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What is the Value of Jeneanne Rae CEO, Motiv Strategies McDonough School of Business February 11, 2015 ?
Confidential report provided courtesy of Peer Insight. Please do not copy or distribute. SPECIAL REPORT GET CREATIVE! BUSINESSWEEK SPECIAL REPORT MEET THE INNOVATION GURUS Epiphanies for hire: When it comes to out-of-the-box thinking, these are the Magnificent Seven THE COACH Jeneanne Rae Peer Insight, Alexandria, Va. J ENEANNE RAE IS the doyenne of service innovation. With her Harvard University MBA and seven years at IDEO, the Palo Alto (Calif.) design-strategy powerhouse, Rae is carving out a niche in showing service companies how to innovate. She co-founded Peer Insight LLC, a service innovation consortium, in which members pay a fee for Rae to run innovation audits. Using Peer Insight as a confidential intermediary (it alone knows the origin of specific information), members then share in the successes and failures of the group and benchmark their progress. With Rae acting as an innovation coach, the goal is to help service companies understand how to shape their consumers’ experiences. She uses design principles to rethink company strategies. Peer Insight so far has signed up seven companies as charter members – Diebold, Hewlett-Packard, MasterCard International, Siebel Systems, Siemens, Starwood Hotels & Resorts, and York International. Peer Insight has also done innovation research for 37 other companies, from FedEx to T-Mobile. According to Rae, there is little innovation in services. Service companies have good brand and marketing people, she says, but there’s no one in charge of innovation. “They’re like tech companies,” adds Rae. “They come up with new things and just launch them at consumers. They don’t get that it’s all about interacting with customers first and then giving them great experiences.” One exception is Starwood, which has a Chief Creative Officer. Rae also serves as an adviser to Procter & Gamble Co.’s Claudia Kotchka and other innovation leaders. And her course, Developing New Products and Services, at Georgetown University’s McDonough School of Business, is hugely popular. Rae, along with most of these gurus, will be a columnist for BusinessWeek’s online Innovation & Design portal. There she will discuss the 17 disciplines that can be used as an innovation scorecard for service companies. August 1, 2005 | BusinessWeek | 79
Design is difﬁcult to deﬁne
Design is" tricky to measure
Design is difﬁcult to isolate as a function.
Design is multifaceted FASHION DESIGN USER EXPERIENCE DESIGN INTERFACE DESIGN SOUND DESIGN INFORMATION DESIGN SOFTWARE SERVICE DESIGN DESIGN COMMUNICATION TYPOGRAPHIC DESIGN DESIGN ENVIRONMENTAL DESIGN PRODUCT INTERIOR DESIGN STRATEGIC DESIGN DESIGN GRAPHIC DESIGN INDUSTRIAL DESIGN CUSTOMER EXPERIENCE DESIGN
But for those companies that get it…
Design pays off Design Value Index vs. S&P 500 $40,000 228% $30,000 $20,000 Design Value Index $10,000 S&P 500 $0 '03 '04 '05 '06 '07 Apple Coca-Cola Ford Nike P&G Starbucks '08 '09 '10 '11 Herman-Miller IBM Starwood Steelcase '12 '13 Intuit Target Newell Rubbermaid Walt Disney Whirlpool © DMI/Motiv Strategies 2014 dmi.org/value | motivstrategies.com
Design Value Index Criteria 10+ years publicly traded Scale of design Investment Org. Structure Design Leadership Senior-level commitment
What does all this mean? Design is recognized" as a key strategic enabler
Great design needs #1 power & inﬂuence
#2 Great design requires great resourcing
#3 Great design requires a strong brand
#4 Design is a function like any other …But also not.
To make design a key strategic enabler: Power and inﬂuence Great resourcing Strong brand Managed as a unique business function
Thank you Jeneanne Rae Founder, Motiv Strategies firstname.lastname@example.org