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Design Leadership Programme

Neil Gridley Design AssociateDesign Council2

Overview of what DC does: We are a charity with a remit to bring the benefits of design to new people and places hitherto unaware of it power to create change/improvement

We do that through three main areas of activity: Our Challenges work: tackling big, intractable social problems (eg hospital infection; violence in A&E; dementia care)CABE (formerly an independent organisation now part of DC Commission for the Built Environment) this team is focused on raising the quality of the built environmentFinally, Design Leadership Programmes these are our support programmes across three areas: business with a focus on helping SMEs (develop and grow); public sector (helping them improve delivery and increase efficiency); and science/high tech ventures. Focus of this presentation is business. Our work in DLP is supported by BIS

2Design Council themes

AgeingActiveCommunitiesGrowthAt the DC, our work falls into four thematic areas: the work of our support programmes clearly falls into the Growth theme3What is Design?

44Design?5

A common media perception is of the stylist designer giving a magic touch to the look of things at the end of the development process

Sometimes what can be called lipstick on a pig.

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BrandingFashionWeb/InteractiveDesignInteriorsProductsGames*

* GTAV: in its first 24 hours grossed $815.7m in revenue.Sales reached $1 billion after three days on the market

Service

Design is a market focused discipline, looking at the needs of users and shaping things to meet those needs.

It can shape brands Orange a breakthrough at the time now replaced by EE but retained in franceFashion burberry ..Web/Interactive ServicesInteriors highly acclaimed virgin loungesProducts dysons bagless cleanerGames sold 11.2 million units, netting $815.7 million in revenue in its first 24 hours.Sales reached $1 billion after three days on the market

Official statistics published today reveal that the UKs overall creative Industries, (which includes the film, television and music industries), are now worth 71.4 billion per year to the UK economy generating just over 8 million pounds an hour.

Growth of almost 10% in 2012, outperforming all other sectors of UK industry. Accounted for 1.68 million jobs in 2012, 5.6 per cent of UK jobs

We have a design industry which is arguably the best in the world or at least competing with the USA for the top slot.

6DesignBrand & Comms

Space / InteriorWeb / InteractiveServicePackagingProduct / UI

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We can see the success in using in one of my favourites AppleDesign plays a critical role in Apple touching on all aspects of the customer experience.Shaping technology to be useful, useable and desirable.

In 2014 the iPhone and iPad would collectively exceed 80 million units sold in one quarter.

7The CDO8

Jonathan Ive is a british trained designer (Northumbria) he is chief designer of apple.But there is a trends towards more and more companies appointing this role.

Two Ive worked with who you may not have heard of are Stefano Marzano formerly CDO of Philips and more recently Electrolux until he retired

Also Eric Quit now the CDO of 3M in Minneapolis

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The link between creativity, innovation and designCreativity is the generation of new ideasInnovation is the successful exploitation of new ideasDesign is what links creativity and innovation. It shapes ideas to become practical and attractive propositions for users or customers9So how does design link with creativity (research) and innovation

Sir George Cox in his review of the role of creativity in business, provided simple definitions of the relationship between these important elements.

Creativity is the generation of new ideas (or you might say Research & Creativity is the generation of new ideas and knowledge (IP)Innovation is the successful exploitation of new ideasDesign is what links creativity and innovation. It shapes ideas to become practical and attractive propositions for users or customers

Design is a process, a set of ways of doing things that drives innovation and helps shape and create value for the customer or user.

9Design Thinking10

Designers play a role in that process but its a process that involves anyone in the company and is central to innovation.

This is something that the business press has picked up on as you can see from these examples.

10Stanford D School11

Stanford have created the D school for this very reason.Bringing together multidisciplinary teams to tackle problems in a creative, experimental way.

Students and faculty in engineering, medicine, business, law, the humanities, sciences, and education find their way here to take on the worlds messy problems together. Human values are at the heart of our collaborative approach. We focus on creating spectacularly transformative learning experiences. Along the way, our students develop a process for producing creative solutions to even the most complex challenges they tackle. This is the core of what we do.

In a time when there is hunger for innovation everywhere, we think our primary responsibility is to help prepare a generation of students to rise with the challenges of our times. We define what it means to be a d.school student broadly, and we support students of design thinking who range from kindergarteners to senior executives. Our deliberate mash-up of industry, academia and the big world beyond campus is a key to our continuing evolution.

11Why Design? Design savvy businesses outperform

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Recently (November 2013) a new piece of Design Council research was launched called Leading Business by Design and involving a number of well known businessesthis work was done in partnership with Warwick Business School13Key research findings Design can add value by:

Driving innovation and opening up uncontested market spaces>Differentiating products and services to attract customers>Strengthening branding, embodying a companys values and improving recognition.>Some key headlines that emerged from the research:It can drive innovation and open up uncontested market spaces (i.e. developing and designing new products and services that competitors dont have yet)

Differentiating products and services to attract customers design shape can make your offer different to attract customers.

Strengthening branding, embodying a companys values and improving recognition.

I would also argue that design can generate greater value products, services experiences that people are prepared to pay more for.14

The impact of design15Design can help organisations transform their performance, from business product innovation to the commercialisation of science and the delivery of services.

That is why design forms an integral part of the Governments plans for innovation and growth and features strongly in our Innovation and Research Strategy for Growth

Rt Hon David Willetts MPMinister for Universities and Science

Design can help organisations transform their performance, from business product innovation to the commercialisation of science and the delivery of services. That is why design forms an integral part of the Governments plans for innovation and growth and features strongly in our Innovation and Research Strategy for Growth

More recently BIS has pledged support for the programme in the Governments Innovation and Research Strategy with 1.8 funding to subsidise the programme for eligible UK organisations and projects.

15Design LeadershipProgramme

1616Design Leadership ProgrammeHarnessing design to drive growth and improve service efficiency We work at a senior level with organisations to help them realise the ambitions of the organisation by identifying practical ways that design can deliver tangible long term results.

17The Design Council has been running design support programmes for many years but in the last year or so all our services have come together under the banner Design Leadership Programmes.

17Design Leadership ProgrammeStart-upsScience & Tech focusPre-Start up(Universities)Science & Tech focusPublic ServicesCivil serviceLocal authoritiesThird sector18SMEsManufacturing Service businessesThis demonstrates the scope of our reachfrom pre start-up and micro businesses, though to SMEs in manufacturing and services, and then public services.18Impact

Economic evaluation of the impact on the businesses direct return for every 1 spent on design:19The Cox Review (2005) looked at how the UK could harness its world-class creative skills to improve business competitiveness. He identified a market failure in some areas, including the use of design.

19Feedbacksaid design was integral or important to their businesses

2020

Design Associate NetworkDelivery of repeatable and scalable services has only been possible through the recruitment of a national network of design associates (of which I am one). We are broad in our capability and rounded in our approach to strategic design thinking all trained designers but with experience in a huge range of companies. Neil Gridley

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Google Viadynamics for more information

22A clear and proven processStructured, using strategic design methods

Helping de-risk projects to ensure they deliverIntroducing innovative ways of workingwithin yourorganisationEnsuring your investment leaves a lasting legacy, equipping you with design management skills for the futureHelping you find the right design team to deliver returnsClarifying the scope of the design projects and setting realistic goalsBuilding capability within your organisation to manage design effectivelyIdentifying challenges and opportunities where design can make a differenceBringing a new perspective so you view your business afreshTotal immersionin your business or projectsWork in a structured and consistent way with all types of businesses using a series of methods, tools and common principles and bringing to bear our professional experienceLeaving a legacy of capability and understanding23Opportunities Framework

24Opportunities Framework

This is typical of how we work 25

How we workbuilding awareness and capability

We do this by taking people on a journey, giving them an experience and exposing them to a series of design led tools and techniques. We are toalking to you about design in leadership and managementtalk though a few examples.26The start-up

27The ChallengeTechnology not visibleHard to articulate competitive advantageNeed to attract investment Need to identify short, medium and long-term applications

28Risk management1 - 10 - 100For every 1 spent solving a problem in design stage, it costs 10 to tackle in development and 100 to rectify after launch.29Extreme UsersRich insight can be found at the edgesRange(Power users)Range(Rejecters)Core(Majority)

30Ideas GenerationMulti-disciplinary team of experts, structured process, clear commercial objectives. Ideas filtered - best ones go forward.

31Map design opportunities

32Identify Milestones

TechnologyBusiness Market33OutputsIntermediate product & service applicationsNew brandBuilt confidence of investorsGenerated income earlier

34OutcomeImmediate additional investment raised ($2.3m)First product launched was a successRepeat order from major customer within first yearFour new products active in three markets todayDesign core to business strategy and management

investment raised since launch$15m

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What we learned continues to benefit the business, it enabled Owlstone to communicate the value and potential of its technology and clarify the best route to market. It reduced risk and accelerated revenue generation, so boosting investors confidence. Billy Boyle, CEO, Owlstone NanotechJane36The established business

(before)

Naylor Industries went turned their business around by through the Designing Demand business mentoring programme, and diversifed from clay drainage pipes to flowerpots. Yorkshire Flowerpots sales have risen from 500,000 in 2005 to 6m in 2008-09.

What happened?New product development processNew brandSales grew 500k to 5m in 3 years20% of overall business outputJobs savedExport potentialHelped the company offset the worst effects of recession

20%UK terracotta pots marketMarket share

Design is not just about aesthetics. Its the creative process within the business. Design is fundamental, creating brands, products and an environment for businesses to move forward Ed Naylor, Chief Executive, Naylor IndustriesNaylor Industries is a fourth generation family business that manufactures building materials. Based at headquarters in Barnsley, the company has three other plants in Yorkshire, Scotland and the West Midlands. The company began making clay drainage pipes in 1890; recent decades saw the addition of plastic pipes and concrete lintels.

Problem:change and uncertainty in a difficult industry (construction) using design to diversify and reach new markets

Response: Introducing new structures and procedures to formalise the company's approach to NPD Appointing a Marketing Director to raise branding to a board level issueInvesting in a project to develop and relaunch Yorkshire Flowerpots, a branded range of terracotta flowerpots, which took the company into a new product sector - decorative products

Impact:Today, over half of the company's sales come from products the business wasnt making five years ago and the process behind new product development is much more structured than before. Naylor sales of flowerpots grew from 500,000 to 5m within the first three yearsStaff were successfully redeployed into flowerpot manufacture, offsetting the downturn in the companys traditional construction and drainage marketsToday, Yorkshire Flowerpots has a share of between 15% and 20% of the UK terracotta pots market with significant export potential

Ed Naylor was struggling with the downturn in cost industry, cheaper competition.Now successfully diversified.

42What do you need from Design?Give clarity and visibility to your visionHelp understand your customer needs better Generate and deliver new ideas to the marketDifferentiate and connect with your customersDevelop and innovation culture internallyCompete on value rather than priceDesign can create new or improved product and services to set your business apart from competition, add a premium to your price

Differentiate and connect with your customersDesign can improve the way you communicate with customers and present your business to generate more business

Generate and deliver new ideas to the marketDesign can help prototype and test new ideas or new technology to secure a future in your market

Increase market share or even create marketsDesign can help you understand your customer better, encourage loyalty and identify new market opportunities

Design is not a cost, its an investment and an investment that will pay off in the long term

43Who is it for?SMEs across the sectorsthat are financially stable with resources to investUK owned and basedambition for growthopen minded and forward thinking attitude44Thank youwww.designcouncil.org.uk/business45

I cant over-emphasise the beneficial impact working with the Design Leadership Programme had on our companyNigel Stuart, MD Discovery Yachts Rand experience as this was lacking for what is a high-end purchase

The project helped grow turnover from 6m in 2009 to 8.3m in 2011with a modest increase in sales despite the recession. This is why the company now has an on-going commitment to design: not as a cost, but as a business investment.46Whites

What's been most valuable about our experience of the Design Leadership Programme has been how our management culture has changed: we now think far more strategically as a direct result.Judith Stracey, Managing Director, White LogisticsWhite Logistics & Storage Ltd is a family-owned, medium-sized haulage business based in the Worcestershire

Problem: How to grow business in a highly competitive, commoditised market

Response: Create a stronger brand proposition and identity to be more memorable - differentiate Re-design services to strengthen customer loyalty and win new business

Impact: More than 500,000-worth of new business generated in year one Increased turnover - from 5m (2008) to 6.4m (2011/12) Positive feedback from customers Positive culture change within the business Re-branding work won a number of industry awards, including "Best Corporate Rebrand" category at the Transform Awards 2012 run by Communicate Magazine

Drivers were key touchpoint of the brand. Realised design key in all aspects across the business.47Visual planet

The programme has taught us the areas of improvement required and where we should apply our core strengths not only now, but in the future activities we pursue. Mike Cole, MD Visual Planet

A small, Suffolk based business that began manufacturing cleaning products in the early 1990s. The business owned several brands, the most successful of which was Buster.

Problem: Compete more effectively with large multi-national manufacturers

Response: Streamline its brands and re-brand its lead product range, Buster

Impact: Buster enjoyed an immediate 35% sales increase Five years on, the brand became market leader - and still is International roll-out started Other innovative, design-led products subsequently launched Challs bucked recession growing turnover by 30% in three years to 5.5m (2011) Staff numbers rose 20% to 51 over the same period Ten years on, the company now has a roster of design agencies with which it works

Graham 10 years on from working with us is driven by design, design led has a roster of design agency, judges on awards 48

The support we received from the Design Council gave us the confidence to apply the same thinking we use in product design to designing the business develping a concept, testing it with users, refining it and staying flexible enough to keep modifying it as the market develops Jane ni Dhulchaointigh, CEO, Sugru

Jane49