One Question Answers ~ How do we design products for people and profit?

How do we design products for people & profit?

February 2020

How do we design products for people & profit?

On the 25th February 2020, we asked this question.

In this report, we seek to answer it through the lens of leaders in innovation, media, healthcare and brand.

History is full of organisations that design, manufacture and sell products in order to make as much money as possible, or to do something for the greater benefit of humankind. Fortunately, this Venn diagram is changing, and organisations setting out to do both occupy an increasingly large intersection of industry.

Of course, the above scenario is hypothetical. One would assume that, in 2020, a company would find a way to accommodate both social good and the desire to make money. GSK, Pfizer, amongst others, do exactly that: they occupy the intersection of both.

However, as we also know from history, companies which are often too reliant on profit-making have a heavy, negative effect on people.

As we have seen in recent One Question discussions, a changing world invites greater scrutiny on companies which appear to exist solely for economic self-interest, while encouraging the development of both companies and products which have a mission based on social good. If design is the way in which one views and interprets the world, then that view can only include people. That view can only include empathy. Systems such as Design Thinking hard-wire such elements into their processes, which is why they are becoming increasingly popular.

Sarah Parsonage Founder of One Question

There are beautiful examples of products and services designed for both people and profit all around us. A harmonious co-existence can and often – usually? – does occur. When it doesn’t, then it can often lead to a breakdown at macro-scale (mass harm) or micro-scale (a momentary irritation). As the world becomes more empathetic and yet more challenging, simpler in use and yet more complex in understanding, the one question which we seek to explore is how business remains best equipped to deliver shareholder value whilst offering beautiful, frictionless products.

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“With a desire to break down industry echo chambers, to learn not just what we think, but why we think it, this paper traces a guiding thread through case studies and individual essays to answer this One Question.�

Sarah Parsonage One Question

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“Common sense is not very common” This remark, from footwear leader Lisa Hogg, perhaps speaks to a wider social malaise. From populism through to the panic-buying of toilet roll - or, as the Germans beautifully named that endeavour ‘Hamsterkaufen’ - we are living in times of turbulence, of flux. So, when we want to feel better, we often retreat back into safety and stability.

That was how Lisa painted the picture of the Vans Old School, which until only recently was rather too much of a “heritage product “- left on the shelf and eclipsed by the more radical footwear available. But Vans played the long game. They initiated a steady drumbeat of refreshed messaging around the Old School until it, once again, became a market leader worn in every skate park from Ipswich to Istanbul.

“If short termism is so important,how many times in an economic downturn do people gravitate back to brands that have heritage and stability? If you have an emotional void,what are the vices you use to fill it?

When the world feels like it’s going to hell, what will make you feel better?”

Lisa’s more recent work was at Toms, which is known for its “one-for-one“ strategy – for every pair of shoes purchased, another pair donated to a chosen charity project. As Lisa

Lisa Hogg

explained, this strategy was the genesis of Toms.

The company invites its employees to nominate new projects and organisations, such that the choice of where the shoes go to is made by the employees.

It’s a democratic organisation with a strong sense of social commitment and fairness.

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Lisa conceded, any customer can walk into a fast fashion retailer and buy an equivalent pair of shoes for a tenth of the price of Toms. But that race to the bottom doesn’t interest the company. If you want to pay a fair price for a product which is socially and environmentally considerate, shipped in a way which is less harmful, containing no chemicals which seep into the skin, then Toms delivers on those promises.

As we know, everything is a trade-off. Consumers of fast fashion may well be paying much less, but that means lower-paid manufacturing staff, environmentally inconsiderate shipping, and compounds that harm rather than heal the skin. We all try to block this (un) ethical dimension from our minds.

In this era of people as well as profit, we need to think harder and deeper about the effects of our choices and actions.

UEFA remains a non-profit governing body for European football, with social action in its dna.

The rise, at least in broadcast terms, of the women‘s game has propelled the organisation into doing more in terms of community outreach with young females, to catalyse a life-long interest in sport. A new campaign in which UEFA is working with Disney aims to double the amount of girls playing football within four years.

“I moved to Switzerland to take the role at UEFA; there is no Amazon. Everything is localised into the cantons.

They try to import as little as possible. Shops close on Sundays. We have had to adapt to a slower world. It’s actually quite refreshing: less about product, more about experience.”

Craig Hepburn UEFA

It’s ambitious, but rightly so.

In this era of people as well as profit, we need to think harder and deeper about the effects of our choices and actions.

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UEFA‘s community work across Europe has a real sense of purpose that can be easily linked back to its famous European competitions. The imperative is to motivate children to get and stay healthy and interested in sport - it‘s from these endeavours that we‘ll see the next Messi. Although it‘s easy to consider a governing body as dry and only concerned with regulation, it‘s only through working with people throughout their sporting lives that football can thrive - and UEFA can thrive too, leading and supporting it.

As with Toms, it‘s way, way more than just one product.

Renowned innovator Matt Hart looks at people through an anthropological lens to re-state the contemporary yen for meaning. Traditional marketing doesn’t necessarily work in a world that has moved well beyond mere consumption. Success should be about behavioural change: what people actually do, and over a longer term than just a reporting quarter.

This means working with superfans all the way out to those indifferent mainstreamers who are less inclined

“If you didn’t build a fanbase first, then scale, you end up being a one-hit wonder.”

Matt Hart

to engage with products or brands.

Change also means challenge. We should never be scared of stakeholders (including customers) challenging the solidity of our brand, and should not be scared to challenge others either. We should not be scared to make changes from the inside out. 5% of the marketing budget for a global brand may not be significant to the budget itself, but it is still substantial in financial terms. If that 5% went to projects in the same way that Toms is doing,it would have an immediate impact.

Change also means challenge.

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After fast fashion and sports, we turned to slow news. Co-founder of Tortoise Media, Katie Vanneck-Smith, gave a fascinating insight into why the company exists: to right some of the wrongs and the wreckage left behind by traditional newspapers and print media. Whilst they have enjoyed a great run over the last 100 years with much advertiser-led innovation along the way, it‘s safe to say that this position has been exploited.

The assumption that newspapers’ authority enjoyed up to the mid-90s could simply be adapted to digital was arguably their undoing.

Civilised discourse went out the window, in pursuit of publishing crap for clicks and hits.

Katie‘s aim, alongside co founder James Harding, is to bring more traditional values of in-depth newspaper editorial, but transform it for a digital age. It would be unjust to simply call this “slow news“ - it‘s much more about ensuring that quality journalism doesn‘t just fully reflect the stories that it covers, but also the people who serve as its readership.

Civilised discourse went out the window, in pursuit of publishing crap for clicks and hits.

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“The first two decades of a century are often the postscript of the last. The 20th Century was the disposable century. The 21st Century is the durable century.

That shift in terms of innovating for people, for the planet and for profit.

That is going to be our reality.”

Katie Vanneck, Tortoise Media

Although a digital-first publisher is seen as innovative, Katie has a more sanguine attitude.

Paid-for news is not an innovation in itself but what Tortoise is doing, might well be. What‘s important to Tortoise is not just scale in itself, but how it scales - a very European attitude, whereas digital media elsewhere in the world - particularly in the US - often relies on a volume model underwritten by a debt-led business model.

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As such, Tortoise‘s attitude to business is consistent with its attitude to news: it has to be done properly.

As Henry Royce (of Rolls-Royce) once said, whatever is rightly done, however humble, is noble.

Frankly, in a world where “fail fast“ is a ‘de rigeur’ business model, Tortoise reminds us (as the eponymous animal demonstrates only too well) that slow and steady can often win the prize.

Tortoise has around 30,000 subscribers. Profit, purpose and people are critical to Tortoise delivering the right numbers, and the right readers. Having a unflinchingly thorough approach means that Tortoise has more of a social commitment; its determination to fully reflect society in its news gathering is something that Katie felt very strongly about. Taking advice and insight from Lisa of Toms (when Lisa joined the One Question annual event in May asking our 2019 question, can purpose really drive profit) Tortoise implemented the “one-for-one” model: for every fully-paid-up subscriber, a free subscription is offered out to widen participation for those less fortunate.

That’s not to say that the company has not pivoted,

“Tortoise has succeeded by taking a quality-first, people-centric, grown-up approach to news gathering, deliberately swimming against the tide of - as Katie put it - ‘cats on skateboards’ publishers.”

adapting its model to fit. Tortoise used to publish five stories per day - which was overwhelming. It now focuses on one story per week… Something that again came from its subscribers who felt that Tortoise wasn’t differentiating itself fully in the market.

As Henry Royce (of Rolls-Royce) once said, whatever is rightly done, however humble, is noble.

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Although Ben Ryan could have joined his family engineering business, his interest was neuroscience, and so became a Psychologist with a focus on paediatric neurology.

Glaze started out of personal need - and frustration.

Ben’s son’s arm required amputation after only 10 days from his birth. Although the NHS is unquestionably excellent in its duty of care, the prosthetic replacements offered to Ben were simply dire.

This is not uncommon; by the age of three, 70% of children become disengaged from their prosthetics to the extent that they are not considered as a suitable artificial limb. Arm prosthetics also help the remaining human arm; the upper arm grows in accordance with the weight of its artificial counterpart, building muscle.

By puberty, synapses “drop” when they are not used, so

“Think of how many people you know have ideas, but never realise them. I would love to smash that down.”

prosthetic adoption is a race against time.

Ben Ryan Ambionics

Glaze started out of personal need and frustration.

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Ben wanted to resolve this situation for his son and for prosthetic users in general. After making a makeshift prosthesis and, later on, a cast, this homemade attempt fit beautifully. There was clearly a need - one which Ben wanted to take further.

Perhaps surprisingly, applications for funding were rejected, as was a PhD to exploit both the academic and commercial potential of his work. However, he used his energy to push the idea further and to create what is now Glaze.

This is a business that clearly has a unique purpose for the rather young people it is there to serve. In serving them, it seeks to make a profit. But Ben took a similarly brave, determined view here: as long as his salary is consistent with his former job as a Psychologist, that’s fine. Everything on top goes back into the business.

Since last June, Glaze has made forty-five arms, shipping them around the world. They take two weeks to make and are offered in bright colours for children to appreciate them, over and above just fit.

Ben sees his success as being a torch-bearer for many others to come.

“I jumped through all of the hoops in my business.

Working with families is key to innovation in niche healthcare. In my case, the child set the design brief.�

Ben Ryan Ambionics

This is a business that clearly has a unique purpose for the rather young people it is there to serve.

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“The world needs change. Am not sure about you, but I really want to be a driving

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To TOMS who exist to use business to improve the lives of others. The common thread is community.

And when you look at purpose, or sustainability, or systemic change, community is going to create the change that the world needs right now.

Collective impact is front of mind as the issues of our time expand and can seem insurmountable and quite paralysing. People as well as businesses feel that this is too difficult or too challenging. But as in life, where there is a will there’s a way. I focus on finding the adaptable and scalable solutions on how to approach this, because it is a marathon and not a sprint.

The most important step is to just try. Be part of the

Lisa Hogg

Sustainability | Strategy | Storytelling Consultant formerly of TOMS.

change, rather than watching other people do it.

But don’t be fooled. Your product still needs to be fire!

A purpose-led strategy and communications will not push conversion, it will start the conversation, get

The magic is found under the skin of people’s

people through the door, be it online or offline.

- not consumers’ - needs, aspirations and dreams.

But ultimately the quality, price and power of your

The world is an intense combination of pragmatism

product still needs to win them over.

and dreaming right now; the practical to make sure we save our planet and the people on it; the dreams to

For those whose purpose is baked into the usability

make sure we don’t lose our minds while doing that.

of their product - how it serves humans in a deep and meaningful way - this needs to be balanced with the

There are a myriad of ways for this to take shape in

storytelling. It’s a yin-yang balance between brand and

your business. The end-game could be for those who

product - both need to pull their weight. We should all

buy your product, or those who are touched by the

ultimately aim for integrity, meaning and action.

environmental or social impact your business creates

Walk the whole walk, not just talk the emotional talk.

- or in the best cases both.

If ever there has been a win-win opportunity it is now: I have worked for brands who have had people

impact and commerce working hand-in-hand.

at the heart of them in a variety of ways and depths.

The concern would be the rise of short term wins and

From Converse who saw their role as being a blank

growth targets: for true change constant double-digit

canvas for self expression; a democratic brand who

growth needs to be reconsidered, ethics need to be

embraced everyone... To VANS, who identify as a

updated and followed through.

people company that sells shoes - always grounding themselves in the communities they represent...

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“How do we design products for people and profit? The answer of course is with purpose. Right.

Wait. What?”

Matt Hart Founder of BIF Creator of ConeTM for Brand and Fan Innovation.

The context for the question was purpose - and in that context, we were exploring how we can design products for people and profit?

The 101 of answers starts with purpose - whether that be a noble reason for being, an enlightening north star, or some world-changing goal, etc. If nothing else, all should start with a motivating reason to even bother.

To truly deliver on that purpose you’re going to need amongst many other things - three fundamentals:

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Purpose is the line of sight from you, through your products and into the hearts, minds and hands of your intended people - at which point there’s some kind of engagement and transaction from which you both profit; them in terms of the benefits received and you in terms of the value returned.

All of this, of course, could be done without purpose - design products, pile ‘em high, sell‘em cheap to people and you may profit.

The thought is that in today’s burgeoning purpose economy, those without expressed purpose - without a bigger more meaningful reason for being and doing - that people can’t find, or check, or feel or indeed receive as intangible benefits via their engagement with you - well, they’ll be found out, deemed as blunt ‘unconsciousof-global-problems-and-enterprises-newresponsibilities-for-them’ operators and left behind as all resolves to ‘purpose’.

My word-play take on why purposeful products will connect with people is because they’re designed such that everyone and everything profits - you, your people, your audience, and everything else on our blue planet. Get this right and for sure you’ll profit. You’ll tell stories around it. People will share those stories around it. More people will engage with you because of it. The planet and all other living things on it will send you (via the quantum) thanks for it. My take is if you get all of that right you’ll actually start having fans. And fans are much better and more valuable than customers.

1. some ‘products’ (things to sell, trade, exchange, etc) 2. an audience (your customers but yes also your co-workers) 3. and then eventually some profits to keep the whole thing going

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“This generation, in this room...Our responsibility is now to give solutions to the generations ahead.”

James Scroggs Chairman of One Question Being a middle-aged man of fashion, I went to see top pop combo The 1975 at the O2 Arena a few weeks back. It was a remarkable show. 20,000 teens dutifully and hysterically screamed for two hours at charismatic frontman Matt Healy - vessel for much cultural head scratching.

“So we can no longer change the world by playing by the rules.

Because the rules have to be changed, Everything needs to change and it has to star to today. So everyone out there, it is now time for civil disobedience.

It is the time to rebel” With a deafening pause before the band struck up again singing ‘I’d love it if we made it’’ there was a pregnant

Just before the encore, the band left the stage and Matt

beat: 20,000 kids representing a generation awaiting

remained on stage to ask everyone to shut up and watch the

their instructions. As if to say ‘Okay, we are in...

now-famous six minute speech from Greta Thunberg.

Now what are we supposed to do?’

The house fell pin-drop silent. Greta ended:

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“Digital innovation should be an ongoing process rooted in design thinking”.

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Genuine purpose is about having the right focus and clarity in where you put that profit to achieve objectives where you have stated purpose. With the right core values and implementing the right choices profit can be utilised in a new way. It could be investing back into employees or developing new ways to engage the workforce in a fair and honest manner. If you are a product led business, you can look to improve the quality of the products you make to improve the impact on customers or the environment. Digital products and tools can help make some of these objectives a reality in an engaging way for both staff and customers.

However, to drive the company purpose, crucially all-purpose led businesses must have a strong CEO at the helm who can articulate why the company’s

Carl Uminski COO Somo Global

purpose is what it is. Importantly the CEO and senior team must be able to communicate this to all whether that be shareholders, staff, partners they work with or indeed the media. It’s therefore a total misconception

Digitalisation and access to digital has changed how consumers think and how they expect brands to behave. Our evening in collaboration with One Question was designed to challenge the way we think about our everyday actions.

that purpose led businesses are only for new start-ups because with the right leadership and core values in place it can work for legacy and heritage brands too.

Nevertheless, true purpose is about having the right focus and clarity in where you put that profit to achieve

At Somo we design innovative digital products every day

the purpose led objectives. With the right core values

and have to balance the imperative of commercial and

and implementing choices profit can be utilised in a

profitability whilst ensuring the end-user is at the heart

new way. It could be investing back into employees or

of how we create those products.

developing new ways to engage the workforce in a fair and honest manner. If you are a product led business,

It’s however fair to say that the growth of B Corporations

you can look to improve the quality of the products

‘doing well by being good’ highlights very clearly the rise

you make to improve the impact on customers or the

of purpose-driven business models. Some pessimistic

environment. Digital products and tools can help make

business leaders may feel that purpose can cannibalise

some of these objectives a reality in an engaging way

profit elements of a company however we believe

for both staff and customers.

that the two can go hand-in-hand and work very seamlessly together.

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However, to drive the company purpose, crucially all-purpose led businesses must have a strong CEO at the helm who can articulate why the company’s purpose is what it is. Importantly the CEO and senior team must be able to communicate this to all whether that be shareholders, staff, partners they work with or indeed the media. It’s therefore a total misconception that purpose led businesses are only for new start-ups because with the right leadership and core values in place it can work for legacy and heritage brands too.

Nevertheless, true purpose is about having the right focus and clarity in where you put that profit to achieve the purpose led objectives. With the right core values and implementing choices profit can be utilised in a new way. It could be investing back into employees or developing new ways to engage the workforce in a fair and honest manner. If you are a product led business, you can look to improve the quality of the products you make to improve the impact on customers or the environment. Digital products and tools can help make some of these objectives a reality in an engaging way

“The winners in the future will be those businesses fuelled by technology, innovation and purpose providing an environment of creativity and innovation for their employees.”

for both staff and customers.

Finally, it’s important that as a brand you have stakeholders who share the purpose you’ve defined.

Carl Uminski Somo Global

By challenging the traditional ways of doing business it can really help to bring to life how the purpose is ingrained in its purpose. For example, Finisterre is focussed on suitability and the sea with it being a core part of why it exists. Their outdoor apparel is made from part-recycled fishing nets and office carpet

Innovation can often be mistaken for speed. Speed isn’t always the right approach.

tiles served to customers in marine biodegradable packaging. In just two weeks they secured £4million to help with expansion from a crowdfunding project.

This just demonstrates that with core objectives at the heart of the brand it gives stakeholders a real alignment in its purpose.

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The answer?

Action. Always.

It starts with you.

Standing up for something.

Now.

The world‘s biggest companies won‘t divest their fossil fuel commitments unless we do something about it. That might mean creating a new type of company, as Tods has done. That might mean investing in grass-roots community endeavours for social good, as UEFA has done. And, it may also mean creating personally transformational products, as Ben has done through Glaze. Tortoise is inverting disruption - taking things back to a more reasoned, level-headed approach to reporting. That, in itself, is standing against where digital media, for most publishers and advertisers, is heading.

The takeaway for many of us was to get outside of our bubble - and to re-engage with the challenges, threats, and opportunities of the world. Profit starts in one place, every time.

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