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SlideShare a Scribd company logo
Team structure.
Design & Business
A New Model of Product Strategy
McLean Donnelly
Vice President, User Experience
@McLeanDonnelly
10,000
websites created each day
1,000
apps published each week
176,136
user experience roles on Indeed
507
Head of Design roles on Indeed
228%
out-performance of the S&P 500
by design-centric companies
Let’s take a moment
to celebrate this!
We’ve done it!
Hold up.
EBITDA
Weighted Average Cost
of Capital
Free Cash Flow
Capital Asset
Pricing Model
Wait, what?
“We don’t do that stuff. That’s
what business does.”
- Every designer everywhere
Waterfall and agile methodologies
have centralized business thinking.
Traditional BFA & MFA programs
don’t teach the business
skills design needs for
our next evolution.
Companies aren’t investing
in business skills for design.
If I get trained in business skills,
I can become a strategic & design
leader.
3 Years of My Life...
8:00 am - 5:00 pm
UI Design
IxD Wireframes
Sketch
Photoshop
Email templates
Branding
Ux Research
Native Apps
Responsive design
Prototyping
6:00 pm - 9:00 pm
Accounting I & II
Finance & Markets
Economics
Statistical Reasoning
Corporate Strategy
Supply Chain & Logistics
Sales & Negotiation
Marketing
Business Law
Change Management
Business Literature
Venture Strategies
Leadership Capstone
10:00 pm - 7:00 am
Regret my decision
Pizza
Sleep
This layout works great for a dramatic quote or statistic.
Insert an amazing image and align it with this grey rectangle for a dramatic transition.
Feel free to change the copy to white should want it to show up better against the image.
MBA Adventure
Here are 3 classes from my
MBA program that every designer
should explore.
Finance 101
If you can learn sketch,
you can learn finance.
Proprietary and confidential
Let’s learn to read an
income statement!
This is the blueprint to understanding
the business model and the biggest
variables that make up a business.
Proprietary and confidential
Pay close attention to
costs and expenses
Raw revenue generation will always be a key
driver for business, but as designers, our work
actually has a profound impact on cost
reduction for the company.
This type of analysis can give design-lead
projects credibility that would have
previously been considered, “non-revenue
generating.”
Proprietary and confidential
Buy a burrito for someone
in accounting. Accountants
like burritos too.
Proprietary and confidential
Next, we should get the
hang of Statistics
Say you have two basic questions:
- How many people visit my website?
- How many visitors have I converted into leads or customers?
Those answers, easily found in Google Analytics, and with a simple
X/Y =Z ratio:
eCommerce Conversion Rate = Transactions Completions/Visitors
77% percent of statistics are made up?
Or is it 81%?
Proprietary and confidential
Khan Academy is
a great resource.
Proprietary and confidential
I started fusing
these skills into
my design process
Armed with this new statistical skillset,
I was able to incorporate business
thinking as an early step in my design
process.
Proprietary and confidential
I’d take my financial knowledge, add
stats and would build a model!
Proprietary and confidential
Proprietary and confidential
Example “ROI of UX” Calculator
Design 1 Design 2 Change
Total Visitors to Page 1000 1000 0
Email Conv Rate 20% 10% -10%
Email Sign Ups 200 100 -100
Conversion Rate 5% 15% + 10%
Purchases 50 150 +100
Price 250 250 0
Total Revenue $12,500 $37,500 + 25,000
Just as there are free design
templates, there are free
excel modeling templates.
Proprietary and confidential
If you put it all together,
you can have jaw-dropping
designs, with a persuasive
business case.
Proprietary and confidential
Please remember this information is confidential.
Signature experience.Strategy
“Strategy is choosing what not to do.”
- Michael Porter
Proprietary and confidential
Porter is basically the LeBron James
of business thinking. He built a
strategic framework.
Proprietary and confidential
Porter’s framework gives us three
strategic choices:
Proprietary and confidential
Cost leadership: Low price, high volume
Narrow Segmentation: Ownership of a market
Differentiation: A new product or service
Proprietary and confidential
If choosing differentiation, I’ve found
success in going to the foundations of
Human Centered Design
Proprietary and confidential
Please remember this information is confidential.
Signature experience.Find the emotional connection
Customer Journey
Collage
A great way to find the emotional
connection with your customer is to build a
photo journal of their lives. Who are the
people they connect with, where do they
spend their time...visually connecting these
will help identify the emotional connection
you want to make.
Proprietary and confidential
Solve for those worries
Social Media Dialogue
Increasingly, customers use social media channels
as a primary method of communication with a
company. They are honest and will often engage in
constructive dialog about your product and
company.
Proprietary and confidential
This is your cover.
Insert an amazing image and align it
with this grey rectangle. Please use the
red, patterned, Shutterstock background
for internal presentations only.
Talk to your customers
Customer interviews can provide in-depth
details about a customer’s actions,
thoughts, and feelings.
1:1 Interviews &
unmoderated viewing
Find your signature experience
Northstar Workshop
Getting everyone in the room (UX, Product
& Tech) is key. It will foster unique
conversation and create a sense of
investment in the experience and who you
are solving for.
Commit the team to building a true
“Northstar” blending your product,
customer features, signature experience
and emotional values.
Venmo
90% of all Venmo transactions are open to
somebody's friend, network, and 75%-plus have a
some sort of emoji or written commentary on that
transaction.
Shutterstock Editor
In fact, 90% of our customers who download an
image edited it. How were they editing? Preset
sizing for different ad formats like twitter posts
and facebook.
Next, our customers told us they wanted to be
able to start from templates and the ability to
upload their logos.
Please remember this information is confidential.
Signature experience.Team
Management
“A bad system will
beat a good person,
every time.”
- Dr. Edward Deming
The strength of design is 100%
connected to the strength of
the design process.
Designers are good at
managing the work,
not each other.
The principles of Kaizen,
a Japanese lean philosophy,
is a powerful starting place.
This philosophy is best expressed
through the Dr. Edward Deming’s
14 points.
Point 9:
“Break down barriers between departments.
People in research, design, sales, and
production must work as a team, to foresee
problems of production and in use that may
be encountered with the product or service.”
Point 3:
“Eliminate the need for inspection on a mass
basis by building quality into the product in
the first place.”
Org Management 101
1. Every department adopts agile
2. Communicated vision
3. Detailed growth plans
Point 14:
“Put everybody in the company to work to
accomplish the transformation. The
transformation is everybody's job.”
Thanks!
@bradfrost
@mikeindustries
@bertbrautigam
@cap

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McLean Donnelly - Design & Business: A New Model of Product Strategy

  • 1. Team structure. Design & Business A New Model of Product Strategy McLean Donnelly Vice President, User Experience @McLeanDonnelly
  • 5. 507 Head of Design roles on Indeed
  • 6. 228% out-performance of the S&P 500 by design-centric companies
  • 7. Let’s take a moment to celebrate this! We’ve done it!
  • 14. “We don’t do that stuff. That’s what business does.” - Every designer everywhere
  • 15. Waterfall and agile methodologies have centralized business thinking.
  • 16. Traditional BFA & MFA programs don’t teach the business skills design needs for our next evolution.
  • 17. Companies aren’t investing in business skills for design.
  • 18. If I get trained in business skills, I can become a strategic & design leader.
  • 19. 3 Years of My Life... 8:00 am - 5:00 pm UI Design IxD Wireframes Sketch Photoshop Email templates Branding Ux Research Native Apps Responsive design Prototyping 6:00 pm - 9:00 pm Accounting I & II Finance & Markets Economics Statistical Reasoning Corporate Strategy Supply Chain & Logistics Sales & Negotiation Marketing Business Law Change Management Business Literature Venture Strategies Leadership Capstone 10:00 pm - 7:00 am Regret my decision Pizza Sleep
  • 20. This layout works great for a dramatic quote or statistic. Insert an amazing image and align it with this grey rectangle for a dramatic transition. Feel free to change the copy to white should want it to show up better against the image. MBA Adventure
  • 21. Here are 3 classes from my MBA program that every designer should explore.
  • 23. If you can learn sketch, you can learn finance. Proprietary and confidential
  • 24. Let’s learn to read an income statement! This is the blueprint to understanding the business model and the biggest variables that make up a business. Proprietary and confidential
  • 25. Pay close attention to costs and expenses Raw revenue generation will always be a key driver for business, but as designers, our work actually has a profound impact on cost reduction for the company. This type of analysis can give design-lead projects credibility that would have previously been considered, “non-revenue generating.” Proprietary and confidential
  • 26. Buy a burrito for someone in accounting. Accountants like burritos too. Proprietary and confidential
  • 27. Next, we should get the hang of Statistics Say you have two basic questions: - How many people visit my website? - How many visitors have I converted into leads or customers? Those answers, easily found in Google Analytics, and with a simple X/Y =Z ratio: eCommerce Conversion Rate = Transactions Completions/Visitors
  • 28. 77% percent of statistics are made up? Or is it 81%? Proprietary and confidential
  • 29. Khan Academy is a great resource. Proprietary and confidential
  • 30. I started fusing these skills into my design process Armed with this new statistical skillset, I was able to incorporate business thinking as an early step in my design process. Proprietary and confidential
  • 31. I’d take my financial knowledge, add stats and would build a model! Proprietary and confidential
  • 32. Proprietary and confidential Example “ROI of UX” Calculator Design 1 Design 2 Change Total Visitors to Page 1000 1000 0 Email Conv Rate 20% 10% -10% Email Sign Ups 200 100 -100 Conversion Rate 5% 15% + 10% Purchases 50 150 +100 Price 250 250 0 Total Revenue $12,500 $37,500 + 25,000
  • 33. Just as there are free design templates, there are free excel modeling templates. Proprietary and confidential
  • 34. If you put it all together, you can have jaw-dropping designs, with a persuasive business case. Proprietary and confidential
  • 35. Please remember this information is confidential. Signature experience.Strategy
  • 36. “Strategy is choosing what not to do.” - Michael Porter Proprietary and confidential
  • 37. Porter is basically the LeBron James of business thinking. He built a strategic framework. Proprietary and confidential
  • 38. Porter’s framework gives us three strategic choices: Proprietary and confidential
  • 39. Cost leadership: Low price, high volume Narrow Segmentation: Ownership of a market Differentiation: A new product or service Proprietary and confidential
  • 40. If choosing differentiation, I’ve found success in going to the foundations of Human Centered Design Proprietary and confidential
  • 41. Please remember this information is confidential. Signature experience.Find the emotional connection
  • 42. Customer Journey Collage A great way to find the emotional connection with your customer is to build a photo journal of their lives. Who are the people they connect with, where do they spend their time...visually connecting these will help identify the emotional connection you want to make. Proprietary and confidential
  • 43. Solve for those worries
  • 44. Social Media Dialogue Increasingly, customers use social media channels as a primary method of communication with a company. They are honest and will often engage in constructive dialog about your product and company. Proprietary and confidential
  • 45. This is your cover. Insert an amazing image and align it with this grey rectangle. Please use the red, patterned, Shutterstock background for internal presentations only. Talk to your customers
  • 46. Customer interviews can provide in-depth details about a customer’s actions, thoughts, and feelings. 1:1 Interviews & unmoderated viewing
  • 47. Find your signature experience
  • 48. Northstar Workshop Getting everyone in the room (UX, Product & Tech) is key. It will foster unique conversation and create a sense of investment in the experience and who you are solving for. Commit the team to building a true “Northstar” blending your product, customer features, signature experience and emotional values.
  • 49. Venmo
  • 50. 90% of all Venmo transactions are open to somebody's friend, network, and 75%-plus have a some sort of emoji or written commentary on that transaction.
  • 52. In fact, 90% of our customers who download an image edited it. How were they editing? Preset sizing for different ad formats like twitter posts and facebook. Next, our customers told us they wanted to be able to start from templates and the ability to upload their logos.
  • 53.
  • 54. Please remember this information is confidential. Signature experience.Team Management
  • 55. “A bad system will beat a good person, every time.” - Dr. Edward Deming
  • 56. The strength of design is 100% connected to the strength of the design process.
  • 57. Designers are good at managing the work, not each other.
  • 58. The principles of Kaizen, a Japanese lean philosophy, is a powerful starting place.
  • 59. This philosophy is best expressed through the Dr. Edward Deming’s 14 points.
  • 60. Point 9: “Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service.”
  • 61. Point 3: “Eliminate the need for inspection on a mass basis by building quality into the product in the first place.”
  • 62. Org Management 101 1. Every department adopts agile 2. Communicated vision 3. Detailed growth plans
  • 63. Point 14: “Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.”
  翻译: