Service Design Days 2018 - Masterclass Niharika Hariharan (McKinsey & Company)
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Human centred or user centred approach to designing services almost always assumes the hierarchy of people over organisation. Services are often founded on user needs with clearly articulated user value, but almost always fail to address its relevance to the organisation. Due to this one sided lens to problem solving, there is little understanding of why a business should benefit from investing, building, adopting and maintaining the service proposition; as a consequence many service design projects fail to sustain. This workshop focusses on answering three key questions: - How can we consider designing services that add value to both users and businesses equally? - How do we measure the value of experiences that are intangibles and services that can only be experienced? - How can businesses adapt to change in the way they measure impact and define value?
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Service Design Days 2018 - Masterclass Niharika Hariharan (McKinsey & Company)
- 2. Central Saint Martins Boots Wallgreens Vodafone Nokia Research Paint and etch SapientNitro Gardening Barclays Financial Times Museums EY-Seren Collect Art Imperial College Business School Design Director, McKinsey Digital Labs London . @niharikah NIHARIKA HARIHARAN
- 3. MY VIEWS ARE MY OWN :)
- 4. People & Profit: an introduction Get your hands dirty Share and care Duration: 3 hours MASTERCLASS AGENDA Gracias 45 30 90
- 5. Design can help businesses improve their processes and ways of working It brings creativity and innovation to problem solving that businesses traditionally may not have been able to It can offer businesses a competitive advantage Pioneering organisations like Airbnb, Apple and Google have proven Design to be critical to their success WHY HAS DESIGN BECOME IMPORTANT FOR BUSINESSES TODAY? 1. 2. 3. 4.
- 6. BUSINESSES WANT TO BE DESIGN-CENTRIC AS THEY BELIEVE IT COULD MAKE THEM MORE PROFITABLE
- 7. HOW DO YOU SHAPE A BUSINESS TO BE DESIGN LED?
- 9. THE DESIGN PROCESSES HAVE A SINGULAR APPROACH TO PROBLEM SOLVING
- 10. DISCOVERY - Understand the problem space - Understand the business via stakeholders - Understand the technical landscape Not feasible. Too expensive No clear mapping back to business health and abilities What is the investment & what is the gain? Limited ability to build innovation and design muscle across the organisation - Synthesise findings - Identify opportunities - Validate value for users - Create tangible outputs; frameworks, products, services etc - Test with users - Improve outputs - Run pilots - Launch to market - Deploy operational initiatives SYNTHESISE DESIGN TEST AND LEARN EMBED THE DESIGN PROCESS HAS ITS LIMITATIONS
- 11. Designers prioritise people over business and don’t see them as equals Design doesn’t understand business as well as businesses understand businesses and vice versa Design and businesses are motivated by very different things Design and business see the evolution of services as vastly different THE DESIGN PROCESS HAS ITS LIMITATIONS 1. 2. 3. 4.
- 12. Can ensure business needs are catered for... Can ensure that the business is motivated to sustain the service... THINKING ABOUT PEOPLE AND PROFIT EQUALLY.... Can ensure higher adoption and collaboration...
- 13. Can achieve ideal state design with more people, budget, time and support...
- 14. PEOPLE & PROFIT FRAMEWORK Employees Spend Spend Spend Spend Size Skills Structure Collaboration Retention Culture Measures Adoption Retention Repeat engagement Network effects Measures Perception Loyalty Measures Phases Partnerships Infrastructure Measures New talent 1 yr 2 yr Cost 1 yr 2 yr Cost 1 yr 2 yr Cost 1 yr 2 yr Cost 1 yr 2 yr Revenue 1 yr 2 yr Preference 1 yr 2 yr Revenue 1 yr 2 yr Growth Growth Growth Growth Users (new and existing) Brand Service Development Retention Investments Investments Investments Investments Market share Market share Market share
- 15. Speed - taking your product/ service to market Growth - defining how the service will evolve over its life cycle and what value it will offer to people and businesses alike Sustain - quality of the service experience, what is needed to keep the service running; people, skills, funds, changes to the business model etc Attribution - the cause and effect of success and failures that can be directly related back to the elements of the service Ethical - people and culture, guided by the right intent 1. 2. 3. 4. 5. KEY CONSIDERATIONS OF THE PEOPLE & PROFIT FRAMEWORK
- 16. Treat business and users alike - looks at users from a human and from a business point of view Define opportunities that can be sustained Don’t be afraid to justify with numbers Do the right thing Do things well over doing them fast People adapt There is always that one person who has the final say No money - no honey LESSONS LEARNT 1. 2. 3. 4. 5. 6. 7. 8.
- 17. {.*x**}
- 18. People & Profit: an introduction Get your hands dirty Share and care Duration: 3 hours MASTERCLASS AGENDA Gracias 45 30 90
- 19. PEOPLE & PROFIT FRAMEWORK Defining new growth opportunities
- 20. Pick your airline YOU ARE PART OF A SERVICE DESIGN TEAM FOR A SUCCESSFUL AIRLINE COMPANY Your airline is looking to grow its retail business (shopping online, and in-flight) in the next 2 years. Your team has to present a new service proposition for this retail business to the exec board and request funding
- 21. You should consider the following while shaping your service proposition: 1. User needs, aspirations and expectations across relevant channels 2. Business needs, aspirations, expectations and core capabilities 3. Value to the business and to users alike YOUR SERVICE PROPOSITION NEEDS TO BE BRAND ALIGNED, FOCUSSED BOTH ON USERS AND BUSINESS EQUALLY...
- 22. Divide your groups into 2 to research on the following: Sub group 1 Understand people, trends and disruptors: Define the experience of shopping with the airline. What worked? What didn’t? What could change? Also explore future trends and potential disruptors Part 1: IN YOUR GROUPS... 30 minutes Sub group 2 Understand the business Research your airline’s current retail offering. Consider looking into statistics to indicate how other airlines are performing in this space. Also look at generic benchmarks in retail space to get a broader sense of the growth potential
- 23. Flesh out your service proposition. You can visualise this in the form of journeys/storyboards or prototypes that show how the new retail experience would work Define your ‘People & Profit’ framework to support your service proposition Prepare to present this to the executive board for funding. You will have 5 minutes to present your idea to convince them PART 2: IN YOUR GROUPS... 40 minutes
- 24. People & Profit: an introduction Get your hands dirty Share and care Duration: 3 hours MASTERCLASS AGENDA Gracias 45 30 90
- 25. PRESENT YOUR SERVICE PROPOSITION FOR FUNDING... - Present your service proposition supported by the ‘People & Profit’ framework to the exec board to request funding - Share how the service proposition would grow in the next two years to keep the customers engaged and the business profitable - Have a clear view of the business and people value 5 minutes per group
- 26. People & Profit: an introduction Get your hands dirty Share and care Duration: 3 hours MASTERCLASS AGENDA Gracias 45 30 90