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FXD 2018: Ryan Rumsey, USAA

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The document discusses communicating the business value of design. It suggests that while design is increasingly popular, investment in design work is often still questioned by business partners. To address this, designers must frame the value of their work through business lenses by understanding what jobs stakeholders need to get done, applying design methods to understand stakeholder needs, leveraging business tools and metrics, and quantifying the projected return on investment of design initiatives. Framing the benefits of design work in this way can help design gain acceptance as a viable and valuable part of the business.

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FINANCIAL EXPERIENCE DESIGN 2018 Design Speaks Business Approaches to communicate the business viability of design Ryan Rumsey @ryanrumsey
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
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
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
IT WORKED! Design Business Technology Our favorite Venn Innovation
ELEVATED AND CELEBRATED FINANCE LEGAL BUSINESS HR TECHNOLOGY OPERATIONS MARKETINGRISKSECURITY CEO STRATEGY Businesses are transforming DESIGN
IF IT AIN’T BROKE So, why I am here?
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
NEW CHALLENGES, SAME SONG How do your business partners perceive the value of design in your organization?
NEW CHALLENGES, NEW PERSPECTIVE How do your business partners perceive the value of design work in your organization?
A TREND I’M NOTICING FROM THE TOP While many companies have invested significantly in design, investment in design work is often still questioned.
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
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.
THE STAKES ARE HIGH FINANCE LEGAL BUSINESS HR TECHNOLOGY OPERATIONS MARKETINGRISKSECURITY CEO STRATEGY DESIGN
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.
WHO IS THIS PERSON? Hi. I’m Ryan.
WHO IS THIS PERSON? An Experience Strategy is how we create market differentiation with a distinct experience offering.
WHO IS THIS PERSON? The Experience Strategy team provides a novel approach to management consulting to address the gaps between business and design strategy.
WHO IS THIS PERSON? The Experience Strategy team applies design and business methodologies with the objective of determining the business viability of experiences.
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
A TINY PIECE OF A LARGER COLLABORATION Business Technology Design FINANCE LEGAL HR OPERATIONS MARKETING RISK SECURITY STRATEGY
A WORLD OF METRICS Surrounded by metrics focused on driving “what” and “how” decisions.
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.
THE STAKES ARE HIGH FINANCE LEGAL BUSINESS HR TECHNOLOGY OPERATIONS MARKETINGRISKSECURITY CEO STRATEGY DESIGN
NEW CHALLENGES, SAME APPROACH Articulating how design work fits into business processes is a design problem to solve.
FRAMING PERCEIVED VALUE = Perceived Value Perceived Benefits - Costs Costs
READING BETWEEN THE LINES To calculate value, designers must do better with calculating the benefits of their contributions.
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)
NEW CHALLENGES We need to frame the value of design work to business leaders by framing the value of design work through business lenses.
REFRAME DESIGN VALUE Welcome to bSchool!
LEVERAGING OUR COMFORT ZONES 1. Remix your craft 2. Embrace business culture 3. Do the math 4. Put it all together
REMIX YOUR CRAFT 1. Colleagues and stakeholders are human too! APPLY DESIGN TRAITS APPLY KNOWN FRAMEWORKS SELL SOMETHING ELSE
What are the traits of great designers? REMIX YOUR CRAFT
What jobs do your colleagues and stakeholders need to get done? REMIX YOUR CRAFT
How does the value proposition of design work align with those jobs-to-be- done? REMIX YOUR CRAFT
What do your colleagues think vs. feel? Say vs. do? REMIX YOUR CRAFT
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
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
SETTING THE PACE AND QUALITY OF DECISION MAKING Business leaders set the pace and quality of decision making
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
What do they need buying? “What am I paying for?” EMBRACE BUSINESS CULTURE
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
FINANCE LEGAL BUSINESS HR TECHNOLOGY OPERATIONS MARKETINGRISKSECURITY CEO STRATEGY DESIGN How does the table communicate? EMBRACE BUSINESS CULTURE
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
EMBRACE BUSINESS CULTURE How is progress communicated?
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?
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
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
DO THE MATH! Desirability meets viability through numbers
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
=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.
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 %)
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
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
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.
Ryan Rumsey @ryanrumsey Thank you!

More Related Content

FXD 2018: Ryan Rumsey, USAA

  • 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
  • 6. ELEVATED AND CELEBRATED FINANCE LEGAL BUSINESS HR TECHNOLOGY OPERATIONS MARKETINGRISKSECURITY CEO STRATEGY Businesses are transforming DESIGN
  • 7. IF IT AIN’T BROKE So, why I am here?
  • 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.
  • 16. WHO IS THIS PERSON? Hi. I’m Ryan.
  • 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
  • 45. EMBRACE BUSINESS CULTURE How is progress communicated?
  • 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
  • 49. DO THE MATH! Desirability meets viability through numbers
  • 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.