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

uxaustralia
November 16, 2022

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.

uxaustralia

November 16, 2022
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  1. Establishing
    A Kick-Ass
    Innovation Practice
    UX Australia
    Design Leadership 2022

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

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

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  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

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  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

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

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

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  8. Four types of design practices
    Guerilla / Underground
    LOW HIGH
    ORGANISATIONAL
    WIDE MANDATE
    GUERRILLA/
    UNDERGROUND
    LOW HIGH
    LEVEL OF FUNDING

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  9. Four types of design practices
    Guerilla / Underground
    LOW HIGH
    ORGANISATIONAL
    WIDE MANDATE
    LOW HIGH
    LEVEL OF FUNDING

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  10. Four types of design practices
    Bootstrapping
    LOW HIGH
    BOOT-
    STRAPPING
    ORGANISATIONAL
    WIDE MANDATE
    GUERRILLA/
    UNDERGROUND
    LOW HIGH
    LEVEL OF FUNDING

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  11. Four types of design practices
    Bootstrapping
    LOW HIGH
    ORGANISATIONAL
    WIDE MANDATE
    LOW HIGH
    LEVEL OF FUNDING

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  12. Four types of design practices
    Isolated / Rogue
    LOW HIGH
    BOOT-
    STRAPPING
    ORGANISATIONAL
    WIDE MANDATE
    GUERRILLA/
    UNDERGROUND
    ISOLATED/
    ROGUE
    LOW HIGH
    LEVEL OF FUNDING

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  13. Four types of design practices
    Isolated / Rogue
    ?
    LOW HIGH
    ORGANISATIONAL
    WIDE MANDATE
    LOW HIGH
    LEVEL OF FUNDING

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  14. Four types of design practices
    Empowered
    LOW HIGH
    EMPOWERED
    BOOT-
    STRAPPING
    ORGANISATIONAL
    WIDE MANDATE
    GUERRILLA/
    UNDERGROUND
    ISOLATED/
    ROGUE
    LOW HIGH
    LEVEL OF FUNDING

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  15. Four types of design practices
    Empowered
    ?
    LOW HIGH
    ORGANISATIONAL
    WIDE MANDATE
    LOW HIGH
    LEVEL OF FUNDING

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  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

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

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  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.

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  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

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  20. 01
    Skeleton
    Team
    Photo by Mathew Schwartz on Unsplash

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

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

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

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  24. 02
    Set the
    Strategy

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  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

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  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

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  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

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  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?

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

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

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  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

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  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

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  33. 03
    To design
    we must sell

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  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

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  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

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

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  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

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  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

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  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

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  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

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

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  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

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  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

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  44. 04
    Resourcing
    to scale up

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  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

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  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

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  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

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  48. EXPERT
    150
    ADVANCED
    250
    SOUND
    1000
    AWARE
    3600
    Resourcing to scale up
    CBA Design Thinking & Experimentation

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  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

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  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

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

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  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

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  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

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  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

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  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

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  56. Thank you!
    Method Cards
    To get a free copy email me:
    [email protected]

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  57. Thank you
    NATHAN BAIRD
    FOUNDER & MANAGING DIRECTOR
    +61(0)448 133 882
    [email protected]
    SYDNEY
    AUSTRALIA

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