Business Models for In-House Teams

1. Business Models for In-House Teams

2. The onion grass debacle or how corporations address their design needs

3. The onion grass debacle or how corporations address their design needs

4. The onion grass debacle or how corporations address their design needs Right problem wrong solution Wrong problem wrong solution

5. The onion grass debacle or how corporations address their design needs Right problem wrong solution Wrong problem wrong solution Corporate cluster-fluster

6. The model of the business model www.howtheworkgetsdone.success

7. The model of the business model www.howtheworkgetsdone.success The model defines: Staffing Process

8. The model of the business model www.howtheworkgetsdone.success • The model defines: • Staffing • Who does what • Who reports to whom • Who chooses how, where and when • (who has the authority) • (responsibility without authority trap)

9. The model of the business model www.howtheworkgetsdone.success • The model defines: • Staffing • Who does what • Who reports to whom • Who chooses how, where and when • (who has the authority) • (responsibility without authority trap)

10. The model of the business model www.howtheworkgetsdone.success • The model defines: • Process • How the work gets done

11. The process for self-determination and implementation Triple-A Audit-Assess-Actualize

12. Audit/Assess Look around and determine: What does your company expect your team to do? Audit Assess •What your team does •What should it be doing •Who is doing what •Who should be doing what •How it is being done •How should it be done

13. Audit • To determine what your company expects your team to do • Talk to management • Talk to clients • Take a strategic look at the business • (Where can the team have an impact) • Get buy-in

14. Audit Determine what your team does Types of projects/deliverables print, interactive, environmental design brochures, newsletters, annual reports, POP, ads, packaging, manuals, signage, trade show displays, video, websites, catalogs, sales aids, posters Types of projects/scope repetitive, one-offs, tier 1, 2 and 3, variability/predictability

15. Audit Determine what your team does Services Vendor management, client contact/customer service, art direction, design, copywriting, proofreading, project management, finance, fulfillment, print production, programming, brand management, branding Consulting (assisting other groups such as acting as liaisons for Marketing and Procurement with agencies and printers)

16. Audit Determine what your team does Services Vendor management, client contact/customer service, art direction, design, copywriting, proofreading, project management, finance, fulfillment, print production, programming, brand management, branding Consulting (assisting other groups such as acting as liaisons for Marketing and Procurement with agencies and printers)

17. Audit Determine who is doing what Meet with team Meet with clients Quantity/workload (properly resourced?) Quality (appropriately resourced?)

18. Audit Determine how the work is being done SOPs – procedures, processes & policies/regulations (industry dependent)

19. Assess What is and what should be (the gap between expectations and current structure) Work with clients, managers and team to draft a blueprint

20. Actualize Understand your options Evaluate assessments Evaluate opportunities and corporate climate Design a plan

21. Actualize Understand your options Flat structure Studio structure Agency structure

22. Actualize • Understand your options • Flat (compressed) structure • This is the “jack of all trades” model. • Designers handle all functions associated with a project. • Small management team. Few non-creatives. • Design • Art direction • Project management • Client contact • Vendor management • Proofreading • Finance

23. Actualize • Understand your options • Flat structure – circumstances to consider • Smaller group (1 to 5) • Logistically simple projects • Minimal variability in type and scope of project • Manageable bureaucracy • Minimal regulatory policies

24. Actualize • Understand your options • Studio structure - The studio model is similar to the flat model with a key exception; a separate team handles the project management and administrative responsibilities • (organizing, tracking and communicating information). • Designer (especially senior designers) functions include: • Design • Art direction • Client contact-design issues • Vendor management-technical issues • Proofreading

25. Actualize • Understand your options • Studio structure - The studio model is similar to the flat model with a key exception; a separate team handles the project management and administrative responsibilities • (organizing, tracking and communicating information). • Project Managers functions include: • Project management • Client contact-logistical issues • Vendor management • Proofreading • Finance

26. Actualize • Understand your options • Studio structure – circumstances to consider • Small to medium size group (5 to 20) • Logistically complex projects • Some variability in type and scope of project • Manageable bureaucracy • Modest regulatory policies • Information intensive projects • Modestly complex vendor relationships • Multiple stakeholders interface and reviews • Tight deadlines

27. Actualize Understand your options Agency structure – the most specialized structure of the three options. Almost every function has an accompanying position. The positions can include: • Creative Director • Art Director (multiple levels) • Print Designer (multiple levels) • Production Artists • Interactive Designer (multiple levels) • Proofreader • Copywriter • Account Manager • Project Manager • Traffic Coordinator • Print Engineer

28. Actualize • Understand your options • Agency structure – circumstances to consider • Medium to large group (20+) • Logistically complex projects • Wide range of types and scopes of project • Big bureaucracy • Complex regulatory policies • Information intensive projects • Multiple and complex vendor relationships • Multiple stakeholders interface and reviews • Tight deadlines • Shared services model

29. Actualize • Defining & documenting the chosen structure • Define position descriptions • Create reporting structure • Determine team structure

30. Actualize • Defining the chosen structure • Define position descriptions • Function – Broad statement of what the position does • Responsibilities – List of specific tactical tasks • Whom the position reports into • Who reports into the position • Required experience • Required skills • Salary – Corporate pay structure/market rates

31. Actualize • Defining the chosen structure • Create reporting structure • Management/solid line (boss) • Education/dotted line (mentor) • Manager conducts performance reviews, personal/business skills coaching and other HR functions • Mentor/guru supports team with their hard/technical skills

32. Actualize Defining the chosen structure Determine team structure Client (crossfunctional) vs Functional (multiple clients) Client – Shared goal Functional – Deeper coverage

33. Considerations Contract workers vs Permanent staff

34. Considerations • Contract workers vs Permanent staff • Contract advantages • Flexibility (hire by function and/or workload) • No HR responsibilities • Broader work experience • Contract disadvantages • Lack of loyalty/availability • Lack of institutional knowledge • Conflict with perm staff (privileges) • No HR responsibility • Co-employment laws

35. Considerations • Contract workers vs Permanent staff • Perm advantages • Institutional knowledge • Access • HR responsibilities • Loyalty/self interest • Length of tenure • Perm disadvantages • Complacency • Creative burnout • HR responsibilities • Corporate training mandates

36. Considerations Corporate pay structure vs Market rates Salaries – Fight for industry competitive rates Conduct market research Efficiency (read long-term cost-savings) Rationale Proper hard and soft skills Retention

37. Considerations Redundancy The buddy system (tasks) for institutional knowledge Redundancy The backup system (roles) for functional authority

38. Considerations The Strengths/Stretch balance

39. Considerations Career path – Manager vs Guru

40. SOPs Standard Operating Procedures PPPPPP

41. SOPs Standard Operating Procedures • Same process as staffing structure determination • Triple A • Audit to determine current procedures • Assess appropriateness • Actualize – create SOPs and implement them

42. SOPs Standard Operating Procedures Audit to determine current procedures Write up personal assessment (your best guess) Review and refine with team Review and refine with outside stakeholders (clients and peers in other departments) Create draft and validate with all stakeholders

43. SOPs Standard Operating Procedures Meet with all stakeholders to revise draft to meet actual needs and address gaps

44. SOPs Standard Operating Procedures • Document SOPs • Workflow chart • Work instructions • Policies vs procedures

45. SOPs Standard Operating Procedures • Implementation • Train (ALL stakeholders) – should be engaging • Retrain • Establish experts

46. Finance Chargebacks vs Budget Chargeback pros More entreprenuerial - Compete against agencies - Forces team to perform at a higher level - More ownership of department - More at stake - More opportunities to grow business--whoever will pay - Easier to quantify and justify value and cost-savings - Comes from marketing budgets - Insulates team from layoffs Chargeback cons You have to collect money - Need more infrastructure/hard to collect - Cash flow challenges - No guaranteed revenue - Client bias

47. Finance Chargebacks vs Budget Budget pros Guaranteed budget - Simplified financial model - Easier to plan growth Budget cons You’re locked into an annual budget – Little opportunity to grow - Less entrepreneurial incentives - Subject to cost cutting downsizing initiatives - Less incentive to track departmental finances

48. Finance The Procurement food chain Prepaid media buys Prepaid agency retainers Contractual agency retainers Per project funds

49. Resources Consultants Cohen-Miller Consulting Books The 5 dysfunctions of a Team/Talent is Not Enough/The Corporate Creative/In-house Design In Practice Blogs InHOWse Blog/Daniel Pink/Bob Sutton/IDEO Organizations AIGA/HOW/InSource/DMI

50. Building the plane while it’s in flight The challenges - the putting out fires conundrum The rewards – joy at work that comes from personal and professional fulfillment