The Business Case for Design

Transcript

1. The Business Case for Design Andy Howard
2. 1. Valuing design 2. Design business cases that work Andy Howard The Business Case for Design
3. Andy Howard The Business Case for Design
4. Andy Howard The Business Case for Design I ❤ NY: $30m annual merch sales.
5. Part 1. Valuing design Andy Howard The Business Case for Design
6. By investing in design, organisations can increase their revenue and shareholder returns at nearly twice the rate of their competitors. – McKinsey, October 2018 Andy Howard The Business Case for Design
7. What does design investment mean? How do we do it well? To invest, we need to put a value on design Andy Howard The Business Case for Design
8. Financial responsibility creates sustainability. Plus space and time to do our best work. Andy Howard The Business Case for Design
9. Andy Howard The Business Case for Design
10. Valuing design with language Andy Howard The Business Case for Design
11. Valuing design with pilots 7 weeks 20% revenue improvement 12:1 ROI Live revenue and bookings dashboard New revenue executive summaries Andy Howard The Business Case for Design
12. Business fluency helps. A lot. Andy Howard The Business Case for Design
13. Valuing design with metrics (& dominos) Everything results in one or more of these: Revenue Costs Market share Shareholder value Andy Howard The Business Case for Design
14. Andy Howard The Business Case for Design
15. Part 2. Design business cases that work Andy Howard The Business Case for Design
16. Business case killers No goals Gun-to-head goals Vanity goals Andy Howard The Business Case for Design
17. Getting and keeping money You’ve said how much you think you need, and it’s probably not enough, but it still seems like a lot. You’re asking for money and at best, it’s a struggle. At worst, people think you’re insane. Andy Howard The Business Case for Design
18. Getting and keeping money The right formula will get us to the never-ending budget. Andy Howard The Business Case for Design
19. Demo project formula Investment = Internal headcount + External fees Andy Howard The Business Case for Design
20. Demo project formula Investment = Internal headcount + External fees + Storytelling Andy Howard The Business Case for Design
21. Demo project formula Investment = Years x (Internal headcount + External fees + Storytelling) Andy Howard The Business Case for Design
22. Demo project formula Investment = Years x (Internal headcount + External fees + Storytelling) = 3 x ($1,400,000 + $570,000 + $30,000) = $6 million Stopgaps aren’t an alternative, they’re a stop to ever achieving the budget Less than $40,000 per week ($38,462) This is a demo, ok? Andy Howard The Business Case for Design
23. Earning $40,000 / week (easy) Visitors = 600,000 / day Conversion = 1% ATV = $100 Revenue = $4.2m / week 13% ↑ = $546,000 additional revenue / week (way more than $40,000) ROI = 14:1 Andy Howard The Business Case for Design
24. Resist this type of formula Big Return = Conversion ↑ x ATV ↑ x mobile traffic ↑ It’s speculative, because it’s compounding multiple forecasts. Ensure your forecast has a high likelihood of success. You can list supplementary ‘potential’ returns instead, outside of the formula. Andy Howard The Business Case for Design
25. Final hurdle Andy Howard The Business Case for Design
26. The never-ending budget Why stop an investment that’s returning? Which other metrics can you impact? Where are the dominos? Andy Howard The Business Case for Design
27. It’s an investment Andy Howard The Business Case for Design
28. How might we.. Change the world with design? Andy Howard The Business Case for Design
29. Thank you