Design Leadership

At the IIT Design Strategy Conference on May 23rd, Dr. Robert Blaich facilitated discussions around Design Leadership. He pointed the following that it's worth thinking about:

1. "Design Champions" such as, Raymond Loewy, Walter Dorwing Teague, George Nelson, Charles Ray Eames, Philips Stark, Michael Graves, Dieter Rams, Bill Stumpf & Don Chadwick, Jonathan Ives, etc.

2. "Champions of Design" such as, Akio Morita of Sony, Steve Jobs of Apple, Jan Timmer of Philips, Rolf Fahlbaum of Vitra, Sam Farber of OXO, the De Pree's of Herman Miller, A.G Lafley of P&G, and leaders at Canon, B&O, Samsung and other outstanding international companies.

3. Qualities and Characteristics that nurture the special relationship between designers and business executives..."The fertile ground"

4. Difference between Design Leadership and Design Management:

Leadership:

• Uncertainty
• Complexity/Change
• Instability
• Future Orientation
• Initiation
• Direction Setting
• Leadership of People
• Concepts & Intellectual Resources
• Collaboration
• Vision & Inspiration
• Pro-Active
• Knowledge Creation
• Effectiveness

Management:

• Certainty
• Predictability/Order
• Stability
• Present Situation
• Administration
• Problem-Solving
• Management of Things
• Financial, Technical, Time Resources
• Coordination
• Control & Organization
• Re-Active
• Knowledge Application
• Efficiency

"Design Leadership" is a dimension of Management, oriented more towards aspects of Strategy Creation, change and creative development. Coping with change requires a delicate interaction between leadership and management, with the role of design leadership laying the essential groundwork for managing change"
"Design Management" is the implementation of design as a formal program of activity within a corporation by communicating the relevance of design to long term corporate goals and coordinating design resources at all levels of corporate activity to achieve the objectives of the corporation.

5. Integration of design as a strategic element and a core competency in a corporation by developing a highly professional pool of talents. To strengthen the concept of design leadership into all the corporate funtions, from product development to communications and marketing. To develop a broad based environment for design awareness that encompasses both business people and the general public.

DESIGN LEADERSHIP

The collaboration between "Design Champions" (Designers) and "Champins of Design" (Corporate Leaders) who support design to achieve strategic corporate goals is the coin of value today. What are the qualities, the characteristics that nurture the special relationship between designers and design leaders? Any company that wants to survive knows that it must achieve a competitive edge. Design as a strategy for competitiveness can deliver the quality advantage, the innovative edge that will be essential for survival.

Physicist Stephen Hawking states "Leadership is daring to step into the unknown" and as designers we have an opportunity to be daring in our visions for the future. Business leaders are increasingly looking to designers to invent the future, but the challenge for designers is to respond to this opportunity in ways that are humane, visionary and wise. That's what Design Leadership is all about.

Innovation Toolkit

IIT Institute of Design put together a really comprehensive matrix of methodologies that can be used in various phases of the design process.
Click the image to link to the PDF document. If you haven't applied some of these methods, this is a good place to start knowing what's out there and try them out in your program. Also the chart below explains some of these methods and how it can be effective for managing innovation. (Source: Innovation Process Management Web site)

Tools for - Idea Generation, Product Improvements

Common Title	Description	Effective For
TRIZ - Inventive Problem Solving	The theory of inventive problem solving is based upon extensive research into real inventions. The research focused on the most significant of those inventions - where the solution to the problem was not entirely obvious and required no trade-offs. The results of which revealed that inventors worldwide sub-consciously applied a common technique - TRIZ brings together these techniques and combines them with very practical methods.	Scientific approach to new solutions to engineering problems.
Brainstorming (Osborne)	This is a classic tool recognised by many, but it is not that successful at generating new ideas. As a method it is not efficient at generating new ideas - Life is just too short! Limited to smaller groups - can create problems with group dynamics.	Generating new associations.
Brainstorming - Catalogue Techniques	Participants Use pictorial matter (Catalogues, photos, etc.) as triggers. More structure than the classic - slightly more efficient as well.	Competitive analysis, new features.
Card / Post-it Systems	Participants Use slips to write ideas down - requires little management intervention or leadership skills - It can be used successfully on large groups. A variation of this technique is 'pass it on' where participants pass on a single card adding ideas to the list.	Idea generation for large groups
Brain writing - Trigger / Cascade	Similar to classic brainstorming - without the disadvantages. More efficient at generating new ideas. Participants use post-it pads to provide triggers for discussion.	Ideal for new teams. Generating new associations.
Knowledge Trees	Structured brainstorming and reference technique for generation of new products. Highly effective when used by cross functional teams. Can be applied to virtually all aspects in the product design phase. The method was developed by IPM and is used on a regular basis.	Generating specifications. Sharing product knowledge and general understanding.
Parametric Analysis	Parameter based analysis - Quantitative, Qualitative, Categorical. An existing (or competitor) product is used as a benchmark with particular attention being paid to specific parameters. It is then indicated how these parameters would have to be different to enhance satisfaction.	Developing an existing product or product portfolio.
Semantic Processes - Random Matching	Random word-to-word to trigger new associations	General purpose tool
Semantic Processes - Idea Search Matrix	Checklists of questions to trigger new thoughts and ideas	General purpose tool
Excursion Technique	Using words and situations to lead away from the problem and reality. Switching back when a new idea or association is seen. Often closes on one idea	General purpose tool
Problem Abstraction - Why?Why?....	Problem Abstraction or Semantic Processes (redefinition) attempts to reduce problems to their most basic level - problem goals and boundaries are then set. The procedure then follows a series of Why? questions followed by a subsequent Alternative? Good Team exercise.	Developing existing portfolio. Identifying market opportunities for new products.
Ideas Book	Simple technique but can reap good results - Ideas are entered into a dedicated book from anyone who wishes (and at any time) - a relaxed approach to new ideas and suggestions. Can fall quickly into disrepute if not part of an evaluations procedure.	Good when no time limit is present. Ongoing suggestions.
Orthographic Analysis	Orthographic analysis is a way of arranging several attributes of a problem in a graphical representation of corresponding dimensions. A general purpose version of orthographic analysis takes a product and represents its Material, Manufacturing Processes and its Market along three orthographic axes.	Portfolio enhancement. Specific solutions to known market requirements.
SCAMPER - Stretch Matrix	Substitute, Combine, Adapt, Magnify ( or Minify), Put to other uses, Eliminate, Re-arrange (or Reverse) - Together they make up a checklist of possible product modifications.	Product improvements and enhancements.
Analogies	A particular form of thinking or reasoning in which the properties of one object are thought of in terms of a second object which is different but does have elements in common with the former. Ideas may come from nature or other similar products.	New product features.
Evaluation - PIPS	Phases of Integrated Problem Solving - Is a numerical scoring tool that divides the problem (or opportunity) and processes into individual stages and evaluates individually.	Products and Processes
Clichés and Proverbs	A technique to jog the mind out of conventional thinking (out of a rut). Armed with a list of common Clichés and Proverbs ask how each one may apply or be applied to the subject or problem.	General Use

Tools for - Product Definition, Design and Planning

Common Title	Description	Effective For
QFD : Quality Function Deployment	Quality Function Deployment is a customer oriented approach to product development and innovation. It is a powerful tool for use by product managers and development teams. The methodology takes the design team through the concept, creation and realisation phases of a new product with absolute focus. QFD also defines what the end user is really looking for in the way of features and benefits.	Structured Product Specifications. Taking the 'Voice of the Customer' through all relevant areas of the Company.
Delphi Technique	The Delphi Technique pulls ideas from participants by means of a highly structured series of questionnaires gradually honing into problems or opportunities. Participants are chosen for their knowledge in their particular field. This technique is good for groups of participants who do not normally meet. The success or failure of this technique is only as good as the chosen participants.	Problem solving, Product definition.
Brainstorming - Catalogue Techniques	Participants Use pictorial matter (Catalogues, photos, etc.) as triggers. More structure than the classic - slightly more efficient as well.	Competitive analysis, new features.
Card / Post-it Systems	Participants Use slips to write ideas down - requires little management intervention or leadership skills - It can be used successfully on large groups. A variation of this technique is 'pass it on' where participants pass on a single card adding ideas to the list.	Idea generation for large groups
Market Needs Research	Market Needs Research is a technique for finding out what the Customer requires (and needs) from a product. It determines whether Users perceive a need which is not currently satisfied by existing products. Similar to elements of the QFD process it is essential to have direct access to the end user and to understand user requirements. The process defines subsequent questions that need to be handled by traditional research methods (Quantitative and or Qualitative).	New product specifications
Opportunity Specification	A concise specification document describing the market need for a proposed new product. It is a good tool for screening new ideas (products) against the companys' capabilities. It describes the business opportunity of the proposed product in terms of core benefits. It also justifies the business opportunity in terms of commercial viability.	Concise business justification, market opportunities, product identification
Knowledge Trees	Structured brainstorming and reference technique for generation of new products. Highly effective when used by cross functional teams. Can be applied to virtually all aspects in the product design phase. The method was developed by IPM and is used on a regular basis.	Generating specifications. Sharing product knowledge and general understanding. A team builder.
Visual Mapping	Series of matrices position product features and attributes in a visual way - Simple but powerful technique to share new product features with a multi disciplinary team	Product definition - Aids in the communication between Development, Marketing, Industrial design.
Product Function Analysis or (FAST)	Function Analysis Systematic Technique is a method of systematically analysing the functions performed by a product. Once again intimate knowledge of the customers needs and wants with regards to product features and functions. A function tree answers the questions of How and Why functions are required.	Good for analysing both new and existing products, the results of which being used in methodologies like QFD, VAVE, FMEA etc.
Function and feature analysis	Design Specification - Technical Screening Program Describes what the product Must achieve and sets the criteria by which the product is allowed to continue on its development or is killed off for not achieving the required functionality.	Product screening, Risk assessment.
FMEA	Failure Mode Effect Analysis - Highlights the problem areas (safety related) of a design - Severity and Probability analysis.	Screening for potential problems (safety or reliability related) with new products.
VAVE	Value Analysis Value Engineered - Primarily an engineering / manufacturing tool to optimise design features in the most cost effective way	Optimised cost effective design prior to manufacture.

Tools for - Effective Decision Making

Common Title	Description	Effective For
Paired Elimination Analysis (PEA)	Is a fast and simple method to find a single solution. Ideal when a single solution is needed fast - or when many new options are being presented on a continuous basis.	Quick and simple decision making
Risk Analysis Matrix	Analysis and prioritises any risks effecting implementation - Identifies and evaluates the risks in any solution and the circumstances that effects implementation of the solution. For each option a Success rating is given together with a Probability of success. The result or decision is provided in a numeric form.	Simple method that evaluates the For's and Against's or the Pro's and Con's of a range of options. Quick and simple decision making
Priorities Analysis Matrix	A method to contain and evaluate tasks and priorities - Often used in time management activities. Priority planning helps sort out the old problem of prioritising the Must do's from the can wait's.	Time Management, Priority setting
SWOT Analysis	Situation analysis in the form of:- Strengths, Weakness, Opportunities and Threats. When used as part of a decision making process each attribute (or observation) stated within the above categories are given a rating of importance. The sum of the Strengths and Opportunities represents favourable attributes whereas the sum of the Weaknesses and Threats represent a negative. The former must heavily out-weight the latter for the solution to have any chance of success.	Strategic decision making

Tools for - Problem Solving

Common Title	Description	Effective For
TRIZ - Inventive Problem Solving	The theory of inventive problem solving is based upon extensive research into real inventions. The research focused on the most significant of those inventions - where the solution to the problem was not entirely obvious and required no trade-offs. The results of which revealed that inventors worldwide sub-consciously applied a common technique - TRIZ brings together these techniques and combines them with very practical methods.	Scientific approach to new solutions to engineering problems.
Brainstorming (Osborne)	This is a classic tool recognised by many, but it is not that successful at generating new ideas. As a method it is not efficient at generating new ideas - Life is just too short! Limited to smaller groups - can create problems with group dynamics.	Generating new associations.
Fishbone	A technique to systematically identify a wide variety of potential causes of a problem and to show relationships among the causes. Used to: - list as many potential causes of the problem, show systematic relationships among the causes, create team understanding, help prioritise efforts	General problem solving
Force Field Analysis	A technique used to determine whether a particular solution or goal is practical or not. By analysing the Driving Forces (positive) against Restraining Forces (negative), and evaluating the relative ratio or intensity of the force field a decision can be made for or against. Can be used by individuals but works equally well in teams.	General problem solving - Visual and easy to understand.
Pareto Chart	A method of organising and analysing data by causes of variation. It is a series of bars where the height reflect the frequency or impact of causes of problems. Used to:- Organise and analyse data collected from problems area, depict the area of non conformance, direct a team to critical areas first.	General problem solving.
Problem Abstraction - Why? Why?....	Problem Abstraction or Semantic Processes (redefinition) attempts to reduce problems to their most basic level - problem goals and boundaries are then set. The procedure then follows a series of Why? questions followed by a subsequent Alternative? Good Team exercise.	Generating many varied and unusual problem statements.
Paradigms	Pattern or set of ideas that describe some aspect of the world.	General
Search and Re-Apply	A technique that asks the question - Have we had the same or similar problem? How did we solve it? Has anyone else had a similar problem? Use re-application techniques to search for ideas - Other Companies, Countries, People, Industry, History etc. - Technique works on the basis of ' If you have a problem that needs solving, somebody else has probably already solved it'.	General

Tools for - Strategic Management

Common Title	Description	Effective For
SWOT Analysis	Situation analysis in the form of:- Strengths, Weakness, Opportunities and Threats.	Strategic Risk analysis in general, Products and Services.
PEST Analysis	Political, Economic, Social and Technological features of the business environment which may influence or threaten the company. Hence the term PEST !. Despite the build up - the technique revolves around the four headings - using them to stimulate related thinking.	Fishing out aspects and issues that may have previously gone un-noticed.
Market Tracking Study	A continuous market research study which monitors changes in the customer perception of : The Company, its' Products and its' Brand Identity.	Market Research and Intelligence.
Technology Roadmaps	Technology Roadmaps is a process that maps the evolutionary path of a particular product technology. Roadmaps show the relationship between product evolution and technology over a given time period. Technology Roadmaps provide a clear strategy and direction route with respect to technology advancement. The related benefits comes from being in control and the ability to manage future technology with complete effectiveness.	Strategic Management, Innovation Management
Product Development Risk Analysis	A method of exploring different development options and evaluating against the companies development skills and historical track record. Conducted in two stages, first cost of failure is estimated in terms of its impact upon the companys' overall business. The more a product threatens the companys' business survival, the greater the product development capability needed to take the risk of embarking upon the development. Second is to assess the product development activity.	General and Strategic Management.
Knowledge Trees	Structured brainstorming and reference technique for generation of new products. Highly effective when used by cross functional teams. Can be applied to virtually all aspects in the product design phase. The method was developed by IPM and is used on a regular basis.	Generating specifications. Sharing product knowledge and general understanding.
Parametric Analysis	Parameter based analysis - Quantitative, Qualitative, Categorical. An existing (or competitor) product is used as a benchmark with particular attention being paid to specific parameters. It is then indicated how these parameters would have to be different to enhance satisfaction.	Developing an existing product or product portfolio.
Product Life Cycle Analysis	A classic marketing tool for mapping the projected life of a new product. Life cycle analysis maps the expected revenue (forecast) of each product within a portfolio and projects when sales are likely to decline. New products can then be planned to replace existing products. The main phases of a products life are Introduction, Growth, Maturity and Decline. The Product Viability Model is an excellent tool for product managers - Dynamic 'Life Cycle' management can be undertaken with ease. Several products can be consolidated to represent a product group.	Product Management, Strategic Management.
Visual Mapping	Series of matrices position product features and attributes in a visual way - Simple but powerful technique to share new product features with a multi disciplinary team.	Strategic direction. Innovation Management.
Problem Abstraction - Why?Why?....	Problem Abstraction or Semantic Processes (redefinition) attempts to reduce problems to their most basic level - problem goals and boundaries are then set. The procedure then follows a series of Why? questions followed by a subsequent Alternative? Good Team exercise.	Developing existing portfolio. Identifying market opportunities for new products.
Risk Analysis Matrix	Analysis and prioritises any risks effecting implementation - Identifies and evaluates the risks in any solution and the circumstances that effects implementation of the solution. For each option a Success rating is given together with a Probability of success. The result or decision is provided in a numeric form.	General and Strategic Management.

The Design of Business

Roger Martin, Dean at the Rotman School of management, clarified something very important. He discussed what the world of design is about and what the world of business is about and the intersection between the two, Reliability Vs. Validity.

Reliability =

• Production of consistent replicable outcomes
• Substantiation based on past data
• Use of limited number of objective variables
• Minimization of judgment
  
• Avoidance of the possibility of bias

Validity =

• Production of outcome that meets objective
• Substantiation based on future events
• Use of broad number of diverse variables
• Integration of judgment
• Acknowledgment of reality of bias

Designer should:

1. Take "Design-unfriendliness" as a Design Challenge
2. Empathize with the "Design-unfriendly elements"
3. Speak the language of reliability
4. Use analogies and Stories
5. Bite Off as Little a Piece as Possible to generate proof

Businesses should:

1. Take inattention to Reliability as a Management Challenge
2. Empathize with the "reliability-unfriendly Elements"
3. Speak the language of validity
4. Share Data and Reasoning, not conclusions
5. Bite off as Big a Piece as Possible to Give Innovation a Chance

(Source: Presentation- The Design of Business by Roger Martin, May 17, 2007 )

Value Proposition Life Cycle

Alex Osterwalder, the author of Business Model Design and Innovation Blog shares this amazing framework to communicate the various phases of the value proposition life cycle. Design has always been able to create values through intuition, based on the desire to improve the quality of things, that feel wrong or can be better. Now we need to clearly deliver the message that the possibilities we explore can make a tremendous difference in all of these areas. Then let's talk about strategy...


8 Phases of Value Proposition:

1. Evaluation Process: A company can create customer value by making the evaluation process as easy as possible. In the phase of the life cycle a customer will try to understand if a company's value proposition satisfies its needs.
   Example: Software companies often allow their customers to freely and easily test their products.
   Example: Ski gear companies organize special camps to allow their best customers to test all their newest material.
   
2. Value Co-Creation: Through various technological advances the integration and participation of the customer in the value creation process is increasingly possible.
   Read more: Frank Piller of TU Munich and MIT writes a lot of interesting material on mass-customization.
   Watch more: Eric Van Hippel of MIT outlines in a video how customers can be integrated to design new and innovative products that correspond to their needs. You can also download his book on democratizing innovation.
   
3. Purchase Process: Customers highly value an efficient, simple and convenient purchase process.
   Example: Amazon's "one click shopping" makes buying on its website a very quick and efficient process.
   
4. Set-up/Installation: In some cases set-up or installation is necessary. The simplification of this process is of enormous value to the customer.
   
5. Use & Operation: In many cases most of the value in a value proposition comes from the use or operation of an actual product or service. However, to differentiate themselves companies try to create value beyond a simple product or service.
   Example: For customers the main value from Salesforce.com's value proposition comes from the use of its hosted sales force solution. Yet, Salesforce is carefully creating additional value by offering continuous updating "behind the scences" and providing easy access to complementary products by third party vendors.
   
6. Complementary Products/Services: Value is also created if a value proposition boosts the value of complementary products and services or is itself a platform for valuable complementary products/services.
   
7. Maintenance & After-Sales: Value is often created during the maintenance and after-sales phase. This can be either by offering high quality service or by offering a value proposition that minimizes the need for maintenance & after-sales.
   Example: The attractiveness of Salesforce.com's value proposition essentially comes from the fact that the hosted software model (application service provider - ASP) minimizes the need of software maintenance by the customer.
   
8. Ending & Value Transfer: In many cases once a customer does not need a product or service anymore he has to terminate the service or dispose of the product.
   Example: ending the subscription of a magazine
   Example: disposing of batteries

Categories of value creation:

• Productivity & Returns: value is created by increasing a customer's productivity, his returns and his utility.
• Simplicity: value is created by making each phase of the value proposition life cycle as simple as possible to understand. For example, a software company can make the parametrization of its software as simple as possible.
  
• Convenience: value is created by making a customer's life as convenient as possible. For example, an online grocer creates value by delivering goods at the time the customer desires.
  
• Risk: value is created by minimizing a customer's various risks. For example, a customer risks choosing a product/service that does not satisfy his needs, or he may incur a physical risk by using the product (e.g. lawn mower) or he may risk choosing a product at the wrong moment (e.g. buying a plasma TV just before an important price decrease).
  
• Image: value is created by the image a product/service gives its purchaser (e.g. iPod)

Strategies for Discovering the Next Big Opportunity

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The Idea of Differentiation

Nintendo Wii has a fascinating story to tell. It's a story of doing it differently rather than better. "Re-thinking, re-minding, re-approaching and re-discovering" what gaming is about. I can picture the excitement of those who envisioned it, pitched it, and worked on it. But I question what they had to go through to make it happen. The end result, a modest video quality and picture definition gaming opposite of what gamers seek. But it didn't matter. We were given the opportunity to discover something else. A different twist in gaming experience with motion sensing technology. People bought into it. So how do you create something that would put a company in such a trouble (a good trouble) of being short satisfying demand? My life's journey is to explore, learn, enable and practice the art of disruptive innovation. I'll continue posting topics related to this.

What I see Wii differentiated:

1. Brand: Very friendly, playful, short, quick, easy to say (for everyone) and remember. It also sounds like "we" as all of us, it's inclusive and brings people together. The promise and value proposition speaks for itself.
2. Audience: It's for everyone, not just for traditional gamers (kids and enthusiast adults)
3. Affordable: Wii $250 (well..$549 because of shortage), Xbox 360 $349+, Playstation 3 $399+ (Amazon.com)
4. Ease of play: Simple and easy to play, easy to learn and get into the game within seconds. Make mistakes in the beginning but quickly becomes a -aha! moment when you learn.
5. Interactive: You need to get up and move your entire body, not just fingers.
6. Changing Behavior: Every game is different, you need to move differently to control. It's contextual and sensitivity changes based on situation.
7. Expandable: You can plug in the controller into a steering wheel and drive, plug it into a gold club and swing, plug it into a tennis racket and hit the ball, a guitar, a shooting gun, lightsaber, you name it...
8. Personalization: Mii allows you to create personal avatars
9. Freshness: It's new, never experienced before, eye opening, mind blowing, stimulates your senses, body and mind, create laughter, it's wow.

A Periodic Table of Visualization Methods

I think this is a really good place to start thinking about how you plan to visualize your communication and when anyone sees the information, make them say Ah! I get it.

Visual Literacy.org has provided this beautiful tool to help you choose the right method to make you an effective communicator.