Creating Value - Designing a (Design) Business

DESIGNINGBUSINESS

a

Design

Welcome THANKS FOR COMING

CLAYTON FARR CO-FOUNDER, FORM UX

Who’s Talking?

DESIGN

DESIGNCreating Meaning System Thinking Process Thinking

CuriosityTinkerDiscovery

DESIGN

BUSINESS

BUSINESSCreating Value

BUSINESSExchanging Value

DESIGNINGBUSINESS

a

Design

Applying design thinking + skills to how we create value and how we’re compensated for it.aka

VALUE ? What’s the true valuewe provide as designers?

VALUE How can we increase the value we provide?

How can we get best compensated for the value we produce?

VALUE $

MEYOU≠

MY EXPERIENCESYOUR SITUATIONmay not =

MY EXPERIENCESYOUR NEEDSmay not =

MY EXPERIENCESYOUR GOALScan help

but hopefully

VALUE ? What’s the true value we provide through our work?

WHAT

I THOUGHT

BEAUTY + ELEGANCETHOUGHT

BEAUTY + ELEGANCETHOUGHT

To save them from themselves.

OPTIONSTHOUGHT

OPTIONSMild, Medium, or Spicy?

THOUGHT

SPEEDTHOUGHT

SPEEDTHOUGHT

Do a lot of stuff.

SPEEDTHOUGHT

Do a lot of stuff. Faster.

THE FINISHED PRODUCTTHOUGHT

THE FINISHED PRODUCTForgives everything that led to it.

THOUGHT

WHAT

I’VE LEARNED

THE BASICS = 79% OF YOUR SUCCESS

LEARNED

BASICS =

TRUSTBe reliable. Follow-through. Don’t make more work.

COMMUNICATIONBASICS =

Clear, consistent and proactive.(This topic deserves 23 slides in itself. Alas.)

DESIGN PROCESSLEARNED

DESIGN RESULTSis as valuable as (and sometimes more)

You’re selling a lot more than just design. You’re selling less risk for the client… a solid process and strategy.

– Jason Blumer

“

”

DESIGN PROCESS =

CLARITYProviding perspective and insight of factors that the design supports.

DESIGN PROCESS =

DIRECTIONAligning varied factors into an effective design solution.

EXPLORATIONDiscovery, learning, adjustment amidst implementation.

DESIGN PROCESS =

VALIDATIONReality wins every time.

DESIGN PROCESS =

VALIDATIONReality wins every time. Help your client join its team.

DESIGN PROCESS =

What’s the true value we provide through our work?

“

”?

BEAUTY + ELEGANCE OPTIONS SPEED FINISHED PRODUCT

BEAUTY + ELEGANCE OPTIONS SPEED FINISHED PRODUCT

Sometimes Important

TRUST COMMUNICATION

Baseline

TRUST COMMUNICATION

BaselineSuper Important

CLARITY DIRECTION EXPLORATION VALIDATION

Unique

CLARITY DIRECTION EXPLORATION VALIDATION

UniqueSuper Valuable

VALUE How can we increase the value we provide?

WHAT

I THOUGHT

Be quicker.

THOUGHT

DOING MORE WORK

Be quicker. Over deliver.

THOUGHT

DOING MORE WORK

DOING BETTER WORKTHOUGHT

Be more perfect. Increase ‘quality’.

WHAT

I’M LEARNING

EFFICACYEFFICIENCYout

performs

LEARNING

EFFICACYLEARNING

Knowing what work to do - and not. All experience prior to this problem.

NOT ALL WORKVALUEis of equal

LEARNING

INSIGHTSKILLSout

performs

LEARNING

IDEATIONPRODUCTION

aka

out performs

COMMODITYPRODUCTION

Quality implementation is necessary & highly important, but -

COMMODITYPRODUCTION

Good production is increasingly available from many sources

COMMODITYPRODUCTION

Equaling a large amount ofsupply to meet demand

COMMODITYPRODUCTION

Making production less ‘valuable’. It should (and will) cost less.

EXCLUSIVEClear, effective thinking & planning is in shorter supply. Can be focused.

IDEATION

EXCLUSIVEEffective insight & ideation is much more difficult to duplicate.

IDEATION

EXCLUSIVEClear perspective & lateral insight is less likely to be available internally.

IDEATION

EXCLUSIVEIDEATION

Making ideation much more ‘valuable’. It should (and does) cost more.

DIFFERENTBETTER

LEARNING

is better than

BETTER, BASICALLY =

EVERYTHING

ANYONETRIES TO ATTRACT

DOING EVERYTHING =

EVERYONECOMPETES WITH

DOING EVERYTHING =

NOTHINGYOU BECOME EXCELLENT AT

DOING EVERYTHING =

SPECIFICBECOMING SOMETHING

BEING DIFFERENT =

EVERYTHINGINTENTIONALLY SAYING NO TO

BEING DIFFERENT =

Instead of being mildly appealing to anyone, become intensely appealing to a select group.

– Tim Williams

“

”

Deciding what you do - and don’t,for whom, and why.

BEING DIFFERENT

TAKING A POSITION

Your purpose. Beyond making money, why does your business exist?

POSITIONING =

CALLINGUNCOVERING YOUR

POSITIONING =

COMPETENCIESDETERMINING YOUR

What are your unique strengths -that you can do better than others?

POSITIONING =

CUSTOMERSWho can you serve best -your preferred and ideal customers?

SELECTING YOUR

POSITIONING =

CULTUREWhat are the principles you wouldturn-away business to support?

DECIDING YOUR

TWO PEOPLEONEare smarter than

LEARNING

HONESTA PERSON WHO KEEPS YOU

PARTNERSHIP =

HONESTA PERSON WHO KEEPS YOU

PARTNERSHIP =

WITH YOURSELF

SMARTA PERSON WHO KEEPS YOU

PARTNERSHIP =

TRUSTA PERSON WHO YOU

PARTNERSHIP =

STRANGLEA PERSON YOU WANT TO

PARTNERSHIP =

STRANGLEA PERSON YOU WANT TO

RARELY

PARTNERSHIP =

STRANGLEA PERSON YOU WANT TO

RARELY, BUT SOMETIMES

PARTNERSHIP =

WORTH THE EFFORT

IS CERTAINLY

PARTNERSHIP =

How can we increase the value we provide?

“

”

GET LEVERAGEANSWER:

Little Leverage Tons of Leverage

EFFICIENCY SKILLS GENERALIST INDIVIDUAL

EFFICACY INSIGHTS SPECIALIST PARTNERSHIP

VALUE How can we get best compensated for the value we produce?$

WHAT

I THOUGHT

PRICING“How much do I need to makean hour

THOUGHT

COSTS=+ this + that + another thing?”

PRICINGTHOUGHT

MARKET=“How much are these other guys getting away with charging?”

PRICINGTHOUGHT

EFFORT=“How many hours is this damn thing going to take?

UNIT OF $THOUGHT

HOUR=“Um, yeah. That’s the way everyone does it.”

UNIT OF $THOUGHT

DAY=“Less micro-managing. Cool.”

UNIT OF $THOUGHT

WEEK=“Finally, big picture thinking.We’re geniuses.”

WHAT

I’M LEARNING

COSTSLEARNING

YOURS=

COSTSLEARNING

YOURS=Your concern.

COSTSLEARNING

YOURS=Your concern. Your benefit.

COSTSLEARNING

YOURS=Not the concern of your client.

COSTSLEARNING

Affect whether you can profitablyprovide requested value, but -

COSTSLEARNING

Should not dictate compensation for the value you produce.

PRICINGLEARNING

PRICINGLEARNING

VALUE=

PRICINGLEARNING

VALUE=Me: “Of course. Duh.”

Instead of negotiating price, negotiate value. Clients aren’t price conscious, they’re value conscious.

– Ron Baker

“

”

TOTAL VALUE =

YOUTHE VALUE

CLIENTVALUE FOR

+

CHARGE FOR

TO REAP

PRODUCEDTOTAL VALUE

CLIENTVALUE FOR

– TO REAP

aka THE VALUE YOU CHARGE FOR =

UNIT OF $LEARNING

UNIT OF $LEARNING

VALUE=

UNIT OF $LEARNING

VALUE=Me: “Dammit. Of course, double duh.”

VALUE BILLING

LEARNING

≠VALUE PRICING

VALUE BILLING

LEARNING

≠Pricing is proactive. Billing is reactive.

VALUE PRICING

MORE HONEST

LEARNING

VALUE PRICINGis

MORE HONEST

LEARNING

VALUE PRICINGis

By aligning designer & client incentives.

MORE FAIR

LEARNING

VALUE PRICINGis

MORE FAIR

LEARNING

VALUE PRICINGis

To you and your client.

MORE FLEXIBLE

LEARNING

VALUE PRICINGis

MORE FLEXIBLE

LEARNING

VALUE PRICINGis

Compensation can come in many forms.

MORE PROFITABLE

LEARNING

VALUE PRICINGis

MORE PROFITABLE

LEARNING

VALUE PRICINGis

Costs no longer dictate / limit your value.

SCOPE OF VALUE

LEARNING

based upon

VALUE PRICING

SCOPE OF VALUE

LEARNING

based upon

VALUE PRICINGInstead of scope of work.

THEREFORE,

VALUE PRICING

CONVERSATION

THEREFORE

VALUE PRICINGis a

CONVERSATION

THEREFORE

VALUE PRICINGis a

Up-front dialogue & discovery with client.

How can we get best compensated for the value we produce?

“

”

$

VALUESEPARATE

COSTSAND

VALUE COSTS=REALLY, TRULY

KILL YOUR HOURLY RATE

MAKE EVERY EFFORT TO

SO YOU CAN TIE YOUR UNIT OF PAYMENT

VALUE produced instead.

to the

TO LEARN WHAT A CLIENT VALUES

TAKE THE TIME AND EFFORT

TO HELP MAKE THOUGHTFUL PRICING

one of your core competencies.

YOUR BUSINESS =

YOUR BUSINESS =

YOUR DESIGN

YOUR BUSINESS =

YOUR DESIGNDesign it thoughtfully & purposefully, as you would anything else.

@ClaytonFarrFORMexperience.comTHANK

YOU

LEARN MORE

Businessologyshow.bizDan Mall & Jason Blumer

Positioning for Professionals Tim Williams

Implementing Value PricingRon Baker