What is organizational design in Business

web design company business model and A qualitative study of the modern design process what is organizational design in business
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Dr.OliviaSimpson,France,Researcher
Published Date:03-07-2017
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Eleven lessons: managing design in eleven global brands A study of the design process How do leading companies manage design in their businesses? Our in-depth study of the design processes used in eleven global brands gives real insights into the way design operates in these firms, and delivers usable lessons for all designers and managers. Delivering competitive advantage through design Design plays a fundamental role in the success of many of the world’s leading companies. But how do those firms ensure that they are getting the best return on their investment in design? To find out, we spent time with eleven of the world’s top design teams. A qualitative study of the modern design process For our most in-depth study ever, Design Council researchers visited the design departments of eleven companies, all world-leaders in their fields and all with a public commitment to the use of design to improve their brand strength and product and service offerings. The study looked at the way design is used in these firms, how designers work with staff from other disciplines and how the design process is managed to deliver consistently successful results. How is design managed across complex, global, product and brand portfolios, we wanted to know. So we asked leading design teams how they select and organise their designers, and when they bring designers into the product or service development process. We also wanted to find out what skills today’s designers need in order to succeed. From this in-depth examination we aimed to draw out some of the key features that define the state-of-the-art in modern design practice, as well as the unique approaches that set some firms apart. Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk The full study includes eleven case studies looking in detail at the processes used at each participating company. These can be accessed using the links below. Eleven world-leading companies Alessi, one of the world’s leading manufacturers of designer kitchen and tableware, puts design at the very heart of its business and has developed sophisticated processes for finding, commissioning and developing new designs from a worldwide network of talented designers and architects. A pioneer in the delivery of multi-channel television in the UK, BSkyB has recognised the potential to use design as a market differentiator. While continuing to evolve its product offering, it has focused on developing in-house design management capability while building a strong relationship with an external design consultancy for the execution of product designs. Communications service provider BT is one of the UK’s best known companies. A diverse and rapidly evolving organisation, it makes extensive use of design in many aspects of its business, closely integrating it with the BT brand. The company has developed tools and processes to manage an extensive roster of external design suppliers and help them communicate the brand. Danish company LEGO, the world’s sixth largest toy maker, has transformed the processes of its design function in recent years. These changes have streamlined product development and the processes developed by the in-house design function are now being used as a method to improve innovation across the entire business. Microsoft, the world’s leading supplier of operating system software, has completed a significant evolution in its attitudes to design. Having once been a technologically-driven organisation, Microsoft now uses design thinking to focus on developing products that answer users’ needs. With management support, this focus on user-experience is also influencing Microsoft’s organisational structure and culture. Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk Electronics, games and entertainment giant Sony has used design since the 1960s to differentiate its products and maximise the usefulness of its advanced technologies. Sony Design Group across the world employs around 250 designers and has developed a set of core design values against which the company judges the success of all its products. From its beginnings as a single coffee shop in Seattle 35 years ago, Starbucks is now a global brand which uses design to aid the delivery of a distinctive service experience to its customers. The Starbucks Global Creative team has developed a strategy that allows it to balance regularly changing design themes with a consistent set of brand values. Virgin Atlantic Airways, founded in 1984 by British entrepreneur Richard Branson, has innovation as a core brand value and uses design as a key competitive differentiator. The in-house design team manages many aspects of design for the airline, including service concepts as well as interiors, uniforms and airport lounge architecture, and works with a number of agencies worldwide. Whirlpool Corporation is a leading manufacturer of major home appliances. The Global Consumer Design unit at Whirlpool has a staff of over 150 people and has developed expertise and processes that help the company respond to the demand for increasingly sophisticated and complex appliances and develop individual products under different brand umbrellas worldwide. Xerox was founded in 1906 and has been developing pioneering office automation technologies since it introduced the first photocopier in1949. The design function at Xerox plays an increasingly important role in the organisation, and has recently been implementing a significant programme to broaden the breadth and scope of design input into new and existing product development. Founded in 1994, Yahoo has grown from a pioneering search engine to become one of the most popular portals on the Internet. An organisation that uses technology to focus on customer needs, Yahoo operates a highly customer-centric design process, with user research instrumental in the development of new products and the evolution of existing ones. Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk In more depth Find out more about the way design processes are defined and measured by downloading a PDF (464KB) version of our detailed Desk Research Report Background and methodology In 2007, the Design Council was asked to conduct a study of the design processes used in leading global companies. The remit of the study was to understand the design processes used by leading corporate users of design, what elements they involve, and how these processes take a product or service from an idea through to implementation and launch. The creative or design heads of eleven leading users of design took part in in-depth interviews. The key aim of this design process study was to seek the answers to five questions: — What is the design process used in leading corporate users of design? — How is the process managed? — What benefits does it bring? — What are the similarities and differences among these companies’ design processes? — Are there activities or methods among the design processes observed that could constitute best practice? A mix of companies with product and service-based offers was sought and agreed to take part. The criteria for the companies selected for the design process study was that they be leading corporate users of design with a reputation for successfully applying design to either their product or service, or both. Equally, the companies needed to represent a variety of sectors. A list of companies that fulfilled these requirements was compiled, and contact was established with eleven design heads willing to take part in the study. Clearly while these companies have their use of design in common, one key challenge in investigating the design process across several companies is taking into account how such a process will differ depending on the companies’ product or service offer, size, shape and location, legacy of design use, and its supply-chains and production systems. The participating companies originate mainly from Western Europe and the United States, and all are global in their operations. This does not, however, reflect a predominance of design process expertise in these regions. Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk Methodology The design process study was conducted using a qualitative research methodology, and drew heavily on the Design Council’s knowledge of and expertise in the theories and practices of design management and strategy. The stages of the study were as follows: — An initial desk research project summarised the evolution and development of design process methodologies from an academic perspective, and highlighted the leading insights on areas such as the benefits of design process and best practice models. This served to inform the overall study and to aid the discussions with the design teams that were interviewed. — Face to face interviews were conducted with the design or creative heads of eleven leading users of design. — Prior to each interview, basic corporate data and information was gathered for each participating company. This was used both as a background for the interview, and in the formulation of the summary report and the case studies. — The interviews were conducted by a design expert and a researcher. This, together with the discussion guide, provided both the deep understanding of design process and strategy and the robust research methodology needed to guide the collection and analysis of information from the interviews. With this background and methodology as its starting point, the interviews that formed the basis of the design process study were conducted between March and May 2007. In more depth Learn more about the way design processes are modelled and understood by downloading a PDF version (464KB) of the in-depth Desk Research Report. Eleven diverse companies, a single commitment to successful design The Design Council offers its thanks to the eleven companies who participated in this study, and to their designers and design managers who gave up their time to take part in the project. Other ways to view the content — See how design is used to meet different business challenges — Learn how companies who participated in the study manage their design function — Find out how to deliver great design with the help of these tools and techniques Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk Eleven lessons: managing design in eleven global brands The design process Different designers manage the process of design in different ways. But when we studied the design process in eleven leading companies, we found striking similarities and shared approaches among the designers we talked to. In this section we show one way of mapping the design process, and give more detail on the key activities in each of the process's four stages. The 'double diamond' design process model The double diamond diagram was developed through in-house research at the Design Council in 2005 as a simple graphical way of describing the design process. Divided into four distinct phases, Discover, Define, Develop and Deliver, it maps the divergent and convergent stages of the design process, showing the different modes of thinking that designers use. Discover The first quarter of the double diamond model marks the start of the project. This begins with an initial idea or inspiration, often sourced from a discovery phase in which user needs are identified. These include: — Market research — User research — Managing information — Design research groups. Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk Define The second quarter of the double diamond model represents the definition stage, in which interpretation and alignment of these needs to business objectives is achieved. Key activities during the Define stage are: — Project development — Project management — Project sign-off. Develop The third quarter marks a period of development where design-led solutions are developed, iterated and tested within the company. Key activities and objectives during the Develop stage are: — Multi-disciplinary working — Visual management — Development methods — Testing. Deliver The final quarter of the double diamond model represents the delivery stage, where the resulting product or service is finalised and launched in the relevant market. The key activities and objectives during this stage are: — Final testing, approval and launch — Targets, evaluation and feedback loops The design process in eleven global companies To find out about the design process in leading global companies the Design Council undertook its most in-depth study ever. Researchers visited the design departments of eleven companies all world-leaders in their fields and all with a public commitment to the use of design to improve their brand strength and product and service offerings. You can use the links below to navigate the individual case studies: — Alessi — BSkyB — BT — LEGO — Microsoft — Sony — Starbucks — Virgin Atlantic Airways — Whirlpool Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk — Xerox — and Yahoo While the companies we spoke to had very different ways of managing their design processes, and though the terminology they use may differ from that of the double diamond model, there are some core stages within a design process that are common across the participating companies. In more depth The double diamond model is not the only model of the design process. You can find out more about the way other academics and design researchers define and measure design processes by downloading a PDF version (464KB) of our detailed Desk Research Report Discover The start of a project is marked by an initial idea or inspiration, often sourced from the Discover phase. The objective of the Discover stage is to act as a ‘phase of divergent thought’, where the designers and other project team members keep their perspectives wide to allow for a broad range of ideas and influences. In this stage of the design process, the company is asking a question, posing a hypothesis or identifying a problem by analysing market data, trends and other information sources. During our in-depth study of the design process in eleven global brands, we found that LEGO refer to this stage of the process as Exploring, Microsoft call it Understand, while Starbuck s have coined the term Concept Heights. It is worth noting, however, that in practice an element of discovery takes place throughout the design process, aimed at taking into account new information, user needs, competitive contexts or challenges that arise as the project progresses. Initial influences and inspiration Companies begin the design process when they want to develop a new product or service, or refine an existing one. The initial influence or inspiration for this can be triggered in a variety of ways. It may involve picking up on social or environmental trends, the launch of a competitor product or service, or tapping into the ideas of staff or networks. Within the company, the originator of an idea or suggestion could be a product manager, CEO, designer, user research, or even a customer. Indeed, companies like Whirlpool encourage all of their employees to take part in corporate innovation. In contrast, Alessi may be approached by a well-known designer who is seeking a Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk collaborative venture, or Virgin Atlantic's design head may receive a speculative email from the Chief Executive. Wherever the initial idea comes from, the design process in general and the Discover stage in particular provides a framework within which to process the initial ideas or inspiration. The Discover stage helps to identify the problem, opportunity or user need that should be addressed, and introduces the space within which design can provide a solution – the playing field for design. It is important that the design process used in the company allows for ideas to be captured and developed in this way, and fosters this type of creative environment among designers and other staff. Information sources We've seen that the initial influence or inspiration for a project could come from key individuals – such as the design leader in the company. It can also come from the need to regularly update or change a product or service. However, the design process most commonly begins with teams finding their initial inspiration in information about user behaviour. Indeed, the most formalised sources of inspiration and information are the outcomes and interpretation of market research and data, observation, primary research or ideas that have been generated in formal or informal settings by members of the team. This often takes the form of three key sources of information: — Use of market research — Generating user research (such as ethnography and observation) — The involvement of a bespoke design research group While their focus and settings differ, the design teams in all the companies we visited share a user-driven mentality, which is apparent in the up-front phase of enquiry and gathering of initial research into the behaviours, needs and perceptions of users. This information is digested by multi-disciplinary teams during the design process, including researchers, designers, product manager, engineers, research and development experts and developers. All this research and knowledge-gathering activity creates an enormous amount of information. Managing that information is another key challenge that many of the companies in the research are addressing in creative ways. Limitations of research While most companies used the research methodologies described above, it was generally acknowledged that such methodologies were not without their limitations. Some designers expressed concerns about whether consumer feedback could ‘take you to the next level’ when it comes to product and service development. Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk While consumers can react to what exists and relate back to what they know, some designers felt that consumers are less able to contribute to the development of completely new product or service concepts for the future. Indeed, academic studies of design-inspired innovation have noted Alessi’s Juicy Salif lemon squeezer by Philippe Starck as a product where the design has not relied on ‘classic market analysis based on surveys of focus groups’, due to a belief that ‘radical innovation of meaning is not pulled by the market but results from a vision about a possible future’. Design teams in companies like Virgin Atlantic Airways and BSkyB conduct user research at a stage where a prototype is well developed, rather than involving users at the concept development stage. The outcome of the Discover stage of the design process is a project brief for a design project, and signifies the practical start of the design process. Market research One source of information that can lead to the development of new products and services is market and research data. This can mean the outputs from companies’ own internal marketing, consumer insight or research teams, who commission and manage regular information and data from key target customer groups. It involves tracking perceptions and attitudes related to the company, its products and services, brand perceptions and customer satisfaction, and is also likely to include competitor analysis, and gathering feedback on the commissioning company’s performance and reception in contrast to that of their competitors. Through the analysis of such data by designers and other members of a project team, gaps in the market and areas for improvement and innovation are identified. Future trends While timely and regular market and research data can help to identify user needs and future trends, there is equally a need to anticipate future user or consumer needs. In order to address the requirement for information of this type, specific future-focused or trends analysis is often used. Particular topics of interest here revolve around: — Consumer behaviour and preferences in relation to the product or service offered by the company — New modes of communication — New service needs that may emerge on the basis of social, economic or environmental changes Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk The breadth of focus here opens up the possibility of a wide range of impacts on companies’ products and services – from complete product innovation (in response to issues such as global warming or technological changes), to styling preferences such as colours, finishes, materials and textiles. An example of a design process involving the anticipation of future user needs is Sony’s development of the mylo personal communicator. The mylo was designed to use the many WiFi networks that are being installed in offices, university campuses and towns across the world, and its design involved understanding and anticipating the needs of a user 'on the run'. Similarly, Whirlpool's conceptual research initiatives have involved studying future trends in food sourcing, storage and preparation. Finally, at BSkyB the Research & Development team is a future-focused group who look for new cabling solutions, and ways of using technological advances to provide better service solutions in customers’ homes. User research The emphasis on user needs and experiences in the companies we visited means that user research features heavily in the design process. User research is used to identify: — How users are accessing current products and services — Areas for improvements or innovation — Opportunities for new products and services that will address a user need Many user research methods find their roots in traditional market research methodologies, particularly when it comes to the gathering of data on customer satisfaction and trends. A significant proportion of user research is conducted through qualitative research with consumers, ranging from focus groups and depth interviews with target audience groups, to more focused and detailed ethnographic and observation based techniques. Stimulus materials such as cartoon strips to portray service propositions, storyboarding, scenario-building, multimedia, prototypes and other tools (such as eye-tracking technology for testing user interaction with software packages) are used to illustrate present and future user scenarios involving the use of their products and services. Using images and illustrations to bring the use of complex products and services to life is a useful way of communicating during user research. Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk Designer involvement in user research A key activity we noticed across all of the Discover methods and processes was involving designers as far as possible in conducting, analysing and understanding research. Many of the companies in the survey found that actively encouraging - and in some cases expecting - their designers to take part in user research allowed them to gain faster, deeper insights and better product ideas. This approach ranges from general multi-disciplinary design practices (which keep designers, user researchers and product or service developers working closely throughout the design process), to methods made available for designers to view user research) in practice, either remotely or in person. Some noteworthy examples of designer involvement in user research observed in the study include: — Starbucks sends their designers to work as baristas in their stores for up to a month to fully immerse them in the coffee and user experience that the Starbucks brand embodies. — Xerox sends designers out with service engineers when they visit customer sites to observe customers interacting with the product while in use. — Microsoft live-streams user research focus groups and sessions to all of its global locations. These are accessible by all employees but of particular use to designers, developers, programmers and researchers across all business functions. The benefits of involving the designers closely in user research are broadly that: — Designers bring particular creative skills or idea generation to the analysis of research-based information, and these skills help to identify problems and solutions emerging from the data — Having designers involved directly with other teams in the analysis of data and research involves multi-disciplinary working and thus gives other teams an insight into the skills that designers bring to the process — This kind of collaboration helps to clarify project objectives at an early stage. Managing and planning information As well as gathering these types of information during the Discover stage of the design process, design teams also face a key challenge in the way in which this information is used by, and shared with, the design function and with a wider project team. The design processes we observed managed this challenge in two key ways: Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk Planning with information - Using the design process to plan the flow of information through the development phase and manage the interaction with designers and other teams throughout Designer involvement in user research - Ensuring that designers are contributing to and taking part in research with users themselves. Planning with information Reflecting the findings of market data, research and future trends - and making appropriate design changes where necessary - presents a considerable challenge when planning the development of a new product or service. Most companies deal with this issue by setting strategic targets, deciding their objectives at least one year in advance and drawing up new product and service development plans accordingly. This is supported by having a formalised design process, which acts as a roadmap from the point of receiving information on users. For example, Whirlpool has defined a set of metrics through which it aims to predict consumer behaviour and design or innovate ahead of the curve so that needs have been anticipated and addressed in advance. And Starbucks plans its promotional campaigns one year in advance, with the help of its design process, starting with information from market research. Design research groups One criticism levelled at trends research is that future trends are sometimes researched in isolation of design thinking, with design thinking applied only after a trend has been identified. In order to bring design thinking closer to new business areas, product opportunities and user needs, several businesses have set up design research units whose main purpose is to generate new ideas alongside design thinking. The Design Innovation Team at Yahoo in San Francisco functions as an off-site incubation centre for designers on sabbatical from project work, allowing them to actively experiment, create and design for a period of three to six months. As such, it stands slightly removed from the design and project work conducted within Yahoo, but can still yield ideas for products and services that are then exploited within Yahoo at a later stage. Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk In other cases, externally commissioned designers are brought in to generate ideas for the business, such as in Xerox’s Design Research Group, based in the US. The designers commissioned by this group generate ideas through research with customers and focus on visual identity, such as colour and finishing trends. At Virgin Atlantic Airways, the design team works in a more informal manner with the Research & Development group to access future thinking and ideas that may prove useful to their design solutions. Define The Define stage should be thought of as a filter where the review, selection and discarding of ideas takes place. This is where findings from the Discover stage are analysed, defined and refined as problems, and ideas for solutions are pitched and prototyped. During our in-depth study of the design process in eleven global brands, we found that Microsoft call this the Ideate phase, Starbucks have named it Downtown and Whirlpool refer to it as Synthesis. During the initial Discover stage of the design process, the design team and its partners must keep a broad perspective and open mind in order to identify a problem - a user need or an opportunity that needs to be addressed and channelled into a design-led product or service development process. At the Define stage, a combination of the ideas or directions identified during the Discover stage are analysed and synthesised into a brief with actionable tasks related to new and existing product or service development. The Define stage ends with a clear definition of the problem(s) and a plan for how to address this through a design-led product or service. In practice, the Define stage ends in a project go-ahead through corporate level sign-off. Key activities during the Define stage are: — The generation of initial ideas and project development — Ongoing project management — Corporate objectives agreed and project sign-off. At most of the companies we visited, the Define stage would end with final sign-off of the concept and approval of work to begin on design and development. In some companies, much of the actual designing has effectively been frozen until the match between the concept and the overall corporate objectives that it will be aligned to and measured against have been agreed. Here, strategic dialogue takes place up front, and potential bottle necks, opportunities and no-go areas are defined ahead of the concept Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk approval. In this way, the development of the design project gets as far as possible without impacting negatively on finance, time and resources. It is worth mentioning at this stage that the companies we visited as part of the study place particular emphasis on the Discover and Define stages of the design process, which no doubt contributes to the overall success of their design and design processes. Project development Having defined the problem in the Discover stage, the Define stage covers the initial development of project ideas and components needed to solve the problem at hand. Here, it becomes important for the whole team working on the project, and not least the designers, to have an awareness of a number of factors that influence the possible solutions to the problem. Firstly, designers must understand the context within which the project is being undertaken. The Discover stage establishes that a problem or opportunity exists, and that a product or service development or iteration is necessary as a result. During the Define stage a designer must engage with and understand the wider context in which this problem or opportunity sits, both within and beyond the company. This might include considering the company’s own financial situation and the extent to which it is able to invest in a project, the recent launch of a competitive product with similar features, or social and economic contexts which require a certain approach or sensitivity, such as an awareness of sustainability issues. At Virgin Atlantic Airways, the role of design in the innovation process is valued, but is subject to the careful development of a robust business case before a project commences, and must – in many cases – also be compliant with airline regulations. Once a large monetary commitment has been made there is little tolerance of failure, requiring the need for the in-house design team to innovate in- line with very strict business guidelines. Secondly, the designer must equally keep in mind what is feasible within the company’s technological or production capabilities. A clear understanding of details such as materials, logistics, time-to-market and other influencers is a key part of understanding the wider corporate ability to develop a design solution. This enquiry is not as detailed during the Define stage as during the Develop stage, but rather serves as a filter that allows designers to identify which idea has legs and should be pursued and developed. Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk Communication with other experts and departments internally is important at this stage. In most cases the design process oversees clear lines of communication between designers and other area experts, such as engineers, developers, materials experts, Research & Development teams, and product or service managers who are able to input the right information that will guide the designers’ initial ideas. Air safety regulations, weight and dimensions naturally affect design of products at Virgin Atlantic, and the design team runs regular milestone meetings where designers and manufacturers meet to make sure that they have the same interpretation of the design and that production is feasible. Similarly, BSkyB must take manufacturing capabilities into account at this stage in the design process, as its set top boxes are manufactured by three different companies. Thirdly, initial ideas generation must consider the corporate brand. The design process involves constantly checking to ensure that ideas generated are in line with the corporate brand vision, mission, values and guidelines. Starbucks checks each graphical execution of campaign materials against five core values. Any executions which are deemed not to fulfill each of these values go back to the drawing board for development or amendment. Another example of brand awareness at this stage of the design process is within Whirlpool, where its Platform Studio, consisting of an inter-disciplinary group of designers, advanced manufacturers and engineers, think about new areas for innovation. They act on the basis of market research and data that is interpreted and analysed for product solutions, and use design thinking and prototyping as ways of interpreting user needs. The outputs from the Platform Studio are then passed on to the brand studios for consideration and implementation. The brand studios consider the fit between the latest design features and functions and the brands themselves. This exchange is a key part of the design process in Whirlpool and allows the brands to retain their own integrity while still capitalising on the design guidelines of the central design and innovation function. In sum, the project development and initial ideas generation phase of the Define stage reviews the context for the product or service development, the realism of what can be done, and the corporate brand. Taking these considerations into account, designers work through the project development and initial idea generation stage to define a project which will address the initial problem identified. Designers work in a variety of ways to do this, to refine the scope of the project, and to home in on which solutions can have impact, which product or service has scope or potential, which product or service Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk would push the business and design in the right direction. Some of the methods used include reviewing further research, role-playing, paper prototyping, day-in-the-life scenarios, sketching, reviewing ideas, considering colours, styles and trends, project team scrums, selections, and brainstorms, among others. Project management As design projects move from their initial discovery phase into the more structured process of definition, so the companies in our survey began to use a variety of more formal project management tools. Formal tools serve two main purposes during project definition. They help design teams to ensure that they have considered and captured every essential aspect of the design problem – to avoid unpleasant surprises later – and they help in the communication of the design specifications to other parts of the organisation, so they can make go/no go decisions or sensible choices about the resources required to support the development of the design. LEGO uses a series of process documents, which it calls the Foundation Overview, Foundation Document and Roadmap to effectively communicate the current status of a design project and to make the case for a particular product adjustment, redefinition or reconfiguration. In the Define stage of the process, the Foundation Document is particularly important. It attempts to present the full rationale behind every project, including the concept, its business rationale, its target market and the required sales, marketing and communication support. The Foundation Document also allows LEGO management to assess the key risks associated with a new product idea, by spelling out the complexity of the product and any particular development challenges, together with recommendations for risk mitigation. A similar approach to project management is used by Starbucks. Originally, graphical executions of in-store promotional campaign work were posted internally in a shared space in the Seattle office for the wider Global Creative team to review and comment on. Team members would provide feedback in writing on each execution, suggest amendments and alterations, or sign-off approval. This system is now being transferred into an online workflow management tool, which manages this process of design iteration in a highly efficient, automated way. By capturing design iterations and feedback in a central repository, the workflow management tools speeds up the approvals process and captures important design information for wider use. Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk While some project management approaches attempt to define the project specifications in as much detail as possible before design development begins, others adopt a fundamentally different philosophy. Some companies, particularly in the software sector, consider changes in project definition to be an inevitable part of the design process. Their management systems try to make the implementation of those changes as quick, cheap and painless as possible. Yahoo product development makes use of project management systems for software development. AGILE is one of these systems, and is one of a family of approaches to software development. A number of key principles underlie the AGILE methodology: — Customer satisfaction by rapid, continuous delivery of useful software — Working software is delivered frequently (weeks rather than months) — Working software is the principal measure of progress — Even late changes in requirements are welcome — Project progress through close, daily, cooperation between business people and developers — Face-to-face conversation is the best form of communication — Projects are built around motivated individuals, who should be trusted — The development process should pay continuous attention to technical excellence and good design — Simplicity — Projects are delivered by self-organising teams — Regular adaptation to changing circumstances. In the AGILE system, designers, user researchers, developers and commercial staff work closely together on a given project. Team members may work separately on their particular parts of a project, but they come together frequently to take projects forward, and adapt quickly to changes and new information where possible. This type of project management, helps designers to identify where and when their input is most valuable, and to communicate that input frequently to other members of the team. Corporate sign-off At most of the companies we surveyed, the end of the Define phase is a pivotal point in the design process. It is at this stage that projects are either killed off, or given the budget and approvals to move on to production. In order to make this go/no-go decision sensibly, companies must have a detailed understanding of the likely market for the new design, together with a good idea of the cost and complexity of producing it. The ability to present a well argued business case alongside a proposed design approach was a key attribute for almost every design team we spoke to in our survey. Yahoo, for example, says that its project teams, including designers, must be able to Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk explain how their proposals will ‘move the needle’ and produce a dramatic improvement in revenue. Companies in our survey did vary, however, in how far they allowed or required a design to progress before making the go/no go decisions. At Xerox, the aim is to present one concept that has been thoroughly reviewed and tested. At Yahoo, the ‘demo or die’ principle necessitates the existence of a working prototype. At Virgin Atlantic Airways, before official sign-off, there has already been an intensive period of collaboration working with external agencies to ‘define’ very closely their business case and employ model makers to create a 3D prototype. Many companies have formal processes to manage the corporate sign-off process and to ensure that project teams and designers deliver comprehensive and consistent information to those responsible for sign-off. At Yahoo, when the AGILE methodology is used, a Product Requirements Document is produced by the product and marketing teams and presented to the General Manager of a business unit for approval. This one page document shows the concept, confirms its logic through research and information from internal experts, and demonstrates tie-ins with the overarching corporate objectives. At Virgin Atlantic Airways an Opportunity Identifier is presented to the board, followed by the development of a detailed business case to request financial and corporate backing for further development. At LEGO the Foundation Document is used also to bring together all the information needed assess the viability of a project. Some companies use less formal processes to make the go-ahead decision for design projects. It is not unusual for the final decision about the viability of a project to be made by the CEO. Indeed, a close link to the CEO can have a significant impact on project success. In BSkyB and Alessi, for example, the proximity of the company head to the new product and service development process lends itself to speedy sign-off and wider support. Develop At the Develop stage the project has been taken through a formal sign-off, which has given the corporate and financial backing to the development of one or more concepts that have addressed the initial problem. During our in-depth study of the design process in eleven global brands, we found that Microsoft refer to this process as Implement, while Virgin Atlantic Airways call it Design. Key activities and objectives during the Develop stage are: Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk — Multi-disciplinary working and dependencies with other departments — Visual management — Development methods — Testing During the Develop stage, the design team, either together with key internal partners (such as engineers, developers, programmers, and marketing teams) or via external design agencies, refine one or more concepts that will address the problems or issues identified during the Discover and Define stages. Design development methods used here include creative techniques and methods such as brainstorming, visualisation, prototyping, testing and scenarios. The methods and working processes are in many cases similar to those during the Define stage, but are this time focused on bringing the agreed product or service to fruition. At the end of the Develop stage, the design process will have brought the product development team to a stage where the product or service is ready for delivery to production. Multi-disciplinary working Multi-disciplinary teams are a key feature of the design processes observed in the companies that took part in this study. And multi-disciplinary teams are a feature strongly in the Develop stage, where input and advice from other areas of expertise are essential to finalising the product or service at this stage. Key to this is the way in which the design process aims to break down walls and silos internally, for example between design and manufacturing. The benefits of doing this include speeding up problem-solving during the project, as potential issues and bottle- necks are identified early on, and potential delays are addressed. In the case of Virgin Atlantic Airways, the design development stage of the design process involves a series of meetings with manufacturers to present the design to manufacturers and gain their feedback. At Whirlpool the innovation process and product development phase starts in the Platform Studio (in which designers, advanced manufacturing experts and engineers work together to think about new trends and products) and ends up with a prototype being handed over to the brand studios for final preparation for launch, including user testing. Design Council, 34 Bow Street, London WC2E 7DL Tel +44(0)20 7420 5200 Fax +44(0)20 7420 5300 www.designcouncil.org.uk