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Managing Up   Business Strategy and Information Architecture
About our firm The Management Innovation Group (MIG) is a research group and strategic consultancy. We are dedicated to improving our clients’ ability to identify, plan for, and adapt to strategic change by enabling them to more effectively collaborate across functional units, understand and engage their customers, and envision the future.  At the heart of our approach is a belief that design offers a rich set of tools useful not just for creating physical products, but as a means for clarifying intentions, understanding options, organizing processes, and motivating action.
Who do you want to be when you grow UP?
CEO?
“ We will never make progress as long we are resources and not leaders. Resources don't discuss the business plan, the marketing strategy. Resources don't help decide what the product or service will be in the first place. Resources are called in when the leaders think they are needed. They do their job and then get out of the way.” - Don Norman A quote
“ The  core competencies of design  facilitate specific and tangible ways of engaging with problems.  These competencies  bring new value  to the way in which business teams work.  To foster the broad application of design competence, designers will need to feel confident in  leaving the designer label behind  and accepting the label of business manager, strategist, or vice president.  Of course, this is no big leap for the best in any discipline; one will find engineers, accountants, and human resources professionals at the helms of organizations around the world.  However, at that point, they are  simply called leaders .  - Chris Conley, “Leveraging  Design’s Core Competencies”
Why bother? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What does it take to be a leader? ,[object Object],[object Object],[object Object],[object Object],[object Object],On Will… The most required aspects necessary to succeed as a CEO are: on, tenacity; two, perseverance; three, the ability to come back on your own behalf; four, the conviction you know you are right no matter what; and five, the commitment to make things happen Leonard Abramson CEO and President U.S. Healthcare From “How to think like a CEO” by D.A. Benton
Speak the language Or quit saying “people would take me seriously if I could prove my ROI”
Everything You Need to Know About ROI
The Dilemma of “Value”  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Everything You Need to Know About ROI (in one slide) ROI Return Investment This formula is NOT on the test:  NPV =Σ((Cash flow in t)/(1+i)t )
User Experience Return on Investment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Importance of User Behavior ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Why Traditional ROI is a Red Herring ,[object Object],[object Object],[object Object],[object Object],[object Object],How Valuation Methodology is Helpful ,[object Object],[object Object],[object Object],[object Object]
About Business Things you should know to have a conversation
The Five Questions  ,[object Object],[object Object],[object Object],[object Object],[object Object]
Profit and Loss
Investment vs. expense Location    Location    Location
The Market Stock Location Advertising Differentiation Diversifying Pricing
Got Metrics? Do you know what matters?
Web Experience Metrics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Return on Investment for Usable User-Interface Design , Aaron Marcus
User Experience Also Influences… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What market are you in? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Direct IA Metrics ,[object Object]
Karen Donoghue’s Framework   from  Built for Use 1. Convert browsers to customers and increase client base Prospective customer (i.e. Browser) 2. Increase retention rate 3. Deepen existing customer relationships 4. Increase productivity inside firm Existing Customer Existing Customer Employee inside of firm Relationship-establishing activity Relationship-retaining behavior Relationship-deepening activity Creation of usable data about profitable and cost-efficient transactions Researching firm, requesting information and follow-up Increasing frequency of engagement, level of membership Increase number of points of contact with customer Action based on understanding and analysis of transaction and data usage Business Goals User Online Experience Must Drive… Desired User Behaviors…
Parts of Design (arguably) Identity User  research Interface  design IA Interaction  Design Graphic  design design
Parts of Business (arguably) Innovation Management Strategy HR  Finance Accounting Operations Marketing Business
Clement says… IP Artifacts Strategy Design ROI Products Managing Envisioning How What
Moving value
The Origins of Strategy ,[object Object],[object Object]
Strategy ,[object Object],[object Object],[object Object],Michael Porter “What is Strategy”
[object Object],a unified, comprehensive and integrated plan designed to ensure that the basic objectives of the organization are achieved Strategic Planning is that set of decisions and actions which leads to the development of an effective strategy -- Colin Boyd, Professor of Management, University of Saskatchewan
Porter's Generic Strategies Niche Positioning Product Differentiation Cost Leadership It is probably easier to establish a niche position when the market is growing  = PRODUCT MANAGEMENT  + DESIGN SKILLS When the pie is growing, no one is fighting too hard for market share, and hence differentiation is possible in the growth stages of the life cycle   = MARKETING SKILLS  + DESIGN SKILLS A mature market means a fight for market share via price competition, which in turns puts all the attention on product costs  = MANUFACTURING SKILLS  + DESIGN SKILLS
IA– hard to copy
Know your value ,[object Object],[object Object],[object Object],[object Object],[object Object]
Exercise ,[object Object],[object Object],[object Object],[object Object],[object Object]
Three Stories on IA Value
The Sa les Argument ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Goal  ,[object Object],[object Object],[object Object],[object Object],[object Object]
Missing information is expensive ,[object Object],[object Object],[object Object],[object Object]
The Brand Argument
Branding in 10 seconds create fullfilled by Brian Collins’ Model of Brand brand promises brand experiences Brand managers
Brand and the User Experience Hugh Dubberly’s Model of Brand Creating a good customer experience is the essence of good branding
IA Realizes Brand
Product Quality = Brand Loyalty ,[object Object],[object Object]
Argument three: IA and Trust
Dewey Decimal System ,[object Object],[object Object],[object Object],[object Object]
Who Cares? ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
Frames ,[object Object],[object Object],[object Object],[object Object],[object Object],George Lakoff, author of “Don’t Think of an Elephant
Business reframes
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],“ While information structure is  often associated with  usability ,  the comments here show how information structure has implications for  credibility . Sites that were easy to navigate were seen as being more credible.”
Okay, I’m sold Now what?
Paths for Designers & IA’s Designer decides they want to move up Choose business (PM, Strategist, Analyst Chooses design Chooses Individual contributor Becomes General manager Chooses management Chooses entrepreneurship Solo Work Builds company Becomes CD Leaves for company with growth Becomes VP Switches to general management Becomes VP of BU Becomes SVP of BU Becomes CPO, or equiv Becomes CEO Chooses growth Chooses entrepreneurship Consulting Builds Start-up Sells to Yahoo for 25 mil Deep specialization
What does it take to manage?  ,[object Object],[object Object],[object Object]
Moving Up in Influence Manager New Employee Employee Director & Up Needs Help for everything Self-Sufficient, Contributes Individually Contributes via others Contributes via influencing organizations From “Novations” by Gene W. Dalton
“ Perhaps an MBA is not the best degree to lead a company to success afterall.” “ We need broad generalists to successfully run large, complex organizations.” - Richard Kovacevich, CEO Wells Fargo & Co.
Business Turns Its Eye Toward Design
Business Diagram from  Design of Business  by Roger Martin, U of Toronto
Trends: re-designing design We do not imagine the production of form to be the endpoint of design.  We look for something more difficult and tenuous: to engage as directly as possible   the environment within which design occurs . - Bruce Mau,  Life Style
[object Object],10% 90% 90% The paradigm “ ready, aim, fire ” no longer applies; it is now “ ready, fire, steer .”  Paul Saffo
We get there.. Eventually.
Quality is not (always) the point ,[object Object],[object Object],[object Object],Market Targeting Evalute the attractiveness of each segment Select the target segments Product Positioning Identify possible positioning concepts for each target segment Select, develop and communicate the selected positioning concept
The person who is in charge is me!
Seven Surprises for Design Managers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Also see Peter Druckers “ Seven Suprises for New CEOs”
CEO or CXO? (or cmo, cio, cpo)

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Managing Up

  • 1. Managing Up Business Strategy and Information Architecture
  • 2. About our firm The Management Innovation Group (MIG) is a research group and strategic consultancy. We are dedicated to improving our clients’ ability to identify, plan for, and adapt to strategic change by enabling them to more effectively collaborate across functional units, understand and engage their customers, and envision the future. At the heart of our approach is a belief that design offers a rich set of tools useful not just for creating physical products, but as a means for clarifying intentions, understanding options, organizing processes, and motivating action.
  • 3. Who do you want to be when you grow UP?
  • 5. “ We will never make progress as long we are resources and not leaders. Resources don't discuss the business plan, the marketing strategy. Resources don't help decide what the product or service will be in the first place. Resources are called in when the leaders think they are needed. They do their job and then get out of the way.” - Don Norman A quote
  • 6. “ The core competencies of design facilitate specific and tangible ways of engaging with problems. These competencies bring new value to the way in which business teams work. To foster the broad application of design competence, designers will need to feel confident in leaving the designer label behind and accepting the label of business manager, strategist, or vice president. Of course, this is no big leap for the best in any discipline; one will find engineers, accountants, and human resources professionals at the helms of organizations around the world. However, at that point, they are simply called leaders . - Chris Conley, “Leveraging Design’s Core Competencies”
  • 7.
  • 8.
  • 9. Speak the language Or quit saying “people would take me seriously if I could prove my ROI”
  • 10. Everything You Need to Know About ROI
  • 11.
  • 12. Everything You Need to Know About ROI (in one slide) ROI Return Investment This formula is NOT on the test: NPV =Σ((Cash flow in t)/(1+i)t )
  • 13.
  • 14.
  • 15.
  • 16. About Business Things you should know to have a conversation
  • 17.
  • 19. Investment vs. expense Location Location Location
  • 20. The Market Stock Location Advertising Differentiation Diversifying Pricing
  • 21. Got Metrics? Do you know what matters?
  • 22.
  • 23.
  • 24.
  • 25.
  • 26. Karen Donoghue’s Framework from Built for Use 1. Convert browsers to customers and increase client base Prospective customer (i.e. Browser) 2. Increase retention rate 3. Deepen existing customer relationships 4. Increase productivity inside firm Existing Customer Existing Customer Employee inside of firm Relationship-establishing activity Relationship-retaining behavior Relationship-deepening activity Creation of usable data about profitable and cost-efficient transactions Researching firm, requesting information and follow-up Increasing frequency of engagement, level of membership Increase number of points of contact with customer Action based on understanding and analysis of transaction and data usage Business Goals User Online Experience Must Drive… Desired User Behaviors…
  • 27. Parts of Design (arguably) Identity User research Interface design IA Interaction Design Graphic design design
  • 28. Parts of Business (arguably) Innovation Management Strategy HR Finance Accounting Operations Marketing Business
  • 29. Clement says… IP Artifacts Strategy Design ROI Products Managing Envisioning How What
  • 31.
  • 32.
  • 33.
  • 34. Porter's Generic Strategies Niche Positioning Product Differentiation Cost Leadership It is probably easier to establish a niche position when the market is growing = PRODUCT MANAGEMENT + DESIGN SKILLS When the pie is growing, no one is fighting too hard for market share, and hence differentiation is possible in the growth stages of the life cycle = MARKETING SKILLS + DESIGN SKILLS A mature market means a fight for market share via price competition, which in turns puts all the attention on product costs = MANUFACTURING SKILLS + DESIGN SKILLS
  • 36.
  • 37.
  • 38. Three Stories on IA Value
  • 39.
  • 40.
  • 41.
  • 42.
  • 43.
  • 44.
  • 46. Branding in 10 seconds create fullfilled by Brian Collins’ Model of Brand brand promises brand experiences Brand managers
  • 47. Brand and the User Experience Hugh Dubberly’s Model of Brand Creating a good customer experience is the essence of good branding
  • 49.
  • 50. Argument three: IA and Trust
  • 51.
  • 52.
  • 53.
  • 54.
  • 56.
  • 57. Okay, I’m sold Now what?
  • 58. Paths for Designers & IA’s Designer decides they want to move up Choose business (PM, Strategist, Analyst Chooses design Chooses Individual contributor Becomes General manager Chooses management Chooses entrepreneurship Solo Work Builds company Becomes CD Leaves for company with growth Becomes VP Switches to general management Becomes VP of BU Becomes SVP of BU Becomes CPO, or equiv Becomes CEO Chooses growth Chooses entrepreneurship Consulting Builds Start-up Sells to Yahoo for 25 mil Deep specialization
  • 59.
  • 60. Moving Up in Influence Manager New Employee Employee Director & Up Needs Help for everything Self-Sufficient, Contributes Individually Contributes via others Contributes via influencing organizations From “Novations” by Gene W. Dalton
  • 61. “ Perhaps an MBA is not the best degree to lead a company to success afterall.” “ We need broad generalists to successfully run large, complex organizations.” - Richard Kovacevich, CEO Wells Fargo & Co.
  • 62. Business Turns Its Eye Toward Design
  • 63. Business Diagram from Design of Business by Roger Martin, U of Toronto
  • 64. Trends: re-designing design We do not imagine the production of form to be the endpoint of design. We look for something more difficult and tenuous: to engage as directly as possible the environment within which design occurs . - Bruce Mau, Life Style
  • 65.
  • 66. We get there.. Eventually.
  • 67.
  • 68. The person who is in charge is me!
  • 69.
  • 70. CEO or CXO? (or cmo, cio, cpo)