2020 Design-Integration Report - briefing presentation

1. Why and How Design-Integrated Businesses Win

3. © 2020 Limina Application Office, LLC3 Key Findings 7core traits Strong and equal alignment of business, design and technology functions leads to a repeatable, standardized and sustainable design process Design-Integrated Businesses place an increasing amount of investment priority on systems designdefine Design- Integrated Businesses of companies are taking strong action to move in this direction of firms studied are Design-Integrated Firms 15% 14%

5. © 2020 Limina Application Office, LLC Design-Integrated Businesses Outperform industry-benchmark growth by a margin of 2:1 - McKinsey 2018 “Business Value of Design” Outperform the Standard & Poor’s 500 by 228% - Design Management Institute 2016 Increased their financial performance by 20% compared to businesses where design integration remained static or declined. - Danish Design Center 2001 The Case for Aligning Design and Business Goals 5 Q16. Which of the following best describes how UX and user-centric design is organized in your company? Q34. What do common KPI's yield in terms of benefits to the design team? 74% of companies that integrate design across functions see strong alignment between business and design goals

6. © 2020 Limina Application Office, LLC How does human-centered design create the need for a Design-Integrated Business? What design and UX investments are companies making? Are metrics used to demonstrate the business value of design? If yes, which ones? How are companies creating reusable assets and repeatable processes? What are the characteristics of Design-Integrated Businesses? 6 Key Study Questions

7. © 2020 Limina Application Office, LLC Job Title Demographics Company Revenue 40% of companies have more than $1 billion in revenue 7 Industry Segments 44% Computer Software 29% Information Technology 15% Various Industries 12% FS & Fintech Companies Interviewed

8. © 2020 Limina Application Office, LLC Q66. Please rate your level of agreement with the following statements about the extent to which there is an embedded culture of human-centered design across the organization. 8 What is Human-Centered Design? Why it Matters. Human-centered design prioritizes the needs and goals of people when designing the user experience of software and technical systems. of companies agree that employees understand what human-centered design is 69%

10. © 2020 Limina Application Office, LLC10 What Design-Integrated Companies Know (That Others Don’t) Strong and equal alignment of business, technology and design functions leads to a repeatable, standardized and sustainable way for all employees to work together to build products that are simple and intuitive to use. BUSINESS IT/TECHDESIGN/UX E = EFFICIENCY Q = QUALITY E & QE & Q E & Q

12. © 2020 Limina Application Office, LLC ● Vision ● Values ● Goals ● Purpose ● Language ● Cross-functional teams ● Methods ● Systems ● Budget ● Business metrics ● KPIs ● ROI ● Destiny Design-Integrated Business - Defined Integration across the organization Alignment of operations and metrics 12 Culture Operations Metrics + =

13. © 2020 Limina Application Office, LLC13 7 Traits of Design-Integrated Businesses Human-centered design culture is part of the company’s DNA C-level executives embrace the design culture and propagate it throughout the organization Design is accepted as a shared process, and not a siloed function Shared language, through common terminology and taxonomy, builds shared understanding Business metrics are shared and tracked to demonstrate the business value of design Artifacts and processes are created focusing on reuse and waste reduction Investments are made in artifacts, processes and systems

14. © 2020 Limina Application Office, LLC C-Level Directive is vital to Design Integration 14 Google’s CEO called for the company to fully embrace human-centered design Shared philosophy – “Focus on the user – not trying to call attention to a product.” Systematic way for all product groups to work and think through the core tenets of design. Metrics are used to assess management, teams, and product performance with customers. Shared vision – “the notion of doing something simple for users that’s accessible to everyone.”

16. © 2020 Limina Application Office, LLC Q3: What is the total revenue for your company? Q56: What percentage of the UX design budget is spent on initiatives to improve the quality and efficiency of UX design? Q17: What departments do resources for UX and user-centric design reside in? Q15: What level of management does your most senior UX or design leader report into at your company? 16 Companies Are Moving to Become Design-Integrated Businesses Design-Conscious Design-Integrated % of Survey respondents 15% 14% Size (Revenue) <$1 Billion <$100 Million >15% of budget invested on improvements 24% 44% UX resources reside in design 47% 81% Report to C-level executives 12% 75%

18. © 2020 Limina Application Office, LLC Embed a human-centered design culture in every corner of the company, starting with the C-Suite 6 Best Practices for Creating a Design-Integrated Business 18 Integrate design resources into relevant business functions Communicate for the common good of the business Capture specific metrics and manage to them Create reusable artifacts and repeatable processes Invest in artifacts, then processes, then systems

19. © 2020 Limina Application Office, LLC Embed a Human-Centered Design Culture - Starting at the Top 19 of the Sr. UX or Design leaders report to a C-level executive More mature design organizations are fully funded, have executive sponsorship, and authority. 49% Our CXO has a really good working relationship with our CEO. It’s made an enormous difference in our ability to be effective. - Leisa Reichelt, Atlassian - Ronnie Battista, Slalom Consulting Q15: What level of management does your most senior UX or design leader report into at your company? best practice #1

20. © 2020 Limina Application Office, LLC20 How Can Firms Build a Human-Centered Design Culture? Start by defining your organization’s shared vision, values and purpose Develop a change management program shifting the concept of design as a process, rather than a siloed function Bring together and foster collaboration among diverse disciplines to create new products or adapt existing ones to fit the needs of your users Operate with design, business and technology playing equal and integral roles from the inception of crafting strategies for new products or enhancing existing products “It’s about building relationships and allowing product management and design to understand the workstreams and inputs for all the team members. These are the types of simple things that need to happen in order for collaboration to work. It takes a lot of education. Once we started taking that mindset, we saw dramatic improvement. ” - Aaron Irizarry, Capital One best practice #1 1 2 3 4

21. © 2020 Limina Application Office, LLC Communicate for the Common Good of the Business Communication is often an area that is not addressed. Building a human-centered design culture is not easy, but when you get it right it can dramatically accelerate organizational success. 21 It provides a common language, so everyone understands the meaning of the terminology being used It educates the organization about the role of design in building products that provide a superior user experience Communication is key when building a design culture, for two main reasons: - Susan Weinschenk, The Team W 1 2 best practice #2

22. © 2020 Limina Application Office, LLC ● Creating a common language removes barriers and breaks down silos ● Finding common ground in terms of the language used is essential to mitigate the risk of misunderstandings that can derail product development initiatives ● Having C-level executives and design leaders speak the same “design” language ensures that those around them will inevitably hear it, experience it, and start modelling it themselves ● Run a mini marketing campaigns within the company builds awareness and generates demand for design and UX ● Implementing a design communication plan teaches the company about: ○ The benefits of working with design and UX ○ Design’s role in building products with a superior user experience ○ How design can work collaboratively and in tandem with the business and technology 22 How Can Firms Communicate for the Common Good? Develop a common language to develop a design culture Promote design to educate the organization best practice #2

23. © 2020 Limina Application Office, LLC Product management 25% Marketing 2% Engineering 7% Design 21% UX 19% IT 18% Other/Unsure 7% Integrate Design Resources Across Business Functions 23 Organizations have a difficult time finding the optimal place for design to reside best practice #3 Q16. Which of the following best describes how UX and user-centric design is organized in your company? Q15A.What function is the most senior UX or design leader report into? Design resources reside in their own functional areas 29% Design resources exist primarily in their own functional area, but certain design resources reside in other areas 36% Resources are integrated into various functions across the organization 34% Other/Unsure 7%

24. © 2020 Limina Application Office, LLC Design-Integrated Builds unified standards of practice, and organization-wide operational excellence. Design-Distributed Optimizes and specializes design services and delivery throughout the organization Design-Centralized Builds standards of practice, and discipline-based operational excellence. 24 How Can Firms Integrate Design Resources into Business Functions? ““The CTO restructured the entire technology organization, formalizing a design and UX function within it led by a Chief Designer, Jeff Courcelle. Designers and UX professionals sit alongside product managers, product owners, and engineers to support the implementation of current product releases and to design future products.” - Tim Lang, CTO MicroStrategy 1 2 3 best practice #3

25. © 2020 Limina Application Office, LLC Q34: What do common KPI's yield in terms of benefits to the design team? Q29. Are metrics and business impact typically a part of initial design conversations at your company? best practice #4 25 Capture Specific Metrics and Manage to Them “There’s been a big push for us to align our work to business value. We're on track to have design be more consistent in capturing standard business metrics and to accurately articulate the impact of the design work.” - Aaron Irizarry, Capital One 87% of study participants say metrics and business impact are part of initial design conversations 81% of Design-Integrated Businesses see common KPIs yielding the benefits of business alignment

26. © 2020 Limina Application Office, LLC26 ● Determine the metrics that matter ● Determine what activities, touchpoints, and experiences influence those metrics ● Use design thinking to test models to improve them Define Metrics Agree on standards Manage to Metrics Focus on priorities ● Track the results: effort/expense, impact ● Quantify ROI through improvements: scalability, reusability, efficiency gain, cost benefit best practice #4 How Can Firms Capture and Manage to Metrics?

27. © 2020 Limina Application Office, LLC Q20. Which of the following best describes your company’s approach to design standards? Create and Reuse Artifacts and Repeatable Processes 27 Less than 1/3 of companies approach design standards with an active referenced management system best practice #5 Ad-hoc 9% Occasionally reference standards 12% Partially documented 17% Documented and stored 32% Actively referenced standards management system 29%

28. © 2020 Limina Application Office, LLC28 Map Reusable Artifacts to Repeatable Processes 1 2 3 Identify processes, artifacts needed, and their touchpoints (roles on the team who need them). Capture why, how, and when they use it in language that is meaningful to them. Create artifact libraries/repositories, reusable templates, and document best practices and standards Create living repositories connected to a centralized knowledge-base to store all the reusable artifacts and guidance (a design system) best practice #5

29. © 2020 Limina Application Office, LLC ● Quality is the top priority for investments ● Highest investments have been made in deployment and requirements analysis ● Investments in artifacts are more focused on quality improvement ● Investments in tools and systems have a stronger focus on efficiency improvement, particularly in systems design and maintenance Invest in Artifacts, Then Processes, Then Systems 29 best practice #6 Q57: From the methods and tools listed what are the top areas of investment to improve quality and efficiency? Q58: From the methods and tools listed, indicate whether each of the investments are quality initiatives, efficiency initiatives or both.

30. © 2020 Limina Application Office, LLC Q29: Are metrics and business impact typically a part of initial design conversations at your company? Q35: Do you have systems and processes to support the sustainability of user experience design? Q64: If you could budget and plan from scratch, what would be the top 5 areas of investment to improve UX design process quality and efficiencies? Rank Overall Design-Conscious Design-Integrated 1 Process/Activity: Requirements Artifacts/ Libraries: Design Tools/ Systems: Design 2 Artifacts/ Libraries: Design Tools/ Systems: Design Process/ Activity: Design 3 Process/ Activity: Design Tools/ Systems: Requirements Artifacts/ Libraries: Design 4 Tools/ Systems: Design Process/ Activity: Design Process/ Activity: Requirements 5 Artifacts/ Libraries: Requirements Process/ Activity: Requirements Tools/ Systems: Testing 30 Priorities for Investment Shift Towards System Design 93% Of companies with both systems and processes in place, Design-Integrated Businesses place an increasing investment priority on systems design Less mature organizations place more emphasis on requirements analysis are more likely to use metrics as part of initial design best practice #6

32. © 2020 Limina Application Office, LLC 52% of designers have a seat at the table, many struggle with their voice Barriers to Success Struggle with implementation Insufficient C-level support Confusion in centralized vs distributed design Lack of common language Disparate design technologies Artifact phase inertia Inability to measure KPIs ROI/business value proof Q34: What do common KPI's yield in terms of benefits to the design team? Response Option: A seat at the table for strategic decision making

33. © 2020 Limina Application Office, LLC33 Now is the time for transformation to become a Design-Integrated Business; there is a narrowing window of opportunity to gain this unfair advantage. past future NOW

34. © 2020 Limina Application Office, LLC34 Design-Integrated Companies are on the upswing with increased market performance. Companies comfortable with the status quo, where design and UX are leveraged reactively, will struggle to keep pace. past future NOW

35. © 2020 Limina Application Office, LLC35 Systematically integrating business, design, and technology operations will lead to a repeatable, standardized and sustainable way for all employees to work together - creating visionary user experiences. past future NOW

36. © 2020 Limina Application Office, LLC Identify common language, and promote a culture of human-centered design Identify a set of metrics cross-functional teams can manage and share Identify opportunities to establish reusable artifacts and repeatable processes in design operations Tactical Underpinning (now) 3 Steps to Get Started Today 36 Invest in artifacts, then processes, then tools Invest in embedding a human-centered design culture Integrate design resources into various functions of the business Strategic Transformation (long term)

2020 Design-Integration Report - briefing presentation

2020 Design-Integration Report - briefing presentation

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