I could start with a well written case for why you should pay attention to the power of design thinking and co-creation in sales. Instead, let me start with results, and what those at the top of their game are doing at the most strategic levels of complex sales.
Google, Microsoft, Salesforce, ServiceNow, Kyndryl, Pega, and others have in some form or fashion what I like to call the “Navy Seals” of Design Thinking – a small expert team called upon to run co-creation workshops with strategic customers. Why? Because they know that if they can get in the room with key stakeholders from both sides, design the future together, and demonstrate value, that the engagement will grow exponentially.
One of the hyper-scalers measured and quantified results like this:
1. Time to closure: Average ToC went from 18 months to 4 months which is a 70% reduction.
2. Close rate: The percentage of deals closed went from low teens to 50%.
3. Deal size: The size of the deal, increased 6-7 times when they executed the co-creation process.
Earlier in 2024, the Pega Catalyst team flew to Europe to the headquarters of their telecom client, spent 2 days in a room with executives to envision how to make their fiber network future-ready. They envisioned a singular, cutting-edge platform—flexible, secure, and seamlessly operable across all their global sites.
The 2-day co-creation process included dissecting the challenge, defining the ideal business outcomes, determining barriers to success, exploring various solutions, calculating potential business value, and even building a prototype.
The result? The Telecom committed to two Minimum Viable Products (MVPs) with clear metrics for success, a timeline, and funding. What began as a daunting problem ended with alignment on a path forward and a multi-million dollar, multi-year commitment.
Any co-creation process typically follows these stages:
- Discovery: Gathering information about the current state and defining the core problem.
- Vision: Collaboratively exploring possibilities and future solutions.
- Solution Development: Identifying and selecting a limited number of feasible solutions.
- Business Value: Estimating the value and impact of the proposed solutions, including key performance indicators (KPIs).
- Implementation: Developing a rollout plan that includes clear responsibilities and stakeholder roles.
Each organization has their own version of these stages. As Tom Rourke, VP, Global Leader, Kyndryl Vital, said, “don’t let the method get in the way of the outcome. Start with a mindset and outcomes and then get clear on the process that will get you there.”
Tom was one of the 10 leaders I spoke with in organizations who are doing this (Kyndryl, Pega, IBM, Google, Procore, Microsoft, C1, and ServiceNow). All of them have (or had) a team of people, from 6 people to 4 teams of 14, who are brought in to work with strategic customers and lead a co-creation process. The groups usually have a name; Catalyst, Kyndryl Vital, Inspire Value, Ignite.
These teams are made up of some or all of the following: Innovation Lead, Business Value Analysts, writers, graphic designers, engineers, and communication specialists. The Account Executive is not usually on the team but is in a relationship with the team.
The capabilities critical to have on the team include the ability to:
- Build a proof of concept
- Orchestrate internal and external stakeholders
- Understand and facilitate culture change
- Tell compelling stories and present ideas
- Design and facilitate groups through a series of processes
- Adapt on the fly
- Network internally and externally
- Determine and articulate Business Value
The concept of co-creating with your customer seems like a no-brainer. A customer is more likely to buy if they feel engaged in the solution. Full Stop. So, why are organizations not doing this more with their strategic accounts?
The most surprising comment I heard was “because it is a departure from legacy selling. It’s threatening to those who have been doing it one way for a long time.” Several people also mentioned that Account Executives and sales leaders are risk-averse so it is easier to stick with the path they know than to take another route that may deliver more but will require change.
That is all true, but that’s like saying saving for a house, college, or retirement, is hard, so let’s not do that.
The value of co-creation is undeniable, and the demand from customers increasing. What is less clear is how many organizations will take the plunge to figure out their signature approach, or at a minimum how to embed a co-creative mindset and toolset into every Go-to-Market professional. If this sounds overwhelming, instead of turning the other way, start small with one of your most strategic customers.
Get in a room with your executives and theirs for half a day. Put away your agenda to close a deal, and instead focus all parties on the “what ifs” of the future, the possibilities, the vision for transformation. Enable your customer to share their aspirations and concerns. Map out the possible ways to partner and the potential value. This alone will transform the relationship.
Whatever you do, don’t sell.
I am tremendously grateful to the learned team of experts who offered me their perspectives and experience in co-creation. They included:
- Karen Forbes, SVP, Global GTM, and Solutioning, Kyndryl
- Tom Rourke, Tom Rourke, Vice President, Global Leader, Kyndryl Vital
- David Frumkin, former Sr Partner, Strategic Client Partnerships, IBM, Global Head of Deal Operations, Healthcare & Lifesciences, Google
- David Cronin, Senior Director, Head of UX, Google Geo
- Josh Aranoff, VP, Global Solutions Engineering, Procore
- Lafayette Howell, Executive Value Strategist, ServiceNow
- Baruch Sachs, VP, Global Client Innovation, Pega
- Daniel Hunter, Director of Customer Experience, Microsoft
- Brian Bradley, Enterprise Architect, C1
- Lisa Lee, Large Deal Strategist, IBM
