Driving Design Forward

By Laurenz Schaffer

What happens when you take California car culture, mash it up with German precision engineering, and let the result loose on everything from yachts to mobile telephones? You get the most innovative company in the world. Laurenz Schaffer, President of DesignworksUSA, lifts the hood on a creativity engine.

“I think big ideas must be seen, and they must be put in the right spot”
-Laurenz Schaffer

The logo is certainly ubiquitous enough. Look around the crowded streets, driveways and parking lots of any city in the world and there it will be, a small circle divided into blue and white quarters, encased by a black ring bearing the letters BMW – a symbol of engineering superiority that is recognized, celebrated and lusted after by millions of people around the world. The brand has become synonymous with automotive excellence, its cars a byword for quality and great design. But peel back the layers of today’s urban landscape and the company’s influence extends even further. Because from marinas to airports, hospitals to the home, BMW is increasingly redefining the way products with a host of uses and in a variety of different industries are designed.

The catalyst for this expansion was the 1995 purchase of a small but influential creative studio located in Malibu, California founded in 1972 by legendary designer Charles W. Pelly. DesignworksUSA had already built up a significant reputation for innovation amongst engineering firms as diverse as Polaris, Hughes, Nokia and Compaq, and having experienced the quality of its designs firsthand (initially via the studio's pioneering work on the BMW 850 seat in 1986, but also through a series of subsequent collaborations), BMW was quick to acquire the firm's deep well of creative expertise when the opportunity arose.

The acquisition enabled the car giant to tap DesignworksUSA's unparalleled understanding of consumers and the world of design that surrounds them, and explore new opportunities outside of its traditional automotive background.

Earlier this year, in a reflection of this subtle shift in emphasis from being a company that merely designs cars to one that wants to be thought of as a design pioneer across multiple sectors, BMW changed its advertising tag line from "the ultimate driving machine" - one of the most successful marketing slogans ever - to "a company of ideas".

Since December 2009, President Laurenz Schaffer has led strategy and operations for DesignworksUSA, which incorporates studios in Los Angeles, Munich, and Singapore. He believes that with global resources and clients across a spectrum of forward-thinking industries, the studio is able to leverage the lateral transfer of ideas across multiple verticals. "Challenging the status quo by creating new brand and product experiences that deliver better solutions for a changing world is what drives innovation at DesignworksUSA," he explains. Indeed, the firm's ability to innovate across so many different industries is remarkable. The firm's culture brings together the vibrant interaction of a creative studio atmosphere with the quality and precision that distinguishes BMW. It's an energetic environment that fosters creativity, artisanship, responsibility, collaboration and inventiveness, both for individual designers and design teams - as evidenced by the large plaque on the wall of the studio bearing the legend, "Great projects, great work, great fun".

The firm certainly encourages its staff to think creatively, and it's a strategy that seems to be paying off: the studio was recently honored as the Most Innovative Company in Design by Fast Company magazine, and has won a host of awards for its projects. So what's the secret? "We have a set of values that are very much based around addressing the individual spirit of our employees," he explains. "One is creating a collaborative culture, another is that we cherish creative human capital - the real asset of the company, obviously, is not materials or hardware, but our creative people. Our true differentiator is cross-fertilization, which is basically a belief that working across different disciplines is what drives good ideas. And then, of course, as we move forward, we want to be a sustainable company in everything we do."

Schaffer believes that the diversity of projects the company is involved in encourages people to think outside of the box. "It generates a certain excitement - one day you are working on an airplane interior, the next day on a coffeemaker and the next on a car," he says. "I think that diversity really keeps up the spirit and maintains the fun aspect of work. There's a lot of change in terms of the project landscape that every designer here experiences, working across different industries, across different clients. As a designer, you always have a very strong motive to innovate and to work towards the next level. If you can do that across different disciplines, across different industries, this is probably the driving aspect there.

"Okay, there's a product design department, there's an automotive design department, there's a transportation design department. However, while our people might have a particular department they call home, they need to collaborate and work on diverse different projects. A transportation designer needs to work on product designs as well, and vice versa."

Finding the right fit

Fundamental to the firm's success is its deep belief that no problem has a single solution; there needs to be what Schaffer calls "a certain bandwidth of options". He feels such an approach has been invaluable in an economic climate that has forced firms to be better at measuring the value of everything they do. "This is a good portion of our process: that we create multiple solutions, multiple options that our clients can choose from. We also back up different design solutions with the proper rationale as to their impact on a business case, strategy or plan. There is always target-setting, but the different design options often achieve the target in very different ways."

Making the right decision on which of those design options is the right fit always starts with a measurable outcome - either the volume turnover that the client wants to achieve with a new product, or the revenue increase, or an increase in brand value. "The way that we make decisions on what is wrong and right is always based on criteria, first and foremost - and these need to be set not on the fly but at the beginning of the project, certainly in terms of any fundamental decisions around taking a particular design direction versus another," says Schaffer. "This decision needs to be evaluated by criteria that were set in the very beginning; not by us, but by our clients. We need to understand why we are making a decision at all and what the different aspects of that are."

An additional, critical aspect is how well a design solution fits consumer needs. "We put designs in front of customers and ask them whether it fits in terms of either their aesthetic requirements or their functional requirements, whatever those might be," explains Schaffer, adding that successful design is rarely an achievement of just one area working alone. "It's really a collaborative aspect, where design speaks to a marketing goal, and where a marketing goal speaks to a business goal and a strategy in general.

"Designers certainly need their window of freedom where they're not disturbed, where they're not influenced, and where they can play with their understanding of the parameters and create a superb design," he continues. "But then, of course, we also want to do intense workshops with our clients or hold decision-making meetings, or ask the customers that ultimately will buy the product certain questions. So, we're involving different parties, different people, at certain points in time."

Schaffer maintains that managing creativity and innovation is all about people management, with a good awareness of the make-up of each project team - first of all from a hiring/selection standpoint, and then from a development standpoint - being essential. "Selecting the right teams is key," he says. "There are personalities that need to click, people need to brainstorm, to build on each other's ideas, to basically push boundaries in teams. Managing that process is a very important aspect."

Keeping people grounded in reality is also an important element: designing for the realities of the world, as Schaffer calls it. "The only way to do this is to send them out in the world," he laughs. "We make them understand what consumers really want and need. There are research techniques to do that, ethnographic research for example, simple observation. And there is, obviously, also information that our designers are utilizing, data around target groups, customer mindsets, values, and so on, and this all needs to be understood. So, the transformation process of all of that information into a creative idea and the result is the essential part of it, but it's not that this is only based on individual imagination. It's really about understanding the premises and the framework before you start to create an idea."

In the end, it all comes down to having the right processes in place to manage the development of a particular idea. "The design process itself has a couple of aspects around fostering innovation. Many of our projects have a very deep strategy phase and a research phase where we create the right understanding of the framework - basically, the knowledge fundaments, either when it comes to trends, technologies, demographics, all sorts of areas that need to be known as a starting point for new ideas. And then, within the consequent project, there are a couple of milestones where we make sure that the innovation level is properly achieved."

Ideas for living

One of the firm's most recognizable innovations is the pioneering work it did on BMW's GINA Light Visionary car concept, which showcases the direction that BMW designs may take and the new materials and technologies that it plans to adopt in the future. The GINA Light Visionary has an almost seamless outer skin, a flexible textile cover that stretches across a moveable substructure. Individual functions are only revealed if and when they are needed. As such, the car can change its shape as many times as the person behind the wheel decides to do so. Fancy a rear spoiler? It's yours at the flick of a switch. Want a low-slung skirt? You got it. The headlights are revealed when the fabric moves apart, and the engine is accessed when the bonnet seemingly splits to reveal its innards. It's a revolutionary concept that has petrol-heads and design aficionados alike purring.

"I think big ideas must be seen, and they must be put in the right spot," says Schaffer. "It needs a management mandate so that these ideas are picked up, and a vision that has been formulated to develop the idea to a greater extent. This was exactly the case with this car concept, where the original idea was more about moving structures with a construction principle around bones and skin, very much like a body part, for example. And that was then transferred to the area of car design, where the idea of replacing sheet metal with fabrics and replacing rigid structures with something that can move to provide new functions and new aerodynamics was really paradigm shifting."

In the case of the GINA Light Visionary Model, BMW DesignworksUSA is not just interested in answering the question of how the car of the future will look, but primarily wishes to explore the creative freedom it has to offer. All ideas that the GINA Light Visionary Model presents are therefore derived from the needs and demands of customers concerning the aesthetic and functional characteristics of the car and their desire to express individuality and lifestyle. "I think understanding the future is something that all of our projects somehow incorporate," says Schaffer.

Together with the BMW internal design department, the three DesignworksUSA studios participate in an internally competitive process for the design of new BMW Group products, and are credited with a number of successful projects, including the interior of the 2009 BMW Z4 Roadster and the trendsetting X5 sports utility vehicle. External clients include Boeing Business Jets, HEAD, Hewlett Packard, Microsoft, Saeco and Sony. For Bavaria Yachts, the firm created the Cruiser 55, which redefined the sailing experience for the renowned shipyard, as well as the iconic Deep Blue 46, which offers the ideal combination of space and form. The Landscape Forms Metro40 collection, a range of essential furnishing elements for urban transit cores, brings comfort and dynamic design to city streets. The Legacy 500 for Embraer, the world-leading jet manufacturer, exudes a meticulous eye for detail with elegant forms rendered with premium fabrications. And its range of headphones for Sennheiser offer an exceptional audio experience for a range of applications, including water-immersible sport variants as well as high-end options crafted in aluminum.

"Some of these projects serve as internal benchmarks," explains Schaffer. "They are used to help us understand how the success came about: why someone came up with the idea at all in the first place, and what the path was to a fully developed product. It is about how the idea was developed, and what the process was behind it. This is something that we can then either try to replicate, or adapt to another type of project with different goals."

Of course, innovation itself takes many forms - from brand new, game-changing innovation to more subtle innovation that builds upon and refines existing ideas. At BMW DesignworksUSA, Schaffer and his team are fascinated by both. "It's a matter of the project specifics," he enthuses. "Not all of our clients want us to innovate completely, while there are a couple of projects where the clear goal is to make the next leap ahead, and if that is the case then we try to understand what the possible solutions are to do that in a design manner. So it's really a matter of the client, the project type and the individual requirements of the company. We really want to understand every single project in and of itself and what need it serves and why we need to create individual solutions for that project, versus another project that has very different goals."

Building the future

Diversity of thought and perspective is critical to a company such as Schaffer's that caters to global clients operating in hugely different cultural marketplaces. "I think having different inputs and viewpoints on what is desirable, or where a design fits in to a specific culture or a behavioral need, is one of our strengths," he says. "Obviously, if you go to Asia then there are different preferences than in Europe and in the US, and this is what we want to understand." The design teams at BMW DesignworksUSA are incredibly diverse, with 24 different nationalities represented in a company of just 130 people. "This definitely helps us to understand the different contexts that will be transported into our design solutions."

It's a close-knit, team-oriented environment - a culture that Schaffer is keen to nurture. "In our world, it's not so much about me; it's very much about us. This is a culture that lives off a number of people, a culture of teams that need to work together." As a trained designer himself as opposed to just a businessman, Schaffer feels it's easier for him to motivate his staff and connect with them on a creative level; there is mutual professional respect there. "You always feel connected to the profession deeply, and it's very enjoyable to watch the teams design and to take part in the process and to see how things evolve," he admits. "I'm a designer at heart. However, I understand that, due to my assignment, I have a different task now. My principles are challenging people while supporting them and providing feedback."

He's clearly doing something right: as the awards roll in, so does the work. Schaffer believes such client partnerships succeed because they are grounded in collaboration. "We work with our clients to craft strong, enduring brands, helping their businesses thrive where it counts - in the market," he says. "Our future is very much about understanding new and different markets. We're also looking into new services. So, our current core competency is about design and design consulting. As we move forward, we want to look into other areas such as branding a little better, the area of research and strategy is something that is certainly growing with that, and that will ultimately create new products that are future-oriented, and that satisfy customers."

What will your product landscape look like in five years' time? And how will your product prosper best in that landscape? These are the type of questions Schaffer and his team are committed to answering. Of course, even when you're designing the future, you can't get everything right; sometimes you have to watch others take the applause. So what does it feel like when another firm delivers a game-changing product or a revolutionary design? "It feels good," beams Schaffer. "Every innovative idea is good, even if it's competition. And it also serves as a reference point, of course. As we want to understand our internal successes, we also want to understand the competitive successes and see what we can do about it in regards to our further development. So, it's important not only that we innovate, but that the world around us does as well." Amen to that.

Culture club

Laurenz Schaffer's top tips for creating a more collaborative culture.

You need company vision. "Innovation needs to be embedded in a vision, in a strategy, and that's a top-down thing, certainly. If there is no vision for innovation and if that is not embedded in the company strategy, then there is no operational means to do something about it."

Avoid silos of interest. "These can be found in rigid structures with a departmental orientation, and is something that is very counterproductive in our experience. We have installed cross-functions that have the assignment to foster greater collaboration across silos, and these are important elements for us."

Have passion for what you do. "This is probably the most important element. Everything that's new and that shapes the future of the world around us; this is essentially what we are about. We're really good at understanding what the future can look like and why, and I think that keeps us spiritually healthy."

Education is a key aspect. "We collaborate with academic, technical and artistic institutions to spur exciting exchanges of design, technology and business knowledge. In the process, both sides gain new technical opportunities, intellectual horizons and artistic insights - and our clients benefit as a result."

A day in the life

Why Laurenz Schaffer's working day

You're the president of a collaborative design studio headquartered in the US, with links to a European parent company and offices in Asia, working roughly 50 percent for BMW Group and 50 percent for other clients. I'm guessing that's a 24-hour working day.

It is a 24-hour day. If you look at the time zones, then usually when we start it's late afternoon in Germany, and the middle of the night in Asia. But a lot of the projects that we are doing are across all three studios. Especially in the larger programs, input from different cultural areas is needed, different viewpoints are required, so we just hand over when our day ends. Whenever we finish our working day, the other two studios continue. So, it's really a 24/7 workday.

What kind of communication technologies or processes do you have in place to ensure that smooth handover?

Well, classic things, really. There are web meetings that we do, there's the FTP service, there are certain tools in the design area that allow people to collaborate, to create quick snapshots of status that can be then discussed in a different environment. But we use standard tools. It's not so sophisticated, actually. It's more about how we use the tools and how you understand collaboration in general.

With a 24-hour working day, how do you turn that off? How do you say, "I'm not taking that call anymore?"

I switch off my Blackberry, that's the first thing. And then I try to have a program for myself, a point in time where I say work is over, and I create my other life; my life with my family, for example. We do something together, and we have a plan, what we want to do, what we want to enjoy together. And with that, there is a clear understanding on my side that work stops at exactly that point in time.

And how do you make time within work itself?

First of all, delegation is important. There are more really good people in the company than just me. We have experts that can make decisions in very clear areas, and they take responsibility for those areas. They are made accountable for the decisions as well, and they know what they are doing. My responsibility, overall, is steering the organization. Answering fundamental questions about where we are heading with the company is one area that I'm steering; managing conflicts of interest is another. I'm also heavily involved in making important decisions in terms of client collaboration. There are important milestones in a project, but I don't need to make decisions on everything; it's really about having a team that is capable of working together and making decisions themselves.

So, what's left on your to-do list? Is there anything that Laurenz Schaffer would really like to achieve in life?

Shaping the future.

It's that simple?

It's that simple. The company is working pretty well. The teams are superb. We're on a growth path. But shaping that in accordance to a more major strategy is one of my future achievements.