Design-Integration: Boulder UI/UX Meetup

Design-Integration
The Operational Horizon for Human-Centered Design
a Boulder UI/UX presentation by Jon Fukuda | @jkooda

JAKE
CHRIS
Thank you!
SD/XD
BOULDER
UI/UX

© 2020 Limina Application Oﬃce
● 1973 born in into a biracial family
● Raised in Tokyo, as an American expat
● 1992 - 96 Studied Sculpture at RISD
● Joined the ﬁeld of UX in 1998
Things to know about me:

● Raised in Tokyo, speaking english, and attending the ASIJ.
● 1992 - 96 studied sculpture at RISD
CONTEXT
Liminal
Spaces
Lim·i·nal /ˈlimənl/
adjective
1. relating to a transitional or initial stage of a process.
2. occupying a position at, or on both sides of, a boundary or threshold.

● Raised in Tokyo, speaking english, and attending the ASIJ.
● 1992 moved to the US
● Graduated 1996 with a BFA in sculpture from the RISD
● 2003 Co-Founded Limina (a UX/tech design consultancy)
● 16+ years developing processes, artifacts, and systems to sell,
understand, plan, design, implement and test UX projects
● 2019 - 2020 Conducted the Design-Integration Study
What do I do?

© 2020 Limina Application Oﬃce7
1. Design-Integration Key Findings
2. Barriers / Best Practices
3. Tactical Next Steps
4. Q&A

Why study design and its
place in the business?

Job Title
WHO & HOW?
Company Revenue
40% of companies have more than $1 billion in revenue
9
Industry Segments
44% Computer Software
29% Information Technology
15% Various Industries
12% FS & Fintech
Companies Interviewed

Key Findings
10
deﬁne Design-
Integrated
Businesses
15%
of companies are
taking strong action to
move in this direction
14%
of ﬁrms studied are
Design-Integrated
Firms
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
design

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
11
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

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.
Human-centered design
prioritizes the needs and goals
of people when designing the
user experience of software
and technical systems.
Baseline: Human-Centered Design
12
69%of companies agree that
employees understand
what human-centered
design is

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?
Key Study Questions
13

New Digital Technologies
Rising Customer
Expectations
Unexpected Competition
Leaders and Impacting Market Forces

What Design-Integrated Companies know that others don’t...
15
BUSINESS
IT/TECHDESIGN/UX
E = EFFICIENCY
Q = QUALITY
E & Q
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.
E & Q
E & Q

What traits deﬁne a
“Design-Integrated”
Business?

● 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
17
Culture Operations Metrics+ =

C-Level Directive is vital to Design Integration
18
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.”

Common State: Weak Alignment of Business & Design
19
BUSINESS
IT/TECH
DESIGN/UX
E = EFFICIENCY
Q = QUALITY
E & Q
E & Q
E & Q ?

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?
20
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%

So what’s the
problem?

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
Maintaining Artifacts
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

Best Practices for
Design-Integrated Business

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

Embed human-centered design culture throughout the
organization, starting with the C-Suite
6 Best Practices for Creating a Design-Integrated Business
25
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

Embed a Human-Centered Design Culture - Starting at the Top
26
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.
of the Sr. UX or Design leaders
report to a C-level executive
- 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

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
How Can Firms Build a Human-Centered Design Culture?
best practice #1
1
2
3
4

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.
28
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

● 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
● Running a mini marketing campaign 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
29
How Can Firms Communicate for the Common Good?
Develop common language to build a culture
of design
Promote design to educate the organization
best practice #2

Product management 25%
Marketing 2%
Engineering 7%
Design 21%
UX 19%
IT 18%
Other/Unsure 7%
Integrate Design Resources Across Business Functions
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?
30
Organizations have a difﬁcult time ﬁnding the optimal place for design to reside
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%

© 2020 Limina Application Office
Design-Integrated
Build unified standards of practice, and
organization-wide operational
excellence
Design-Distributed
Optimize and specializes design
services and delivery throughout the
organization
Design-Centralized
Build standards of practice, and
discipline-based operational excellence
31
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

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
32
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 all 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

● 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?

Q20. Which of the following best describes your company’s approach to design standards?
Create and Reuse Artifacts and Repeatable Processes
34
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%

1
2
3
Identify processes, artifacts needed, and their touchpoints (roles on the team who need
them). Capture why, how, and when they use them in contextually meaningful language.
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
Map Reusable Artifacts to Repeatable Processes

● 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
36
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.

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
37
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

Where do we go
from here?

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

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 stagnate.
past future
NOW

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

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
42
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)

Q & A
What’s on your mind?

Design-Integration: Boulder UI/UX Meetup

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