Design Innovation: Capital One's Bold Move with Adaptive Path
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The Acquisition of Adaptive Path
If you have even a slight interest in user experience (UX) design, you’ve likely heard of Adaptive Path. This firm set the benchmark for user-focused design in consultancy, gaining accolades for their strong advocacy of design thinking. As a novice designer, I found their insights invaluable and owe part of my career as a UX designer to their influence.
The announcement that Adaptive Path would cease to exist independently and merge into Capital One's internal design team was unexpected. The surprise stemmed not just from the acquisition but from the identity of the acquirer. "A financial institution, really?" I wondered upon seeing the news. While I recognized their collaborative projects prior to the acquisition, I never anticipated it would culminate in such a merger.
Capital One is a colossal entity. Established and based in Virginia, USA, they employ over 50,000 individuals and provide credit cards along with commercial and consumer banking services. It’s quite an achievement for a design agency to penetrate a financial organization in an industry that has historically viewed design as an afterthought.
"Someone finally emerged who truly understood our vision. A company with a vibrant culture that values our intellectual curiosity and design ethos, wanting us to excel within their organization while also empowering others by sharing our knowledge." — Jesse James Garrett, Co-founder and Chief Creative Officer of Adaptive Path
The Evolution of Design Thinking in Finance
Some industry veterans argue that the acquisition was unsuccessful, claiming that the Adaptive Path we once knew has vanished. Skeptical designers speculated that Capital One would dismiss any idea of user-focused design in favor of a process-oriented approach. However, it's important to note that Adaptive Path had established a fruitful relationship with Capital One before the acquisition, indicating a mutual benefit.
Unlike many other financial service providers, Capital One has demonstrated an openness to design thinking and its potential to enhance customer value. Internally, there was a sense that the company was on the verge of unlocking greater design maturity, and that Adaptive Path could help steer the Capital One culture toward more user-centric decisions.
Understandably, some Adaptive Path team members transitioned out, while others remained to drive change and advocate for design thinking. The success of design is often tied to how effectively a designer or design team can articulate purpose. Thus, design teams continued to promote their vision and made significant progress in collaborating with cross-functional teams. For instance, new recruits now undergo a design thinking crash course during their onboarding.
The establishment of a Chief Design Officer (CDO) was also deemed crucial for design leadership at the executive level. Such influence is vital, as someone adept in both business and user needs can significantly impact the company's strategic direction.
"Not everyone appreciated the additional time spent engaging with customers. Some analysts found it challenging to abandon preconceived solutions that lacked customer insight. Resistance also came from senior VPs, many of whom had endorsed the new human-centered design process but cautioned that 'the right solution to this issue is one that generates revenue.'" — nobl.io Academy
Navigating Challenges in Large Organizations
Drawing from experience, the larger the organization, the more complex it can be to communicate effectively across various teams and stakeholders. An experienced designer at the executive level can bridge these communication gaps, ensuring that all parts of the business remain aligned.
Pro-tip: In large organizations, start small. Collaborate with different teams and focus on creating significant impacts with minimal resources. Achieving small wins boosts confidence and empowers you to advocate for a design-focused approach. Who knows, you might be the next CDO!
Financial service firms can often be slow to innovate, but opportunities for change do exist; you just need to seek them out.
The Political Landscape of Design
One challenge of working as a designer in a large organization with many moving parts is the inherent politics. It’s common for design departments to become overstaffed, leading to inefficiencies where designers spend more time "influencing" and preparing presentations than actually delivering products or designs. The organization often suffers from "shiny object syndrome," prompting re-organizations every six months.
It's crucial to emphasize that this issue arises not from the design team itself, but from the business’s allocation of its resources. In such environments, designers frequently resort to creating elaborate presentations to occupy their time and demonstrate their presence in the organization. This often leads to a culture where popularity contests overshadow genuine design work.
To reiterate the earlier Pro-tip: In large organizations, start small. Build relationships across teams and focus on making impactful changes with limited resources. Small victories can foster the confidence needed to advocate for a design-centered mindset, paving the way for your future as a CDO.
"Always ensure that you can substantiate the business's investment in design; find an elegant way to align the creative aspects with the financial goals." — Inside Design, Invision
The Bigger Picture: Capital One's Strategic Vision
While the acquisition of Adaptive Path wasn’t flawless—no acquisition ever is—it underscores Capital One's foresight regarding the evolving landscape of the banking sector. Customer perceptions of banking are shifting, and competition is intensifying, especially from nimble startups offering innovative financial solutions. While many banks remain stagnant, believing they are too large to fail, Capital One seems to recognize that inaction poses significant risks.
Investing in design not only attracts new customers but also enhances the experience for existing ones.
Good design serves as a competitive advantage, and perhaps Capital One understands that well.
Chris is a Lead UX Designer based in Belfast, Northern Ireland. If you need assistance with a project, feel free to reach out to him at [email protected]. 🧠 💪 Join over 1,200 designers advancing their careers in UX. Each week, receive one actionable tip from the UX Career Track to help you secure a job and grow in UX. Join here for free.