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Design Doing is Strategy on Demand
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Leadership & Management
Strategy is simple. In its essence, it is about putting together a plan and acting it out. The faster you can act out the plan the quicker you will know if your strategy is working. Unfortunately, some companies tend to plan, and re-plan more than they execute and seem to have forgotten how to act on what is needed and not on what is planned. Oftentimes, the reason is they want to be sure that the plan works before they allocate resources to act it out. The rapid changes we see in today's business environment has an immense potential for organizations who adapt to this new reality. But adapting is not easy. We need to begin thinking about strategy as an ever-changing dynamic hypothesis that needs constant validation through instant market feedback. In this Morgenbooster we want to show you why and how you can start working with strategy in a profoundly new way inspired by the Scandinavian way of form-giving, business thinking and the ancient Egyptians. We call it Design Doing.
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Design Doing is Strategy on Demand
- Strategy on demand
- Rapidly changing 00:00:10/00:00:09/00:00:08/ ?
- Strategizing in an ivory tower is over 😊 😎
- The gap is bigger than ever
- How might we close the gap
- …by creating hypotheses! and become experts in turning assumptions about the future into something we can act on…
- Happens simultaneously and on demand Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis
- Act on what is Not just on what is
- Deductive / Inductive / adductive
- Deductive / Inductive / adductive
- Deductive / Inductive / adductive
- Deductive / Inductive / adductive
- Deductive: From a general rule to a specific conclusion (is always true) Inductive: From a specific observations to a general conclusion (may be true) Abductive: From incomplete observations to best prediction (may be true)
- Design Doing
- “Design is something that you do at the end of an engineering proces to make things look good!”
- McKinsey
- 1 3 2 “Companies view design narrowly, focusing on aesthetics and form: the color, material, and finish of products.” ”Companies broaden their design emphasis to encompass end-to-end user experiences.” ”Companies realize that design infuses everything they do; it transforms the entire company.”
- Everything around us is designed More or less Products Services Processes Organizations Strategies
- “Everyone designs who devises courses of action aimed at changing existing situations into preferred ones”
- Empathize Hypothesize Experiment Validate Build Iterate Design Doing is
- INNOVATION LABSDESIGN CAPABILITIES
- Design is a Innovation is just a possible
- Hypotheses
- ”All science, all business insight, everything of value in life, originates not with data, but with a brilliant hypothesis”
- Nike story
- … … … … And measure… To verify that, we will.. We believe that Hypothesis card … We are right if…
- the speed of runnners. prototype different soles and shoes. reinventing the shoes of athletes especially how the soles touch the ground will improve the performance of athletes Improving the performance of athletes And measure… To verify that, we will.. We believe that Hypothesis card an athlete breaks a world record wearing our shoes. We are right if…
- Strategy on demand
- • Diagnosis • Guiding Policy • Coherent set of actions
- Happens simultaneously and on demand Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis
- Translate any strategy into a set of hypotheses that are actionable, driven by user needs and constantly measured through instant feedback.
- Focus area
- Focus area
- Focus area
- Focus area Hypothesis 1 Hypothesis 3 Hypothesis 2
- Focus area Hypothesis 1 Hypothesis 3 Hypothesis 2 Remedy lane
- Dynamic Roadmap Focus area … … … … … … … … … … … … … … … … … … … …
- Insights → Concept → LaunchHypothesis → MVP → Stage card
- Concept Insights Launched MVP Hypothesis MVP Launched
- Output -> Outcome -> Impact
- Outcomes > Output
- Outcome?
- a change in behaviour that impacts business results
- + Constantly measure outcomes
- The kernel of any good strategy. Diagnosis Guiding Policy Coherent set of actions + Evidence and outcome
- Customer perception Behavioural patterns Internal processes
- Imagine tracking outcomes for Mobilepay HYPOTHESIS Customer perception Behavioural patterns Internal processes DESIRED OUTCOMES App is useful and easy to use Measure: App store ratings between 4-5 stars More people pay back money to their friends and family Measure: Increase of transactions below DKK 250 Less cash withdrawals and deposits Measure: Reduction of cash handling time
- Design doing
- Billede af nils og frederik (frederik har) Design doing is
- • 1 hour to build the visual brand • 1 day to build the webshop including product pictures • Bootstrap everything
- 1. Customers’ perception 2. Customers’ behaviour 3. Our internal processes
- Marketing Sales Packaging Distribution Customer support We can use Instagram to inspire people We can use Instagram to test new products before we launch We can use instagram to gain knowledge about our audience People want to buy eternal bouquets online If we sell giftcard we will sell more flowers 3 We can peak the experience by putting a small chocolate in the box We can reduce amount of complaint with better packaging We can successfully send flowers via mail Poeple will still buy if for pakkeshops only We can always end a customer interaction in a positive way We can use customer support as a feedback loop for our product development If we’re on several platforms the customer always know how to get in contact Growth and scale We can create an attractive product for retail We can use our data to direct growth We can scale this business model into distribution centers Dynamic Roadmap We can sell more flowers if our packaging is pink We can use customer feedback to better our business If we make a pipck and collect option people will use it People will pay extra for same day delivery We can increase basket size if we show how you can combine bouquets We can get more sales if people feel social proof Wider bouquets are more attractive This is an attractive product for gasstations This is an attractive gift for big corporations We can increase awareness by joining other social and discovery networks such as pinterest
- Sales Sell eternal bouquets online
- the speed of runnners. prototype different soles and shoes. reinventing the shoes of athletes especially how the soles touch the ground will improve the performance of athletes Improving the performance of athletes And measure… To verify that, we will.. We believe that Hypothesis card an athlete breaks a world record wearing our shoes. We are right if…
- Will people buy it? Yes, they will.
- Marketing We can use Instagram to gain knowledge about our audience We can use Instagram to test new products before we launch
- Marketing Wider bouquets are more attractive
- Packaging We can send flowers in poster cylinders We can reduce amount of complaint with better packaging We can send flowers in triopac packaging We can peak the experience by putting a small chocolate in the box We can sell more flowers if our packaging is pink
- Eksperiment 4 Design doing is
- Marketing Talking at an event and pushing a coupon code will generate sales
- Get 15% off. Use MB15 when checking out www.evighedsbuket.dk Eternal Bouquets. For eternal love.
- You will need to
- #1 Strategizing and execution happens simultaneously.
- #2 strategy hypotheses constant validation customer insights.
- #3 Focus on value outcomes
- #4 Educate design solve problems develop
- #5 ”What is your strategy?” ”A dynamic set of hypotheses that are continously validated and changed through design doing.”
- templates
- Dynamic Roadmap Focus area … … … … … … … … … … … … … … … … … … … …
- … … … … And measure… To verify that, we will.. We believe that Hypothesis card … We are right if…
- 3. Internal processes 2. Behaviour outcome 1. Perception outcome Measure Behavioural outcome Current behaviour Hypothesis … … … … …
- Insights → Concept → LaunchHypothesis → MVP → Stage card
- Thank you
Editor's Notes
- Oliver – partner here at 1508. Doing business development, strategy and whatever else is needed. Prior to 1508. Building startups. Failing and one success. Nils Oskar – For the past 4 years… People calling saying that they needed an app.. Why? Because it’s in our Horizon 2 strategy. And are you sure you need an app? Yes! But what problem are you trying to fix. It doesn’t matter it’s in our horizon 2 strategy. Ok. But let’s try and fall in love with the problem instead of just building something that no one will use.
- Vuca world Tech Gartner Hype cycle
- 5-year plans is out Ivory tower
- Executing on an initiative that was planned and decided three years ago seems ridicoulus
- Why? Tech is rapidly changing the world. And humans are irrational by nature.
- Hypotheses is the answer to bridge the gap Design doing will help you validate hypotheses continously and get constant market and user feedback
- Egypt story Act on what is needed – not on what is planned. Learn: This is not something new, but most companies seem to have forgotten
- Egypt story Act on what is needed – not on what is planned. Learn: This is not something new, but most companies seem to have forgotten
- Egypt story Act on what is needed – not on what is planned. Learn: This is not something new, but most companies seem to have forgotten
- Egypt story Act on what is needed – not on what is planned. Learn: This is not something new, but most companies seem to have forgotten
- Design doing might be the answer to bridging the gap and validating hypotheses fast and instant. The perfect way to execute on abductive methods. Respect for thinking – but this really is doing
- Companies that excel at design grow revenues and shareholder returns at nearly twice the rate of their industry peers. “In the first phase, companies view design narrowly, focusing on aesthetics and form: the color, material, and finish of products. In the second phase, companies broaden their design emphasis to encompass end-to-end user experiences. In the final phase, companies realize that design infuses everything they do; it transforms the entire company.”
- “In the first phase, companies view design narrowly, focusing on aesthetics and form: the color, material, and finish of products. In the second phase, companies broaden their design emphasis to encompass end-to-end user experiences. In the final phase, companies realize that design infuses everything they do; it transforms the entire company.”
- This is why I as a person with a background in Law and Economics call myself for a designer.
- A few years back every job post had the sentence: ”we are looking for someone with an entrepeneurial mindset. They were actually looking for designers. Designers that thinks this way. Respond quickly to changes in human behaviour, society, technology and science.
- Trend… Closing innovation labs. Building internal design capabilities…
- One of the cornerstones of design is hypotheses.
- Here is a good example. Phil Knight and Bill Bowermann founded Nike on a deep interest in optimizing athlete’s performance. Their hypothesis was that optimizing the soles, support and how the shoes touched the ground would give extra speed to the athlete. They spent years prototyping soles and shoes. For the first prototypes they used a waffle iron to create a new type of knurled rubber sole, from which they themselves sewed interim shoes and tested on runners. It took them 100 attempts, but they did find the sole, which has since not only revolutionized sports footwear, but made running a people's sport. Phil and Bill had a hypothesis and they tested it rigorously and fast. They mitigated risk by using a waffle iron before investing in expensive manufacturing equipment. Learning from Phil and Bill we can mitigate risk and diverge our strategy before it is too late. But how do we act fast on our hypotheses? https://www.popularmechanics.com/technology/gadgets/a21841/nike-waffle-iron/
- To this day NIKE constantly hypothesize , prototype and test
- Jealous
- Move from initaitives to hypotheses Use design doing to validate or invalidate hypotheses
- Product-market-fit
- Map, design and explore business models
- Colleagues showed me this that they had done for one of our customers. A dynamic roadmap of hypotheses. Build up of what they called remedy lanes.
- Every strategy has a focus area Business unit (IT, digital, sales, HR) Trend in the market (Agile, AI etc.)
- This is your diagnosis But remember - it’s user driven
- This is your guiding policy Also user driven. What is the thing you want your customers to say about your product.
- Not initiatives hypotheses Abductive learning
- Output – if you launch the app your job is done - makes people do what is planned Outcome – what change have your product/service made – makes people do what is needed Impact – how has this effected the business, humanity and earth – makes people dare to matter
- Marginal gains
- Case story Hypothesis to Concept/Prototype to Product Heavy experiments
- Case story Hypothesis to Concept/Prototype to Product Heavy experiments
- Story: 4 ddw. Ekstra tid. Lav virksomhed. Test test test.
- Not initiatives hypotheses
- Behaviroual and perception
- Not initiatives hypotheses
- Insta – behaviour
- Not initiatives hypotheses
- Bukettyper (brede) Behaviroual
- Not initiatives hypotheses
- Packaging internal processes
- Packaging internal processes and perception
- Not initiatives hypotheses
- Packaging internal processes and perception
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