Creating Value - Designing a (Design) Business
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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