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Design Meets Business; Design Thinking 2019

Ryan Rumsey
June 25, 2019

Design Meets Business; Design Thinking 2019

Congratulations design leaders! With the popularity of Design Thinking, Design Sprints, Human-Centered Design, etc., and the business value design has created for companies like Apple, Intuit, Atlassian, Nike, Whirlpool, and Walt Disney, Design has earned its seat at the table. We made it!

But with great successes come greater expectations. As design leaders have taken their seats, business leaders continue to struggle with understanding the value design brings to everyday processes, funding decisions, resource allocations, and overall business viability. At this table, designers are often outmatched by counterparts in articulating the value of their work. Without being able to clearly articulate that value, design leaders run the risk of being pushed back into service line or peripheral entities.

In this talk, I review approaches to connect design success to business success, to use design skills to develop business potential, and to justify design keeping a seat at the table. Welcome to bSchool.

- Developing new perspectives of colleagues and stakeholders to overcome perceptions and bias
- Embracing a business lens to communicate more effectively
- Aligning desirability to business viability through numbers

Ryan Rumsey

June 25, 2019
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  1. An Experience Strategy is how to create market di!erentiation with

    a distinct product or service o!ering. DESIGN MEETS BUSINESS @RYANRUMSEY
  2. Our team brings a novel means to management consulting; addressing

    gaps between business, product and design strategy. DESIGN MEETS BUSINESS @RYANRUMSEY
  3. We apply design and business methodologies with the objective of

    determining the business viability of experiences. DESIGN MEETS BUSINESS @RYANRUMSEY
  4. The perceived value customers have in interactions with your company.

    The perceived value users have in interactions with your product or service. UX CX DESIGN MEETS BUSINESS @RYANRUMSEY Past influence Source: https://www.forrester.com/report/Demystifying+The+Language+Of+CX+And+UX/-/E-RES144655
  5. Design Experience DESIGN MEETS BUSINESS @RYANRUMSEY The perceived value colleagues

    and stakeholders have in interactions with design work and design teams.
  6. Source: https://www.amazon.com/Dark-Matter-Trojan-Horses-Vocabulary/dp/0992914639 DESIGN MEETS BUSINESS @RYANRUMSEY “For all the value

    they could create, too o"en designers appear naive in the face of genuinely understanding cultures of decision-making.” - Dan Hill, Dark matter and trojan horses. A strategic design vocabulary.
  7. Why am I here? Many business leaders are still struggling

    to understand the value design brings to everyday processes, funding decisions, resource allocations, and overall business viability… DESIGN MEETS BUSINESS @RYANRUMSEY
  8. Why am I here? O"en resulting in false starts, team

    frustrations, colleague and stakeholder confusion, and employee turnover. DESIGN MEETS BUSINESS @RYANRUMSEY
  9. Why is this? DESIGN MEETS BUSINESS @RYANRUMSEY 1. The perceived

    value of design. 1 2. The parlance of our times. 2 3. The priorities of prioritizing. 3
  10. The perceived value of design. 1 = Perceived Value Perceived

    Benefits - Costs Costs DESIGN MEETS BUSINESS @RYANRUMSEY
  11. The perceived value of design. 1 DESIGN MEETS BUSINESS @RYANRUMSEY

    How do your business partners perceive the bene"ts of design in your organization?
  12. The perceived value of design. 1 DESIGN MEETS BUSINESS @RYANRUMSEY

    How do your business partners perceive the bene"ts of design work in your organization?
  13. The perceived value of design. 1 DESIGN MEETS BUSINESS @RYANRUMSEY

    Designers must do better with recognizing these perception problems.
  14. The parlance of our times. 2 DESIGN MEETS BUSINESS @RYANRUMSEY

    Words are funny and we keep using them.
  15. The parlance of our times. 2 DESIGN MEETS BUSINESS @RYANRUMSEY

    Expects… Schedules Agendas Examples Proof Numbers Expects… Trust & Patience New behavior New thinking “Imagination”
 “Creativity” Design Business Talks about… Innovation Breakthroughs Disruption Results Impact Source: Tom Mulhern and Steve Portigal Same language, di!erent expectations?
  16. The parlance of our times. 2 DESIGN MEETS BUSINESS @RYANRUMSEY

    Source: Leah Buley, Co There are some overlaps—and some gaps. BUSINESS STRATEGY XD STRATEGY COMPETITIVE FORCES ? What’s happening around us? MARKET OPPORTUNITY HUMAN INSIGHTS What do people need? DIFFERENTIATION XD CHARACTERISTICS How can we uniquely help? ? INSPIRATION & VISION What would that look like? A PLAN XD BREADTH & DEPTH What do we need to do? Overlaps and gaps in meaning.
  17. The parlance of our times. 2 DESIGN MEETS BUSINESS @RYANRUMSEY

    Lack of clarity in what we mean = misalignment.
  18. The priorities of others. 3 DESIGN MEETS BUSINESS @RYANRUMSEY 1.

    User 2. Business 3. Team 4. Self - Kate Aronowitz; Design Partner at GV Source: https://medium.com/@katearonowitz/who-sets-your-priorities-6283910549c0; https://twitter.com/mrabdussalam/status/923902822969733121
  19. The priorities of others. 3 DESIGN MEETS BUSINESS @RYANRUMSEY 1.

    User 2. Business 3. Team 4. Self - Kate Aronowitz; Design Partner at GV Source: https://medium.com/@katearonowitz/who-sets-your-priorities-6283910549c0; https://twitter.com/mrabdussalam/status/923902822969733121
  20. The priorities of others. 3 DESIGN MEETS BUSINESS @RYANRUMSEY 1.

    User 2. Business 3. Team 4. Self - Kate Aronowitz; Design Partner at GV Source: https://medium.com/@katearonowitz/who-sets-your-priorities-6283910549c0; https://twitter.com/mrabdussalam/status/923902822969733121
  21. The priorities of others. 3 DESIGN MEETS BUSINESS @RYANRUMSEY Design

    Business Technology Are you prioritizing the overlap?
  22. The priorities of others. 3 DESIGN MEETS BUSINESS @RYANRUMSEY Ever

    notice these circles overlap? Design Business Technology Are you prioritizing the overlap?
  23. The priorities of others. 3 DESIGN MEETS BUSINESS @RYANRUMSEY Ever

    notice these circles overlap? Business partners are embracing this overlap with Design Thinking. They are closer to design than designers are to business. Design Business Technology Are you prioritizing the overlap?
  24. The priorities of others. 3 DESIGN MEETS BUSINESS @RYANRUMSEY Ever

    notice these circles overlap? Business partners are embracing this overlap with Design Thinking. They are closer to design than designers are to business. Designers should be spending ~20% of their time embracing this overlap. Design Business Technology Are you prioritizing the overlap?
  25. The priorities of others. 3 DESIGN MEETS BUSINESS @RYANRUMSEY 1.

    User 2. Business 3. Team 4. Self - Kate Aronowitz; Design Partner at GV Source: https://medium.com/@katearonowitz/who-sets-your-priorities-6283910549c0; https://twitter.com/mrabdussalam/status/923902822969733121
  26. The priorities of others. 3 DESIGN MEETS BUSINESS @RYANRUMSEY Prioritization

    is hard and to do it well, it requires less "nger- pointing.
  27. Design Business Technology DESIGN MEETS BUSINESS @RYANRUMSEY How do I

    know I have it? Is it Design Thinking? Is it UX? Is it Product Management? Is it Innovation? This Venn means many di!erent things at once!
  28. Innovation DESIGN MEETS BUSINESS @RYANRUMSEY Source: Norman, D. A., &

    Verganti, R. (2014). Incremental and radical innovation: Design research versus technology and meaning change. Design Issues, 30(1), 78-96.
  29. Radical Incremental Innovation DESIGN MEETS BUSINESS @RYANRUMSEY Source: Norman, D.

    A., & Verganti, R. (2014). Incremental and radical innovation: Design research versus technology and meaning change. Design Issues, 30(1), 78-96.
  30. 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 DESIGN MEETS BUSINESS @RYANRUMSEY Source: Norman, D. A., & Verganti, R. (2014). Incremental and radical innovation: Design research versus technology and meaning change. Design Issues, 30(1), 78-96.
  31. 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 DESIGN MEETS BUSINESS @RYANRUMSEY Source: Norman, D. A., & Verganti, R. (2014). Incremental and radical innovation: Design research versus technology and meaning change. Design Issues, 30(1), 78-96.
  32. 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 DESIGN MEETS BUSINESS @RYANRUMSEY Source: Norman, D. A., & Verganti, R. (2014). Incremental and radical innovation: Design research versus technology and meaning change. Design Issues, 30(1), 78-96.
  33. Some of my perspectives DESIGN MEETS BUSINESS @RYANRUMSEY Articulating how

    design work "ts into business processes is a design problem to solve.
  34. Some of my perspectives DESIGN MEETS BUSINESS @RYANRUMSEY To calculate

    perceived value, designers have to do better with calculating the perceived bene"ts of their contributions.
  35. Some of my perspectives DESIGN MEETS BUSINESS @RYANRUMSEY By framing

    the value of design through business lenses, designers frame the value of design work to business leaders.
  36. DESIGN MEETS BUSINESS @RYANRUMSEY 1. Remix design cra". 1 2.

    Embrace business culture. 2 3. Understand the math. 3 Welcome to bSchool!
  37. Remix design cra". 1 DESIGN MEETS BUSINESS @RYANRUMSEY Framing the

    Now How Might We Explore Potentials Identify & Release Diverging Diverging Converging Converging Use design to understand colleagues like they are users.
  38. Remix design cra". 1 DESIGN MEETS BUSINESS @RYANRUMSEY Strategyzer, https://strategyzer.com/canvas/value-proposition-canvas

    ; http://www.givegoodux.com/getting-stakeholder-buy-in-for-ux-work/ Observe partners to determine what they think, feel, say, and do.
  39. Remix design cra". 1 DESIGN MEETS BUSINESS @RYANRUMSEY Strategyzer, https://strategyzer.com/canvas/value-proposition-canvas

    ; http://www.givegoodux.com/getting-stakeholder-buy-in-for-ux-work/ Listen to your partners to understand their pains and gains.
  40. Remix design cra". 1 DESIGN MEETS BUSINESS @RYANRUMSEY Activities Skills

    Address those pains and gains with your work.
  41. Remix design cra". 1 DESIGN MEETS BUSINESS @RYANRUMSEY People, Projects

    (-) Influence (+) (-) Willing to experiment (+) Identify willing partners to test assumptions with.
  42. Remix design cra". 1 DESIGN MEETS BUSINESS @RYANRUMSEY Create a

    value proposition to sell pain relievers and gain creators.
  43. Embrace business culture. 2 DESIGN MEETS BUSINESS @RYANRUMSEY Business leaders

    are accountable for setting the pace and quality of decision-making.
  44. Embrace business culture. 2 DESIGN MEETS BUSINESS @RYANRUMSEY ECONOMIC VALUE

    CUSTOMER VALUE EMPLOYEE VALUE SHAREHOLDER VALUE BUSINESS PROCESSES PARTNER VALUE ORGANIZATIONAL DESIGN PROCESS DESIGN SOCIETAL VALUE STRATEGIC DIRECTION SUPPLIER VALUE PERFORMANCE METRICS Business leaders have consider a variety of lenses when making decisions.
  45. Embrace business culture. 2 DESIGN MEETS BUSINESS @RYANRUMSEY Vision and

    Strategy Financial “To succeed financially, how should we appear to our stakeholders?” Objectives Measure Targets Initiatives Customer “To achieve our vision, how should we appear to our Objectives Measure Targets Initiatives Learning & Growth “To achieve our vision, how will we sustain our ability to change and improve?” Objectives Measure Targets Initiatives Internal Busin “To satisfy our shareholders and customers, what business processes must we excel at?” Objectiv Discover how business success is communicated.
  46. Embrace business culture. 2 DESIGN MEETS BUSINESS @RYANRUMSEY WHAT HOW

    WHY WHO Value Proposition Pro!t Mechanism Value Chain Ask leaders what the business model is.
  47. Embrace business culture. 2 DESIGN MEETS BUSINESS @RYANRUMSEY Read the

    room instead of gasping at fonts, colors, and layouts?
  48. Remix design cra". 1 DESIGN MEETS BUSINESS @RYANRUMSEY Ask partners

    for plans that worked and reverse engineer them.
  49. Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY Start with

    math assumptions to challenge business assumptions.
  50. Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY = x

    x Number 
 of customers Annual customer value Projected rate 
 minus
 current rate Incremental dollars 
 earned Example: ROI of Retention
  51. Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY = x

    x Number 
 of customers Annual customer value Projected rate 
 minus
 current rate Incremental dollars 
 earned An example = x x 1,900,000 $100 (12%-10%) $3.8M
  52. Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY This is

    business viability. Project costs should not exceed this! = x x Number 
 of customers Annual customer value Projected rate 
 minus
 current rate Incremental dollars 
 earned An example = x x 1,900,000 $100 (12%-10%) $3.8M
  53. Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY This is

    business viability. Project costs should not exceed this! Typically, this number comes from segment data. That segment may contain one or more personas to align to. = x x Number 
 of customers Annual customer value Projected rate 
 minus
 current rate Incremental dollars 
 earned An example = x x 1,900,000 $100 (12%-10%) $3.8M
  54. Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY This is

    business viability. Project costs should not exceed this! Typically, this number comes from segment data. That segment may contain one or more personas to align to. Here’s your target to test di!erent solutions against. In this hypothetical, can we project an increase in retention? = x x Number 
 of customers Annual customer value Projected rate 
 minus
 current rate Incremental dollars 
 earned An example = x x 1,900,000 $100 (12%-10%) $3.8M
  55. Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY This is

    business viability. Project costs should not exceed this! Typically, this number comes from segment data. That segment may contain one or more personas to align to. Here’s your target to test di!erent solutions against. In this hypothetical, can we project an increase in retention? Without a base value, we can’t calculate an ROI. = x x Number 
 of customers Annual customer value Projected rate 
 minus
 current rate Incremental dollars 
 earned An example = x x 1,900,000 $100 (12%-10%) $3.8M
  56. Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY TEST B

    (Time on task) TEST A (Do nothing) TEST C (Satisfaction %) (12% - 10%) Did any work? Identify options for testing. Options drive accountability.
  57. Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY Year 1

    Year 2 Year 3 Total (Present Value) Total (Risk Adjusted Total bene!ts $1,500,000 $3,600,000 $4,100,000 $3,800,00 Total costs -$500,000 -$200,000 -$100,000 $800,000 $1,000,00 Net Cash Flow -$-500,000 $800,000 $3,300,000 $3,300,000 $2,800,00 Total ROI 280% Option B: Time on task improvements Show costs and bene"ts of each option.
  58. Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY Desirability Scorecard

    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 • No remarkable growth can be increasing productivity • Users will continue to have to r representatives in the phone ch situation • 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 • Org remains vulnerable to mar • Member satisfaction may dimi expectations grow across the in • Decreased member retention a needs remain unfulfilled Desirability Score 84.00% B Usability 86.9% B Functionality 91.9% A Adoption 64.5% D Communication 87.9% B SWOT Analysis Show the risks and strengths of options to recommend a path forward.
  59. Closing thoughts DESIGN MEETS BUSINESS @RYANRUMSEY The most di!icult challenge

    I’ve had (professionally) is designing for my colleagues and stakeholders.
  60. Closing thoughts DESIGN MEETS BUSINESS @RYANRUMSEY Business leaders will prioritize

    design perspectives of users when it’s good for business.
  61. Closing thoughts DESIGN MEETS BUSINESS @RYANRUMSEY When it’s good for

    business, the perceived bene"ts of design work become actual business value.
  62. At Second Wave Dive, we embrace the overlaps. DESIGN MEETS

    BUSINESS @RYANRUMSEY BEYOND THE BASICS Winning in the market Design Business Technology
  63. DESIGN MEETS BUSINESS @RYANRUMSEY BEYOND THE BASICS secondwavedive.com 6-week online

    masterclasses that dive into the intersection of business and design.