Design Speaks Business - XD Leadership Alliance - 10.30.2018

Slide 1

Slide 1 text

FINANCIAL EXPERIENCE DESIGN 2018 Design Speaks Business Approaches to communicate the business viability of design Ryan Rumsey @ryanrumsey

Slide 2

Slide 2 text

Innovation Source: Norman, D. A., & Verganti, R. (2014). Incremental and radical innovation: Design research versus technology and meaning change. Design Issues, 30(1), 78-96. WE KEEP USING THIS WORD

Slide 3

Slide 3 text

Radical Incremental Innovation Source: Norman, D. A., & Verganti, R. (2014). Incremental and radical innovation: Design research versus technology and meaning change. Design Issues, 30(1), 78-96. WE KEEP USING THIS WORD

Slide 4

Slide 4 text

Radical Incremental Improvements within a given frame of solutions (i.e., “doing better what we already do”) A change of frame (i.e., “doing what we did not do before”) Innovation Source: Norman, D. A., & Verganti, R. (2014). Incremental and radical innovation: Design research versus technology and meaning change. Design Issues, 30(1), 78-96. WE KEEP USING THIS WORD

Slide 5

Slide 5 text

Radical Incremental Improvements within a given frame of solutions (i.e., “doing better what we already do”) A change of frame (i.e., “doing what we did not do before”) Innovation NOVEL UNIQUE ADOPTED Source: Norman, D. A., & Verganti, R. (2014). Incremental and radical innovation: Design research versus technology and meaning change. Design Issues, 30(1), 78-96. WE KEEP USING THIS WORD

Slide 6

Slide 6 text

Radical Incremental Improvements within a given frame of solutions (i.e., “doing better what we already do”) A change of frame (i.e., “doing what we did not do before”) Innovation NOVEL UNIQUE ADOPTED Source: Norman, D. A., & Verganti, R. (2014). Incremental and radical innovation: Design research versus technology and meaning change. Design Issues, 30(1), 78-96. WE KEEP USING THIS WORD

Slide 7

Slide 7 text

CHANGING MINDSETS SIGNIFICANT INVESTMENTS POPULAR CULTURE THE STATE OF DESIGN Design is very en vogue Source: Idea by Creative Stall from the Noun Project; Investment by Creative Stall from the Noun Project; e-book by Creative Stall from the Noun Project

Slide 8

Slide 8 text

IT WORKED! Design Business Technology Our favorite Venn

Slide 9

Slide 9 text

IT WORKED! Design Business Technology Our favorite Venn Innovation

Slide 10

Slide 10 text

ELEVATED AND CELEBRATED FINANCE LEGAL BUSINESS HR TECHNOLOGY OPERATIONS MARKETING RISK SECURITY CEO STRATEGY THE TABLE Businesses are transforming

Slide 11

Slide 11 text

ELEVATED AND CELEBRATED FINANCE LEGAL BUSINESS HR TECHNOLOGY OPERATIONS MARKETING RISK SECURITY CEO STRATEGY THE TABLE Businesses are transforming DESIGN

Slide 12

Slide 12 text

IF IT AIN’T BROKE So, why I am here?

Slide 13

Slide 13 text

A DESIGNERS PERSPECTIVE ON RANKING PRIORITIES Source: https://medium.com/@katearonowitz/who-sets-your-priorities-6283910549c0; https://twitter.com/mrabdussalam/status/923902822969733121 1. User 2. Business 3. Team 4. Self - Kate Aronowitz; Design Partner at GV

Slide 14

Slide 14 text

Slide 15

Slide 15 text

Slide 16

Slide 16 text

NEW CHALLENGES, SAME SONG How do your business partners perceive the value of design in your organization?

Slide 17

Slide 17 text

NEW CHALLENGES, NEW PERSPECTIVE How do your business partners perceive the value of design work in your organization?

Slide 18

Slide 18 text

A TREND I’M NOTICING FROM THE TOP While many companies have invested significantly in design, investment in design work is often still questioned.

Slide 19

Slide 19 text

COMMUNICATING VALUE Source: Tom Mulhern and Steve Portigal Same language, different expectations Design Business Talks about… Innovation Breakthroughs Disruption Results Impact

Slide 20

Slide 20 text

COMMUNICATING VALUE Source: Tom Mulhern and Steve Portigal Same language, different expectations Expects… Schedules Agendas Examples Proof Numbers Expects… Trust & Patience New behavior New thinking “Imagination”  “Creativity” Design Business Talks about… Innovation Breakthroughs Disruption Results Impact

Slide 21

Slide 21 text

COMMUNICATING VALUE Source: Tom Mulhern and Steve Portigal Same language, different expectations Expects… Schedules Agendas Examples Proof Numbers Expects… Trust & Patience New behavior New thinking “Imagination”  “Creativity” = misalignment Design Business Talks about… Innovation Breakthroughs Disruption Results Impact

Slide 22

Slide 22 text

Design Business Technology FRAMING VALUE FROM EACH LENS

Slide 23

Slide 23 text

FRAMING VALUE FROM EACH LENS Desirability Will this be adopted by our users? Viability Is this good for business? Feasibility Can this be executed?

Slide 24

Slide 24 text

FRAMING VALUE FROM EACH LENS Desirability Will this be adopted by our users? Viability Is this good for business? Feasibility Can this be executed? Ever notice these circles overlap?

Slide 25

Slide 25 text

FRAMING VALUE FROM EACH LENS Desirability Will this be adopted by our users? Viability Is this good for business? Feasibility Can this be executed? According to this Venn, designers should spend ~20% of their time demonstrating how desirability is good for business.

Slide 26

Slide 26 text

Slide 27

Slide 27 text

THE STAKES ARE HIGH FINANCE LEGAL BUSINESS HR TECHNOLOGY OPERATIONS MARKETING RISK SECURITY CEO STRATEGY THE TABLE DESIGN

Slide 28

Slide 28 text

IT WON’T BE EASY The most difficult challenge I’ve had in my career is not designing for users, it’s designing for my colleagues and stakeholders.

Slide 29

Slide 29 text

WHO IS THIS PERSON? Hi. I’m Ryan.

Slide 30

Slide 30 text

WHO IS THIS PERSON? An Experience Strategy is how we create market differentiation with a distinct experience offering.

Slide 31

Slide 31 text

WHO IS THIS PERSON? The Experience Strategy team provides a novel approach to management consulting to address the gaps between business and design strategy.

Slide 32

Slide 32 text

WHO IS THIS PERSON? The Experience Strategy team applies design and business methodologies with the objective of determining the business viability of experiences.

Slide 33

Slide 33 text

PERSPECTIVE ON MY THINKING UX CX

Slide 34

Slide 34 text

PERSPECTIVE ON MY THINKING The perceived value customers have in interactions with your company. The perceived value users have in interactions with your product or service. UX CX

Slide 35

Slide 35 text

A TINY PIECE OF A LARGER COLLABORATION Business Technology FINANCE LEGAL HR OPERATIONS MARKETING RISK SECURITY STRATEGY

Slide 36

Slide 36 text

A TINY PIECE OF A LARGER COLLABORATION Business Technology Design FINANCE LEGAL HR OPERATIONS MARKETING RISK SECURITY STRATEGY

Slide 37

Slide 37 text

A WORLD OF METRICS Surrounded by metrics focused on driving “what” and “how” decisions.

Slide 38

Slide 38 text

TAKING THE PERSPECTIVE OF MY PARTNERS DX (Design Experience) The perceived value colleagues and stakeholders have in interactions with my design work and our design teams.

Slide 39

Slide 39 text

THE STAKES ARE HIGH FINANCE LEGAL BUSINESS HR TECHNOLOGY OPERATIONS MARKETING RISK SECURITY CEO STRATEGY THE TABLE DESIGN

Slide 40

Slide 40 text

NEW CHALLENGES, SAME APPROACH Articulating how design work fits into business processes is a design problem to solve.

Slide 41

Slide 41 text

FRAMING PERCEIVED VALUE = Perceived Value Perceived Benefits - Costs Costs

Slide 42

Slide 42 text

READING BETWEEN THE LINES To calculate value, designers must do better with calculating the benefits of their contributions.

Slide 43

Slide 43 text

PERCEIVED VALUE “The key to deliver high perceived value is attaching value to each of the individuals or organizations — making them believe that what you are offering is beyond expectation — helping them to solve a problem, offering a solution, giving results, and making them happy.” - Izhar Oplatka Source: The Management and Leadership of Educational Marketing: Research, Practice and Applications (Advances in Educational Administration)

Slide 44

Slide 44 text

NEW CHALLENGES We need to frame the value of design work to business leaders by framing the value of design work through business lenses.

Slide 45

Slide 45 text

REFRAME DESIGN VALUE Welcome to bSchool! (How might we leverage design to develop business potential)

Slide 46

Slide 46 text

LEVERAGING OUR COMFORT ZONES 1. Embrace business culture 2. Remix your craft 3. Do the math 4. Put it all together

Slide 47

Slide 47 text

EMBRACE BUSINESS CULTURE 1. Culture is a manifestation of process. Source: growth chart by Creative Stall from the Noun Project; air balloon by Creative Stall from the Noun Project; Planning by Creative Stall from the Noun Project LEVERAGE BUSINESS TOOLS SHOW ADOPTION USE CASE STUDIES

Slide 48

Slide 48 text

SETTING THE PACE AND QUALITY OF DECISION MAKING Business leaders are accountable for setting the pace and quality of decision making

Slide 49

Slide 49 text

WIDE RANGING Some lenses of business EMPLOYEE VALUE ECONOMIC VALUE CUSTOMER VALUE PARTNER VALUE SHAREHOLDER VALUE SOCIETAL VALUE ORGANIZATIONAL DESIGN BUSINESS PROCESSES PROCESS DESIGN STRATEGIC DIRECTION PERFORMANCE METRICS SUPPLIER VALUE

Slide 50

Slide 50 text

What do they need buying? “What am I paying for?” EMBRACE BUSINESS CULTURE

Slide 51

Slide 51 text

Inspiration: Leah Buley, Co. COMPETITIVE FORCES MARKET OPPORTUNITY DIFFERENTIATION A PLAN Key concerns informing business HUMAN INSIGHTS INSPIRATION/VISION CHARACTERISTICS BREADTH & DEPTH Key concerns informing design <— What’s happening around us? —> <— What do people need? —> <— How can we uniquely help? —> <— What would that look like? —> <— What do we need to do? —> DESIGN TRENDS RESOURCE ALLOCATION Know where alignment is EMBRACE BUSINESS CULTURE

Slide 52

Slide 52 text

FINANCE LEGAL BUSINESS HR TECHNOLOGY OPERATIONS MARKETING RISK SECURITY CEO STRATEGY THE TABLE DESIGN How does the table communicate? EMBRACE BUSINESS CULTURE

Slide 53

Slide 53 text

Vision and Strategy Financial “To succeed ﬁnancially, how should we appear to our stakeholders?” Objectives Measures Targets Initiatives Customer “To achieve our vision, how should we appear to our customers?” Objectives Measures Targets Initiatives Learning & Growth “To achieve our vision, how will we sustain our ability to change and improve?” Objectives Measures Targets Initiatives Internal Business Process “To satisfy our shareholders and customers, what business processes must we excel at?” Objectives Measures Targets Initiatives EMBRACE BUSINESS CULTURE How is success communicated?

Slide 54

Slide 54 text

EMBRACE BUSINESS CULTURE How is progress communicated?

Slide 55

Slide 55 text

EMBRACE BUSINESS CULTURE Stars Question Marks Cash Cows Dogs High Market Share Low Market Share High Industry Growth Low Industry Growth Cost Leadership Differentiation Focus Cost Focus Differentiation Cost Differentiation Narrow Broad Porter’s Generic Strategies BCG Portfolio Evaluation Market Penetration Product Development Market Development Diversiﬁcation Existing New Existing New Products & Services Markets Porter’s Growth Strategies How was the business model determined?

Slide 56

Slide 56 text

EMBRACE BUSINESS CULTURE How do vendors ensure accountability? SLAs 1. We work in JIRA. Every request must be accompanied by a JIRA ticket. 2. We respond to all design requests within 24 (business) hrs. 3. Every request will be followed up by a Kickoff Meeting. 4. If no Kickoff Meeting is needed for a request, we will close the ticket. 5. We will provide a Plan & Estimate (based off the Kickoff Meeting) for every request within 10 business days. 6. Work will only be backlogged when the Plan & Estimate are approved by both Design and the LOB. 7. Work will only be prioritized within a bi-weekly planning meeting. If you don’t show to the meeting, your work won’t be prioritized. 8. If feedback has not been provided within 5 business days, the ticket will be blocked.

Slide 57

Slide 57 text

Same song, new verse SWOT Scenario 1 Strengths Weaknesses Opportunities Threats • No extra cost expenditures towards capabilities or planning • Resources will not be allocated and can be focused on business as usual tasks • Flat cost structure will not impact enterprise operational expense ratio among other key scorecard metrics • No remarkable growth can be expected outside of increasing productivity • Members will continue to have to re-inform representatives in the phone channel of their situation • Members will continue to not be adequately in marketing messages • Resources not spent on new capabilities could be directed towards training and employee incentives • Allows for further research and on current economic climate and focus on other potential future opportunities • Flat expenditures allow for other areas of the enterprise to focus on market disruptive endeavors • USAA remains vulnerable to market disruption • Member satisfaction may diminish as experience expectations grow across the industry • Decreased member retention and utilization as their needs remain unfulfilled • Sub-optimal mission fulfillment Balanced Scorecard Experience Score 84.00% B Business Performance 86.9% B Technical Performance 91.9% A Adoption 64.5% D Communication 87.9% B EMBRACE BUSINESS CULTURE

Slide 58

Slide 58 text

REMIX YOUR CRAFT 2. Colleagues and stakeholders are human too! APPLY DESIGN TRAITS APPLY KNOWN FRAMEWORKS SELL SOMETHING ELSE

Slide 59

Slide 59 text

What are the traits of great designers? REMIX YOUR CRAFT

Slide 60

Slide 60 text

What jobs do your colleagues and stakeholders need to get done? REMIX YOUR CRAFT

Slide 61

Slide 61 text

How does the value proposition of design work align with those jobs-to-be- done? REMIX YOUR CRAFT

Slide 62

Slide 62 text

What do your colleagues think vs. feel? Say vs. do? REMIX YOUR CRAFT

Slide 63

Slide 63 text

How many of you have a journey map, conducted a diary study, or simply observed your colleagues and stakeholders to understand their pains and gains? REMIX YOUR CRAFT

Slide 64

Slide 64 text

REMIX YOUR CRAFT Exercise: What do your colleagues and stakeholders value? Strategyzer, https://strategyzer.com/canvas/value-proposition-canvas ; http://www.givegoodux.com/getting-stakeholder-buy-in-for-ux-work/

Slide 65

Slide 65 text

REMIX YOUR CRAFT Exercise: What do your colleagues and stakeholders value? (10 minutes) • Take 5 minutes to identify the jobs, gains, and pains of your colleagues and stakeholders. • Take 1 minute each to quickly shape a new value proposition for design work from your team. • Take 1 minute each to share.

Slide 66

Slide 66 text

DO THE MATH! 3. The scary portion of the talk! Source: success by Creative Stall from the Noun Project; banking by Creative Stall from the Noun Project; ﬂow diagram by Creative Stall from the Noun Project LEVERAGE BUSINESS ASSUMPTIONS IDENTIFY OPTIONS QUANTIFY PROJECTED ROI

Slide 67

Slide 67 text

DO THE MATH! Desirability meets viability through numbers

Slide 68

Slide 68 text

ROI OF RETENTION - A HYPOTHETICAL SCENARIO = x x Number   of customers Annual customers value Projected rate   minus  current rate Incremental dollars   earned $1,900,000 x (12% - 10%) $100 $3.8 million x = for example Start with business assumptions

Slide 69

Slide 69 text

= x x Number   of customers Annual customer value Projected rate   minus  current rate Incremental dollars   earned $1,900,000 x (12% - 10%) $100 $3.8 million x = for example ROI OF RETENTION - A HYPOTHETICAL SCENARIO

Slide 70

Slide 70 text

Slide 71

Slide 71 text

Slide 72

Slide 72 text

= x x Number   of customers Annual customer value Projected rate   minus  current rate Incremental dollars   earned $1,900,000 x (12% - 10%) $100 $3.8 million x = for example This is business viability. Costs can’t exceed this! Behind this is a segment. That segment may contain one or more personas to align to. Here’s your target to test different solutions against. In this hypothetical, can we project an increase in retention? ROI OF RETENTION - A HYPOTHETICAL SCENARIO

Slide 73

Slide 73 text

Slide 74

Slide 74 text

ROI OF RETENTION - A HYPOTHETICAL SCENARIO (12% - 10%) Here’s your target to test different solutions against. In this hypothetical, can we associate an increase in retention with a prototype or test? Identify options for testing. Options drive accountability. TEST B (TIME ON TASK) TEST A (DO NOTHING) TEST C (SATISFACTION %)

Slide 75

Slide 75 text

Show costs and benefits of each option Year 1 Year 2 Year 3 Total (Present Value) Total (Risk Adjusted) Total beneﬁts $1,500,000 $3,600,000 $4,100,000 $3,800,000 Total costs -$500,000 -$200,000 -$100,000 $800,000 $1,000,000 Net Cash Flow -$-500,000 $800,000 $3,300,000 $3,300,000 $2,800,000 Total ROI 280% PUTTING IT ALL TOGETHER - DO THE MATH

Slide 76

Slide 76 text

PUTTING IT ALL TOGETHER 4. Recommendations for a business case. Source: notes by Creative Stall from the Noun Project; banking by Creative Stall from the Noun Project; Checklist by Creative Stall from the Noun Project; teamwork by Creative Stall from the Noun Project EXECUTIVE SUMMARY PROJECT DEFINITION FINANCIALS PROJECT ORGANIZATION

Slide 77

Slide 77 text

FINAL THOUGHT Investing in design work is a business decision. Business leaders will prioritize design perspectives of users when it’s good for business. When it’s good for business, the perceived benefits of design work become actual business value.

Slide 78

Slide 78 text

Ryan Rumsey @ryanrumsey Thank you!