1. FINANCIAL EXPERIENCE DESIGN 2018
Design Speaks
Business
Approaches to communicate the business viability of
design
Ryan Rumsey
@ryanrumsey
2. RadicalIncremental
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
3. RadicalIncremental
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
4. CHANGING MINDSETS SIGNIFICANT INVESTMENTSPOPULAR 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
8. 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
9. NEW CHALLENGES, SAME SONG
How do your business
partners perceive the value of
design in your organization?
10. NEW CHALLENGES, NEW PERSPECTIVE
How do your business
partners perceive the value of
design work in your
organization?
11. A TREND I’M NOTICING FROM THE TOP
While many companies have
invested significantly in
design, investment in design
work is often still questioned.
12. 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
13. Design
Business
Technology
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?
According to this Venn,
designers should spend
~20% of their time
demonstrating how
desirability is good for
Many business partners
have embraced this
overlap. They are closer
to design than designers
are to business.
14. THE STAKES ARE HIGH
FINANCE LEGAL BUSINESS HR
TECHNOLOGY
OPERATIONS
MARKETINGRISKSECURITY
CEO
STRATEGY
DESIGN
15. 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.
17. WHO IS THIS PERSON?
An Experience Strategy is how we
create market differentiation with a
distinct experience offering.
18. WHO IS THIS PERSON?
The Experience Strategy team
provides a novel approach to
management consulting to
address the gaps between
business and design strategy.
19. WHO IS THIS PERSON?
The Experience Strategy team
applies design and business
methodologies with the objective
of determining the business
viability of experiences.
20. 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.UXCX
21. A TINY PIECE OF A LARGER COLLABORATION
Business
Technology
Design
FINANCE
LEGAL
HR
OPERATIONS
MARKETING
RISK
SECURITY
STRATEGY
22. A WORLD OF METRICS
Surrounded by metrics
focused on driving “what” and
“how” decisions.
23. 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.
24. THE STAKES ARE HIGH
FINANCE LEGAL BUSINESS HR
TECHNOLOGY
OPERATIONS
MARKETINGRISKSECURITY
CEO
STRATEGY
DESIGN
25. NEW CHALLENGES, SAME APPROACH
Articulating how design work
fits into business processes is
a design problem to solve.
27. READING BETWEEN THE LINES
To calculate value, designers
must do better with
calculating the benefits of
their contributions.
28. 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)
29. NEW CHALLENGES
We need to frame the value
of design work to business
leaders by framing the value
of design work through
business lenses.
31. LEVERAGING OUR COMFORT ZONES
1. Remix your craft
2. Embrace business culture
3. Do the math
4. Put it all together
32. REMIX YOUR CRAFT
1. Colleagues and
stakeholders are human
too!
APPLY DESIGN TRAITS APPLY KNOWN FRAMEWORKS SELL SOMETHING ELSE
33. What are the traits of great
designers?
REMIX YOUR CRAFT
34. What jobs do your colleagues
and stakeholders need to get
done?
REMIX YOUR CRAFT
35. How does the value
proposition of design work
align with those jobs-to-be-
done?
REMIX YOUR CRAFT
36. What do your colleagues
think vs. feel? Say vs. do?
REMIX YOUR CRAFT
37. 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
38. EMBRACE BUSINESS CULTURE
2. 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 BUSINESS CASES
39. SETTING THE PACE AND QUALITY OF DECISION MAKING
Business leaders set the
pace and quality of decision
making
40. WIDE RANGING
Some lenses of business
EMPLOYEE VALUEECONOMIC VALUE CUSTOMER VALUE
PARTNER VALUESHAREHOLDER VALUE SOCIETAL VALUE
ORGANIZATIONAL DESIGNBUSINESS PROCESSES PROCESS DESIGN
STRATEGIC DIRECTIONPERFORMANCE METRICS SUPPLIER VALUE
41. What do they need buying?
“What am I paying for?”
EMBRACE BUSINESS CULTURE
42. 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? —>
TRENDS
OPERATING MODEL
Know where alignment is
EMBRACE BUSINESS CULTURE
43. FINANCE LEGAL BUSINESS HR
TECHNOLOGY
OPERATIONS
MARKETINGRISKSECURITY
CEO
STRATEGY
DESIGN
How does the table
communicate?
EMBRACE BUSINESS CULTURE
44. 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
46. EMBRACE BUSINESS CULTURE
Stars
Question
Marks
Cash Cows Dogs
High Market Share Low Market Share
High
Industry
Growth
Low
Industry
Growth
Cost
Leadership
Differentiatio
n
Focus
Cost Focus
Differentiatio
n
Cost Differentiation
Narrow
Broad
Porter’s Generic StrategiesBCG Portfolio Evaluation
Market
Penetration
Product
Development
Market
Development
Diversificatio
n
Existing New
Existing
New
Products &
Markets
Porter’s Growth Strategies
What’s the business model?
47. Same song, new verse
SWOT Scenario 1
Strengths Weaknesse
Opportunities Threat
• 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
48. 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 OPTIONSQUANTIFY PROJECTED ROI
50. ROI OF RETENTION - A HYPOTHETICAL SCENARIO
=x xNumber
of customers
Annual member
value
Projected rate
minus
current rate
Incremental
dollars
earned
$1,900,000 x (12% - 10%) $100 $3.8 millionx =
for example
Start with business
assumptions
51. =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 millionx =
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
Without a base value, we
can’t calculate an ROI.
52. 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 %)
53. 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
54. 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 DEFINITIONFINANCIALS PROJECT ORGANIZATION
55. 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.
