNIT OF $ LEARNING

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UNIT OF $ LEARNING VALUE =

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UNIT OF $ LEARNING VALUE = Me: “Dammit. Of course, double duh.”

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VALUE BILLING LEARNING ≠ VALUE PRICING

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VALUE BILLING LEARNING ≠ Pricing is proactive. Billing is reactive. VALUE PRICING

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MORE HONEST LEARNING VALUE PRICING is

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MORE HONEST LEARNING VALUE PRICING is By aligning designer & client incentives.

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MORE FAIR LEARNING VALUE PRICING is

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MORE FAIR LEARNING VALUE PRICING is To you and your client.

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MORE FLEXIBLE LEARNING VALUE PRICING is

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MORE FLEXIBLE LEARNING VALUE PRICING is Compensation can come in many forms.

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MORE PROFITABLE LEARNING VALUE PRICING is

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MORE PROFITABLE LEARNING VALUE PRICING is Costs no longer dictate / limit your value.

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SCOPE OF VALUE LEARNING based upon VALUE PRICING

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SCOPE OF VALUE LEARNING based upon VALUE PRICING Instead of scope of work.

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THEREFORE, VALUE PRICING

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CONVERSATION THEREFORE VALUE PRICING is a

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CONVERSATION THEREFORE VALUE PRICING is a Up-front dialogue & discovery with client.

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How can we get best compensated for the value we produce? “ ” $

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VALUE SEPARATE

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COSTS AND

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VALUE COSTS = REALLY, TRULY

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KILL YOUR HOURLY RATE MAKE EVERY EFFORT TO

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SO YOU CAN TIE YOUR UNIT OF PAYMENT VALUEproduced instead. to the

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TO LEARN WHAT A CLIENT VALUES TAKE THE TIME AND EFFORT

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TO HELP MAKE THOUGHTFUL PRICING one of your core competencies.

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YOUR BUSINESS =

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YOUR BUSINESS = YOUR DESIGN

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YOUR BUSINESS = YOUR DESIGN Design it thoughtfully & purposefully, as you would anything else.

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@ClaytonFarr FORMexperience.com THANK YOU

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LEARN MORE Businessologyshow.biz Dan Mall & Jason Blumer Positioning for Professionals Tim Williams Implementing Value Pricing Ron Baker