DL2022 Nathan Baird - Establishing A Kick-Ass Design-Led Innovation Practice

Lessons learnt from 20 years establishing and scaling Design-led Innovation at a team, organisation and country level.

1. Establishing A Kick-Ass Innovation Practice UX Australia Design Leadership 2022
2. Session agenda: 1. The age of the design practice 2. 4 steps to kick-ass 3. Discussion
3. Innovation is one of the most important, endeavours of modern times The Innovation Challenge
4. 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
5. 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
6. The rise of the internal design and innovation practices Photo by Jason Goodman on Unsplash
7. Four types of design practices by contrasting funding and mandate LOW HIGH LEVEL OF FUNDING ORGANISATIONAL WIDE MANDATE LOW HIGH
8. Four types of design practices Guerilla / Underground LOW HIGH ORGANISATIONAL WIDE MANDATE GUERRILLA/ UNDERGROUND LOW HIGH LEVEL OF FUNDING
9. Four types of design practices Guerilla / Underground LOW HIGH ORGANISATIONAL WIDE MANDATE LOW HIGH LEVEL OF FUNDING
10. Four types of design practices Bootstrapping LOW HIGH BOOT- STRAPPING ORGANISATIONAL WIDE MANDATE GUERRILLA/ UNDERGROUND LOW HIGH LEVEL OF FUNDING
11. Four types of design practices Bootstrapping LOW HIGH ORGANISATIONAL WIDE MANDATE LOW HIGH LEVEL OF FUNDING
12. Four types of design practices Isolated / Rogue LOW HIGH BOOT- STRAPPING ORGANISATIONAL WIDE MANDATE GUERRILLA/ UNDERGROUND ISOLATED/ ROGUE LOW HIGH LEVEL OF FUNDING
13. Four types of design practices Isolated / Rogue ? LOW HIGH ORGANISATIONAL WIDE MANDATE LOW HIGH LEVEL OF FUNDING
14. Four types of design practices Empowered LOW HIGH EMPOWERED BOOT- STRAPPING ORGANISATIONAL WIDE MANDATE GUERRILLA/ UNDERGROUND ISOLATED/ ROGUE LOW HIGH LEVEL OF FUNDING
15. Four types of design practices Empowered ? LOW HIGH ORGANISATIONAL WIDE MANDATE LOW HIGH LEVEL OF FUNDING
16. 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
17. Session agenda: 1. The age of the design practice 2. 4 steps to kick-ass 3. Discussion
18. 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.
19. 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
20. 01 Skeleton Team Photo by Mathew Schwartz on Unsplash
21. Think Sell Deliver Foundation design squad What’s the minimum you need to launch?
22. BAU Units + Customer Insight Head of Innovation Innovation PMO Foundation design squad DB Breweries
23. The Firm + Customer Practice (1 Partner and team of 12-15) Foundation design squad KPMG
24. 02 Set the Strategy
25. 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
26. 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
27. 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
28. 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?
29. Set the strategy DB Breweries Co-designed with a wide spectrum of people to ensure both diversity of inputs and broad buy-in
30. Set the strategy DB Breweries – 2-day workshop INSPIRATION BANK OUT OPPORTUNITIES HARVEST CRAFT RINSE & REPEAT
31. 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
32. 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
33. 03 To design we must sell
34. No matter the practice, selling is essential LOW HIGH EMPOWERED BOOT- STRAPPING ORGANISATIONAL WIDE MANDATE GUERRILLA/ UNDERGROUND ISOLATED/ ROGUE LOW HIGH LEVEL OF FUNDING
35. 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
36. To design we must sell Setting up the KPMG HCD Practice LOW HIGH ORGANISATIONAL WIDE MANDATE LOW HIGH LEVEL OF FUNDING
37. 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
38. Eat what you kill... Revenue KPI’s of $4-$6 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
39. 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
40. Mapping the partners To design we must sell KPMG HCD Practice HUNGRY FIXED Tunnel vision Collaborators Fat Cats Make it easy for me MINDSET AMBITION OPEN COMFORTABLE
41. To create economic transformation by integrating design into small to medium enterprises. To design we must sell NZTE Better by Design
42. 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
43. 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
44. 04 Resourcing to scale up
45. 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
46. 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
47. 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
48. EXPERT 150 ADVANCED 250 SOUND 1000 AWARE 3600 Resourcing to scale up CBA Design Thinking & Experimentation
49. 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
50. 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 Leadership not always present Vanguard for success across the bank e.g., innovation lab Resourcing to scale up CBA Design Thinking & Experimentation
51. Resourcing to scale up KPMG HCD Practice TRAIN RESEARCH CONSULTANCY KPMG CONSULTANTS ACQUIRE HIRE CORE HCD TEAM
52. 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
53. 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
54. 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
55. Thank you! Innovator’s Playbook Grab a free copy today If you’re attending online in AU/NZ get a free copy posted to you for $9.95 by going to: www.methodry.com/books
56. Thank you! Method Cards To get a free copy email me: nathan@methodry.com
57. Thank you NATHAN BAIRD FOUNDER & MANAGING DIRECTOR +61(0)448 133 882 NATHAN@METHODRY.COM SYDNEY AUSTRALIA