Getting to truth with your customers – the power of human centred design

Lynette Nixon PwC

© PwC

This presentation has been prepared for the Actuaries Institute 2014 General Insurance Seminar. The Institute Council wishes it to be understood that opinions put forward herein are not necessarily those of the Institute and the Council is not

responsible for those opinions.

There’s an elephant in the room

About the conversation today …

The context of why? 01 About design thinking 02 Observation . With a twist 03 Potential outcomes 04

We have to start with context

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=

The world has changed

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Area of change The world we know The world we need to know

Dominant logic • Status quo • Customer and user led

Operational interactions • Hierarchical/linear • Pursuit of certainty • Reduction of errors

• Networks and nodes • Ambiguous • Seek insight

Mind-set • Compliance • Inside out

• Divergent • Outside in

Decision making • Hierarchical • Fear of failure

• Participation/authorship • Learning through experimentation

Approach to change and communication

• Information is power • Powerpoint

• Transparency creates opportunity • Conversation/storytelling

Orientation • Individualistic • Command and control

• Team – collaboration, empathy • Performance through trust

The definition of insanity …

To do the same thing again and again and expect a

different outcome

The result of corporate insanity? Strategy by assumption

Assumption Fact

Every customer is price driven

Insurers are leaving $$ on the table because every

customer is different, and some want

more than competent process

We cannot solve problems with the same thinking that

created them Einstein ”

“

Introducing design thinking How can we respond?

Design thinking is defined as combining empathy to

understand the context of a problem, creativity in the generation of insights and solutions and rationality in fitting various solutions to

the problem context

The heart of

design is the user – the customer,

your people, your stakeholders,

supplier ..

An approach you can use …

? Frame the right question

Discovery • Inside – in your

organisation • Outside – what can we

learn from others?

Synthesis • Different from

analysis

Patterns / stories and

themes Design conversations

Prototyping • Test and refine ideas

Implementation • Use human centred

processes

Co-design • With customers

Design/ ideation

Discovery 1

Synthesis 2

Ideation and prototyping

3

Implementation 4

It’s grounded in meaningful engagement with customers and your

people 74% of Australian employees would

be more likely to be motivated at work if they were engaged in

innovation activities HC Online 2013

Companies that engage and empower their workforce are better positioned to anticipate and adapt to changing market conditions PwC Building Innovation

Disengaged employees drag down companies, costing billions in lost

productivity and higher turnover rates PwC Building Innovation

Employees most committed to their organisations put in 57% more effort on the job — and are 87% less likely

to resign — than employees who consider themselves disengaged

HC Online 2013

Observation - for behaviours not compliance

Let’s focus on one tool …

Behavioural observation The observation of people in ‘real time’ as they interact with each other and with their environment

It focuses on the tone, emotion and behaviours, and the impact they

have on the interaction

How can it be used? • Learn the truth about what’s important to your customers,

people and stakeholders • Understand the process of decision-making:

• Why do people react the way they do to various triggers in front of them? What are the factors influencing the decision? What insight can we gather to understand how to change that reaction?

• To look past the symptoms to find the root causes of what will influence the behaviour we observe

How does it work?

Step 1

Step 2

Step 3

Step 4

Agree what we will be observing – this will be framed around our focusing question to help us learn Communicate to the various site owners – our purpose, what they can expect and what we need from them Train the discovery team – the value of involving your people is unbelievable … and will accelerate any change you want to make

Into the field – to see what you see

Tibetan truth We hear what we listen for and see what we’re

looking for

Truth, cut through insight and de-risk implementation

The potential outcomes

The outcomes of using design thinking to solve business problems…

Cut through outcomes –

based on truth not assumption

De-risk implementation –

through prototyping and

engagement

Authorship of the changes you are

trying to make from your people – they are part of

the process

Anticipation and energy in the business –

this ‘feels’ different

Bold outcomes

with multiple options in

how to progress

Confidence and certainty in execution

about impact and approach

PwC

And learn more about your customers using personas – behavioural not

demographic

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The stories we can tell about these customers and their needs help to

drive change so it is real for your people

PwC

Stories to drive change

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Stories engage us because as a listener, our sensory cortex grows because our natural instinct is to anticipate the end of

the story

Stories are facts, wrapped in context delivered with emotion

60% of our time is spent on story telling .. we call it ‘gossiping’

Stories make sense of complexity by anchoring our thinking in humanity

PwC

Your assumptions challenged

From ... To ...

Experience Clinical/ transactional Human/tailored/personal/ shared

Process driven Tailored to individuals

Staff mindset Move through the system Understand needs and behavioural preferences and adapt to them

KPIs Through-put Experience /advocacy

Assumption Patients will feel better if we can move them quickly out of the waiting room and into the care context

Fact Some of our patients do not ‘need’ to be moved quickly and feel more comfortable in the waiting room where there are other patients and families.

Opportunity Can we reframe the waiting rooms to be ‘Hospital Lounges’? How would that:

• Change the way we design our processes around them?

• Influence the design of the physical environment?

Impact By thinking differently about the purpose of the waiting rooms; the way we design and use them could also evolve.

A final thought

The real act of discovery is not in finding new lands, but in

seeing with new eyes

This is more true today than ever when we strive for competitive

advantage ” “