 I am a UX enthusiast, and I come from CA Technologies. I work as a senior UX designer over there. To begin with, I would like to introduce Mr. Jay Peters. Jay is the managing director of PARC USA, a world leading design and innovation management consulting firm, and the managing director to grow USA, a leading professional education provider in design management and design leadership. Now collectively, PARC and GROW have got a common mission, which is to empower design leaders. Jay specializes in design management, leadership, design-driven innovation, brand management, business design, design thinking, marketing, social media, and new business development. So Jay is going to talk to us about the topic managing and leading design impact. Over to you, Jay. First of all, thank you for joining me here this morning. I'm quite excited for my first visit to India. So thank you for being here. And thank you to Ranjit and Bapu and the UX staff for inviting me to this wonderful conference. I'm going to spend the next 30 minutes or so speaking to you about this, leading and managing design impact. And for me, impact is a few things. One is definitely here, the business impact. So what impact does design have on the business? I think for us, what's also quite important is impact across the triple bottom line. Is anybody familiar with the term triple bottom line? Anybody? Triple bottom line. I've got one. I've got one. Wow, OK. So we've got a few. So if you don't know it, I think you should get to know it because it's becoming quite prevalent in business in general today. And I will, throughout the talk, come back and reference a little bit about the triple bottom line. So I'm going to quickly introduce who we are, who I am. What is our experience? What is our positioning on UX and design? Why is that important? And what does that look like in practice with some leading organizations that we work with? OK. So just quickly about us, I know there's a small introduction. I like to kid around that we're the most famous agency no one's ever heard of. We're actually not an agency at all. We're a management consultancy. And our mission is to empower design leaders. That's our mission. And that's our passion. And we help to empower design leaders through three services. One is our consultancy. That is PARC, where we consult clients in this area. The other is GROW, where we help educate working professionals. And we have a little event ourselves called Raymond, where we bring together design leaders from different industries to discuss different surprisingly similar challenges. We are a small firm. I use the word boutique. Boutique means specialized, but it also means very small. So just a team of about 15. It's a European company, about 20 years in Europe. It's been the last six years there working across Europe and just recently brought our services to the US. I say this not to impress you guys, but to impress upon you the fact that we are living and breathing every day design, design management, design leadership, UX, all the conversations you're having today, tomorrow we're having with our clients as well. And it helps us keep a really broad view of the industry and really understand what are some pressing topics, challenges, or what we like to call opportunities in the industry. So user experience. It is definitely a very prevalent and popular term right now. And where did it come from? So for us, we kind of see the evolution evolving from product design, which about 10, 15 years ago, it was all about the product. Everything was about the product, and then it shifted to the brand. Then the brand was all the focus. Everything was around the brand, how to live the brand promise. And now it is about the user. So having the user as a score focus. But of course, the brand is all around the user, all the touch points that are expressed through the brand. So user experience, as I see in this room and we know, is very, very popular. We actually have clients that are hiring like mad for user experience, but they're not exactly sure what they're doing or why. And I think that is just the reality of things in design. Design is moving fast. It's moving so fast that we're already looking of course what's next. And we see that there's a shift, general shift in business about every decade and in design it's going quicker and quicker. I won't get into what's next, but I will say if you've read the book, The Experience Economy by Pina Gilmore, it has some indications of what we think is going next. Again, referencing back to the triple bottle line that it's no longer just about experience. So invited to UX conference, we have a discussion all the time, what is UX? So I thought I'd refresh myself a little bit, so of course I go to Google and look what is UX and get some results, quite a few results. And then okay, is it UX or is it user experience? And then I get more results. So start to dig deeper and look at some images, some models, I don't know if anyone's familiar with this model, personally no offense to the author, but I would say this is what UX is not, this is not UX. This is one interpretation, there's many interpretations, but this is very much digital focused and for me it's a little bit misleading what UX is all about. So looking at some other models, I come across this one, which I happen to like, I think it's in the right direction. It looks at a couple of different elements of business and it's very quite familiar to design thinking, the design thinking lens. Is everyone familiar with design thinking, the term? I would hope so, if not make that your next conference or your next workshop you attend. Design thinking like UX is discussed every day in all kinds of environments, design environments, business environments. I think this is a pretty good indication and we're big advocates of thinking as everybody is in the industry and not to too digress too much, but for us, this is referencing design thinking which is desirable, viable, and feasible. Desirable is for the consumer or the user, viable is for the business, will it make money and feasible is technology, can it be done? For us, what's missing on this lens is a fourth lens that we call responsible. Whether that's a fourth lens or sometimes it's an overall encompassing lens and this goes back to the triple bottom line where most people can make a good design product or experience, but it's about being responsible, responsible to the environment, responsible to society. So not to digress too much on design thinking, that's a whole nother discussion, but this is a good indication of where UX might fall into and then I come across this one which I happen to like as well which we referenced the other model about putting the user in the middle. But again, this has a very much digital connotation. If you look at all the touch points around it, it's referencing design, sorry, digital elements of design. So is it the user in the middle? What happens if it's not the user that's experiencing this? What if it's the customer or the shopper? So that brings up a whole nother discussion and this is a little bit our discussion or let's say our debate that we have with our clients all the time is, is it the user? Is it the customer? Is it the shopper? Who is actually the focus of design? And then we start to see this, where is UX in the overall scheme of things? So we play a little game that we like to call find the X in design because experience is everywhere. Yes, user experience, but again, looking back before it was about brand experience. You have experience design with its own discipline. Lots and lots of types of experiences. So is it user experience? Is it customer experience? What's the bigger picture? This is the conversations we're having. Just not too long ago, we were having the conversations about design. Is it big D or little D? Not sure if you're familiar with that. Small D is just design doing as a discipline. Big D was the big discussion in the boardroom about design and strategy. Fortunately, we're not having that discussion anymore because design is all about strategy and helping the business, but it is about the experience. Where is design in the experience? So there's a couple of leading definitions out there. One that I think most of us can or should agree to is from the gentleman on the left, Don Norman, who's probably arguably, let's say, the grandfather of user experience design. He actually had a recent YouTube video that came out which he kind of put to debate the rest. And he said that, put things to rest by saying the user's experiences, the interactions with the company's services and its products. He never intended it for it to be just digital. It was for all the different experiences across the journey from a customer or user standpoint. Don Norman is arguably the godfather, the grandfather of user experience. And it's still a discussion today. I mean, he made this definition quite some time ago at his days at Apple and it's still coming back to him saying, what is user experience? So we will have this discussion likely for the next three days and to Bob, who's point, it will probably still continue and after three days you might actually say, what is user experience? Hopefully that's not the case, but that's the reality of what's going on. For us, user experience is part of something bigger called customer experience. And this is a definition that I just pulled off of Wikipedia, which I love Wikipedia because that's changing all the time. It's crowdsourced, it's co-creation about what is today's definition. And basically customer service is a little bit bigger than user experience. It's all the interactions, all the experience that a user or customer will have with an organization. And this goes from logistics to sales to HR to customer service much more beyond the product or the service that they're experiencing. Regardless of whatever we want to say about this experience, I think we can hopefully agree to this, that you cannot not have an experience. Whether that's a good experience, a bad experience, a planned experience, a well-designed experience, you're going to have an experience. You're going to have an experience today over the next three days and hopefully that is a good experience. I was at a conference about two years ago now, I think, when I was trying to learn more about user experience. Went to a conference in San Francisco and it was a managing experience and it was mostly digital companies there. It was the Facebooks, the Apple, the Googles. But there was a presentation by the head of design at Airbnb which I thought was quite interesting which kind of resonated with me back to the overall customer experience and she basically said this, that 90% of the experiences for their users happen off of their website which is quite interesting and quite compelling if you think about it. Airbnb is known for this disruptive technology and this great, wonderful user experience with the interface, with the website and the app and it is quite a nice experience. That's subjective of course but I think we can all agree it's not a bad experience but what happens when you then go to your real experience and you're waiting to get to the keys for this apartment and the person's late or you show up in this place and it looks nothing like the photo. So how can they actually really start to influence and affect the overall experience of their service? And this is a little image that I just pulled as well that's just basically the future scenario of how a customer journey can experience the different touch points of Airbnb. So beyond just the digital interface beyond just the digital application, the app, the website, there's lots and lots of areas to focus on to create a better user or customer experience. This is our simple take on it about user experience. Again, it's about having that end user in the middle and all the different touch points around them of how they will interact with this product or service. Most of our clients come from manufacturing consumer goods. So typically it's the product is the main focus. So how that product is going to work for them, the packaging around it, the device delivery, et cetera. And then you have all the other touch points and we have this discussion all the time. A client like Unilever, we talk about user experience and for them the user experience is the way that somebody's holding the ice cream or the way that the ice cream crumbles or the way that the shampoo lathers or the way that the shampoo comes out of the bottle. So what is the user experience in that regard? Yes, there are some digital interfaces. There is a website, there is an app and they're doing more and more but this goes back to the discussion. Is it the user experience? Is it the customer experience? Is it the shopper experience? Who is actually the focus? Because as much as they want to have a great user experience, if they don't focus on the customer being Walmart, they probably won't get that product in the retail shelf. If they don't focus on the mom, the shopper who's maybe buying that for their son or daughter, that person might not even experience. So it sounds kind of simple and we try and take a simple approach but it actually gets very, very interesting, these discussions that we have and trying to just simplify this of how we actually look at this term and how we actually design for it. So then we talk about customer experience and it becomes much more complicated. So there's many, many touch points that a customer will have with the company of brand or service and there's a lot of brand indication and now there's a lot of data coming in. I'm sure everyone's familiar with the term Big Data. So there's a lot of data that companies are able to be informed of but what did they do with that? So there's a term Big Data, small insights. So the data's coming so fast and we have it but so what? You just need some small insights, some small nuggets that's going to help improve that experience across the touch points. Lots of touch points. We always say focus on the weakest link in the chain which are the ouch points. So where is somebody not having a good experience and where can you help create a better experience? Now as designers we only have so much control of what we can design. Again, every experience is designed but are we leading that design? Are we delivering that design? Are we just influencing it? And for example, I can tell you in a lot of organizations design is still, let's say, little peons in the corner. If you look at companies like again Unilever marketing is still king, marketing and advertising. They have the big budgets. They have hundreds of millions and design is fighting for a few millions for their budget. So design is, I'm sorry, marketing and advertising of course is part of that experience of how somebody's going to see and perceive a brand and how they're becoming aware of it but how can design influence that? So very tough discussion as well. This is a model that we try to help to simplify those discussions. Where design is going to lead? Where design is going to support? Where design might actually just influence? Just another model for you. This is coming from Forest Research who's done a lot around the topic of UX design. I think they're a good thought leader in this industry as well. And they basically say that there's a pyramid kind of referring back to the mazel hierarchy of needs. First you just have to meet needs. You have to get it right, the basics right and satisfy your customers or your users. Once you can meet those basic needs then you need to make it easy to simplify that. And then once you can make it simple you want to make it enjoyable where people actually really enjoy your product or service. So it's about just satisfying them and then giving them a little bit more to make it easy. Giving them some personalization and then finally creating some type of advocacy or some champions of your brand and that can be measured in net promoter scores. So this is something that marketing does all the time to justify the return on investment or the impact of efforts for design. So a simple model but it's not so easy to get it right. So a lot of people want to jump into the top tiers and just make something that's really amazing and enjoyable but they sometimes don't get the basic needs right. So it is a pyramid where you have to get those basic needs right before you can move on. And this is something that also needs to be managed well to make sure that the teams are delivering to certain expectations. Forrester's done a lot of research. We've done some research as well. We've come up with a little checklist that we call a checklist in consumer experience of different areas that design can either lead or support to help deliver a good customer experience. So there's lots and lots of things that design can do to deliver value. It has to be intentional choice to something that's led and managed to deliver on that. So talking about the experiences, the different levels, how they are actually received by the customer, the consumer, the user. But regardless, every experience has to be designed, whether that's something that the design community is doing, advertising is doing, sometimes the engineering, R&D is actually designing some type of experience. So with design having so much attention these days and thanks to the Apples, the Dyson's, the Googles, the Facebook, more and more companies are looking at design and seeing design as a key driver for business. There's lots of studies out there. These aren't actually recent studies. They've been updated, but a couple of leading ones are Interbrand. So Interbrand does a global ranking for the world's most recognizable brands. They just came out, I think, two weeks ago with the 2016 Top 100 and the top few are the ones that you might imagine, Coca-Cola, Apples, Google, et cetera. And there's lots of things done in Europe as well. UK, the design council, they're doing a lot of great things to start to quantify design value and how companies can average the potential value from them. So companies see design as adding value to their competition that a lot of people are making great design outputs. So the obvious reaction for a lot of business that's maybe laggards in the industry is to invest more in that. So what they do is they increase budgets. They increase the design budget or the R&D budget, but there is proof out there that it's not the size of the budget that really matters. So we see in our companies that we work with that there is no lack of ideas. In fact, that is part of the challenge. There's too many good ideas. So which ideas do you pick to bring to market successfully and be able to commercialize? So a rather recent study from Booz & Company now strategy and that says only 25% of companies are able to actually pick the right ideas and effectively commercialize them to bring on the market. 25%. So that means 75% room for improvement. In big companies, 1% can make all the difference. I can tell you for a company like Nestle who had a problem that they had over 80% failure rates in their concept development phase where they were taking ideas and developing them to go to market, 80% of those ideas that were started were not going to marketplace. 80%. So 1% improvement at a company like Nestle is billions of dollars in savings and in turn revenue on the marketplace. So a lot of companies are spending more and more on design or investing in R&D and I should say that it's not companies as well. It's actually countries. I think quite fitting here being in India, we still talk about the BRIC countries but a country like China is doubling their R&D every two years. So they want to become a global player, of course. They don't want to be the copycats of the world. They want to start producing their own innovation so they start to increase those budgets thinking that must be the right thing. More money, more manpower, must be better results. But that's not the case. Research also shows that it's not the size of the budget. It's about how things are led and managed. Very simple. Leadership and management. So for us, that's what we do. That's been our focus for 20 years at what we will continue to do is focus on the leadership and management of design and design being the big ecosystem of design, user experience, product, services, graphics, et cetera. Everything needs to be designed. Everything needs leadership which is about knowing what you want to do and management is about knowing how to get there. So for us, management and leadership, most of all the projects we do will fall into one of four buckets. Either strategy, going in the right direction, resources, the people, the structure, the staffing behind it, the management behind it, how it's actually executed or a support system, process and tools, et cetera. I always kind of kid around to our clients that we do the non-sexy side of design so designers can make sexy things. Nobody likes the design processes in tools and templates. We do and then designers are actually empowered to make great sexy things, whatever that industry is. Tennis shoes, toys, technologies, you name it, they're designing it. So we are helping them manage and lead and we're also helping not to educate working professionals in the same regards, management and leadership. We actually hear a lot from our clients, unfortunately I know there's some discussions here about education and industry education, but unfortunately most of us that have some years on us went to design school, we're not taught to be managers or leaders, we are taught to be designers as we should be. But what happens in industry, and we hear this from our clients, is a lot of times they lose a good designer and they get a shitty manager in place because they were never taught management skills, they were never taught how to be leaders. And it's either learning by doing which hopefully they learn the right way, or it's about getting some type of formal training. So we also come in and we help develop leaders and managers and there's a little framework on top which we say are the basics or the fundamentals of managing and leading design in an organization. Fortunately today there are a lot of design schools that are starting to teach these things in academia so in the marketplace they're a lot more aware of what they need to do to perform as good managers or leaders. As you can see in our model that's quite some years ago, it was about design results or you could say impact. So having impact, positive impact which creates a value. And again value for us is the triple bottom line, it's not just money, yes you need to have profit for the company but you also need to create other value for society, for the people and for the environment. So some years ago we crafted up a little framework for some of our friends at DMI which is a leading organization in the US, Design Management Institute who coincidentally defines design management as the business of design. So very simple for them, it is about the business of design so some years ago and even now people talk about how does design add value or you could say impact to the business and this is a little framework of where design can add some value. Of course it's about profit, design can help sell more things, sell the same thing but more of them. You can sell the same thing but for more money but you can also help lower cost by designing for production or use of materials or life cycles. Design can also help for brand and creating brand equity, creating brand awareness, creating brand loyalty but I can tell you as soon as design starts talking brand to many organizations there's a little bit of tension in the room because brand is typically owned by marketeers and that's their territory so why is design talking brand because they should be designing pretty things. Design can also do things for innovation so having the right things come through the innovation pipeline, getting to market faster, creating IP power but when you talk innovation you're usually talking to R&D who owns the innovation which is usually an inside out approach not an outside in approach and then design can do things for you could say culture or society, some of the things that were termed wicked problems so traffic, pollution, homelessness so what can design do on the bigger things and interestingly enough IDEO who was basically the pioneers of design thinking now have kind of abandoned the post of design thinking saying it's out there, everyone can do it and for them they're looking at more of the wicked problems for design thinking of how they're gonna help basically solve the world problems so it's about value and most people think of value as monetary value as they should unless you're in a subsidized nonprofit or in business we have to make money to stay in business. Design value is usually about profit this is the bottom line so in business the bottom line you're either in the red or you're in the black, you're positive or you're not so there's a little model here that DMI has come out with again the Design Management Institute okay so if it's about creating value for the business it's about having all the different touch points for the experience, the user experience so unfortunately when I come into companies and we talk about good design they still reference Apple which they should but Apple is about all the different touch points and how the user experiences that brand but it's not about just being a design leader in the industry it's about being design leaders so they have great design leaders and great design managers in that organization and another company I think that you should keep an eye out for is Pepsi I think this is maybe hopefully a little bit close to home for you guys this is an Indian born native who is now running the second largest food company in the world and they are investing heavily in design so she has brought in a design leader who has empowered him to do some great things and they are scaling up they have gone from just a few designers to a few hundred designers last time I checked they had over 50 openings for designers across the world and they're trying to create more design experiences to create more equity for the company but not just for the equity of the business but also again triple bottom line I was eating breakfast the other day and I saw an article from the president of Pepsi at India and said for the next 10 years they're going to focus on the product the people and the planet so I think keep an eye for some design leaders and again triple bottom line is gonna be quite prevalent for the design community I apologize guys I didn't realize that I'm just running low on time I wanted to show you some examples around some other clients can do that over the next few days if you want to speak with me maybe just spend the last minute or two to answer any questions that you might have any questions from the group? One in the back, one in the front front one's probably a lot easier Goal, a challenge that a client will come to you with what's the sort of most common challenge that organizations have? The question was what is the typical challenge that most organizations have when they approach us and the answer is typically about very simply speaking it's about understanding and awareness of design so how we can help them to leverage designs capabilities in their organizations to create more value whether that's just business value or cross triple bottom line and as I showed in that slide about leadership it's about having strategy, the right strategy having the right culture, the right teams the right process, the right tools to deliver great design results Any example of service design that you can give? Service design, to be honest we're not so much involved in service design a lot of our companies are traditional manufacturing or consumer companies but I can tell you that they are all looking into service design and we're helping to facilitate that so if you're perhaps familiar with the business model Canvas which is a great tool to help design, deliver business they're all looking at typical services so even traditional companies that produce goods are looking at now how they can actually capture more revenues through different channels Hi, I don't have a question here like this design UX is like between like user designers and user experience guys like what basically the qualification or what criteria should user experience guys should have in terms of education and in terms of thought process Okay, I think the experience they should have well design now is becoming very focused and very disciplined specific so now you can actually go in depth and have a UX background I think that even though you might want to focus on UX my recommendation is to still have a wider perspective so not to reference too many models and metaphors but if you're familiar with something called the T shaped person this is popularized McKenzie so you want to have a deep knowledge in something so UX let's say the digital design but I would say it's very important to also have a broad understandings across the different elements of business again as you go up to leadership and management you're going to have different discussions beyond design so I think it's important that you know a little bit about marketing and ROI and logistics and HR to be able to have those discussions with your stakeholders to let's say fight for design Hi, you've spoken about design in a conservative businesses like manufacturing businesses how do you think is the best way for a conservative business to accept that they need design how do you think we should go about convincing them? That's not so easy so we have two types of clients clients that come to us because they need us which there's a burning platform and something's going wrong and that's very easy they know they need to fix something but also there's clients that want us they want to change but there's no real need to change so if there's something internally it's a lot easier to of course position design to do something and show some examples of how it helps other industries but my advice is always to start small so we say pick your battles wisely and find some quick wins so show how design can add value to the company show how design might be able to solve some problems for some experiences that users or customers are having with the brands or services Coming back to your previous answer would you say that design is more horizontal than vertical? Sorry? Would you say that design is more horizontal than vertical? I would say today yes there still is a vertical discipline which is a deep understanding but design fortunately is having a seat at the table and having these discussions with many, many different stakeholders so design is becoming more encompassed more responsible to influence and impact the organization Thank you so much probably if you have more questions we'll take it offline so probably we'll just move on to the next session All right thank you very much for your time I appreciate it