SDN Global Conference presentation by Ulla Jones and Tuomas Manninen
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The Uncharted Territory of Strategic Design: Ulla Jones and Tuomas Manninen gave a presentation on how to build design into a strategic capability in an organization. By using service design, metrics and meticulously building design culture, the design maturity of an organization can be tracked and grown.
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SDN Global Conference presentation by Ulla Jones and Tuomas Manninen
- 1. © OP 1 Tervehdys! Hi there! #SDNGC18 - Unchartered Territory of Strategic Design by @tuomanni and @ullajones
- 2. © OP
- 3. © OP Uncharted Territory of Strategic Design 3
- 4. © OP Highlights Our journey to design as a strategy Design maturity framework How to know you have arrived 4
- 5. © OP Design maturity model by Danish Design Center STEP 2: Design as form-giving Design is viewed exclusively as the final form-giving stage STEP 1: Non-design Design is an invisible part of product development STEP 3: Design as process Design is not a result but an approach STEP 4: Design as strategy Design is in relation to the company’s business vision and future role in the value chain
- 6. © OP STEP 1: Non-design Design doing: Doesn’t exist Design people: There are no formal design roles Design culture: How to innovate is the hot topic STEP 3 STEP 4 STEP 2
- 7. © OP 7 STEP 1: Non-Design Design is not customer driven
- 8. © OP STEP 2: Design as form-giving Design doing: Mobile app & Pivo mobile wallet startup Design people: Development Center in Oulu with first designers Design culture: Service Design in isolated pockets. Projects win awards. STEP 1 STEP 3 STEP 4
- 9. © OP STEP 2: Design As Form Giving Designers working at the end of the process
- 10. © OP STEP 1 STEP 3: Design as process Design doing: Training internal customers to ‘buy’ design. All projects are good projects Design people: Omni-channel designers, Business Designers Design culture: Systematic metrics. Part of R&D process Impact? STEP 4 STEP 2
- 11. © OP 11 STEP 3: Design as Process All projects are good projects
- 12. © OP STEP 4: Design as strategy Design doing: Changing focus to business management Design people: Design is not only for designers Design culture: Thought leadership, Design DNA, Design training STEP 1 STEP 2 STEP 3
- 13. © OP 13 STEP 4: Design As Strategy Changing focus to business management
- 14. © OP 14 STEP 4: Design as Strategy Design is not only for designers
- 15. © OP 15 STEP 4: Design As Strategy Thought leadership
- 16. © OP Design at OPLadderStep&DesignResources STEP 1 STEP 2 STEP 3 STEP 4 1996 2011 2015 2017
- 17. © OP 17 WHY INVEST IN DESIGN? DATA DRIVEN DESIGNDESIGN IS A MINDSET HUMAN + MACHINE OP on YOUTUBE
- 18. © OP Take-aways: Step 4 Step is a winding road 18 1. Metrics: from external to cultural 2. Designer becomes a coach 3. Design brings business value 4. Design is only done collaborately 5. Hunt for unicorns ends here! #SDNGC18 - Unchartered Territory of Strategic Design by @tuomanni and @ullajones
- 19. © OP Step 5: Design as a Culture • It is time to write the next steps? • Don’t get stuck on methods on ladder 3 • Celebrate craftmanship and design ethos • Lifecentric design • Inquiry as a general approach 19 #SDNGC18 - Unchartered Territory of Strategic Design by @tuomanni and @ullajones
- 20. © OP Thank you! Kiitos! Ulla Jones Design Culture Lead twitter @ullajones LinkedIn: Ulla Jones +358 50 551 6630 ulla.jones@op.fi Tuomas Manninen Head of Design & CX twitter @tuomanni LinkedIn: Tuomas Manninen +358 40 541 7498 tuomas.manninen@op.fi
Editor's Notes
- Hi There! I’m Tuomas. Mention: co-op We come from an unit Design & Customer Experience. Our main objective: From product and it centric and to achieve that we help the organization to see the world I’m Ulla, I work at OP Financial Group as a Design Culture Lead. It is a unique – We’ll get back to us and our roles a bit later. 1 minute / person
- TUOMAS: We are OP is a Co-operative bank doing business in Finland. Focus: customer (our owners) first! 50 / 30 – Helsinki & Oulu Design team size and roles, locations and Competence center for retail banking, non-life insurance and wealth management and Service Channels both BtoC and BtoB and 1 minute Total 4 minutes now
- ULLA: We are all here as we aspire advance design’s role and position. There is no roadmap hence the to name our presentation. Uncharted Territory of Strategic Design 1 minute Total 5 minutes
- ULLA: Our talk today will touch these topics. We will introduce how we at the OP Financial Group made the journey We’ll introduce you to a design maturity framework that we have used to measure and monitor our progress We’ll go through the key points on how to get there and what we think we think is the next step for the maturity model. 1 minute Total 3 minutes
- Tuomas We’ve used this model to track and measure maturity of our the design culture in the organization. Design intensive organizations: better and faster to innovate, more successful in business and are valued higher than non design companies. The ones who climb fastest on FT 500 list are design driven companies, or what kind of companie’s share value rises fastest.... Ulla It’s important to remember that organization doesn’t move as a monolith, but functions in the organizatoin can be above or behind average and you’re still making progress. In our presentation we will go through the steps. The first three we’ll go through in less detail and focus on step 4: design as strategy. We will look at each step from three different angles: Design Doing Design People Design Culture 3minutes Total 8 mintes
- Ulla: Let’s go back to the days when our organization was at the step 1. Development was happening and new services were obviously being launched. Tuomas: This was before year 2011 But design didn’t play any role in the process or if it did, it was only an afterthought. No designers were involved in the process. Innovation was a hot topic at the time but design didn’t play any role in discourse. 1 minute Total 9 minutes now
- Tuomas: What you see is our first online bank. Feast your eyes. The year is 1996 were launching web services 2nd in Europe, 4th in the world. 1 minute Total 10 minutes
- Tuomas: 2011 we move to step 2 when development center was formed over 600 km from the HQ. (in Oulu) and first in-house designers were hired. This was actually at the time when Nokia (joke) was laying off people in Oulu and OP saw an opportunity to hire whole teams. It was actually a strategical decision to found the development center 600 km’s from the head quarters. Ulla: Ignition for the design culture was the fact that the development center was separate from the main organization and has freedom to develop apart from the more rigid banking culture that is traditionally very risk averse and also very product centric and not customer-centric. While in-house designers were working away on specific projects in Oulu, service design was happening in isolate, consultant driven pockets in other parts of the organization. The work was also commissioned by few manager with personal interest in the topic but hadn’t yet achieved larger appreciation. 2 minutes Total 12 minutes
- It is worth mentioning that from the get-go we’ve done things right and without cutting any corners. The design-driven concepts that were done, kept winning awards and driving outstanding business results. 1 minute Total 13 minutes
- Tuomas: Before we entered the step 3. We noticed that our internal designers were focused on delivery and worked at end of the design process, while concept designs and insights were bought from external agencies. This lead to a imbalance where the strategic insights gathered at the beginning of the project left with the external consultants when the project was finished and no knowledge accumulated internally. This is how we were able to sell a full internal step 3 by 2015. By the end of 2015 we hired first business designers and strategic service designers. This is also whrere we started to calculate the impact of design by service design presentage – How many projects were using design methods through out the project from ideation to the launch. 2015 – 10% but already at the end 2015 – 36% . Business designers were in Management score card, combination of the two methods… 2 minutes Total 15 minutes
- Ulla: In the beginning we considered all projects to be good projects. There was no selection where design would benefit the project the most. Projects came to as given assignments instead of us being part of forming the initial case. However, based on this model ,we were part of the development process without making significant impact. This is clearly also a weakness of the model that it focuses on processe more than value. 1 minute Total 16 minutes
- Ulla: This led us thinking that we should focus more on the quality than the quantity of work. 1 minute Total 17 minutes
- Tuomas: Design doing: Changing focus to business management. In the first stage: We were focusing more on the R&D function and how things are done Focus turned to business function and what was done. We were influencing what is in portfolio but what was going to the portfolio. Integrating design thinking into parts of the organization where the employees can apply the methods into their daily work without designer’s help. Metrics: From external metrics to cultural metrics Design PMO: scaling design to assure design makes an impact 2 minutes Total 19 minutes
- Ulla: Design people: Design is not only for designers STEP 4: Design as Strategy Design is not only for designers A few words about business design: in 2015 we were one the first companies in Finland to hire business designers. We’ve iterated on the role of the business designer 4 times since 2016. This just shows that while we knew that we needed designers who would focus on the early parts of the design process, we didn’t have their roles all figured out in the beginning. Iterative as design in general. While we’ve separated business design from service design, this should not be interpreted as an effort to diminish the importance of service design. The jury’s still out on whether Business Design and Service Design are separate fields. We’re not interested in that discussion. To us design tinking is what unifies anyone who works at OP as a designer and therefore we are strict to point out that there is no hierachy between the two, it is merely the focus. While our internal roles are definitely an indicatior that we’ve stepped firmly on the step 4. More notable is that Design is not only done by designers anymore. Every designer has also a role in transforming the organization by teaching their stakeholders design thinking and methods. 2 minutes Total 21 minutes
- Ulla At the step 4. It is equally important to integrate design through out the organization as it is to keep the designers motivated. Design is no longer for designers only the people using design methods need food for thought and motivation to keep applying the learned tools. In 2015 we started running semi-annual Design Days with open invitation to anyone in the organization to attend. The success has been huge, one event sold out in 4 minutes 150 tickets. We have most definitely reached all the early adapters but now our challenge is more to reach the early mass. So we’ve shifted the focus to function specific design days, and just wrapped up a legal design day for 80 company lawyers. Plan is to run similar events to HR, Insurance business owners etc. Design Culture at this level is also thought leadership that is gained by internal and external visibility. Working on PR and charity projects, motivate our designers that help us streamline our design process while working on an inspiring external challenge. But fundamentals need also to be in place. And this is why Design DNA ie. Design philosophy and ways of working need to be written down and agreed by everyone. Learning journeys to connect and commiserate with local designers in other design heavy locations such as London, Berlin and Silicon Valley. We’re already planning our next excursion, so if you’re up for it, can we visit you? – you don’t hvae to say yes now, just connect with me on LinkedIn later ;) 2 minutes Total 22 minutes
- Tuomas: It’s important to remember that organization doesn’t move as a monolith, but functions in the organizatoin can be above or behind average and you’re still making progress. The timeiline begins from from the beginning of digital services development. But the company itself is over 100 years old. Go through the stages in short. Emphasis on how long it took to move from one to another. 1 minute Total 23 minutes
- ULLA: Topics of our semi-annual design day share the same message: First one was titeled: What is service design Why to invest in service design Data driven design Design is a mindset Human + Maschine Everything can be designed Videos from all design day’s can be found from OP’s Youtube Channel with english subtitles. 1 minute Total 24 minutes
- Ulla Metrics change : from external to internal metrics – also new metrics are needed! Designer becomes facilitator while the organization applies design thinking to their daily work. Design as business value - No longer just a usability or methodological issue Design is done together – from actor to fascilitator Skills and competences: unicorn vs spiky design team with many ’craftsmanships’ 2 minutes Total 26 minutes
- Model is from 2011 – maturity is hard to reach. Is it time to update the model? Designer talk seems to focus on steps 2-3, methods to value creation Craftmanship (no star designers and ego) and Design ethos (functionality, usability) Lifecentric not just humancentric: design has meaning Inquiry as an balanced approach at schools and various organizations and functions 2 minutes Total 28 minutes
- TUOMAS: Thank you!