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1. What is the
Value of
Jeneanne Rae
CEO, Motiv Strategies
McDonough School of Business
February 11, 2015
?

2. Confidential report provided courtesy of Peer Insight. Please do not copy or distribute.
SPECIALREPORT GET CREATIVE!
MEET THE
INNOVATION GURUSEpiphanies for hire: When it comes to out-of-the-box thinking,
these are the Magnificent Seven
BUSINESSWEEK
SPECIAL REPORT
THE COACH
Jeneanne Rae
Peer Insight,
Alexandria, Va.
J
ENEANNE RAE IS
the doyenne of service
innovation. With her
Harvard University MBA
and seven years at IDEO, the
Palo Alto (Calif.) design-strategy
powerhouse, Rae is carving out
a niche in showing service
companies how to innovate.
She co-founded Peer Insight
LLC, a service innovation con-
sortium, in which members pay
a fee for Rae to run innovation
audits. Using Peer Insight as a
confidential intermediary (it
alone knows the origin of
specific information), members then share in the successes
and failures of the group and benchmark their progress.
With Rae acting as an innovation coach, the goal is to help
service companies understand how to shape their con-
sumers’ experiences. She uses design principles to rethink
company strategies. Peer Insight so far has signed up seven
companies as charter members – Diebold, Hewlett-Packard,
MasterCard International, Siebel Systems, Siemens,
Starwood Hotels & Resorts,
and York International. Peer
Insight has also done innova-
tion research for 37 other
companies, from FedEx to
T-Mobile.
According to Rae, there is
little innovation in services.
Service companies have good
brand and marketing people,
she says, but there’s no one in
charge of innovation. “They’re
like tech companies,” adds
Rae. “They come up with
new things and just launch
them at consumers. They
don’t get that it’s all about
interacting with customers
first and then giving them
great experiences.” One
exception is Starwood, which
has a Chief Creative Officer.
Rae also serves as an adviser
to Procter & Gamble Co.’s Claudia Kotchka and other inno-
vation leaders. And her course, Developing New Products
and Services, at Georgetown University’s McDonough School
of Business, is hugely popular. Rae, along with most of
these gurus, will be a columnist for BusinessWeek’s online
Innovation & Design portal. There she will discuss the 17
disciplines that can be used as an innovation scorecard for
service companies.
August 1, 2005 | BusinessWeek | 79

3. Design

4. Design is difficult to define

5. Design is"
tricky to measure

6. Design is difficult to
isolate as a function.

7. 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

8. But for those companies that get it…

9. Design pays off
© 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 Ÿ Coca-Cola Ÿ Ford Ÿ Herman-Miller Ÿ IBM Ÿ Intuit Ÿ Newell Rubbermaid Ÿ
Nike Ÿ P&G Ÿ Starbucks Ÿ Starwood Ÿ Steelcase Ÿ Target Ÿ Walt Disney Ÿ Whirlpool

10. 10+ years publicly traded
Scale of design
Investment
Org. Structure
Design Leadership
Senior-level commitment
Design Value Index
Criteria

11. What does all this mean?
Design is recognized"
as a key strategic enabler

12. Great design needs
power & influence
#1

13. #2
Great design requires
great resourcing

14. Great
design
requires a
strong
brand
#3

15. Design is a function
like any other
…But also not.
#4

16. To make design a key strategic enabler:
Power and influence
Great resourcing
Strong brand
Managed as a unique
business function

17. Questions?

18. Thank you
Jeneanne Rae
Founder, Motiv Strategies
jeneanne@motivstrategies.com