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Design is the New Management Consulting
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.
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Design is the New Management Consulting
- 1. DESIGN IS THENEW MANAGEMENT CONSULTING A TALKBY KATIELUKAS OCTOBER 11 2018
- 2. ABOUT KATIE My careergrew 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 talkI 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 STRATEGYSLIDE 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
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- 6. MANAGEMENT CONSULTING: ABRIEF 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 KEYCONCEPTS 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 OFDESIGN-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 OFDESIGN-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 MANAGEMENTCONSULTANCIES? 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.
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- 12. WHAT WE TALKABOUT WHEN WE TALK ABOUT DESIGN DesignThinking HCD SystemsThinking Service Design UX CX Innovation Product Design NOTJUSTVISUALS 12
- 13. BUSINESS COLLISION: WHYIS 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 Uncertaintycan 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
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- 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! WEHAVEADVERTISEDTHETHING! 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 organizationsbegin 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 TOHAPPEN,DESIGNERSANDDESIGNTHINKERSMUSTLEADANDMANAGECHANGEAT ANORGANIZATIONALLEVEL. 19
- 20. Structuring teams aroundcustomer 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 organizationor 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 Designmitigates 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 $ $
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- 24. HARD AND SOFTLANGUAGE 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 MANAGERSAS 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 aboutlots and lots of things!Things like: TECHNIQUES& METHODS TOOLS,APPS,& PLATFORMS SMART PEOPLEOTHERTHAN YOU BOOKS& MAGAZINES CONFERENCES& ORGANIZATIONS
- 27. PITFALLS Overpromising. Bad examples. Reliance ontoo few methods. Lone ranger. 27
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- 29. KEY TAKEAWAYS If thereis 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?” 29 That’s the beginning of the work of transforming into a customer-centric, design-led organization.
- 30. KEY TAKEAWAYS Use thedesigner’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. 30
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