Slides Mx 2008 Cordell Ratzlaff


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Creating Culture Change

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Slides Mx 2008 Cordell Ratzlaff

  1. 1. Creating Creating the Next iPodNext the iPod I’m really sick of hearing about the iPod You can’t have a discussion about design today without someone bringing up the iPod It seems every company wants to create the iPod of whatever product category they’re in Consumer electornics ERP software Dental chairs Industrial abrasives So why are so few companies achieving it? 1
  2. 2. Design Reflects Culture They’re focusing on the wrong thing…the design of the product itself There are a lot of good designers out there. The design process is well understood Great design is culturally relevant It mirrors peopleʼs passions and desires Great design does not follow a formula Creating breakout products takes more than talented designers and good methodology; it takes the right culture A product’s design reflects the culture in which it is formed Most corporate cultures arenʼt right for creating great products Many companies would love to create “the iPod” of their product category, but are they willing to do what it takes? They first need to create the right culture 2
  3. 3. I Will Talk About… • Three conditions necessary for culture change • What to expect during culture change • Things that drive culture change 3
  4. 4. My Experience 4
  5. 5. Three Necessary Conditions • A critical business need • A committed leader • A compelling vision Let’s start out with the three conditions necessary to achieve culture change Unless these three conditions are present, you cannot change your culture 5
  6. 6. A Critical Business Need The first condition is a critical business need What is the relationship between design and business? 6
  7. 7. Design is business • Design is the application of creative expertise to solve a problem Design is the application of creative • Whose problem? expertise to solve a problem. • The one who has money Whose problem? Design can be defined as the application of creative expertise to solve a problem [click] But whose problem are you solving? The end user’s? 7
  8. 8. Whoever has the money. Whoever has the money Could be a client, your manager, or the CEO of your company There’s a name for design that’s not connected to a business problem, it’s called fine art 8
  9. 9. Recognizing you have a problem is the first step towards recovery. In order to solve the problem, the people with the money need to recognize that they have one Let me give you three examples: Apple had a problem in the mid-90s listening to criticism of being non-standard me-too product strategy bloated product line failed OS strategy <Large internet portal> wanted to redefine the Web experience Cisco achieved success in business VoIP Why did it take Microsoft 5 years to come out with Vista? Because they could get away with it 9
  10. 10. A Committed Leader The second condition necessary for culture change is a committed leader You may recognize this leader from Chip’s talk… 10
  11. 11. “If you areSatoru Iwata simply listening to requests from the customer, you can satisfy their needs, but you can never surprise them.” Satoru Iwata CEO, Nintendo Do you recognize this person? [click] At 2005 Electronic Entertainment Expo Nintendo revealed a tiny non- functional version of a device it saw as the future of gaming 1/10 the power of the Playstation 3 Nowhere near the online features of the Xbox 360 It would be the last to market of the three game consoles Press was underwhelmed, the catcalls only grew louder when later Nintendo announced the device would be called the “Wii” Iwata was concerned about the state of the gaming industry Focus on faster processors and better graphics would only appeal to fewer and fewer people Iwata advocated simplicity at a time when games were getting more complex and that games should be healthy fun Iwata didn’t listen to critics, in fact he didn’t even listen to his customers [click] 11 This is one of my favorite quotes…
  12. 12. Iwata stuck to his vision of game design and: The Wii sold out immediately upon launch and 18 months later remains in high demand In 2007 it passed both the Playstation 3 and Xbox 360 in unit sales Nintendo makes $50 on every console, unlike Sony and Microsoft, who subsidize their consoles through game licensing Nintendo’s stock has soared Nintendo now has the second-highest capitalization in Japan, behind only Toyota Iwata solved Nintendo’s business problem in a big way by sticking with unconventional design ideas 12
  13. 13. A Compelling Vision Finally, the most important thing a leader can do to drive a culture change is paint a compelling vision I want to expand on what Chip said earlier about JFK… This is the quote that everyone remembers: “I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the Moon and returning him safely to the Earth” If you look at the context of this quote it wasn’t about just landing a man on the Moon and returning him to Earth, It wasn’t about the science or technology, but about the future freedom of mankind He didn’t use PowerPoint He didn’t refer people to a white paper or requirements document He appealed to people’s aspirations and emotions by painting a vivid picture The vision was clear and simple. The simpler the vision, the better 13
  14. 14. Build a prototype. A great way to connect people emotionally to a vision is through a prototype A prototype tells a story that people can see and touch and experience You are putting them in the story A shared design vision that people are excited about will take on its own momentum and be a powerful unifying force It also focuses everyone in the same direction It makes people more willing to go through the pain of change to get to the end goal When people have a clear idea of the end goal, itʼs a lot easier to get everyone moving toward it. It shifts the conversation from “What is our vision?” which can sometimes go in circles, to “How do we achieve it?” 14
  15. 15. What to Expect So a: Crritical business need Committed leader Compelling vision are the three conditions necessary This is only the start of changing a culture What can you expect going into a culture change These are things to prepare for 15
  16. 16. You can’t expect different results doing things the same old way. One thing to expect is corporate inertia The power of inertia is incredible You can’t expect to get different results by doing things the way you have in the past At frog we saw great ideas and projects get bogged down in a company’s existing culture Gordon McKenzie wrote a great book “Orbiting the Giant Hairball”… 16
  17. 17. You can change: • People • Process • Products It’s easier to manage the status quo than to enforce change You can change people, process, and products; most likely you’ll need to do all three Processes accumulate over the years and can bog down innovation They will likely need to be dismantled or reorganized With the commitment of a strong leader, change can start with a small group of dedicated people and eventually spread to the entire organization. At Cisco we’ve changed all three: Gone from three designers to over 15 We revamped our product development process to include user research, design, prototyping and usability testing very early on, and used these activities to drive feature requirements and development Scrapped existing product plans and developed a new technical architecture to achieve the user experience we want to provide our customers 17
  18. 18. Change takes time. People are resistant to change Change takes time, persistence, and patience and reiteratint the same message over and over again One of the most surprising things I learned when we were designing the first release of Mac OS X was how resistant to change people could be Story of Apple OS X designers and initial reactions to Mac OS X 18
  19. 19. Driving Culture Change What are some things you can do to drive culture change? 19
  20. 20. Top management must show visible and consistent support for change. Senior leadership must consistently show their commitment to making the transition, with every decision, action, and communication People will look for the first hint of wavering or back pedaling Which can be used as an excuse for dragging their feet 20
  21. 21. Over communicate. Communicate objectives, reasons for, and benefits of change every chance you get This helps the cultural change gain momentum At Cisco, just about every communication that goes out to our organization mentions user experience, and that has made its way into everyone’s conversations Reward steps in the right direction Seek opportunities to point out that the old way of doing things is not acceptable 21
  22. 22. Stand firm and make an example of somebody. At some point you’re going to have to kick somebody’s ass The sooner you do this the better Story of secrecy at Apple Story of canceling a product at Cisco 22
  23. 23. Be a rebel. Designers find ways to make things better in the face of conformity To instigate culture change you need to be a rebel And you need to recruit other rebels to your cause Change can start with a small group of dedicated people and eventually spread to the entire organization But not everyone is going to get on board… 23
  24. 24. Follow the Pirate’s Code Those that fall behind, get left behind. Some people will be unwilling or unable to make the shift They need to leave the organization. Soon. In this case, it’s best to follow the Pirate’s Code: Those who fall behind, get left behind You have to set and enforce high standards and new behaviors Those who canʼt adapt to the changes need to move on 24
  25. 25. Show, don’t tell. The power of a prototype 200 page requirements document vs. a prototype Months vs. minutes Story of Cisco prototype 25
  26. 26. If you want to create a great product, first create a great culture. Although everyone would like to create the next iPod, you won’t do it by just designing a product You need to first create a great culture. 26
  27. 27. Thank You 27