My Design Notes

Aarni's personal notes on design

  • Home
  • Contact
    • 0
      25 Mar 2012

      Four strategies for improved client-designer relationships

      • Edit
      • Delete
      • Tags
      • Autopost

      Most designers offer their services through short-term projects, which means that the client-designer relationship is often temporary. What are the other types of designer-client relationships and how are they best managed?

      The relationship quadrants

      Two aspects are important when characterizing client-designer relationships:

      1) The scope of the service

      2) The role of the designer in the client's process

      The scope of the service can be either a project or an ongoing process. In both cases, the role of the designer can be either assistive or participative. In order to compare the two types of scope and the two alternative roles, we can visualize a matrix with four relationship types (see diagram, below).

      Relationshiptypes

      Each type has different goals, opportunities, risks, and competitive strategies associated with it. Here is a short characterization of the four relationship types:

      A) An assistive role in a project – The Project Supplier

      • Driver: Client’s need to get a solution to a single, well defined problem.
      • Duration: Short-term agreements.
      • Designer's goal: To be awarded the supplier’s contract.
      • Competitive factors: Price or service performance.
      • Critical success factor: Price-quality ratio.
      • Designer should know: Decision-makers and their criteria for providers; customers’ needs; ways to improve your own productivity

      A project can be the start of a successful designer-client relationship. However, many clients feel that they have to tender each project, which makes this kind of relationship potentially transitory.

      B) An assistive role in an ongoing process – The Outsourced Process Provider

      • Driver: Client's determination to focus on core business.
      • Duration: Long-term, ongoing service.
      • Designer's goal: To allow the client to focus on their core business.
      • Competitive factors: Provision of cost-effective services.
      • Critical success factor: Integration into the client’s processes.
      • Designer should know: The right service scope and the client’s own cost for providing the same service level.

      It is naturally good business practice for a client to focus on their core business. Therefore, many companies want to outsource processes that they consider complementary. This provides a design company with the opportunity to build a long-lasting relationship with the client. Clients are very cost-conscious in outsourcing deals, so the designer must be able to provide a high-quality service cost-effectively.

      C) A participative role in a project - The Consultant

      • Driver: A strategically important issue that requires a solution.
      • Duration: An ongoing relationship with recurrent projects.
      • Designer’s goal: To create and maintain a trusted relationship.
      • Competitive factors: Strategic thinking; understanding the client-s business.
      • Critical success factor: Ability to improve the client’s competitive position.
      • Designer should know: The client’s strategy.

      The difference between a type-A relationship and a Type-C one is that, in the latter, the designer contributes more directly to the competitiveness of the client. The designer can be, for example, taking part in a new product or process design that improves the client's core business. A designer is a trusted advisor, even though the relationship is formed around projects.

      D) A participative role in a process – The Strategic Partner

      • Driver: New business value that can be derived from working together.
      • Duration: Long-term relationships.
      • Designer’s goal: Shared business goals with the client.
      • Competitive factors: Ability to provide unique value to the client.
      • Critical success factor: Partnership-management competence.
      • Designer should know: Strategic fit with the clients is key; risks related to working together.

      This relationship type is the most mature and the most demanding. It is similar to a joint venture, where the client and designer share a vision and a strategy. They also share the business risk to a certain extent. David Lewis certainly had a strategic relationship with Bang & Olufsen. The work of Lewis’s company played a crucial role in B&O's success.

      Which relationships to pursue?

      All of the four designer-client relationship types have their pros and cons. Some designers are perfectly happy taking on projects that have a limited life span. Some strive to build long-term relationships. Whichever your strategy, it’s advisable not to rely on one single relationship model. By developing a range of models, your company increases its chances of success in a business world where uncertainty has become the norm.

       

      • views
      • Tweet
    • 0
      19 Jul 2010

      Five ways to boost your design business profitability

      • Edit
      • Delete
      • Tags
      • Autopost

      1. Sell solutions instead of hours

      If you always wait until a client seeks a solution, you will be ultimately competing with price. Instead, find out what creates value in the client’s business and what is holding them back. Devise a solution that solves the same problem for many potential clients. Make your solution easy to understand, buy, and implement. Create a revenue logic that is not based on charging by the hour.

      2. Build special expertise

      Having expertise in a specific industry, like e.g. in sports, biofuels, or waste management, can be more profitable than being a generalist. A very narrow area of expertise often requires a global market, which is both an opportunity and a challenge.

      3. Offer the same service to a group of clients

      Serving a group of clients at the same time offers many benefits. The cost of marketing and service per client becomes lower. Having several clients with similar needs often generates new leads as the clients get to know you. You can either form a group by yourself or offer services to existing groups, like partnerships, chains, or associations.

      4. Systematize your work

      Being a creative designer does not imply that you could not systematize your marketing, sales, projects, relationship management, and so on. Plan your processes and use the net as business infrastructure. Use partnerships and outsourcing whenever it is feasible and does not make the processes too hard to manage.

      5. Get the right clients

      Surprisingly many design firms hold on to client relationships that will never become profitable. Determine your criteria for a profitable client relationship. Evaluate how your existing clients meet the criteria. Define your strategy with clients who do not comply: either give them up or plan how to develop a win-win relationship with them.

      Balloons
      Photo: iStockphoto 

       

      • views
      • Tweet
    • Featured in Alltop
    • Search

    • Sites I Like

      • My company's main site
      • Thinking Portfolio
      • My other blog
    • Tags

      • architecture
      • methods
      • marketing
      • art
      • books
      • creativity
      • design thinking
      • innovation
      • Finland
      • history
      • ideas
      • photos
      • Aarni
      • business
      • music
      • service design
      • tools
      • Finnish
      • branding
      • construction
      • publishing
      • service
      • software
      • customization
      • furniture
      • identity
      • interface
      • ipad
      • management
      • nature
      • presentations
      • production
      • prototyping
      • social media
      • technology
      • built environment
      • city
      • companies
      • competitions
      • concepts
      • gadgets
      • graphic design
      • industrial
      • infographics
      • language
      • personalities
      • psychology
      • travel
      • working
      • 3d
      • Alvar Aalto
      • Artek
      • Helsinki
      • IKEA
      • Rome
      • WDC 2012
      • accessory
      • advertising
      • app
      • audio
      • blog
      • consulting
      • education
      • electronics
      • enchantment
      • environment
      • exhibition
      • facilities
      • free resources
      • funding
      • images
      • imaging
      • industrial design
      • influencers
      • inspiration
      • lifestyle
      • logo
      • magazines
      • mathematics
      • mobile
      • package
      • promotion
      • research
      • signs
      • sketching
      • social sharing
      • society
      • style
      • ui
      • video
      • visualization
      • writing
    • Archive

      • 2012 (22)
        • May (2)
        • April (5)
        • March (5)
        • February (9)
        • January (1)
      • 2011 (34)
        • December (1)
        • November (5)
        • October (2)
        • September (1)
        • August (5)
        • July (2)
        • June (1)
        • May (1)
        • April (4)
        • March (5)
        • February (3)
        • January (4)
      • 2010 (62)
        • December (6)
        • November (4)
        • October (4)
        • September (6)
        • August (15)
        • July (19)
        • June (8)
    • Contributors

      Aarni Heiskanen
    • Obox Design
  • My Design Notes

    I'm the founder and CEO of AE Partners. Here are my personal notes on issues related to design.

    47200 Views
  • Get Updates

    Subscribe via RSS
    Twitter