Finding Our Way

Jesse James Garrett and Peter Merholz
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Jun 6, 2025 • 53min

59: Design Isn’t Dead, But It’s Seen Better Days (ft. John Gleason)

Show Notes Help Jesse and Peter better serve you by sharing a bit more about who you are, what you’re into, and what you’d like to hear from us in this listener survey which should just a few minutes to complete. Thank you! Summary: Peter and Jesse are joined by design and business consultant John Gleason. Coming up through P&G’s famous design initiative, we get his perspective on design beyond digital products, such as consumer packaged goods, we explore some significant parallels across industries and design domains with important lessons on the pitfalls that lead to diminishing influence for design leaders, and share what they should advocate in order to break the downward spiral. Help UX and Get a Chance to receive $100! Peter is conducting a global UX and Design Organizational Health survey to better understand the state of our practice and industry. 5 respondents will receive either a $100 gift card or 1 hr of consulting/coaching with Peter. It takes about 10 minutes to complete. Thank you! Transcript Jesse: I’m Jesse James Garrett, Peter: and I’m Peter Merholz. Jesse: And we’re finding our way, Peter: Navigating the opportunities Jesse: and challenges Peter: of design and design leadership, Jesse: On today’s show, is design dead? That’s the question strategy consultant John Gleason asked at a recent design conference panel. The ensuing discussion struck some familiar notes for digital product design leaders, but John Gleason doesn’t come from digital product design. Today, we’ll get his perspective on design beyond digital products, such as consumer packaged goods, the stuff you find on the shelves in grocery and drugstore. We’ll explore some significant parallels across industries and design domains with important lessons on the pitfalls that lead to diminishing influence for design leaders, what they should advocate for, and how to break the downward spiral. Peter: Hi John. Thank you for joining us. John: Delighted to be here, Peter. Thank you. Peter: So you and I met on the internet, specifically LinkedIn, around a discussion that was happening based on an article written in Fast Company that was explaining what this journalist had witnessed at a panel of design leaders that you helped moderate. And the title of the article had the provocative statement: Is Design Dead? So that’s how I’d like to start this conversation with you. Maybe we’re starting at the end, and then this can be a very brief conversation… John: What if I said the answer is yes, end of story? Peter: Then, then, then we wrap up the podcast. Jesse: Thanks everybody for listening. You can find us at findingourway.design. Peter: But seriously, I do want to ask, it is meant to be a provocative, obviously there were discussions happening on that panel and in that room that led to this question. So when you’re faced with a question is design dead, how do you respond? John: Well, we respond by creating a conference to talk about it. So my conference partners and I, David Butler, who was the first head of design at Coca-Cola and Fred Richards, who’s a long time ECD, CCO -type person in the brand design space at big agencies. The three of us came together just simply to talk about the industry itself. And as we compared notes, I have started to see that design is in decline, particularly in the consumer facing space, probably starting eight or nine years ago, kind of as evidenced by shrinking budgets and shrinking organizations and diminishing the reporting structure of design into leadership in those companies. And a lot of the people that I’ve talked to kind of chalk it up to, oh, well that’s the economy. Oh, we’re gonna cut budgets, it’s belt tightening, it’s these things. But I’ve had the chance to peek inside more than a hundred big corporations and a couple thousand design agencies. And so I see patterns that emerged. Jesse: Mm-hmm. John: And that led to the provocation of “Is design dead?” And I think we inherently knew that the answer was no, but I don’t think the rest of the room…so we had about a hundred people design leaders from various companies, mostly consumer facing corporations, but we had telecom, we had financial services, we had healthcare, we had core tech there in the room represented as well. I don’t think most of the people in the room saw the patterns because they only see what’s happening in their company, or the one or two companies they may have been a part of. And so there was certainly evidence, as we started to unfold some of the things, people were, “Oh, just thought that was belt tightening. I just thought that was seasonal. I just thought that was post pandemic economy.” That started the conversation. Jesse: So tell us a little bit about these design teams that you were studying and what was the change that you noticed over time? What was happening with these teams? John: So a, few things that I’ve had the chance to see. I’ve tracked about 200, almost 250 companies since about 2016, 2017. Jesse: Mm-hmm. John: And it’s things like, what agencies do they work with? Have they built in-house teams? What’s the reporting structure of the organizations? And some of the patterns that I’ve seen, Jesse, are 39% of those companies, so 95 companies of the 243, have cut the top one or two levels of their design function… Jesse: mm-hmm. John: … or they’ve downgraded the title to some lower title in the company, or they’ve downgraded the boss, the reporting title of the boss of those organizations. Conversely, only 6%, only 15 of those companies have done the opposite, have elevated design with a higher title or a higher reporting status in the company. 9% of them, 22 companies have eliminated more than half of their entire design function in a single year. Jesse: Wow. John: 84% of them, this one shouldn’t be a surprise to people. 84% of the design leaders or the heads of design reports to a specific function in the company… Jesse: hmm John: Marketing, innovation product. To me, the troubling part of that is 75% of them don’t report to the head of that function. Jesse: hmm. John: They report to somebody lower in that functional hierarchy, which again, to me, signals a deemphasis of design, as a more of a service organization than a beacon for the future. Almost half, 47% of these companies, the head of design is at a senior director or lower. Jesse: Hmm. John: They’re not even in the executive community inside of those companies, nor do they have a career opportunity to grow beyond that director, senior director, some are even senior manager. Jesse: That’s as far as the design ladder reaches in those organizations. John: Right, right. Yeah. Jesse: So I find myself curious about the mandates of these teams and what these teams are being asked to deliver, and whether those mandates are shrinking as the teams scale down and move downstream as you’re describing in these very large organizations. So what kind of design are we talking about here? John: They certainly are diminishing in the scope of influence inside of those companies. So many of them, the design organization in a lot of consumer goods companies is really a packaging function. And it ends up being a decoration function for packaging. Jesse: Okay. John: In some cases, they might be able to influence a better consumer experience, but, in many cases, especially in the, present economic circumstance, it’s cost cut, diminished, streamlined. Jesse: Right. We’re basically talking about boxes and bottles on retail shelves. John: Yeah. Yeah. And, there are some where design sits in an R and D or innovation organization… Jesse: mm-hmm. John: … where design influences, again, the structural component of packaging. Occasionally they’ll influence the juice and the powders and the things that are inside the boxes and bottles. But mostly more powerful R and D organization says, Hey, design, we’ve got that. We’ll take care of that. Jesse: Right. John: And they tend to be looking at very narrow components inside the company. The other interesting thing, particularly as it relates to a more digital component, is many of these companies have assigned a chief digital officer in charge of the digital transformation and digital pathway for those big companies, building their own design teams, largely UX, UI and some development, although development tends to be outsourced and offshored. And they’re not connected to the other design capabilities inside the company. Jesse: Right. Yeah. John: And in fact they sometimes compete. I did some consulting work for a couple of companies where there was somewhat of a bitter, antagonistic relationship between the head of design and the head of digital. Jesse: Yeah. Well this is, I laugh because this is a regular pattern that we saw in our consulting work going back 20 years. That if the digital product design team was more closely aligned with digital than with design, sometimes that created a conflict and that created friction internally in terms of how things got done. I’m curious about the evolution that you’ve seen in these mandates. So in what ways have these design teams had to refocus their efforts as they’ve scaled down? John: I spent 20 years at Procter and Gamble. I was a part of the very earliest portions of P and G’s journey to elevate design. Jesse: Hmm. John: When I joined the design function, there were 60 people in the design function at P and G. When I left, about five years later, there were 350. It was all around strategic design, leadership, the head of design, Claudia Kotchka at the time, and the CEO AG Lafley had a vision for design. So, why I believe design is in decline is most of the design responsibilities that I see today are nowhere close to what I experienced at P and G. Peter: Hmm. Jesse: Hmm John: That’s the decline part, but you know, there are one or two work generations that have come in and out of the workforce since the early two thousands. I’m often brought into corporate organizations either by the head of design who wants to try to figure out how to articulate up to the C-suite about how design is more important, how it should be invited earlier, how it should be organized and not just touching an artifact, you know, a package or a website or a banner or something, but influence the entire enterprise. Jesse: Mm-hmm. John: The C-suite often has no clue what design would do with the rest of the enterprise other than the thing that they had been doing… Jesse: mm-hmm. John: … in the company. And so there’s often that disconnect. Jesse: right John: One of the things that I often see, first of all, there is no school largely for design leaders to step in and talk business. Jesse: Right. John: Very, very few programs. IIT does a nice job. SCAD is beginning to do things like that by building a business innovation component. But largely it’s teaching the tools of the industry. So when somebody lands in one of these important jobs, they speak the language that they know, whatever it is: UX, UI, digital, color theory, communication theory, whatever those things are. And the thing that I have seen is, when they are under duress, when the business pressures start to pile up, most design leaders recess back into becoming uber project managers for the design activities, rather than leaning into the organizational component of influencing structure in humans and leadership. Jesse: Mm-hmm. John: If it gets to that, it begins to spiral. And within two years, that person is often gone because they’re micromanaging their team, and they’re trying to deliver great outputs, but not really influencing… Jesse: Right. John: …where design can influence. Design has a superpower of seeing things that other people can’t see, but often can’t articulate that in the context of the business language. Jesse: It almost suggests that, there’s, like, this gravitational force that pulls leaders down toward this sort of operational value proposition, as opposed to a more strategic value proposition for design as a function, for themselves as leaders, that takes active, ongoing energy to resist for leaders, yeah? John: One of the things I observed at P and G was when design was added as this new strategic capability for the company at the request of the CEO AG Lafley, the other functions felt like they had to defend themselves against design taking the fun stuff away from them. And part of it was, it isn’t trying to take things away. There was a component of let’s make sure the right people are with the right skills, are working on the right things at the right time. The influence of design was intended to try to make everything else better. Jesse: Mm-hmm. John: The ability to step back and really advocate for the user, in our case, the consumer. You know, P&G was pretty well known for consumer research and brand management and marketing, a lot of other things. So the idea that design could step in and knew better than these things that have been in place for 50 or a hundred years, some people kind of took it personally. I earn a lot of enemies in the design space when I say this. I say if a company really wants to elevate design in a truly strategic way for the entire enterprise, it’s my opinion, the first head of design probably should not be somebody with a portfolio. Jesse: Hmm. Who should they be instead? John: It should be somebody that might have come out of the business, might have been a marketer, might have been an innovator, might have been a strategist, but has a high IQ for design because those people know how to have the battles with other people with more stripes. They know how to, play the political game. They know how to influence. And I’m gonna be horrendously unfair and I’m probably gonna get a lot of mail from your listeners. Designers index introvert. Jesse: Mm-hmm. Peter: Yeah. You’re not gonna get any pushback on that. John: Which means I don’t want conflict. I’m gonna run away from conflict and I’m not gonna address it. Whereas Claudia was an accountant by education and a marketer by training. And she had no fear walking into people that had more stripes than her to say, you’re not doing it right. I mean, she threatened a few business unit presidents to say, I’m taking your whole design team because you haven’t treated them well. You don’t respect them, and they all wanna quit, so I’m gonna take them. And of course, you can’t do that. And, you know, then the tete-a-tete occurred, and those are extreme examples, but part of this is, unless a business leader, whatever function you’re in, and I’ll highlight design in particular, unless you’re willing to fall on the sword for some things… Jesse: mm. John: … then, you can expect that the pressures of the business environment and the politics has the risk of crumbling your status in the enterprise. Peter: A couple of thoughts. The first, it’s interesting to hear you say that about that idea of your first head of design not necessarily being someone who came up through the practice. It sounds like Claudia was like that. Jesse and I have had that experience, him more directly than I, with the head of design at Capital One, which was the company that acquired Adaptive Path, was Scott Zimmer, who… his background was in brand and marketing. But he was design mature. He understood the opportunity that design delivered, and this was, you know, over a decade ago, better than almost any design executive I ever met, he knew how to communicate up. He knew how to get senior leadership excited about what designers could do in a way that designers often struggle articulating their own value. So I’ve seen that. I wanna go back though to the design in decline conversation. ‘Cause in order to decline it had to have risen… John: yep. Peter: …before then. And you explain the P and G story where a very savvy CEO invests in this function, makes it strategic. Like AG Lafley clearly had a plan. With Claudia had a kind of lieutenant who could realize that plan. But that’s likely an outlier, Right. Whereas in these other organizations where design was elevated, I’m curious what you see. ‘Cause you know, you’re, coming at us from a consumer packaged goods, maybe more in the advertising, marketing side compared to where Jesse and I live. But my concern for those design leaders who were elevated is that they had not been set up for success by their leadership. Their leadership didn’t know what they were doing, elevating them into those roles. Say we’ve taken a director or senior director of packaging design, we promoted that person into a VP role that had broader design mandate. But this person with a packaging design background knows packaging design. They don’t understand design for innovation, design for new product experience, all of those things. Maybe they tried, maybe they didn’t, doesn’t matter. But at some point, like, because this person hadn’t been set up for success, it would almost be inevitable that there would be a decline, regardless of broader economic conditions. I’m seeing you nod your head. So I’m curious how this could have been handled better by everybody, you know 10 to 15 years ago instead of like, oh, you have a title with the word design in it, so we’re gonna give you more authority, but we’re not gonna necessarily understand the implications of what it means for you to be an executive. We’re just gonna all of a sudden give you that title. it just feels like, this was bound to happen. John: You’re exactly right that it is in fact bound to happen because the vast majority of the companies that I’ve worked with and or studied, where the company chose to make a deliberate attempt to elevate design with a higher title, a new person that they perhaps brought from outside. The first observation I’ve made is most of the senior leaders, the C-suite leaders in those companies they don’t think somebody at a VP, SVP, EVP or Chief title needs to have somebody around them to protect them. Jesse: Mm. John: No other chief or SVP in the company, you know, they’re navigating the politics themselves. The head of R&D, the head of finance, the head of marketing. The most successful of those, where it was elevated, Proctor is one where AG Lafley was, in essence, the protector for Claudia. When Indra Nooyi at PepsiCo, she also was the inventor that design was gonna make a difference at PepsiCo. First elevated somebody internally. Didn’t work so well. There was a big packaging fiasco with Tropicana. But, I give her a lot of credit by not walking away from it after that fiasco and she continued to lean into it. Ultimately hired Mauro Porcini. Peter: Mm. John: David Butler, when he was brought into Coke, there was an influencer behind him that planted the seed that design could be more strategic. Mark Mathieu, who went on to Unilever, then Samsung but in those organizations there were people that were aligned with and connected to those people to help provide some business interference. Jesse: Mm-hmm. John: And in those organizations, they had a longer run and a more strategic run for design. Where the newly appointed head of design steps in, I’ve seen 10 or 15 of these where they were promised access to the CEO and the CMO but that access turned into, oh, I need to prepare three weeks ahead of time and send the deck one week ahead of time in order to have a meeting with the CEO. Whereas the example, and again, I’m super spoiled by this AG Lafley role model. Claudia had a design board on which Ivy Ross was on the board at the time. She was at the Gap or Old Navy. She’s now at Google. Tim Brown was on that board. AG never missed a board meeting. So the relationship that design had with the CEO at P and G was a casual one. Jesse: Right. John: It wasn’t surrounded by formalities and PowerPoint decks and, you know, six weeks lead time. McKinsey did an amazing study on the business value of design in 2018. DMI did something where they created a design value index with 16 or 18 companies, although I think they cherry picked 16 companies that were performing well so that they could track the commercial value. The UK Design Council did it before DMI and then my own observations, I’ve kind of developed this notion of six attributes of what I call design engaged companies, one of which is advocacy. That the senior most people in the company see that design is a critical component of the company and they support it appropriately. There’s access, there’s meetings, there’s, you know, public recognition you know, titles and all those other things that come with advocacy. But it’s just not the two humans. It’s just not a CEO and the head of design. it’s advocating that design needs to touch other parts of the company. Jesse: Mm. John: You know, when I step into a C-suite conversation, I often say, so, you know, how does design play a role in your company? Oh, you know, packaging or product or innovation. and I often touch on things, well, do you have any design talent looking after employee engagement, trying to create a place that more and more people have a passion for wanting to work here? Oh, well, that’s our HR organization. It’s like, you know, with all due respect to the talented human resources people, most of human resources is built to protect the corporation. Peter: Right. Jesse: Indeed. Yeah. John: … to inspire more loyalty to the enterprise. Jesse: So I find myself curious about this notion that there’s a skillset that is needed in order to really drive design at this executive level, that these design leaders have not been able to cultivate within themselves. I work as a coach with lots of design leaders at different stages in this process. And for some folks, they get to that executive level and they realize that like, oh, everything that I’ve learned up to this point is almost completely irrelevant now. John: Right. Jesse: And so I’m curious about like, what are the corners that you’ve seen leaders have to turn as they kind of ascend out of simply overseeing design as a function to actually being an active participant in executive level leadership? John: Well, design leaders recognize that virtually everything they do is part of a team sport. Jesse: Hmm. John: And, it inhibits their ability to articulate what it is we’ve contributed to the enterprise… Jesse: mm-hmm. John: … because it involves so many other people to get a product to market or to create a new experience or whatever those things are. And in most cases, rather than trying to step up and say, we had this impact, they often acquiesce and say nothing. Jesse: Mm. John: And so somebody else often steps in, you know, the ad agency is notorious for stepping in to say, Hey, we, completely repositioned this brand and we did this. We created new experiences, but it was the ad campaign that helped drive a 40% lift in sales. And part of it is, he or she who has data, has power. And design, there’s so much that design does that isn’t measured by data. And so it’s super hard… Jesse: yeah. John: … and to me one of the abilities is, how do I talk about impact? It doesn’t have to be a mathematical calculation or effectiveness. And then the other is, creating a vision. As much as one of design’s superpowers, in my opinion, is creating the future for a product or service or experience. We do a terrible job doing it for ourself and our own organization and how we’re gonna fit in, in an organizational context. Jesse: Mm-hmm. Peter: Yeah. In my coaching and in my masterclass I stress the importance of, I call it having an agenda, just because the word vision can mean multiple things. And so I call it having an agenda, and it’s something that so many design leaders, yeah, lack, like, they don’t realize they need to have their own point of view. Jesse: Point of view, right. Peter: Their own perspective, their own change that they seek, or if they don’t, they end up just getting in a reactive mode. They end up simply responding to whatever’s coming at them because there’s nothing that they’re trying to drive. One of the reasons Jesse and I were interested in having you join us is your background is consumer packaged goods, P and G, more on the marketing, brand, quote unquote consumer side. Our experience is more on the digital side. And I think it’s interesting to consider what’s different, what’s the same. Something that you’ve been touching on, A designer’s and design leader’s ability to connect their work with value and feeling like they need to have every link in the chain specified or they can’t commit to any ownership of it. But I think related to that, you’ve touched on this, but I’m curious what you see in your world, Jesse and I have talked a lot about the primary value of design is in facilitating or multiplying other functions’ ability to succeed as opposed to design delivering direct value. Jesse: Yeah. Peter: You’re nodding your head. So it sounds like you’ve seen something similar, but how do you counsel those leaders to navigate that conversation when their leadership is like, well, what has design done for me lately, and design can’t say I shipped this thing. ‘Cause they didn’t, but they worked with these groups, and through that work, they helped those groups improve what it is they’re doing. What is your approach to telling those stories better? John: I think you’ve struck a nerve on one of the big opportunities for design, because design often is a curious source of questions. What if, how might we, did we look into that,who said that? You know, who are we trying to reach for what purpose? And the business is about, let’s go, I don’t have time for these questions. You know, we gotta get something out the door. And especially in tough economic circumstances, the planning horizon becomes this quarter, next quarter, which isn’t a boundary space that design is very good at. Design is much better… they want to talk about the future of the brand, the consumer, the experience. And somebody at the conference used this rubric of the now, the near, and the far. Design tends to want to talk about the far. The capacity of the business leaders and the business, especially, the more dire the circumstance, the more they want to talk about the now. Jesse: Right. John: And so a CEO might only have capacity for 1% of their time on the far, even though that should be a part of what he or she is really thinking about for the corporation. But design wants to spend their time beyond the near and into the far, and so there’s, a misalignment of planning horizons. Jesse: Well, it’s a tricky place that design leaders find themselves in, too, because I think that often they feel like they are like standing on the dock with a stack of life preservers, watching these executives flail in the water, going, “Hey, I can, I can throw you this thing at any time. And you’ll be good.” And they’re like, “No, no. Focus on your current work.” Right? And so like, how do, how do you strike that balance of actually activating the real value proposition of design as a function, actually, you know, maybe rescuing some of these C-levels out of the water before they drown, while also making them feel like they’re getting what they want from you. John: Well, let me, continue your metaphor of the executives flailing in the bay. Jesse: Mm-hmm. John: When an an executive is in that circumstance, who are the likely people or the likely functions they are likely to go to first… Jesse: mm-hmm. John: … in the attempt of trying to save the ship or save themselves? Design is often the last one, Peter: They will go to marketing, they’ll go to sales, they’ll go to whomever. Yeah. John: They’ll go finance, they’ll go to supply chain, they’ll go to regulatory, you know, depending on the business and where the stress is. and that’s where I think design needs to learn how to lean in to show that they’re a business solver, not a creator of an artifact… Jesse: mm-hmm. John: …you know, code or a device or something. One of the best examples, and I use this example all over the place, is Logitech. Bracken Darrell, the former CEO hires Alistair Curtis. And everywhere Bracken went internally and externally, he said, I hired Alistair to help create Logitech 3.0. And so advocacy. Bracken set the vision for Alistair, and much of that continues now under Haneke Faber and Molin. Peter: Hmm. John: And, to me, part of it is, how do you empower the design lead so that the rest of the business expects you to be invited to the important business stuff. Jesse: Right. John: And in fact, lead some of the important business stuff. If the senior most people continue to see design as a creator of artifacts and implementer of execution, then it’s super hard for that person leading that function to elevate beyond. Peter: Well, this begs a question that I have been asked for 25 years, So we know that design seems to need executive sponsors. You’ve stated that your research has shown it, in a way that other functions don’t need executive sponsors, right? You mentioned that advocacy role is one of your six indicators of a kind of a design mature, design ready environment. That begs a question, how do you realize that executive sponsorship, someone like Bracken, someone like AG Lafley, someone like Ginny Rometti at IBM, someone like Carl Bass at Autodesk, these CEOs knew that design could help solve their problems, so they didn’t need anyone to educate or evangelize. Jesse and I, and I’m sure you do as well, but Jesse and I, the vast majority of the design leaders we talk to or work with, their leadership are not advocates. They might not be hostile… Jesse: yeah. Peter: … right? They might be even curious, but they’re not advocates. And so the challenge that, so many design leaders face is how do they turn those executives into advocates? Can you even do that, right? There’s some commentary over the last 15 or so years that, like, if an executive doesn’t get it, there’s very little you can do to help them get it. Like, it’s not like it’s a hidden mystery. It’s not that no one knows that design can help business. McKinsey’s written about it. HBR has written about it. Roger Martin wrote about it like AG Lafley proved it through the P and G success. And so is it a fool’s errand to try to convince or persuade that executive to advocate for you? Or is that worthwhile? And if it is, what have you seen, at least in the organizations that you’re looking at, that starts turning that tide so that executives who may have been, again, not hostile– if they’re against design, there’s almost nothing you can do–but, are you aware of mechanisms that, have helped turn that corner. John: There are some things that I’ve seen. There are some things I recommend. One of the underlying reasons that I believe design is being dismantled and diminishing, is what I call C-Suite ignorance. Part of that is there are new C-suite members being minted every week. Many of them have never been exposed to the idea that design could be anything but… Jesse: right. John: …a decoration station. So they just don’t know. And, the other reality that often occurs is the genetic makeup of people that reach C-suite status or senior executive status, they get to a point where they can no longer admit they don’t know something. So they can’t admit that they don’t know that design is or isn’t something. So they lean in to whatever they believe or perceive or have experienced design to be in their past. Jesse: Yeah. John: I mentioned earlier that I’m often hired by heads of design trying to articulate up. The other group that hires me are the C-Suite people who want a discreet advisor who’s gonna whisper in their ear about, tell me the things I should know about design. Jesse: Mm-hmm. John: They’re not gonna publicize broadly that they don’t know, then, and, you know, they ask me to be discreet about the relationship. And it’s a Cyrano de Bergerac kind of thing. I try to tell them what they ought to know, and how they ought to play that out to their organization. And some of it is just purely an exploration. Why should I care? I keep reading that design is something I should know about, you know, why don’t I know more about it? Why isn’t it more prevalent? And I think part of it is, nobody questions the existence of a chief marketing officer. No one questions the existence of a chief financial officer. But design is a confusing word. It’s a confusing concept. It’s a noun, it’s a verb, it’s an outcome. It’s an organization. And most people in the business context see it as the participation or creation of an artifact, not necessarily a way of thinking or a mindset so to your question, Peter, small wins is a big successful pathway. But oftentimes, if you read marketing publications, the typical CMO has an 18 to 22 month time window of their credibility and existence in a company. Jesse: Mm-hmm. Right. Peter: That’s it. Not even two years. Jesse: Yeah. John: Not even two years. So they’re not looking at things that are gonna be three years from now. They need to go prove and deliver now… Jesse: mm-hmm. John: … which again impacts the ability for design to help influence and be a partner in that, delivery. Something we did at P and G, Claudia Kotchka, in the very early stages, brought in IDEO to run a hands-on work session for the top 50 executives in the company. And it was very much a hands-on exercise, that had nothing to do with P&G products, but more about how do you rethink and re-see, and how do you stay focused on the user and the consumer, and how do you build better experiences? It was a half day workshop and, you know, imagine 50 high performing type A’s sitting in a room being led through a workshop, but there were varying degrees of impatience, I would imagine. But a part of it was, then they translated it to a business opportunity for each of the businesses that were in the room. So, okay, we did this generic thing altogether. Here’s how we do this. Focus on the consumer, how might you create something. Now, and they literally handed things out to say, we’ve looked into most of your other businesses, and here are some things that could be, as we look at consumer behavior, things you might be interested in looking at. Now it probably was a great commercial for IDEO, too, inside of this group to say we’ve already thought about some opportunities. But, the economic circumstances were more positive. They weren’t belt tightening times like they are now or 2009. Capital was very cheap to acquire. So there were circumstances that I think accelerated our ability to do things like that. Jesse: Right. I feel like all of this connects to a question that I often ask my leadership coaching clients when they are stepping into a role for the first time, which is, what are you inheriting? And yes, you’re inheriting a team and you’re, yes, you’re inheriting a product and you’re, yes, you’re inheriting a legacy, but you’re also inheriting a whole bunch of expectations. Expectations that maybe were set by the leader before you, maybe were set by leaders that these executives, to your point, had other exposure to, that may have nothing to do with what you think the value proposition of you and your team and design as a function actually is. And so it then becomes this game of resetting expectations, and in a lot of ways listening. Just simply listening for what these executives think you’re there to provide and figuring out how to start to lay out the stones on the path that will take them to the value proposition that you actually feel like your team has to offer. But that’s a time consuming process. It is not something that happens overnight. And to your point, in a lot of these cases, 21 months is the horizon. So how do you balance those things? John: I think you touched on something really important, Jesse, is the idea of, a design leader that might be interviewing for a gig inside of a company, are they asking the right questions about what does it look like today… Jesse: mm-hmm. John: …because one of the things that I’ve seen is most internal talent acquisition teams inside of companies have no clue how to hire for this role or even for the whole function. Jesse: Mm-hmm. John: They think they need a portfolio, they think they need, you know, these things. And if they’re not getting help from a recruiter who knows this space, especially for a critically important role like the head of design or a VP of design. One of the things that I coach the design leaders is, every meeting you have with your colleagues and counterparts in the company, you should be planting the “what if” seed somewhere in the organization to say, What if it looked different? What if it could be here? It’s a super inexpensive way to try to get them to bite, you know, to lean in and say, you know, why would you say that that’s something we should look at? Then you can lean in with consumer data, or you can lean in with trend data, or you can lean in with economic circumstances. The other thing that I advise every design leader I coach with is, put a gigantic bogey in the ears and the minds of your senior leaders. You know, hey, I think I could help get us a billion dollars of incremental revenue if, you know, and then lay out, have your hostage list there. I need a team of this size. I need budgets. I need, you know, advice, I need your advocacy. I need these things, but I think I could help lead us toward an incremental billion dollars in revenue. And, almost none of them actually do it because they’re scared to death to be accountable for a number that they don’t have full responsibility of, How do you go deliver it? Jesse: The big, hairy, audacious goal. John: Yeah, exactly. Part of it, Jesse, to your question, keep planting seeds, keep leaning in, keep pushing, keep challenging, keep questioning, so that the business eventually sees… One of the things I often see, especially in consumer goods, is the business leader saying, we don’t have the time and we don’t have the budget to go do that ethnography study. Jesse: Right. John: We already know what we need to know about the consumer. And, here’s the idea that we’re gonna launch. And oftentimes it’s not a bad idea, but it’s not gonna be the disruptive category-changing domain-creating idea. It’s gonna be a conservative… in most cases, consumer goods companies are notorious for calling flavored line extensions, a massive new innovation. Jesse: Hmm. John: And it’s like, I don’t think the consumer thinks cinnamon is particularly innovative. Peter: The time dimension’s an interesting one. And I had a realization as you were talking about the 21 months, as you’re talking about how design often succeeds when it’s able to look far, and the results of truly impactful design take more than 21 months to be realized. But on the flip side, what I also see with design leaders is an impatience that things aren’t as they should be now. Like, they know what that change should be. They know we should be doing more ethnographic interviews. They know we should be running projects in this different way. They have a sense of, it’s evident how this should be all operating, why aren’t we just doing it that way? And so in some areas there’s this impatience that gets in their own way. You know, you’re talking about every conversation, move things a little bit, a little bit, a little bit. Design leaders are like, why? We know what we should be doing. Why aren’t we just doing the thing? And so I’m curious your thoughts on squaring that designerly impatience and frustration that we’re not doing the thing that is evidently the right thing to do now, with this kind of two- to three- or however many -year time horizon for design to actually be realizing an impact and what you see in your world. John: Well, if I use the concept of A/B testing Peter: Sure. John: out of the UX/UI space… Jesse: hm. John: … if a courageous, and maybe insane, design leader would say, okay, we’ll do it your way and not do this research, but I’m gonna secretly go figure out a way to get the funding to go do the research and I’m gonna create a parallel project and then compare the outcomes of what it is that is created, or envisioned, from it, to begin to show the business. Because the astonishing thing that I see from more and more big consumer goods companies is they spend a lot of time doing what I call the CYA research. “I’m gonna do a test of the package just before I launch it. Not to say we’re gonna kill the project or change the project, but I just wanna make sure I don’t get fired if it goes south.” Whereas if they just spent half that money on the upfront curiosity side, the impatience of the business to go deliver something this quarter, next quarter, now, doesn’t provide the ability for design to go do the alternative explorations. Which is why, the safe flavored line extension and those things become kind of the standard fare of consumer goods companies, and not terribly different than the software digital space where, you know, I’m gonna do a live A/B test. And the user of this travel website’s not gonna know that this set of people are gonna have these buttons in this place and this set are gonna have this button. But part of that gets to, how do you truly affect change? And I, think there needs to be a, if we do it this way, here’s the outcome, here’s the likely outcome. If we do it this way, it can be a bigger payout. The challenge is, if I’m a marketing director or a CMO, am I really gonna fund something that isn’t gonna launch for three years? Jesse: Mm-hmm. John: It might cost me $5 million between now and then to launch it and have no results and it could die along the way. Or am I safer delivering that line extension that is good. It, you know, it’s gonna, it’s gonna drive something… Peter: 10% improvement is better than zero. John: Correct. Jesse: You mentioned affecting change and change is something that we talk a lot about over here on the digital side and design’s responsibility for and toward change, and I’m curious about your point of view on design and its relationship to change. John: I believe design should be a catalyst for change. I believe that design should be an arbiter of culture inside of companies. One of the other of the six attributes I talk about is, Is the enterprise people-centered? Because one of the things I often see is most designers and, even UXers talk about being centered around the user… Jesse: mm-hmm. John: …and having an empathy for the people that are gonna buy my product, use my product, you know, use my service, experience the thing I’m creating. But then they say, oh man, but John over in supply chain, that guy’s a jerk. He’s a barrier to me. He’s always getting in the way. So the idea of empathy only seems to apply to the work you’re doing for the thing you’re creating. Peter: Right. Yep. Jesse: Right, right. Right. John: One of the big opportunities for design is having empathy for the senior most leaders in the company. Do I understand the pressure they’re under, and what they have to deliver? As opposed to feeling like they don’t understand me and they’re just laying unreasonable mandates on me. So a part of it is, this idea of change, this idea of culture, I think a lot of designers, when they’re creating that vision for the future and, potentially that next big thing, they’re not really thinking about what has to change to drive it. Jesse: Yeah, yeah, absolutely. It puts the design leader in such an interesting place too, because especially if you’re fortunate enough to be at an executive level, at a C level or a VP level, when you’re closely engaged with a larger executive team around the executive level decisions that drive an organization, it can often feel like your job is to create alignment, right? Your job is to align and be aligned, and find the alignment somehow in the room to create the harmony and the unity across the executive team, to genuinely deliver on a strategy for the organization. But if your mandate is to be the one person in the room who is like, ” Hmm. The way that we’re doing things is not good enough,” your strategy needs something more. It can feel like it really puts you in an awkward position, right? As an executive level leader, how do these leaders deal with that? John: Using the life raft example of the executives flailing in the harbor: is design the voice in that room that people are gonna listen to and believe? Jesse: Right, right, right, right. John: When they say something has to change. Jesse: Mm-hmm. John: You know, there’s a gentleman that I count as a friend in the design industry, Chuck Jones, who is a multiple-time chief design officer. And he’s very candid about the things that design doesn’t do very well, but he’s also very candid about, you know, when you walk into that new job as the head of design, you need to walk in with a point of view and a vision. And he told a story at the conference where he walked into one of his roles and he said, within some short period of time, four, six weeks, he said, I think I’m reporting to the wrong place. Jesse: Mm. Mm-hmm. John: And he made the case to say, this is the outcome if design continues to report as current, here’s the opportunity by changing it. And of course he had to have a few other meetings with important people to go make that change. The challenge is, if you can state the need for the change in the context of the business, not, not just an opinion, critically helps your case. If you can bring a champion or an advocate along with you, ideally a peer that’s in another function, Jesse: Yeah. John: ” Hey, I agree because this needs to change.” Otherwise people are gonna take the path of least resistance. I mean, human nature is to avoid conflict, avoid change, complain about change, especially if it’s difficult. It’s like the old adage. Practice how you play. And if you can’t practice in difficult circumstances when it’s game time, you’re not gonna play in them. Jesse: Right, right. Peter: So Jesse and I, and it sounds like you as well, John, think about this idea of design as an organizational function. it provides clarity into the real role of design. Not to make things, not to artifact, whatever, but, like, it is a function that engages in a set of activities to realize some value to the business. The challenge is design, as the three of us would like it to be understood, conflicts with the quarterly culture, quarterly requirements, needing to report to Wall Street, all the things we’ve been saying, right? That quarterly mindset that so many companies embrace constricts design, so that it’s no longer design, it’s basically production. Someone else has told you what to do and you’re executing on it. That makes me wonder, is that true of other functions as well, or are other functions perfectly happy operating in a quarterly mode, and design is different? And, I think it very well could be. But then, in that quarterly culture, things become more acute depending on the health of that business. And so the next thought is, is design only available as a kind of luxury function for those businesses that have already realized some success and some stability and don’t have to be as quarterly minded, and can have a longer term point of view? Are they the only organizations that are really able to embrace design, ’cause they’re the ones who can allow design the space it needs to succeed. But then that kind of conflicts with, again, what the three of us know that design could be doing to help struggling companies, right? Like it’s a set of tools that can be useful in a lot of different contexts. The interesting story is how can design help a company that’s struggling, succeed? But those companies aren’t willing to spend the time to allow design to have that change. So the only companies that are really embracing design as fully as they could are those that were probably doing okay already. Jesse: You need to be successful to have design, and you need to have design to be successful. John: Well, you’ve got it, podcast over. Thank you, Pete. Thank you, Jesse. Peter: As someone who’s, you know, more of a business background than Jesse or I, operating perhaps at an altitude or with a set of companies that are different than the ones that Jesse and I, more traditional organizations say, how do we change the conversation then, so that design is not simply seen as a luxury? Jesse: Where is the traction for design leaders within this context? John: One of the interesting corollaries to what you laid out, Peter, is a design community inside a corporation, if they can create a cadence of a longer term pipeline, then it makes it easier to accelerate things inside the quarterly dynamic. Jesse: Mm-hmm. John: So, if I do have the luxury of having a very small portion of my portfolio that’s a five or 10 year lighthouse project to say, you know, where could this company go in the future and have a, you know, a slightly larger one that’s five years and a slightly larger one that’s three. And then the majority of the things we’re working on are inside of two years, then it becomes, you can play to the acceleration needs of the business to play the quarterly game. The challenge is there isn’t often appetite at the C level to suddenly create that pipeline if it didn’t exist.. Jesse: Mm-hmm. John: …before and the monthly, quarterly, you know, this quarter, this year, kind of dynamic. If that becomes the exclusive of the portfolio I’m working on, you can almost never get to that longer term. ‘Cause somebody above you has to approve the budget and the time and the resources to focus on this thing. I’ve taught a four-day design thinking class in an MBA program in a university. And I bring a brand partner in. I get the students into a consumer’s home based on the product. And the dynamic when I’m selling this to potential brand partners, the way I sell it is, I want the project that you think is important, but you haven’t been able to fund it for the last three years. The company hasn’t seen it important enough to put official funding behind it. And I’m gonna show you how design thinking can help you accelerate an opportunity. And of course, they’re, you know, what can you do in four days and, you know, all these other things. We show them that, hey, two consumer visits can be better than none. And two consumer visits can be better than all of the quantitative survey data that you might collect that isn’t watching a human do something or not do something. Jesse: Right. So, you know, I feel like there’s a lot within the stories that you’ve shared with us and the research that you’ve done that suggests diminishing opportunity for design and for design leaders, in a lot of ways, and increasing obstacles. And I find myself wondering, where is the bright spark within all of this, and where is the opportunity that maybe design leaders ought to be giving more attention to right now? John: Coming out of the conference event that we held, we had three kind of principles that founded. The first was the question, Is design dead? The second was, you’re not alone and you don’t have to do this alone. The third was, “so what.” We wanted to have a “so what” component to every session. You don’t have to do it alone is an observation that I’ve had, and no doubt you all have seen it as you’ve poked into different companies and met with a myriad of leaders. Everybody thinks they’re fighting a historically unique battle because they don’t get out and talk to their peers. As a result, they end up fighting it themselves without a roadmap. And almost everybody that attended the conference used the term therapy. This was great. I realized I’m not alone. But then the, “so what” thing kicked in? And we said, okay, so what are we gonna do about this? And so I do think that letting people learn from each other, not just from people like the two of you and I that might drop in for a period of time, and then we drop out, and get people comfortable with: What have you done? What have you tried? And use the massive community of design as a way of trying to help revive and resuscitate the opportunity to carry it forward. I’ve got a great deal of passion for trying to see design change the trajectory and try to help drive that. And I do think that we need more examples of where design created an unexpected outcome. Jesse: Fantastic. I love that vision. I love the call to design leaders to be those examples and provide those examples that inspire the community. John Gleason, thank you so much for being with us. John: Jesse, Peter, thank you so much for the invitation. A amazing conversation, and obviously we could talk for three or four more days. Jesse: Yeah, absolutely. Peter: Yes. Thank you so much. Jesse: Where can people find you on the internet if they want to track you down and learn more about what you’re up to? John: Well, my LinkedIn profile is there to find me or John at GetaBetterView.com. Jesse: Fantastic. John, thank you so much. John: I enjoyed this. Thank you. Jesse: For more Finding Our Way, visit findingourway.design for past episodes and transcripts. You can now follow Finding Our Way on LinkedIn as well. For more about your hosts, visit our websites, petermerholz.com and jessejamesgarrett.com. If you’re curious about working with me as your coach, book your free introductory session at JesseJamesGarrett.com slash free coaching. If you’ve found value in something you’ve heard here today, we hope you’ll pass this episode along to someone else who can use it. Thanks for everything you do for others, and thanks so much for listening.
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May 2, 2025 • 52min

58: AI is a Stress Test for Your UX: What Cracks Will It Show?

Show Notes Jesse and Peter explore how AI is revealing the true value proposition of design teams. They discuss why “whoever controls the prompt controls the product” and why design leaders must understand their organization’s expectations before embracing AI. The more things change, the more they stay the same—AI may be new, but the fundamentals of design leadership remain critical. Jesse’s presentation “The Elements of UX in the Age of AI” is now available as a digital download. Get your copy today. Peter has just launched his masterclass “UX/Design Leadership Demystified” in two formats—self-study and cohort course. Learn more here. Transcript Peter: Make sure to stick around to the end of the episode to hear a couple of new offerings from Peter and Jesse. Jesse: I’m Jesse James Garrett, Peter: and I’m Peter Merholz. Jesse: And we’re finding our way, Peter: Navigating the opportunities Jesse: and challenges Peter: of design and design leadership, Jesse: On today’s show, reflecting on my talk: The Elements of UX in the Age of AI, Peter and I sit down one-on-one to talk about AI and its implications for design roles, design processes, and design leaders. We’ll talk about the new skills teams will need, the old skills that won’t be going away, and why. In an AI-enabled world, whoever controls the prompt, controls the product. Peter: So, a few weeks ago now, you gave a talk on the Elements of User Experience in the Age of AI. And that’s where I want to start. As a UX guy, when I see commentary about the intersection of UX and AI, or rather, primarily, design and AI… Jesse: mm-hmm. Peter: …it typically focuses on the top two layers of the elements diagram, the surface layer and the skeleton layer. And really the surface layer. I don’t even know if we’re getting much from a workflow standpoint. I’m just seeing screen design… Jesse: mm-hmm. Peter: …being what’s being discussed. And I’m wondering, am I missing something? Where is the conversation happening about AI and how it’s affecting the lower levels of the diagram? The structural concerns, the scope concerns, the strategic concerns? ’cause that for me, given my background in strategic design, is where my focus is at. And it also feels like, well, that’s the kind of thing AI can’t do. It requires my human brain. But I also don’t want to be that guy and be ignorant of the possibility that these tools are able to have a more kind of foundational… Jesse: mm-hmm. Mm-hmm. Peter: impact on the practice of developing user experiences. AI’s Strengths: Analysis and Synthesis Jesse: Yeah. Yeah. So the way that I tend to think about this technology is in terms of what I see as its two strengths, which are analysis and synthesis. Which is to say, finding patterns within a data set, and then extrapolating from those patterns something broader, right? So the pattern finding is the analysis part, and analysis is the stuff that’s gonna kick in when you’re down at those lower levels on the elements of user experience, where you’re talking about strategy, where you’re talking about scope, where you’re talking about user needs, where you’re talking about business requirements, where you’re talking about business models, where you’re talking about functional requirements, content requirements, all of those kinds of things. So this is where getting a whole bunch of data together and feeding it to the machine can help surface patterns that you might not otherwise see. And this analysis value proposition for the LLM is where I see it coming into play in these more kind of strategic and product strategy, scope oriented domains. Then when you get toward the top layers of the elements, then you start to get into these areas where the synthesis matters more. Where it’s more about what can you create, what can you generate out of the insights that you’ve created, out of the, really, the constraints that you’ve identified on your design problem. Because if we think about the double diamond, this is where divergent thinking comes in, where you are generating possibilities, creating ideas, and then convergent thinking comes in where you are refining those ideas based on criteria that you’ve developed. And so these are both areas where an LLM can potentially play a role in a user experience design process. What we see though, is that in these analysis oriented areas, where you are turning user needs into insights, turning those insights into requirements where you are evaluating and refining possible strategic directions, these tend to be processes that are owned by people outside of design. They may be owned by people in a UX research role. They may be owned by people in a product leadership role. They may be owned by people who are in a business leadership role. But often the direct purview of a design leader doesn’t actually extend all the way down the stack of the elements of user experience. And so what you see is a lot of the things that end up influencing user experience outcomes are actually owned by other roles in organizations. So I think part of what you’re seeing is that what design leaders feel like they can authentically control is the stuff that’s closer to the top of the stack, whereas the activity that’s happening at the bottom of the stack is happening in other parts of the organization, or that design leaders are ceding their influence over those areas out of a sense that that’s somebody else’s job, and my product person is gonna handle the AI that generates requirements, and I’m not gonna try to handle that myself. Peter: Weird that you say some of this, in part because I tend to think of the user needs part, the user research part is very much within the realm of design, typically. Jesse: It depends on the organization. In some organizations, the people who actually own that stuff don’t report into a design leader. Peter: That’s increasingly true, but not historically true, at least when it comes to UX research. There’s other forms of research. Jesse: Yes. Yeah. Yeah. Design leaders telling on themselves Peter: As you’re saying this, I’m thinking about something I saw a day or two ago on LinkedIn where a design leader was saying that unless you know code or are some Jony Ive-level brand craft wizard… Jesse: mm. Peter: that AI is going to take everything in in the middle or AI is going to subsume the work you do. Jesse: Mm-hmm. Peter: And I responded, well, maybe, if all your leading is production, but that’s not design, right? And so one of the things that’s been clear to me is design leaders telling on themselves about how they have led design and how they have abandoned those lower levels of the diagram. Jesse: Yes. Peter: And I say abandoned. It was not taken from them. If they knew what they were doing, it was there for them to lead. In my role as a design leader, I led folks doing the research. I led folks figuring out organizational models. I led folks developing the insights coming outta research that drove, that informed, I should say, product requirements. There were other means of informing product requirements… Jesse: mm-hmm. Peter: …certain kinds of customer conversations or whatever. But, maybe the conversation about AI and UX is really just a conversation about UX and design. It’s casting a light on just all the different ways, the varieties of ways that this has been led, this has been practiced in organizations, because, my point of view, both having led teams and working with design leaders of teams, is most of the teams I’m involved with have some responsibility all the way up and down the stack. You know, they maybe have more responsibility the higher up the diagram you get, sure. And the lower down the diagram, there’s a conversation to be had, but it’s a conversation. They’re not simply taking user needs from someone or the strategic objectives from someone. I guess, if as a designer and design leader, all you did was executing on the synthesis parts as you were calling them, the upper levels of the diagram, yes, it does appear that much of that work can be done by machines… Jesse: mm-hmm. Peter: …and that, for me seems like an opportunity for design. But it’s, intriguing how many people see it as a threat. Jesse: Right. Well, so, as you know, this talk came out of the work that I’ve been doing with design leaders for the last several years as a leadership coach. And in working with design leaders on their leadership challenge, it was this recurring theme that kept coming up of like, I’ve gotta figure out what I’m gonna do about AI. And what I found in those conversations is the value that AI potentially can deliver to your team depends a lot on the value that your team is seen as delivering to the larger organization. So if the value proposition of your team is narrowly focused on quality and speed of delivery of design assets, the value proposition of AI for your team is very different than it would be for a team where your value prop is more rooted in product strategy, user research, driving requirements, that kind of thing. And that kind of thing is gonna be highly variable because we’ve seen, as we’ve talked about with the variety of design leaders that we’ve talked with on this show over the last few years, we’ve seen a wide range of different frames for the value proposition of design as a function. And so where AI fits in, I think really relies on the leader clearly understanding what the organization thinks design is there to do for them. Peter: I had a similar conversation with some folks probably two years ago now about design systems, and the rise of design systems. And these folks were thinking of putting together an assessment of your design system situation. And as they were sharing this with me, what I realized is that that assessment had very little to do with the design system. Rather, that assessment was a probe on the organizational maturity when it came to matters of design and user experience. That, what you got out of that assessment was going to more be an indicator of what you were just talking about in terms of how the organizations that these leaders are in, understand design. And I think this is something we’ve talked a lot about, but I don’t know if we’ve talked about it on the podcast. And I wrote a little bit about it a couple weeks ago, which is the benefit for design leaders in considering their team, as a function, as an organizational function of the firm. Jesse: Yes. Peter: … not as a set of practices or activities. Jesse: Yes. Or as a group of people to defend or protect, right? Design is a symbiote Peter: Yeah. It’s more than just a group of people. There’s lots of ways you can slice these companies. You can have departments, you can have business units, you can have functions. And when you think of design as a function, it gets very simple in terms of what others expect of your team. You mentioned the word value proposition, right? What is the value proposition of your team? And, when you think of the value proposition of your team, as if it were a function, you can start looking at analogies of, well, what are the value propositions of product management, of engineering, of marketing, of sales? And how do you line up with that? And design has a really hard time lining up with that. That value proposition is different across different companies because design as a function is like a, um, a symbiote, I was gonna say parasite, but let me, let me say symbiote… Jesse: [Laughter] better. Peter: …design as a function is a symbiote in that it ends up taking on the shape of the organization it’s part of in a way that other functions I don’t think do, right? Marketing is gonna kind of look the same wherever it is. Sales is gonna look the same wherever it is. Engineering’s gonna mostly look the same wherever it is. Design is going to have to take on the shape of the organization that it’s part of in order for it to deliver its value, because design’s value is, much more about multiplying the success of other functions than delivering something straight on its own, right? And so, maybe before people start getting caught up in, how am I going to be disrupted by AI… Jesse: mm-hmm. Peter: … to do some groundwork in thinking about, how is my team showing up as a function of the firm? What is our value proposition? What do people expect of us? How satisfied are we with those expectations? Or do we need to change those expectations? Are people thinking of us primarily as UI production, or are people coming to us for the full stack of user experience delivery? And then once you have a sense of what your value proposition is, what people’s expectations are of you, now I’m wondering, how AI can be a tool to enable you to realize your objective in terms of how you want the rest of the organization to see your team. Jesse: Right. So there is delivering within your existing mandate, so to speak. Like, we’re gonna leverage this technology to better meet the expectations that have already been set, right? And then there’s the question of, well, can we push the boundaries of those expectations? Can we make a play for a broader value proposition for design in the product development process, for design in the product strategy process, to have more of a voice, to have more of a point of view that it brings to the table on where all of this is going. Whomever controls the prompt controls the product Jesse: One of the things that I mentioned in the talk that I think is a really important piece for design leaders is, in an AI-enabled digital product development workflow, whoever controls the prompt controls the product. Whoever is talking to the robot that makes the thing is the person with the power. And so your choice as a design leader is to figure out which things do you want control of the prompt over. Which areas of the product do you want your people to be the most prominent voice around, and building processes that support that voice and that engagement with the technology to elevate that value proposition. So it may well be that you’ve got, as we were talking about, product and maybe even research, people who are nominally owners of the lower planes on the stack who don’t have a strong point of view, who don’t have, you know, a facility with the technology or an ability to wrangle it toward those objectives. If you can step into that void, if your people can do that better than their people can do that, you can make a play for a wider value proposition for your team and for design as a function. But you gotta master the prompt craft first. The Role of Power Peter: This is interesting. I’m glad we’re getting to prompts and, I suspected we would get there. This ties into something else that I don’t think you and I have discussed on the podcast, but have discussed outside of it, which is the three types of power. This is something that I was introduced to about a month and a half ago at the Advancing Research Conference in a talk given by Robert Fabricant. And it’s a model where within any group of people, but let’s think about it within organizations, there are three distinct types of power that show up in these organizations. What most people think of when they think of power is positional power, right? The senior most person in their ability to tell other people what to do. The second type of power that comes up is expertise power, that someone has special knowledge of a thing, and because of that, other people will listen to them because they don’t have that knowledge. So this person might not be particularly senior, but they’ve, to use the example you just shared, they’ve mastered prompt craft. They know prompts better than anybody else. The third type of power is relational power. and that’s how people, it’s gonna sound mercenary when I say it, use relationships to make those connections with others within the organization to then realize their power for getting things done, getting the things they want done. And what’s interesting is, as you’re talking to me about prompt craft, that suggests a kind of expertise power, right? I know how to wield this tool better than anyone else, and this tool is super important, and so you’re all gonna listen to me because of that. In these analyses of power, far and away, what is considered most important is relational power. Jesse: Right. Peter: What often comes out are people say, well, what about positional power where you can just tell people what to do? If you think about. how people in higher positions tend to wield their power, they rarely do it by fiat. Yes, in the public consciousness, that’s what we see. But look around, even if you are a design leader, you’re not just telling your team what to do. You’re inspiring them, you’re engaging them, you’re making them want to do that thing. Not because you told them to, but because even if you’re senior to them, you’re wielding relational power to bring them along. Jesse: Yes. Peter: And so I, find myself getting maybe a little stuck on this idea of the person who controls the prompt controls the product, because that is this demonstration of expertise power, which UXers often fall back on as why they should be listened to, because they’ve done the research, they’ve talked to the users, they’ve generated the insights. We’ve observed the tests. We know what is going to be the best experience, so we should be in charge. And that never works or rarely works. So there’s clearly some value in expertise power. It gives you your credibility that you’re someone to listen to and engage with, but it feels like there’s something missing in that equation that you’ve been shaping. Jesse: Yeah. Well, so two things come to mind for me around this. First of all, I definitely do not mean to leave relational power out of the equation. You’re not gonna get anything done just by having. a phalanx of the most expert prompt crafters in the room. You get your hundred monkeys in there, and demanding that you be handed the authority over the entire product. But the other part of it that I think makes this craft expertise different from other craft expertises, is that it is manifestly an accelerant for creative processes, for product development processes for product delivery processes, where your expertise doesn’t just make you an expert. It makes you the person who can deliver a better thing faster. And so in these areas where, again, if there is a power void in the organization where somebody else hasn’t figured out how to close the gap around, let’s say, using AI to create really robust PRDs, if you’re able to take the junk that comes outta your PMs and turn it into really robust PRDs, you become the center of that expertise. You become the center of that influence, if you’ve mastered the technology that can bridge those gaps for the organization. I’m not saying that that doesn’t come with a lot of political scaffolding to create that opportunity for the team. So the leader has still got to be engaging with and negotiating with all of their cross-functional partners, all of their executive stakeholders, to be able to make the case for why we should do things following all of this stuff that their team is producing with AI support. But if they are able to do that, it starts to create a leverage point for more human-centered influence in product development. And so that’s, I think, the really interesting opportunity. Peter: In your talk, you mentioned that you created the elements of user experience diagram because no one knew why you were there, like, why you were in the room. Why would I work with this information architect slash user experience person… Jesse: He doesn’t even draw. Why is he here? Peter: Yeah, how are you helping us develop products? And the diagram was a means to answer at least parts of that question. And so thus people knew, to bring you into the conversation. Jesse: Right. Peter: And that still feels in many ways, like, the circumstance today, like, UX is not eagerly sought after. There might have been a period where it was, but even at its most eagerly sought after, it was still relatively minor. Jesse: Mm-hmm. Peter: People recognize its value, people understand its importance, et cetera. Another way to say it is there was never a UX gold rush. There’s never been a design gold rush. Jesse: Right. Peter: There’s an AI gold rush going on right now. Jesse: Yeah. Peter: And, there was something about when you were talking about the elements of, user experience as, this thing you needed to bring people along who could barely be bothered to understand why you were in the room. And now with AI you have to kind of beat them away, and many of them don’t even really wanna understand it, right? They just want to do it. It’s, I gotta get on the AI thing. There’s something about this dynamic between UX still trying to pull people in, and AI being this gravity well. AI in 2025 is like The Web in 1997 Jesse: Right. Well, so you may recall from our early years in this industry in the late 1990s, this brand new technology called the World Wide Web came along, and it was gonna transform everything, and they were wiring everything to be webby in one way or another. And nobody really knew why. Everybody just knew it was important and many of those things did not work, right? Many of the projects and experiments and attempts to integrate web technology into enterprises around, you know, in that sort of 1995 to 2005 kind of timeframe, just plain didn’t work because they were bad ideas. We are in the bad ideas phase of this technology right now for sure. I feel that what UX design was able to do for the web 20 years ago was provide some filters, provide some frameworks, provide some ways of thinking about these challenges that helped people separate good ideas from bad ideas. And I think that there’s a similar role for design to play now, in continuing to bring the human expertise to separate good uses of the technology from bad uses of the technology. You know when we talk about use of research, one of the big things that comes up with AI is the concept of synthetic users. The idea of doing user research by basically asking LLMs to pretend to be users. This is a bad idea. This is not a good use of the technology. It is not a substitute for actual data. Again, if you want to do some analysis down there at the bottom of the stack, then you’re gonna get some high value use cases. So separating the high value use cases from the low value use cases is part of the work that has to happen here. And I think that work is mostly going to fall, honestly, on design leaders even more than some of their cross-functional partners because, as you pointed out, the territory of design is so vague that if your goal is to drive human-centered process, drive human-centered outcomes, you might need to be piecing together a much more diverse portfolio of AI support tools than somebody whose narrow focus is just, get the code out faster, as might be the case with your engineering partner. Earn Trust First Peter: This is putting me in mind…. our conversation with Amy Lokey, Chief Experience Officer at ServiceNow, where, as she told it, her team has for a couple years now, really been at the vanguard internally within ServiceNow in figuring out how to best take advantage of AI tooling and AI opportunities, largely in service of creating highly usable and effective experiences, right? They’re kind of the most boring of enterprise software, and I mean that with love, but very, very pragmatic enterprise software. It’s a lot about data-driven or data experiences. Lots of cutting and pasting from one thing into another thing, et cetera. And recognizing that AI can play a role in automating a lot of this labor. And the value that they were able to articulate, that she was able to articulate from a user experience standpoint, was kind of classic 1994-era cost-justifying usability of time on task and how long it took people to do a thing. And what was interesting about her story, I think in this regard… One, she and her team, she had the credibility such that others were listening to her, and that credibility had been built up over time by demonstrating that value proposition such that when she steps up to help the company figure out how to make the best use of this technology, people aren’t looking at her like, but you’re just the box-drawer, what do you know about AI? But instead, oh, your prior work in helping us adopt the System Usability Score allowed us to see how, when we improved System Usability Score, we improved customer outcomes, which led to greater customer satisfaction on various metrics that we track, led to greater retention and, you know, business success. So if, you’re coming up and saying, Hey, let’s let my team get out in front of this AI thing, we’re gonna listen to you because we know that you drive value. Jesse: Right. Peter: I think for me, I guess a lot of it is this functional concern. If you’re feeling fear as a design leader about AI, the solution isn’t to AI at it more. The solution is to identify how you can raise the level of trust that others have with you in your organization, such that when you now want to engage with AI, they will listen to you. Jesse: Yeah. Yeah. I think that AI is similar to UX in this regard, in that what it really has organizationally is a multiplier effect, but that multiplier effect depends on what’s already there to multiply. So, if you’ve already built the bridges, if you’ve already gained the trust, if you’ve already built the value proposition, AI will let you activate and multiply that value proposition. If you haven’t already done that, if you’re dealing with a pretty scant value proposition, you’re not going to be able to multiply that very much with AI. So I think you’re absolutely right. The political groundwork has to be there. The operational groundwork has to be there. The cross-functional trust has to be there. The team engagement and commitment has to be there. You know, there’s a lot of resistance on the part of design teams to engaging with these tools for the fear that that is going to take something away from them. It does absolutely depend on how the organization is approaching it, and if you are approaching it with thoughtfulness and sensitivity to where that multiplier effect can be applied, then you’re going to reap that effect more quickly. And if you’re just throwing stuff against the wall, you know, the spaghetti phase of AI development, trying to see what sticks, then yeah, things are gonna get messy. So I think it is about being strategic. It’s about leaders being strategic about the value propositions of their teams. It’s about leaders being strategic about where that value proposition intersects with the larger ecosystem that they’re a part of, and where there is an opportunity to amplify that existing value proposition or build upon it. Peter: Right, right. And I guess one of the things that we’ve talked about in the past is maturity, organizational maturity, design maturity. And one of the risks that many design leaders unknowingly kind of engage in is that, when it comes to design maturity, they are often way more mature than the organization that they’re part of. Jesse: Yes. Peter: And they tried to show up as this very mature person and the organization’s not ready for them. This is something going back, when we spoke with Jehad Affoneh he talked about how he’d had jobs in the past where he couldn’t talk impact because the people around him wouldn’t know what do with an impact story. He had to talk about internal collaboration, ’cause that’s what they valued at that organization, was, did other teams like working with his team? And so I guess on that note, in thinking about accelerants, about this situation, right? The risk here is that design leaders embrace AI in a way that misses, is not aligned with, is not able to be taken up by the organization that they’re in. Right. It might be amazing. It might be, something that could very likely drive tons of value for this organization, but this organization is just not ready for it. And so it frankly gonna be wasted time and effort. And so design leaders needing to figure out where to pitch themselves, such that the AI- driven interventions that they are proposing are ones that can be taken up. And, when you meet your broader organization where they’re at, not where you are at, but where they’re at, click in with that and then over time bring the people around you along. Jesse: Right. So, it’s about understanding the expectations being placed upon design as a function. It’s about being clear on what you see as your own value proposition, and the difference between those things and creating the space, if necessary, to expand how that value proposition is perceived by the organization or how that mandate is construed by the organization, yeah. Practical Tactical Peter: Let’s get a little practical, tactical. Jesse: Yeah. Sure. Peter: You talk about prompt craft and… Jesse: mm-hmm. Peter: …the person who controls the prompt controls the product. What is your understanding of the mechanism, of the process, by which that might actually happen? If you were to coach somebody, an interested design leader around getting control of that prompt, and then driving the direction of the product towards these human-centered ends, what would you coach them to do? Jesse: Right. The first part is about just finding your opportunity. Finding the place where you can accelerate some part of the value that your team is there to create. So from organization to organization that might vary. Identifying the use cases within your workflow, your broader workflow, not just your design workflow, but the broader workflow of everything that you do together as a team to bring a digital product to market. And looking at that through the lens of acceleration, and honestly, the lens of human expertise and figuring out where the human expertise is most valuable and preserving that, so that what you’ve got is AI not supplanting human expertise, but augmenting human expertise. Often in digital product development there are these steps of translation. Translation of a strategy into requirements, translation of requirements into design specs, translation of design specs into actual design artifacts, translation of design artifacts into production code. Wherever you’ve got these stages of translation, those are places where the AI is gonna be a super valuable sort of an accelerant there. So in different organizations, there are gonna be different specific use cases within their workflows based on, again, what the team’s mandate is, as well as what the capabilities are that the team brings to bear. But ideally what you’re gonna do is you’re gonna get your most nimble, abstract thinkers, and you’re gonna get your best writers together, and you’re gonna talk about how we use language to define what we do. And start to develop shared language, common vocabulary, controlled vocabulary that enables you to have a shared knowledge base of repeatable stuff that works. You know from the work that you’ve seen me do with the prompt craft that I’ve been able to develop some highly reliable, repeatable tools for myself in supporting some of the work that I do. I can see that being scalable beyond an individual to an entire team, where you are collaborating on a knowledge base of reliable language, reliable, literally grammatical structures, that people can take and adapt and reapply in new contexts to create new solutions. And so it’s that shared understanding that ends up being really the collective source of value that a team ultimately ends up developing through this work. Peter: Shared understanding of what, and when you say team, which team? Jesse: I think you can define the boundaries of a team as broadly as you want to invite people into your prompting circle, and shared understanding of what creates consistent results. So this is the big challenge with these technologies, is that by their nature they are probabilistic. We want them to be a little bit inventive and be a little bit creative and come up with things that we don’t expect. The trouble is that sometimes we really need to control how much the machine is giving us things that we don’t expect, and so the ability for the team collectively to understand, here’s how we constrain the framing of a problem so as to produce a consistent result, ends up being the shared craft of the team itself. Peter: Apart from accelerating, and maybe automating, these interpretive breakpoints in the process, how do you imagine AI tools changing how we develop products? You know, we’ve got some fairly well worn, at least digital product design processes, not that everybody follows them. Are we just doing our process a little better, a little faster, or do you foresee real shifts in how we work? For example, with the rise of design systems, some people thought that, oh, we should just start with high fidelity comps in our design process. Now, I actually think most of the time that’s a bad idea. But, you know, an argument can be made. And so like what is being enabled that might shift the order of things, or the responsibility of things within a product development process? Jesse: So I think it does depend on where you are in your product development process. Early stages, AI is gonna be great for rapid prototyping, right? We’ve already seen so many examples of this where, there’s enough in the training data sets out there that if you sketch out a general sense of the functionality that you’re looking for, it can create something that looks like it does that thing. It won’t actually do that thing, it’ll just be a prototype, but it’ll be a pretty good prototype and maybe even a testable prototype with some additional layers of prompt craft behind it. You could probably create some pretty robust, fully instrumented prototypes of different product features and functionality and put out into the world. Once you get into later stages of development, I think that it becomes more about refinement and alignment, making sure that you are integrating features and functionality in consistent ways. In the talk, I talk about the prospect of human and machine readable documentation, the idea of creating product documentation that a person could read and understand what you’re doing together, and a machine could read and actually be able to take action on because it would have a fully formed understanding of what you were trying to create. I can see organizations moving toward that as a means of activating this kind of potential. You know, you touched on design systems. I think this is one of the huge things where, as I see it, it doesn’t make sense to me for design systems not to have an LLM interface. To my mind, the future of the design system is that it’s a robot that you talk to, that you feed it requirements and it matches those requirements with the system that it’s learned and generates product for you, right? The idea that humans would continue to kind of like spelunk into design system documentation in order to cobble together bits and pieces of UI kind of doesn’t make any sense anymore in that world to me. The Importance of Discernment Peter: One of the things you mentioned in your talk that’s related to this is how LLMs and any tool built on LLMs will kind of regress to mediocrity. Jesse: Yes. Mm-hmm. Peter: And the role of the human is to help get the solutions past mediocrity. Jesse: Right. Peter: Right. And so something I’ve been hearing about the role of not just designers, but anyone involved in product development, but primarily, say, designers and product managers, or at least people doing the work, there’s gonna be perhaps even greater importance in that idea of discernment. Jesse: Mm-hmm. Peter: Taste as it’s sometimes called. Jesse: Mm-hmm. Peter: Talk a little bit about that, and what the implications are, that it’s less about just turning the crank and getting something out the other end, but this application of discernment. Jesse: Yeah. yeah. So there was a slide in the talk that just says B-Y-O-B-S-D. Right? Bring your own bullshit detector, because the AI won’t be that for you. You have to be the one who knows more. So if you are working with the AI in a space that you are unfamiliar with, it is your responsibility to know more than the AI does, in order to be able to know when it’s feeding you something valid and when it’s not. And so maybe that’s about choosing your use cases, and maybe that’s about developing more robust validation processes around the output that you get. But what we see over and over again, is where people go wrong with this technology, is when you tried to design a submarine, and you knew nothing about fluid dynamics and you knew nothing about, you know, the structural factors involved in submarine design. And so it gave you something that looked like a submarine but didn’t function like a submarine and, surprise, you drowned, right? So this is the kind of thing that we’re seeing out there. Whereas, if someone with that taste, with that discernment, with that expertise, is able to leverage the tool and screen what comes out of the tool and say, this is valid, this is not valid, I’m gonna pay attention to this. I’m not gonna pay attention to that, that’s where you get the multiplier effect. But what gets multiplied is human expertise. Human capability. Peter: And that leads to something that I wrote just this past weekend. I was trying to figure out what I wanted to write for my newsletter, and I ended up writing about something that you and I had spoken about a few days prior, which is the definition of skills when it comes to design. So in my org design work, particularly when I create career frameworks for design organizations, at the heart of those career frameworks is a taxonomy of skills, interaction design, visual design, information architecture, et cetera. And I looked at my skill rubrics to try to get a sense of, what does AI do to these definitions of skills? What does it mean to be an interaction designer in an AI world? And as I looked at my rubric, I pleasantly realized that rubric as I had defined, it was already tool agnostic. Jesse: Mm-hmm. Peter: It didn’t say anything about OmniGraffle, Vizio, Figma, that’s not what the skill is. The skill of interaction design is, are you able to design a system that allows people to interact with the system to accomplish their goals… Jesse: mm-hmm. Peter: …probably feel some sense of satisfaction, maybe even delight in doing so, and that is tool agnostic. Humans have been designing all kinds of stuff that provide that kind of sense for decades, if not millennia. As you were talking about kind of enhancing these abilities though, or this concept of discernment, one of the challenges that comes with skills definitions is, skills are often about aptitude, but aptitude is different than taste. It’s hard to measure someone’s discernment ability. Jesse: Yes. Peter: I can say that, as you become more senior as an interaction designer, more advanced and developed as an interaction designer, you can design more and more kind of complicated and complex systems, wiring together different technological platforms, maybe online and offline platforms, like you can handle that complexity. That’s usually what you think of when it comes to scale. And that’s typically what the definition of the skill involves. And so I’m, thinking about how discernment’s gonna become way more important, right? So much of the value that people are currently delivering is their ability to, themselves, do the task… Jesse: mm-hmm. Peter: …just get it done. If we can delegate much of that “getting it done” to a tool such that our job is to now shape it, mold it as you, I think you said in the talk, think about it like, you’re throwing clay, right? You throw the clay on the wheel and now you’re, spinning it and you could make an ashtray like I’ve tried in the past, that looks like ass, or you can make something beautiful. For me, it raises this interesting question, which I don’t really grapple with, with my career frameworks and career architectures, which is assessing discernment ability, assessing taste, not that that’s not important, but it hasn’t been very important in UX design, right? In UX design, what’s been more important is the ability to create something that works, that’s usable. I think we’re gonna be shining lights on different parts of the work than maybe has been shining on it before. We were so focused on someone’s ability to grapple with tools, right? The number of resumes in the past that talked about, I can use Photoshop, or I can use Illustrator, and now I can use Figma. That’s all going away. And so what’s left as we consider candidates… Jesse: right. Peter: …as we build teams, as we think about the folks that we’re bringing together to do this work. Jesse: Yeah. So to my mind, it comes back to really what designers have always done, with an important twist to it, which is, can you visualize the experience that you can see someone having? How fully can you visualize that experience that someone is going to have with your product? How fully detailed is that vision? How many of the different parts of it can you really see in your head? And then having visualized that, can you conceptualize what it would take, architecturally, to create that as a digital product? Can you conceptualize the breakdown of screens and components and in some cases data structures and other things that are necessary in order to realize that vision? And then the third part, and this is where it gets tricky for a lot of designers, can you express that in language? Can you linearize that in a way that an LLM can ingest and interpret and make sense of and move toward, and then can you take that result and iterate upon that, and build upon what it creates? Peter: So I have three things that I wanna make sure we get to before we go. The first you talked about, can you express it in language and linearize it? I’m wondering when you say language, do you mean specifically words or could it be words and pictures? Jesse: It absolutely could be words and pictures, yes. Peter: Okay. Because, thinking of designers, right? Designers are visual people, but with pictures you can communicate multiple streams of information that the LLM could be taking in to better understand what it is that is being asked of it. Jesse: Yes. Yes. Multimodal is what they call it. Mm-hmm. Peter: And, I think when people think of prompts, they think of typing lots of words. And so it’ll be interesting to see how prompts evolve to accommodate multiple modalities of input. My second question, in the talk, you mentioned how, back in the day, 2004, 2005, you were giving a talk around, websites that evolve based on use, that can adapt to use. And this is something you and I have in common. This is something we both pursued a long time ago, and we’ve seen bits and pieces of it, right? If you look at any page on Amazon, that’s actually a demonstration of an emergent information architecture. The things that you are shown are based on prior behavior. But one of the things that people keep talking about, at least in the design space, is kind of emergent UIs and how the UI can shape itself to what you need, not the content that it’s giving, but literally the tooling, the interface elements that you’re exposed to. And I’m wondering, what do you think of that? Because this is something we’ve also been talking about for 25 years, and I keep not seeing. Jesse: Well, I’ve never been into this vision to begin with. There’s not a lot of precedent for humans preferring infinitely customizable tools. Humans would much rather use a larger set of more narrowly focused tools than one big, giant Swiss army knife with 1700 blades on it that’s gonna flip different blades out depending on the context. The various attempts at this, you know, just straight up haven’t worked. The closest thing that we’ve seen, I would say, have to do with more sort of task- or context-focused workspaces in UIs, where you can flip between modes, where I think about something like Photoshop, where you can just like really dive in and just do, like, pixel-level editing and like push all of the other stuff out of the way, and then when you’ve got to do some big kind of document stuff, you can bring the tools back in and do other kinds of things with it. So I don’t see AI creating infinitely variable tools because humans don’t like infinitely variable tools. Humans like tools that they can habituate to. And that’s not to say that there isn’t a place for AI in creating other kinds of dynamism within these environments, but I think that that probably is going a step too far for human brains. Peter: And one last thing kind of drafting on this, or maybe a different way at it, and something I’ve been suspecting, is how the development of these AI tools and the accessibility that they give so many people in now building their own software is… Are we going to see more and more products for, I don’t wanna say smaller and smaller audiences, but for a bunch of audiences, every, every audience, whatever it might be, can get its own product because with these tools, you can spin up something that really serves that particular segment. This might not be a tool that you know, gets to a billion dollars ARR, maybe it only gets to $50 million in ARR, but $50 million isn’t nothing. And are we gonna see more and more folks creating tools that generate a $100,000 to $10 million in revenue and be fine with that? And it’s not quite artisanal. I don’t know if you can call something that’s created with AI artisanal… Jesse: that’s an interesting question. Peter: …that’s a whole different conversation about craft and the role of craft in this. But, that mindset of smaller… I. Jesse: Yeah. Peter: … special purpose, you know, kind of Kevin Kelly’s “thousand true fans” oriented software, instead of what always feels like everybody around us is trying to do, which is create something that goes big. Jesse: Right? Yeah, I think so. I think there’s absolutely an opportunity there. Honestly, I think that’s a part of the larger thing that we’re likely to see, which, when I hear about vibe coding these days and people generating apps out of nothing, what they’re mostly making are tools for themselves to fill some gap, to fill some hole in their own workflow. And so I could definitely see a lot of creative professionals out there potentially creating tools to support their own workflow in different ways out of this technology. What it takes to scale that, to be a commercial product, to give it the stability and the security and the reliability necessary to be a thing that you could sell to somebody is maybe a different level that a lot of people aren’t gonna get to. But to make something that can run on your machine, that can help you quickly, you know, organize your task list or prioritize features or whatever the particular thing is, I can absolutely see a lot of that going on. Peter: So just last question for you. What are we not talking about? What have I not asked about? Or what are you not seeing in the discourse that you think is important and worth exploration? Language Matters Jesse: Hmm. It’s hard to think of what’s not in the discourse because there’s so much discourse. I’m gonna come back to the emphasis on language actually, because I think that there is not enough talk about the linguistic craft here, and the ways in which small changes in grammatical structures in word choice, in the way that you phrase and frame problems– because that’s what the work is, prompt work is problem framing for a machine to generate a response to the problem, and the more effectively you can use the mechanics of language to frame a problem in a way that the machine can understand, for you to have your own sort of theory of mind in the way that we use that phrase in philosophy and psychology to describe how we respond to the internal mental state of another entity in the world, the extent you can develop your own theory of mind about the AI and your own linguistic approach to engaging with it, that’s the skillset across the board, regardless of the problem that you’re trying to solve. Peter: Sounds good. Let’s end there. Jesse: Peter, thank you so much. This has been fun. The Elements of UX in the Age of AI is now available as a digital download. Get your copy today at JesseJamesGarrett.com/ai. Peter: Peter here. I’ve just launched two new formats of my Design Leadership Demystified Masterclass. You can take it either self-paced or with a cohort. For more information, visit petermerholz.com/masterclass. Jesse: For more Finding Our Way, visit findingourway.design for past episodes and transcripts. You can now follow Finding Our Way on LinkedIn as well. For more about your hosts, visit our websites, petermerholz.com and jessejamesgarrett.com. If you’re curious about working with me as your coach, book your free introductory session at JesseJamesGarrett. com slash free coaching. If you’ve found value in something you’ve heard here today, we hope you’ll pass this episode along to someone else who can use it. Thanks for everything you do for others, and thanks so much for listening.
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Apr 13, 2025 • 54min

57: On Being a Chief Experience Officer (ft. Amy Lokey)

Transcript Jesse: I’m Jesse James Garrett, Peter: and I’m Peter Merholz. Jesse: And we’re finding our way, Peter: Navigating the opportunities Jesse: and challenges Peter: of design and design leadership, Jesse: Welcome to the next phase. Joining us today to talk about what’s next for design is Amy Lokey, Chief Experience Officer for the enterprise software platform, ServiceNow. We’ll be talking about building a team that unifies product experience with customer experience, defining experience metrics that actually matter, investing in her own growth as a leader, and the real implications of AI for digital product design. Peter: Amy, thank you so much for joining us. Amy: You’re so welcome. I’m happy to be here. What does a Chief Experience Officer do? Peter: So, in the introduction that Jesse will have recorded before people hear us talk, he will mention that you are a CXO, Chief Experience Officer at ServiceNow. What is a Chief Experience Officer? Amy: Well, Chief Experience Officer, I’ll say first is importantly not a CEO, because you can only have one of those. So that’s why I’m A CXO. But I run product experience and also customer experience at ServiceNow. My wheelhouse, my background, is primarily in product user experience design. My team includes all of the functions that you would expect in user experience design team. So we have a large research organization. We have a large design organization. We have design operations and various operational functions that keep us kind of working together smoothly and things running. And then additionally, I have a large content team as well, too, that produces content for our technical documentation, best practices content, and is really the engine behind a lot of the content that helps our customers be successful with our products. And as part of that, we’re also responsible for a lot of the digital experiences that our customers use to be successful. So everything from… We have a learning experience where our customers and developers can get credentialed on ServiceNow. We have our customer support site. We have a product called Impact where our customers get kind of white glove customer support and work with squads of people that help them get up and running. So there’s a number of digital experiences. Those are just a few that my team also is responsible for. And so that’s the customer experience side of it. And then our product suite includes customer support software. So, there’s an intersection of our own product, is what we use for those experiences, so a lot of what we build to support our customers is the same thing that we’re building as a product that we sell to customers too. So there’s kind of an interplay in how all of that product experience design works and how we’re using it. Peter: And just to kind of establish some boundaries here, when you’re talking about customer experience, what is your relationship to marketing and kind of that front end of the funnel? And do you do any design or research work on that side? And then on the other side, more kind of typical customer service and even maybe even customer success. It sounds like those are outside your purview… Amy: Those are outside of my… yeah, yeah. From an organizational standpoint, so, we have a great CMO Colin, he leads our marketing organization. They do have a couple creative teams within that organization that work on various parts and pieces. And so our corporate website, for example, his team drives that. The digital experience, that we work really closely to bring those together in one unified navigation. So we want, from a brand and from a user experience design standpoint, we want it to be really seamless. So whether you’re looking on what might the corporate site, meaning, like, you’re looking at our products, you’re looking at our marketing communications, you’re evaluating the company, or you move into, Hey, I need to deploy this new thing that I got and I need some detailed information on that. You move more into the customer experience side of it. That’s my team. But we want those, you know, boundaries to be invisible to our customers. So we do have kind of an architecture that we work on from an information architecture standpoint, even like a universal login standpoint. So that’s, hopefully, not visible to customers, even though we have two different teams working on those parts. Peter: Sometimes customer experience means customer service. Do you have a relationship there? Amy: Absolutely, I don’t run customer service. So there’s another leader that runs customer service in terms of our support organization. But my team does work on the digital experience. So we design that entry point, right? And that’s, again, using our own product and then building it out to fit the needs of our particular customer service experience. So the digital experience we are responsible for, we support that. But the team of people that are behind that support system, like they’re managed by a different person. Yeah. Jesse: Within your team, you have an unusually broad mandate. In terms of bringing together both product experience and customer experience capabilities, and content as well. And I find myself curious about the organizational impetus to unify these functions. What’s the value of having a unified team with such a broad mandate that in most organizations is kept separate? Amy: Yeah. it’s not all organizations that are separate. I will say, like reflecting back at my time at Google, when I led user experience for G Suite, I was also responsible for the technical documentation. So, I think there are cases where you might have one org leader over both. The reason why I think it makes sense here is, the documentation of, like, how the product works is in many ways just this foundational piece that all of our other marketing and other content pieces are built from. We’re kind of the source of truth, and the people who write that content really sit side by side with the designers and the engineers building the products. So they are very much integrated into the product development process. And I think that’s an important part of why this all works. So, you know, my peer groups in my organization are, you know, product management and engineering, just to like very general terms, right? And then I have kind of the everything else bucket of user experience plus product, content and research and so on. But all the functions within my team are very, very close and tight with the product development process. So they’re working with product management, engineering. We are part of that release cycle. We’re part of, like, QE processes. So I think that’s why it all makes sense. It’s just fundamentally, I’m part of an R and D org and all of the experts within my team are part of that process that deploys software and then builds the things on top of it that help our customers be successful with that software. But we have to have that subject matter expertise of really understanding what it was designed to do and what it was built to do, and how it really, really works to be that source of truth. So we’re, you know, the customers that come to our documentation, they see it as very objective. It’s intentionally not positioned in a marketing type of framing. It is just factual because then it’s very, very trustworthy and seen as like this is the absolute source of truth of how something works. Peter: On your LinkedIn profile, when you define yourself as a CXO, you mentioned design and research, product content, design operations, but then there’s this phrase, information strategy. What is that? Amy: It’s how we deliver the right information to our customers. And so we are doing a lot of work to think about the best way to deliver vast amounts of information and what that strategy is. So it’s very much information architecture. We have a team internally, we call it Lexicon, which is just how we actually name our products, how they’re actually affiliated into our customer support experience, right? So if you file a ticket about our software, you’re gonna say what product you’re using, what functionality you’re using, that all has a data architecture in the backend that helps us tag it to particular products. So then we can kind of document the throughput of information back to the product team. So that information strategy and information architecture, it’s not only how we externally organize the content, it’s also how we internally tag it and map the data basically. So we have that throughput of information. The Holy Grail of Information Architecture Peter: This is like a holy grail. Well, so Jesse and I came up as information architects, and I think one of the challenges that I’ve seen UX teams face is, when they want to get to data models and content models, who owns those relationships with engineering, a lack of broad horizontal view of a company’s information standards and platforms and, and practices, and so it gets in the way when you’re trying to create, say, a unified navigation across a multi-product suite when every team has kind of done things their own way. And I guess usually this is solved by enterprise architecture or something, but it feels like your team has a bigger voice in this conversation, I guess recognizing there’s a user experience component to it, not just a technology platform kind of component. Amy: Completely. And, the team that does this work did actually have roots in engineering. So it started out as part of our engineering team. Hence, the affiliation to the data modeling and how we track that throughput of, you know, someone logs an issue in a customer support case, what part of the product is it actually affiliated to, and then can we even tie that to an epic and a record to show that we fixed the thing in the product, right. So, because a lot of that information architecture team had roots in engineering, it moved to my organization about a year or so ago. It did move because there is an implication on the user experience and there’s this relationship to our content and product content and so on. There was a natural time and place to move them to my team, but we have this great history and this great foundation of the data architecture underlying it. And then the other piece is just… ServiceNow is built as one unified platform with one data model. And so that’s just in our DNA here of like how we do things. So we continue to build on that. We have an internal tool like I just mentioned, where we can track our research insights and connect them into design records that connect into the epics and stories. And like I said, we could even connect that to user experience, customer service issues that we see. So the fact that we can have all of that data in one system of record is pretty powerful because we’re getting to a place now where we can track our user insights, we can tie them to design artifacts that show that we’re fixing the thing. We can then attach that to a PRD and then the, you know, epics and stories and we can show this connective tissue of, Hey, when we release the thing that solved that user insight, we actually saw a decrease in customer service issues related to that particular thing, which is pretty powerful to be able to draw that story together using data and show that that investment in user experience actually lowered the cost of customer support on the other end. Jesse: So with all of this interconnectivity between your group and its work and the work of all of these adjacent groups that you’re intertwined with, it actually gets me wondering about the discussions that go on at the top level of the organization and you know, you are a chief experience officer. A lot of organizations don’t even have a C-level person with your purview, and I’m curious how that changes things for you to be in a C-level role, speaking to experience issues. Being in the C-Suite Amy: Yeah, that’s a great question. I mean, I have to change altitudes quite a bit. I mean, I still, like I said, my roots are of being a product designer, so there’s nothing I love more than being in a design review, looking at the you know, product taking shape, giving feedback, working with the team to ideate on things. Like, for me, that gives me energy. But I do spend a lot of time thinking about our broader experience strategy in the ecosystem of our product, right? Which is, we have an enterprise software product. We design out of the box software products, right, that we sell to customers, but they’re on a very configurable platform. So we also have to make sure that we’re continually training our customers and our implementation partners on how to use our best practices to design and build the right experiences on top of our product. So it’s sometimes, I joke, it’s like the movie Inception where you don’t know which level of the dream you’re in because there’s kind of the root of it, which are our components, and then we’ve got our out of the box products. And then on top of that, our customers might configure and extend them. They might theme them. And we have a partner ecosystem as well too. So the role that I play now is much more externally facing, much more customer facing and much more involved in our partner ecosystem and the enablement focus. It’s one thing to have a great internal product user experience team. A lot of my journey here has been growing and developing and maturing that. Now I need to mature the user experience practices outside of the walls of this company to make sure that our customers are successful with the product and have all the best tools, resources, and talent to build on our platform in a way that delivers the potential that it has to deliver a great user experience. So a lot of the work and the strategy that I do is focused on that outbound work to enable the ecosystem. And then secondly, of course, I spend probably the largest majority of my time at the executive level on our product and business strategy, right? And the focus that we have on experience there is all around the transformation with AI, generative AI, agent AI, and so on. And that’s gonna be a massive shift in how people interact with technology. So my team has to be ahead of that curve and also helping the executives understand where that’s going. So those are the two pieces that I would say are outside and beyond maybe the typical UX leaders remit. But that’s not to say I don’t love doing that core part of my job, which is helping shape the product design. Peter: You just said the trigger word, or trigger letters, of AI, and it sounds like so much of what we’re seeing when it comes to AI in user experiences is some kind of, not quite shovelware, but it’s just being kind of spaghettiware. They’re just throwing AI at you in hopes that they’ll find some application that sticks. And given what you’ve been saying and the connectivity that you referred to, right, and there’s like a, detailed understanding of how user experience connects with these other kind of aspects of the business and, how value is realized in the business, I’m assuming that you are approaching AI with a different kind of consideration, and I’m wondering, what role is your team playing in contributing to that product strategy around AI, distinct from, or in partnership with product management, engineering, I’m assuming the typical function, sales, since you’re an enterprise software firm, I’m sure they’re getting involved. Like, what is the chief experience officer’s team bringing to that conversation to ensure that it’s not spaghettiware AI, but, really things that your end users will find value in? Designing with, and for, AI Amy: I’d say there’s been multiple phases of this and it keeps evolving. But I think one of the most interesting phases was at the very beginning, right? So generative AI hit the market. Everyone’s trying to figure out what to do with it. And our research team played a really key role in looking at where we might find the most value and deliver the most value, and using a System Usability Score kind of usability testing methodology. And so, you know, like everybody else, we’re wondering, well, where is the most valuable place to insert this technology? Right? And for what, what user, what persona, and in what parts of our software? And then obviously you’re looking at the business value that that might deliver and how you might monetize it, but also how you communicate that value to the customer. And largely the benefit of this technology is all around productivity and time savings, right? So how do you save time? And fortunately for us, our software is very much productivity software that’s typically used at scale by teams of people doing pretty predictable and often repetitive tasks, right? And so our roots are all in like workflow and process automation and so on, where you can say, okay, given any enterprise or business, if they have a particular workflow, we can start to digitize that. We can start to automate it where possible. You can start to enable humans to be able to do more versus doing whatever that activity was before, right? So instead of copy-pasting data from one system to another, we can automate that, right? So they can do more intelligent work. So AI was like a perfect fit to what we already did, but we had to figure out like, where are we gonna invest? Because you can’t just put it everywhere. There’s a cost to that. And so we used research and data and analytics to say, okay, what kinds of activities are most repetitive and happening in at volume and at scale, you know, so they happen over and over again. So they’re fairly predictable. They happen at a lot of our customers and they’re happening at scale where many, many people, our hands have to touch that thing. And so it was just basically a simple equation where we could say, if we put AI in this particular place, then how much time does it save? So we used a usability assessment to say, how much time did it previously take someone to accomplish this? So say that’s summarizing a case or writing resolution notes when something’s been closed. If that previously took them an hour and you can summarize it in five seconds with generative AI and they can edit it and complete that task. Now in a number of minutes, you can multiply that time savings across how many people, how many times a day at what scale in our customers, and you can start to extrapolate true value. And that even helped us figure out, How do we price this? So, so we were really formative at the very beginning, just trying to figure out where would it have the most value, how do we articulate it to customers and how do we price it? And that was very much based in those roots of just a before and after picture of time on task. That was two years ago now, but it did help us invest in the right places. Now, you know, fast forward, we’re more strategic, too, in how we measure the quality of the output and the value before we take something to market. And that’s been a learning process as well, too, because as you’re working with LLMs and they have degrees of unpredictability and variability, we’ve had to work really closely with our QE team to come up with both automated and also observational ways of testing the value of what’s delivered. And that’s been an interesting challenge. And, have to do with the pace that’s needed as well too. Generally working with internal simulated datasets before it gets into the hands of your customers. So that’s still a work in progress and something that we’re evolving, but we’re getting to a place where we have a pretty clear metric-based evaluation, too, of assessing the quality of the product before it goes out in market. But that’s been a multi-pronged effort as well in terms of getting like data to work with and all that. Jesse: What do you think designers and design leaders often miss about AI and how it fits into everything these days? Amy: I think it just depends. I’d say like in the last year or two I’ve been able to participate in various like panels and discussions and summits about AI. And I think I’ve been lucky to be working so firsthand with it all along the way. And so I feel grateful that I am part of these meetings, whether they’re at the executive level or the team level to really understand from like our research scientists how things are working and evolving and our engineering team, how things are working and what we’re learning. I think the most important part for any designer now is to truly understand how the prompting work, how orchestration works, what the variability is, and to get ahead of the quality in a way that’s harder to do than ever before. Because I think what’s really tricky with AI is to get the quality right, and to really understand what the end user experience is gonna be before you ship it. And that I think is the new science and expertise that we’re all kinda still figuring out as we go along, because it evolves so quickly. So you’re designing for hypotheticals and you can’t predict the hypotheticals necessarily, so you have to find quick ways to assess and, modify and change. Wielding UX Metrics Peter: When you mention getting the quality right, and the quality of experience, and, earlier you’ve referred to some UX metrics. You’ve referred to some usability assessments that you all conducted. I’m actually curious of the story of UX metrics at ServiceNow. Maybe it’s at least since you’ve been there and, when you joined, was there some UX metrics in place that you were able to kind of start with and then build? Or is this something that you brought in, in terms of how UX metrics are used? Not just, it sounds like within your team, but how your team uses these metrics to communicate outside of UX or CX and like, what that journey of metrics… It’s literally probably the most common question I get from design leaders is how to measure, how to value, how to define quality. And it feels like you’ve got your hands around this a bit more than perhaps most do, so I’d be curious what that story is. Amy: Yeah, really proud of that. Thank you. And huge credit to the research team and their leadership on this. But I would say when I joined, our, our research culture at that time was much more on the foundational research side, which is great and super valuable. But at that point in ServiceNow’s growth, we were expanding into a lot of different products. So we’d started as kind of IT service delivery, and we were expanding into customer service. We were expanding into HR, we were expanding to all these different verticals throughout the business. So the research team, and rightfully so at that time, was very focused on foundational research. What product should we develop? What would be the right product market fit. Almost a little bit more like market research than product user experience research. So when I joined, I had been at Google when a similar methodology had been formed. I think it started within the YouTube team, and then kind of grew across Google. And now the name that they called is kind of escaping me, but it was based on something like called Toothbrush Journeys, which are like, you brush your teeth every day. So look at the most, oh, CUJs, Critical User Journeys is the acronym Google, I believe. So you look at the most critical user journeys that people take, and usually there’s data that you can look at in terms of what are people, where do they start, where do they end, what are they trying to do? And I remember when YouTube first started forming this approach, they were just looking at uploading a video, what does it take, right? And they assumed, of course people are using YouTube, they must be having no problems uploading videos. There’s actually all of this drop off happening where people could not figure out how to upload a video. And so that was just like a critical user journey for the product to be successful. So the methodology is simple. You just establish what those 10 to 20 activities are and you measure the usability of them. And that is based on that SUS score, right? Which is like time on task, I think, you know, level of correctness, in terms of do you get through it appropriately, do you make mistakes, do things break along the way, or do you do the task correctly? There’s some qualitative in that as well too. How do you feel about it? And so you’re looking at both like the success rate as well as the time on task and then how, you know, do people feel like it was a good experience? And so you can kind of triangulate all that together. So we based what we call internally here now, UX quality, on that same approach, right? So determine what the most important things are that you’re hoping people can accomplish with the product. What are those journeys? And then you measure how effective they are and how long it takes and then qualitative, how do they feel about it. So we’ve kind of expanded that system into a benchmarking study that we try to run at least semi-annually on a product. We do semi-annual big family releases. So ideally at least twice a year we’re kind of looking at, you know, a new version of the software and reassessing based on that same evaluation. And we’ve had products where we’ve been doing this now, I’d say, over about six or seven releases, and we’ve seen tremendous improvements. The score ends up netting out to a percentage score on a hundred percent scale. And I believe in the industry, 80% and above is typically a considered a consumer grade usability score, where people can generally get in there, they can use a product. They don’t need tutorials. They don’t need documentation. It’s approachable, and it’s usable and simple, and they can be successful with it. So in enterprise software, the scores are typically in the fifties and sixties, right? Like typically much harder to use, more complicated, not as easy. So in the products that we’ve been running this methodology on, and addressing the feedback, ’cause it delivers really clear actionable feedback, we’ve had products that have moved from the 50 percentile up to some of our products are scoring in the 95th percentile, which is incredible for enterprise software that’s quite complicated. So it’s just been a great tool in the toolbox and we’re actually now using these in our executive product reviews. So we do quarterly product reviews and now we’re bringing what we’re calling overall this UX health scorecard to the mix that includes this UX quality benchmarking where we can investigate, you know, is there a usability problem here at the product or is that fine, and actually there’s an adoption problem, where there’s something else working here that we could apply over there. So it’s been great to see that continue to get momentum here and continue to add value in how we look at our products objectively and make sure that we’re fundamentally delivering a product that people can use and enjoy using and they get value from. Jesse: What do you think are some of the larger cultural factors that support that work in being successful? Because, like, I hear from leaders that they all say, well, our executive leadership absolutely wants to be research driven, data driven until they get data that they don’t like. And then, the data goes out the window, the process goes out the window, and executive fiat takes over. And I’m curious about the decision making environment that enables this more, you know, rational decision making. When UX is aligned with corporate values Amy: I think what helps is this kind of data is what our customers value as well, too, right? So again, like the fundamental value of our software is to deliver on business and end user productivity, right? So the fact that we have a methodology that shows very concretely improvements in user productivity and using the software, there’s no argument there, right, because that’s what we’re committed to do for our customers. And we can also show our customers like, Hey, look at the improvements we’re making. You know, your users are gonna get through their work x amount of time faster because now all these hurdles are taken outta the way, or we can generate these things much faster for them. So I think it’s just so well aligned with the value of our product, how we sell it, how we talk about it, that there’s never been an argument against it. There’s just been a hunger for more. I think in the consumer world it might be different, right? Like I’ve worked in consumer products quite a bit as well too, and in those cases, you’re not necessarily creating product that helps people be more productive. A lot of times you’re creating product where you want people to spend more time. Jesse: Right, Peter: right, right. “Engagement.” Amy: And so very, very different very different motivations, very different design measurements, right? And so usability, it’s probably still important, especially when you’re looking at, can they sign up for it? Can I get them registered? Can they subscribe? Can they pay, put in their credit card information or whatever it is. So, however that business model thrives, typically those usability scores will be very important. But in other cases, I mean, YouTube went for a really long time where people had a really horrible time uploading videos. It didn’t matter ’cause some people were figuring it out some way or another, you know, they were getting their videos up there. And the product was successful, but it probably became a lot more successful when you kind of streamline that process. So I think it just depends, like, how the product business works, and can you align metrics that are both in good service of your end user, as well as that are helping demonstrate how you can deliver more business value. Peter: It sounds like your team has generated some of these various UX metrics, but they’re now being placed on product team dashboards. And I’m wondering, where accountability lies now, right? is your team primarily held accountable for this, or is there joint accountability? And then, how is accountability handled, particularly for your CX team? I’m curious if you are somehow expected to deliver a distinct kind of value within ServiceNow, or if it’s just broadly recognized that CX is valuable, like these other functions, and your contribution is not isolated necessarily. Amy: Yeah. I mean, I think in terms of accountability, it’s definitely a shared accountability. So when we present these metrics, even though my team is helping produce the studies and create the dashboard and create the measurements and all that, we are making a hundred percent sure that we’re not blindsiding anyone with that, right? Like, we don’t wanna go into an executive review and be like, ah, gotcha. See this thing’s in the red. What are you gonna do, right? so we’re very much in lockstep with our product and engineering leadership team. So everyone understands how the study was conducted. They understand the data, they trust it, but they also feel aligned on what they’re doing about it, right? And so that accountability is definitely shared. It’s not just on us to fix it. And there’s also times where you might say, Hey, it looks like this is actually in a pretty good state, so as a cross-functional leadership team, maybe we need to invest in something else, right? Like, so I think it’s also how you’re making your investment decisions in terms of what needs the most right now. And in some cases you might have a product that’s very new, and you really wanna get it adopted, you wanna get it out and, you know, getting traction. Well then probably a big investment in UX is really good. You might have another product that’s actually quite mature and successful, maybe there’s another area of the business that needs that investment. So I think it helps us make like more thoughtful decisions across the board about what to invest in. Peter: Is there accountability specific to your team or is accountability shared…? Amy: It’s shared. Yeah, it’s shared across the product team. Yeah, absolutely. How to know to grow Peter: How has your team known, for example, how to grow, you know, you have hundreds, if not close to a thousand people in your organization. That’s expensive. What is the investment calculus in growing your team as opposed to hiring another product manager, hiring another engineer? ‘Cause clearly your team’s delivering value, but what is that conversation in terms of, like, the money, the funding that you get to grow your team, versus maybe other places where that money could be spent? Amy: Yeah. I mean, every company has different funding models. It’s a cross-functional conversation, absolutely. But ultimately the way that ServiceNow works is there’s a GM that at the end of the day makes those calls, right? So, they will get investment, they can choose to invest in sales, they could invest in engineering, they could invest in QE, they could invest in product content, there’s many competing areas that you can invest in. We use a ratio based model to just have some form of a guideline of what a healthy team looks like. And then cross-functional leadership gets together and we have interlock meetings where we’re looking at what the investment plan is, making sure that we can deliver on that investment plan. Making sure even the quarterization looks good, right? Like, are you hiring the right people in the right order? You don’t necessarily wanna hire engineering first and research last, you know, so things like that. But it’s a cross-functional conversation, which is really healthy. And, I think it’s rare to find that kind of operational health in terms of how things are funded. But like I mentioned, there may be times as a leadership team where like, the number one thing we need is actually like translation services for this particular product, or it’s, we need more QE for this particular product. So I think we do a good job of putting on objective hats around, like, what will truly make this business successful, and making the right investment decisions. Not just fighting for, like, we need more design. You know, I don’t approach it in that, way, but ServiceNow has grown tremendously over the past few years. So the team has grown tremendously during that time. I do think it’s an interesting advent with AI coming into the mix a lot more. Like, I think we’re all looking at how do we adopt AI to increase efficiency and potentially decrease the need to continue to expand at the same rates, you know? So, I think that’ll be an interesting shift as well too, because we just wanna make sure that we’re enabling our teams that we have to be really, really successful. And continuing to add at the same rate may, like, probably is diminishing returns at a certain point once you get to a certain scale. Jesse: So if you’re not in there advocating for more design, more design, more design, what do you see it as your role to advocate for on behalf of your team? Amy: I’m not saying I don’t do that. There’s definitely times where I do that again, like we look at the makeup of the entire team and decide what we need, right? So there’s, plenty of times where we’re saying, Hey, we need more designers or more writers, or more researchers, and I, here’s, here’s what won’t happen if we can’t get those folks. So trust me, like I have to advocate, but I think that just the culture here is one where there’s also times where I’m like, you know what? Instead of research, really what we need is more QE because, we do these interlocks, we’re looking at the bigger picture. So I just think that is a great business practice so that you are looking at objectively how is the team shaping up and how is it growing together, and that you’ve got everything you need to make the entire business successful. And so having that visibility, I think is really great for the cross-functional leadership team as we do those interlocks, because then you can see the perspective of, okay, I understand we didn’t get a researcher this time, but I can now tell my team why, and that I understand that it was in service of a bigger picture need. Jesse: What do you think is it that makes those interlocks successful, as opposed to simply being the recurring, repeating the same argument every meeting between the same people over and over again, over the same things. Amy: Well, I think naturally we see people respond to those conversations, so, you know, maybe culturally that’s different at this company than others. But I think the transparency in having the conversation is the important part. And then I see people make accommodations, you know. So we have a GM and we’re like, Hey, we really do need a researcher for this, or we’re totally understaffed on this other thing. Like, generally they’ll do what they can do, you know? So I think just hearing that and actually trying to make adjustments based on those needs and feeling that there’s always this give and take and level of understanding to try to do the right thing is most important. Then it doesn’t devolve into just a battle. Jesse: Mm-hmm. Peter: When you’re saying GM, I’m assuming there are multiple GMs. You have different business units. But design or CX is centralized, it sounds like it’s organized to align with those business units. Amy: Correct. Centralized vs decentralized Peter: Um, You are getting to a size where, in many companies, there would be a discussion of decentralizing, and I actually see it in much smaller companies where when they go to a GM model, the designers report up through that GM. And I’m wondering if that conversation has taken place at ServiceNow. And what are the, considerations around when does it make sense to maybe no longer be centralized as a function… Amy: mm-hmm. Peter: And yeah, just how is that discussion going? if it’s even going at all? Or maybe you’ll say, no one said it. Amy: No one said it to me yet. I am very cognizant of that. I’m very cognizant of that. Peter: I mean, Google, Amy: Microsoft, Google, I think Salesforce, like most other companies, at a particular scale, you fork the teams. The reason why I don’t know if it’ll ever make sense at ServiceNow is again, it goes back to like our core, core value of our technology is it’s one platform, one data model, one architecture, one front end. So we’ve been able to hold that together and no other company has, right? If you look at Salesforce, they’re all separate clouds, right? If you look at Google, all those products are different data models, different front ends, different back ends. The data won’t talk to each other. And that’s problematic when you wanna create cohesive experiences. So, one of the reasons that I was drawn to ServiceNow is I was like, this is pretty unique. You know, like the front end component system truly powers every product. So do that, you have to have strong horizontal connectivity, right? And so I do believe that makes a lot of sense when it comes to our engineering and all of our EX. We are centralized under functional leaders. Our product management teams not quite as much, but again, they’re kind of oriented around big areas of the business. So my team does serve as that glue that holds a lot of it together and make sure that, you know, experiences are cohesive, we’re taking systematic approaches to things, and there’s a lot of leverage and efficiencies that come from that as well too. Could it be decentralized? I mean sure there’s, and never say never, right, but at this point I think there’s a lot of value in having it together. Jesse: Speaking of the value in having things together there are lots of design organizations that find themselves kind of caught between a value proposition that is very much oriented toward the delivery of great design work, right, and we’re gonna be an awesome design factory, versus a value proposition that is not as delivery oriented and is much more sort of forward looking and innovation or product strategy. Amy: Mm-hmm. Mm-hmm. Jesse: I wonder how you balance and reconcile those things across your teams as you are wielding this cross-functional influence. Amy: Yeah. So are you, talking about kind of like the dichotomy between like craft or design with a capital D in terms of like creating something that is so beautiful and amazing and gorgeous and all that versus product strategy and business value and like are we actually delivering the thing that’s driving the… yeah, you know, that’s a, good question. I would say on the spectrum of things, ServiceNow is probably a little bit more skewed toward driving business value, which is I think, the right thing for us. That being said, we’ve invested a lot on the aesthetics and are focusing a lot more on getting those details to a point of polish and beauty and, you know, brand finesse that we’re known just as much for that as we are for the foundational value that the product gives. But our roots are really in value, right? Like, so again, that ability to automate and streamline businesses and, you know, we have a product called process optimization, for example, where when you’ve digitize processes on our platform, we can show you exactly where there’s bottlenecks, where maybe like an approval process is slowing something down or a lack of some particular thing is, and then we can help you automate that piece or streamline it. So our software, like fundamentally helps businesses run more efficiently and effectively, which means better customer service, better employee engagement, better, you know, productivity with their products. So that is, I think, just core to what makes us successful. So I do think like the UX leaders on my team are very strategic, very much thinking about product strategy and influencing product strategy. But we are also getting like much and much better at the beautiful aesthetics of it too. We launched a horizon design system this past year and it’s just absolutely gorgeous cutting edge design. We published principles around designing ethical AI. We’ve published all of our accessibility approaches as well, too. So that work I think is very much in that category of a capital D where like, if you look at the motion and the interactions and the visual aesthetics and all of those things that I think designers just love, there’s a lot to be proud of there as well too. Peter: When you mentioned publishing ethical AI and your accessibility standards, is that, I’m assuming by publishing you mean make public, like we, any… Amy: Yeah. Yeah. They’re public. Peter: What was the motivation behind publishing that? Amy: Great question. I think it’s just kind of intrinsic to ServiceNow’s values. We knew that, obviously there’s a lot of nervousness and trepidation around AI, and we wanted our customers to feel really confident that we were doing this in the right way for people. And so even our marketing language anchors on that, which is you know, make AI work for people, right. Put AI to work for people. And so people is always part of the statement and everything that we’ve done in our user experience design is to make sure that there’s humans in the loop at any kind of important juncture. You know, we’ve launched Agentic AI. Now we make sure that Agentic AI can work on all of the kind of research functions, but if it comes to, you know, like read versus write, it can do all the read stuff, it can pull things together for you. It can tell you all the things that it has done. But when it comes to like write something, meaning make a change or click submit or take action on that information, there’s a human in the loop. So it’s important to us, ’cause it’s the right thing to do and it’s important to us ’cause it’s the right thing for business, right? We need our customers to know that we’ve done this in a responsible way. And the reason we publish them externally is it’s literally a guidebook for customers and product development teams to use to make sure that every step of the product development cycle, they’re asking the right questions. They have the right representation in the mix and their counteracting the bias and their thinking ahead around where things might hallucinate and how to continually make sure that there are the right guardrails and checks in place so that their business isn’t compromised, or high stakes things are not at risk, right? Because using AI in an enterprise context, and especially as we move into Agentic AI, you’ve got businesses with very, very high stakes things that could be at risk if you’re not handling it in a responsible way. So we have to be very, very transparent about that, to keep that trust with our customer and not lose it and make sure that they have full transparency into how our models are built, how we built our own software, and then we can guide them, too. It’s available on the Horizon website. So if you search for Horizon design system, those HCAI guidelines are all published there as well, too. And, you know, it’s, one part thought leadership as well too, right? Like ServiceNow, a big part of our brand evolution is that we’re now perceived at the forefront of AI and that’s been something we’ve worked very hard at the past couple years. So all of these things, both in what we’ve delivered and shipped within our product and the success our customers are seeing with it, as well as these publications are important part of that whole story. Amy’s journey Peter: I wanna go back to when you started at ServiceNow, which I think was about five years ago. Amy: Yep. Correct. Peter: You started as a simple VP and global head of Design. And I’m wondering, when you joined ServiceNow about five years ago, how much of the path that you were on, did you foresee, like, did you have an agenda? Amy: Such a good question. Peter: Did you have a sense of, you know, what the next three to five years would be? Or, and how much of it has been a response to how things have unfolded and how have you figured out when were appropriate points of growth to, you know, ’cause your mandate has expanded over time, like, given that growth that you’ve had in your role, how much of that was planned and how much of that was realized? How was it known that that was the right thing to do? Amy: So did I see this coming? I got an inclination that it might happen, but I was also skeptical. I am a, pretty healthy, you know, cautiously optimistic, somewhat skeptical type person by nature. So when I interviewed here, there were a number of things that drew me to the company. It was not necessarily this promise of, oh, the company is gonna scale tremendously and you’re gonna scale the team tremendously and your career might grow along with that. I joined here more because I really like the culture, I like the leadership team, and I saw a big opportunity with the product that I thought was really interesting. And so that’s what drew me here. And the culture was very much hungry and humble. And I like that because I worked at LinkedIn previously through kind of that formative growth time at LinkedIn and that was one of my favorite kind of experiences in my career. So I wanted that, again, I wanted to be part of a company that was still shaping where I could have influence, that was malleable and that was on a growth path because, you know, growing is fun. And I do like scaling UX practices and maturing teams and finding great talent and figuring out how to expand on product experiences. So, that part definitely drew me in. When I interviewed, I remember being asked like, well, can you scale a team? And I thought, well, sure, I can scale a team. And when I was at LinkedIn, I think I joined and there was like six people on the whole user experience team and it grew to like 120. I’m like, that’s pretty big, you know? I can scale. And I think here the team when I joined was probably over a hundred people, but under 200 maybe, let’s so call it 150. So I was kind of coming into a team that was equivalent to say the size of the LinkedIn user experience team or even the team at Google that worked on G Suite. So I thought, yeah, like it was already a pretty big team. Can I scale it bigger? Sure. Did I think it would scale to over a thousand people in five years? I wouldn’t have believed that at that point, if you would tell me, and I remember the person interviewing me kind of said, yeah, well if you look at the growth rate of the company and what we plan to do, like, and you extrapolate the growth of your team, you’ll be at like over a thousand people in five years. I remember being told that and I was like, nah. I was like, sure. I nodded. Oh, okay. Yeah, no problem. And I remember thinking in my head like, that’ll never happen. But here it did. So I mean, yes, was, I told that this could happen? Yes. Did I believe it a hundred percent? Not entirely, but but it’s tremendous that it did play out that way, and we’re continuing to grow and expand. And it’s been a huge privilege. And, actually some of the best advice I got on this came from a engineering leader I work with. We were having dinner recently and they’ve been here longer than me, and I said, well, what has it been like? You were here, like, really early days of the company. And now you know, you’re managing, I think he’s got like a, say a 4,000 person engineering team. It’s like, well, every year the team’s grown like 20 to 30%. So every year I think about how do I get 20 to 30% better at what I do? How do I become that much better as a leader? And I was like, oh, that is so just resonated with me. Like that’s what you have to do. You have to challenge yourself to grow, to meet the needs of your team and the business. And if you can’t grow at that same rate as you’re developing as a leader and someone who’s bringing strategic ideas to the table and making a difference, then probably you should bow out at a certain point and let someone else come in who can work at that scale, you know? So it is been a privilege, but it’s definitely kept me on my toes and challenged me tremendously to lead at this scale and to continue growing along with the team at that rate. Jesse: In what ways are you challenging yourself as a leader these days? Amy: Getting much more involved in the business side of the house is a continual area of growth and challenge for me. So whether that is getting involved in really tricky customer negotiations or escalations and helping turn things around in a positive way that’s been a real good area for me to get comfortable with so much more of kind of an outbound role than internally facing, you know, and I, as someone who started out as a designer who really just wanted to put headphones on and hang out behind my monitor and design things, like becoming more outbound facing and extroverted in those kinds of types of roles are definitely a growth opportunity. And then I think continuing to advocate for what my team needs. I mean, we talked about like, you know, needing to say, I need more designers. It’s kind of bigger than that now in terms of the story that I need to tell. And being also expected to deliver a future vision continually when technology is changing so fast and helping people understand how the ways that humans interact with technology will evolve and what it would be like two years from now, four years from now, that’s getting increasingly more challenging because of how quickly the technology is moving. But that’s a big part of the job and how I have to keep challenging myself too. Growing as a design leader Peter: I’m curious what the mechanisms have been for you to figure out the nature of your growth. As in, trial by fire, you’re just thrown into a customer facing conversation and you have to make it work? Or are you getting mentorship? Are you getting formal coaching? And not just with that, but generally, like what are the resources that you turn to, to help you as, you’re trying to figure out what’s the next 20%, to use that conversation you had with your engineering partner. Like, how are you figuring out what it means to be better? What are the resources you’re drawing from to unpack that? Because this all new to you. Amy: Yes. Yeah, no, every day is new in some ways. Lots of resources. So I definitely, I definitely don’t sit back and just expect it’s all to come, you know intrinsically. So obviously feedback. I do welcome and, you know, get feedback from various different avenues to figure out like, how am I showing up? How can I improve? What does my team need? What are their expectations? What are leadership’s expectations? So I do welcome that and focus on that, certainly as one avenue. I have absolutely engaged with professional coaching all along the way, so that’s really important for me too, in various formats, different people. And I’m actually working with a coach right now that coaches a bunch of professional athletes, and that’s been really interesting too, because I do find, especially in these outbound facing roles, representing the company on stage or going into a high stakes meeting, like it’s very much a performance athlete kind of role, right? Like you’re under pressure. And you’re getting evaluated continually. It’s competitive. And the psychology behind all of that is really important, right? Like what are the head games that you’re playing with yourself that might be setting you up for success or not. So that’s been really, really valuable recently. And then I’ve got, you know an advisory board and friend group of a lot of other you know, UX leaders, design leaders and so on, that I continually nurture those relationships and friendships and their incredible sounding boards. And you know frequently in these roles, you’re the only one in this role, right? When you get to a certain point where you kind of the head of a function, it gets lonely real quick because no one else does what you do. And if they do, they’re probably at a different company. So you can’t necessarily like, disclose everything, but you can certainly talk about the leadership challenges you’re facing or best practices you might be using or what you’ve tried, things like that. So that advisory group of, other professionals in this space is incredibly important for me to continually nurture and learn from. Jesse: Amy, what conversations are you most looking forward to as we move into this next phase for design? Amy: I think what will be interesting is I do think the ability to design things will continually get more democratized, right? Like I’m sure you’ve seen things around generative UI, right? So anyone could describe an interface and it could be produced. You don’t necessarily need to know the tools, right? The Figma or the Photoshops of the world. With that though becomes obviously a lot of room for error for those who maybe don’t have the same design principles or fundamentals or understanding or gut instincts, for maybe things to happen that are again, like not usable or not great product experiences. So. I do think it’ll be interesting to see, like, do our roles shift from being doers to being those who design the experiences that shape good experiences, right? Which is kind of like the role my team is in. We create building environments like developer tooling, and we have a product called UI Builder, right? Where it’s the place where you can build user interfaces on our product. So how do we build the right expertise into those products or into the models that are producing the generative UIs to still guide and deliver great experiences. If I put it into a metaphor of like an orchestra. You’re moving more and more people out of the roles of playing the instruments into being the orchestra conductors, but they have to know how to bring all those things together and make music. So how do you train someone about what good music is and how do you teach that? So I think that’s like probably where it’s headed, where we’re gonna have more and more people that ultimately become the creative directors, the art directors, and they might have an idea and a vision. They may not have the classical art and design training. So how can you train that on the fly or provide that right guardrails? Amy: And maybe that’s where design expertise sits in the future. Peter: Hmm. Amy: What do you guys think? Jesse: I love that vision. I think it speaks to an evolution of design’s value proposition that potentially is a leveling up. Peter: Well, it, starts to beg questions. I mean, that kind of orchestration or coordination type mindset is how product management is often categorized, as kind of the chief corraller of cats, depending on the organization, the people don’t report into the product manager, but the product manager has some decision-making authority, but they’re there to really try to get the most out of their team. And so it starts begging the question, well, where does design and user experience end and product management begin? I don’t know if you have thoughts on that. Amy: I would say I think there’s places where those lines are blurring more and more, maybe more so than you might say between UX and engineering. Although I think those lines will blur too. This tooling is getting so powerful that given it’s all conversationally based and we all have conversation, right? We all have the power of language. We can all describe things. That becomes, again, a very like democratizing skillset. And the artifact that gets created, whether it’s code, whether it’s UI, whether it’s a product requirement document, matters less now. You don’t necessarily need the skills to create the artifact, you just need the skills to describe what you want. It’s gonna turn us all more into those visionary roles where you have to understand what the need is. I think there’s still tons of need for research and psychology and understanding how to empower humans, but bridging that, how to empower humans with the technology. The pieces that are in the middle of that, I think are gonna kind of merge together a little bit more, and there’ll be less distinction over the subject matter expertise of each part of that development process. Jesse: Amy Lokey, thank you so much for being with us. Amy: You’re welcome. It was nice to be here. So great to chat with you both. Peter: This has been fantastic. Do you like to be found, and if so, where can people find you? Amy: You know, I have to say I’m not a prolific poster of things aside for LinkedIn is kind of the main place I go. I worked there for a number of years. I love the product. I think it still provides a lot of value. So I would say anyone wants to reach out to me. A message on LinkedIn is always welcome. I am not so much on the X type of platforms these days, so I think LinkedIn’s a a nice place to converse. So I’d say find me there. Jesse: Terrific. Thank you so much. For more Finding Our Way, visit findingourway. design for past episodes and transcripts. You can now follow Finding Our Way on LinkedIn as well. For more about your hosts, visit our websites, petermerholtz. com and jessejamesgarrett. com. Peter recently launched The Merholz Agenda, his semi weekly newsletter. Find it at buttondown.com slash petermerholz. And if you’re curious about working with me as your coach, book your free introductory session at JesseJamesGarrett. com slash free coaching. If you’ve found value in something you’ve heard here today, we hope you’ll pass this episode along to someone else who can use it. Thanks for everything you do for others, and thanks so much for listening.
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Mar 23, 2025 • 58min

56: Design’s Role in the Evolution of Product Management (ft. Sara Beckman)

Transcript Jesse: Hey everybody, it’s Jesse James Garrett here. I wanted to let you know before we get into the show, we’ve got a special event coming up this week on Friday, March 28th, we are celebrating the 25th anniversary of the elements of user experience with a live 90 minute virtual seminar at 8:00 AM Pacific, 11:00 AM Eastern. I will be talking about the elements of UX in the age of AI. We’ll be looking at the connections between the history of user experience design, and the future of artificial intelligence. You do not wanna miss it. Peter Merholz will be there conducting live q and a. So please join us on Friday, March 28th. Get your tickets now at jessejamesgarrett.com. Stay tuned for another special announcement at the end of this show, but now on with the show. I’m Jesse James Garrett, Peter: and I’m Peter Merholz. Jesse: And we’re finding our way, Peter: Navigating the opportunities Jesse: and challenges Peter: of design and design leadership, Jesse: Welcome to the next phase. Joining us today to talk about what’s next for design is Dr. Sara Beckman, Professor at Berkeley’s Haas School of Business and longtime observer and commentator of the dynamic between design and business. We’ll be talking more about the legacy and impact, for better or worse, of design thinking, how design leaders should talk about metrics and how they shouldn’t, and what she’s learning from educating the next generation of product managers. Peter: Hi, Sara. Thank you so much for joining us. Sara: It’s a pleasure to be here, Peter. Peter: To start off, while I’ve known you for over 20 years, our audience doesn’t. And so I’m curious how you introduce yourself these days. Sara: It’s always a good question. I’m on the faculty at the business school at UC Berkeley, where I have, for multiple decades now, been teaching topics in design, innovation, product development, product management et cetera. I kind of hang out between two worlds there, between the College of Engineering and the business school. I was involved in starting up the Jacobs Institute of Design Innovation. So a lot of focus, I guess, broadly speaking, on cross-disciplinary work in the university, particularly as it relates to design. The ability to create new stuff, I guess. The Intersection of Business and Design Peter: Excellent. I’m going to dive right in to something I was thinking about literally yesterday, where I was attending a session, it was a webinar given by a design leader talking about the intersection, wait for it, of business and design… Jesse: ooh, Peter: And how it’s important for designers to understand, and to be able to speak in terms of metrics and stuff like that. And as he was talking, I was reflecting on work we did together over 20 years ago. So for Adaptive Path, you were kind of an advisor when we did a report on, at the time we called it, like, the working title was The ROI of UX, the official publication title is Leveraging Business Value: How ROI Changes User Experience. And the question I have is, why is it 20 years later we’re having the same conversation about how you connect design and business? Why doesn’t it feel like it has progressed? , Sara: Well, can I say something maybe a little provocative and say, Peter: Yes! Sara: Design Thinking got in the way. Jesse: mm-hmm Sara: So, 20 years ago, we were talking about, I’m going to call it real design. So, whether it’s UX designers, industrial designers, graphic designers, there was work that they did that we were trying to put value on. We were trying to say, if I make this product more usable, I can sell more of it, for example. So how do I make a connection between the deep work that designers are trained to do in design school, and the outcomes I can achieve with a product or service in the marketplace? Design thinking came along, and, in my opinion, it trivialized the work of real designers, I’ll call them, and we said everybody can do design and we had all these things going on that we turned design into, frankly, to some extent, soundbites. Oh, go talk to a customer and then design something cool and new. Nothing wrong with going to go talk to a customer. We kind of skip over a lot in design thinking the idea of actually getting insights out of talking to real customers and then designing to those insights. I’m put in mind of Barry Katz’ book on the history of design in Silicon Valley and how it evolved. First, started at Hewlett Packard, where I happened to work way back when, as really usability or user interface, right, design. And then as we moved into wrapping services around things, as we moved into software being the core of the delivery of capability, we migrated what design did, but design thinking was a whole different thing. And so was looking through your recent interview with Roger Martin and, thinking about what is design thinking relative to what design was about. Sometimes they call them little d and big D design. That implies one is bigger, better than the other. But we used to do that in manufacturing. It was big M manufacturing, which we thought of as manufacturing strategy and sort of the wrapper that went around manufacturing. And I think that was different than the actual execution of manufacturing processes. Somehow de-linked with design thinking, sort of the big D design stuff, we de-linked it from the actual actions of real designers. And that’s part of why people like Lucy Kimball talk about designerly thinking, as opposed to design thinking, because design thinking was a broader mindset and it left behind some of the roll-up-your-sleeves, we have real work to do here, because it made it seem like I could just draw a journey map and then design something, or I could just brainstorm for a bit, diverge, converge, and come up with something. No design process is that easy, right? I mean, you both know this from… Jesse: Right. Yeah. Sara: And so we left all that behind. Well, what’s the ROI of design thinking? First of all, nobody even knew what it was, right. I mean, you look at the academic literature on design thinking. I always felt like this was a bit of a tautological. Oh, well, let me go study companies that say they do design thinking and then I’ll define design thinking and then sort of over time we defined this thing called design thinking, but then next thing you know, design thinking isn’t just design. Oh, it’s also teaming. Oh, so design thinking is going to resolve all the teaming challenges. Like we, it just kept getting bigger and bigger without an anchor around what is this thing. It became bigger and undefined, but we also lost track of… design thinking, which is different than the practice of design, is not the only way to frame and solve a problem. And Roger talked about, well, scientific method is another way to frame and solve problems. Critical thinking is another way to frame and solve problems. Total quality management or DMAIC or Six Sigma, whatever you wanted to package all that stuff in, that was another way to frame and solve problems. Systems thinking is another way to frame and solve problems. And the design thinking proponents came along and said, this is the way to frame and solve problems. And it became, therefore, a fad, right? Because, because you can’t say there’s only one way to frame and solve problems. This is one of my great frustrations, honestly. So that’s what led me to the model that I’ve been using almost 20 years now, which is this experiential learning based model that basically says problem framing and solving is a process of sense making, toggling between the concrete and the abstract world, observing and noticing, framing and reframing the problem, and solution making, agains toggling between concrete and abstract worlds. Sara: I have a great idea in my head. I go try it out. I can put all of those other problem framing and solving methods into that model, which then led me to say, well, then shouldn’t we be teaching students, at a generic level, the core capabilities of problem framing and solving, and then have them say, ah, this problem could use scientific method approaches. It’s hypothesis-driven, right? I observe customers or users and I create a hypothesis about a problem they have. And then I go test that hypothesis by playing around with different solutions and prototypes. Scientists observe nature, maybe. We observe people in the design world, but they’re observing something and then forming a question about how it could be different. So, Sal Khan, in his book, One World Schoolhouse, his last chapter says, What if the university were a place in Silicon Valley that companies threw problems into and kids solved them for four years? And it took me a while to really kind of digest that notion, but I think, and by the way, it doesn’t have to be in Silicon Valley, and it doesn’t have to be corporate problems, but a general notion that education would really be about iteratively framing and solving problems of different types of different magnitudes over time with different methodologies. I think of different mindsets, different skill sets, different tool sets, right, that students would then learn in this setting. A systems thinking mindset, skill set, tool set is a better way to tackle this problem than in this other situation over here, where scientific method might be more applicable set of mindset, skill sets, tool sets. Taking The Time to Get It Right Peter: So you’re laying out a robust, detailed, savvy framework for approaching, tackling problems. What I’m wondering is, I don’t think I have ever been exposed to a company that would engage in the kind of rigor that you are proposing as they work through their challenges, and so, what’s the misfit there, right? There’s a misfit, I mean, you’re a B school teacher, I know you do exec ed. So you’re talking to people, not just students who’ve not necessarily had real jobs before, but people who are in the working world who are trying to get better at it, you’re engaging with folks with real world challenges. Square this, you know, thousand points of light, very robust framing of all the ways an organization can consider how to best tackle the problem in front of them. One of the reasons I think design thinking became popular is, in part, because by underselling design, it could be done quickly. And these companies just want anything that can be done quickly. They don’t want to spend a lot of time thinking upfront. You might not be familiar with this. There’s this saying “big design upfront,” which is like a bad thing, right? You’re going to spend three months doing all this work and designing, and then we’re going to get to start building it. So square the rigor and robustness that you’re discussing with what we witness every day with companies who are barely able to tie their shoes, much less engage in any meaningful research to inform how they solve problems. Sara: Yeah. I mean, I think that’s that’s a fair judgment. I teach hundreds of product managers every year. So I watch a lot of this. Clearly time matters, but there’s a couple of things that I try to do here. One is, you know, I used to teach design for manufacturability forever ago, my industrial engineer side of me used to teach operations management, and we taught a case study about a disk drive company. These are commercial disk drives, right? So they’re very, very high volume, low cost product, right? And this company was working in a partnership with Japanese company that was doing the manufacturing. And the engineers at the Japanese company would say, We need you to properly spec this product. And the engineers in the U. S. company would say, We don’t have time to properly spec this product. And the Japanese engineers ultimately won. They won over the ongoing complaints on the part of the U. S. product development team who they said they just want us to be able to put the parts on the table and hit the table and the parts will jump together. Like that’s ridiculous. But in the end they spec’d this product and they were able to ramp to volume manufacturing in way less time, way faster ramp to very high quality levels, because they had done some amount of initial investment. The parallel I draw to that in the design and product management world is that having some degree of clarity around what problem you want to solve for the customer or user up front will buy you a whole bunch of time in the long run, because you won’t keep putting the wrong thing into the market. Now, I’m not suggesting that I sit around and look at my belly button all day to do that. That’s where the innovation cycle comes in, right? I talk to a few customers. I take a step back. I go from dance floor to balcony. I get in the balcony. I say, what problem do I think the customer’s trying to solve here? Then I say, well, if that’s the problem, here’s three ways I could solve it. And I take those three ways back out, and I find out they don’t really have that problem. So I pivot, right? Or alternatively, I could say, I observe three critical problems that the customer has. I’m going to then generate ideas for each of those three problems, take them out, and figure out the customer’s going to say, I want to take that one home. Then I know I’m solving a problem the customer cares about. So the whole notion of rapid cycle prototyping is super critical here. But to frame it in terms of, I’m not just rapid prototyping to create the best product, I’m rapid prototyping to make sure I’m solving a problem that someone cares about, and there’s huge value in that, right? Jesse: What I hear from many of the design leaders in my leadership coaching practice is that their leadership is on board with many of the ideas that you’re describing. They are on board with being customer centered, with really listening for the right signals and tuning the product to the market in these ways. They just don’t see design as necessarily a partner in making that happen. And I wonder about design’s value proposition as it relates to this value that you’re describing because, you know, as you mentioned, you teach product managers how to do product management. And there are many, many people who see all of these things that you’re describing as being fundamental to the product management role, much more than to the design role in the organization. And so I wonder your thoughts on design, where design plays in these spaces. Sara: So that’s where I have to go back to this question of so-called little d design, right? I mean, product managers are generally not experienced or not taught or trained in doing UX design, right? So who is their partner, to be able to say, put this kind of curve on the product and this will happen. This goes back then to Peter’s original question of, you know, back 20 years ago, we were trying to characterize those kinds of connections, not this meta design thinking thing, right. We could have a long talk about customer centricity and whether companies really are or whether it’s just a lot of words and right, so, there’s a whole problem in companies. The Folly of Net Promoter Score Sara: I use net promoter score as my sort of measure of that. It has nothing to do with customer satisfaction. In fact, there’s no correlation between customer satisfaction or increased profit and net promoter score for any number of reasons. First, it’s ill constructed from a statistical point of view. It randomly eliminates 2 of the measures. It’s not even a proper average. I look at mine, I go, it got better and I think I’m good, but I don’t know that my competitors is 2 points higher than mine. In which case, getting better wasn’t really relevant. Peter: I like how for you, net promoter score, what it indicates, isn’t customer satisfaction, but a company that is kind of foolishly trying to engage in the idea of customer satisfaction. Sara: I mean, they think it’s an appropriate proxy, right? And I think that’s, well, it’s not an appropriate proxy for really understanding, are my customers now able to achieve an outcome better than they could before? Now, you might have a proxy for that outcome, right? But I want to have a way to know, have I actually helped my customer execute the jobs to be done that I intended them to execute. As long as you have these broader metrics, it’s very hard to connect what a UX designer does, right? I mean, I think it was an Adaptive Path conference where I put a DuPont chart up there. This is very old stuff. DuPont charts. Accountants would know what a DuPont chart is. Like, It starts over here with profit, which is made up of revenue versus cost. Revenue is price versus volume. So it basically backs all the way through financial metrics. And I put that out there and I said, “So where do designers affect this?” Jesse: Right. Sara: It could be at any of those levels. Remember Sam Lucente at Hewlett Packard. He had these multiple layers when he went in as the head of design. He said, well, it was clear that I had to do cost reduction stuff to prove my value. So I standardized the logos on all the pieces of equipment that HP sold at the time. Saved a boatload of money. Also, by the way, created sort of a standard brand identity in the marketplace. So he had, at one end, let me save cost, right, by good design, and the other end, he was working on revenue growth opportunities, right? If I can identify an interesting new need in the marketplace, then I’ll be able to grow revenue. Connecting Design to Business Value Sara: So to me, we have opportunities to make very explicit connections between what designers are doing. We had a discussion about the DuPont chart. And I was trying to get the designers in the room to think about the CMO, the chief marketing officer as their customer. And I said, what outcomes is the CMO trying to achieve and how are you going to connect the design you’ve made over here to helping them achieve those outcomes? And it was really hard to get them to do that. I can’t remember exactly the details now or I would tell the whole story, but, in effect the person said, yeah, but it’s Claudia Kotchka’s, you know, put a gold rim around the top of a face cream so I can put it in CVS or Walgreens and have it look more upscale, and everything, there. And the executive saying that cost two cents per jar, take it off. And her having to say, but then it won’t say that it’s… Peter: Premium. Sara: Premium, right? Jesse: Right. So, in some ways what you’re talking about are really qualitative outcomes that design creates in this increasingly, as Roger pointed out, as has frequently been a theme on this show, in an increasingly metrics-driven world. And I wonder what you see as design’s relationship to business metrics. Get Your Proxy Metrics Right Sara: So when we teach product managers, we try to have conversations about this. There’s a great case study, and this is kind of the classic case of Kodak. What was Kodak selling? Memories, and they knew that. What was their proxy measure for you to capture and share memories? Two core jobs to be done. Capture and share memories, right? Proxy measure, how much film and paper do we sell? So what happened to Kodak? They got too hung up on film and paper sales as the proxy metric, and when we shifted to digital, they didn’t shift their internal proxy metrics. They knew they were in the business of memories, right? They invented one of the first, if not the first, digital camera. they were on top of all these things, but when it came to execute, the metrics they had in place, they needed to be changed as a proxy for that. So mostly we use proxies, right? Like monthly average users. Well, you know, monthly average users is just a number that customers don’t care about. What did they care about: learning from the site, or getting a job, or whatever it is. So, how do I get proxy metrics? I’ve always hated sort of measuring everything myself, like it frustrated me when I worked in business, so I’m not not here to say, I think you have to be able to measure everything. But if you’re going to measure, then for heaven’s sakes, don’t use net promoter score, at least try to use something that gives you some information about the customers and whether they’re achieving something they want to achieve. And I think the Kodak story is a great example of knowing what you want to help, but not migrating or connecting metrics over time to the outcome. Peter: So you say, don’t use net promoter score. I agree. Many UX types agree. Jesse: I also agree. Peter: A few weeks ago a head of design shared with me that their boss, in an effort to give design some accountability, “We’re going to have you held accountable for net promoter score.” And this design leader was uncomfortable about that. I’m wondering what you would counsel someone, ’cause I can point to dozens of design leaders who are in a similar situation, what have you seen, if anything, that works to start changing that conversation? Shifting it, when you are also not the one in power, right? This is your boss saying this. Jesse: Right. Peter: You might be new. This person’s relatively new in the organization, right? Like, so they’re still earning trust, building credibility, like, there’s some things working against them to be able to just say, no, that’s not the right way to do it. It should be X. Any thoughts on how you turn that ship, to start advocating for what you do believe is right? Sara: Yeah. Many years ago when I worked at Hewlett Packard, HP at the time was divisionalized, had 50 or 60 manufacturing sites globally, which was a lot, and they were all very small, and so we were trying to provide some evidence that consolidation of those sites might be useful, so we made a cost volume curve. And where was HP? Above the curve, on the steep portion of the curve. So we start showing this to people and we say, hmm, opportunity, right? Increase volume, reduce costs. Oh, no, we do better quality work than that. Okay, how many quality engineers would you like me to add to the curve? Jesse: Hmm. Sara: And it would move up, you know, a teeny, teeny, tiny amount and we’d go at it again. For a year, we had these conversations. Until one of the very senior, senior guys said, wait a second, how many engineers do we have working in each of those sites? I said, well, it’s like two per site. You’ve got a hundred across the company, but the two, whoa, if we put them all together, we’d have an awesome printed circuit board assembly site. Like, okay. So it took me a year to get there. Two morals of that story for this conversation. You’re not going to change the boss’s mind overnight. But you keep bringing this up. So there’s a whole bunch, there’s articles–the wallet allocation rule. There’s a whole bunch of articles out there, first of all. So I would start with, there’s evidence of the problems of using net promoter score, right? So I can put some of those out there. But probably more importantly, I would start trying to build up some understanding of how I can create a metric that connects more closely to what the customers and users are trying to achieve. So I would start thinking about, is it weekly active users in the example views, or is it weekly learning users? Ah, well then if it’s weekly learning, what do I actually watch people doing? Do they scroll more? Do they post more? What evidence would I have that they’re actually on the site learning something? So I would start to build up a conversation around what can we replace this with. If you’ve got to have a metric other than revenue, right? If you’ve got to have a metric, then what metric might I have that would allow me to connect to something that is the agenda that I think I have for helping customers and users. Jesse: And it takes time. So part of this is patience. I’m new here. I’m not going to walk into my boss’s office, although I’ve been known to do stuff like that, walk into my boss’s office and say, you know, this is dumb. You should think differently. But, you know, building up a case. Maybe being able to collect some of that data, maybe talking to the data scientists and saying, if I wanted to construct a metric that evaluates memories, whether they’re shared and whether they’re captured, do you have data that could help me do that? So why don’t the designers make friends with the data scientists and say, you know, if this is something I would like to be able to evaluate, do you have a way to help me do that evaluation? So we begin to get little better integration. You talk about organizations basically falling in love with their proxies and becoming so attached to their quantitative measures that they forget what those quantitative measures were intended to stand for, which had to do with some sort of different kind of qualitative impact. Jesse: I work with lot of design leaders who are basically trying to break that spell of having fallen in love with those specific quantitative proxies. The challenge with that is, and I love your suggestion that like, don’t try to convince them to become a qualitatively driven organization, just give them different proxies, better proxies makes a lot of sense. The attachment that happens in these organizations is often connected to financial incentives. It’s often connected to power. And design leaders often find themselves literally the least powerful person in the room when having these conversations about how we measure the value of the work that we’re doing together. And I wonder about your perspective on the arguments that are going to hold water in a situation where you are the least powerful person in the room, arguing for everybody else in the room to change the way they measure their success. How do you do that? Find Your “Trojan Horse” Move Sara: It’s hard. There’s no… it goes back to my HP story, like, I couldn’t change the whole company. Jesse: Right. Sara: I could only change it one person, one division at a time. And so we used to talk a lot about, what’s our Trojan horse move, what’s our subliminal messaging, like how do we create shifts in thinking over time. And the kinds of things I use with product managers are, I can’t implement a big thing all at once. I have to often start small. So what if I open every meeting with a customer story? Oh, I was talking to a customer the other day. You know what they were doing with our product? What if every time somebody came to me with a feature they want me to build, I said, cool, happy to consider it, what’s the customer going to do with it? What problem are they going to solve with it? So there’s a whole lot of really simple little things, and design thinking did contribute a whole lot of these, but I can change my own behavior, and then what happens, you start to hear other people starting their meetings with customer stories, or you start to hear other people saying, but what problem is this solving. But we have, to your point, incredibly entrenched behaviors in organizations. And I’m going to take that all the way back to where we started this conversation, standardized testing and the way we structure our school systems has caused us to reward people for quickly having the answer to a question rather than saying, wait, is that the right question? Or rather than saying, is there more than one answer? We’ve got behaviors like that, that have been entrenched since middle school? Before? You’re not going to change those overnight, right? This is the whole thing I have about problem framing and solving, right? And, Roger sort of describes it as scientific method, analytical, but we’ve trained a generation of people and then we rewarded them for those behaviors. It’s not going to change if we’re just talking at this big level about everything. It’s going to change because we model behavior changes ourselves. So when I teach not just product managers, but executives, this is what I talk about. Say, you can’t ask the people in your organization to do ABC if you’re not acting that way yourself. But they don’t even know that they’re acting that way. So they need to be, in effect, called out on it in a nice way, right? So I would literally, at HP, my boss would do stuff in a meeting and I would walk up to him afterwards and I’d say, don’t ever say those words again, because here’s how they are heard. Don’t ask people to do X. Suggest that they do Y. Or, right, like I was trying to do literal behavior change work with him in order to get some of these changes in behavior, so it’s, you know, it takes systems thinking. It’s a big systems problem. This is not going to get undone overnight. I’m sure you’ve done this in your coaching. How many times do you have somebody, you know, you say, oh, well, you should be customer centric about that. And three seconds later, they’re telling you what feature they want to put in the product, Jesse: Right. Sara: And you go, what problem is that solving? And they’re like, Oh, it’s hard. It’s hard. Jesse: Yeah, so it’s interesting because it suggests there are several layers of the kind of culture change that’s really needed in organizations in order for design to genuinely deliver on its value proposition, because you’ve got to evolve the way that the culture engages with decision making. But you also have to evolve the way that the culture engages with problem framing and problem solving… On Being Customer-Centric Sara: And measuring itself. And, right? The reward systems. It all has to align around achieving… That’s why the customer centricity thing, there’s actually not as much academic literature on that as you might think. It’s kind of surprising. If you say, Oh, are you a customer centric CEO? Well, of course I am. I talk to customers all the time. Like about what? Oh, well, that do they like the curvature of this or did they like this feature? No, I don’t want you to talk to them about that. I want you to talk to them about their lives, about the problems they have about, right? We don’t have those kinds of conversations, but we think that because we shared a roadmap with the customer that we’re customer centric, right? It’s not. It’s not. But if you don’t get down to that level, and they’re just going to go, well, we are customer centric. And I work with some large companies where they’ll, “Oh, we’re customer centric.” I go, okay, write an interview guide to go learn something about your customer. And we’ll get specific about X kind of problem. And what do they write? “What’s the last product you bought from us? Did you like that product?” “What do you…” right? Like they’re not able to get into a mindset of learning, not selling. Of being present with a problem as opposed to with the solution, so it’s incredibly hard for them, but they think that because they’re talking, I mean, particularly in a complex B2B large technology kind of company, they are out talking to customers all the time, but they’re mostly talking about the features they’re developing. Not about the problems those features are aiming to solve. Peter: More proxies. Sara: Right. you know, to Jesse’s point, why is it so important that this change now? And you probably read Experience Economy… Jesse: mm-hmm. Sara: Pine and Gilmore stuff. Jesse: Mm-hmm. Sara: I really like the trajectory it lays out, which is to say, Commodities, the only differentiation is price, right? So coffee beans the value is can I get them at the lowest cost? Then I make goods, grind up the coffee beans, put them in a can. I’ve added some value to the end customer. Services, I’ll make the coffee for you and serve it to you at Denny’s. Now I’ve added more value to the customer. Staging customer experiences. Now I’m, you know, at the Starbucks level of coffee where it’s the third place, there’s more going on than the coffee. They’re now writing another book on guiding transformations. It used to be that most of the companies I taught were somewhere between goods and services. Now, most of them are trying to migrate to designing experiences. And very recently, people are starting to talk about guiding transformations. I cannot do experiences and transformations well, unless I truly understand what I’m trying to help my customers accomplish. Jesse: Mm. Sara: So, the trajectory we’re on, that trajectory is true. That increases differentiation and personalization, therefore increasing my opportunity to capture value, right? So there’s an economic return to increasing the value I provide to the customer. Then we have no choice but to go through the cultural shift that you’re suggesting, Jesse. And that’s kind of the broader argument that I’m trying to get people into, like, where do you want to be on this spectrum? You know, companies also talk about, well, hmm, sometimes we went to goods and then they got commoditized. So we went backwards. Oh, huh. I don’t know that I want to do that very often. Sometimes I might have to. But how do I always have my eye on the possibility that I might add additional value and differentiate in some way. Embracing AI Sara: Now, why is that being driven so fast? Because AI creates all this possibility to create, to stage experiences, to guide transformations. But if I’m looking at it totally internally, I’m just going, how do I get AI into my product? So what’s everybody flocking to these days? Courses on how to put AI into their product. Rather than asking the question, how do I augment my ability to stage customer experiences or guide transformations? AI will spit out a customer journey map for you, which, this is another place we talked earlier about, how do I get people to do this? I don’t have to spend time on this. It used to be I had to go interview a bunch of people. By the way, I’m not saying not to spend time with real customers. That’s a whole other conversation. But, but it used to be that I had to spend months to get an as is customer journey map, and now I can get one in less than a minute. Are they always right? Are they always complete? No, they’re not. But in my experience in the last year or two, they’re pretty good, and that means I’ve had a lot of people try out prompts to get a customer journey map, and they can get a pretty good starting point. Ah, if I can start there, now I’m playing a whole different game, because I don’t have to say, I don’t have time to blah, blah, blah, blah, right? I can start somewhere. I can get a list of jobs to be done. What’s the customer support engineer trying to get done when resolving a customer issue? Here’s all the personal jobs to be done. Here’s all the professional jobs to be done. Do I still have to go play with that and say which of those jobs to be done would I like to support? What does my product support now? What are my competitive products support? Yes. But now I can do it with, more real detail. Now, none of that is quantitative, right? You’re talking about a qualitative list of jobs to be done. I might try to do a quant evaluation, like how do I match up to my competitors on the ability to do those jobs for customers. That’s why I want a partnership with data science people. Now I’ve got to get creative. And how do I take that existing experience and make it a whole lot better? So you’ve also got a whole bunch of questions about what are the roles of designers in a world when some of the artifacts that they’ve created historically, I can create pretty quickly now a first draft of. But now, now you’re in a cycle. Now I can go in with a first draft, I can say, you don’t have to pay me for six months of work… Jesse: Well, there’s a catch in there though, right? Because the AI can make the journey map for you, but it can’t sell it to the executives for you. You’ve got to be the one to make the case and to frame the deliverable in some larger meaning, which comes back to this quant versus qual thing that we’ve been talking about. But it also comes back to the notion of culture change, and the notion of organizational evolution that is a part of this. It is very common for design leaders to see themselves as organizational changemakers, as champions of a different way of thinking about decisions, a different way of thinking about prioritization, a different way of thinking about how you go to market as a business. And you know, what I’m hearing reinforced in what you’re saying is that, like, you’ve got to really not just bring the data, but you’ve also got to bring the persuasion on a human level, to bring people around to this mindset as you describe it. The challenge that I hear from my clients is they feel like as design leaders, they are not sufficiently empowered to actually drive the mindset that is required to create design success. And again, coming back to the fact that you are not a design professor. You are teaching product managers. I find myself wondering about those design leaders who are asking, Am I even in the right place to create what I see myself creating in this organization as a design leader, or do I need to be somewhere else in order to actually accomplish these outcomes? Create Your Own Power Sara: Let me first say it is not just designers who say that. Product managers say that, you know, lots of people, so that’s not an uncommon concern. Part of the challenge we have is that the world is moving way faster, particularly since COVID, and we hit the knee of the technology change curve. The world has been upended. The people who are running the companies today have no experience in this new world. I would guess if you talk to some number of them, they’re terrified because… Jesse: hmm. Sara: …they don’t have the tools, the sense of what can happen. And so we’ve got real conflicts between the top of the organization and the people doing the work. And the people who are doing the work often know more, but are feeling disempowered and I think part of it is this challenge of things are moving so fast, you can kind of get it. Even at HP when things weren’t moving that fast, you know, those of us more junior grew up with more technology then the people running the company, and so for them to be making judgments, they actually didn’t have that empathy, if you will, for what was happening out in their customer’s world. So, so this kind of goes back to, create the power for yourself. I mean, no-, nobody’s going to come to you and say, I empower you to change how I think, right? It just isn’t that way. Now, you could be in an organization that you should leave. And I assume that you coaches help people figure that out. Like if you’re pushing rope uphill, you know, there’s a point at which, don’t do that anymore. But I ran the change management team at Hewlett Packard, right? Nobody said you’re empowered to help the company improve its teaming, change its product development process, improve supply chain management. I figured out that those were things that needed to happen, and went around and found places that would experiment with me. I don’t have to change the whole company at once. I just have to redesign one product, and show that redesigning one product increased acceptance, adoption, whatever it is, right. So change doesn’t have to be, oh, they don’t understand me. No, they’re probably not going to, until you find that– I’m gonna go back to my thing. I didn’t get that they cared a lot about consolidating engineers, not about consolidating production, right? Boom, I was telling the wrong story because I wasn’t listening to my senior management team. That’s the same thing at the Adaptive Path conference where, you know, we were having somebody pretend to be the CMO. The designers who were sitting in my group weren’t listening to what the CMO cared about and creating a connection, right? it also goes to the whole storytelling thing, right? We teach storytelling a lot in product management. Why? Because, as our storytelling faculty member says, when you open with data, people receive it with their dukes up. Where’d you get the data? How’d you analyze it? Why are you sure that’s the average? Start with the Story, Then the Data Sara: If you open with a story and then provide the data, it’s heard in a different way. Even in companies that have very data driven focus, and I think, increasingly, in the product management space, I was just with a bunch of them this morning on storytelling, and one of them said, when we have a product that’s languishing, I use storytelling to figure out whether I should just kill it or what I need to do to fix it. Because you can’t tell a good story if you don’t have a good story to tell. Peter: Hm. Sara: So it’s in the structuring of the story that I’m testing… “Once upon a time, there was a customer who really wanted to and could not do so because…” If I can’t tell a compelling, right, problem, then I don’t have something. So I would link these things together, right? Like, how do I bring the qualitative side? And I’ll come with data. “Once upon a time, there was a customer who really wanted to do this, couldn’t do so because, and by the way, there’s 400, 000 of those… Peter: right. Sara: in the United States alone.” Okay, now I’ve got my data. But you can’t expect it to happen overnight. I mean, that’s thing that I think is so… it just doesn’t, it just doesn’t. Peter: Right. Sara: So I’m a big “guide on the side” rather than “sage on the stage” as an educational concept. And so to do guide on the side work, you’re gonna have a classroom that has tables and chairs, not the amphitheater style, right? And so I used to go to these meetings about our new buildings and I’d be like, no, we’ve got to have flat classrooms. And it got to the point where I was in some meeting and it’s like 10 minutes into the meeting. So he goes, “Sara, you haven’t brought up the space problem yet.” So that’s what happens, right? Mean, to me, that’s what you have to sort of, with humor, be a bit of a pain in the neck, you know? Oh yeah, what problem is that solving? Oh yeah, what problem? Pretty soon you start to hear it back again and they’re not even attributing it to you, which is the other part. You can’t take credit for it, right? Because, you’re just trying to get them to understand something and eventually it’ll click and then they’ll say it in their own terms and you’ll hear it come back. You go, well, I’ve said that. That’s right. Peter: You’ve mentioned your work with product managers. Sounds like you’re teaching them working with maybe dozens, if not hundreds of them over the course of year. And I want to take advantage of your distinct kind of opportunity and perspective that that gives you, and I have a question which is, What are you hearing from them? What are the patterns you’re seeing in product management and with product managers? What are the things that are keeping them up at night or what stage are we at with product management? I’m, just kind of curious as you look at the world of product management from your point of view across dozens if not hundreds of people from a lot of different enterprises. What have you witnessed? What insights do you have that could be of interest to people who are working with product managers and who don’t necessarily understand the challenges that they’re facing? Sara: By the way, we have some number of designers who show up for the product management program. So it isn’t just product managers, we have fair number of technical or, engineering managers who show up as well. And I think it’s in part because they would like to understand a little bit better how business cases are being made for this. So, first, let me say, because I’ve always been in this boat as long as you’ve known me, or maybe even before, I’ve always taught human centered or customer centered development, right? That’s what we taught at Berkeley in the MBA programs. And that’s really how we anchor the product management program. So, yes, we teach segmentation, targeting, positioning, pricing strategy. But the Trojan horse, if you will, is it’s all customer centric. So the first thing I would say is that companies used to push back heavily on that, let’s say, 15, 20 years ago. A lot of the stuff you’re saying, Oh, no, we can’t do that. My boss would never let me do that, etc. There’s a lot less of that now. In fact, it’s pretty rare. I can credit design thinking with that, if you like, that there’s been enough conversation and agenda around some of these first principles of customer centric work, and adoption of things like rapid prototyping, although aside, we teach risky assumption testing rather than minimum viable product, because there are often assumptions you can test without a minimum viable product. So rapid prototyping has become minimum viable product instead of risky assumption testing. Jesse: Right. Sara: So being clear about what are the risks associated with the idea that I have for creating a new customer experience, and how might I test them, could lead you to, I’ll test them through a minimum viable product, but it doesn’t have to lead you there. But most companies don’t get that until you really push them. This is another one of those things where you can push them at a micro level. It’s like, what do you want to learn from making that minimum viable product? And often they can’t even tell you, because it’s just built into their agile process that they all spit out minimum viable products. These are all the little things that, if you could get that mindset to shift, then you end up in a different place. So that has definitely changed. And there’s a lot more acceptance of customer centric thinking on the part of product managers. The second thing that’s really big is that, of course, the field of product management, as you probably well known, has grown significantly. So there are a lot of product managers now. I don’t remember the numbers on LinkedIn, but it’s grown significantly. That includes not only the classic externally facing product manager, but it also includes a lot of internally facing product managers. So they might manage a platform on which products are built for that external customers or users. So, product management is sort of propagated in a lot of ways, which is probably why you see it encroaching more and more on what designers do, because, theoretically anyway, the product manager’s job is to bring together the customer with the engineering community, to make stuff happen, right? It’s more complex than that, but they’re supposed to be a representation of the customer. I would say in big companies, most of them have CX/UX design group, but it’s not always accessible. So you can’t get your project in there unless it’s prioritized in some way. So not everybody in the organization feels like they can get to those capabilities. B, very often what is produced is a bullet point list of things to build. So it’s not bringing alive the existing customer experience or the experience they want to build. Dorothy Leonard at Harvard used to call this empathic design. That I have in the guts of the engineers empathy for the customer. Well, if the CX design group is doing all that, but it’s not presented to the product manager in a form that allows them to use it to create that empathy, right, then we’re missing a connection. So the product managers are not really doing that kind of design work. Like many of them don’t interview customers. Somebody else does that. Which is too bad because they should be out in front of customers themselves. So this becomes the place where your question gets messy in the sense of, first of all, who does what, but then, where’s the connection between the two? I had a PhD student write an entire thesis about this question of how I present the results of design research to the people that will execute the product and not lose something in the process. So this could be another reason why designers feel left out, because maybe the bridge, there’s a gap, like something’s jumping across from the customer experience group into the PMs, but it’s not really a connected thing, like, could they bring the PMs on interviews with them? They probably should once in a while, right? So the PMs can actually see the customers. Do they help digest the data with the PMs? Probably not, right? What’s Next for Design Jesse: So, I wonder what all of this suggests for the future of design. And I’m curious what you think and what you see from your vantage point, in terms of what’s next for where design is going in organizations. Sara: Yeah, designers have very particular skill sets that are not generally present in the rest of the organization. For example, the ability to conduct a good ethnographic interview with a customer or user. The ability to create representations of an offering, whether it’s an experience, a service, whatever. There are capabilities that don’t exist elsewhere in the organization. Jesse: So what you’re saying is they have a very particular set of skills. Peter: Ha! Sara: That are important, and the question is, how do they get embedded in the organization, right? How and where? So, do product managers really understand… And this goes back to, in 1993, a woman who was a fashion designer in New York came to get her MBA, and after she took my operations class, she came to me, and she said, shouldn’t business people know more about design? And I said, sure, start a class. So she started a full on three unit class called Design as a Strategic Business Issue. And, Davis Masten, Jerry Hirshberg, Sara Little Turnbull, Bill Moggridge, right? Like, name people in that world. They came with their 35mm slide trays, and they showed what designers do. And it was eye opening and mind blowing for the MBA students. That class isn’t taught anymore. Partly because Design thinking came along, and so we started teaching design thinking, and now we’re not teaching what those critical skills that designers bring are and what they produce, right? I mean, there’s all kinds of stuff that we talk, oh, in design thinking, we do visualization because we put post its on the wall. Well, that’s not the same as, you know, my friend Michael Berry sketching what a new drive-through would be for a fast food company while everybody’s talking about it, right? And so part of the challenge then becomes, how do I make clear what those unique skills of designers bring to an organization. Then I would also ask the question, if I centralize something, then it’s not part of the fabric of the organization. So do I need a UX designer on every single team? Like does every product manager need one? I don’t know. Do they need at least consulting with one once a week? Maybe? I’m throwing this out there because I don’t know if anybody’s even asking those questions, probably the two of you. But, how do I bring that skill set to bear when it’s most valuable and needed? Right now, my sense is that it’s separate out there for a lot of big companies. It’s somewhere up here and maybe I’ll get access to it, right. And by the way, rapid testing of things is primarily A/B testing that’s owned by engineers, or MVPs that are owned by engineers. So this capability to do early testing is not embedded in the organization. But the agile feature mill is a fast cycle, but I lose the front end then. Like, product managers works gotten sucked into the agile feature mill. Well, ditto with any front end design work, right? So the question is, where do you want to embed those capabilities, as opposed to thinking of them as people? I know they’re people and they’re wonderful people, but really thinking about what is the capability set? What are the jobs they can help with? And where do I need to have those jobs done in an organization? And then how do I make that happen on the front lines, as opposed to in a big, you know, hand wavy way, which we kind of get stuck in, don’t we, when we talk about design? Jesse: Dr. Sara Beckman. Thank you so much for being with us. Sara: It has been my pleasure. Sara where can people find you? I’m reachable on LinkedIn. I just would ask if somebody reaches out on LinkedIn that they tell me why they know me. Peter: Not just a message that says hello. Jesse: Mention the podcast. Mention the podcast. Sara: Mention the podcast. There you go. and I’m also available by email, which is just Beckman at Berkeley dot edu. Peter: Awesome. Thank you so much. For those who have stuck around, we have a special treat for you. We have revamped our website at Finding Our Way dot Design, and we have also launched a new online community through Discord called The Way Station. So go to Finding Our Way dot Design. Click on the link that says The Way Station, and you’ll see a link to our new Discord server. Hope to see you there. Jesse: For more Finding Our Way, visit findingourway. design for past episodes and transcripts. You can now follow Finding Our Way on LinkedIn as well. For more about your hosts, visit our websites, petermerholtz. com and jessejamesgarrett. com. Peter recently launched The Merholz Agenda, his semi weekly newsletter. Find it at buttondown.com slash petermerholz. And if you’re curious about working with me as your coach, book your free introductory session at JesseJamesGarrett. com slash free coaching. If you’ve found value in something you’ve heard here today, we hope you’ll pass this episode along to someone Else who can use it. Thanks for everything you do for others, and thanks so much for listening.
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Mar 8, 2025 • 54min

55: The Maker Mindset Connecting Product, Design, and Engineering (ft. Todd Wilkens)

Transcript Jesse: I’m Jesse James Garrett, Peter: and I’m Peter Merholz. Jesse: And we’re finding our way, Peter: Navigating the opportunities Jesse: and challenges Peter: of design and design leadership, Jesse: Welcome to the next phase. Joining us today to talk about what’s next for design is Todd Wilkens, part of our leadership at Adaptive Path years ago, who has gone from design leadership to product leadership to fully integrated leadership of design, product, and technology. He’ll talk with us about his increasingly holistic view of product development and leadership, the signs that an organization is right for him as a leader, and what the C suite really talks about behind closed doors. Peter: All right. So this is a little different than the conversations we’ve been having recently, ’cause this is one with an old friend. We are joined by Todd Wilkens. Todd worked with Jesse and I at Adaptive Path many years ago, helped lead our Austin office, and then went on his way and we have him here today because his journey is one that we find potentially illuminating as we explore what are paths forward for design leaders. So, welcome Todd. How are you? Todd: I’m doing good. It’s really great to talk to both of you again. It’s been a while. From Design To GM to Product Management Peter: It has been a while. And yeah, if you could share just like your story beyond Adaptive Path and kind of that evolution you’ve had from design leader to whatever it is you call yourself now. Todd: Sure. Yeah. So I think actually Adaptive Path was a place where I had a very pivotal thing happen, which was I moved to Austin and opened the second studio, and had to kind of own part of the P and L for the company. There was a little piece of the P and L, but I was still running part of the business all of a sudden. And I learned from that, that there are a lot of challenges when you try to run something holistically, instead of just doing a part of it, you know? And I, I ended up kind of liking it. And so I say that because that, sort of is the theme of my career path now. Which is, I left Adaptive Path. Went to the Mayo Clinic doing design work. Left the Mayo Clinic, went to IBM when they were doing that big design kind of transformation some years ago, also doing design work there. But within that change at IBM, we realized we needed to change some of how product management worked as well, because you can’t just change the design stuff. And so I spent my last year at IBM actually sort of masquerading as a product manager. I helped redefine the product management practice for all of IBM, and thousands of people there at the time thought I was a product manager, even though I was technically a designer, right. And then I kind of went on this path where I went to Atlassian as a designer, VP of design at Atlassian. And then this was the moment where I was like, the holistic thing really kicked in, which is I had this opportunity to go become the GM of a business. So I moved to a company called Automattic. They do WordPress and I became the GM for WooCommerce. It’s one of the biggest e-commerce platforms. And did that for a while, which was really amazing. And I learned that… I learned a lot of things. I learned that I don’t get up in the morning excited to do all the business stuff, even though I can do it well, right. I was there for two and a half years. We managed to grow at, it’s like 40 percent the first year, a hundred percent year over year growth the second year. It was like, the business was succeeding, but I got up in the morning, excited to do the engineering and the product and design stuff. So I kind of moved my way back into product and now I’ve done a series of chief product officer, chief product technology officer jobs at a variety of different companies. What I’ve realized is the theme on my companies is I like growth stage companies, typically that sort of series B, series C, there’s somewhere between 100 and 250 people there. They figured out that they have product market fit, but everything is kind of like held together with duct tape and bailing wire and now they want to scale it. And so they have to figure out how to do that. And I like to work in what I’ve started calling invisible industries. I work almost entirely in B2B and they’re always industries that make the world work that most people don’t know anything about. So like shipping and logistics, employment, payroll and benefits, quality and compliance for life sciences. I really love those. They’re intellectually challenging areas to work, but I haven’t been a designer officially since 2013, 2014. All my titles and jobs have been general manager, product, chief product officer, chief product technology officer, ever since then. So I, definitely, I sort of jumped ship from the design world officially, though, almost everything I do every day is, completely influenced by my experience as a designer. Peter: Sure. Jesse: I’d love to hear more about that because, you know, so many of the design leaders that I work with as a coach, they look across the other side of the aisle and they see these other functions and they don’t see themselves in it, you know, they don’t see the ways that they’re used to delivering value, the ways that they’re used to engaging with ideas, the ways that they’re used to engaging with problems. They really don’t see those things represented in these other areas, in these other titles that you’re talking about. And so I’m curious, how has the designer in you stayed alive as the problem set and the problem space has changed over the course of your career? Todd: Yeah, well one thing I will say to that is that in my first forays into being a product leader, I definitely sort of struggled, because what I tried to do was do the product leadership thing the way I saw other people doing it. And I really didn’t like it. And it turns out I actually wasn’t very good at it that way. And through a lot of mistakes, I realized that I needed to find a way that was very authentic to my understanding of the world, how I see truth, how I make sense of the world, how I do things. And so I sort of have crafted a sense, a way of being a product leader that is very designerly. It’s not only designerly, it’s doing the things that I’ve always done. So, very… dig deep into research, understand the problem, both the problem of the customer and the problem of the organization that I’m in charge of, right? It’s a very human science kind of attempt to understand and then articulate what we’ve learned and what the major parts, major levers are that we can work with to accomplish a goal. I’ve learned over time that while I like to think abstractly, and will write and that sort of thing. I do my best work as a leader when I’m making things. So, I’m a much more hands-on leader than I think some people would think. Not like I’m in there always, you know, I don’t open up Figma and start designing the screens or whatever very often. But I do get in the weeds on things and I spend time making things to… either prototyping stuff or what have you. And I find that that helps me stay grounded. It helps me understand what I’m doing in a way that’s really, it’s just, it’s richer, right? Like, I’m not just thinking about it, or it’s like the difference between when someone says they’ve read about something versus they’ve done it. Jesse: Mm-hmm. Todd: I feel like a lot of people switch disciplines and get high enough up in the ladder that everything is like, well, I read about that, or I thought about that, or I understand that, but they don’t take the time to do the practice, to do the thing that needs to happen. And so the level of understanding they have is not very rich. Whereas I think designers, like, they make things, right? That’s it’s like, so core to how designers do things. And I feel like especially since I’m not the sales leader, right. I’m not the chief marketing officer. I do product, design, and engineering for the most part. And so they’re all maker disciplines really anyway. So having that maker mentality, the leadership level is a good balance. But I do think that sometimes I approach things in an unusual way because people often don’t expect me to behave the way that I do as a leader. I’ve had several people tell me that they’re usually happier about it, but they’re usually surprised. Leading Product in Unexpected Ways Peter: And, what is that expectation that you’re flouting specifically, like what are they expecting you to do and what are you doing that’s not what they expected? Todd: Yeah. So like, when a growth stage company hires a chief product officer, it’s usually… one of the most important things is that they’ve been struggling to articulate their product strategy and roadmap. That is almost always one of the things that is missing. And people assume that one of the very first things you’re going to do is come in and like, start to lay that out. Like, you’re gonna talk to a lot of people, and you’re gonna, you’re gonna create the diagram that tells the story. And so people assume that that’s what I’ll do, and that then I’ll try to get people to execute on that thing that I put together. So that’s what they expect. And what I usually do is I show up and I spend the first couple months, like, just going to the, to the sprint meetings, like, and, I go into JIRA and I start digging around and looking at what’s going on and I just try to pull the stuff that’s in there up. I like, I really want to bottoms up it. Like, I don’t want to start with some weird abstract thing. And the reason for that is because something I, feel like I sort of learned when I was at IBM was it’s like one of my mantras, which is you have to execute well in order to earn the right to do strategy. Jesse: Mm. Todd: And so I always start off by saying, are we executing very well? We’re not. And I was like, all the ideas we have, we could be working on my first six months, none of them are bad ideas. The concern we have is which one is the best one, but I don’t care. Pick one of them and let’s execute on it really well. And then pick another one and execute it on really well. And then we’ll worry about finding the absolute best thing to do, right? Because if you spend all your time worrying about the strategy and you can’t execute it well, everyone is disappointed by that situation, but most people expect that from a leader, right? Most people expect the leaders to be telling stories and making diagrams and that sort of thing. And I do do that, but I always start with, how do we make things? And one of the reasons I will say is because I’ve tried to get the team to fall back in love with making good stuff, because that goes a long way. If I can get the engineers, the designers, the product managers to fall back in love with making good stuff, then they’re ready for us to figure out what the strategy is. Jesse: So the phrase back in love suggests to me that somehow they’ve fallen out of love. And I wonder, what you see is the dynamic there. Todd: Again, engineering, design, and product are all making craft kinds of disciplines, right? So these are almost always people who got into what they’re doing because they liked, they like to make things. They’re usually driven by some sort of passion or creative endeavor, right? But then they end up working in a place where they don’t see the work they’re doing coming to fruition. They don’t feel like they’re connected to what the company at the highest levels is saying or doing. And so what they start to do is become a little insular. Like they start to lean in on their disciplinary stuff. They’re like, I can’t really deal with the cross functional stuff, but I can be a really good designer now, or I can study product management skillset. And I can learn how to do all the, whatever the GIST method and the whatever method into this, right. And I can get really, really good at whatever, you know, like, doing AI and, like, prompt engineering, ’cause it’s an interesting thing to do that’s technical. And that’s not really what they got into this for. They didn’t get into it to get good at a craft, though the craft is good. They got into it because they saw what the craft was able to accomplish. And, so that’s what I mean. They usually fall out of love. it loses its shine. It’s also one of the reasons cross functional teams stop working well. It’s because they don’t know how to work well together when there’s not a clear direction and they don’t have a clear process for working well together. And so they become disciplinary insularity as well. You get to that, the designers really want to talk to the designers, and the PMs want to talk to the PMs, and the engineers want to talk to the engineers. So it’s a love thing to some degree in that sense, also, I think. They need to fall in love with their teams again. Operating as Scale Grows Peter: So it’s funny, I’m having this conversation less than an hour after I spoke with a design leader of a company, that’s probably series C. 300 employees. Exactly the kind you were talking about, and what I identified when I was talking to him as as an issue they were facing was one of scale. They were wanting to operate as if they were 100 or 150 people, but the reality is there’s 300 people, and I’m wondering as, since this seems to be your sweet spot, when you go in and you see an environment like this, where there is that desire to get back to the love, but where my intuition would be scale is probably the issue here, right? It’s big enough that you need to put some processes in place, some communication and coordination standards in place that maybe they’ve been fighting. And because they’ve been fighting it, they’re now kind of almost operating at cross purposes. How do you get them to, as you said, execute, execute, execute, or get back to execution at this and help them recognize that this, new waterline that they are operating at requires some different ways of working, but by embracing some new different ways of working, they can get back to kind of the magic that they once had when they were smaller. How does that conversation go? Todd: Yeah. So I’m a back to basics kind of person, right? Like I use very simple frameworks for things, which tends to be good. So like what you end up finding is that up until, I don’t know, company gets to like 200 person range, they can actually swing a whole lot of things based on just intuition and people talking to each other on a regular basis without a whole lot of real process. And then what happens is they’re not thinking about what they’re doing and why they’re doing it. They’re intuiting their way to making decisions and intuiting their way to what seems to be the right approach or the right thing to do. And if you ask them to describe what it is they’re trying to accomplish, they can’t very easily. And so in that situation, I’m like, Hey, this is a little bit chaotic right now. Let’s just get back to basics here for a second, okay? What are we doing? What are we trying to accomplish? And I literally break it down. I’m like, the only thing that matters for our company is new customers, expanding with current customers, retaining customers, right? That’s actually all that matters. And I was like, it’s that simple. And I said, so let’s just talk for a second. Is everybody in the product development org and sales and marketing, are we just really aligned around how well we’re doing on that? Like, can anybody, tell me how we’re doing on that? And then we eventually get to the place where we can. And then I say, great, what can the product organization do to bring in new customers, expand with current customers or retain customers? And what’s interesting is like most people in product development organizations have a hard time answering that question in any specificity. They have these kind of random things. It’s like very hypothesis, but like not good hypothesis. They’re like, well, we think if we did this, it would kind of grow new customers, because there’s a giant TAM out there or something. And I always like to just take people and say like, no, like literally, let’s just take the three biggest initiatives that we worked on in the last quarter, before I got here, or that we did, and just say, what’s the real hypothesis that we had about why this was going to bring new customers in, retain customers, or grow or expand the current customers? And what’s interesting is you start to walk that back. And then, because then the next thing they’re like, Oh, well, here were the hypotheses. I was like, well, did it pan out? We don’t know. Well, that’s terrible. Or yes, it did. I was like, well, that’s wonderful. No, it didn’t. I was like, that’s not so good, but we learned why didn’t it pan out? Right? Like we have this conversation, then I really have to tell them, I was like, all that you should be doing as a product development organization is defining what are the initiatives we’re going to do. And I use the word initiative very explicitly. It may include multiple teams in a 300 person organization. It will include multiple teams, right? But the initiative has to be directly tied to one of those business goals. And then you start to break it up and you start to execute on it. So I do that. And then the only other thing I ever do, this is the love part, actually, quite honestly, and gets people is I always say, when somebody starts to get big and the first time somebody starts to put process into a product organization, they usually start with things like ticket burndowns and how many commits from each engineer and they start looking at, like, these in-process metrics, and I usually walk in and I say, “Hey, everybody, I don’t care how many commits, I don’t care how many things you shipped, I don’t care any other things, I only care about, if you made something and a customer or a colleague is using it. And if you have some sense there’s value from it. That’s the only thing you should care about.” And so I just start championing the outcome. You made a thing and people are using it, which is back to the basics of what most people did when they were a startup that had five people. They’re like, Oh my gosh, our first user. It’s amazing, right? Right. That can exist to a 10,000 person company, but people lose, they lose sight of it, right? And so that’s how I take them as I say, we’re going to put some process in place, but the process is based on super basic things, customer growth and retention. We have initiatives. We have clear hypotheses about those initiatives. All we care about is outcomes. All we care about is shipping a thing and getting it into someone’s hands and knowing whether or not it did a good job. And then people are like, Yeah, let’s do that. And then we just start to say, well, where are we failing? Oh, we need to get a little bit better at the way we track JIRA, or we need to do a little bit more of this or we need to get really good at instrumenting the code because we don’t know how we’re doing or who’s using it. Like all that process stuff falls out. Like people just start doing it. I don’t have to tell them to do it because it’s a natural implication from the fact that we’ve aligned around this kind of cross functional product outcomes kind of approach. And like I said, used in a small company, but it works… you can take this to whatever scale of company. You just have to make sure the company gets out of its own way. ‘Cause sometimes it’ll get in its own way you lose that culture and you lose that approach. Jesse: Yeah. So you talk about the importance of driving alignment and really creating a sense of shared purpose for the team beyond the immediate metrics that are sort of presented to them. I wonder about the nuts and bolts of that, you know like how do you in the day to day actually engage people with these ideas, actually help them believe in the things that you’re saying and keep them motivated through the process. Of trying to create these outcomes that you described. Soaking in Salesforce Todd: Sure. So The first thing is this is one of the weird thing I realized about myself in the last year or so is that I spend so much time in Salesforce. Peter: I’m sorry. Todd: Yeah, well, so you can say whatever you want, but that’s where the rubber meets the road for our customers, either, you know, landing new customers, what have you, right? So I spent a lot of time in there trying to understand what the dynamics are. And I say that because that’s the first thing I tell the product development team, all the designers, all the engineering leads, all the product managers, is I said, “If you can’t just tell me off the top of your head what our numbers are? If you haven’t looked at Salesforce at least twice this week, right? There’s no way you can have a conversation about any work that you want to do.” And it’s not like I’ve forced that on them. I’m just like, we can’t talk about anything you want to do. ‘Cause nothing you do matters unless it relates to those things. And so I start with that and then you can start to break it down almost like social scientific, right? Like you can start to say, well, we have an initiative that we want to focus on. We’re growing new customers. Growing new customers is usually a matter of… the mechanics are relatively straightforward. Do we need to improve conversion rates? Which in my experience, there’s a couple of things you can do there. Are there certain features that it seems are missing, that come up in the closed-lost all the time. Let’s go out now, that’s a signal. That’s a very rough signal, which you can take that signal and then you can go off and do some deep research and understand what are those jobs to be done? How do we know what’s successful there? Some companies can get very sophisticated, but most of them actually hide behind sophistication, right? Like, I think any company can go a long way if they just truly measure adoption of anything they ship. Like really measure the adoption, and you have to know what adoption means, right? I’ll give you an example. I was working with this company called Qualia, we make a quality compliance software for life science. In that situation, it’s very document centric. There are lots of documents. And so when someone hires us, they usually have thousands of documents that they need to migrate into our system. And it’s not the same thing as, like, copying something in. It has to get modified into our sort of format. And it used to take our onboarding specialists, like, weeks to do that. And, that was bad for them. And it was really bad for our customers. ‘Cause our customers, like they just were kind of sitting and waiting. We talked to one of our product teams, I was like, we need to solve this problem. How are we going to do it? And they said, okay, they went in and they started looking and they were like, well, what is it, how do we solve this problem? And what do our onboarding specialists need? And what do our customers really need? They wouldn’t define their own metrics because they went in and looked at what’s going on. And what’s interesting is the metric they defined was, they said, it turns out most customers are bringing in, let’s say a thousand documents, but in the next six months, they’re going to use 20 percent of them. And they actually already know what 20 percent it is because of the dates on them. And because of the stuff that they’re doing. So, we’re going to focus on migrating this 20 percent in a couple of hours. And then we’re going to let them ad hoc bring the other ones in as they need them really fast. So we took something that would have taken two weeks down to taking a day. And the team defined that metric by just going in and figuring out what really needs to be done there. That’s a super designy design research thing to do. It was such a design research kind of project to go do that, but it was not just the product team because our onboarding specialists were as equally involved in that, project as we were, cause they had to change the way they worked when we updated some of the tools and updated the approach. Jesse: Well, you talk about scale, right? And the difference between the scale of 150 and the scale of 300 is that at 150, you’ve got a shot at directly influencing everybody, at least according to Dunbar. And then you get beyond that, and it’s like, you’ve got to wield some more sort of indirect influence. You have to wield cultural influence. You have to wield influence through things like strategy, things like roadmaps, things like milestones. And I guess I get curious about what the hands on work of leadership looks like for you when this is your job. What does a CPO do all day? Todd: Yeah. Yeah. So, I, what do I spend my day doing? Like, if you want me to, you know, yeah, Yeah. sure. So I am in… I probably spend Jesse: hmm. Todd: a third of my time during the week in either Salesforce or Looker, digging around to make sure I understand what’s going on. And part of the reason I do that is because it keeps my hands in the weeds of the work. But it’s also ’cause that’s something I’m particularly good at. I have a social science background. So I spend a third of my time in there, partially ’cause it’s a skillset I have that a lot of people on my team don’t have, and partially because it keeps me really close to like, what’s really happening. I spend another third of my time in mostly group meetings. I usually try to keep my direct reports down to close to like four or five. So I have one on ones with them, but I run almost everything as a team instead of with unilateral or bilateral kind of interactions. So I find that it’s really helpful to just any part of an organization, I tend to just pull everybody into a weekly working session. And we have a set of tools and things that we prepare for that. And we go through it for half of it. And then the other half of it is ad hoc deal with issues. I have those group meetings. That’s how I manage the teams. And then I have one third that is blocked off as focus time with zero plan. Jesse: Mm hmm. Todd: And then, that is for me to fight fires or to dig in on something that allows me to think about something that’s way in the future. Like that’s where I do my strategy thinking a lot, my own kind of research. And then sometimes that’s when I go and like, review a thousand SOWs or whatever, right? But I’m pretty good about those three parts of my day. Parts of my week. Peter: When you mentioned Salesforce and Looker, I mean, a third, that’s like 12 hours in tools, what are you… Todd: yeah. Peter: What are you getting from that? What makes it worthwhile to spend 12 hours a week fiddling with user interfaces on these tools to understand what exactly, and then coming out of that, what does that then drive in terms of what follows from that? Todd: One of the things that I think product teams have a hard time with, and then this is another thing that design really taught me, is they have a really hard time with ambiguity. They have a really hard time of having lots of questions and not having answers to them. And they usually lack confidence in the sort of pseudo answers that they’ve come up with. And so they’re usually uncomfortable making a decision about something because they haven’t sufficiently reduced the risk that they feel around making that decision. And so that is something that I see kill organizations of all sizes. And so the reason I spend a lot of time in those two data- centric things is because that’s where I can get questions answered for myself or my teams so that they don’t feel afraid to make a decision, to move forward on something. And I’m trying to model for them that they don’t have to understand the thing perfectly. They need to understand it well enough to reduce the risk. And so I do a lot of that over time. I spend less time doing that because the teams start doing it. But it takes quite a while to teach a team to feel confident of knowing just enough, to make the decision to move forward. So that’s why I spent a lot of time in there. I mean, I’m doing this as much for my colleagues, the other C level people on leadership teams. Like everyone in these situations is often uncomfortable making a decision. And what you end up finding is that a lot of people won’t make a decision, or they’re like, they push it off because there’s uncertainty, or they make a decision almost like because they trust their intuition too much, right? Like there’s those two kinds of leaders really, in a sense, like, they’re like, I’m always right because it’s me, and I’m not sure if I’m right because I’m too humble or I’m too risk averse. There’s a lot of those. And so I’m often trying, that’s what I’m helping with my teams, but I’m also helping with my fellow executives is saying, no, no, no, right? Like, my intuition doesn’t matter really. We’re not gonna make a decision just ’cause my gut tells me, and we can make decisions without perfect knowledge. And so that’s where all of our knowledge tends to lie. That and talking to customers. I mean when I can, I talk to customers a lot, but usually I’m talking to customers when there’s a problem because of my role, as opposed to getting to just go talk to them when things are going well. I wish I talked to more customers when it was going well. Leading Design as a Former Design Leader Peter: I’m going to get back to something that relates to this conversation I had with someone who’s just joined an organization that is operating at scale, a design leader now, new to an organization that hasn’t really embraced what it means to operate at this scale. And so what I’m finding myself wondering is, how you articulate your expectations for your team and, considering the nature of our podcast, we’re about design and design leadership, you know, what is your relationship with your head of design? How do you… Jesse: hmm. Peter: …set expectations for them? What are you looking for them to provide? Like, what is that dynamic now that you’re on that side of the conversation? Todd: That’s a great question. I struggled with this for a while. When I first started what I’ve done, over the course of the last, let’s call it six, seven years, I’ve been slowly developing a sort of career framework for product development. It covers engineering, product management and design. It’s a skills matrix. It talks about competencies and skills. It defines the different roles and what the expectations are and the levels of mastery of all the skills of the different ones. And I’ve been kind of modifying and working on it, but I use that a lot. And what I tend to do is, I bring that to the team pretty quickly, because I think it sets out expectations really well. Like, these are literally the expectations I have for you and your role. Here’s what it looks like for you to do the role that you’re in. Well, these are the skills and competencies and you’ll execute them in this kind of way. And I think it’s relatively straightforward. And what I usually do is I say, take this, it’s a table. Add a column, rate yourself one to five. And then I’m going to go chat with a couple of people around the organization. And then I’m going to rate what I think for you one to five and we’ll just have a chat about it. Like, how are you doing, right? And we align on what the expectations are pretty quickly that way, but it has nothing to do with my subjective understanding, right? I’m just like, I use this and they look at it and they’re always like, oh, that makes complete sense. And I’m like, great. It’s not my opinion. Let’s just use this. It usually fosters a really good conversation. But to get really specific, okay. The thing I have done over time is I have learned that if you really value a cross functional team as the core unit of getting stuff done, 50 percent, at least, of the competencies that you have, need to be shared across engineering, product, and design. They need to be measured on the exact same competencies. And they’re things like user understanding, strategic thinking, communication, collaboration. But I break them down and I literally use the exact same ones for all three of the disciplines. And then there’s a set of craft skills that are usually very specific to the discipline. And I found that that is also quite amazing because now most people have the same expectations from me, but from each other. And so that’s a very specific thing I have started doing that I found very powerful and works really, really well. And most of the time, it’s the first time for designers in particular, because we’ve always been trying to get the seat at the table, right? It’s always, the perpetual conversation about designers. And so oftentimes a design leader, when I tell my expectation is that you’re going to do all these things, many of which you’ve already been doing, but just so you know, your engineering leader peer and your product management leader peer have the exact same expectations, all of a sudden they’re like, Oh, I’m at the table, right? Like I’m not, I’m not cordoned off doing something special that only I can do. There’s a set of those things, but mostly there’s a set of shared understanding about what we as a leadership team are expected to bring. That usually works really well for the people I work with that work for me that are design leaders. Peter: So your career kind of gives lie to the whole idea of roles, right? You’ve been very fluid with your roles over time. And the structures that so many organizations place, I think, you’re an indicator of those things are fabrications. And so I’m wondering, as you’re talking about how you’ve set up this professional development career matrix… Todd: mm hmm. Peter: What role roles play in your organization? Because if everybody’s sharing 50 percent stuff, you could just call them product developers and put three to five people in a room and say, have at it, come back to me, when you’re done. Like, where do you see the value of role distinction, given just how much fuzziness you’re trying to encourage. Rethinking Roles Todd: That’s a great question. Yeah, yeah. So the craft and disciplinary background plays out a lot. Let’s say I have 10 competencies for every one of these roles. And let’s say six of them are shared. So there’s four that are specific, that I call a craft competency. Even though it’s less of the competency number, it still plays a huge role in what makes each person bring a unique thing to the table, right? Even though they should share a lot. And so I found that no one is really great at being a generalist at everything all the time. You know, like, I’m a little bit of a successful, dilettante generalist, but I still really, there are things I just don’t do that well. And there’s some things I do really well and I can acknowledge that. And so there are certain kinds of jobs I probably shouldn’t have. Like, I don’t think anybody wants me to be the CTO where there’s also someone who is a CPO. That would be a bad role for me because engineering is something I can help run. I understand engineering well enough, but I only do it really well when it’s combined, right? And so I’m just going to acknowledge, like, that. So I think that what’s important about the role backgrounds is also that what makes a team really effective is the diversity of experience and skill that they bring to the table. And so the roles matter because you can’t make a product with five people with a product management background. You also probably can’t make a successful product for very long with five people who are all engineers. You can, but, it’s less likely. Same thing with designers, right? You need the disciplinary backgrounds, partially because of the skill sets and partially because they’ve been and done different things. So the roles are important. They’re just not the most important thing, right? They help you find people. They help people figure out what path they want to chart for themselves. Where do they want to lean? Where do they not want to lean? What’s expected of someone in a different kind of role? It makes it easy for people to move between a management track and an IC track. It makes it easy for someone to say, I’d love to try product management. And I’m going to be like, great, here’s what’s expected of you, and here’s what’s different from what you’ve been doing. Let’s give it a shot. And after, you know, six months, we’ll go back and assess you and see how you’re doing, right? And a lot of people try it and go back because they realize the craft part of it is something that matters a lot to them, right? But my cultures that I set up do not do a great job of having a lot of folks who are just really, really, really deep in a single thing. Having some is great, but like ratio wise, right, the bigger the organization is you want to have, I don’t know, like, 60 to 80 percent are going to be people who are a little bit more generalist, and then you may have a couple of like super deep design researchers, super deep, whatever, AI prompt specialists, super deep, whatever, market research, or, you know, product management specialists in some special place, right? Over-specializing often makes it hard to collaborate. That’s the reason that I talk about shared competency a lot, because I think collaboration is most important thing. Jesse: I’m glad to hear you talking about this because this has been such a huge theme in my coaching work over the course of the last couple of years with design leaders, as I have been really advocating for them to advocate for being measured on shared outcomes across functions. And for there to be really, you know, shared success cross functionally. And often I meet resistance from design leaders who find that if they don’t have something that is unique to their team, that is their particular value that they deliver that nobody else can deliver, they lose their voice, they lose their power if it feels like the outcomes are shared. In part, sometimes because it makes them vulnerable to having that power simply taken away by other people who can claim those same outcomes. But also I think that it comes back to the sense that their own seat at the table is itself a result of them having kind of created a moat for themselves around their own value delivery in the organization. And I wonder if you’ve encountered this mindset and how you’ve addressed that in the organizations that you’ve built. Todd: A thousand times I have, yeah, like that is such a common thing. And it’s a really hard question to answer but I think there’s two parts. One is the expertise versus effectiveness kind of statement, right? A lot of people establish value in organizations by demonstrating their expertise. And that is a totally valid and very common way for any discipline to establish value. Jesse: Especially a craft discipline. Todd: Correct. Correct. Yes, exactly. And so the fact that that has happened makes complete sense. And a lot of organizations actually explicitly value expertise. And so the organizational culture, the DNA of the culture actually encourages people to lean in on their expertise. What’s interesting, though, is that the vast majority of companies really only care about outcomes when it comes down to it, which is effectiveness. And so the challenge there is twofold. One is the person, if they’ve defined themselves by their expertise versus their effectiveness, it is a great personal risk to ask for shared outcomes and to change things. There’s a personal sort of, like, overcoming fear, taking a risk, trusting in your own value and changing, evolving, but frankly, that flower is not going to grow in every garden, right? It requires an environment that can also support that thing. And that’s actually often the hardest part. This is one of the reasons I don’t go work at big companies very often. Like, I haven’t worked at a big company for a while. And it’s because I’m usually very disappointed by the fact that most big companies take on this, like, expertise focus. It’s like incredibly sort of bureaucratic and like big lines are on disciplines and that sort of thing. And I find that I don’t know how to fix that, right? Because I’m never going to be the CEO of a big company. But I don’t want to go to a little company, which is why I like the growth stage, because there’s an opportunity for me to step in and create a culture that is pervasive. And then people have this opportunity to sort of blossom, right? And it can be done. My one tangent to this that’s really interesting is, I also learned… In between jobs a couple of years ago, I was thinking about what I wanted to do next. And I was like, maybe I do want to go back to a big company somewhere. Like, I liked working like at IBM. I really loved working at IBM in a lot of ways. And I started interviewing, and what I realized was that nobody knew what to do with me, because I did a lot of things. I didn’t fit into the mold, but the other thing was that was when I was looking at a middle management job. But I had really great success talking to companies that were relatively large about C level jobs. I just sort of jumped past the middle management part because the middle management is often in so many organizations settled on this, like, it’s just very segmented and whatever. But companies would hear the culture I was trying to build, or I’ve had built in overall product development organizations, and they’d be like, we need that. So come be our CPO and help create that culture here. Because they recognize there’s just no way for me to even have a chance at it unless I’m there. So I have this kind of weird spot where, like, I know I’d only take C-level jobs in what most people consider a smaller company, but like there are several other companies that were two, three, four, five thousand people that I talked to in the last couple years about C level jobs also and got really close to taking them. But I had no luck at anything that was like a VP. No one had any idea what to do with me as a VP anywhere. What does the C-Suite Discuss? Jesse: Earlier, you talked about the conversations that happen among the C level and among design leaders who… not many of them actually find C level roles for themselves. They are usually on the outside of those conversations. There’s this intense curiosity and this kind of like wondering about like, what are they talking about in there? Like, how is the conversation different at the C level from how it is in these other levels in these organizations. Todd: That varies a lot based on the organization. I mean, the things people talk about, like the topics, all conversations I have ever had in C level, like leadership teams, you’re doing a review of revenue. You’re doing forecasts about sales. You’re talking about budgets and that sort of thing, boring stuff, but that makes the company run. You tend to be talking about major customer escalations and issues. And then people have like a period of time to have the fun conversations, which is usually something like, let’s talk about strategy. What are we going to do in the next quarter or the next couple of quarters? And those are the topics in almost every place I’ve ever been. And that’s also this for board meetings, right? Those are kind of the topics for board meetings often to less of the strategy stuff, more of the reporting, but there’s still a bit of it. Boards kind of want to talk to you about some of those same things. But what I found is the people in those meetings, the people in that leadership team, the nature of the conversation is really different, Jesse: Mm-hmm Todd: right? Like some people go through it, like they’re going through a checklist. It’s like we talked about this. We talked about this. We talked about this. Okay, great, let’s go, you know. And when it gets to strategy, like, what’s interesting, how do we figure out the strategy, right? Here’s what I think, right? And then other places are like, why is this thing happening? I think this is happening because of this. Let’s go confirm that. Because if so, we need to do X, Y, and Z. Like some of them are very… get in. And then when they talk about strategy they want to, like, start where what the customers are asking for, or start with, like, a BHAG, a big hairy audacious goal that they’re trying to get to, and then work back from that, and say like, Oh my gosh, we have to do something completely different if we really want to make that happen. I’ve been in leadership teams that worked in very different ways. Some are more functional, some are less functional. But the things you’re going to talk about are exactly what I said. Jesse: Mm-hmm Peter: You mentioned middle management earlier, and this is something Jesse and I’ve been kind of exploring over the last however many years we’ve been doing this podcast, if not longer, is, as designers grow within an organization, they are often living under an assumption that the people in the C suite or executive level and above know what they’re doing, and there’s a rationale and there’s evidence that’s driving decision making. And then when they hit that middle management, that kind of director level, they look around and they’re like, oh, it’s kind of a bunch of chimpanzees flinging crap at one another. Maybe not that bad. But, like, what you’ve seen as you’ve had your evolution, like, was there an aha moment… Jesse: how much crap was flung at you anyway? Todd: exactly. Peter: If you’ve maybe even had it, but I’m assuming you did right where it’s like, okay, I have this suite of tools, but I can’t just tool my way to success. There’s a dynamic here that I have to learn how to be part of. And how have you developed, embraced, engaged that dynamic in order to succeed where simply kind of reasoning out no longer was enough to quote, I don’t know, win an argument or whatever. Todd: Yeah. So I can draw a really good thread here from actually my days at Adaptive Path. So we did a lot of really interesting design research work at Adaptive Path, helping companies do some kind of risky things. Like usually they came to us and they were trying to do something they’d never done before. And so they really wanted some help understanding that. Some people go do, like, design theater. Like, we go talk to a lot of people and come back and tell you some interesting stories and run some workshops. And you feel, like, something massive, really amazing happened right? And then some people, I think some companies, and I think Adaptive Path always did this was we took it really sincere. Like, we were, like, we want to deeply understand this thing that you’re trying to face. We believe wholeheartedly in the truth we’ve uncovered, and we want to help you make a good decision, at least that was the way I approached it and I felt like that was true for the company. So that’s kind of my thing, like, we have to just feel like there’s some real truth we’re trying to get to here and we need to hold ourselves accountable for it and we can’t just pretend. And so that is a core piece of how I do almost every job I’ve ever had, but as a leader, it’s especially true. And so what happens when I join a leadership team is that I start using that. I’m usually like, Oh, this team has some pretty clear understanding of what’s going on with their business and their customers and some ideas about what to do with it that are grounded in some evidence. And the pieces fit together. And then sometimes I walk in and I’m like, Wow, there’s a couple people here who are very smart and very loud, and they have convinced everybody that they know all the answers. And so people just do what they say, and they don’t really seem to have a lot of evidence around at all. It pivots around a lot based on the person’s thoughts or feelings for the day, right? And in both of those situations, I always establish that we need some evidence and some truth here. I always start off with the like, I could be wrong here. And if I’m wrong, I want to be right. I don’t want to win the argument, right? And, I start a conversation about that. And what ends up happening is either it goes really, really well, and I can give them some tools. I often use design research tools, like, and design tools, like collaboration tools, like how would we work collaboratively on this thing, whether it’s like post it notes and whatever, or we do it digitally or whatever. I use those tools to bring us together to work so that happens. Or I get organ rejection. People are like, we don’t want to work that way, Todd. And… right? Like, basically, and I’m like, well, I gave it a shot, Jesse: I’m in the wrong place. Todd: I’m in the wrong place, right? And, that’s okay. That is okay, right? To me that’s actually the biggest interesting, let’s say, risk I’ve taken by becoming a serial CPO, CPTO is that I’m always coming in and taking someone’s baby. They give me their baby and they say, raise my baby, and they’re either gonna be like, “Thank you, you’re better at this than I am,” or they’re gonna be like, “You’re not raising my baby the right way. You need to leave,” right? And you can’t know these things before you get into it. But I don’t change the way I interact because I know that it works. I just have to find the right environments for it to work in. Identifying the right environment Jesse: So what are the signs of those environments? You know, you’ve talked about some of the things that you’ve identified in terms of an environment that sets you up for success as a leader. It has to be kind of a certain scale at a certain stage in its evolution. And lots of leaders have their own sort of moments that are the right moment for them to engage with an organization, which is like, I’m the right first leader for an organization, I’m the right 10th leader for an organization, or somewhere in between. Todd: And I’m curious about not just that part of it, but really the telltale signs that you have been able to detect. You had a lot of conversations with people about jobs you didn’t take, right? What were you listening for that helped you know that this was a place where you could do the job the way that you saw yourself delivering the most value? So there’s a few things that I tend to look for. Todd: So one of them is, I’m looking for companies where the business mechanics are not complicated. Everybody on the leadership team, everybody can just tell me, this is how our business works, basic mechanics and here’s it’s profitable or is very close to profitable. That’s why it’s a good business. That is the thing I always look out for. If, most people can’t explain to me kind of how the business works and where the margin is, then I’m usually worried that that’s an organization that will not hold up to investigation from me, and we can’t rest everything else on that, right? ‘Cause like I talked about, like, basics of the business are important to me. If I can’t talk to just almost anyone, they can’t explain it to me. That is a telltale sign for me that there might be an issue for me. The other thing is a sort of culture of transparency, which is, if, in my interviewing process, like NDA and whatever, right, if someone’s not willing to open up the spreadsheet and show me the last three quarters worth of budget, spend, sales, with all the warts, if they’re not willing to be like, oh yeah, I got it, let me open up, let’s talk it through, that is often a sign to me that is not going to be a good place for me because I’m a very transparent, right? Like I, grew up in that era of the internet where like everything’s a collaborative tool and everything’s open by default as far as I’m concerned. And so I use that as a sign. And then for product development in particular. When software’s involved, the ratio of engineers to everybody else is always quite high. And so understanding the engineering culture is really important. And so I always look for signs that the engineers are not insular. They are actually open to true collaboration, because they will always be able to circle their wagons and win compared to everybody else. There’s just so many of them. So, I always look for signs of that. I talk to senior leaders, and then I try to always talk to at least one, like, just engineer and just get a sense. How do you work? What do you think about these people that you’re working with? Sometimes I’ll ask them to show me their Slack. Like how are your Slack channels set up, right? Is most of the engineering conversation in a hashtag engineering channel, or is it, or is it in a, right? Or, or is it in a, product team channel, right? Like, these are really simple things that I can just ask somebody to do. And if somebody’s like, no, I’m not gonna show you my Slack, then like that gets back to my transparency thing. Those are signs that I find that I can work really well with a company, if that’s the case. But if you don’t see those things, I tend to find that I’m not a very good match. Jesse: I’m imagining that there are a lot of design leaders out there listening to this, who are excited about the possibility of wielding the kind of organizational influence you’ve been able to wield, to be able to step into the kind of authority you’ve been able to step into, but have a hard time seeing what the next step is for themselves, or in particular, I think potentially feeling bound to the identity of design in a way that makes it hard to step out of and let go of. And I wonder what thoughts or reflections you have for those folks on your trajectory out of design as a formal responsibility toward this. larger holistic sphere that you now take ownership of. Todd: I mean, the first one is going to sound maybe trite, but it’s like, you have to be a little bit more confident than smart, a little, you know, like you have to be willing to do something that… you have to take a couple of risks, like calculated, but you need to be willing to take some risks to do something, like, so I, like I say, one of the most foundational moments in my entire life and career was when I convinced y’all to let me go open a second studio in Austin, right? And like, it was a terrible idea for you to let me do that, but, but you’re willing to give it a shot. Right. Like I was going to go run part of the P&L and I’d never done that before, but I tried to lower the risk for you. You let me try it. But the fact that I was able to try that thing and work it out, that moment of being, like, I owned, part of a multi-million dollar P&L for a little while, was a toe in the door to a lot of other conversations I was interested in approaching later and that was a big risk I took. And then I’d say the other thing is, like, in all honesty, the first two or three kind of like VP level design and, actually, product type jobs I took, I kind of really screwed them up a lot. And I was able to, like, look at myself and be, like, I’m really screwing this up. I need to really reflect on why I’m screwing this up. Like, they gave me the shot, which is amazing in and of itself. But I was like, I actually need to get good at the thing that they gave me to do. And once I was able to really acknowledge that about myself and look for the places I needed to improve, and how to talk about them to other people, that was a huge win for me, in being able to change my trajectory, right? Like, in this sense, I almost like cheated my way into the job, in a way, like, you know, song and danced in my way into the job. And then I had to get good at it. So I say that in the sense of like, not everybody can do that, but that was the best way for me to do things. And because like, I, said, I’m kind of designery, like I got to go start making the thing. I got my hands in it and that’s how I learned how to do it. I could have read a whole bunch of books, but it was never going to get me there, like trying it. But I had to be willing to have it blow up a little bit, and be self reflective about when I was doing a good job or not. The craft of Product Management Peter: I want to go back to something you said earlier and tie it to something that Jesse and I have been talking about for 15 years. So earlier you mentioned, you know, kind of the three roles within product development, design, product engineering, maybe, you know, if there’s 10 skills or capabilities or whatever, they share five or six of them. And then four or five are specific to the craft. Todd: Hmm. Peter: That begs the question. What are the craft skills of product management? I can imagine. I know what the craft skills of design are. I can imagine what the craft skills of engineering are, but always get stuck on the craft skills of product management, but I then find myself wondering, this harkens back to something Jesse and I’ve been going on about, this phrase, the experience is the product, right? And that, what we are delivering at the end of the day is an experience for our users. And so I more recently have turned that into product management and user experience being very similar. User experience, not design, but user experience being very similar. And so I’m wondering, kind of, where you have arrived at in terms of what makes product product, what are those four or five things, and then what is product management’s relationship to user experience, maybe different than a product development team, or would you argue that the whole product development team is responsible for the user experience? Todd: The latter. User experience is one of those like just general, that’s the outcome. It’s a shared outcome of characteristic of the product or what have you. I think the team should be sort of essentially equally responsible for creating great user experience. ‘Cause great user experience is a mix of: Does this solve a real problem for me? Does it address a job to be done? Does it do it in a sort of delightful, usable, whatever way? And then is it very responsive and reliable and elegant? Like all the pieces fit in to make a great user experience. I do think product managers need to think a lot about user experience. I encourage all my product managers, I always say, when you’re putting together the early stages of an initiative or piece of work, if you haven’t sketched something out, you haven’t thought about it enough. Peter: Which of course would make a lot of designers very nervous when product managers start drawing, but that maybe.. Todd: It’s a, it doesn’t have to be pretty, right? And when I say sketch the thing I mean in particular, I’m like, if you haven’t thought about the flow of screens and steps, if you haven’t thought a little bit about how the thing you’re imagining kind of fits in, you’re not really doing your job as a product manager. Like you don’t need to work out all the details. And in fact, your designer will probably be better at it, but there’s no way that you’re going to have a conversation meaningfully if you haven’t engaged in that a little bit. I tell product managers the same thing about engineering. I’m like, if you haven’t thought or can’t sketch out the basic architecture of our product and what the basic objects are in the database, you haven’t thought about it enough, right? If you don’t have an opinion, at least a little bit you probably haven’t really thought about it enough. I don’t want you to code it. But you got to care about it enough to have thought about it. And so if you roll that back, then you start to say, well, what does a product manager do uniquely? Since I’m just talking about stuff they share. So my trite answer is I always tell people I think of product management as a maker job, not a manager job, even though it has the word management in it. And so people say, well, what does a product manager make? And I say, they make decisions and they make clarity. That’s what they make. They make decisions and they make clarity. And when I say they make decisions, they actually make decisions possible. They don’t have to make the decisions. They make clear decisions possible. And then they make clarity for people. They reduce ambiguity. They, you know, Brandon Schauer used to always say like crushing ambiguity. That’s a product manager’s job. Designers do this really well too. Engineers do this really well too. But for the product initiative as a whole, it’s fundamentally the product manager’s job to make sure the pieces are all getting pulled together, the ambiguity is being crushed, so that we can make decisions together. And so, I look for things like: Can drive decisions with a cross functional group of people. And that kind of grows from, you can set up the characteristics and criteria for decision. And it moves to, you can drive the decision with your team members, to you can help drive decisions across multiple teams to where you can drive decisions with executives, right, like as somebody grows in their group. But that decision making drive is really important. Can reduce the ambiguity and create clarity around user needs, business outcomes and feasibility decisions. But the idea there is that they have to be able to make the decision criteria and the decision super clear, right. If anybody’s sitting in a room arguing about whether their perspective is the right one or someone else’s, the product manager has not succeeded in making the decision criteria clear. Because in most cases, the decision should almost make itself, right? In most cases, it should never come down to who’s got the biggest paycheck or who’s the loudest person. And if that’s what’s happening a lot, then your product manager is not succeeding at making the decision criteria clear, to reduce the ambiguity. So people are willing to take a risk or make a decision to move forward and so there’s lots of pieces. Roadmaps are essentially the same thing. Roadmaps are me saying, I’m going to set in place over time, that helps you understand what we’ve all decided on, or considering doing holistically as a group, right? And most of the time it’s more certain on the next quarter and it gets less certain as you go out. And that’s fine. You just want to make sure that everybody understands the criteria for why something is on that list and why something’s not on that list. No one should ever be coming to you, begging you, I’ll take you out for a beer, if you put my favorite thing on your list. You’re like, like, no, no, no, like, the stuff on this list follows these very clear criteria and we really understand the ones on this side and we understand the ones out here a little bit less, but I’m comfortable saying that we’re going to be going in roughly this direction because it meets these criteria, and we’ve reduced enough of the ambiguity that we can move. So I have a few skills and things tied to that, right? Like when I talk about roadmapping, I talk about it in those terms. It’s not just, can I make a pretty thing with a bunch of horizontal lines on it? It’s like, can I align people around the fact that we really do all agree on it, and we know why we agree. Jesse: You know, Peter and I have been talking for a while on this show about how the relationships between these functions are continuing to shift, and the mandate of design is continuing to shift as our understanding of how to do this work continues to evolve. So I’m wondering from your perspective, what’s next for design? Todd: Selfishly, I would really love, what I think should be next for design, is that people with design skills and experience are able to really step into roles of leadership and companies that may or may not have the word design on them. I think there’s a lot more opportunity for that these days. I think that the nature of how especially software gets developed is changing, like, even the technical skills are not nearly as differentiating as the ideas and moving quickly and learning, and those are all things that designers do really well, right? And so what I would like is that more people take career paths that are kind of like mine, not because I think I’m perfect or that it’s great, but because I think it’s what the world needs, right? The world needs people with those kinds of skills that can move very quickly, that are great at understanding both the human and the sort of, let’s call it, roughly, technical space. And they shouldn’t be locked in something that’s got the word design on it. You know, like you’re a journalist, Jesse, right? Like you’re, you know, but you’re a designer, right? You know, like, and you’re a podcast host and you’re a coach, right? Like your background is design and journalism. But what you’re doing is really different. Like that you’re a success story in some ways of this as well. Jesse: Todd. Thank you so much for being with us. Peter: Thank you. This has been great. Jesse: Where can people find you on the internet? Todd: Toddwilkens.com is probably the easiest way. T O D D W I L K E N S. com. You can get a hold of me there pretty easily. It talks a little bit about some of the work that I do. I’m not a very social media kind of person, so. Jesse: It was great to talk to you, Todd. Thank you so much. Todd: This was really great. Yeah, thanks guys. Jesse: For more Finding Our Way, visit findingourway. design for past episodes and transcripts. You can now follow Finding Our Way on LinkedIn as well. For more about your hosts, visit our websites, petermerholtz. com and jessejamesgarrett. com. Peter recently launched The Merholz Agenda, his semi weekly newsletter. Find it at buttondown.com slash petermerholz. And if you’re curious about working with me as your coach, book your free introductory session at JesseJamesGarrett. com slash free coaching. If you’ve found value in something you’ve heard here today, we hope you’ll pass this episode along to someone Else who can use it. Thanks for everything you do for others, and thanks so much for listening.
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Feb 8, 2025 • 49min

54: At the Intersection of Design and Business, Be The Anomaly (ft. Roger Martin)

Transcript Jesse: I’m Jesse James Garrett, Peter: and I’m Peter Merholz. Jesse: And we’re finding our way, Peter: Navigating the opportunities Jesse: and challenges Peter: of design and design leadership, Jesse: Welcome to the next phase. Joining us today to talk about what’s next for design is business strategist Roger L. Martin, former Dean of the University of Toronto’s Rotman School of Management, who advanced the conversation about design and business with his influential work in the late 2000s. We’ll talk about the parts of that vision that worked out as well as the parts that didn’t, the new forces shaping design’s business impact, and what design leaders should be advocating for next from Aristotle to Hermes. Here’s our wide-ranging conversation with Roger Martin. Peter: Hello, Roger. Thank you for joining us today. For our podcast listeners who might not be familiar with you, how do you introduce yourself and what are you up to of late? Roger: Ah, that’s a good question. Well, I guess I’m a writer, an advisor on topics of business, mainly strategy, innovation. And I’m mainly an advisor, to mainly CEOs, and writer. And I kind of split my time fairly evenly between those two things. I was an academic for a while in the middle of my career. But what I like most is helping people solve problems that they don’t have a way of thinking about. That would be the way would describe my goal in life. If there’s some problem or issue where you’re saying, man, I don’t even know how to think about this. I try to provide ways of thinking about that. Peter: Jesse and I would have become familiar with you sometime in the mid-2000s when we were running Adaptive Path and you were one of the few business school people talking about the intersection of design and business, which was something we were interested in. We’d actually hired in 2005, a gentleman named Brandon Schauer from the Institute of Design, who actually had both an MBA and an MFA. So that intersection was something we pursued. In fact, earlier in 2002 or 2003, we did research with Sara Beckman at UC Berkeley. Roger: I love Sara. Peter: So we were familiar with you from afar. So it’s great getting a chance to talk to you today. I’m curious, over these last 20 years, and where you land today in terms of your relationship with design and how you think of whatever the conversation is around the intersection of design and business. Roger: Yeah, I, I’ve probably in some ways, even though it might not feel explicitly this way to folks watching, because I wrote more specifically on design in the late 2000s and then the next decade, like I had my book design of business was 2009, but my dive into design, I would argue, has deeply influenced my way of approaching business problems in general. Learning from Aristotle Roger: So even though I’m writing less about design, design, design those principles are there. And I would say it comes up particularly in my view of Aristotle, and the super important distinction he made that’s ignored by almost everybody on the face of the planet and certainly at educational institutions where he said, yes, I created this scientific method. He is the world’s first scientists. And he said, here’s how you be scientific: book, Analytica Posteriora, one of the most important books in an entire history of science, if not the most important book. And the world has become ever more scientific, all sorts of disciplines like the, my undergrad discipline was economics and it’s become highly scientific and quantitative and analytical. But all of those people, in the entire world of economics, in the entire world of business, ignored what the father of science said, and he said, you should only use my method in the part of the world where things cannot be other than they are. Well, what part of the world would that be? Well, it’s the part of the world where I’ve got a pen in my hand, and if I let go of it, guess what? It falls. Last week. It falls in Fort Lauderdale. It falls in Saskatoon. It falls in Antarctica. What will happen next week when I let go of this pen? It’ll fall, right? So that’s what Aristotle meant by the part of the world where things cannot be other than they are. Why? There’s a universal force called gravity that doesn’t come and go, it’s always around. It doesn’t have a different effect. It always has the same effect. And he said, use my scientific method. So essentially analyze the past, gather data from the past in order to be able to understand what he was most interested in his entire life was understanding the cause of the facts. So he said, you will, if you can study that enough, you’ll figure out the cause of, of of the effect. And sure enough, the world eventually figured out that there’s a universal force called gravity, accelerates everything at 9.8 meters per second squared, unless you’re in America, which is an exceptional country there, it accelerates at 32 feet per second squared. But that’s the part of the world where things cannot be other than they are. What the world has ignored entirely is a warning by Aristotle, where he said, there’s another part of the world, it’s called the part of the world where things can be other than they are. So if I think about, you know, smartphone, how many of those were there in 1999? Answer, zero. First smartphone was in 2000, the BlackBerry. How many are there now? Last time I checked the data, 5.5 billion of them. That is clearly the part of the world where things can be other than there are. No smartphones to 5.5 billion in a quarter century only. Think about that. Quarter century 0 to 5 billion. And Aristotle said in that part of the world, do not use my scientific method. Now, that has a profound influence on the entire world of design. When these other disciplines like business- -and that’s super important for design, because fine art doesn’t deal with business, design deals with the world of business– in that part of the world, you should not analyze the past to decide what to do in the future, you should do what Aristotle said, he said, rigorous thinking in that part of the world, in the part of the world where things can be other than they are, is to imagine possibilities and choose the one for which the most compelling argument can be made. The Internal Contradiction of the MBA Roger: Not analyze the data and choose the thing that the data suggests the world of business teaches, and I ran an MBA school for, for a decade and a half. So like I’m absolutely sure of this, the MBA world, it teaches the only way to be a competent, even moral, business person is to crunch the data analytically, in scientifically rigorous ways, a big enough sample size, all of that, in order to make your decisions. And that is the rule in business. Now, it’s a funny sort of rule, especially if you look at MBA programs. So in all MBA programs, virtually across America, at least, or North America, at least, first year, there’s a, there’s a required statistics course, and in that required statistics course, you are taught how to make inferences from a sample to a universe. I’m going to take a sample of electric vehicle drivers to figure out what EV vehicle drivers, or people who might be interested in buying one, think, right? And the statistics professor will say, now, if you only interview men as your sample, you can’t extrapolate to EV buyers because that is not representative of EV buyers, of which there are a whole bunch of women, right? Or if you only interview women or if you only interview young people or old people, the sample has to be representative of the universe. Okay. And so you’re taught that in statistics, then you walk across literally 15 minutes later into a marketing class or a strategy class, and you’re taught here’s how you must analyze data to determine what to do. Okay. Fair enough. But what assumption do you need to make in order to satisfy your statistics professor who taught in the same course across the hall from this? What you have to assume is that the sample from which that data was taken is representative of the universe that you want to make a decision about. So you want to make a decision about what era, the future, making decisions about the past is kind of like, Hmm, kind of not helpful… Peter: …history, but… Roger: Yeah, history, so you’re taught analyze the data, to make a decision about the future. If you’re listening to your statistics professor, what do we have to assume about the future vis a vis the past? It’s got to be identical, because Aristotle would say that’s… you’re on, that’s good. The future cannot be other than the past. Then taking a sample from the past, he didn’t say it this because, but is representative of the future world, but we know in the world of business, everything changes all the frigging time, right? And so we have a schism in the business school world itself, where we teach statistics and then we teach abuse of statistics, right? Back to back to back. What Designers Do Roger: What implication does this have for design? Well. Designers are following Aristotle. Designers are trying to create, last time I checked, something that does not exist today, right? Even if it’s a wedding invitation for somebody’s wedding, if they’re a graphic designer, if it’s a chair, right, if it’s a graphical user interface, they’re trying to design something that doesn’t exist in its current form. Now, by Aristotle’s definition, his core definition that is part of the world where things can be other than they are. Otherwise, the designer would say, why hire me? Just keep doing exactly precisely what it is now. You say you want a better graphical user interface. Nope, world can’t be any different. Just use the one that you’ve got now. No, designers all work in this world. And what do they do? In my view, they imagine possibilities and choose the one for which they can make to themselves and others, the most compelling argument. So designers arguably are the only people in the business world who systematically listen to Aristotle. Everybody else in the business world ignores Aristotle. They take his method, which he said, don’t use here, and they use it there. So that’s why you’ve got this huge schism between designers in business and other people in business, they’re all playing a completely flawed playbook. and it’s clear, clear as a bell. And if you just say to them, right, like, if you just say to somebody in business, so let me get this straight. You want me to make this decision based on this data that you’ve collected in the past. So that means, the future cannot be different in any respect from the past. And they’re like, Oh, come on, Roger, that’s insane. And I have to turn around and say, then what you’re doing is insane, my friend. So there you have it. Peter: Right. Roger: It will not go away. The challenge of designers living in the world of business will not go away until business wakes up and says, basically, we’re being stupid. Jesse: Well, I wonder about what it’s going to take to create that change, because certainly, within digital product over the last 25 years, honestly, we’ve seen a real, I think, waning of interest in, appetite for, desire to, differentiate on innovation in user experience design. Honestly, a lot of these design leaders are not asked to help organizations do new things that can’t be predicted. They’re asked to create predictability and maximize the predictability of the work that their teams do. And I wonder about, you know, simply creating demand for innovation in business again, and what it’s going to take to get there. Creeping Scientism Roger: Yeah, no, I, I buy that thesis completely. And what I tie it to more than anything else is the takeover of science in domains that are not scientific. So there’s been this slow creeping takeover, and it’s so that it’s getting worse, not, not better. And there are some things about the world of technology in particular that are exacerbating it. For starters, you have a whole bunch of people who are, who are trained in a more scientific discipline than not, let’s say a bunch of computer scientists, right? That’s a really scientific discipline, computer engineering is a scientific discipline. And then they’re over in the world of business, right? Most talented computer sciences and computer engineers stop doing that pretty soon in their careers, and become managers. So in there in the world of business, and they immediately say, Let me use the rules that I learned in this new discipline, because last time I checked, most of them don’t read Aristotle, never, never have, never will. And so they don’t realize the flaw that they’re building into their work. And then any technique that is amenable to analysis, more apparently amenable to analysis, because nothing in the part of the world where things can be other than they are, is actually amenable to analysis, right? It’s just appears to be. So for example, performance marketing is a perfect example. I can just pay for clicks, right? Brand building. Ooh, if, how do you do that? Just pay for more… clicks, A/B testing is another one that’s assuming that whatever’s happening now will be determinative of the future. So you have a whole cadre of people who are trained to be scientific going and applying those disciplines to an unscientific domain. And it’s not as though that the world of business is entirely non-scientific. I mean, figuring out how much server capacity you need and what the power is of each server, whatever, you don’t, that’s science, that’s, that’s computer engineering. And there are rules of physics that says, well, this is not much heat dissipation. There is this far apart. You’ve got to have the servers. Here’s how much coolant you have. Like, Oh, there are aspects of business that are scientific, right? But most of the things that really make a difference in the world of business are, are not. It’s, hmm, how could we appeal to human beings in a different way than they’ve been appealed to before? Hmm. How could we do that anyway? That’s not scientific. Jesse: There are a couple of touchstones from the history of digital product design that come to mind for me here. One is that I, I wrote an article more than 20 years ago now, where I described this sort of creeping scientism as dressing up in lab coats. And… Roger: Oh, good, good for you. I send it to me afterwards because that was ahead of it. That was ahead of its time. If it was 20 years ago. Jesse: Yeah, depressingly still relevant. I’m also reminded… Roger: More true today than then.. Jesse: …of, yeah, our friend Doug Bowman, who was a designer around here in the Valley for many years, who, when he left Google, kind of was a bit of a canary in the coal mine in this respect, in publicly calling them out for carrying A/B testing to absurd conclusions in the design process and testing 40 shades of blue and that kind of thing. Roger: Yeah, yeah. Oh, good. Jesse: It almost seems like you’re making an argument for poetry in corporate decision making here. Roger: The only thing I don’t love about that metaphor is that you are talking about humanity there, and so there’s this difference to me, fine art and design are in my view, two different disciplines. They have some, some roots together. Poetry is also a humanistic discipline. Like one of the reasons why I like design as much as I like design is because it is a business-oriented, business- related discipline. So you actually have to appeal to somebody other than yourself. A fine artist can say nobody will ever buy a painting of mine, but I’m still a great artist, or nobody will ever buy a book of my poetry, but I’m still a great poet because I think so. And I’ve expressed myself. A designer has to have their design come to fruition, which often takes you know, somebody to decide to green light investment. Jesse: Absolutely. The Pragmatics of Design Roger: You know, I consulted to Herman Miller and Steelcase in my life. And, you know, the designers there had to design with manufacturability in mind, right? If you couldn’t manufacture the new chair, like who cares? Or if it costs so much to manufacture it. That at that price point, it wouldn’t sell any, so they couldn’t get the scale to tool up a manufacturing line. So I like the fact that designers have to live in those worlds where they have to actually pay attention to the economics. They have to pay attention to the consumers, even the distribution channel, the suppliers. Poetry is a little farther than I will…. Jesse: I guess what brought that word to mind for me was just wondering what the antidote might be to all of this excessive over-analysis and this worship of the analytical. And what came to mind for me was arguing for the intangibles, for the human element. That can’t be measured, that can’t be quantified or nailed down and boxed in. Roger: In advance. Jesse: Yes. Yeah. Roger: Like ex post facto, you can say, well, that would be about 3 trillion worth of design there at Apple, right? Yeah. But only after the fact, because prior to it, like, are you kidding me? Jesse: Yeah. Roger: You’re kidding me? This, tiny little useless company that makes these funny devices. No, no. 3 billion. 33 trillion. There are consumers who can’t live without them. As with most things, I’m a Kuhnian guy, structure of scientific revolutions kind of guy. One of my favorite books of all time, because I think there’s some really core insights there, which is there’s always a dominant theory and as it builds strength and becomes the dominant theory, more and more people study in that mode, work in that mode, work with that theory completely in their minds. and anybody who does not buy that theory is, you know, cast out and suppressed. So we got that. But then this, nasty little thing called anomalies pop up, and when enough anomalies kind of hit, there gets to be this momentum behind the idea that maybe the dominant theory doesn’t actually work the way it’s supposed to, because there wouldn’t be all these anomalies. And then you have this sort of melting period where there’s a bit of chaos for a while until you settle on to a new theory. We are at the point of having more anomalies kind of showing up to this analytical view of business. More, we forecast this, we went and tested with consumers, this product, and then they didn’t decide to buy it or the like. And, slowly, but surely, but it’ll probably take another quarter century, would be my guess, for the analytical view of business, the database analytical view of business, to crumble. And I’m not sure what other than more anomalies and Steve Jobs provides, you know, really, a touchstone anomaly. They’re like, why, why with those rounded corners? And why do you need all that crap? Because you do. And I will show you only by the evolving of future events. That’s what the designer has to say. And I’m against designers who play the stupid corporate game. Oh, I’ll try to quantify this for you. You know, you got to just say, yes, yes, I will quantify this for you on the basis of, future events. Because if you just think about it from a data standpoint, the problem with the next six months is we have zero data about it. A hundred percent of the world’s data is from the past. Do you agree? There’s no data, right? So the problem with the next six months is there’s no data about it. That’s the problem with it. The good thing about the next six months is in six months, there’ll be plenty of data about it. Right. And so my view is the designer’s job is to figure out how to productively turn the future into the past., You’ve got to try and figure out how to convince somebody to let you try something, make a prediction of what will happen. And then after it happens, you can say to them, see, we have data. So the designer has to set up a situation in which they can say, I was data-based, I was, but only ex post facto, Peter: Right. Roger: To get to there, I had to have you try something. Now, let me try something twice as big. Five times as big, 10 times as big. And you’ve got to build your way to it by cleverly figuring out how to turn the future productively into the past. If you don’t tell anybody about what you predict, right, this is the Babe Ruth effect, Babe Ruth points to center field and then hits it out. People say that was kind of a special homer. That was maybe like the most special home run that’s ever been hit in the history of the sport. Because boy, oh boy, being able to predict that on the next pitch, you put it over the center field wall is sort of crazy. So the fact that he predicted it rather than just swung hard and hoped made it that much more epic. It’s memorable. It’s memorable for all time. It’s considered onel with the Willie Mays over the shoulder catch, like, considered the most memorable play in all of baseball history. And it has this unique characteristic of, predicting something that you couldn’t prove, doing it and then being able to say, kind of like, see? Designers should do that rather than spending any time saying, well, we can quantify it and we can, well, maybe this was, that’s playing the game of losers. Don’t play games with losers. Don’t play games of losers with losers. The Late ’00s Were a Magical Time Peter: I want to go back a little bit to the Thomas Kuhn and the revolutions thing, because around the time you wrote Design of Business, Adaptive Path wrote a book called Subject to Change, which is very much what you’re talking about, right? You don’t know what’s coming. So here’s a set of practices or approaches that will allow you to succeed regardless of what that future is, or to kind of plan for that change. We had articles like the MFA is the new MBA… Roger: Ah yes, Dan Pink! Peter: 2008 2009 was this heady time that design was going to remake business. Roger: Yep. Peter: And then it didn’t. Roger: Yeah. Peter: And so I guess I’m wondering, what was that blip around then that created some conditions where, this was in the air, but then what didn’t happen, or what happened such that it didn’t carry forward? Maybe because you said it’s going to take another quarter century, are we thinking in terms of the wrong timescale? Should we be looking at this in like 50 year chunks as opposed to like 10 to 20 year chunks when it comes to this kind of change in evolution? Roger: Yes. I guess I think what happened were, again, back to anomalies. There were some really substantial anomalies in that period. iPhone. Peter: iPhone being the most obvious. Roger: Yes, but Herman Miller, Aeron chair. Right. Cool, cool thing. Like, it became the best selling chair in the history and the most profitable chair in the history of humanity. Right. And it didn’t look like anything before it. And in the clinics when they brought in a student, they didn’t clinic well at all. The research was crummy and they just said, we’re going to do it anyway. And the thesis behind it was they pointed out the real problems, the things they really hated about their task chairs. And we’ve solved those problems. The problem is it doesn’t look like a chair. In fact, the people at the clinics would come in sit in a chair and then be all mad and say, Why did you come and, make a sit in an unfinished chair? Peter: Right, right. Roger: They expected it would be padded and upholstered. Yeah. There were some anomalies. In that period, Samsung embracing design and taking on the Japanese, Philips, while many big Dutch companies were like having, you know, kind of European disease, was flourishing. So I think there were enough companies doing this weird thing that got people excited about it. And I think the problem is, in some sense, there wasn’t a flow of the necessary kind of person that went into the business world. And I pointed this out to Dan. Dan’s a great friend of mine. And I said to Dan, Dan, there is a slight problem here, right? Which is, you said the MFA is the new MBA. America produces 150,000 MBAs a year and about 1500 MFAs a year. So. If it’s going to be the new MBA, there’s going to be two orders of magnitude too few of them to fill those jobs. And of course he didn’t mean exactly that. And we have a fun conversation about it, but, of those MFAs, how many of them care about business? Answer, maybe 2, 3 percent of them. So what I think you just didn’t have is enough people who had any useful training in design that knew enough about business to figure out how to overcome the organ rejection complex that happened. And of course, I was intimately involved from start onward of the design thrust of A. G. Lafley and Claudia Kotchka at P&G. And that took incredible amount of skill and fortitude to make that so that it didn’t get killed, but boy, the attempt to kill it was all over the place. So I just think there was a closing of ranks, as Kuhn would predict. We’ve got some anomalies, but those are weird anomalies, says the mainstream, and let’s close ranks and stop this before it gets dangerous and so. You know, we had a huge bubble and a crash on stuff internet in 2000 and 2001 was disaster, a crash it’s gone, but sure enough, 10 years later, 2.0 came along and now we’re maybe in 3.0 or 4.0, whatever people want, and it now rules the known universe. And so I think sometimes that Kuhnian kind of thing has spasms and that spasm was not big enough to overcome the, organ rejection antibodies. Charting Anomalies Peter: What are some of the anomalies you’re seeing? I got the sense you feel like the anomalous is like ratcheting up again. You know, one of the things Jesse and I have been pursuing, the last roughly 10 conversations on our podcast is, like, where things are headed. And to your point, we, you don’t really know, but it felt like from about 2008 to 2022, there was a trajectory, at least for design, you could probably say for product, product development. But then at the beginning of 2023, like there’s been this convulsion, at least in, tech spaces, right, with layoffs and all that kind of stuff. And what’s next is just this fog, like, whereas before you could kind of, you know, prior data would kind of indicate future results that is no longer the case. Roger: Yeah. Peter: And so I’m curious what you’re seeing or sensing or suggestions for navigating through that uncertainty that we all seem to be in right now. Roger: Yeah, so I agree and observe it, too, the layoffs in silicon valley of all the ux people is, it’s quite sort of catastrophic in magnitude for that discipline. And it’ll have a long term ripple effect. So, I think I see what you’re seeing. I still see it as a, bit of a, another spasm, right? Where, you know, there was over promising. And we have to have a more sophisticated view of what this sort of, in this case, user interface feature development, based on the individual. One of the things I’m working on these days, I’m, collaborating with buddies of mine at Red, you know, Red associates, right? Peter: Yes. And… the folks out of Denmark. Roger: Yep. And what our hypothesis is, is the world of strategy started out focusing on economics back in 1963, BCG learning curve, you get your economics better and you win. And then in the 80s, starting with Mike Porter, to say, no, there’s something called differentiation where you’ve got to understand the user deeply and you can appeal to them, that then morphed into the whole design movement. How do you understand the individual? Oh, ethnographically, deeper user understanding and you start designing features and the graphical user interface associated with them in these digital products in a way that it’ll appeal to them as individuals, and then you will succeed. A bunch of that success did happen because understanding consumers, their needs, their wants, and designing things for them that they loved made a whole lot of sense. But there was this massive investment in that individual, and what we think that obscured and did not help understand, that’s being brought to light by, in the tech world, another anomaly, and the anomaly is TikTok, which should not be able to do what it’s doing, right? Network economics should have made it, squashable, like a bug, just like Facebook did to Snap, right? Just, our network economics can crush you like a bug. And we have put more money into feature development, understanding the user, A/B testing, feature development, so make the user experience, you know, so, so awesome. Meta, what with both Facebook and Instagram have huge, huge lead over, TikTok on that. Why, how can TikTok violate the rules of network economics completely, violate the rules of feature design, feature development, UX design. Why, they shouldn’t be able to do that. And it’s because It’s not a psychology problem, right? Individual psychology. It’s a sociology problem. Actually TikTok has created a world that people want to be part of more than they want to be individually attracted by Facebook or Instagram. So you want to be a TikToker and be part of that. That world has norms, conventions, rules, and you want to adhere to those so that you’re part of that world. So what I think is, the design imperative is going to shift from understanding the individual to understanding and developing, nurturing a world, which you have much less control over, it’s a trickier thing to nurture a world than to design a user interface that you maybe tested to be superior for kind of an individual. So my explanation would be these companies invested in the new toy, which is user interface designers, feature designers, hired tens of thousands of them, and it didn’t produce the results they were hoping for. And so they’ve said, guess that didn’t work, and they’re waiting to figure out what to try next. But the answers still are in, if you will, if we can use this term designerly attributes. But they’re not going to be designers who work on the individual. It’s not as though that was never part of the thing. Your family being on Facebook was helpful to the network economics, but now you actually don’t want to be in the same world as your grandmother. To do your silly dance, you don’t want your grandmother on it. You want other people who love silly dances. And that’s a world and it’s got its rules. It’s got its norms, it’s got its conventions. So I’m sort of obsessed about this now because I think of it as the next, kind of, forefront of strategy design. It’s designing worlds. And Hermes has done that spectacularly, sort of, in the physical world. Absolutely spectacularly. There’s a world of Hermes people who want to be part of it as norms and conventions that has weird rules. Like you may want a Birkin or a Kelly bag, but we’re not going to give one to you, sell one to you at an exorbitant price. You have to go through a bunch of steps to qualify to be part of that world. And that’s why at 15 billion of sales, it’s got the same market cap as PetroChina with 240 billion of sales. How could that be? It’s got a higher market cap to revenue ratio than any tech company except now Nvidia. How can that be? It’s so different from the other luxury goods producers. It’s because over the many years created a world. Do you know how much advertising Hermes does? Peter: Not a clue. I pay no attention to the luxury market. Have you seen what I’m wearing? Roger: Yeah, you got a point there. Uh, Jesse, do you know? Jesse: No. Neither do I. Roger: Almost nothing. Almost nothing for a exceedingly highly branded consumer product. Exceedingly highly branded. What do they spend their money on, do you think? Just guess what they spend their money on in the way of building the brand. Events. Events. Peter: Oh, so, so, gatherings. Yes, gathering. Social experiences. Roger: Social experiences, yeah. But not focused on an individual influencer. That’s what’s different about it. it’s incredibly, incredibly cool. Artistically, wowing kind of parties of every, every cool person in Hong Kong, or everybody who’s part of the Hermes kind of world in Hong Kong. So it’s a world oriented strategy, just like TikTok, world oriented strategy. And so the next big design frontier is designing worlds. Jesse: Mm hmm. So as I think about the opportunity for design leaders to lead a different kind of conversation to drive some dialogue that reaches beyond the anthropological toward the sociological to bring more of the humanistic into these analytical conversations, a lot of design leaders are struggling just to find the opportunities… Roger: yeah. Design Thinking WTF? Jesse: …for those kinds of things. And your work a decade plus ago was foundational to a lot of people’s ideas about how to create those opportunities for themselves through the methodology that became known as design thinking. And now, at this point in the evolution of things I have to ask: Roger Martin. Design thinking, what went wrong? Roger: Um, a couple things. One, you didn’t have the human capital necessary to, operate it, right? So you had some thought leaders weighing in on it. Tim Brown’s books. But you then didn’t have the horses to back it up. And so people started to reach for these folks who had a design degree on their resume. And say, we’ll create a design department. But very few of them knew enough about business to fit in. But there was probably over promising that went on and I think in the tech world, a racing out farther and farther on the thinner and thinner branch, let’s have another thousand UX designers at Google or at, Facebook, and eventually it snapped off behind them because the results weren’t there. Interesting enough, The Design of Business still sells. It sort of didn’t go… it kind of still sells and, it’s a more foundational, but like Tim Brown, and who’s a good friend of mine, wrote more of the manual for here’s the steps you take. I said, how should we even think about this? That was Design of Business’s purpose. How can we think about this phenomenon? And I think the core thoughts about mysteries, heuristics, algorithms, code is kind of more right than wrong, shall we say, and just needs to be applied in a different way. A big problem, though, is like America’s biggest single educational enterprise, higher educational enterprise is business. There are almost half a million, 450,000 between MBAs and undergrads in business, that comes out of that, were just huge. That’s over 20 percent of all people in tertiary education in America. And, they’re being taught things that are inimical to design and are anti-Aristotelian in a fundamental way. And so what I tried to do, in part, by being a dean for 15 years was to convert an MBA program into a, what I said, I wanted it to be as a master of business design, that was my desire. But like, it’s the hardest thing I ever tried to do in my life, like advising CEOs on their most important decisions was easy compared to that. And when I left as Dean, it pretty much went away. At one point, people from around the world came to the Rotman school to learn business design. And we did a really good job educating them. And some of them are floating through companies doing awesome work, but even it is just a drop in the bucket. So the challenge is just might makes right. and the might of US business education is overwhelming. One discipline, it’s bigger than all the hard sciences and engineering combined. It’s just gigantic. And it has got a core foundational theory is that if we teach you a bunch of analytical techniques, you will analyze the world and make good business decisions. Peter: Can’t manage what you can’t measure. Roger: Oh yeah. Yeah. Yes. I mean, what I just said is like demonstrably false, but it is the dominant theory, and that’s why I say it’s probably 25 years till it breaks down and, we need more, we Herman Miller’s and Philips and Samsung’s of the world to show that a different paradigm is what we need. And again, remember how tiny the design education field is. It’s really hard to tell how many graduates of undergraduate design there is. In America, but if it’s 10 percent of the 400… Peter: …and it’s not, it’s nowhere near. Roger: Yeah. Yeah. 10 percent of the 300, 000 undergrads, cause it’s about 300,000 undergraduates, 150,000 graduates, last time I checked the numbers, don’t hold me to that, okay. There’s very little production of the human beings kind of necessary to bring about that revolution. And, as an educator, higher ed person for, 21 years, 15 years as Dean, I just know how slowly that, world changes. Though, with the right leadership, like we were, attracting design students and teaching them business design. Peter: Yeah. you just said something you said the phrase, the right leadership. Roger: Yeah. Peter: I want to unpack that a bit because something that has happened in the last 20 some years, even with some of the backsliding over the last couple of years, is that a majority of meaningful businesses have some flavor of senior design leadership, kind of director level or above. They’re all over the place. You know, tens of thousands of design leaders at banks and insurance services firms and healthcare as well as in tech as in retail. They’re everywhere. But the question then is, you said the phrase the right leadership and I’m wondering , how should these design leaders who are in these businesses have some presence and hopefully some say? How should they be showing up? What should maybe they be doing differently than they’re doing in order to help advance what you’re talking about and get some of these designerly ways better appreciated, to push back a bit on the overwhelming wave of scientism that is, that is drowning, potentially crashing over them. Yeah. Like, are there tactics that they could be employing to reverse that tide? How to Succeed Roger: Yeah, there are. The thing I would first advise is, and this is the same advice I give to students who say, well, Roger, you’re teaching us all this stuff, but we’re going to go into a company. And how do I convince everybody else to do this? And I say, don’t. Don’t. You’re responsible for something. It may be a tiny little triangle. Like the biggest triangle is the one that the CEO has the whole thing. You’ve got a little triangle, in that triangle to do what I’ve taught you. If I’ve taught you well, and what I’ve done makes sense, guess what happens? You get a bigger triangle because you succeeded, right? And then you do what? Same thing again. Don’t tell everybody else to do things differently. Then get a bigger triangle, and a bigger triangle, eventually you have the whole thing. And that’s the advice I’d give. And then the specific advice within your triangle is, you have to be Gandhi-esque, be the change you want to see, right? You’ve got to do things in your own sphere of control for which there is no proof from past data, like all my, you know, kind of consequential successes such as they are in my life have been by doing things for which there was no data to prove in advance, right? So. Rotman School, fourth best business school in Southern Ontario. I say, I’m going to make it Canada’s only globally relevant business school. And we’re going to do it by embracing integrative thinking and business design, new way to think. We’re going to grow the thing like crazy and dah, dah, dah, dah, dah. And everybody’s like, you’re kind of nuts and you’re crazy, but you did it. And we became Canada’s only consequential global business school. I went on the board of Tennis Canada, we were nothing, not top 50 nation. We said, we’re going to be a leading tennis nation with Grand Slam singles champions, Davis Cup champions, Fed Cup champions. Everybody’s like, that’s nuts. We did it. We’ve won Rensselaer Singles, Davis cup, Fed Cup. Were always considered one of the world’s leading tennis nations now. Not the leader; at 30 million with snow you can’t, can’t be that, So I was the change I wanted to see, by saying I can imagine a possibility. And we’re going to make it happen. And I will be undaunted by anybody who doesn’t buy it and try my best to convince them. So, people say, yes, but you were the boss, right? No, deans aren’t bosses. I reported to the provost who reported to the president. I was two steps from the top in a hidebound, you know, universe, the university universe, I said, I’m just going to do this. So I would say, stop looking outside, look inside. Have the courage of your convictions to attempt to do something for which there is no data to satisfy anybody who wants data that you will succeed, and just figure out a way to make it happen. And if that has to happen slower than you wish, because nobody else believes in it, so be it. And I always used to say at the Rotman School, I’m patient, but resolute. But some things take a while. And in fact, I was saying, I want the Rotman School of the last year of my deanship to be unrecognizable as having had anything to do the Rotman School of my first year. Those have nothing, nothing whatsoever to do with one another, but each year, there would be small enough changes that nobody’s going to kind of jump off the boat and swim to the shore saying this guy’s a lunatic. And that’s what we did. We transformed it utterly and totally to something that nobody thought it made even any sense in the business school world. So, that would be my practical advice. Jesse: I guess that if it’s going to take an accumulation of anomalies to create this kind of large scale change, we need more people who are willing to go out there and be the anomalies. Roger: Yeah. Yeah. And, that is the rate limiting step. So you’ve Jesse, you, put your finger right on it. Peter: Is that what we’re going to print t-shirts that read “be the anomaly” and sell those at design conferences? Roger: I kind of think so. I mean, there is a bit of a Nike to this. It’s just do it, right. I mean, stop whining about it. Yeah. You’re a design leader and you’re like, they won’t let me do this. They don’t want that. Well, figure out what you are in charge of and be designerly about that. And, don’t be shy about it. They’re all just doable. But if you’re cowed by the lack of data, then good luck to you. Jesse: So, embrace the uncertainty, imagine the possibilities, be the anomaly and just go do it. Roger Martin. Thank you so much for being with us. Roger: You’re most welcome. Peter: Where can the people find you, Roger? how do you like to be found these days? Roger: Well I write a weekly column on Medium, they can find me there. I’m on LinkedIn and X, and I have a website, which is http://www.rogerlmartin. com. You got to put in my middle initial L for Lloyd, my father, otherwise it goes to a real estate salesman in Houston, who’s extremely nice guy. I’ve sent him a lot of business. He’s got, he’s got, he’s just got a lot of emails and he always forwards them to me. So, but I don’t want to have him have too much work so you can find me at any of those places. Peter: Awesome. Jesse: Roger Martins of the world unite. Peter: Yes. Thank you so much for joining us Roger: Terrific. Thanks for having me. Jesse: For more Finding Our Way, visit findingourway. design for past episodes and transcripts. You can now follow Finding Our Way on LinkedIn as well. For more about your hosts, visit our websites, petermerholz. com and jessejamesgarrett. com. Peter recently launched The Merholz Agenda, his semi weekly newsletter. Find it at buttondown.com slash petermerholz. And if you’re curious about working with me as your coach, book your free introductory session at JesseJamesGarrett. com slash free coaching. If you’ve found value in something you’ve heard here today, we hope you’ll pass this episode along to someone else who can use it. Thanks for everything you do for others, and thanks so much for listening.
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Jan 4, 2025 • 57min

53: Leading Design Through Continual Evolution (ft. Peter Skillman)

Transcript Jesse: I’m Jesse James Garrett,  Peter: and I’m Peter Merholz. Jesse: And we’re finding our way,  Peter: Navigating the opportunities  Jesse: and challenges  Peter: of design and design leadership,  Jesse: Welcome to the next phase. 2025 is the 100th anniversary of the Centralized Design Group at Dutch manufacturing powerhouse Philips. Current Head of Philips Design, Peter Skillman, joins us to share lessons from Philips’ century of design innovation, from light bulbs to the compact disc to healthcare technology. We’ll also talk about the cultural factors that support design influence, what he learned and had to unlearn from his time in Silicon Valley, and how the game for design leaders has fundamentally changed in recent years. Peter M.: Our guest today with us is Peter Skillman, a design leader who’s been working for quite a while with experience at Palm Computing, Nokia, Microsoft, Amazon, and now Philips. Thank you for joining us, Peter. Peter S.: It is an honor to be here after, you know, connecting with you for so many years now. Peter M.: Let’s start with what you’re up to now. What does it mean to be the global head of design for Philips?  History of Philips Design Peter S.: Let’s start with, like, on January 5th, 1925, Louis Kalff was the very first head of design for Philips. And what’s kind of interesting is how his legacy is still a key part of, visible influence on, the identity. And he challenged Anton Philips back in 1925 by sending this letter. This letter essentially said the advertising that Philips makes is not have the same standing and greatness in the importance of the company. In an edited way, he basically said, the advertising isn’t good enough. Hire me to come fix it. And the Philips wordmark at that point, there were 25 different versions of it. And essentially the very first part of design at Philips, since it was a light bulb company, it all began with light, by unifying the entire visual identity. And he was around for a long time, working with some other great designers like Cassandra, who worked on the posters. And he also worked on the logo, which is stars, which represent light. And then also the waves, which represent communication. And today, data is the new light. And insights are the new communication. So it’s kind of come full circle in terms of its meaning as a health tech company, that’s looking at prediction and AI as a means of driving better care for more people. So that was, like, the beginning. And, you know, you asked me like, what does it mean? And if I’m really transparent, you know, I’ve shown some vulnerability, you know, with my team and like, maybe like most high performance people, like it’s really scary. Like, I’ve had, I may have this facade that like, I’m on top of everything, but like, sometimes I fear I’m not worthy of this place in history. And I, fear that I’ll mess up this huge legacy. ‘Cause I’m that eighth leader of design in Philips’ history. And Philips has probably won more awards than any design company in the history of the world, right? And so like sometimes the responsibility is pretty heavy. And I remind my team that I’m human and I’m trying to do my best to basically hold up to all of those great leaders over the past, you know, people like Stefano Marzano and Rainn Versema and Louis Kalff and Robert Bleich and, you know, Sean Carney, is like this long list of people that, really made a difference in influencing society. Jesse: And I would think that in addition to your own standards for your performance that come from this legacy of previous leaders and previous accomplishments, there are also certain expectations that you’re feeling as well, given the history of design at Philips and the history of design’s influence at Philips. And I wonder how those expectations, those perceptions of how design is meant to contribute at Philips, how that influences how you make decisions as a leader.  Peter S.: I think that you’re inheriting this tradition, like, let’s talk about legacy first, right, that involves maintaining consistency and functionality in the design, brand unification, and a clear focus on empathy. I mean, Philips, is, like, the first company that invented ESG, like way back in 1920s Philips was doing tuberculosis screening for all of its employees and then for all of Eindhoven and then scaled that to all of the Netherlands and at the same time set up things like corporate housing and healthcare for all employees. Like that didn’t exist back then. And disability insurance, like these things were really new. And, so I feel like what’s unique about Philips is that. there’s all this legacy, but care and empathy form the basis of how decisions and trade offs are made as we look at the next hundred years of our future. ‘Cause we, respect our legacy, but we have to look forward, you know, we can’t look backwards. And, I think that has a part of how we communicate, with leaders and partners and our employees and new hires, that is really different than the ethos that I found in Silicon Valley. Peter M.: So you’re talking about looking forward. I’m curious what role design has played in Philips’s evolution and shifting, right? You mentioned it started with light bulbs. It’s now a health tech company. And what you are being tasked for in terms of that ongoing evolution, what role is design playing to drive change versus, maybe, enabling change. ‘Cause so often design can be seen as, you know, when it started at Philips, yes, it was brand. It was advertising. That’s not core value. That’s, kind of, related value. Now, it feels like design is woven into more core value realization within Philips. And, I’m interested in the mechanisms by which that happens, by which you take part in that. Peter S.: I mean, let’s talk about the evolution. So in the early years, twenties and thirties, you know, it was all about that visually identity and presenting a consistent visual identity.  It’s funny, if you go back to Philips’s history, like, it wasn’t profitable for the first three years, like it was 18 93, And then they got a order for 50,000 light bulbs for the winter palace for the czar of Russia. Like that was the moment at which Philips became profitable. And people forget that there were hundreds of light bulb companies. Why did Philips survive and thrive for so long to become the innovation company that it is today? And you have to go back to Gerard Philips, and Louis Kalff and many of the leaders, like today, even Roy Jacobs today, cares about the little things. No detail is small. Gerard Philips, I’ve had his notebook in my hands from 18 98. And there are extensive notes of everything that was going on in the shop floor. So this is a place where the leaders are really into the details. I’m expected to know about everything on every project. You know, it’s an almost impossible task given the scale of the company, but, the ethos of leadership here is that you’re not a manager. You have to be a designer first or actually deeply participate in whatever your role is. Individual contributor work may be five or 10 percent of my time, but I do get involved in individual, you know, contributions. And I think that at a lot of large leadership positions, it becomes a lot more managerial or role based and, you know, we’re really about rolling our sleeves up and caring about those details, and you lead by example. So it started with that visual identity, where there was this history of leaders being involved in the details. And then, you know, from the 40s to the 80s, you know, is really a transition to product design. And we’re talking about consumer products, domestic appliances, and then, you know this design evolved with Knut Rahn and Robert Bleich into doing centralized design leadership, evolved to a point where there was a design and review process that became the model for many other large corporate companies at the time.  They even had this like giant round table with like a Lazy Susan in it. They would put, like, products down on top of it and evaluate every detail and decide, like, yes, we have to change this. This isn’t ready to go. This has to go back. And of course, a lot of that was industrial design focus. And so huge transition from, you know, an industrial company making light bulbs at scale, to products that it was aesthetics as it relates to self-esteem. And then the connection from there to doing things like personal shavers and grooming, where it really had an impact on how people felt about themselves and I think that, you know, if you look at companies, it was only Sony and Braun that had that level of design orchestration that was occurring centrally at the time, where design wasn’t just a part of the organization that was like an agency producing work by order from the businesses, but this was a role that was an equal product stakeholder at the table. Which is very different than how design was treated in many early, you know, large innovation companies.  And so, then there was this big pivot, you know, we’re starting visual identity, product design, the next wave is experience design. So this is when we went from product-centric to an increasing focus on healthcare technology and user experience. And I think you know, at that point, you’re delivering value by truly understanding customer needs and working backwards from the customer, trying to understand the context they’re in, doing contextual inquiry, like the evolution of the customer, co-create happened during this evolution, as we started to move into really, you know, becoming a health tech company. And that co-creation was, you know: step one, discover and research the context. And then step two is like framing and putting those needs in context. And then step three is ideating where you’re generating solutions and then, four, delivery.  And I think that process, doing it with customers, together, with them essentially participating in the design work, was something that was like really, really new and led to what is, I think the fourth major transition in our history, which is from visual identity to product design, to experience design, to now predictive and insight-driven experiences. And I think that’s a really significant change. Jesse: It’s interesting also to think about what you’ve inherited from the organization and its history of design being an equal product stakeholder, as you describe it, which suggests to me that there’s a value proposition for design that’s already well understood at the executive level before you ever stepped in the door at Philips.  How Philips Succeeds Peter S.: Yeah. I mean, this is amazing, but like a year ago, two years after I arrived, Roy, the CEO, and he had talked to me, so I knew it was coming, announced, What are the core impact drivers of Philips? Those are: innovation, because we’re a hundred and thirty year company of continuous innovation actually moving through and transitioning through major, I mean, we’re a TV company for a while, we produced, you know, vacuum cleaners and air fryers and, you know, like light bulbs. We don’t do this anymore. We don’t do consumer radios. We don’t do VCRs. We co-invented the compact disc with Sony, and we’re not in those industries anymore because we continuously evolve based on how the market dynamics change. And if you look at the evolution of first Japan Inc, and then Korea Inc, in many of those areas, these were areas where the supply chain ownership and cost basis didn’t allow Philips to continue having a leadership position in those segments. And so the leadership really carefully looked at what are the areas where we can continue to drive value for customers. Where we could maintain often a premium position in those markets. And health tech was one of the areas where we have and continue to show innovation that competitors can’t match. We own the majority of, you know, the hospital patient monitor market as an example. And there we’re looking at things like, with this incredible amount of data, we can predict hemodynamic instability in a patient hours before a life threatening event occurs, and then recommend a protocol to take action that saves that person’s life. That’s not something that was even possible before large language models emerged. But very quickly, we can take advantage of our position to actually deliver better care for more people. And I think, you know, going back to your original question, like, how did Philips maintain its position? Well, it came from that history of innovation, and then the other two impact drivers. Those other two impact drivers are design and sustainability. And so we have a comms framework where we are investing in the legacy of communicating those impact drivers, innovation, design, sustainability, because that’s where we are differentiated from most of the other companies. And it helps us maintain a position as an equal product stakeholder, but note, we’re not design led. In fact, I really don’t like the term design-led. It’s terrible because it’s so cocky to assume that everything is going to be led by design when, you know, all of the other influences, clinical, marketing, brand, you know, product, marketing, engineering, et cetera, matter so much. And so we’d like to think of a model more where it’s overlapping circles. And so I want engineering and marketing in design space doing some design work. I want the designers coding and working on product specs and PRDs and basically influencing that.  And so we play our position, but we also are often really outside of our swim lane. Which is threatening to the organi–, this is not easy. There’s conflict that comes from doing that. Psychological Safety Peter M.: Is that an intentional conflict? Is that a positive creative tension that you sometimes hear about in organizations? Or is this just kind of a byproduct of your leadership and prior design leadership and how you operate?  Peter S.: You know, I think if you go back to, you know, what is psychological safety, you know, and look at Amy Edmondson’s stuff, you know, on psychological safety, it doesn’t mean that everyone’s being nice. It actually means that you are openly challenging people, but in a very transparent way. You are never attacking them. You’re only challenging them and in a unique way, it’s so central to Dutch culture.  Like this is a Dutch company originally, and those value systems are part of every site, right? And this comes from John Locke and Spinoza and a culture where there wasn’t an entrenched king or elite class that drove decision making, and since a third of the country is actually under sea level. Amsterdam is like two meters under sea level. It meant that any one region or small village could basically break through a dike and wipe out a third of the country. And so power became distributed.  So what that means is this thing called poldering. A polder is actually the land that’s below a dike is a polder. And poldering means that everyone has to become aligned, and listened to, and challenged in this really open egalitarian way. And so, you know, often it means a ridiculous amounts of alignment to get decisions done, but then everyone really marches forward. And so it’s not top down, hierarchical the way European, maybe many German companies are more top down. Many West Coast companies are top down, but the Dutch companies are not. And I think that is a unique competitive advantage because it’s also highly tied to a tolerance for other people in terms of equality, access to health care, and how people take care of its citizens, et cetera, and a freedom to express yourself without judgment. It’s like that empathy actually becomes a competitive strength in how we care for our customers. And the transcendent purpose of better care for more people. Philips’ Distinct Culture Jesse: So this definitely suggests to me that you had to change some of your ways of doing things when you came into this organization, that the models from your years in Silicon Valley perhaps were not directly translatable to this new cultural context. And I wonder where you found yourself having to adapt the most in leading in this sort of decentralized fashion. Peter S.: Great question. That is a great question. First, let’s talk about why I came here in the first place. I came here because of the transcendent purpose that what you do matters. And there are many examples where we’re saving people’s lives, every day. Like there are moments where you actually have goose bumps from the stories that you hear about that man who falls off of an exercise bike in Seattle and has a heart attack, and then he’s saved by a Philips defibrillator. And you know, they, stand back and nobody knew how to use this thing before. And it’s so clear and they rip off the pads and put them on his chest and, press the button and it describes, you know, three, two, one clear, move out of the way. And that saved his life, right.  But that’s not the end of the story. Part of the story that is unique about Philips, tied to purpose, is they scan the device. And then they got everyone who assembled that product, with him, personally, to connect to, like, what you do as it relates to patient safety and quality, saved your life. And like, there’re moments where, like, I’m almost in tears about how deeply personal that stuff is and, that’s not manufactured, that’s like really authentic, but so okay, there’s my example of purpose.  The second reason I came is because the people, and I was lucky that Roy was actually one of the people that interviewed me, and I’ve never met a CEO like him, other than Satya, he, those two together are, are at the same level, I think, in terms of excellence and leadership and empathy and values and integrity and yeah. Like, one, I’ll tell you a story as it relates to people. Like, one night that we were doing a a user test. And that user test, there was a video, you were dialing into somewhere in Germany, there was a clinician who had this 3D printed housing with an iPad in it, you know, with a new UX that we have been working on for hospital patient monitoring. And it was going pretty well. And I just thought, you know, I’m just going to see if Roy is interested in seeing this, you know, it’s like taking a risk to the, how often do you message the CEO? But I just thought it was really interesting that he understands what… how things are built and process and made at Philips. And so I sent him a message on the internal Teams channel and he replied in like five milliseconds and he was waiting for a plane, you know, he’s at the airport and he dialed into the meeting and then the other designers in the call, it was like an 8:30 at night, really weird, you know, testing with, you know, there’s Roy Jacobs, you know, pops up on the header and they’re like, what, you know, like the CEO is like watching it and he never turned on his camera and he didn’t say anything, but he just listened, right.  And so like the fact that you have a leader that’s willing to dive down into that level of Gemba, it’s one of the reasons why I’m proud to be here. Okay.  So, purpose, people. And the last reason is that there is so much work to do here. And I felt like I could really drive impact. We have a lot of work to become a first class software company, because we’re an innovation company that now is maybe almost two-thirds software. Building Better Software Peter S.: We are world class at the hardware. We have a lot of work to do and the reason why Roy and others wanted to recruit me here is because of a digital acumen, you know, around things like DORA metrics and software quality and UX telemetry and design language adoption and how we deliver platforms and really up our game digitally. And, what struck me is how little resistance I get to driving those changes. The other thing is that… let’s take the best things that I’ve learned from Amazon. Amazon is the highest execution acumen I’ve ever seen in my career. It was two very difficult years that I had. It is not easy. There are moments where you’re grinding your teeth, right? And the psychological safety at Philips is vastly higher. But I will say that, like, if you want to see excellence in execution, AWS is a great place to look at. Amazing depth of mechanisms. And so some of those mechanisms, so, you know, captured in my head, you know, preserved all their intellectual property, of course, I haven’t challenged that.  But those things that in terms of thinking about how you drive excellence in interviewing, or even writing. I started a Powerful Writing at Philips class to up the level of our communication.  And so like you asked me, how did I change? And what is so amazing is I didn’t really have to change. The culture’s so welcoming of that challenge of raising the game. It’s the least conceited culture I’ve ever been part of, in terms of people are not threatened by ideas. You know you will be asked and challenged and like people will argue with you, but, it’s not political or personal nature ever. And so that makes it, you know really easy.  And then the other thing that I think has helped, because, you know, it’s always hard when you’re trying to bring about evolution or change in a particular area, is that we built a design agenda and the design agenda is a response to the business strategy as a compass for everything that we do and it’s composed of four themes: care, unite, simplify and elevate. And each of those four themes, Care, Unite, Simplify, Elevate, have a set of guiding principles that each design leader thinks about. And it’s how we evaluate the trade offs that we’re making so that we maintain the excellence that Philips has delivered for the next 100 years. And I think that being able to communicate and tell those stories has been a really powerful and important part of how we’ve driven, you know, those kinds of changes and…  But I would say that the one place where I have changed substantially is maybe less related to coming here, but part of my own lessons, is that I’m not focused at all on my own position anymore. I’m more focused on unlocking the creative potential of other people. And I don’t care about my ego. I don’t care about comp, you know, like, I realized in, maybe too late, maybe 10 years ago, but I started to, but like, it’s really true today that my ego is not wrapped up around the role and I’m really having so much fun recognizing that the more that I give back to others, the better the outcome is. Peter M.: I want to go back to the design agenda. Agenda is something that, Jesse and I talk a fair bit about, and you mentioned these four principles. I’m curious though, what is the Peter Skillman agenda, right? You have been granted… Peter S.: yeah.  Peter M.: …a role, an authority, a leadership position, and with that typically comes some idea of where you would like to take things, right? You’re not there simply to mind the store. You’re there to realize some evolution or change likely. What is that? Peter S.: I have four priorities right now and it comes from how can we deliver the best industry leading experiences to deliver better care for more people. And it’s always grounded in that transcendent purpose, right?  And so if I look at what are the threats to the next 100 years right now, it’s around software quality, UX telemetry services, experiences, and design language adoption. Like, how do we ensure that every single component is code backed with design tokens so that we increase agility by 50 times. And, you know, that effort at Amazon took four and a half years. At Microsoft, it took seven and a half years to drive full adoption of things like, you know it’s called Polaris at AWS, it’s called Fluent at Microsoft.  And there’s a lot of infighting about that adoption. But then some folks at Microsoft, with Satya’s support, delivered on One ES, or one engineering system. What happened when they executed on that, is that they were able to deliver Copilot in like three months, across all of Office.  That level of agility was never part of the Microsoft platform level software that was completely disunified. You know, look at Outlook. I was the head of Outlook when I was at Microsoft. And If you look at Win32 and Mac and OWA and mobile, though all those code bases were completely disunified, every single button had a separate instance of code. And so it meant that when you want high agility, you couldn’t deliver on that. And it took them seven and a half years. But then what I saw was the insane amount of agility that you get. Now, one thing I love is that, you know, Satya and Roy, they talk every quarter, right? So they’re talking about this stuff that like Roy knows what DORA metrics are, you know, for developer productivity, you know, like, how cool is that, you know?  So my agenda is about ensuring that we have the foundation to build an amazing future, right? Like, I’ve become a software evangelist and that’s where I’m honestly quite often out of my swim lane. And that gets to like how design leaders of the future– and you can ask me later about the design freak out, I have some super opinionated thoughts on that one– but like, I think that all of these things represent how I have to ensure that we have the conditions for success. Peter M.: When you say “out of your swim lane,” do you mean you’re now swimming in engineering waters? ‘Cause software seems to be your swim lane. Peter S.: If you look back historically, you might think that my swim lane would be industrial design. Industrial design is amazingly, like, superb. Color materials and finish thinking and, you know, we had a thousand colors. We went down to 100, and that saves incredible amounts of money and improves sustainability, like all of our systems and mechanisms around, you know, production and evaluations of first shots. And I mean, you know, I was forged in the cauldron of collecting first shots out of multi-cavity injection molding tools in Asia and Taiwan and Mexico and, absolutely getting into details about different aluminum grades, you know, and, how they anodize…  Peter M.: over chamfers… Peter S.: You’re right, that was part of my DNA. And I don’t have to weigh in on C2 surfaces here, and ellipses rather than radii on, you know, surface continuity. Like, everybody knows how to do that here. Like, they’re really good. But on the software side, I really have to work on providing industry backed examples of how we achieve that level of agility that you see at AWS and Amazon and the big magnificent seven, right? Because, those other companies are really truly world class at that. Managing At Scale Jesse: I wonder about how you manage all of this at the scale that you’re operating, and especially as you have a leadership that expects you to be conversant with detail. Sometimes you are right there in the weeds as an individual contributor. Sometimes you have to maintain kind of a higher altitude and I wonder how you set those priorities for yourself and how you choose where you lean in and how you lean in.  Peter S.: This is where again, being reforged in the cauldron of AWS, I learned some really excellent mechanisms about how to communicate. We have a QBR quarterly, like we review every single project in a condensed form and a document and all the design extended leaderships review have visibility into what’s happening across 18 different businesses, right? So that kind of clarity allows us to help maintain things like simplify, unify, elevate and care, like, the design agenda then becomes part of that. Like, Oh, you’re working in a very similar kind of use case. Let’s share Figma files and make sure that, you know, we’re, leveraging the same module or that we’re delivering a unified experience. Because what you want is you want every experience at Philips to be unified. I mean, obviously the consumer side, a little bit different in personal health, but you want to ensure that you have communication to ensure that that excellence happens. So that’s one mechanism and we do that both at the central team level and all also at the business team level. And then we have guilds. So we have nine guilds. Data and AI and we have product and spatial and we have design thinking and we have operations and tools and we have digital and all of those, sustainability, all those guilds meet to raise the bar on that particular specialty so that anyone in the company, regardless of whether they’re in design or not, can invest in ensuring exactly what is the top, most relevant, most meaningful thing happening in the industry and they learn and share so that we continue to raise the bar. That’s elevate.  Then we have obviously all hands. Then we have some really amazing mechanisms around the career ladder. We communicate to people, here’s how you get presented. We have a set of six lenses that we use to evaluate promotion. We do promo docs.  I learned this from Amazon. Amazon has the best mechanisms for evaluating talent of any company that I ever experienced. And so I can leverage things that I learned there, and recreated from memory with, and then optimize them and change them, so that they’re relevant in the Philips context, because the Philips cultural context is very, very different. So it’s unique. It’s not Amazon’s thing, but it’s what the things I learned about those mechanisms for delivery for communication.  Also, for writing strat facts, strategic narratives, PR, FAQs. That’s actually been adopted. Because working backwards from the customer through a structured document of high information density with like an open commenting culture in the document. So if you’re not in the meeting, if you missed it for some reason, you go back and read it. It’s far more inclusive. So this is also really good for, inclusion and diversity and ensuring that people that are neurologically diverse or introverted become part of it. Peter M.: You, mentioned the guilds and that made me realize that we hadn’t kind of level set just in terms of, like, what design means at Philips, like, where are you situated? Who is your boss? What are your areas of, what are your functional areas, right? If we think of design as an organizational function, it sounds like industrial design, software design, maybe design thinking, like give us some, clarity in terms of your organizational situation and kind of size and scale, just so we have a…  Peter S.: sure.  Peter M.: baseline to work.  Peter S.: When I assumed Sean Carney’s role, I had you know, over 600 and we went through a pretty substantial reorganization under Roy’s leadership and there, it was really important at that time that we go from a horizontal organization to a verticalized organization. This has happened many times throughout our history. And the design leadership, regardless of whether you’re vertical or horizontalized, so, what’s really interesting is that unifying leader, regardless of whether they report to you or not, has always been present.  And I was part of a group, along with my boss, who is the head of innovation and strategy. So I’m one layer away from the CEO, right? I’m an L3, level three. and honestly, nobody, no design leader, should report to the CEO. It is way better being one layer away. It means that you have an escalation path. It means that you’re not pulled into a lot of discussions that are not relevant to ensuring you raise the bar. The best place to be as a design leader in any organization is L3.  Peter M.: Just so we’re clear. L1 is the CEO. L2 is your boss and you are L3. Peter S.: That’s correct. Right. Exactly. So I had all 600 in 12 different studios, 35 different nationalities all over the world, you know, it’s Blumenau, Bangalore, Shanghai, Haifa– experiencing a rather intense, obviously, tough place to be in that studio, so we are highly empathetic with what’s happening there. Then we have Eindhoven and Amsterdam, which is kind of treated like one studio, and Bothell and Cambridge, Massachusetts. So it’s a distributed team worldwide.  And so, for example, we have other mechanisms. When we do all hands, we have to do two, one in the morning and one in the afternoon. We always have two, so that we are mindful of double time zones. And then we have you know, quarterly all hands and we share information and then there’s, like, newsletters and there’s all kinds of these mechanisms.  Shifting from Horizontal to Vertical Peter S.: So we went from horizontal, right, and what happened is we got really, really big, and there was a lot of research that design was doing unilaterally that the business didn’t necessarily want done. And so by verticalizing… so design evolved a little bit as an agency during that period. And so by embedding design back into the business, it absolutely doubled down on trust, and that alignment, like now that we’re verticalized and I don’t have, you know, I have a third of the reports or, you know, a little less than a third of all the reports.  I have more influence now than I did before because of the trust that has resulted from that restructuring. And honestly, there is no one best structure. You actually need to move from one to the other based on what is happening on the ground and what the organization needs at that given time. I used to be quite opinionated about this, but then I learned that you actually want, you want both. The Big Design Freak Out Jesse: So let’s talk about the freak out. You brought it up.  Peter S.: Yeah.  Jesse: What’s going on out there, Peter?  Peter S.: So, I think that, first of all, at Philips, design is an equal stakeholder. We sit at the table and there is no design freak out at Philips. And for listeners, the design freak out, there was this Fast Company article that came out, and several others, that essentially said that design has lost influence and power and provided a bunch of examples. And I think that those examples might’ve been true. You know, my thesis is that that article about the destruction of the creative class got it wrong. It isn’t the erosion of leaders. It’s that the existing leaders, in that cohort failed to recognize that the game had changed. And I can give you some examples.  You know, like actually what’s amazing is you have a new series of significant growth in amazing female leaders like Daniela Jorge, we talked about Kat Holmes. Amy Godee, you know, is an example at Publicis and Sapient, you know, she’s a designer that, has a huge organization, right. And these are the designers that are thriving, and they’re the ones that are actually jumping out of their swim lane.  And I think that there was a cohort of design leaders that got a little bit less humble about their position, and you could apply that they’ve lost a sense of their humility. You know, I think there are exceptions in the noose and the knives and the sort of Damien Hirst level of boutique influence that, but that stuff, you know, that doesn’t scale though.  But when we’re talking about mainstream business, I think what’s changed is that bias to action and ownership for execution with a willingness to jump out of your swim lane, and absolutely be addicted to the learning associated with every single detail of how the business operates.  There are great examples of, if you look at the fashion, Yves Saint Laurent and Anna Wintour and Coco Chanel and, Miuccia Prada, like all these people. Alexander McQueen. They’re in control for long periods of time. But now there’s a lot of turnover in fashion. You know, Virginie Viard just left Chanel. So if you look, the optics might suggest that there’s, you know, that’s happening in a lot of places.  But I think that what happened is that the job requirements for CDO or for a leader of design really changed, because, it’s, everything is focused on execution. And I’m a judge for the IF UX design awards. And so this weekend I spent like 22 hours judging 375 UX entries. It’s insane. And I will tell you, it’s fascinating because it’s a window into what’s happening in UX in the next two years. And I will tell you that the Chinese and Korean, like, the amount of innovation that is happening there is crazy. There is a huge amount of entries that focus on the fact that, you know, ChatGPT blew design thinking and, you know, people are adding all these irrelevant AI things to the products. But I think that there’s a hunger and a competitiveness that is really starting to influence the work of others. And I think that basically some of us got complacent and we need to double down on the unavoidable truth in this world, is that there is no substitute for putting in that intense hard work and really focusing on doing whatever you need to do to drive the business. It’s interesting that you call out innovation in this because it seems to me that, for a lot of design leaders, innovation is the piece of the value proposition for design that gets lost with this focus toward execution.  And so I wonder about how can design leaders keep the spirit of innovation alive in an environment where there’s so much focus on delivery. There was a period for Philips when there was a vast amount of money and time invested in doing long range vision projects. And I think that I’ve arrived at a different time in our business need. And, like, there is an incredible amount of innovation happening, but it’s focused on where we can drive unique value for better care for more people and, not like, okay, let’s envision, you know, the future of kitchens and, you know, 50 years and, spend, you know, a lot of money on, you know, custom copper, you know.  Like those investigations, I think we’re part of that era and I’m not critical, in fact, you know, some of it is kind of lovingly, you know, produced work that gave people, you know, maybe a sense of their context and culture and how I should think about, you know, some esoteric thing that they’re working on, but, like, the world has changed. It is so radically competitive. It’s still innovation. It’s just not open ended exploration, right? I think that you’re just naive if you’re going to assume that that’s what leadership is like in today’s context.  Every company, even look at Google, like Gen AI could potentially threaten the very existence of Google search as the dominant part of their revenue stream. I don’t know that to be true, but, that is certainly being discussed and so, like, constantly innovating means, like Philips has done for 130 years, that we’re gonna continue to evolve and find the place where we will deliver meaningful value to our… really to the customers that we care about. That’s where the heart, our heart is. Design Evolving Peter M.: You’re speaking the heart. I find myself wondering, as the game is changing, as you’ve explained it, right, a focus on execution, a focus on kind of nearer term relevance, and the need for designers to be more business conscious, you mentioned the complacency, right? Where it felt like these design leaders had kind of drifted away from a certain reality, a feet on the ground reality. I find myself wondering, what then is the heart of design?  Design starts bleeding in to these adjacent functions as it gets more business savvy. And I’m wondering where you see that center of design being, is it empathy? Is it craft? Is it creativity? It… like, how do you talk about it? ‘Cause design can be, I mean, you mentioned a design thinking practice, right? Design thinking is about letting everyone else embrace design. Design can have a squishiness. And so I’m wondering what you do to kind of reify it so that there’s at least some center that holds when you talk about design at Philips. Peter S.: Well, let’s talk about what leadership is first. For me, leadership is creating clarity, delivering results, and then the third and most underappreciated part of this is, generating energy and enthusiasm. So like, what we do is to unlock the imagination and potential of everyone in the business. And I don’t think that having those constraints, that we’re focused in a given area and making sure that we’re also driving the execution means that you’re not doing exploration. We have this amazing research group you know, that’s about Hermione, my peer, and who is the next great leader of research. You know, Philips has a set of tools and business mechanisms to invest in new things. Basically it’s almost like Y Combinator, you know, like a startup farm, you know, to invest in those. And so there are a bunch of ways that you can do that, but they’re not unilateral decisions by somebody that wants to just try something out. There’s a structure and governance for evaluating those ideas, and ensuring that they either receive or, if they don’t hit their milestones, and they don’t get money moving forward.  And it’s no different at Amazon. I mean, you would say that is also an innovation company. They have a part PRFAQ process and they allow for multiple products to be launched at the same time. I mean, at one time there were probably five different products that were doing anomaly detection and AIML, and they just wait and see which ones win and they keep them. Super frugal investment. I think that that’s, like, a great way to think about how you invest overall in your portfolio. Abby Godee, this incredible design leader at Sapient Publicis, and she’s also involved in, you know, organizational transformation, right? So, like it is design almost applied to HR, right?  And so I think that, that’s, what’s different today to be effective as a design leader, what makes it really hard, is you have to master a radical number of things if you’re going to manage at this scale. Because you have to have fluency, and it’s not a narrow area of UX or industrial design or experience or even co-creation, etc. But it’s also like how you look at HR and how you look at like, you know, business and organizational structure.  And it does mean that at this scale, that the personal commitment is pretty high, right? It’s not an easy job. You know there’s absolutely no substitute for doing the hard work. You never think small. Luck favors the prepared mind. You have to sell, sell, sell. Your ideas are your marketplace. You have to reframe failure. You have to break the rules. You have to shut your mouth and listen and learn and focus on others and not yourself. And doing all that simultaneously is really hard. And I’m still learning.  And I just fear, like I, let’s go back to the beginning of this conversation. Like, I’m always afraid that I’m not going to be good enough. This is so big historically. Like, I refuse to be the person that let design down, our hundred years of legacy. Jesse: Peter, what do you think other design leaders should be paying closer attention to here as design enters this next phase? Peter S.: I think that there’s one unavoidable truth. There’s no substitute for putting in the work. That means a bias to action and ownership for execution. Execute, execute, execute. There are tons of expensive vision projects that don’t belong in a modern company. And if I look to Asia, the pace of that execution is insane. It’s just moving faster, right? So, we cannot get complacent, right? and I think that next leaders have to become vastly more focused outside of their domain swim lanes, HR, PM, dev. I think that everyone has to become fluent in AI, because it’s just fundamentally changed how we do work. AI Peter S.: I mean, for us, there’s three big things with AI. It’s amazing, we haven’t talked about AI yet. Isn’t that great? Let’s celebrate.  The three things are the design tools have radically changed. You know, we’ve got AI and Morone, we’ve got our own internal enterprise version of, you know, C hat 4.0 and GPT. And we have Amazon Bedrock, and we have multiple models and we can produce an amazing persona that’s better than any of my career in like 30 seconds. I can just type in a new name, electric cardiologist, and it pops out the entire persona with a picture and pain points and everything. It’s like, it’s insane how much faster it’s made certain kinds of work happen.  But it does not threaten our jobs at all. It does not. You just have to be able to use them or else you will get hurt. Spun out by others that do.  The second thing that’s changed is insights and prediction. It allows us to deliver insights and deliver products with those insights. It’s called clinical intelligence. It’s like the idea of using data to make predictions, and that becomes a game changer in healthcare.  The third thing that’s changed is that it’s radically personalized. First, at the cohort basis, you know, we would hope that we have data that’s based on female or male and, and that we leverage that personalized care to become even more detailed. If it gets all the way to your DNA, we’ll need to make sure that we’ll have pretty good security so that maintains your degree of privacy.  But in the beginning, it should at least be cohort based. And then mechanisms for ensuring safety such as bump stops and human in the loop to know that you have, you know I think I’ve already agreed to some summary, or I’ve read it, and, yes I agree with that AI prediction or action that’s being taken. The second of course is that you have visibility that something is AI generated. And it could be through a blue ring, or it could be through an animated icon, so that you know whatever’s being served to you, it’s clear, it’s transparent, and that there’s also traceability for the people. But, okay, so there’s those tools. It’s personalization, and insights, and it’s radically different tooling for us.  But then I think that the role of design is also to focus on the beautiful essentials, simplicity and speed, bridging the gap, it’s still, you know, an everyday fight to ensure that we focus on doing less better. What you remove is more important than what you put in. You should invest in building agility before you invest in new features. The unconventional wisdom is that if you address customers’ frustrations, rather than adding new features, often fixing and making better what you’re selling in the truck today, that’s far better then adding a bunch of new stuff.  It’s just optimizing workflows in healthcare. There’s a crisis for our clinicians that spend 40 percent of their time entering data. And they’re getting farther and farther away from what brought them to the field in the first place, which is caring for people, right? And so that burnout is leading to a threat to the quality of care, and it’s also to the cost of care. And, the thing we need to focus on, the main task for Philips, right, for this, it’s workflow, and simplifying their lives, minimizing the number of clicks so that they’re more efficient. And when you apply AI, most of the… 95 percent of our value is just in treating the mundane, beautiful essentials. It’s not doing some extra high acuity AI task with a very expensive, complicated model. A lot of it is just, like, improving search. And so I think it’s really important to stay focused on the basics. It’s really easy to forget that. That’s the core of what design does. Peter M.: You’ve been at this for over 30 years, as Jesse and I have. You talk about the amount of work and effort it takes, even for you now, today, to maintain a level of your performance that you would consider acceptable. And when I hear that, I get exhausted. And so I’m wondering, what is driving you? Like what, what’s motivating you? Why are you still willing to, I’m sure, put in the long hours and get on planes and you know, whatever it takes in order to do this, what’s driving you? Peter S.: Let me ask you this. What motivates ambitious and creative people? Both Peter and Jesse. Tell me.  Jesse: Growth, purpose,  Peter S.: Okay.  Jesse: Making things real. Peter S.: Awesome. I’ve been asking this question in interviews for 30 years. So I’m really interested in how people respond. Peter. Peter M.: I mean, when Jesse said purpose, your own sense of purpose, whatever, what, you know, we each have a thing that drives us that gives us meaning. And so that’s what… usually that. And so I’m curious if, is that it for you? And if it is, what is, that purpose for you?  Peter S.: For me, I am on this earth to unlock the creative potential of other people. I figured out about 15, 16 years ago that that is the funnest thing for me. And when I’m done with Philips at some point in the future, I’m going to go teach part time. I love to teach. It’s really fun. And I mean that, that’s how I derive energy. That’s my purpose.  The second thing is, Jesse, what you said so beautifully is growth, mastery. Like I am addicted to learning. And this place is an amazing place to learn. So that makes it really fun. And the work-life balance is still a lot better. I do not wake up at three in the morning, grinding my teeth. And I also have people that are so empathetic, you know, my weakness is that sometimes I can overwhelm people with my passion, and so I sometimes need to meter it back a little bit.  And the second thing I have is that if I feel like I’m being undermined, I can become a little fragile, and then become less self aware. And so in cultures where I felt undermined, I’ve been less self aware and sometimes that’s run into problems. But, Philips is like, it’s really loving. And so it just makes it easy, like, because it’s fun. It’s just like relaxed.  So anyway, we get to purpose and mastery. And then the third is self-direction, right? Autonomy. This is now, I’m referring to, you know, Steve Pink, you know, RSA.org. The autonomy is the other highly motivated thing is… I am not micromanaged at all by my boss. My boss is like completely like, you got it. Go drive it, right? Here are the constraints. And that makes it really fun cause I have a leadership team that is like welcoming of these changes. And so, you know, all those things like combined together, like that’s what’s driving me.  Jesse: Peter, thanks so much for being with us. Peter S.: It was just an honor. Peter M.: This has been fantastic. Peter S.: Thank you so much. It was really fun.  Jesse: For more Finding Our Way, visit findingourway. design for past episodes and transcripts. You can now follow Finding Our Way on LinkedIn as well. For more about your hosts, visit our websites, petermerholtz. com and jessejamesgarrett. com. Peter recently launched the Merholz Agenda, his semi weekly newsletter. Find it at buttondown.com slash petermerholz And if you’re curious about working with me as your coach, book your free introductory session at JesseJamesGarrett. com slash free coaching. If you’ve found value in something you’ve heard here today, we hope you’ll pass this episode along to someone Else who can use it. Thanks for everything you do for others, and thanks so much for listening.
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Dec 1, 2024 • 46min

52: Design at a Crossroads (ft. Audrey Crane)

Transcript Jesse: I’m Jesse James Garrett,  Peter: and I’m Peter Merholz. Jesse: And we’re finding our way,  Peter: Navigating the opportunities  Jesse: and challenges  Peter: of design and design leadership,  Jesse: Welcome to the next phase. Joining us today to talk about what’s next for design is veteran Silicon Valley design and product strategy consultant Audrey Crane, who will share her perspective on the changing mandates for design among her clients, the power that consultants wield that in house teams don’t, and why sometimes the most effective design leaders are those who talk the least about design. Peter: So Audrey, excited to have you here to work through some of the topics that Jesse and I have been discussing for a few episodes now, on kind of where things are going, for design, design leadership. But before we dive into that, I think it would be helpful for our podcast audience who might not have met you, read you, heard of you, how do you introduce yourself? What do you do? How should people think of you out there in the world? Audrey: Yeah. Well, so Audrey Crane, I’m a, partner at DesignMap. So we’re a consultancy. Do I say we’re a design consultancy? I don’t know. I think that’s one of the things we’re going to be talking. Let’s say product strategy, with some design support, company. So we’re San Francisco based. We’ve been around for 18 years, and we do a lot of B2B, B2B2C, like, complex product strategy. But I’ve been around for a long time. I was working at Netscape in the mid-90’s. So I consider myself, I flatter myself, a graybeard of Silicon Valley. Peter: Does that mean you’ve been doing this work for almost 30 years? Um, Audrey: That can’t be right. But I was super lucky to be, you know, at Netscape with Marty Cagan. With, I worked for, for Marty. I worked for Hugh Dubberley. I was in the room when Marc Andreessen first started talking about the famous “good product manager, bad product manager” stuff. So it was the olden times, but those people are, in a lot of ways, I think more relevant. And I was super lucky to get to do that. Like most theater majors, you know, just like somehow landing in the middle of Silicon Valley during the dot com boom of the late nineties.  Jesse: Your company, is called DesignMap, but you hesitate to call your work design. And obviously there’s, there’s something going on in that. And I’m curious about just your own relationship to design yourself as a creative professional. Audrey: I did study theater in college and I studied math as well. I studied a form of mathematics that’s like very theoretical. And so growing up, I think a lot of kids still are like, they’re good at math or they’re good at English. They’re good at one or the other.  But theater in particular, as a creative outlet is really, really bounded, right? You have like the script and what you say and what other people say. And then on the other hand, the kind of math that I was doing, which was really like, by my senior year of college, we’re just writing proofs. Like there’s no numbers left anymore. And there’s actually a lot of intuition and creativity that goes into that.  ‘Cause like of all the things that we know to be true about whatever kind of math we’re doing, like, what’s the next thing that’s going to get me to where I want to go. Even to the point where I mean, this is like the nerdiest thing I could possibly say, but like reading proofs that gave me goosebumps because they were just like so elegant, you know, and, and so smartly put together. And so when I graduated from college and I was like broke and happened to be able to, have done some tech work because my dad was an engineer, way in the olden days, I landed at Netscape. Solely because Hugh Dubberly saw my resume and was like, math and theater, like, that’s super weird. I got to meet this person. And then I got to work for him. And through him, I found that this design thing, which for me, at least is like a perfect match of empathy and creativity, but also like problem solving within boundaries towards a particular goal. And so it, matched my brain pretty well, that for me is like the creativity of constraints is really, really fun. And design is a place where I think still, like, a lot of people don’t know that it exists, that you, don’t have to be just like a highly creative, quote, unquote, right brain person or the other. Jesse: What’s your relationship to design these days in your practice? Audrey: I think that you can apply a design process or design thinking, if you must, to pretty much anything. So a lot of times now the design work that I’m doing is like, this client really needs this thing and understanding what the thing is that they really need like that by itself is like a listening and learning process. Sort of like when somebody goes to the doctor and says, I need this medicine. There’s a lot of questions to understand, like, what’s really going on and is this medicine really going to help you? Or is it something else? That and figuring out, like, what do we do that might help solve that problem, and can we do it within this timeframe and this budget, is actually like a pretty fun, creative process for me. It maybe sounds horrible and dry, but I really love it. And if we can’t help them, figuring out who can help them, and brokering that introduction.  But at the end of the day, it’s still a problem. And I want to understand the problem and think through lots of different ways to solve it and figure out a path there. So that’s not to say that I don’t work on projects specifically. And sometimes I do, and that’s really fun. But a lot of times it’s more at that kind of second order, third order of design, if you like, from the, product.  Now, is that strategy? I don’t know. Yeah. Peter: Well, and, reflecting on something you said at the outset, where you weren’t sure what to call DesignMap, which has the word design in its name, but you’re like, are we a design consultancy anymore? Which, you know, Jesse and I started Adaptive Path in 2001, and we called ourselves a user experience agency, and we didn’t use the word design in how we defined our work for years, because of associations with that word that we didn’t feel were appropriate for us. So let’s, get to that, you know, your company is called DesignMap, but you’re not sure if you’re a design consultancy. What’s up with that? Audrey: OK. We are a design consultancy. So I say that a little bit tongue in cheek, but if we think about what the market wants, does the market want design? You know, I’m not sure that if, I just approached somebody and I said, Hey, we offer design services, that anybody in the market at the moment is going to be like, “Oh, great, I need design services. That’s what I need. I need design services.” Right?  They might need help with stakeholder alignment. They might need help kind of articulating a vision. They might need help solving you know, a problem where the usage of a product has plateaued and they need it to improve. All of these are things that can be solved with design. But I posted about this recently, and I think that what I’m seeing is that people are using the word design less, and it’s not just quote unquote, “speaking the language of the business,” which I think we’ve been talking about as a design profession for a while now, right? It’s not just being articulate in you know, whatever, TAM, what’s the total addressable market, but actually just only using those words and design just happens to be the tool that we’re using to solve whatever problem or opportunity we’re talking about. Peter: When you mentioned people are not using the word design anymore, who people are not using the word design anymore? Is it that prospective clients aren’t using the word design anymore? Is it the designers are wary of that word? Audrey: Who’s the they? Yeah. I mean, I think famously Katrina Alcorn, like, really put her finger on it when she left IBM and said whatever my next job is, is going to have the word product in the title. I remember a part of what she said was, I feel like I’m doing so much of what is maybe traditionally considered product anyway, like I might as well take the title and have a bit more control and it’s almost like the word product is hard and the word design is soft, somehow.  So I think that was kind of the first famous moment. But then I have a lot of, friends who are VPs of design and at DesignMap, we have a voice of the customer program where we pay a recruiter to recruit VPs of design. And we sit and we talk with them for an hour. We do this as like a regular practice, like taking our vitamins, as they say, right?  And when I hear my friends talk about it, see decks from VPs of design, it’s so striking. And they don’t even point it out to me, but the word isn’t even there. Like, I, just saw a VP of design, it was her budget for next year and her proposed budget had foundations, and investing in foundational work, and acceleration and all these other things. And I commented to her, you know, you’re a, she is a trained, like, dyed-in-the-wool career designer, like, and the word design doesn’t show up here. And she said, “Oh God, no, you know, absolutely not.” No, what this actually is, is it’s a design debt. What this thing over here is, is design systems and like heuristic review and improvements. So she like almost code switched with me. But when I’m talking about investing money in my team and in external support, that’s not the word that I’m using. It’s super interesting. And there’s, something about all of these things, right? Like how many years have you heard designers complain that they are having to do product managers’ jobs? Like not every designer and not every product manager, but I mean, I’m sure that I’ve heard designers talking about that for 15 years, right? And then, on top of that, this, not just being able to speak business-ese, but that’s all you’re speaking in, is really interesting to me. Peter: So yesterday I was onsite at a company for their internal design celebration that very much used the word design. Public company, 84,000 employees, lot of hardware, manufacturing. So when they talk design, they actually were talking a lot about industrial design. They had their Chief Product Officer show up at this event and talk about how he wants this business to be design-led.  And I’m saying this not to disagree. I’m saying this to suggest, I think, the conversation is really scattered and lumpy. And in some contexts, design has become a dirty word or it has become minimized to mean production. And so like the leader that you were talking about, right, if they want to talk about stuff that isn’t pumping out assets for engineers to code, they have to use new language to get at what we used to call design or, you know, user experience practices. But then there’s still other companies that are celebrating the opportunity of design and want to be design-led and talk about Apple as a standard bearer. And I guess I’m trying to make sense of, this polyphony around the concept of design. This company that is celebrating design, when this Chief Product Officer talks about design, he had a fairly, I would say, narrow view of what it is. And he talked a lot about the emotional connection and the emotional engagement that design drives. So, while you’re talking about how design can be a tool to help I don’t know, roadmaps and all this kind of strategic thinking and all, this leader is still seeing design as how do we create something that people love, in this kind of visceral, emotional way that feels very product-y, feels very, you know, Apple…  Audrey: Like fonts and colors…  Peter: Yes. As opposed to, like, what you were talking about, which is design as a means to solve all kinds of problems.  Audrey: Articulate a strategic vision.  Peter: Well, yeah, the opportunity of design thinking was this recognition that design is a set of practices that can be applied to literally any problem. Audrey: Yeah. Well, were you surprised that the design celebration happened, that it was so design forward that the product, head of product talked about it that way? . .  Peter: I was a little surprised. I mean, many companies still host internal design and user experience summits, right? And so, you know, I expect that community to come together. I was a little surprised that this Chief Product Officer took, I think, at least an hour out of their day to communicate to this group about the importance that he sees this group of people having for the future of the business and his commitment to it. It was also interesting, you know, hearing how he talked about design in a way that was very, again, product-oriented and, frankly, kind of hardware oriented. Whereas this was a group of people who were mostly working on software. But what I reflected to the group when I spoke at this event, you know, listen to how your leadership is talking about design, right, and, what kind of purchase does that give you? How can you start with where they are in terms of that understanding of design and then, and then move them along?  So there’s an opportunity there. Audrey: Yeah. It’s interesting that they use the phrase design-led and also seem to talk about it just in, like, the product emotional appeal way. It’s very interesting. I’m super interested in the overlap of the Venn diagram between like designers and product managers or designers and engineers, or just, you know, designers and the rest of the world. And you know, there’s so much designers talking to designers about design. I wish we talked more outside of that. It’s interesting though. I, I’m friends with Marty Cagan and I was at his book launch a couple of months ago for his latest book. And, I think like the shorthand of it is that I actually think it might only be designers that are not wanting to use the design word. Right? Because I can’t think of any product leaders who have done that, or even really that know what’s going on. And so when I chatted with Marty, and then I was lucky enough to have drinks with Dan Olsen as well. He runs like a big product leadership get together at Intuit on the peninsula…. I can’t remember where, but there was like no awareness about the big design freak out at all.  And so I’m like, oh my gosh, like whole design teams are being let go, like amazing design leaders are looking for their next job for actually years. Like, designers are changing their titles from design leader to product leader. Like it’s a whole big thing. They weren’t aware of that. And I think that’s interesting, especially because those two folks, Dan and Marty, are like talking to everybody all the time. Right.  So that was interesting. And also one of the things that Marty said, you can see the video of this in the talk that he gave at his book launch ,was I was just chatting with a CEO and he said to me there’s 200 product managers in this organization, and if I let them go tomorrow, I’m not sure that anything would be any different. I can’t tell you what it would be.  And Marty was using that as like a, Hey, you guys, you got to pay attention and start doing great product management. To me, that sounds like what’s happened to some friends, frankly, where like the whole entire design team did get chopped off in places because, I don’t know, Elon Musk, like, I don’t know why there’s just this like, oh, we can let everybody go and we can still operate in the black, and so why not?  Two points, I guess, right? One is maybe, like, trying not to use the D-word is maybe something that’s only happening in the design community and that other people aren’t aware of that or concerned about it. But that also maybe this is impacting other roles that have, you know, arguably potentially similarly squishy impacts on outcomes for businesses. I’m sure a product manager wouldn’t like to hear me say that, but… Well,  Jesse: it’s interesting to think about it from the product management point of view, because it’s true that if you look at the discourse, such as it is, on LinkedIn, if you look at what design leaders are talking about, they are constantly talking about improving the relationship with product and making the relationship with product successful. If you look at what product leaders are talking about, they are almost never even referencing a relationship to design, never mind investing in strategies for improving that relationship. And so I find myself wondering about the cultures that both sides have now inherited, you know, in the 30 years since Netscape, that kind of bake in a bunch of assumptions and a bunch of expectations of the other side that are creating these blind spots because, yeah, seems impossible for all of this to be going down on the design side and the leadership in the product community, not even recognizing that it’s going on there. Audrey: Having no idea.  Jesse: Yeah. So I wonder about, like, what’s it going to take to build some bridges between these communities so that we can at least have that sense of mutual visibility. Audrey: Gosh, I mean, I think that’s an amazing question, Jesse. I, you know, I’m in the Leading Design Slack channel and I’m in the Mind the Product Slack channel, and Mind the Product has, like, product and design, like, within there and nobody ever posts there. And similarly, there’s a similar channel in Leading Design, nobody ever posts there.  And, you know, I mean, I think it’s great, Christian Crumlish wrote his book, Product Management for Designers. My book, Design for CEOs, is about, like, trying to talk to other people about the tangible value of design and just the basic language. I mean, hopefully neither of you have ever read that book, because it’s so 101-y, but what we were finding is that CEOs were asking us why wireframes didn’t have color in them, or saying, like, when are we going to get the design maps? Like, we just didn’t even have the most basic shared understanding of language and process. But also, every time I go to a design conference, if there’s a non-designer speaking, like, that’s one of the most interesting talks, right? So, I don’t know why we don’t reach out more.  But also, just talking about like product managers and designers working together, like, I sort of looked for a while for like, here’s a framework that we can say, this is what we expect of product managers and this is what we expect of designers. Like surely there’s a framework, right? And so I reached out to, I don’t know, 40 designers and I said, tell me the best thing that you ever got from a product manager and why you liked it. And I’m a pattern finder. I love models and concept maps. It’s like totally my jam for making sense of the world.  And what came back was total chaos, just all over the place. Absolutely, I couldn’t find a pattern in it anywhere. And, I mean, the reflection that I had is that these are two individuals who have their own experience, their own, things they love, things they hate, strengths, weaknesses, training, expectations, and that kind of like three-in-a-box idea, or like dedicating teams that get to work together long term so that they can storm and norm is maybe the only way to do that because, there’s too many different things that need to be done at any moment in time, the product discovery and design and development release process and people are just too unique, and maybe we can’t do that.  But, I agree with you, it seems very odd to me that there’s not more conversation across disciplines and, business, strategy, product, and we’re so sophisticated, I think design, I mean, you guys are giving PhD level talks at conferences, like we’re, we, I feel like we’re pretty good at it, you know, but what we’re not good at is, like, working across teams. And I really don’t know how to make that work better. Peter: I find myself wondering… The anthropologist comes out in me, and how much of this is cultural and, and the cultures of design and design practice and design as a function.  And I’m having trouble saying the culture of product management because I, think product management isn’t nearly as coherent a culture and a function as design, right? So many different paths into product management, so many different flavors of product management, depending on what kind of organization you’re in, right? To be a consumer product manager at a social media company is very different than to be a B2B product manager at an enterprise SaaS firm, or to be a product manager at a bank or whatever, like, I think there’s a less shared culture.  But there’s something in terms of where folks are coming from, and then when they’re brought together, no work is being done to bridge those gaps. It’s just like, you got to work together and please start producing value tomorrow.  Audrey: Right. And you got six weeks and then you’ll be on something else. Peter: Right, And you mentioned storming and norming… There’s a whole category of assumptions I had…. So Jesse and I, you know, we worked at Adaptive Path. I left Adaptive Path at the end of 2011. And as I entered the world of in-house product building, this was the start of things like Spotify squad models and stuff that was written about in 2012, Amazon two-pizza teams was also at least kind of popularized in 2012.  And I was under the assumption that like, Oh, when you go in house, you get this stable team of folks who are working on a problem together for, weeks, if not months, on end.  And they’re no longer working on projects. That’s the bad old way. That’s an internal services model. They’re working on a program and a product, and they’re just always endeavoring to make it better. This is over 10 years ago. This was what I had been hearing as the prevailing model of… Jesse: right,  Peter: balanced teams, empowered teams, agile teams. And then you go in house and you’re like, no one is operating anything nearly like that. Audrey: I mean, a few companies, but yeah.  Peter: So few.  Audrey: Yeah. Right. You got six weeks to do this and then you’ll be in the next thing. And, oh, by the way, you have 20 percent of your time to do it. And for whatever it’s worth, I think the kind of… “strategic sacrifice” is a phrase I learned from one of these VPs of design, I’m like, I’m just going to call bullshit.  Like there’s no way that with 1/16th of their time, that this designer is doing anything except for going crazy and maybe getting complained about, right? So like, I’m just not going to resource it. And we all know that like an engineer or product manager or somebody somewhere was designing it anyway. But we’re pretending like this poor schlub is spending 1/16th of their time? Like, no.  And I, agree with you. I mean, I’ve been internal too, and with our clients as well, we ask them these questions, but it’s just like a resourcing shell game. I mean, I agree with you about the differences between the design and the product culture, but we’re kind of all doing the same thing, right? We’re, like, trying to help somebody somewhere do something with this company, product, or service. And we’re telling and testing stories about how we’re going to do that. Our tool for storytelling is Figma, their tool for storytelling is Excel, but otherwise, you know, I just don’t think it’s that different. A big question is like, how are people incented in the organization, right? Jesse: Yeah. When Peter was talking about the cultural diffusion in product management, I think it largely has to do with the very diverse range of incentives that exist in product management, depending on the category, depending on the product space, depending on the problem space. Whereas design seems to have some kind of sense of its own center in a way. It has a sense of purpose in the world beyond what somebody told us it was, you know? Audrey: I mean, it would be super interesting to try to map out the product management culture. I think it’s, it’s easy to say from the outside, like, Oh, there’s no real culture. It’s very diverse.  Jesse: Yeah, of course.  Audrey: But when I hear you say, Jesse, like we have a center, I don’t know if this is what you’re thinking of, but certainly one that I could think folks might go to is like, we are the advocates for the user, right? That’s our role. I’ve heard product managers say, I do not ever want to hear a designer say that ever again. We are all advocates for the user. Like I’m not anti-user. That’s what we’re all trying to do. You guys don’t own that. Peter: But then I hear one of my client’s Chief Product Officer, where I was helping him hire a VP of Design, saw Design’s primary role as the voice of the customer within the product development process, right? And so that’s again, like. there’s, not an agreement or alignment more within product. All designers see their responsibility as being a voice of the customer and a representative of the user in the process.  Within product. Some do, some don’t.  Audrey: It might be to meet a deadline. Peter: Some think it’s a good thing to delegate it, right? Like it’s not like they don’t think the customer matters, but they’re like, well, the product person’s got so many things to deal with, thus, the designer is the one who’s best responsible for that right? I don’t think it’s out of neglect or disinterest. It’s, how do we get all these people to get things done without overwhelming them?  Audrey: Yeah. I think that that product manager was reacting to the idea that, like, there’s some high ground that the designer could stand on, or they had a veto because they were the advocate for the user versus the product. I think it’d be, like, super fun to have a conference where engineers and product managers and designers came and all the talks were my favorite, or my worst, experience with other disciplines. And that would be really interesting. And at least we’d be like, listening more, you know, outside of our little talking bubble. Jesse: You know, in your client work, you have the opportunity to directly observe both design leaders and product leaders as they do what they do in organizations. And I wonder what you’ve seen has helped design leaders have that broader influence and drive that broader vision of what design has to offer. What’s helping design leaders be successful as cross-functional partners? Audrey: I think a lot of “yes, and”-ing, Ooh, I, you know, kind of being opportunistic about ways that they can help. And I don’t want to say being nice to work with, but I honestly have, heard and seen designers say, I used to be an asshole, and now I just try to be nice to work with, that’s what I tried to do. And then if there’s an opportunity where I can help, then I do.  And one person in particular was talking about like, we used to just like really focus on the products and just like, we were just product design, but I started to see opportunities where people are having trouble making decisions or getting alignment or just making time for whatever. And so I started to offer to help. And this is a VP of design saying, like, can I facilitate a workshop for you? Like, I would be happy to help.  And these conversations, they were, I think, again, a bit opportunistic about, like, these like more senior strategic level conversations, only casting themselves in the role of facilitator, but being in the room, being perceived as helpful, perceived as being able to support progress. And at the same time, like, that person sort of grew that into almost like a practice inside of their organization, where folks would come to him and say, Hey, we’re having trouble with this, can you, like, lend me somebody to help with this conversation?  And so he’s doing a bit less product design, and at least, has a bit more visibility into more strategic conversations.  So there’s two parts to that. One is like the gatekeeping, fighting, you know, for the seat at the table. That language and that stance is gone. They’re like nice to work with. And then just looking for opportunities to help in a way that gives them more influence and visibility in the organization. Which also I wrote about it on LinkedIn and, a couple of people were like, Oh, so acting like grownups is what you’re saying.  Peter: I was about to say like, how, who the fuck were we, that we could show up as if our shit didn’t stink and expect people to just like engage with us? Like, if that’s how people are showing up, then yes, no kidding design is going to be excluded.  Audrey: But didn’t you work in organizations or haven’t you seen organizations… like I certainly did, and then what happens is like the product manager tries to go off piece, and like hire their own designer because it’s so hard to get a resource, and you have to go through this central blah, blah, blah, and they get in trouble for that too, and it’s just, it’s really like controlling and there’s the whole bottleneck thing and like, but we did, we did act like that. Some of us. Sometimes, probably not me or you guys, but you know. Jesse: Well, no, I mean, I think that it’s a cultural pitfall, really, of the entire field. I think that, you know, if you come up as a practitioner, you have to invest a bit of your ego in your work. You have to be willing to stand behind it and defend it and argue in favor of a point of view just to be successful at the design part. Then you get into design leadership and that same stance kind of gets carried forward. Only now it’s not about the craft anymore. It’s about strategic direction, and things like that, where the weight that you carry in the room is a little bit different, right? Once you’ve kind of reached that leadership level, and the ego that served you in shoring you up to defend your creative ideas is now a disservice because it, it’s a wall between you and your partners. Audrey: What I love about working with designers who have been to design school, honestly, is that they spend four years getting criticized. And so they have like, a tenuous relationship with their work, where it’s not that they don’t care, and it’s not that they don’t feel good about it, but also there’s like a separation, and I flatter myself that being a theater major, I also got criticized for four years, but I hadn’t thought of it the way that you’re talking about it Jesse, and I think it’s interesting and there’s got to be some merit in that.  You’re putting yourself out there in a way that nobody else in the room would be willing to do, right? How many times are people like, I don’t want to draw on the whiteboard, much less all this, right? And it’s just, it’s very different from like what happens in a code review, for example.  I also think, like, the profession is just so new that we had to spend some years being like, no, no, no, we’re here. We’re here and we do stuff and the stuff that we do is important and helpful. We want to do it. Like it’s important. What I do is important and I can help the company. And I’m going to keep saying that over and over and over and over and over again. And it just got kind of like rigid, like fighting for his seat at the table. And now maybe we’re here. And if we want to stay here, then we got to act like grownups.  I mean, I remember the AIGA was, like, involved and wanting to talk about like, what are all the specific titles and what’s the difference between user interface and user experience and interaction design and wait, interface design, wait, and I just went in a whole circle.  I was at a conference once, this is probably in the early 2000s, where there were like three talks and all of them, it was a design conference, all the talks had like a Nelson clock, like, you know, that iconic Nelson clock with a big circle in the middle and then the balls on the outside. And each talk was like, My role, insert role here, information architecture is the center of the design universe. And then the next one was like, user experience is the center of the design universe. So I don’t think we’re doing ourselves any favors with I mean, especially like UX, UI, like my gosh, like I can’t tell you how many times people say, oh, we need a UX/UI designer. And I’m like, hmm. So you would think that I would know what you’re talking about, but I actually have no idea what you’re talking about when you say you need a UX/UI designer. So some clarity sounds good. And you’re right, like who would want to say like, no, I just do like digital product design. I don’t do strategy. That’s not me. That’s not what I do. Like all consultancies that I know of, that are more than a person or two, have been in decline for the last two years. So there are fewer people coming and asking these questions. So if I tick off, like, the last five clients that came to us, who are not heads of design, one person has a giant B2B product that has been around for 10 years and the usage has plateaued and they wanted to get better. So I’m very glad that they’re coming to a design consultancy for that. One, similarly, kind of, like, how to go with an IT product that, basically, like, customers are hating. And so we’re picking some more key workflows and obviously, like, looking at customer support calls and things like that. Another one is a head of product where they have a homepage and then this wild hare, that’s like a favorite idea of the C-suite, is competing basically with the homepage, and he’s like, I don’t know how to make sense of these, and it is a pretty strategic conversation, right? It’s not just like, what do they look like? But who are they for? And why would they use them? And I’m kind of stuck with this pet project and I need to make sense of it so that it doesn’t suck, because I have to.  I don’t know if you can draw any conclusions from what I just rattled off there. One is a regional bank who’s moving off of the white label stuff that they use. So, from their point of view, they have a product team. Like they have a CIO, not a CTO. They have product managers who are really product owners that work for the CIO. They have two designers that work, actually, for the marketing team. And they’re kind of ready to move into, like, rolling their own products.  But even though, obviously, they have digital services, it’s like a digital transformation problem, like the whole organization needs to change. So they came to us to like design the product, but what we’re talking to them about is like, you’re not going to, this isn’t going to work, and we’re not just going to give you a, like, a prototype that you’re not going to be able to build. So it’s kind of all over the place. But a lot of what we’re doing, actually, I can draw one conclusion is we’re doing more and more, like, vision work, where either there’s one guy, let’s say he’s a founder and he used to be able to get all of his employees in a room and get them excited.  Now he can’t do that anymore. And he has a clear vision of where he wants to go, but he can’t articulate it and get people excited about it. Or there were a bunch of acquisitions and now we’ve got to figure out like how the whole is going to be greater than the sum of its parts. And so there’s, like, a somewhere that we need to be in a year or two or three, and we want to get clear on where we want to be, and we need to communicate where we want to be.  So you could call that a visiontype if you want, like some of it is so near term that it’s a prototype and it’s, I flatter myself maybe, that it’s kind of what you would get from a management consultant that you trusted, where it’s like, we talked to customers, we talked to stakeholders, we looked at the competitive landscape, we’ve got these eight bullet points. And then like everybody nods because they’re just bullet points, right?  But then we actually do a prototype that illustrates where those show up and that difference between, like, quote unquote “strategy,” which I think would just leave off at the bullet points, and like design, where we can make it tangible and you can click through like how that key insight shows up in the product and shows up for the customers. You can touch it and feel it and get excited about it. You could show it to your CEO or your board or your customers.  Like that is something that we’re getting more traction around and people are more interested in. And also is something that I think design is uniquely qualified to do, because that tangible bit is really important. Jesse: It’s interesting that you bring up this tension, because it really does kind of circle back to what I think of as the original promise of user experience design, when that term came to the fore, which was the idea that there was an opportunity in the synergy between the conceptualizing, the ideation and the execution. And if you had that unified as a single function, that there was value to be gained there, that there were better outcomes at the end of it. If the people who did that early conceptualizing were the same ones who ultimately specified what shipped. I can see that in the context that you’re talking about still absolutely being a viable value proposition for a lot of in-house teams that hasn’t really been proven out. And in fact, their structures have evolved to a place where there isn’t really space for the people who are responsible for shipping your pixels to participate in ideation. We don’t have the processes for it. We don’t, we literally haven’t hired the right people for it. And so I’m wondering about what you see as the future prospect of that value proposition. Audrey: Yeah, that’s a drag. I, you know, for sure have been in-house and it’s, awful, right, when you’re in house, you probably even have ideas, right, that’s the kind of work that you want to do.  But then honestly, the mere fact that dollars are being spent outside is what makes it possible because it seems like we can say that this is a priority until the cows come home, but as soon as we see a highly paid consultants invoice, or even a moderately paid or a lowly paid consultants invoice, like somehow those dollars feel different. It gets prioritized. You get time with the stakeholders that you need to meet with. It gets time boxed, right? It doesn’t get, like, drug out because, oh, we have these internal resources on it, but now there’s this feature and this customer is demanding it and they have to go over there and it just like fizzles out.  It’s a bummer and I, I’m quite sensitive to it, because I have been internal, and my take is, like, strategy without implementation is just bullshit and nobody wants to be in the bullshit business, right? But I have been internal and gotten a strategy with no thought, not a second thought to whether we could actually implement that. Jesse: Mm-Hmm. Audrey: And then they got to go and they didn’t have to live with it. And it’s not a good position to be in. You know, there’s at least two things that can make that different. One is, is working with a consultant who can point you to people who have received their deliverables. And because , we can all say, Oh yeah, no, the internal team will be highly involved and blah, blah, blah, blah, blah. But until you can hear the impact on the internal team, like you don’t really know. So that’s one part is there can be like really great co-creation, skills exchange, and also the work that the external consultant does is worth so much more to the organization if somebody internal was there and understands why the decisions were made and, you know, can really steward the work. So there’s a lot more value there.  And then I think the other bit is, I do see VPs of design, like the guy I was talking about before, that’s kind of started up like a little, like innovation facilitation service internally. Like, I’m not saying, like, spin up a greenhouse or anything, like, incubator. I’m not saying that at all, but I’m saying, like, provide an internal service, which is an innovation service. And there’s all kinds of complicated questions about how that gets budgeted and how that budget is managed. But, you know, I definitely have seen teams do that sometimes, like, even with their own brand and stuff, and they market themselves internally to the organization. And it’s sort of an agency model, but they’re in there. It’s a lot more porous because designers can come into those teams or go out of those teams and they’re still there when you’re trying to implement. They haven’t taken off to the next client or whatever. Jesse: Right.  Audrey: Yeah Well, I see you just like picked up what I put down and ran all the way to the end with it, ’cause sometimes we’re the ones receiving what the management’s consultant left the client with, right? Like the management consultant is like, here you go. You will be making 250 million by this time next year. Bye.  And then they’re like, Oh shit. Like, I don’t know what to do with this. And so we come and we help with that. And it’s not the most pleasant experience ever.  And then I go back and I talk to these management consultants and I say, Hey, do you want to see what we did with what you left here and like, and how it went, you know? ‘Cause I always want to know, like, I always want to know the impact of the work that we do. And they usually say yes. And we have those conversations and it baffles me that they don’t do that stuff, but surely some of them must, I just haven’t seen it. What I’ve seen mostly are like spreadsheets and feature lists and deadlines. And then, you know, they’re like, here’s your certainty. Like you’ve paid them for certainty and they’ve given you certainty. If you release this list of features by this date, the TAM is this. And if you get X percent of the TAM, here are the dollars.  So I don’t see management consultants do that. I don’t understand why. It definitely is a lot more compelling to click through an interface than to look at a spreadsheet. I don’t know. I guess if you’re the board, maybe that’s not true. But then also management consultants don’t have a very good reputation. But, you know, McKinsey has a design arm, right? Maybe they do that stuff. I don’t know. I don’t think that they have a very good reputation amongst anybody below the C suite.  The whole point of Marty’s last book, right? It was like that PDE were coming to him and saying, we want to work like these empowered teams, but we can’t because we just are in an environment in which it’s not possible. And so how can we change that environment? And that’s why he wrote the book. You know, he didn’t get done with Empowered and say, I know what my next book will be, like, he got done with Empowered and then he listens. I think he spends like four hours a day answering emails and on the phone with people. So he’s really got an ear to the ground.  So I say that, and then I’ll go back to describing that, like we can’t do that with internal teams because they’ll get sucked away, you know.  And some organizations that do this successfully, they manage their budget that way. And they say, okay, we’re gonna spend this money, meaning these people’s resources, it’s allocated for this quarter to that. And it’s not going to this over here. Like we’ve made that the stuff that we’re not going to do. And that’s hard to do if you’re swallowing an elephant, especially, right, if it’s like, what’s our three year vision. You know, we don’t need that long term. So I think of like a snake that’s swallowed an elephant. So we’ve got this big hump. And are we going to carve that out of our features and releases, or are we going to get somebody else to swallow the elephant that we can just let go. But I think there’s a huge amount of value in swallowing it internally. That metaphor went further than… swallowing the elephant with an internal team, because they get to do that stuff. It’s fun. It keeps them engaged. They’re invested in the long term health of the business. You know, again, it’s vitally critical that the external team is working closely with the internal team so that you don’t get this, like, you guys are crazy. We can’t do this. We’re not doing this. There’s a hundred things that you haven’t thought through, and how you know that you’ve brought in a consultant that’s not going to do that stuff is an interesting question for another podcast, I guess. Jesse: Audrey what is one question that is foremost on your mind as we enter this next phase? Audrey: I’m really curious to see how and where the decline in investment in design, that I think is happening, shows up. Like, maybe the recent Sonos release was the canary in the coal mine. I don’t know if you guys read about that. Yeah. But we’ve been saying, and I said it in the book, right, design is there to have a positive impact on the business. And if we lay off a bunch of designers and design teams, then the inverse should be true, right? You don’t have designers. And so there’s going to be a negative impact on the business, but how and where that first starts to show up and we notice and can… not point to it, but reference it as like, Oh, this is where we had the most immediate impact or the lack of design had the most immediate impact, is something I’m really thinking about, or cover your ears, it doesn’t happen. Jesse: Mm hmm.  Audrey: In that, like, Oh, we, let all these designers go and like, nothing happened. It was fine. Jesse: Well, I guess we’ll all find out together. Audrey, thank you so much for being with us. Audrey: It was absolutely my pleasure. I’m so excited to get to do this with you guys. Thank you for having me. Jesse: Audrey, if people want to connect with you and your work, how can they do that? Audrey: They can go to designmap.com or they can email me, Audrey at designmap. com. Connect on LinkedIn. I’m always happy to chat. I’m really interested in cross functional conversations, especially about all of this stuff. So please reach out. Jesse: Awesome. Thank you so much. Peter: Yes. Thank you. Audrey: My pleasure. Jesse: For more Finding Our Way, visit findingourway. design for past episodes and transcripts. You can now follow Finding Our Way on LinkedIn as well. For more about your hosts, visit our websites, petermerholtz. com and jessejamesgarrett. com. Peter recently launched The Merholz Agenda, his semi weekly newsletter. Find it at buttondown.com slash petermerholz. And if you’re curious about working with me as your coach, book your free introductory session at JesseJamesGarrett. com slash free coaching. If you’ve found value in something you’ve heard here today, we hope you’ll pass this episode along to someone Else who can use it. Thanks for everything you do for others, and thanks so much for listening.
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Nov 20, 2024 • 43min

51: Design-led Innovation in Emerging Markets (ft. Gaurav Mathur)

Transcript Jesse: I’m Jesse James Garrett,  Peter: and I’m Peter Merholz. Jesse: And we’re finding our way,  Peter: Navigating the opportunities  Jesse: and challenges  Peter: of design and design leadership,  Jesse: Welcome to the Next Phase. On today’s show, we’re joined by Gaurav Mathur, VP of Design for Indian e-commerce giant Flipkart. He’ll share with us his perspective on the big issues facing design leaders in India today, including hiring and training for junior designers, as well as design leaders making the case for the business impact of design, and the opportunities for design-led startups in the Indian market. Peter: Thank you so much for joining us today. Gaurav: Thank you, Peter. Thank you, Jesse, for having me here. I’ve been a follower since Adaptive Path, and it’s wonderful to be speaking with both of you. Peter: Oh, awesome.  Jesse: Thank you so much. Peter: It would be good to get a sense of who you are and what you do. So, how do you introduce yourself and how do you talk about your career? Gaurav: Sure. So currently, I’m the VP of Design at Flipkart. So Flipkart is a e-commerce company in India. Before Flipkart, I headed design for Myntra. Myntra is also an e-commerce company, but focuses on fashion and lifestyle. And it also happens to be a Flipkart Group company. So I have been in the e-commerce domain for probably, like, nine years or so now, and before that I worked with the SaaS division of Citrix. The SaaS division used to make products like GoToMyPC, GoToMeeting, GoToWebinar, et cetera. I also had a brief entrepreneurial journey where I was the co-founder of a design company and we were providing design services, to get our bread and butter essentially, but also building some educational products on the site. I studied design and architecture a long time ago. So I have been a designer at heart. Peter: Excellent. Let’s focus on your more recent experience, both Myntra and Flipkart. One of the reasons we were interested in speaking with you is, you know, our viewpoint is very North American. So, I sometimes work with companies that have design teams in India, cause they’ve got some development teams in India, but they’re usually still like doing design for a North American or European audience. And I know with Myntra and Flipkart, you’re really focused on working within the Indian market. So , tell us a little bit more about these businesses and what your role is, specifically let’s say with Flipkart, leading design there. Gaurav: Sure. So Flipkart is a horizontal e-commerce platform, and it’s a marketplace that allows sellers to come on board and sell all kinds of products. We categorize these products under categories like fashion, beauty, electronics, mobiles, large air conditioners, refrigerators, et cetera. And Flipkart also manages the supply chain, warehouses, logistics, and the last mile delivery of products so that we can deliver a better customer experience overall. So the design team at Flipkart has the product designers, or UX designers essentially, that work across all kinds of products. We also have a visual design team that works on visual merchandising for various category stores. This team also manages the design of sale events. We have a UX research team, and we’ve recently integrated the market research function, so that we are able to create a unified research and insights op for the company.  Peter: And that’s within your team?  Gaurav: Yeah, that’s all within the design team. We call it the One Design Team at Flipkart. Besides this, we also have a small content team, because Flipkart is available in 11 other languages, 11 Indian languages besides English. So there’s a bunch of content work that we do, and I feel that my primary role is essentially to act as an orchestrator for this multidisciplinary org. And I also engage with product and business leaders in the company to achieve org goals. Peter: How many people are in your org? Gaurav: We are about 100… 110 people across UX, visual design, research and content. Peter: So you have a little over a hundred folks in your org. It sounds like you’re designing for all the audiences in this marketplace, the merchant side, the seller side, internal.  You mentioned this one design team. Has that always been the case or, has it kind of evolved to this single unified design organization over time? Gaurav: Yeah. That’s a great question. And I think it has evolved over time. So when I joined, for example, the team that works on the seller platforms was not part of this team, and we eventually integrated it. And that’s been a process, I think, it’s been a journey of integrating different parts into a single One design org. So we think of users in three broad buckets. The first is shoppers that come on Flipkart to buy products. And the experience that we give to our shoppers is primarily on mobile devices because that’s where most Indians shop. They shop on mobile devices, not so much on the desktop website. So that’s a large, large base that we cater to.  The second set of products that we build are for sellers. And this is essentially our seller platform where sellers come and manage their listings, their catalog. They’re able to place ads, configure offers, et cetera.  The third set of users are essentially the partners that work in warehouses, in the logistic space, and the delivery partners that manage the last mile delivery. So we create a lot of products that get used in the warehouses also apps for the delivery agents. So these are products that get used across the supply chain. And in terms of the teams we have a part of the product design team that focuses on the B2C experience. So it builds all the features and products in our mobile apps and on the mobile website as well as on the desktop website. And then we have a team that works on the B2B or the enterprise product. So these are products that the sellers use and our partners use.  So my time is split across these teams. I just love to get into the details of what we are building. And the design details, so I’m really passionate about solving navigation, interaction design, and visual design. So I have time set up in my calendar review all the key projects that are happening across all these products. Jesse: In such a complex environment, what do you think is important for design to advocate for? Gaurav: Yeah, I think both these areas have slightly different kinds of goals. So when we think of shoppers, I think we want to deliver a very, very delightful experience to them. We want to ease their shopping journey. We want them to find the products fairly quickly, and get to the right set of products with ease, and people come with very specific requirements. Sometimes a person may have a very specific requirements and sometimes they may just be window shopping. So we need to cater to all these kinds of users.  When we think of enterprise products, I think the primary goal is to just make them really, really efficient. So think of someone whose product’s at the warehouse, and putting the label and then just getting them ready to be shipped. Now, this is a very repetitive task, and if you’re able to shave off even those few seconds for this person, we just make the whole process very efficient. Jesse: What do you see is your role as design leader in creating the environment where these kinds of experiences can be delivered? Gaurav: Yeah, I think, building a really competent design team, I think is the first goal that I have. And also growing this team. It’s not just enough to build a team, but then to grow this team and grow the people in this team as well. Also, to facilitate or to kind of bring together people from different domains together. So, for example, if you’re solving for grocery, we may have a product designer looking at grocery. We may also have a visual designer looking at grocery we’ll also have a researcher looking at grocery. So getting this pod created and facilitating this journey with the product managers and with the engineers so that we are able to build and deliver a really high quality product. I think my job comes into play in different kinds of forms. I also want the design team to do a lot of innovation, and I call it design-led innovation. So I believe designers are at the right intersection because they are able to understand user needs fairly well and then they’re also able to visualize what the product could be. And so therefore, they could be these facilitators, or the catalyst for driving innovation in the org. And therefore, as one of the north stars that I’ve set for the design team, design-led innovation is also one of them. We also want to build our reputation within the org through the work that we do and through the impact that we create. So I think, just like I said, like just orchestrating and facilitating some of these becomes a very critical area for me to focus on. Besides this, obviously, like engaging with the product and business leaders is the other area that I kind of spend a lot of time. So we have product leaders that work across these products and just within the app we have multiple product managers looking at, for example, how do we acquire new users, retain them? How do we facilitate journeys across categories? How do we optimize our core shopping funnel, et cetera? so just working with them, understanding their strategic areas of investment and aligning the design team’s work with these strategic areas becomes a goal. Jesse: So it sounds like you’ve been able to build up this really operationally robust design function, this really fairly mature design function. You’ve got a range of different design capabilities from visual design through to research. Those capabilities are being integrated in meaningful ways that are kind of driving this broader impact. It feels like what you’re describing is a fairly mature state for a design team. I wonder about what it took to get to that place to bring the business along with, or maybe just to capitalize on, the opportunities that presented themselves to demonstrate the value to make the case for a robust mature design function like this. Gaurav: Yeah, I think I have to give credit to a lot of consumer apps that kind of exist out there. And they’ve set a really high bar for design in the industry. Specifically, if you look at the consumer Internet industry, the design bar is fairly high. And so design is today a very well recognized function in these orgs. So the role of evangelizing is kind of come down for me. I don’t have to really sell design. We get requests from product managers, from business teams to go and dig deeper into specific areas and solve for them in a better way.  But I think why that part has been easier, I think, influencing some of the decisions from a very customer centric view has been the focus area. And I think within the tech function, if I look at, for example, product management and engineering they are very familiar with how design operates and they collaborate with us day in and day out in building and shipping products.  But as I move away from the tech team, I feel that the awareness of design kind of slightly goes down. And specifically, when I talked to some of the business leaders they may not be as aware as, for example, a product manager about the role of design. And for awareness building, in the past I’ve just put the work out there and we’ve done it in different ways. We’ve done it in a format of a road show, for example, we’ve also done it in the form of just a UX open house where we would transparently share the work that we are doing as the design team and let people come in view this work, comment on it, critique it, give their feedback and in the process we are able to build partners across the org, and once they see what design can bring to the table, and how design could impact their objectives, how it could enable their functions, they’re fairly eager to cooperate and collaborate, and also invest in both design and research. Peter: Where are you located within the organization, within the org chart? To whom are you reporting and who are your partners? Gaurav: So I’m part of the larger tech team at Flipkart. I report to the chief product and technology officer at Flipkart, and my peers are some of the other product and engineering leaders in the org. So there are different views that look at different kinds of products that we’re building, like for shoppers or sellers for partners. And my stakeholders would primarily be the product managers and engineers, but also the business leaders. And these business leaders primarily drive category functions. So they could be leaders leading one or more categories. For example, fashion or mobiles and electronics.  Peter: You mentioned how you’re wanting to show impact, build a reputation and showing impact, but a challenge that design teams often have is demonstrating impact of their own accord, right? Because typically design’s value is realized through partnership and collaboration. So I’m wondering how you navigated that. If your boss, the CPTO has specific expectations of you and design that you are held accountable for, like, you know, this is something we hear from a lot of design leaders, which is around, how do I demonstrate value? How do I show my impact? Like what has that journey been like for you and clarifying design’s distinct impact? Gaurav: Yeah. So I’m accountable for certain common company level metrics, for example. And these metrics are around customer and engagement. And also some new growth areas. The second area that I’m accountable for are a number of product metrics. And I kind of co-shared metrics with the product team members who are running some of these strategic initiatives and experiments. And then third are like the people goals that include just the team health, how are we growing and retaining people, things like that. I also have some like more inward looking goals as part of the design team. And these tend to be around like driving more efficiency within the design team with the design system that we’re building, getting the design system adopted across different parts of the product. And since it’s a fairly large product, the adoption is not a very straightforward activity. So we look for opportunities, you know, whenever we are updating a part of the product, we also adopt the new design system. There are also responsibilities around enabling research. And getting research to influence some of the key decisions in the org. So there are different kinds of activities that the research team does and kind of leads ahead. We evaluate our products, but we also do some formative work, and influence the product roadmaps. Jesse: Influencing the product roadmaps is one of these things that we hear from design leaders over and over again, that they are desperate to try to find some way to create in their organizations. And I’m curious about your thoughts about how to create that influence over the product roadmap, where is it appropriate for design to be leaning in and contributing toward these strategic decisions that, in a lot of people’s minds, technically sit outside the domain of design. Gaurav: Interesting question. So, I don’t think there is one way to look at it. I think different products are at different points in their journey. And there are different kinds of opportunities to influence them. So, for example, if you are making incremental changes on a product, I think a lot of influencing happens in the way the designers and product managers collaborate and shape it together.  If you’re looking at something that’s fairly new, a new initiative, something we’ve not done before, I think a lot of influencing can be done through research work and through some of the early prototyping work that we do and validate with our customers. So I think there are just different kinds of models that work in different situations. But broadly having this thought of influencing and representing the customers in every discussion. Having that thought at the back of your minds, as a designer in these discussions, really.  Another area that I’ve often found where designers play a key role is kind of safeguarding the customer interests and also safeguarding the design to some extent. We, we often get into discussions about where all can we highlight the offers that we have on different products? What’s the right space? What’s the right kind of tonality for it? How large should it be, et cetera. And that’s another area where I feel designers play a key role, in safeguarding the experience Jesse: I think one of the challenges in that is engaging with audiences who don’t necessarily have design as a language, and helping them see, honestly, sometimes just see the difference between two different design directions and to be able to help them see the potential impact of that. How do you support and elevate your teams in their ability to build those bridges with people who don’t necessarily share the same language, so to speak, of design? Gaurav: I don’t think we’ve done anything special here. I think a lot of the design awareness gets created through the discussions that we are part of, and how we present the designs, how we present the customer viewpoints. But we’ve not looked at special workshops, training programs or design thinking workshops, anything of that sort, in the organization. It’s just the collaborative style of working that kind of leads to this. Jesse: So you keep, kind of, keeping it alive day to day, rather than kind of making these big bold statements with these big training programs or initiatives and so forth. Peter: But kind of to that point, something I’ve been wondering is the purview of design. You know, you mentioned it’s a unified design team, one design team, product design, visual design, both UX research and market research, which to me suggests there’s a potential for design to be even broader than your boss’s organization. Like, there could be touchpoints outside of product and technology. Maybe I’m mistaken, but, given the complexity of the ecosystem that Flipkart is operating in, there’s a lot of potential for design as a practice to influence all kinds of things, to influence… you mentioned last mile, it could be even potentially real world customer facing interactions or something, which might not be part of, you know, a product and technology group. And I’m just wondering how you see the scope of all the things that design could touch. Are you fairly circumscribed within technology, or are you, you know, working on things outside of what would be considered typical product and technology? Gaurav: Yeah. Well, I think if you look at purely from a product perspective and the kind of products we are building, then they tend to remain in the tech space largely. But if you look at some of the interactions that we have with our customers, so, for example, researchers and designers together often run researches with our CX teams, and we reach out to customers through them. We go and look at how the warehouse operations work, how the delivery partners are delivering, the kind of challenges that they have, when they are operating in different kinds of environments. Tier Two cities are very different from metros in India. And what kind of challenges do these people have in navigating through the day? So designers do go out and interact with a varied set of users. All the three sets that I mentioned earlier. But when it comes to building products, I think it still remains in the purview of what the larger tech team does at Flipkart. We do interact heavily with our business teams. We understand how they work with some of our suppliers, sellers as well. And, what are their goals? How are they meeting their P&L goals? And we figured out innovative ways of kind of working together in this journey. Peter: Earlier, you mentioned design-led innovation, which was a goal for you, an objective that you’ve set for the team. And I’m wondering, like, literally how that works in terms of what is necessary to make a space for your team to propose, new opportunities, new solutions, right, that might not be on anyone’s roadmap yet, right? Are you able to peel away a group of people for two or three months to have them work on something?  Like, there’s an investment there that has to be made, right? If people are working on design-led innovation, they’re not working on the next iteration of the product experience. So like, how do you make the space to enable that and, get whatever approvals you need from your boss or whomever in recognizing that, that is a worthwhile effort? Gaurav: Sure. So I actually feel that a lot of innovation comes when designers actually spend a lot of time with the problem at hand. So for example, if I’m a designer working on a specific project at Flipkart. And if I’m able to wrap my head around that problem together with the researcher, then I may have unique insights that will help me innovate much faster than what the rest of the org is kind of thinking about at this time. We do create some special time as well for designers. We do what we internally call as a design jam. So this is just, it’s like a hackathon, but for designers. We give time and space to designers to come up with new ideas. We ran this one year and then we also realized that there is also like a tech hackathon that happens at Flipkart. And so the next year, we ran this before the tech hackathon so that some of these design ideas could then feed into the tech hackathon. With that kind of a process, we are able to see something end to end. We are able to see something that got started in the design hackathon, but also got carried forward in the tech hackathon, and we were able to build a POC out for people to play with. And once it’s tangible, people are able to react to it a little better and it also has a higher potential to to see the light of the day in the hands of the customers. So that’s an activity that we’ve been doing every year now. And it’s been quite successful so far. Jesse: So, you know, it’s interesting what we’ve been hearing for the last couple of years from design leaders especially in North America and Europe, but I would say also to some extent in South America and in Asia as well, we’ve been hearing a lot about kind of a shift in the way the design is valued, a shift in the way the design is perceived in these organizations, and a shift in the way the design is approached in these organizations. And it’s interesting to hear you talk about innovation, reflecting a point of view that, honestly, I think has been a mainstream point of view within the user experience community at least for a long time, which is the idea that the people who are really deeply immersed in the use cases, the people who are really in there, sleeves rolled up, crafting the interfaces are going to be your best source for insight for new opportunities to serve those audiences, because that immersion gives them a view on the problem that an external, you know, innovation lab jumping in for the first time is never going to have.  However I feel like what I’m hearing from a lot of people is a shift away from that as a value proposition, and toward a scope of the design role that stays much more focused on delivery. And I’m curious about what you’re seeing in the landscape in India right now, in terms of approaches to design, ways that other organizations are managing design, and where are things going these days in how design is being framed among Indian companies. Gaurav: Great question. So when I look at the landscape in India, I, I see designers working in three kinds of companies  The first would be companies that are building products for India from India. These are essentially product-led organizations, building core products. The second would be what are called as GCCs or Global Capability Centers. And these are essentially multinational orgs, large companies that have setups in India to tap into the rich talent pool in India. And the third would be tech and design service orgs. So these traditionally provide services to other companies. And they also employ a large set of. Designers.  I think the work kind of differs in each of these buckets. I think the first two that I spoke about, like companies that are building products out of India and GCCs, have a very similar kind of a profile, I would say. They’re essentially focused on scaling and building product. And very similar kinds of roles exist in these organizations. you would typically have product designers, researchers, UX content writers, et cetera. I feel that the, scope of innovation also kind of varies, with the kinds of responsibilities that each of these orgs have in India. I feel that the largest opportunity for innovation lies with the startups in India, startups that are trying to build new products, grounds up. So these are zero-to-one initiatives. And I think here the designers have the opportunities to work with the founders and the key stakeholders in that organization, and help shape the experience for the end customers. In the process also learn a lot about the business that these companies are operating in, what kind of problems are they trying to solve, figure out MVPs for products and also get into the details of actually building it. Like really, really working deeply with engineering teams because these kinds of setups tend to be small. And so designers end up wearing like multiple kinds of hats in these setups as well.  That’s largely how I see the Indian landscape today. I think historically probably the first companies to hire design talent in India would have been the tech and design services orgs, because they’ve existed for about three decades in India. While the first set of consumer internet companies building products out of India… When we started in about 2008, 2009. And some of those entrepreneurs laid the foundation for building and designing products out of India. The designers that we have today in India also come from varied backgrounds and that’s probably very similar to how things operate in the US as well. We have designers who have a formal education in design, some that are kind of like self taught, and some that kind of migrate from other domains of design into UX. So it could be architecture, industrial design, graphic design, etc. There is a vibrant design community now in India, and, and these platforms and these events are a great opportunity for designers to kind of connect, share experiences, share the work that they’re doing. Peter: What you just mentioned is, one of the values of events, right? The shared experiences, people talking with peers and sharing kind of the challenges they’re facing. And I’m wondering what you see, let’s focus it on a design leadership level, right?  You’re a design executive, a VP of design, leading a decent sized team. I’m guessing that, you know, other people in similar roles whether in Bangalore or other parts of India, what do you all talk about when you gather, or you get on a call, or you’re messaging each other, like what are those topics among the Indian design leadership community, at least that you’re part of? Gaurav: I think there are some things that always kind of remain the center of discussions. Some of these are around hiring and challenges around hiring. While it’s fairly easy to hire at junior levels, I think it becomes extremely challenging when it comes to senior roles and especially leadership roles in India. I think the talent pool that exists at senior roles in India is fairly small. And with all kinds of companies operating out of India, this is a talent pool that gets a lot of attention as well. So hiring and discussing hiring challenges always is a topic of interest for people.  The other one I would say is, it’s just about kind of sharing challenges of influencing stakeholders in different kinds of forms and the kind of challenges that people have around, sometimes, frustrations around what would enable them to do better work at their organizations and what could be the learnings out of different scenarios, different organizations. So that’s another, topic. I recently been involved in a lot of discussions at Flipkart and also elsewhere, where I’ve seen when designers at a certain level of seniority start thinking about how they should grow further. And a typical path that they pursue tends to be the people management role and growing as a people manager. Senior IC roles are kind of missing in India at this moment. And these opportunities also kind of missing. Flipkart, we’ve laid down career paths for senior ICs and build that track as well. But I think many young start ups are not yet aware of them. There are GCCs that have fairly well documented paths for senior ICs. They also have a lot of senior ICs in the org. So that’s another topic of interest that has recently cropped up in conversation. Jesse: I meet a lot of design leaders who say, I’d love to elevate ICs. I just don’t know what I would do with a bunch of principal ICs now. I don’t have a place for them in my processes or in my organization. And then I end up meeting a lot senior level ICs who haven’t been set up for success because the role hasn’t been defined clearly enough. Their influence hasn’t been defined clearly enough. Their measures of success haven’t been defined clearly enough. And I’m curious your thoughts on how you set up a senior IC for success. Gaurav: This was a very passionate debate that happened within the organization while we were defining this path and laying down the competencies for the senior IC track. We leveraged a lot of work and a lot of documentation that exists for senior IC engineers, actually, and architects, as part of laying down the competency for engineers. Engineering being a slightly more mature or… across the world actually has spent a lot of time defining these roles and defining how they differ from the people management roles. So we leveraged a lot of that work.  I see it as a technical mentorship role as opposed to people management role. And that’s the key difference in my head, at least where these people will then lead a lot of technical mentorship and large scale design operations roles as well.  So they would, for example, anchor the design systems. They would make sure that we build coherence across very different parts of the products that we’re building, which otherwise the two designers working on them may not even think about. So helping connect the dots across different parts of design and research is how we frame the role. Peter: Something you mentioned at the outset when you were talking about your vision for the design team was growing the people on the team. And I think that connects with what we’re discussing now. And, I’m just wondering, what are the approaches you are taking to grow people? Is it formal, you know, classes and training? Is it quasi-formal, kind of, like mentorship, that senior ICs could do? But yeah, just how are you operationalizing growing people in your team?  Gaurav: It’s a mix of both. So we do have some formal trainings that are led by the Learnings and Development team at Flipkart. And then we do some informal trainings from within the team. Actually last year, we spent a lot of time figuring out people from within the team who could then train a lot of other people across the team. So, for example we could have a person who’s really good with motion design. And now we want to take this skill set across a large set of designers so that we just raise our bar on motion design overall in the product. And so we’ve identified such people and enabled them to train others and kind of mentor them in this process. Peter: You mentioned earlier the hiring challenge. And I’m wondering if that’s related to your incentive to focus on growth. Are you putting these growth plans in place? Because it’s easy to hire people with less experience, but now you need to train them up. Is this a strategy for kind of addressing this gap in the market of senior design talent that is really hard to hire. And so you’re growing them from within, or is there a different motivation? Gaurav: No, I think we look at both areas. We look at growing people from within, as well as we constantly look at the market as well, whenever there are opportunities to hire from outside. So it’s not one versus the other, I would say, but a combination of both. We do have a large base of designers at junior levels, and a lot of training and mentorship while the senior leaders kind of run on their own, they do need training at different levels.  For example, new people managers need training around managing people, having difficult conversations, giving feedback. Some of the more administrative work that people managers end up doing. You know, performance conversation, stuff like that. So there are different kinds of trainings based on the role and the skill sets of designers that we look at. Peter: One thing I hear all the time, from design leaders I’m working with or design orgs I’m supporting, is they have trouble making space for junior designers, right? They can’t hire junior designers because of the environment that they’d be bringing them in. They wouldn’t be able to support junior designers as needed, right? ‘Cause designers are expected to be embedded in teams, possibly on their own, they might not have a management structure that can bring them up. And so, at least in North America, a lot of companies just have kind of forsaken the junior designer and start, sometimes they start at senior designer, right? You know, five to eight years experience, because they know they can just throw them at problems and not worry about them.  It sounds like you’re taking a different approach, right? You mentioned a decent, you know population of junior designers within your organization. How intentional was that? Like some companies, that’s an intentional strategy to hire juniors and grow them up. So is that part of it?  And, what have you put in place to make sure that you’re setting up these junior designers to succeed, that they’re not flailing and sinking, right, in the sink or swim metaphor, being given too much responsibility too soon, and then they’re struggling.  Gaurav: Yeah, I think it’s also one of the differences between US and India. I think it’s also got to do with the kind of market dynamics and the supply of designers that exist in the market.  So there is definitely a shortage of senior designers in India at this moment, while there is an abundance of junior designers, I would say. There are a lot of design schools now in India with… that has courses in interaction design and UX design. So, I think we are producing designers in great quantities at the moment. So it’s just easier to hire at junior levels. In terms of you know, not letting them sink, we do pair them up with senior designers. So as they learn about the organization, learn about the business. they are able to work with senior designers, with the managers, and kind of learn the ropes, and mature in the organization. But I would say it’s just a factor of the Indian market at this moment. Peter: In the North American market, the complaint that you hear from junior designers is like, there’s a lot of us, but no one is willing to hire us, right? So there’s something different about how many North American companies are approaching hiring because I think the conditions are not all that dissimilar where you’ve got a sizable population of potential talent.  But whereas in North America, they’ve just kind of chosen to neglect them in hopes of hiring that senior designer, it sounds like, at least in the Indian market, there’s a recognition like we’ve got to make this work. So… Gaurav: Yeah. And about the challenges in the US, where the junior designers complain about not having enough opportunities, I was also thinking about the organizations and how the organizations are kind of set up.  So the designers in each of these organizations, who are they kind of collaborating with? What kind of seniority of product people are they collaborating with? For example, in my organization, if I have to collaborate with the senior product leader, then it would be really hard for a junior designer to kind of voice a design stand. And therefore, I think it’s also critical to look at the kind of setups, and the kind of stakeholders that are building this product.  Maybe in some of these companies, there aren’t enough junior product managers as well, and therefore, the designers end up collaborating with fairly senior product leaders. So if that happens at Flipkart, for example, I’ll have a senior person, a senior designer or a lead designer or even a manager in those conversations.  Jesse: In so many organizations, design faces a fundamental cultural gap with the people who are in control of the business. The business has its way it likes to do things. It has its way it likes to communicate. In a lot of cases, these are practices that are inherited from legacy businesses, pre-internet businesses that are now entering digital spaces. And I didn’t hear you talk much about kind of legacy businesses and, where they fit into that landscape. But I’m really more interested in how design culture runs up against business culture in the context of your experience. And what you notice about the challenge of bridging that gap.  Gaurav: I think designers are traditionally not great with business, and it’s also got to do with how designers are trained in design schools. For example, business schools have adopted design thinking as part of their curriculum.  There’s very little business exposure that designers get when they get trained. And often this seems to be at odds, business thinking, and the way kind of designers approach a problem. But actually in large companies, I think both need to work together fairly closely. And it’s important for designers to build that business acumen as well, to understand this company in the space that it operates in. What makes a business successful? How’s the company generating revenue? What are the levers for the company to make profit, etc. And I think that background helps designers actually design better and helps designers collaborate better with business folks. If designers only take the user perspective and don’t look at the business, I think that’s where kind of conflicts arise. But if they are able to effectively wear both these hats, the hat with which they are able to think user first and also think about the business, I think that’s where really powerful products emerge.  Jesse: Couldn’t agree more. Peter: Towards the beginning, you mentioned how you like to keep your hand in for lack of a better word, the craft, the details, right? You mentioned the visual design, the interaction design, the research, understanding what’s going on in those details, but given, the conversation we’ve had since and just now, talking about business, business culture, relating to the business, right, you only have so much time in your days and so many days in a week, and you have to figure out where it is most valuable for you to spend your time.  And I’m wondering, particularly you’ve been in this role now for three or four years, right? Almost four years, how spending your time has evolved over these past four years, and kind of what that trajectory has been like, have there been themes or stages of your leadership since starting at Flipkart and, where are you now in that evolution? Gaurav: Yeah, there have definitely been very distinct stages. I joined Flipkart in the midst of the COVID lockdown. And when I joined, it was a very inward-looking journey that I initially took. Inward-looking as in inward-looking towards the design team Fixing issues and gaps within the design team. I also felt that there were certain parts of the product that needed attention. So for example, the core navigation of the product and how we laid out the core navigation for our users, it was kind of in different parts of the screen. And I thought that we were not enabling users to build habit on our product, and not letting them use Flipkart with ease. So these were some of the areas that I focused on heavily.  Also some parts of visual design. So we ended up changing the typeface that we used on Flipkart. We ended up uplifting our visual design language through the design system that we were building. And these were immediate changes that everyone in the org and hopefully our customers could also look at, and reflect that. Just looking at the team, I think they were just areas of, for example, building our competencies, figuring out a track for senior ICs, defining that career ladder, defining how we wanted to use competencies, not just for reviewing and for performance, but also for hiring. So these were some of the initiatives that I took early on. And I think once some of these elementary things, I would say, kind of settled, that’s when I started engaging more deeply with, especially, with the business stakeholders. I don’t think in a product org, you can live without engaging with the tech stakeholders, but definitely with business stakeholders, the engagement kind of increased also, the ending of COVID lockdown had a big role as well because then it was easier to meet people face to face, bump into them and have these conversations. Peter: And so what stage are you at now in your leadership journey at Flipkart? You mentioned starting with, like, managing down, getting the best out of the team. Once that’s settled, you kind of look up and out a bit more and partner with those business stakeholders. Are you still in that phase, or is there almost like a lean forward now, almost four years in, like, are you at a different point in your journey here? Gaurav: Yeah, no, I think there’s definitely a lean forward. We are looking at creating more strategic impact. We are also looking significantly redesigning certain parts of the experience. We’re in a space that’s constantly evolving. So we are also creating new products for our customers. We’re getting into quick commerce and how do we look at these kinds of experiences. Satisfying customer needs in a very short time. So there are different kinds of areas now that we are looking into and playing an active role in building these in a, in a fairly delightful manner, I would say. Jesse: Gaurav, what are you looking forward to in this next phase for design? Gaurav: I think I would like to see the Indian startup ecosystem kind of mature and grow and also design create a larger impact in this journey. Flipkart is a large player in this space, but I think there are also a lot of other companies doing some really good work in India. And I think there is a huge opportunity for designers to design for Indian needs. India is a very, very diverse country. We have a population of about 1.45 billion, but it’s actually made up of many different Indias. We have 22 recognized languages in India, and we have diversity in terms of the affluence, in terms of technical savviness. We still have people in India who are just experiencing the Internet for the first time on their mobile devices, and so their trust levels with the platform are quite different from someone who’s been using lot of digital products for a fairly long time.  For example, there is a small population in India, which is primarily in the urban centers of India, okay, that behaves very similar to Californians, in terms of how they use digital products and the ease with which they use digital products and the frequency at which they use digital products. And at the same time, there is a population in Tier Two, Tier Three, and rural parts of India that is very different in terms of their taste preferences, rootedness in the Indian culture, and trust on the platforms. So it’s a very diverse space. There are lots of problems for designers to really solve for. And I would love to see more digital products built out of India and addressing these needs. Jesse: Love it. Thank you so much. Gaurav: Thank you. Jesse. Peter, for having me on the podcast. Jesse: Where can people find you if they want to know more about you? Gaurav: LinkedIn would be the best place. I do have a website that I don’t update very frequently, but that would be the other word other way to reach out to. Jesse: All right. Thank you so much. Peter: Thank you, Gaurav: Thank you. Jesse: For more Finding Our Way, visit findingourway. design for past episodes and transcripts. You can now follow Finding Our Way on LinkedIn as well. For more about your hosts, visit our websites, petermerholtz. com and jessejamesgarrett. com. Peter recently launched the Merholz Agenda, his semi weekly newsletter. Find it at buttondown.com slash petermerholz And if you’re curious about working with me as your coach, book your free introductory session at JesseJamesGarrett. com slash free coaching. If you’ve found value in something you’ve heard here today, we hope you’ll pass this episode along to someone Else who can use it. Thanks for everything you do for others, and thanks so much for listening.
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Oct 26, 2024 • 57min

50: Balancing Design and Business as a Utopian Pragmatist (ft. Leslie Witt)

Transcript Jesse: I’m Jesse James Garrett, Peter: and I’m Peter Merholz. Jesse: And we’re finding our way, Peter: Navigating the opportunities Jesse: and challenges Peter: of design and design leadership, Jesse: Welcome to the Next Phase. Joining us to talk about what’s next for digital product design is Leslie Witt, chief product and design officer for mental health care platform Headspace. Along the way, she’ll share with us her journey from designer to design leader to P&L business leader, she’ll also talk about building the credibility for a broader mandate for design as well as for yourself as a leader, and what to do when your intellectual tendencies get the better of you. Peter: Hi, Leslie. Thank you so much for joining us. Leslie: Thank you so much for inviting me. Peter: So we always start these conversations in pretty much the same way, which is who are you, what do you do? Leslie: I mean, that’s like an existential question, yes? Maybe I’ll start with the concrete answer. My name is Leslie Witt. I am the chief product and design officer at Headspace, which is the world’s largest, most accessible, and, I would say, increasingly most comprehensive mental health care platform out there. And I also am a mom to twin 13-year-olds. Peter: Excellent. Jesse and I are on a exploration. There’s been a lot of conversation in the community around some of the challenges of design leadership. We’ve engaged this topic on the podcast a few episodes ago, on this thing we call the phase shift, and what we’re interested in is trying to figure out, or maybe do some sense-making around what’s next, right? Where are things headed? And so we noticed that your job had changed from a VP of design to a VP of design and product, and we thought, oh, well maybe that’s, at least, a way forward. So, love to hear that story of what that shift has been like, from a design leader to a design and product leader. “Utopian Pragmatist” Leslie: Look, titles matter–and they don’t. And so I say that just… I’m going to, I’m going to go a little side path first, and then I promise to get back to your core question. I started my life with a very clear title and role. I trained as an architect. I got three degrees in it. My entire self identity was as an architect, and I discovered 10 years in that I really disliked being an architect. Oh. And I decided to take a plunge into the world of what I would say, the unnamed. Now, many would call what I plunged into… I became a designer. I joined the company IDEO and one of the things that I most loved in that and kind of connecting to your, you know, I am now a this, was that we got to pick our own titles. And, you know, in their ecosystem, I was at the time an environments designer, that was the non-formal way of saying architect. But I didn’t put environments designer on my business card. Instead, I picked a title that I would say through all my career permutations is probably what I most see myself as. And I picked “utopian pragmsatist.” And I think many designers are utopian pragmatists, which is that we’re in this game because we believe we can change the world for the better, and that the better is possible, and that we’re then ruthlessly pragmatic about navigating the vicissitudes of now, the technical capabilities and possibilities, the compliance constraints, the commercial constraints to actually make something come to life. And that’s the kind of designer I’ve always been. That kind of designer has woven into many categories and incarnations and titles. And as I transitioned out of a consulting world that is very flexible about what you call yourself and how you show up and who you are and what you can be and in many ways has a model that benefits from that flexibility, into a corporate world that really likes to see people aligned against a skills matrix, loves to see things kind of crossed off and ticked off and told who, you know, owns decision making criteria, what I found was that my style of design was sometimes in direct conflict with the way in which the organization operated. And so I spent six, seven years as VP of design at Intuit. Thankfully at a company who saw design as a strategic function on par with product on par with engineering. It wasn’t a subdiscipline. And one where design was chartered with core service innovation, something that many other companies is kind of the provenance of product. What I came to feel was that I had a designer’s approach to problem solving, but in a world that largely ascribed that level of authority and decision making and kind of rights to drive change to a title called product. And so, as I shifted over into another discipline, another organization, a different sector and industry I kind of, you know, had a brief, like, mourning and grief moment of kind of stopping my fight against the fact that these were the rites and rituals and promises of the design discipline, but instead to take a designer’s hat and approach and ethics into the world defined as product. So, well, a little bit of a long narrative, but I would say, like, for me, this was coming to grips with the fact that the way I approach design, is largely mapped to the role of product in many tech organizations. Peter: Follow on that, when we had our podcast that we called The Phase Shift, we actually talked about ego death. That designers need to be willing to let go of that identity as a designer and possibly embrace, and be willing to embrace new identities where they can still be whoever they are, but they might be known in a different way. And it sounds like that’s what what what has happened for you. I’m wondering though… Leslie: Can, can I, can I like slight, slight parsing on language? ‘Cause I actually think, like, the identity of the designer is important. I, I definitely feel like it’s, it’s my, it’s my soul and it’s a huge part of my arsenal and worldview, but the title doesn’t necessarily map. And I think that there’s a difference between say an ethos and an approach, and a titled role. And that the designerly approach, you know, the power of divergent thinking, the ability to take behavioral insight and transform it into new propositions to actually have an aesthetic value that takes things beyond the utilitarian, like, a lot of these kinds of core ethos are things that don’t always map to the title designer. You can still hold those to be true as you navigate a range of different disciplines. Product + Design vs just Design Peter: Totally. I’m just wondering if, if what you are doing is any different with the title product and design than it was with the title design, or are you kind of showing up the same way and it’s just a different label? Leslie: I, I would say a bit of both, to be fair. I think that as wearing the design hat and title, you are commissioned to be agent provocateur, right? And I would say, especially for me, like, coming from an innovation background, like you are expected to present with some level of future visioning, novelty, operating outside of constraints. Yes, understanding commercial value, but not necessarily being foundationally constrained by it. You add a lot of value in that frame by kind of helping the group expand what could be very kind of here-and-now analytical thinking into a divergent possibilities-oriented space. Now, I have to navigate more schizophrenia that impulse to do so, but with the power to actually be the person making the decisions on what we do or don’t prioritize, and it’s hard to do both well, and to own when you’re kind of stepping in which role, and that’s something that I’ve had to get much better at is when I’m not the person that’s commissioned to act in a particular way. And so instead say, I’m going to have my head of design actually lead a visioning exercise, and then I’m going to be the person helping to deconstruct that and look at capability buildings, and data that we want to collect in order to prove out path X, Y, or Z. That the power position, you know, if I’m if I’m being honest of the product leader, it wields more authority, but then with that comes a level of constraint that doesn’t naturally sit with the role of design. Jesse: I think that for a lot of design leaders, it’s just very difficult for them to square the role that they see over on the product side with their identity as designers. Now this seems like it’s been an easier bridge for you to cross in part because of what your design practice has always been. But I find myself wondering what you did have to reconcile yourself to as you were making this transition. What was maybe hard to accept having to leave behind as you are squaring your identity as a designer with this new role, and what was maybe hard to accept that you had to take on. Leslie: Yeah, no, that’s a, that’s a great push. A few things, you know, I would say like, I would have been out there in the early 1900s as like a suffragette. Like, I, I am the person that wears the banner that is the champion. And I’ve always been, and I do continue to be, a champion for design. And I mean, design here with like a capital D. Like the art of, the practice of, the craft, and I would say what I’ve had to reconcile, even in a company that has a high premium on quality, is that there are dimensions and places where it matters a lot less. And so where do I fight that campaign and where do I say, actually, this is a workaday problem. This is something that is motivated by a very different set of need states, both organizationally and even from a member. And it’s not where there’s outsized value from levying design craft towards a challenge. So I would say like that, that stepping aside and viewing things more clinically has been a change that I’ve had to make versus being the person who’s chartered to act as the champion. And another that I would say has been a dimension to reconcile, is the level to which I have to lead with analytical thinking. I’ve always been, you know, I was a mathlete. I love numbers. I love data. But I historically was able to use it to reinforce a point, versus to kind of operate within a data landscape, first and foremost. And to use that to construct possibility versus to kind of throw out ideas that are either subjective or qualitative and to use experimentation only as a means to kind of prove or disprove. And so a very different relationship to data, metrics, and numbers, and then a deeper level of responsibility. I mean, one thing I didn’t mention, I also am the head of our consumer channel. And so that level of responsibility for delivering the business and needing to make those decisions on prioritization with you know, an accountability to deliver a number as top of mind. Peter: Does that mean you’re a operating as a general manager? Like you have P&L? Leslie: Essentially. Yeah. I own the P&L for our consumer business. Jesse: Accountability is an interesting thing when we think about the evolution of design. Because I think that on the one hand, design leaders would love to have more accountability. They just want to have accountability for things that actually matter. And there’s a lot of a sense that the business doesn’t know how to create accountability for design because the business doesn’t know how to evaluate design’s contribution to the business. And I wonder from your perspective, kind of, both wearing your general manager hat and your designer hat and your product hat. That’s a lot of hats, but like… Leslie: …it’s a lot of hats. Jesse: …yeah, what, what can you see from all those different perspectives? Leslie: Yeah. I mean, I think that when I only wore the designer hat or mainly wore the designer hat, as a designer, largely, the qualities that you are caring most about aren’t necessarily always the ones that you are most accountable to deliver. And they’re not far apart, but would say most designers I know, and I put myself in this category, care first and foremost about member value or customer value. Is this thing that I have brought to life actually doing something meaningful and important? Did it fulfill its mission? And the range of proxy metrics that we sometimes use for those things, say, like, adoption or engagement, don’t necessarily prove out that you’ve actually added value. There are also things that most people realize can be gamed to deliver a result that looks good on a dashboard, but isn’t necessarily getting to the core point. So like, I’ll give an example from the world that I live within, which is our core member value is that we help you feel better, that you’re less stressed, that you’re less anxious, that you have lower symptoms of depression, that you sleep better, right? Those are actually like the values that we deliver. Now, I will always say, like, engagement is like the a priori to be able to deliver value. So I am pro-engagement, but it’s not the goal. And simply by delivering engagement, I don’t prove out that I actually delivered on value. By delivering on value, I don’t necessarily deliver value to the business. And so what I have focused on, and where I see these worlds coming together and how designers can kind of bridge the synapse is one, to understand how the business makes money, to understand what value an end user derives from a service and to try their damnedest to bridge between those worlds and realities. And sometimes that means actually getting into business model design. So, in a world where you want heavily for the reward to the organization to be that you built something of value, how do you actually think about the ways in which that either saves money or earns money, or, you know, kind of does, does something that actually sustainably means the organization is incented to actually align to that. And I think that those dimensions… proving out that you understand the mechanics, that you are focused on durable value and that you can connect the bridge between those things, I think that’s where designers both gain a lot of credibility, and maybe that credibility supplants what often I think accountability translates to, which is I got autonomous decision-making authority. I think very often that’s what, what folks would like accountability to mean. I think it’s that I am going to be someone who shows up and says, I’m going to move this number. I’m going to do this thing and no matter what, that’s the end outcome. And I’m going to move mountains in order to do so. Jesse: It’s interesting because it also suggests sort of taking accountability for outcomes more than activities. Leslie: I believe so. And now I’m talking at different levels of the food chain, right? Jesse: How’s it different? Leslie: I think that if you’re someone who’s on a working team that’s assigned a set of tasks, and asks if you’re, you know, a junior I C, independent of function, like, that set of arguments and kind of conceptual resolution has to have happened above your pay grade largely so that you are actually empowered to do that thing. But that thing, doing that action and doing it well, and understanding how it ties up is something that you can be accountable for no matter what level of hierarchy you are at. Peter: In conversations that I have with clients and just people out in the industry, and I’m wondering your take on, is as design attempts to identify how it can be held accountable, how it can be seen as valuable, those measures are, at least in anything that is used by people, the same as a product managers’ metrics, right? Design and product end up driving towards the same thing, which maybe speaks to why you’re in the role you’re in, but then, how have you, have you had to, how do you encourage others to navigate this tension where, at least in some organizations, functions need to prove themselves in order to like, you know, get headcount or whatever. But if design doesn’t have a value distinct from product, how have you navigated that? Or how do you counsel others to navigate that? Leslie: Yeah look, I think right now it’s shifting. So I could tell you how I navigated it in the past and we still, by and large, have, you know, a triad or a quad model where we’re looking at having, you know, a product leader who is, you know, establishing the product requirements and really kind of prioritizing attributes of the of the process in tandem with an engineering leader, who’s, you know, building out the kind of capabilities and scoping, and a designer who is, you know, anchoring exactly how that comes to life concretely within the user experience. Like we largely fall along a kind of traditional triad model. But I’d say that, you know, with the rise of AI, right, and the reason I bring that up is that some of the technical dimensions of what have held those two disciplines apart are falling away as barriers. You know, I have a very, like, experimentation and data oriented designer on one of our membership teams who loves to build dashboards and technical experiments. Well, that’s something that used to be the kind of technical skill set of the product manager. I’ve got a pretty young and very ambitious product manager who has learned a lot about how to set things up in Figma, and is able to kind of take modern tools and, increasingly, content generation and like put together some pretty compelling flows and prototypes. And so the blur that used to kind of exist between craft skill sets and things that I’d say had like a technical barrier to entry–and this is very much true for engineering as well, right? You know, it was like code, code was like the Holy Grail that no one could cross. And, and, you know, like that, that key to the castle that was locked up by computer science capabilities is, is it’s getting unlocked at least partially. And so, what do you do with folks who, yes, have different potential biases, but come in with a lot of shared skill sets or lower barriers to entry on those skill sets? And I’d say we’re still very much navigating that reality. More apparent in certain sectors than other. Peter: What do you mean by certain sectors? Leslie: I mean, like depending on the problem that a team is chasing, there are ways in which the unique skillset of a craft based designer, it’s like we just defined and designed a new AI bot, but we’re joining the crew. The skillsets of conversation design, and even like brand design, we created a character. It has a complete tonality and a name. Like, that’s a more craft-oriented challenge and one that it’s incredibly important to have someone with expertise nail, then say an adaptation of a set of flows and a simplification of clinical intake. It has a form. It has examples out in the world. I don’t necessarily need someone with deep finesse and deep craft expertise to tackle that. I need someone who knows how to build and test and use tools. The Distinct Role of Design Jesse: As I imagine this playing out, into the future, it seems to me that if you’ve got, like, craft level design work that’s now happening in lots of different parts of the organization across a range of roles, some of which are not design roles and not participating in design processes per se, then it seems to me that the role of design leader, someone who’s going to be that champion for design as a practice, design as, as a value driver in the organization, it almost becomes more like governance. Leslie: Maybe it’s governance and inspiration. I mean, I think like anyone, who’s played in the space of more traditional, like, graphic design. Often this still is the reality of say, like brand creative. That world has existed for a long while in defining guidelines. And then acting as enforcer, you know, brand police, they’re here like, you did it wrong. And, you know, while the team is deputized to do X, Y, and Z, if they have the skills, like the rest of everybody needs to align to a particular zone. And not to say that that doesn’t have some real value. But I think it’s, I think that’s a depressing role. If what you’re out doing is kind of guard… it’s a retrograde role, right? Like, you’re almost by default, then, protecting the status quo versus pushing and defining the future. And so I would argue that you might have less dominion, right? Like, there may not be 300 designers on your team who are involved part and parcel in everyone’s work streams or in a subset of work streams, but in some ways you have potentially more influence. And so, how are you out there now that everybody is cracking open ChatGPT to apply their hand at conversational design now that everyone is playing around with a variety of different tools and seeing what they can bring to life. How are you, one, inspiring them with what quality looks and feels like, and how you think about a design process? How are you out there showcasing what good looks like? And then I’d say where I’m more interested in design-led governance is on questions of ethics, and, what is that insight into human behavior? What is that foresight, into the way that technology can evolve possibility, doing in terms of driving us to a better future? I think design kind of owes itself the responsibility of having an ethical viewpoint on it and helping an organization think in that capacity. Peter: Why does it feel like design is often the one that raises its hand to care about ethics and the rest of the organization let’s it slide? Like this comes up a lot that that designers feel like they’re the ones who… Jesse: why do we have to be the ones all the… Peter: …yeah, who like, how is not everyone concerned with the ethical implications of what we’re doing, but designers, at least in my experience, are the loudest in the room, reminding people… deceptive patterns, right, was, was a concept that emerged from the design community, right? It didn’t come from somewhere else. So yeah… Leslie: To be fair, I don’t think designers are the only ones who care, but on the flip side of what we were talking about earlier, which is that designers are often not held accountable to a metric, I think there’s amazing freedom that comes with that too, because it’s freedom to operate outside of behaviors that are dictated by achieving a number. Like, let’s say I’m a marketer who is going to be gold and bonused on whether or not I was actually able to increase sign up by 5%. I’m going to do my damndest to increase sign up by 5%. I’m going to do my damndest to increase sign up by 5%, right? And out of probably very seldom actually bad intention, I’m going to chase doing that in such a way that might have a lot of unintended consequences. And designers have the right and the responsibility to point out what are the things that we’re systemically avoiding or how are we taking negative advantage of human behavior and motivation and, in a way, because designers also know those tactics, they are the ones most able to come back and say, hey, we’re actually like weaponizing,right, human psychology, we are doing something that sits opposed to our values basis. Now that’s like one thing to do when what you’re talking about is you know, a tactical marketing campaign. It’s quite another, and I think it takes a level of intention and it absolutely takes buy in by other disciplines, and it takes both good intentions as well as mechanics to audit what actually happened when you’re talking about applications of LLMs, when you’re talking about what data privacy rights and consent are we putting in place of our members? Are we as explicit about both the intended use and the actual use of this as we need to be? And, like, kind of holding up that lens of inspection for the organization. I think design often is one of the few disciplines that has both the skill sets to do so, and in many ways operates enough adjacent to the litany of metrics to be able to have the oxygen to do so. Jesse: It seems to me the gap, then, here is really one of credibility, that the designers have the capability, they have the mindset and the appropriate, you know, resources to take on these challenges but they’re not being asked to, and when they do bring these things up they’re kind of like shunted aside. Like, don’t bother me, kid, I’ve got a business to run here. And so a lot of these Design leaders feel like, if I talk about anything other than corner radii and button placement people think I’m talking out of turn. And so I wonder about, how to make the case that design has something to contribute here, even in cases where that alignment is possible, you know? Connecting Design to the work of the Business Leslie: Yeah, I mean, I’ll be honest. I have not personally had that experience. So well, I respect that many have. I do think there’s a dimension of, what are the values of the place that you work and, that no one’s perfect, right? Like, but are you working in a place that has some level of precondition to care, right? I mean, because there are places that surely don’t, and then I think you’re trying to run something up the flagpole that never going to stick. But I think most places, like, there’s an intention. There’s a set of positive intentions, at least at a like mission declaration level, but then bridging the gap between the operational metrics of how that business runs, and it’s ambitions, there’s a wide vacuum of definition between what those things are. And you know, I think it’s incumbent, especially on a design leader to foundationally understand the commercial mechanics of the business that they work within, so that they can bridge that gap. I mean, the same thing is true here. Why should the business care? To be able to speak in the language, not just of like, Hey, all we should care and we should do the right thing. Why? Like, what happens if we don’t? Because what is often being seen if we don’t is, I either just cut costs, well, that sounds great, or I just put a little bit more money in the coffer. Well, that sounds great. So you’re going to tell me a different narrative about why I shouldn’t. I think you need to do two things in tandem, like paint a concrete picture of the risk, okay, of continuing, and then create a concrete pathway of what else, like, if I don’t do this, what should I do? And so I think you can get into a position where you’re the person that’s flagging, why not, but you’re also not painting the path of possibility. Peter: From what I can tell you have worked in pretty high design maturity environments, right? IDEO, Intuit. Now Headspace. And I think some of the challenges that we’re seeing are with design leaders who are operating in lower design maturity environments, where they have designers, but they, kind of, don’t know why. They just got them because that’s what you were supposed to do. I’m wondering though, What can help people in these lower maturity environments, get some purchase, get some traction? Leslie: A lot of the companies who hired IDEO back in the day, and I was there 2005 to almost 2014, were coming because they were not high design maturity environments. They were organizations that lacked these infrastructures and capabilities, and they often did have design organizations within them, but they were extremely tactical design. You know, it was maybe one step different, one step more technical than a brand creative team. And that’s not to slam any of those things, but like, it was not design as a strategic function. Design didn’t own research. Design was very much, you know, there to execute. Setting Design up to succeed Leslie: And what I would say essential to do, is to understand who cares about the idea of design, slash the things that you can do through design, having more power, actually having purchase and finding that champion as high up in the organization as possible is essential. And so, you know, one of the things I learned from that time period in life was we needed two things in order to be successful as consultants within those environments. We needed like C-suite level championing, and we needed operational level advocacy buy-in and collaboration to what we were doing. Because if we had one without the other, the ideas were dead on arrival, right? Like, great, the CEO loved what we came up with, but this business leader has zero interest in executing on it. It wasn’t their idea. Thanks for the gift, but no, thanks, right. And then the opposite side, if it was just like a passionate business leader who, you know, had zeal in the organization, it tended to have no staying power. And so there’s still real value because I would say, like, well, you’d get like a demonstrable point on the board. You’d have somebody who is committed to seeing something through from like, Idea to execution, but it was very hard to then kind of harness that as a repeatable event. But, but if you can get that orchestration of a triangle, and maybe you’re doing it by proxy, you’re showing how this has worked effectively to build a business and other organizations, and as an individual, as a design leader, you’re making those relationships happen. You’re finding a high level advocate. You’re finding someone with whom you’re partnered who might have more decision making authority than you and you’re demonstrating in a tactical, tangible way that working in this capacity, where design has more influence or has more of a strategic charter, actually helped to do something meaningful, then you can start to grow that into a broader way of working. I will say for the very same reason, as I stepped from consulting into corporations, I knew and I’ve stayed very strong on this. I would never take a head of innovation role or say, like a chief design officer role at a company that did not have any type of organizational maturity around design. And for me, that was because I had seen too often the way in which, like, that was, it was novelty. It was somebody to be brought out to an investor relations group to parrot, like, really cool vision work that really had very little consequence on the way in which the organization operated. And I don’t think a singular hero can affect organizational change. Peter: A question that I’m often asked is, how do you know that the companies you’re talking to are mature? Like, what are the indicators that they’re the kind of place where design could thrive? I’m wondering, as you shifted from Intuit to Headspace, what were those indicators that you saw at Headspace that allowed you to feel like, okay, this is a place where I can actualize myself in some way. Leslie: Yeah, I mean, in that case, for pure honesty, I was recruited by someone I had worked with before, who I’d worked with at both IDEO and Intuit, at least adjacently. And so I had a trust in who would be my boss, the CEO, and that was huge because I knew that person had a visceral understanding of both me and the role that I saw design playing in the expanded field. I would say that the other indicators, you know, I could look at the product and tell that there was a care for craft. There was a demonstrated history. And then probably the kicker for me was that the conversations I had multiple times across, even like the CFO, referenced the research that design had led to understand the core landscape opportunities. And, that proof point of hearing someone else unbidden reference qualitative design research that was like, okay, this is real. And this is a place where that input is taken seriously as part of driving a business strategy forward. Jesse: Yeah… Leslie: And look, I don’t, I don’t pretend that everybody gets to cherry pick. Like, well, no, I’m not going to join that organization. And no organization is perfect. Far from it. For any role. And I would say, like, part of now wearing more and more hats, like the, person in charge of that P&L and the person in charge of our product prioritization, I see that there are frustrations and downsides and maturity issues across the continuum in a way that I probably didn’t respect as a designer who felt like I was lone man on an island and a place where everyone else had well-defined, well defined, well respected roles. this frustration I think is actually something that can be leveraged positively as a universal driver to enlist collaborators in your cause, because you can actually help them buoy their cause. Relationship with the C-Suite Peter: If my quick Googling is bearing out, you’ve had two new CEOs since you joined. So you’re on… Leslie: …that’s correct. I’m on my third. Peter: So given that you were brought in by one CEO and that relationship was so important, what has changed for you? This is something I noticed myself as a design leader, even if I wasn’t reporting to a CEO, even if the CEO barely knew who I was, who the CEO was had a very direct bearing on my ability to succeed as a design leader. And I’m wondering, kind of, how that has shifted and evolved as you’ve had new leadership come in, and how you’ve had to kind of show up, either the same or differently, given the nature of what was happening in the C-suite. Leslie: Yeah, it’s a great question. And, you know, I will say that it’s hard to navigate a managerial change. And I think about that all the time you know, I think there’s not a designer out there, there’s not anyone who’s worked in a corporation who hasn’t gone through a reorg. And then, you know, if you’re, newly mapped to a new manager, even if that person existed in the organization before, they’re new to you and establishing that level of trust and belief and knownness and shared philosophy and prioritization is hard, right? Even if at the end of the day, you have mutual respect across the continuum. And so, yeah, it’s been an interesting journey. You know, I mentioned I was recruited by someone who knew me and actually had known me at least in these kind of like off and on ways for over a decade. And so I was able to hit the ground running and I had really been hired, although my title didn’t say product, I was hired to drive our explorations around stepping into the mental health care space for us, like, running a therapeutic pilot that then led to a set of M and A evaluations and that’s actually something that I discovered when I was into it because I was leading a lot of the innovation product space. I really love actually thinking about not just organic growth, but inorganic growth and helping to drive that evaluative process. It’s itself a very, like, creative act. And that path led us to acquisition of a company Ginger. Which is how I got my 2nd boss, because as we made that decision to merge, the decision was made that that company’s CEO would become the boss. And deep respect for that individual who was with us for the last 3 years and just recently left the company, which will be the kind of 3rd chapter. But what was different foundationally was that I would say we went from an organization whose business model meant that design as an act and product as a medium were the primaries to an organization that built an enterprise benefits platform where sales was the primary, and so a very channel centric view of the world versus necessarily service centric world and a really different means by which you make money. You have to get a singular buyer to see enough value to sign up for a massive, sometimes multimillion dollar contract. And so they’re looking at like, how many boxes do you check? How confident are they that this thing is going to stand the test of time? And it deprioritizes some of the dimensions of what I had most cared about in the advocacy that was very directly mapped to our ecosystem. And so in that world. You know, as I saw how I could both shape our commercial model as well as shape what I wanted to have happen, that’s how I became the head of our consumer business. Was like looking at where does the influence that I want to have actually sit within this ecosystem and, you know, to be quite honest, I would say with our, third leader who’s come in really to help us take the world that we’ve now fully integrated, and, you know, we kind of like we have gotten through that incredible platform transformation that if any of you have ever gone through, it’s not necessarily a fun one, but it like gets you to a place where it just has different potential energy forward. Like he’s now here to act as like a maximizer. How do we take that and really take all the latent potential and maximize that energy. And I imagine that we’ll need to permute again, right? Like what are the things that the organization now cares about? How do we meaningfully shape them? And, in a world that now has a whole set of new technologies, in this world, what are the things that will matter most to an organization, both from an innovation and an incrementality standpoint? Planning for Innovation Jesse: I’m curious about where things are going, as we’ve seen innovation, as a standalone function, kind of fall by the wayside, innovation consultancies are having a hard time selling those services these days. And yet you did identify it earlier in this conversation as being something that design really has an opportunity to contribute toward, with design’s own toolkit and mindset and skill set. But then I wonder about what you said about having to embrace the spreadsheets and step into the world of the analytical in order to actually take on that role. And I’m wondering, where would you see an ideal place for some more of that old innovation magic in here? Leslie: Well, believe it or not, I actually think I’ve come to love the world of prioritization, and that where I see it able to really create space for the new, both the minor new and the mega new. You know, there’s a variety of different frameworks you can use, but the one I’ve loved for years is a horizon innovation framework, and it looks at the portfolio of SKUs and channels and kind of activities of an organization and ranks them on their maturity, and then assigns resources really based on that maturity. And what you want to have is a lot of things that are in the horizon one category, which means they’re fully mature. Like that doesn’t mean they no longer get investment. It actually means they get your most investment because you, you know, far more as you get further down the pike, the value of level of effort equals level of result. And so they’re highly predictable. You know, it’s where almost all of your go-to-market dollars should be spent, and it’s the cash engine that runs the company so that you can invest in a few things that are in horizon two and maybe one or two things that are in the horizon three hopper. And, you know, if you go to horizon three, that’s where I’d say, like, that’s where innovation sits. And as a company, you want to be placing as small, but as a complete, of a bet around a set of things that you think could be your future and giving them enough oxygen that they can deliver meaningful results that will actually be indicative so that you can decide whether or not you should fuel them or kill them, right. You know, it’s more of a. intrapreneurship type of experience and one that I’ve found a lot of pleasure in doing within the idiom of, if successful, it’s transformative, either to the way that we do business or to the way that we drive commercial value and to know that you may not necessarily, even if it’s greenlit, get permission to then build it internally. That’s a great hopper horizon three, for M&A, right? Like, okay, great. We proved this out. This actually is something that there are more mature businesses out in the ecosystem that we might decide to bring in, or this is actually something that we want to grow and scale internally. And that’s really what that middle hopper is about. So I would say, like, the space I found for innovation is to develop a kind of discipline and rigor about it that lets you allocate resources, as unsexy as that sounds, but to quarantine those resources so that they’re protected and can actually do their job. Jesse: Right. So this suggests then that if design really wants to actively participate in these processes, it means sharpening your ability to do some strategic long term forecasting from a design stance, a user value stance. Leslie: Yeah. I mean, yeah. One of the things I learned at IDEO, I mean, not like in a formal way, but by, like, peering over the shoulder of the few, we called them business designers, but basically the 10 human beings in the organization who had MBAs, was, they would do a lot of discovery driven planning, which is a fancy word for basically saying like, I don’t know what this is going to do, but I can set up a set of variables, like, and some of those are known: H ow big is this addressable market? What might we price this at? What would be a believable, you know, X, Y, and Z in terms of adoption. And I can make this machine that lets me explore possibility and see like, from an incrementality standpoint, does this matter if I get 10x more people to sign up? That passion for, I can make this so much better, has to be linked to, and if I do, does it matter? And making a model to kind of prove out to myself, okay, yeah, yeah, this is something I should continue to think is a big deal. Or, ooh, okay, even if I 5x this, at the end of the day, we’re talking about a business that’s in the single digit millions. Well, that’s probably not worth the time and effort versus something that has just a much bigger, you know, delta. Peter: As you were reflecting on some of your experience at IDEO, I found myself thinking or wondering about career development, right? You had an opportunity for career development. You were able to pivot from architect, into environments designer, into some type of general strategic business savvy design lead, who then was able to then kind of take that and go quote, unquote in house and, thrive at places like Intuit and, Headspace. And it’s not a secret that design agencies and consultancies have, whether or not they’re on the wane, the percentage of design practice happening in those environments versus in-house is way skewed. And I’m curious your thoughts on what we as a community, as an industry, as a practice are missing by not having those types of environments that tended to create a space for a certain kind of practice that you don’t get typically inside of enterprises, inside of corporations. And then, not only what are we missing, what, if anything, have you tried to institute as a design and product leader now with authority, with people listening to you, you have power. What have you tried to do organizationally within the spaces that you oversee to encourage that kind of professional development? Personal professional development Leslie: Yeah, I mean, first of all, I just want to acknowledge, I think that, you know, through no dimension of will, but through total serendipity, it was an incredible time to get to have that moment where design was a darling at the ball, where IDEO had that type of like broad stroke permission to come into spaces and to be consulting fortune 100 company CEOs about perspectives on their companies with total hubris. And like I look back on that as something that gave me probably undo confidence, but a level of confidence that certainly is valuable as we carry forward. So I want to acknowledge that as a starting point. So that’s not necessarily the reality of right now. I think, like, in exchange there has been, you know, at least up till very recently, and I believe it’s not going to like change and pivot on a dime, many more roles for folks with design backgrounds of a variety of ilks to step into high paying corporate roles. That wasn’t really the world that existed back then. And I think in exchange, however, it becomes very easy to become, you know, in the kind of ideal parlance of the T-shaped individual, where the long arm of the T is your depth and the horizontal arms, IDEO worked really hard on building those horizontal arms. And that makes it really easy to grab somebody else’s hand and skip on over and, you know, pretend for a while that you have another depth and then actually develop it. And I would say that those arms have to be very intentionally exercised in a corporate environment. You can get pigeonholed, especially in a large corporate environment, into extremely kind of technical sub-dimensions of a skill. And that might be how you get hired, right? Like, I actually got hired to IDEO because I was a good 3D modeler, and they needed somebody who could 3D model. Now, I did two projects where I 3D modeled, and then I tried my damnedest to never do it again. But I do think a lot of times why you are hired isn’t necessarily why you stay, and it’s definitely not necessarily why you move up in the world. And so, you are the one who knows both, like, who you are as a myriad individual the best, the organization doesn’t know. It doesn’t fit neatly into a matrix. Grab the thing that you’re both most passionate to learn and that you actually think you have a chance of being successful at, and raise your hand, use it as a ladder to advocate for what you think you can do, what you want. And then try your damnedest to do it well, and that’ll create opportunity. It’ll also help you understand, like, do I actually enjoy doing this? And so I think that that dimension, and that does assume that probably is some privilege wrapped around that, but like that dimension of intentional self advocacy, and not necessarily foresight on what’s going to be important, but insight to yourself is key. And being okay with the fact that I think like another design nature is like, you get bored. Seize that boredom as like the biggest thing that jets you forward. Don’t just like keep rinse repeating. Like you’ve mastered that skill, you’ve achieved mastery, move on. Keep it as part of your like, it’s part of your toolkit. What else do you want to know? What else do you want to explore? What else do you want to learn? I would say in our organization, we probably aren’t as institutional about it as we could be and should be. But we have a fair number of forums that are very democratic in the way that they work. And everything from, you know, your kind of traditional hackathon, those can be formed with teams from kind of anyone’s input, anyone can kind of propose sets of ideas forward. I make myself available weekly with an open office hours, and I would say what I see is across functions and across levels, the folks that most want to come and kind of pitch themselves in an idea, show up, they show up and they, they put themselves out there. And I do think you have to take some of those risks in order to yield the opportunities that you desire. Peter: I realized I don’t know what all you oversee. I imagine design and designers, maybe researchers, but is there like data or other product functions that are in your world as well? Leslie: Not necessarily producty functions. I also have our whole content organization. So, you know, Headspace makes, a wide variety of multimedia content. And so that organization lives within my purview in reporting structure, the brand creative team lives within my structure as does our science team. And so that is group of folks who have mostly clinical backgrounds, as well as actuarial backgrounds, who are responsible for evaluating whether we are efficacious, right? Like, do our services work? They run RCTs, they collect real world evidence, they run longitudinal studies to understand health outcome savings. And we do have a few clinical psychologists who are product managers as well, because we are making, you know, healthcare a consequential product. Peter: How did you make it clear to the C-suite that you were credible in leading clinical psychologists, right? You don’t have a background in that. You don’t have a degree in that you’re like, or… Leslie: I don’t, I don’t have a background in that. Peter: But I get the sense you must have demonstrated some ability or capability that allowed others to go, Oh, okay. She can stretch beyond the boundaries that, that she’s currently in. So let’s, give Leslie more responsibility. What do you ascribe that to? Leslie: I tend to wear a pretty strong veneer of credibility period, like, to own that. Like, I am versant, I am fairly intellectual, I’m pretty rigorous and I used to be an academic, and while I wasn’t an academic in areas like clinical psychology, you know, like with ability to speak post-structuralism and kind of go heady, you can, you know, help yourself like be nimble and appeal to the folks who have PhDs. And so that’s how I ended up inheriting the science function, was when our head of clinical at the time left the company. That team asked to report to my organization. And I think that’s because they had experienced directly that I cared about what they were doing. I valued it and I could get smart enough quick enough that I knew how to empower them. And I do think that a large part of that, you know, organizational choices tend to not just be tops down. But they’re bottoms up and which functions decide they can thrive under your leadership is a major factor in terms of where things end up sitting. Peter: I’m glad you used the word intellectual. Because it’s been evident, frankly, in our conversation that you are well read, extremely articulate, broad vocabulary. And if I am immodest, I like to think similar things about myself and that has gotten me in trouble in a lot of contexts, Leslie: Me too. Me too. Peter: I am very comfortable going very abstract, being very heady, being very conceptual, being intellectual. And I think, losing people overcomplicating situations. All of that. And I’m wondering, it sounds like you, you know, you’ve had a little bit of that experience, is this something you’ve had to kind of consciously dial in? What, what have you done to manage maybe some of these tendencies and inclinations in making sure that you’re coming across as, confident, capable, but not like overwhelming in the way that can sometimes happen to folks who get really spun up about their ideas. Leslie: Yeah I mean, I think I’m still on that journey. Let’s be completely honest. But I’ve had some great advice along the way. I had my first boss at IDEO was a gentleman named Fred Dust, who also came from an architectural background. And, a delightful human, and he would just call me out and mock me endlessly when I would use way too many multisyllabic terms. And I think one that I remember, I was talking to, like, I think American Eagle Outfitters, it was like a very workaday retailer that we were doing a project for. And I said something about perambulate and he’s like, she means walk. And so he would just, just make fun of me. And I realized that there had been this normalization, especially in architecture of speaking in a particular way that wasn’t intended to obfuscate, but did. And so I try to like tap that down. I would actually say like in a funny way, the more excited and ad lib I get, the more it comes out because then I’m not like intentionally thinking. And in my natural state, I still retreat there. I do a lot of writing and I tend to write like it’s some long form prose, Peter: For yourself or for public consumption? Leslie: Um, for all sorts of reasons. Both, I do both. But I would say, like, first and foremost, I was mentioning it because I tend to write to think. in order to process, like, what really do I think about this and how is that going to manifest in, you know, X, Y, Z sets of decisions, and I need to do the corpus you know, some people are like, I just need the TLDR. I’m like, well, to get to the TLDR, I have to write the big part first, and then, like, distill and reshape. But yeah, so I’m definitely still on that journey. I can be pithy at times. But, tend to like love a good long form debate. What’s next Jesse: Leslie, what are you most curious about as we enter this next phase? Leslie: I tend to be hopeful. And, I’m going to just kind of focus on, like, what the possibilities of technology bring. I like to imagine a world in which, like, these radically more empathetic means of interacting with technology help us address the loneliness crisis. They help us have people feel more seen and more heard and that doesn’t have them needing to navigate some obscure graphical user interface in order to find what they need, but like, just kind of surfacing the world to them is knowing what they need. And it’s kind of working in this capacity that’s helping fill the blank. I think that when I think about being an employee, kind of independent of function, that we’re not being made obsolete, but we’re becoming super-powered and that that’s, you know, allowing us to step outside the mundane, do a hell of a lot less of that and reserve time for things that creative human beings can only do, and that we’re going to understand that those dimensions of what I just articulated as kind of best case scenario are highly privileged. I’m less worried about like, do, does so and so’s profession become obsolete, do radiologists get replaced by the machine? Like, I’m less worried about that because largely all of those people will be fine. I am more worried about you know, an economic reality, a social reality, a political reality that is already harshly schismed and divided. And where both the resilience of folks who are at the bottom of the pyramid, as well as the means to take positive advantage of the evolution of technology is so much lower and how do we, as a society, as, as social engineers, how do we tackle that intentionally, so that we’re not increasing what I would say we are already, already clearly seeing, which is that it foments immense discord, violence in the world. Jesse: Well, if design leaders and design teams can do something to shift all of that, that’s a vision worth reaching toward. Peter: Most definitely. Jesse: Leslie, thank you so much for being with us. Leslie: Thank you. I really enjoyed the conversation. Peter: Yes. Thank you. Jesse: Where can people find you on the internet? Leslie: Sadly, I would say LinkedIn is the best place to find me You can find me and connect with me on LinkedIn. I, for whatever reason, just never hopped on the Twitter brigade. And then once it became X, like had no interest. So, you know, hit me up on LinkedIn and look forward to connecting. Jesse: Thank you again. Leslie: Thank you. Jesse: For more Finding Our Way, visit findingourway. design for past episodes and transcripts. You can now follow Finding Our Way on LinkedIn as well. For more about your hosts, visit our websites, petermerholtz. com and jessejamesgarrett. com. Peter recently launched the Merholz Agenda, his semi weekly newsletter. Find it at buttondown.com slash petermerholz And if you’re curious about working with me as your coach, book your free introductory session at JesseJamesGarrett. com slash free coaching. If you’ve found value in something you’ve heard here today, we hope you’ll pass this episode along to someone Else who can use it. Thanks for everything you do for others, and thanks so much for listening.chrome-extension://knjbgabkeojmfdhindppcmhhfiembkeb/index.html

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