What is the Value of

Jeneanne Rae CEO, Motiv Strategies

McDonough School of Business February 11, 2015

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Confidential report provided courtesy of Peer Insight. Please do not copy or distribute.

SPECIAL REPORT GET CREATIVE!

MEET THE INNOVATION GURUSEpiphanies for hire: When it comes to out-of-the-box thinking, these are the Magnificent Seven

BUSINESSWEEKSPECIAL REPORT

THE COACH

Jeneanne RaePeer Insight,Alexandria, Va.

JENEANNE RAE IS the doyenne of service innovation. With herHarvard University MBA

and seven years at IDEO, thePalo Alto (Calif.) design-strategypowerhouse, Rae is carving outa niche in showing servicecompanies how to innovate. She co-founded Peer InsightLLC, a service innovation con-sortium, in which members paya fee for Rae to run innovationaudits. Using Peer Insight as aconfidential intermediary (italone knows the origin ofspecific information), members then share in the successesand failures of the group and benchmark their progress.With Rae acting as an innovation coach, the goal is to helpservice companies understand how to shape their con-sumers’ experiences. She uses design principles to rethinkcompany strategies. Peer Insight so far has signed up sevencompanies as charter members – Diebold, Hewlett-Packard,MasterCard International, Siebel Systems, Siemens,

Starwood Hotels & Resorts,and York International. PeerInsight has also done innova-tion research for 37 othercompanies, from FedEx to T-Mobile.

According to Rae, there islittle innovation in services.Service companies have goodbrand and marketing people,she says, but there’s no one incharge of innovation. “They’relike tech companies,” addsRae. “They come up withnew things and just launchthem at consumers. Theydon’t get that it’s all aboutinteracting with customersfirst and then giving themgreat experiences.” Oneexception is Starwood, whichhas a Chief Creative Officer.

Rae also serves as an adviserto Procter & Gamble Co.’s Claudia Kotchka and other inno-vation leaders. And her course, Developing New Productsand Services, at Georgetown University’s McDonough Schoolof Business, is hugely popular. Rae, along with most ofthese gurus, will be a columnist for BusinessWeek’s onlineInnovation & Design portal. There she will discuss the 17disciplines that can be used as an innovation scorecard forservice companies.

August 1, 2005 | BusinessWeek | 79

Design

purpose, planning, or intention that exists or is thought to exist behind an action, fact, or material object

Design is difficult to define

Design is"tricky to measure

Design is difficult to isolate as a function.

ENVIRONMENTAL DESIGN

SOFTWARE DESIGN

FASHION DESIGN

USER EXPERIENCE DESIGN

STRATEGIC DESIGN GRAPHIC

DESIGN

INTERIOR DESIGN

SOUND DESIGN

CUSTOMER EXPERIENCE DESIGN

INFORMATION DESIGN

INDUSTRIAL DESIGN

INTERFACE DESIGN

TYPOGRAPHIC DESIGN

COMMUNICATION DESIGN

PRODUCT DESIGN

Design is multifaceted

SERVICE DESIGN

But for those companies that get it…

Design pays off

Apple Coca-Cola Ford Herman-Miller IBM Intuit Newell Rubbermaid

Nike P&G   Starbucks Starwood Steelcase Target Walt Disney Whirlpool

© DMI/Motiv Strategies 2014 dmi.org/value | motivstrategies.com

228%

$0

$10,000

$20,000

$30,000

$40,000

'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13

Design Value Index

S&P 500

Design Value Index vs. S&P 500

Apple � Coca-Cola � Ford � Herman-Miller � IBM � Intuit � Newell Rubbermaid � Nike � P&G � Starbucks � Starwood � Steelcase � Target � Walt Disney � Whirlpool

10+ years publicly traded

Scale of design

Investment

Org. Structure

Design Leadership

Senior-level commitment

Design Value Index Criteria

What does all this mean?

Design is recognized"as a key strategic enabler

Great design needs power & influence #1

#2 Great design requires great resourcing

Great design requires a strong brand

#3

Design is a function like any other

…But also not.

#4

To make design a key strategic enabler:

Power and influence

Great resourcing

Strong brand

Managed as a unique business function

Questions?

Thank you

Jeneanne Rae Founder, Motiv Strategies jeneanne@motivstrategies.com