Design to Handle the Exception – Not for the Exception

While going through security at the airport the other day, I was reminded of an important design and innovation concept.

Things were going smoothly until a bag was flagged during the X-ray procedure. The luggage was held on the conveyor until an authority could conduct a manual inspection. At the same time, a similar problem arose on another line. Everything ground to a complete halt. Although it took only 5 minutes to get the lines moving again, during rush hour that was all it took for the queues to grow out of control.

Many years back, a supervisor shared with me a design principle I still use 25 years later: design to handle the exception, not for the exception. That is, don’t design your business model around the most complicated case. Instead, design it so that the exceptions can be addressed, even if their efficiency is impacted.

When designers try to make one process cover every situation, no matter how rare or unusual, the result is usually greatly increased complexity and diminishing returns for everyone.

Using my supervisor’s mantra, this airport dilemma differently would be solved by pulling off the bags that need manual inspections (the exceptions) into a separate area. Even if those bags would have to wait longer to be processed, they wouldn’t impact the bulk of the customers and would significantly speed up average wait times. Those travelers with the exception bags may be more inconvenienced than they are today, but perhaps knowing that you will be significantly slowed may encourage people to be more careful with what they put in their luggage.

How can this be applied elsewhere?

A major life insurance company found that its claims handling was slow and expensive. What they discovered was that every claim was being processed using the same rigorous procedures. But all claims did not need to be treated equally.

To improve efficiency, they scaled down the process and segmented claims according to their level of complexity. A simple version was used for straightforward cases. More robust versions were used for more complicated cases, while the full process was reserved only for the most difficult and time-consuming cases.  The most skilled and expensive specialists would resolve these complex claims while generalists handled the easiest ones.

What they found was that 60 percent of their cases could be handled using the simplest process with the least expensive resources. Thirty percent received the mid-level procedure, while only 10 percent needed the original full treatment. The result? Processing costs were reduced by 40 percent while average processing time was greatly reduced. Service levels also increased.

So how does this apply to your business?

Look at your customers. Which customers account for the bulk of your business? Which customers account for the bulk of your profits? Design your business to meet their needs. If you have other, less frequent needs, find a way of handling them outside of your standard processes, even if the cost is greater (to you or the customer) and the convenience is lower.

If you run a restaurant and 80 percent of your customers order the same five menu items, make sure you can inexpensively and efficiently cook those meals. For patrons who want items less frequently ordered, maybe they can pay a premium or wait a bit longer. Additionally, instead of keeping perishable ingredients in house for those rarely ordered meals, maybe you can find a nearby store where you can buy them just-in-time when needed.

If you run a call center, handle the most frequent calls efficiently without hand-off. Have generalists address the bulk of your calls. For the more complicated and less frequent issues, forward the call to a specialist. Even if the customer has to wait or be called back, it will significantly improve your overall call processing time and costs.

If you run a supermarket and someone purchases alcohol, they need to be approved by someone who is 21. If the clerk is not of age and needs to call for backup, the lines will be slowed for all.  Instead, you could require anyone buying alcohol to use special lines manned with cashiers who are all 21 or over, since they’re the exception.

Figure out what happens most frequently. Design your business for those scenarios. Identify the less frequent occurrences and make sure you can handle them, recognizing that an increase in time and/or cost for these exceptions may be necessary.

Have you inadvertently fallen into a “one-size-fits-all” mentality? Instead, consider applying the “design to handle the exception, not for the exception” philosophy and keep your business running smoothly.

Read more by Stephen here.

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ABOUT THE AUTHOR

Stephen Shapiro

Stephen Shapiro

Stephen Shapiro is the author of five books including “Best Practices Are Stupid” and “Personality Poker” (both published by Penguin). He is also a popular innovation speaker and business advisor.

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10 Principles for Good Design

Design is normally thought of as applying to things – which it does. But design also applies to systems, structures, and communication tools. Dieter Rams, one of the most influential designers of the last 40 years, has developed 10 principles for good design. Though they are illustrated with objects here, the principles apply to what you as a leader “design” every day.

Z > Graphics > 10 principles poster > Illustrations High Res
TP 1 radio/phono combination, 1959, by Dieter Rams for Braun

Good design is innovative

The possibilities for innovation are not, by any means, exhausted. Technological development is always offering new opportunities for innovative design. But innovative design always develops in tandem with innovative technology, and can never be an end in itself.

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MPZ 21 multipress citrus juicer, 1972, by Dieter Rams and Jürgen Greubel for Braun

Good design makes a product useful

A product is bought to be used. It has to satisfy certain criteria, not only functional, but also psychological and aesthetic. Good design emphasises the usefulness of a product whilst disregarding anything that could possibly detract from it.

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RT 20 tischsuper radio, 1961, by Dieter Rams for Braun

Good design is aesthetic

The aesthetic quality of a product is integral to its usefulness because products we use every day affect our person and our well-being. But only well-executed objects can be beautiful.

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T 1000 world receiver, 1963, by Dieter Rams for Braun

Good design makes a product understandable

It clarifies the product’s structure. Better still, it can make the product talk. At best, it is self-explanatory.

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Cylindric T 2 lighter, 1968, by Dieter Rams for Braun

Good design is unobtrusive

Products fulfilling a purpose are like tools. They are neither decorative objects nor works of art. Their design should therefore be both neutral and restrained, to leave room for the user’s self-expression.

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L 450 flat loudspeaker, TG 60 reel-to-reel tape recorder and TS 45 control unit, 1962-64, by Dieter Rams for Braun

Good design is honest

It does not make a product more innovative, powerful or valuable than it really is. It does not attempt to manipulate the consumer with promises that cannot be kept.

620 chair for 10 principles
620 Chair Programme, 1962, by Dieter Rams for Vitsœ

Good design is long-lasting

It avoids being fashionable and therefore never appears antiquated. Unlike fashionable design, it lasts many years – even in today’s throwaway society.

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ET 66 calculator, 1987, by Dietrich Lubs for Braun

Good design is thorough down to the last detail

Nothing must be arbitrary or left to chance. Care and accuracy in the design process show respect towards the user.

10 principles > 606
606 Universal Shelving System, 1960, by Dieter Rams for Vitsœ

Good design is environmentally-friendly

Design makes an important contribution to the preservation of the environment. It conserves resources and minimises physical and visual pollution throughout the lifecycle of the product.

10 principles L 2
L 2 speaker, 1958, by Dieter Rams for Braun

Good design is as little design as possible

Less, but better – because it concentrates on the essential aspects, and the products are not burdened with non-essentials.

Back to purity, back to simplicity.

Learn more about Dieter Rams here.
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Dieter Rams

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Recent Comments
comment_post_ID); ?> Thank you for this information. I'm going to use this article to improve my work with the Lord.
 
— Abel Singbeh
 
comment_post_ID); ?> Thank you Ed for sharing your insights into the Church Growth Movement. I have my reservations with Church Growth models because it has done more damage than good in the Body of Christ. Over the years, western churches are more focused on results, formulas and processes with little or no emphasis on membership and church discipline. Pastors and vocational leaders are burnt out because they're overworked. I do believe that the Church Growth model is a catalyst to two destructive groups: The New Apostolic Reformation and the Emerging Church. Both groups overlap and have a very loose definition. They're both focus on contemporary worship, expansion of church brand (franchising), and mobilizing volunteering members as 'leaders' to grow their ministry. Little focus on biblical study, apologetics and genuine missional work with no agenda besides preaching of the gospel.
 
— Dave
 
comment_post_ID); ?> Thank you for sharing such a good article. It is a great lesson I learned from this article. I am one of the leaders in Emmanuel united church of Ethiopia (A denomination with more-than 780 local churches through out the country). I am preparing a presentation on succession planning for local church leaders. It will help me for preparation If you send me more resources and recommend me books to read on the topic. I hope we may collaborate in advancing leadership capacity of our church. God Bless You and Your Ministry.
 
— Argaw Alemu
 

Clarity Process

Three effective ways to start moving toward clarity right now.