{"id":5463,"date":"2023-05-23T12:57:36","date_gmt":"2023-05-23T20:57:36","guid":{"rendered":"https:\/\/wgaconsulting.com\/new\/?p=5463"},"modified":"2023-05-23T12:58:19","modified_gmt":"2023-05-23T20:58:19","slug":"design-your-way-through-tough-times","status":"publish","type":"post","link":"https:\/\/wgaconsulting.com\/new\/2023\/05\/23\/design-your-way-through-tough-times\/","title":{"rendered":"Design Your Way Through Tough Times"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Picture this: you&#8217;re dealing with a wildfire while experiencing an earthquake, and to top it off, a cyclone is heading your way. CEOs face a similar level of challenge when they not only have to worry about a looming recession and high inflation but also deal with the ongoing effects of the pandemic, supply chain disruptions, and the ever-present trends of digitalization, sustainability, and changing consumer preferences. These are indeed uniquely challenging times, and they require unique approaches, not the standard playbook. That&#8217;s where design comes in. Design has proven to be a valuable asset for companies, enabling them to navigate shifting landscapes and achieve better performance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Research has shown that companies that embrace the business value of design outperform their peers. From 2013 to 2018, these companies achieved a Total Shareholder Return (TSR) that was 56 percentage points higher. Moreover, companies that continued or increased their investment in innovation during the 2008-09 recession experienced three times more growth compared to their industry peers in the following three to five years. These results make sense because even during a recession, markets and customer needs continue to evolve, sometimes even at an accelerated pace.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Given these findings, it&#8217;s time for design to take a seat at the CEO&#8217;s table alongside finance, strategy, and talent. In this article, we&#8217;ll explore specific examples of how design can create significant value and enhance an organization&#8217;s resilience. Executives can leverage design to unleash creativity and problem-solving in five crucial areas.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-ceo-design-challenge-significant-budget-cuts-are-needed-to-meet-cash-flow-expectations\">CEO design challenge: Significant budget cuts are needed to meet cash flow expectations.<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>All-too-common approach: Pause product design and development.<\/li>\n\n\n\n<li>Design solution #1: Prioritize one to two products based on user research and business impact.<\/li>\n\n\n\n<li>Design solution #2: Pause new product development but invest in user-centric digital marketing.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">During a downturn, companies often resort to defensive measures, pausing innovation initiatives to conserve resources. However, the best performers play both defense and offense. Instead of making wholesale cuts, companies can prioritize specific products based on user research and allocate resources to user-centric digital marketing. This approach allows companies to maintain their competitive advantage while connecting products with consumers in a cost-effective way.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, a consumer bank facing a recession shifted its focus from creating new investment funds to understanding shifting customer behaviors. By implementing more user-centric marketing for existing products and educating consumers on finance, the bank built trust and increased sales by 25 percent, achieving results equivalent to its initial estimates from new product development.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">CEO design challenge: Adapting the strategic direction amid high uncertainty.<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>All-too-common approach: Analytical scenario planning.<\/li>\n\n\n\n<li>Design solution: Combine analytical approach with design thinking to explore alternative outcomes.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Uncertainty is prevalent in today&#8217;s business environment, and traditional analytical scenario planning might fall short in capturing all possibilities. CEOs can benefit from integrating design thinking, which brings user-centric insights and a broader range of possibilities to the table. By collaborating with designers and other strategic functions, organizations can better anticipate future crises, develop disruption scenarios, and catalyze action, gaining a competitive edge.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For instance, a building materials company formed a cross-functional team that included designers to identify long-term trends affecting the construction value chain. This exercise allowed the company to adjust its strategy and operating model, paving the way for pursuing new opportunities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">CEO design challenge: Supply chain disruptions threaten the organization&#8217;s ability to meet demand.<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>All-too-common approach: Seek alternative suppliers.<\/li>\n\n\n\n<li>Solution: Redesign products based on user needs to eliminate supply chain risks.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Supply chain disruptions have been a major challenge for companies, and climate change exacerbates the issue. Instead of solely focusing on finding alternative suppliers, a better approach is to redesign products to reduce their susceptibility to supply chain risks. By accommodating a wider range of parts or eliminating unnecessary components, design can create more resilient products, cut costs, and minimize delivery problems.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, an industrial-equipment manufacturer faced semiconductor shortages, including oil-level sensors. Upon analyzing usage data, the design team discovered that the sensor was rarely used because physical inspection of oil levels was the norm. They recommended removing the sensor and introducing a better-designed dipstick, resulting in more accurate readings and significant cost savings.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">CEO challenge: Balancing sustainability and ESG priorities during tough times.<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>All-too-common approach: Limit ESG initiatives.<\/li>\n\n\n\n<li>Solution: Embrace &#8220;skinny design&#8221; to reduce costs and carbon footprint.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In economically challenging times, companies often scale back on ESG (Environmental, Social, and Governance) initiatives due to cost-cutting measures. However, there are opportunities for bold action. By adopting a skinny design approach, companies can reassess products and packaging to simultaneously reduce costs, transportation expenses, and carbon footprint. Skinny design offers quick implementation with minimal investment, motivating design teams to contribute to the company&#8217;s mission.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, one company redesigned its shampoo, shifting from a water-based product to a powder that lathers when mixed with water. This simple change allowed the company to ship more product in smaller packaging, reducing its carbon footprint while delivering an enhanced consumer experience.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">CEO challenge: Improving productivity and reducing general and administrative costs.<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>All-too-common approach: Apply traditional lean methodologies.<\/li>\n\n\n\n<li>Solution: Optimize internal processes using a design approach.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Many companies have invested in enhancing customer-facing processes but overlook the potential of applying a design lens to internal processes. By using a cross-functional and collaborative approach, design can uncover unmet needs, streamline internal processes, and boost employee satisfaction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For instance, a mining company facing financial hardship collaborated with frontline employees and design teams to identify frustrations and co-create technology-based solutions. The implementation of digital tools, replacing inefficient paper-based procedures, increased productivity per worker and improved safety, leading to significant returns.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Design is a powerful tool that can benefit companies in both good and challenging times. CEOs should recognize the untapped potential of design and elevate its role within their organizations. By leveraging design thinking and embracing user-centricity, companies can navigate uncertainty, strengthen their resilience, and thrive amidst evolving business landscapes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Design is a crucial tool for CEOs to navigate challenges, drive innovation, cut budgets, resolve disruptions, and increase 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