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Resilient Design ManagementEmbracing Complexity in Teams, Products, and Organizations
Chris Avore
Nasdaq, Inc.
@erova
#mx16
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How do leaders bounce back from uncertainty or adversity and succeed
under challenging circumstances?
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New competitors New technologies Growth pressure Lower margins Globalization Talent/workforce challenges More data to “help” us
and it all happens faster than ever before
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Situations emerge in the process of creative destruction in which many firms may have to perish that nevertheless would be able to live on vigorously and usefully if they could weather a particular storm
Joseph Schumpeter
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Businesses that used to be separate are now interconnected and interdependent, which means these systems are now more complex.
Rita McGrath
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Complex Adaptive Systems are diverse living elements made up of multiple interconnected agents that have the capacity to grow and change.
Sharon VanderKaay
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This sounds complicated
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We can determine complicated outcomes. We can only enable complex outcomes. We can specify complicated systems. We can only intervene in complex systems.
Irene Ng
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Complicated systems Complex adaptive systems
Predictable Tightly structured Efficient Rebuildable Trainable Scarcity mindset
Unpredictable No centralized structure Emergent Uhh, not rebuildable Learnable Opportunities for abundance
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The opposite of simple The opposite of independent
Complicated systems Complex adaptive systems
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urban transportation
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air tower
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• Planning • Organizing • Command • Coordination • Control
Greater, denser interdependencies of partners, supply systems, customers, etc
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If you manage a complex organization as if it were just a complicated one, you’ll make serious, expensive mistakes.
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Our world is dominated by the extreme, the unknown, and the very improbable ... while we spend our time engaged in small talk, focusing on the known and the repeated.
Nassim N. Taleb
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Business
ProductMe
Dev
When will this ship?How many designers
do you need?
How many releases will this take?
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Cause &
Effect
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Command &
Control
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Prepare &
Embrace
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Let’s expect surprises.
Let’s foster flexibility.
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Let’s interpret our environment.
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Let’s position our teams, products, and organizations to become resilient.
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Resilience is the capacity of a complex adaptive system to absorb change and disturbances, and still retain its basic structure and function, it’s identity.
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What [the tsunami] did was show the vulnerability in the supply chain. It became clear automakers had no idea how far down the supply chain some of these third level
suppliers were. They now have a process in place to set up a war room to handle these situations,” says Michele Krebs, a senior
analyst with Edmunds.com.
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I’m a design manager. I’m not responsible for e-coli outbreaks or
fraudulent emissions systems, or some rich dude wanting my Board of
Directors tossed.
or earthquakes or volcanoes.
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• Funding gets cut • Change of boss, stakeholder • Acquisition of like-assets • Usability testing reveals failures • Change in process • Security attack
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Resilient Design Management · Chris Avore · @erova #mxconf
Adaptive Cycle
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• innovation • new opportunities
• maximum growth stage • exploit every possible resource or niche • weakly interconnected • internal systems weakly regulated
• established system • standardized, proven solutions • specialization
• Creative Destruction • state of chaotic collapse • often brief, rapid decline
α
Ωr
KConservation
ReleaseRapid growth
Reorganization
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α
Ωr
K
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α
Ωr
K• innovation • new opportunities
• maximum growth stage • exploit every possible resource or niche • weakly interconnected • internal systems weakly regulated
• established system • standardized, proven solutions • specialization
• Creative Destruction • state of chaotic collapse • often brief, rapid decline
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Ω
KConservation
• increase in efficiency through reduced redundancy (one size fits all) • subsidies so people have an incentive to stay rather than change • more sunk costs into maintaining status quo • increased command and control (less and less flexibility) • preoccupation with process (more rules, more time devoted to sticking to procedures) • suppression of novelty, less experimentation • rising transaction costs to get stuff done
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“Efficiency increases and the future seems ever more certain to be
determined.”
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What can designers, and leaders of design teams, do to avoid this late K phase?
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I have an have an idea!
Great idea!
Agree 100%
Let’s do it!
Diversify
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Diversify
Hire people from different backgrounds
Don’t fall for domain knowledge or years of experience when hiring
Team Approach Business
Alternate prototyping methods, research techniques
Change up who presents to stakeholders, bosses, interview clients, etc
Continually monitor the industry as potential partners, not competitors
Highlight risk of only engaging with one content provider, no API, etc
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Modularity
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Modularity
• Build, Buy, or Partner? • Many (cough, diverse)
sources of content, audiences
• Establish autonomous teams with tools & training
Organizing your design team by function (collaboration,data visualization, etc) instead of business unit or product increases modularity.
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“We’re in the very early stage of standardization and our strategy is that we don’t put all our eggs in one basket,” said Mr. Bussmann.
Instead, UBS is trying to team up with the most promising groups and technology providers so that it has a front-row seat when one develops critical mass.
“You prepare yourself for that change in the marketplace so you’re part of that change,” he said—WSJ
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We’re gonna be rich!
The prototype is testing great
It’s amazing!
The prototype has serious problems
Let’s get to work.
Let’s look at the research
I’m ready to help
The first test went OK
Uh oh, the prototype has
serious problems
Close Feedback Loops
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Close Feedback Loops
As a design manager, it may not be your responsibility to make sure all parties are talking to each other, but you can facilitate the conversations and recognize who is missing.
• Invite business & product execs to design studio
• Share design research with everyone
• Keep Support, Sales, Marketing included
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Redundancy
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Redundancy
• Cross-train designers so more people know research, visual design, etc
• Teach product managers, stakeholders, others how to apply design methods in their daily work
• Move people to different projects so others know what the projects are about
• Reduce specialization
Teams in which different individuals took turns leading the group were more creative than teams in which one person was consistently in charge
MIT Sloan Management Review
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Summary
• Diverse teams, approaches, and products increase your ability to react to disruptive events or take on new opportunities
• Modular teams can sustain disruption without adversely affecting other parts of your organization
• Longer, looser feedback loops mean disruptions can go unnoticed
• Redundancy provides multiple sources of productivity, knowledge, and leadership
These recommendations will be difficult to implement in a business built for optimization, efficiency, and maximum returns based on minimum effort.
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conclusion
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Change the mindset
See your design team as a part of an interdependent system Appreciate and expect ambiguity Account for non-linear progress Replace scarcity-driven approaches with creating abundance Embrace grassroots/bottom-up ideas & projects Learn from experience, not just training Strive for influence, not control
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Make changes from a position of strength, not desperation.
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Thank you.Chris Avore @erova