Bill Hollins Direction Consultants HELLO. I’M BILL HOLLINS Creativity+Business

Bill Hollins Direction Consultants Eighteen years ago, I was teaching design management on the MBA when a student said :  ‘ Why do you keep talking about the design of cars when we all work in the service sector?’  That started me looking at how to design services.

Bill Hollins Direction Consultants At that time the majority of people working in the service sector thought that design was about d-grade celebrities painting walls awful colours  To be honest, there are many who still think that it is!  In engineering they may do design badly but at least they know what it is.

Bill Hollins Direction Consultants I design services and over the years I have written three books on the subject.

Bill Hollins Direction Consultants SERVICES ARE PRODUCTS SERVICES MUST BE DESIGNED THIS DESIGN MUST BE MANAGED

Bill Hollins Direction Consultants Design Management is about organising things:  Activities  People  Money  Time  Ideas

Bill Hollins Direction Consultants Especially Ideas!! (dealing with creativity)

Bill Hollins Direction Consultants Total Design (to me) is : A multidisciplinary iterative process that takes an idea and/or market need forward into a product or service. Design ends with disposal.

Bill Hollins Direction Consultants WHAT IS SERVICE DESIGN?  Service design can be both tangible and intangible. It can involve artefacts and other things including communication, environment and behaviours.

Bill Hollins Direction Consultants LIKE PRODUCTS, THE EARLY STAGES OF THE PROCESS OF SERVICE DESIGN ARE THE MOST IMPORTANT. Relatively early in the design activity the decisions taken will commit the operation to costs which will be incurred later 100% 0% Percentage of final product cost committed by the design Percentage of design costs incurred Start of the design activity Finish of the design activity

Bill Hollins Direction Consultants 85% of design management decisions and 85% of finance is committed in the first 15% of the process.

Bill Hollins Direction Consultants In the first 15% of the process is the MANAGEMENT  We do the main Market Research  We then need specifications.  3 out of the 4 main reasons for product and service failure are rooted in poor Market Research and poor Specifications

Bill Hollins Direction Consultants WHY DO NEW SERVICES FAIL? Products and services to fail for the same reason (although product failures are often more ‘dramatic’ –In practice, these reasons overlap

Bill Hollins Direction Consultants ‘If you think good design is expensive, look how much bad design costs.’ Martyn Denny, Sales and Marketing Director, Aqualisa, 2002

Bill Hollins Direction Consultants So how do you define success? It brought good publicity to the organisation. The customers liked it. It will bring a smile to the faces of children. We won awards for it. It is a flagship product. We show it on all our publicity. It was a technological breakthrough.

Bill Hollins Direction Consultants By all means have these - but THE MAIN MEASURE OF SUCCESS HAS TO BE FINANCIAL

Bill Hollins Direction Consultants THE DEFINITION OF A SERVICE  Service: Result of at least one activity, performed at the interface between the supplier and customer, which is generally intangible [adapted from BS EN ISO 9000:2005]  Service:  a) Any activity or benefit that one party can give to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.  b) a set of functions offered to a user by an organization  c) result generated by activities at the interface between the supplier and the customer and by supplier internal activities to meet the customer needs  NOTE 2 The supplier or the customer may be represented at the interface by personnel or equipment.  NOTE 3 Customer activities at the interface with the supplier may be essential to the service delivery.  NOTE 4 Delivery or use of tangible products may form part of the service delivery.  NOTE 5 A service may be linked with the manufacture and supply of tangible product. (BS )

Bill Hollins Direction Consultants OR MORE SIMPLY: Services differ from products in five ways

Bill Hollins Direction Consultants  Services cannot be stored.  Services cannot be easily transported.  Services are intangible.  It is more difficult to measure quality in services.  In services consumption and production occur together. (more on all this later)

Bill Hollins Direction Consultants A simple model for service design:  MARKET  SPECIFICATION  CONCEPT DESIGN  DETAIL DESIGN  IMPLEMENT  DISPOSAL

Bill Hollins Direction Consultants You can’t manage design without a process The figure around which BS 7000 –3 (not yet published0

Bill Hollins Direction Consultants In services they have the people but they do not have the leadership or the direction

Bill Hollins Direction Consultants Services are more about people (Live/work)

Bill Hollins Direction Consultants People are your greatest asset.

Bill Hollins Direction Consultants Most services ride on the back of products.

Bill Hollins Direction Consultants AND THIS IS IMPORTANT INCREASINGLY PRODUCTS RIDE ON THE BACK OF SERVICES

Bill Hollins Direction Consultants The service side is where there is great potential  Who would buy pizza without it being delivered?  That leads us to serial service innovations  Greater customer retention  New areas for growth  Remember the Ansoff Matrix?

Bill Hollins Direction Consultants An innovation is an invention in its first marketable form

Bill Hollins Direction Consultants ‘It is very easy to be different, but very difficult to be better’. Jonathan Ive, Head of Design, Apple Computer Inc Innovation is more easily accepted in the service sector – there is less of an existing infrastructure to shift.

Bill Hollins Direction Consultants I did some RESEARCH into how managers develop new or improve existing services ( in short, how they were designed)  Managers operating in the Service Sector in London

Bill Hollins Direction Consultants The Companies  Transport  Charities  Health  Banking & Insurance  Public & Private Services

Bill Hollins Direction Consultants THE CONCLUSIONS FROM THIS RESEARCH  Service design is still not managed in an organised manner.  As such, most service organisations are not in adequate control of their new services  Only 17% had an effective process.  And most of these generated a greater turnover from recently developed services.

Bill Hollins Direction Consultants What has to be managed in design (products or services).  First, list all the activities to be done in sequence.  Then work out the time for each.  Then the cost for each.  This will give the total time and the total cost for the development.

Bill Hollins Direction Consultants Then do these activities:  See what activities can be done in parallel.  (Does this reduce the overall time for the design project?)  Then identify who will be involved at each stage of the process.  Now see if there are adequate resources to complete the programme.  Compare the priorities of this with other design projects?

Bill Hollins Direction Consultants This results in good management  If you have worked out the activities, time, cost, people and priorities – what else is there to managing design?  YOU ARE IN CONTROL

Bill Hollins Direction Consultants Thank you for listening Pass the message on

Bill Hollins Direction Consultants For more info contact Bill Hollins:

Bill Hollins Direction Consultants Hopefully, you will soon steer your colleagues in the service sector to greater success!

Bill Hollins Direction Consultants Questions ?