Katie Lukas gave a talk about how design is emerging as the new management consulting. Some key points: - Management consulting historically focused on operations and strategy but now also emphasizes design, UX, CX and innovation. However, consultants are very expensive. - Applying design principles like listening to customers, prototyping, and iterating can help organizations navigate uncertainty, reduce risk, and drive innovation in a cost-effective way. - Organizations are increasingly recognizing the value of a design approach to gain insights into customer needs and wants in order to develop the right solutions. This helps structure teams and strategy around customer experiences.

1. DESIGN IS THE NEW MANAGEMENT CONSULTING
A TALKBY KATIELUKAS
OCTOBER 11 2018

2. ABOUT KATIE
My career grew up with the web, starting in 1995 working on the very
first weather.com site at Siegel & Gale, getting very excited about
Macromedia Director and the new CSS layers implementation. Which
is a long way of saying I am just incredibly old.
Throughout these past twenty-odd years, there have been
innumerable changes and cycles in technology, but much more
momentous and interesting are the sea changes in how we
create, organize, lead, and think about organizations and the
people within them.
2

3. INTRODUCTION
At every talk I give or attend, in every conversation online, in all the
literature, the same questions keep coming up: “How do I get the
company to pay for all this UX/CX/research stuff?”
This talk is structured to give you the tools to answer that question with
another: “How can you make wise and frugal choices without it?”
THIS IS MANAGEMENTBYDESIGN.
3

4. INSPIRATIONAL MILITARY STRATEGY SLIDE
Variety
Rapidity
Harmony
Initiative
Agility
4
Do lots of things fast
Co-exist with those around you; do not be passive
Follow the above, and emphasize the implicit over the
explicit by allowing the whole team to continuously
interact with the external world and with each other

5. 5
A LITTLE BACKGROUND

6. MANAGEMENT CONSULTING: A BRIEF HISTORY
While engineering, legal, and financial consulting became common in the late 1800s
during the industrial revolution, management consulting as we know it today arose
out of the regulatory and policy changes of the post-Depression New Deal.
1886
ARTHURD. LITTLE FOUNDED
1893
TAYLOR OPENS CONSULTANCY
1911
TAYLOR PUBLISHESPRINCIPLESOF SCIENTIFIC
MANAGEMENT
1933
GLASS-STEAGALLBANKING ACT
1926
MCKINSEY
MANAGEMENT ENGINEERING MANAGEMENT CONSULTING
SCIENTIFIC MANAGEMENT
1930
~100FIRMS
1940
~400FIRMS
1935–38
US STEEL REORG BY
FORD, BACON & DAVIS
1948
RAND CORP FOUNDED
1956
STAFFORDBEER & MANAGEMENT
CYBERNETICS
2001
ACCENTURE
1980–
1990
EXPLOSION OF
MANAGEMENT
CONSULTING ACTIVITIES
2002
BIG FOUR
1963
BCG FOUNDED
1973
BAIN FOUNDED
Primary Source: The Origins of
Modern Management Consulting,
McKenna, JHU

7. MANAGEMENT CONSULTING KEY CONCEPTS
ACCOUNTING
LEGAL ENGINEERING
THEN
OPERATIONS
STRATEGY
EXPERIENCE
DESIGN
HUMAN
RESOURCES
PLANNING
IT
DIGITAL
TRANSFOR-
MATION
CHANGE
MANAGEMENT
RISK
DESIGN
MARKETING
RESEARCH&
ANALYTICS
NOW
7

8. THE EMERGENCE OF DESIGN-AS-MANAGEMENT
Formally applying some kind of design mindset to organizational problems goes
back further than one might expect.The language of this practice has changed
many times, but from a central theory perspective, there is continuity.
1937
von Bertalanffy develops
term "general systems
theory"
1948
Weiner defines
cybernetics
1957
Bucky Fuller introduces
"Design Science"
1962
Conference on Design
Methods, London
1965
L. Bruce Archer,
Systematic Method for
Designers
1968
Herbert Simon, The
Sciences of the Artificial
1970s
Scandinavian cooperative/
participatory design
1971
Victor Papanek - Design
for the Real World
1972
Koberg & Bagnall, The
Universal Traveler
1973
Horst Rittel describes
"wicked problems"
1980
Lawson, How Designers
Think
1982
G. Lynn Shostack
introduces the "service
blueprint"
1982
Nigel Cross launches
"Designerly Ways of
Knowing" series
1983
The Psychology of
Human–Computer
Interaction
1983
Schön, The Reflective
Practitioner
1987
Peter Rowe, Design
Thinking
1991
IDEO founded by merger
1992
Buchanan, "Wicked
Problems in Design
Thinking"
1993
Norman popularizes "User
Experience" as a term
1994
Lou Carbone coins
"customer experience"
1999
Sachse & Specker, Design
Thinking
2001
Livework - 1st service
design consultancy
2005
Stanford's d.school starts
teaching design thinking
2007
Inaugural Service Design
Conference
2009
Tim Brown, Change by
Design
2010
Stickdorn – This is Service
Design Thinking
2012
Manning, Bernoff, Bodine,
Outside In
EXPLOSIVEGROWTH; DIFFICULTTO CATALOGUE
SEVERALBEGINNINGS SCIENCE OF DESIGN
PHILOSOPHY OF DESIGN
RISE OF THE COMPUTER
DESIGN FOR ALL
Sources include: Design Thinking
Origin Story, Designerly Ways of
Knowing, and the Interaction Design
Foundation Resources
8

9. THE EMERGENCE OF DESIGN-AS-MANAGEMENT
Formally applying some kind of design mindset to organizational problems goes
back further than one might expect.The language of this practice has changed
many times, but from a central theory perspective, there is continuity.
Missing from this timeline are a number of interconnected fields
and practices, some of which figure prominently in design today
Anthropology
Ethnology
Industrial Design
Urban Planning
Lean /Toyota / Just inTime
Agile
User Interface Design
Behavioral Economics
9

10. COMPETING WITH MANAGEMENT CONSULTANCIES?
Management Consultants have gotten the memo.They are talking
constantly about design, design thinking, CX – and often to good
effect. However, the big guns have a few weaknesses:
10
They are incredibly
expensive.
Their messages are
often inconsistent.
They are external
and monolithic.

11. 11
CONTEXT & FRAMING

12. WHAT WE TALK ABOUT WHEN WE TALK ABOUT DESIGN
DesignThinking
HCD
SystemsThinking
Service Design
UX
CX
Innovation
Product Design
NOTJUSTVISUALS
12

13. BUSINESS COLLISION: WHY IS THIS HAPPENING NOW?
UNCERTAINTY
COMPLEXITY
WEIRDPOLITICS
Companies hear constantly that they
must digitally transform to survive. Adapt
or die. Innovate or starve. Fear is a great
motivator.
Alongside this, design thinking has matured
as a practice. Results are in. Not all of them
are good! But it has become very difficult to
ignore the force of design.
1930s
Policy changes spur
growth of management
consultancies
2010s
Technology, economic, and
workforce complexity spawn new
ways of thinking about business
13

14. THE UNCERTAINTY PARADOX
Uncertainty can cause some companies to freeze
and become paralyzed and rigid, afraid to spend a
dollar that doesn’t translate into immediate ROI.
Design-oriented strategies and tactics can
remove uncertainty and mitigate risk.
If you’re not making decisions based on
rigorous communication with your
customers: on what are you basing them?
BUT
RIGIDITY &
PARALYSIS
INNOVATION &RE-
INVENTION
14

15. 15
KEY CONCEPTS

16. DATA& ANALYSIS INTERVIEWS &
ETHNOLOGY
WHY THE PRINCIPLES OFDESIGN WORK FORBUSINESS
Listen to your customers
Prototype & test /Test & learn
Everyone who affects the product is a designer
Think deeply about your decisions
Iterate, iterate, iterate
16

17. WEHAVE DESIGNEDTHETHING!
WEHAVE MADETHETHING!
WEHAVE ADVERTISEDTHETHING!
WEHAVE SPENTOUR BUDGET!
NOW, WHOWANTSTHETHINGWEHAVE MADE?
WEHAVE WATCHEDTHECUSTOMER!
WEHAVE LISTENEDTOTHECUSTOMER!
WEHAVE SYNTHESIZEDTHEDATA!
WEHAVE DESIGNEDTHETHING!
WEHAVE MADETHETHING!
WEKNOWWHOWANTSTHETHING!
MOVING THE VIEWPORT (PROACTIVE VS.REACTIVE)

18. LOOKING INWARD
DESIGNSUPPORTSORGANICORGANIZATIONS
Design-led organizations begin to shed some of the rigid hierarchy and
siloed departments that repel open communication and ossify teams.
Small, autonomous, cross-disciplinary teams organized around the
natural experience of the customer move quickly, make better decisions,
communicate better, and deliver greater value.
It is terrifying to change to this trust-based model, but the results have
been demonstrated repeatedly – when implemented honestly.
18

19. LOOKING INWARD
DESIGNSUPPORTSORGANICORGANIZATIONS
FORTHIS TO HAPPEN,DESIGNERSANDDESIGNTHINKERSMUSTLEADANDMANAGECHANGEAT
ANORGANIZATIONALLEVEL.
19

20. Structuring teams around customer experiences and introducing
design-led, customer-centric organizational strategy opens up the
possibility for substantial competitive advantage.
Generative research geared towards identifying opportunities by
observing and listening to customers highlights market openings.
Design activities focused on identifying what should be built and
why provides the product team with concrete, logical goals and
effective means to test success.
LOOKING OUTWARD
ANTICIPATORY&GENERATIVE DESIGN
20

21. COMMUNICATION
A design-led organization or team constantly engages with visuals to
communicate with each other and with customers and stakeholders
about what’s going on. In a designed organization, we can use pictures
to show and see what’s going on throughout the business.
Pictures, sticky notes, scribbles, maps, and diagrams do much better
than words.
21
JUST DRAW A PICTURE

22. RISK & FAILURE
Design mitigates risk via testing
and experimentation
BUT
Failures are a natural outcome of
experimentation
22
Identify market opportunities
Prevent product failure
Decrease friction to increase profit
Reduce customer service costs
Determine optimum configurations
Dedicate time to test & learn
Build throwaway prototypes
Spend time in the field
Use testing platforms and panels
Increase time for workshops & collaboration
$
$

23. 23
PRACTICAL ADVICE

24. HARD AND SOFT LANGUAGE
UX and customer experience work can be perceived as soft and
fluffy.Words like “empathy” and “journey” are seen by some as
incompatible with the perceived hard-nosed strategy and tactics of
Business. Design is sometimes boiled down to visuals.
24

25. EMPATHIZE WITH MANAGERS AS WELL AS USERS
25
SAYS
THINKS
DOES
FEELS
WHY IS THIS SO
EXPENSIVE
IDONOT
UNDERSTAND THIS
CONFUSEDAND
THREATENED
WHAT ISFAMILIAR &
COMFORTING

26. KNOWABOUT THINGS
Know about lots and lots of things!Things like:
TECHNIQUES& METHODS TOOLS,APPS,& PLATFORMS SMART PEOPLEOTHERTHAN
YOU
BOOKS& MAGAZINES CONFERENCES&
ORGANIZATIONS

27. PITFALLS
Overpromising.
Bad examples.
Reliance on too few methods.
Lone ranger.
27

28. 28
TAKEAWAYS

29. KEY TAKEAWAYS
If there is one thing I hope you take
away from this talk, it is that an
organization cannot know what to
build, cannot truly know the market,
without doing the work of
understanding the customer.
The answer to “how can I afford this” is
“what will you do without it?”
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That’s the beginning of the work of
transforming into a customer-centric,
design-led organization.

30. KEY TAKEAWAYS
Use the designer’s talent for communication purposefully and
intentionally to build support for your goals.
Organizations need leaders who can think in design; start thinking
about leading with your practice and bringing people along with you.
The process of creating what companies make is inextricably tied to
how those companies are put together.
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31. DESIGNYOURPRODUCTS
DESIGNYOURWORK
DESIGNYOURTEAM
DESIGNYOURINTERACTIONS
DESIGNYOURCOMPANY

32. THANK YOU
VISIT MANAGEMENTBY.DESIGNTODOWNLOADTHESLIDES