Establishing A Kick-Ass Innovation Practice UX Australia Design Leadership 2022 

Methodry helps organisations create new customer-centric strategies, products, services, experiences and ways of working. We combine the art, science and our expertise in design-led innovation to help you make innovation unstoppable. We help teams build their innovation mastery and work alongside them to innovate on their most important challenges. Our tailored and collaborative approach with proven methods results in a smoother, faster and more successful innovation experience. 

Organisations we’ve helped innovate 

Some of our thinking in this space 

Session agenda: 1. The age of the design practice 2. 4 steps to kick-ass 3. Discussion 

Innovation is one of the most important, endeavours of modern times The Innovation Challenge 

Yet, innovation is hard! “95% of innovations fail” Clayton Christensen, Harvard Business School professor “Most start-ups fail” Eric Ries, start-up guru and author of Lean Startup “7 out of 10 new products fail to deliver on expectations” Alexander Osterwalder, author and creator of the Business Model Canvas 

Pursuit of the holy grail 02 INNOVATION EXPLORATION Design-Led Innovation being trialed in select teams/projects 03 ADHOC INNOVATION WINS Actively applying Design-Led Innovation on different business challenges and building confidence 04 DISCIPLINED INNOVATION PRACTICE Sub-scale mastery in Design-Led Innovation 05 INNOVATION CULTURE Integrated in all aspects of the culture, as a sustainable way of working 01 NON-INNOVATION May have heard of Design-Led Innovation, but not actively considering it ©Methodry 

The rise of the internal design and innovation practices Photo by Jason Goodman on Unsplash 

Four types of design practices by contrasting funding and mandate LOW HIGH LEVEL OF FUNDING ORGANISATIONAL WIDE MANDATE LOW HIGH 

Four types of design practices by contrasting funding and mandate LOW HIGH EMPOWERED BOOT- STRAPPING ORGANISATIONAL WIDE MANDATE GUERRILLA/ UNDERGROUND ISOLATED/ ROGUE LOW HIGH LEVEL OF FUNDING 

Setting yourself up for success My top 5 criteria 1. Mandated from the CEO down 2. Good funding 3. Product ownership / A customer 4. Integrated and aligned 5. A top 5 priority and on the up 

Session agenda: 1. The age of the design practice 2. 4 steps to kick-ass 3. Discussion 

A brewery, a nation, a bank and a big 4 firm 2007 – 2013 Various coaching roles on the design- integration program for small to medium size enterprises 2005 – 2007 Establishing a product innovation team for DB Breweries 2014 – 2016 Leading the design and delivery of Commonwealth Bank’s Design Thinking and Experimentation programs. 2017 – 2019 Establishing and scaling KPMG’s HCD practice Lessons learnt from 20 years establishing and scaling Design-led Innovation at a team, organisation and country level. 

Establishing a kick-ass design practice 4 critical steps 03 TO DESIGN WE MUST SELL 02 SET THE STRATEGY 01 SKELETON TEAM 04 RESOURCING TO SCALE UP 

01 Skeleton Team Photo by Mathew Schwartz on Unsplash 

Think Sell Deliver Foundation design squad What’s the minimum you need to launch? 

BAU Units + Customer Insight Head of Innovation Innovation PMO Foundation design squad DB Breweries 

The Firm + Customer Practice (1 Partner and team of 12-15) Foundation design squad KPMG 

02 Set the Strategy 

Kick-ass innovation teams have a clear innovation strategy. They know who they are, level of innovation ambition, goals and focus areas. Set the strategy 

Sets goals and timelines A portfolio mindset - balances short term with long term and core with breakthrough Gives focus through opportunity areas (where to play) Outlines plans for developing each opportunity (roadmaps) Set the strategy 

Set the strategy Define what levels of innovation you are pursuing What works well: Continuously improving the core whilst inventing what’s next WHERE TO PLAY HOW TO WIN Create new markets, target new customer needs Enter adjacent markets, serve adjacent customers Serve existing markets and customers Use existing products and assets Add incremental assets Develop new products and assets CORE Optimising existing products for existing customers EVOLUTIONARY Expanding from existing business into ‘new to the company’ business REVOLUTIONARY Developing breakthroughs and inventing things for markets that don’t yet exist 

Set the strategy Where to play using the 5W’s Who What Why When Where What new, existing, lapsed customers do we want to target? What new, products, services & technology exist? What needs do we want to solve for? What are the occasions we want to play in? What are the locations we want to play in? 

Set the strategy DB Breweries Co-designed with a wide spectrum of people to ensure both diversity of inputs and broad buy-in 

Set the strategy DB Breweries – 2-day workshop INSPIRATION BANK OUT OPPORTUNITIES HARVEST CRAFT RINSE & REPEAT 

Set the strategy DB Breweries – prioritised into a roadmap STAGE 0 STRATEGY STAGE 01 DISCOVERY STAGE 02 CONCEPT STAGE 03 DEVELOPMENT STAGE 04 LAUNCH PREPARATION STAGE 05 LAUNCH GATE 01 GATE 02 GATE 04 GATE 05 GATE 03 BUSINESS CASE Innovation process 

Set the strategy ATO Design Branch Where the design branch will focus and how they’ll deploy: Partner End to End Level of Support Priorities Partner Front End Guide Advise Working side by side Working side by side Facilitate Coach High / Revolutionary High / Revolutionary Medium / Evolutionary Low / Core 

03 To design we must sell 

No matter the practice, selling is essential LOW HIGH EMPOWERED BOOT- STRAPPING ORGANISATIONAL WIDE MANDATE GUERRILLA/ UNDERGROUND ISOLATED/ ROGUE LOW HIGH LEVEL OF FUNDING 

As designers we often must lead through persuading, convincing and influencing. We work across the organisation and must enlist the help of most, if not all, departments, but without line authority. To design we must sell 

To design we must sell Setting up the KPMG HCD Practice LOW HIGH ORGANISATIONAL WIDE MANDATE LOW HIGH LEVEL OF FUNDING 

The gig… Partner - establish and scale the Human Centred Design Practice. Existing Customer Practice – 1 partner and a team of 12-15 600 partners, 10,000 employees To design we must sell KPMG HCD Practice 

Eat what you kill... Revenue KPI’s of $x million p.a. Solution: tap into their contacts Barrier: they were already hitting their targets, so why would they bother? To design we must sell KPMG HCD Practice Photo by jeshoots.com on Unsplash 

Finding the collaborators: Adopt a push and pull strategy Kiss enough frogs Don’t try and convert the heathens Design Thinking Leads To design we must sell KPMG HCD Practice Awareness Interest Consideration Intent Purchase Loyalty 

Finding the collaborators To design we must sell KPMG HCD Practice HUNGRY FIXED Tunnel vision Collaborators Fat Cats Make it easy for me MINDSET AMBITION OPEN COMFORTABLE 

To create economic transformation by integrating design into small to medium enterprises. To design we must sell NZTE Better by Design 

To design we must sell NZTE Better by Design Source: Adapted from Better by Design ENROLMENT PLAY 1 PLAY 2 BOOTCAMP PLAY 3 etc WAYPOINT ALUMNI BUILDING CAPABILITY LEARNING BY DOING Identify potential companies for the programme Experience the value of design thinking and identify first Plays To learn by doing by applying design thinking to specific challenges Pause, measure, reflect and decide next Plays Graduation into alumni of active design integrated companies G2 G1 G3 Determine if the CEO is committed to do the Bootcamp Agree if the company is committed & should start the programme Review to continue, leave or graduate 

Lessons learnt: CEO Summit - aspirational draw card, art of the possible CEO Enrolment/G1 – checking interest and commitment, potential and capability (2-way street) Bootcamp – generosity, try before you buy (assessing client at same time) Study Tour – insights and ideas, created conviction Alumni – peer learning network, opportunity to give back (exemplars, case studies, study visits, staff swaps) To design we must sell NZTE Better by Design 

04 Resourcing to scale up 

Resourcing to scale up Create the resources to match your innovation ambition levels What works well: Centralised teams (and funding model) for breakthrough innovation and innovating within the BAU units for core innovation. CORE 70% RESOURCES ADJACENT 20% RESOURCES BREAKTHROUGH 10% RESOURCES 

Resourcing to scale up Design structures that accelerate different types of innovation Tips: Breakthrough innovation requires executive support and extra as well as different resources from running the core. Hire, acquire, train, partner and network to gain access to talent. CORE SPECIALISTS BAU BREAK- THROUGH 

To maintain their technology innovation leadership in the financial services sector, CBA identified the need to increase the innovation capability of their 5000 strong technology group. Resourcing to scale up CBA Design Thinking & Experimentation 

EXPERT 150 ADVANCED 250 SOUND 1000 AWARE 3600 Resourcing to scale up CBA Design Thinking & Experimentation 11 DAYS OF TRAINING REAL COMPANY PROJECTS STUDY VISITS TRAIN THE TRAINER CO-TRAINED SOUND TRAINED AWARE 4 DAYS OF TRAINING REAL COMPANY PROJECTS 2 DAYS OF TRAINING REAL WORLD PROJECTS ½ DAY TRAINING REAL WORLD PROJECTS 

Lessons learnt: Challenge: no previous innovation background How do I build my DT reputation? Silo mentality: only trained the technology group Challenge of rolling out DT on top of their day job Sheep dipping everyone Continuous engagement of leadership Vanguard for success across the bank e.g., innovation lab Resourcing to scale up CBA Design Thinking & Experimentation 

Resourcing to scale up KPMG HCD Practice TRAIN RESEARCH CONSULTANCY KPMG CONSULTANTS ACQUIRE HIRE CORE HCD TEAM 

03 DO ONE 02 SEE ONE 01 RECRUIT 3-day intensive training • Ran in Sydney and Melbourne • 48 participants • Assessed participants for potential Outcomes • A base of trained consultants across the firm and country • Talent ID Application to real projects • Brought them in on client projects and workshops Outcomes • Further upskilling • Further assessment of attitude and aptitude 04 TEACH ONE 05 SCALE Train the trainer program • 2-day train the trainer program • Select group of 12-18 Outcomes • Strong core cohort • Ability to scale across the firm • Free up my time Rolled out across the firm • Rolled out by trained trainers • Worked with People and Culture • Firm wide across MC, Tax and Audit Outcomes • Firm wide capability • Firm wide endorsers and sales team • Legacy Call for applications • Advertised opportunity internally • Limited spaces • Geographical and organisational spread Outcomes • Created scarcity and desire • Motivated applicants Resourcing to scale up KPMG HCD Practice – Train 

Lessons learnt: Missed opportunity to build a stronger community of practice with regular get togethers Handing over responsibility of scaling HCD to trained trainers resulted in some dilution of training expertise and impact Stay closer to selection and development of train the trainer cohort Resourcing to scale up KPMG HCD Practice 

Establishing a kick-ass design practice 4 critical steps 03 TO DESIGN WE MUST SELL 02 SET THE STRATEGY 01 SKELETON TEAM 04 RESOURCING TO SCALE UP 

Thank you! Innovator’s Playbook www.methodry.com/books NATHAN BAIRD FOUNDER & MANAGING DIRECTOR +61(0)448 133 882 [email protected] SYDNEY AUSTRALIA