maps to discuss, compare & measure designʼs contribution & growth"

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maps to discuss, compare & measure designʼs contribution & growth" Where design adds value How much value by design Position design activities Growth of design Performance of design 2

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design-led companies" Design-Driven Organizations (over 10 years)" " Apple" Ford" Herman-Miller" IBM" Intuit " Microsoft" Newell Rubbermaid" Nike " " Procter & Gamble" Starbucks " Starwood" Steelcase" Target" Coca Cola" Walt Disney" Whirlpool " 5 5

design-led companies outperform" $30,000 $25,000 $20,000 $15,000 $10,000 DMI Design Index Design driven companies outperformed the S&P over ten years by 228% DMI: Design Value Index 2014 dm Th (DV wa le b a g 154% 61% D.Index S&P $5,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 6 6

DV Scorecard DV Index What role does Design play? What future role should it play? How well is Design growing? DV Map Where is Design adding value? How much value? 7

DV Scorecard DV Index What role does Design play? What future role should it play? How well is Design growing? DV Map Where is Design adding value? How much value? 8

design value scorecard the columns" 2014 Design Management Institute 9

role of design built on Junginger" Design as tactical driver Design as organizational driver Design as strategic driver Development & Delivery Influence & Integration Strategy & Business Models Junginger, S. (2009). Design in the Organization: Parts and Wholes, Design Research Journal (2/09), Swedish Design Council (SVID): 23-29. 2014 Design Management Institute 10

role of design " Design as tactical! Driver! Development & " Delivery" Value creation through:" Communications design" Industrial design" Interaction design" Service design" Environmental design" Etc." " Design as organizational driver!! 2014 Design Management Institute Design as strategic driver!!!! 11

role of design " Design as tactical Driver Development & " Delivery" " Design as organizational driver! Influence & Integration"! Value creation through:" Common vision Coordination & coherence of touch points" Identifying meaning" Systems, process design" New efficiencies, less waste" 2014 Design Management Institute Design as strategic driver!!!! 12

role of design " Design as tactical Driver Development & " Delivery" Design as organizational driver Influence & Integration" 2014 Design Management Institute Design as strategic driver Strategy &" Business Models" Value creation through:" Clarifying intent and purpose" Visualizing strategy" Facilitating strategy" Designing decision making" Allocating & planning resources" " 13

role of design " Design as tactical! Driver! " Aesthetics" Functionality! Power-base Supports production"!!! Design as organizational driver! " Connection" Integration! Change leaders" Supports strategy"! 2014 Design Management Institute Design as strategic driver! Strategy Business Models! Defines opportunities" Sets strategy " 14

design value scorecard the rows" 2014 Design Management Institute 15

maturity in the role built on Capability Maturity Model" Maturity - formality and optimization of processes. Relies on level of organizational investment and support. Maturity of processes is evidence Paulk, Mark C.; Weber, Charles V; Curtis, Bill; Chrissis, Mary Beth (February 1993). "Capability Maturity Model for Software (Version 1.1)". Technical Report (Pittsburgh, PA: Software Engineering Institute, Carnegie Mellon University). 2014 Design Management Institute 16

maturity in the role " Processes used varies, or no process used Quality of results relies on experience 2014 Design Management Institute 17

maturity in the role " Processes are managed for time, people and cost" Reduce cost risk, drives team alignment" Processes used varies, or no process used" Quality of results relies on experience" 2014 Design Management Institute 18

maturity in the role " Processes are formalized and sharable" Consistent results, more efficient" Processes are managed for time, people and cost" Reduce cost risk, drives team alignment" Processes used varies, or no process used" Quality of results relies on experience" 2014 Design Management Institute 19

maturity in the role " Variants made to standard processes " Utilized for better results in more cases" Processes are formalized and sharable" Consistent results, more efficient" Processes are managed for time, people and cost" Reduce cost risk, drives team alignment" Processes used varies, or no process used" Quality of results relies on experience" 2014 Design Management Institute 20

maturity in the role " Standard process modified (as being performed), Optimize results, lower risk and waste" Variants made to standard processes " Utilized for better results in more cases" Processes are formalized and sharable" Consistent results, more efficient" Processes are managed for time, people and cost" Reduce cost risk, drives team alignment" Processes used varies, or no process used" Quality of results relies on experience" 2014 Design Management Institute 21

Brand Experience Trends-Driven Planning Home Hardware & Fixture " Manufacturer" Design Studio Trends Driven Planning 2014 Design Management Institute 22

design value scorecard Trends-Driven Planning" Style trends research, style roadmaps, style guides and a point-of-sales audit for retail clients. " Used in client meeting to help them be more successful; positioning manufacturer as a thought leader." Piloting a new process and tools; engaging more of company." Coordinating marketing, design and engineering through the roadmaps, guides and audits." More systematic More consistent results More efficient More integrated Lower risk Broader influence Greater impact Increased reward Design Studio Brand Experience add Trends Driven Planning 23

design value scorecard neutral about kind of value design delivers" Jewelry Design Co. Design Strategy Consultancy Multinational Tech Co. 24

design value scorecard using design to compete" More systematic More consistent results More efficient Lower risk What role does Design play? What future role should it play? How well is Design growing? More integrated Broader influence Greater impact Increased reward 25

DV Scorecard DV Index What role does Design play? What future role should it play? How well is Design growing? DV Map Customer Financial Value Growth Process Where is Design adding value? How much value? 26

design value map hybridized two models used in business today " Customer Financial Value Growth Process 2014 APQC. All Rights Reserved. (See APQC.org)" 27

design value map shows four kinds of value; from The Balanced Scorecard " Customer Financial Value Growth Process Source: Kaplan, R. & Norton, D., The Balanced Scorecard: Translating Strategy into Action, Harvard Business School Press, Boston (1996) " 28

design value map uses the APQCʼs Process Classification Framework SM " 2014 APQC. All Rights Reserved. (See APQC.org)" 29

design value map uses the APQCʼs Process Classification Framework SM " 2014 APQC. All Rights Reserved. (See APQC.org)" 30

design value map Trends-Driven Planning" DMI Design Value Map*! Trends Driven Planning Design Studio Customer (Trends) Value Financial (Studio) Where is Design adding value?" What kind of value? (Basis for Metrics)" How much value? (Basis for Metrics)" Growth Process (Trends) * Source: 2014 APQC. All Rights Reserved. (See APQC.org)" 31

Showing design value and growth Trends-Driven Planning" Design Studio! (2011)! Add Trends-Driven! Planning (2013) " Target Stakeholders" Key Partners" Product Managers" Customers " Leadership" Designers" Product Marketing" Engineering" Consumer Research" Planners" Account Marketing" Sales" Engineering" Impact" Increased Revenues" Brand Building, Thought Leader/ Planning Partner" Outcomes" Better Designed and Styled Products/Product Lines" Share Expertise / a POV" Plan with Customers for Shared Success" Longer Term Planning" Deliverables" Design & styled products" Roadmaps" Style Guides" Retail Audit" Activities" Industrial design work" Trend research" Audit and Gap Analysis" Planning sessions" Resources" Designers" Design Tools & processes" Design Planners" Trend Research" 32

Design Value System foundation for building a stronger design organization DV Scorecard DV Scorecard Summary For Conversations with Leadership, Vision, Benchmarking" DV Assessment! For Strategy, Roadmap, Portfolio Planning, Hiring, Org Design" DV Index DV Map Org Logic Models! For Measurement System for Design" Value Creation Examples! For Business Cases for Design" 33

your own DV Scorecard Summary fill out profile at dmi.org/value DV Scorecard DV Scorecard Summary For Conversations with Leadership, Vision, Benchmarking" DV Assessment! For Strategy, Roadmap, Portfolio Planning, Hiring, Org Design" DV Index DV Map Org Logic Models! For Measurement System for Design" Value Creation Examples! For Business Cases for Design" 34

how to create more Design Value" Go to dmi.org/value " " Read the article Design Value Index" Get a custom Design Value Scorecard - where is your team?" View webcast on-demand" Details to attend a Design Value System Workshop " 35

Questions and Discussion" Thank you:" Michael Westcott "President, DMI " " mwestcott@dmi.org"" Darrel Rhea "Vice Chairman DMI " " darrel@rheainsight.com" Steve Sato" "Co-Chair Design Value Project " steve@satopartners.com" Rob Wallace "Co-Chair Design Value Project rob@bestofbreedbranding.com" The Design Value Research Team" " 36