5 things to make design thinking work
Transcript of 5 things to make design thinking work
WHY DESIGN THINKING DOESN’T ALWAYS WORK
IN COMPANIES
Dr Ekaterina Khramkova, Lumiknows, 2015
Based on our experience of implementing design thinking into Russian organizational culture including Beeline, Promsvyazbank,
Intel Russia, Sberbank and many others
WHY DESIGN THINKING DOESN’T ALWAYS WORK
IN COMPANIES
Dr Ekaterina Khramkova, Lumiknows, 2015
Based on our experience of implementing design thinking into Russian organizational culture including Beeline, Promsvyazbank,
Intel Russia, Sberbank and many others
Photo Courtesy of Fabian Oefner
5 THINGS TO MAKE DESIGN THINKING WORK:
Dr Ekaterina Khramkova, Lumiknows, 2015
MINDSET – PROCESS – FOCUS – SKILLS – CULTURE
or
WHO ARE LUMIKNOWS
Lumiknows is a Russia based product development & innovation consultancy specializing on design research to inspire Strategy and Innovation. We are focusing on the Fuzzy Front End of Innovation. Our mission is making sense of ill-defined information, catalyzing change and enlightening organizational knowledge (‘lumi’ – ‘light’ + ‘knows’ - ‘knowledge’).
With a focus on People, Research and Innovation, our aim is to provide deep insights into drivers, lifestyle and mindset of gaining in sophistication Russian customers. Our involvement during the early stages of NPD ensures creating sound business strategies which lead to identifying new product and market opportunities.
We have a unique experience of conducting different sorts of projects aimed at the Russian market for leading global and local brands. Lumiknows were in charge of the first Russian full-scale design research endeavors initiated by headquarters of global brands: Samsung Electronics, Danfoss, Renault, Philips Design, Harris Tweed and many others. Today, we work with both global, and Russian companies: Intel Russia, Beeline, Moscow Metro, Light Technologies, Sberbank, Promsvyazbank.
Since 2009, we have been closely working with trend intelligence centers of Philips Design in Eindhoven and Hong Kong, as well as Samsung divisions on Seoul, Paris and London fulfilling trendwathing projects for ‘health’, ‘houseware appliances’, ‘consumer electronics’, ‘lifestyle’, ‘Russian Premium’ etc.
Having become the pioneer in Russia in the area of design research and trendwatching, by now, we have the largest number of projects in this area and a vast cross-industry insight: consumer electronics, housewares, automotive, furniture, electrical equipment, banking, telecoms, FMCG, educational services and many more.
Executing a Russian part of the global projects, we worked together with such design consultancies as Continuum (Italy), Gravity Tank (USA), toca design (USA), Idea Couture (USA), Harrit and Soerensen (Denmark) and others in France and UK.
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New Product Development | Design Research & Strategy | Service Design | Trendwatching
WWW.DESIGNRESEARCH.RU | WWW.LUMIKNOWS.COM
CROSS-INDUSTRY INSIGHT SINCE 2007
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Dr Ekaterina L Khramkova • Member of the Editorial Board, The
International Journal of Business Anthropology, New York
• Columnist on Design Thinking, Harvard Business Review Russia, Moscow
• Lecturer in Design Research/Design Thinking, British Higher School of Art & Design, Moscow
Ekaterina has a multidisciplinary academic and professional background combining economics, cultural anthropology, and design strategy. In 2007, Ekaterina founded the first-in-Russia design research consultancy Lumiknows, specializing on developing appropriate design strategies and new products / brand offerings for the Russian market. On a regular basis, Ekaterina writes and speaks emphasizing the social, cultural, technological and business dimensions of design. In 2012, Ekaterina has become a featured speaker at Design Management Institute conference in Helsinki to share her experience of conducting design research in the Russian market for global brands with the world design community. In 2013, Ekaterina was requested to mentor "Design Thinking for Business Innovation" online course in Russia for a global Coursera Labs project. In 2014, Ekaterina has become a design mentor of the Intel Global Challenge 'Make It Wearable'. Ekaterina holds a Master’s in Foreign Economics from the Moscow State University named after Lomonosov, a Masters in Design and Branding Strategy from Brunel University, UK, and a PhD in Ethnography and Cultural Anthropology from the Russian Academy of Sciences.
FOUNDING DIRECTOR
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So,
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WHY DESIGN THINKING DOESN’T ALWAYS WORK
IN COMPANIES?
IN 2006 I HAPPENED TO INTERVIEW IDEO IN THEIR LONDON OFFICE FOR MY THESIS AT BRUNEL …and I recall their story of transformation which turned a successful product design agency into one of the leading strategic management consultancies in the world. It was at the turn of 2000s, when they began to introduce the world of business with a new term – ‘design thinking’. Why? The crisis in their native product design industry made them cardinally rethink who they were. When Chinese industrial designers took competencies and clients from American professionals, the only way to survive was to understand what they could do better. Much better.
At Ideo, they told me, it were the most dark times, when they decided to get together in their headquarters in Palo Alto and invite Gary Hamel to share his insights on what was going on. And that his main idea that the key factor for the nearest decades would be uncertainty was completely in tune with their understanding of the emerging business reality.
In other words, we need to admit and accept the fact that we, as businesses, do not actually fully understand our market, our customer, and the future of our industries (despite the tons of predictions) is totally unclear to us. And, thus, we cannot anymore spend months and years to develop a new product to understand in the end it doesn’t work.
And that the winner would be companies who would be able to extremely quickly create hypotheses of new products and services to quickly test them, refine and iterate again and again.
This is how – at least I understood it this way – design thinking was born. So, my definition of ‘design thinking’ is as follows: this is one of the effective methodologies to create hypotheses of unforgettable customer experiences. This is a way of experimenting with new product development through cheap-and-quick prototyping. Full version of the interview
Ekaterina Khramkova, Lumiknows
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If before it was ok to follow market strategy ‘Ready - Aim – Fire’, now, when ambiguity is ruling, it is rather ‘Ready – Fire – Aim’…
Adapted from Niel Gershenfeld, MIT
Founding father of the worldwide Fablabs network
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In other words, its all about experimenting.
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I would even say, it is all about serendipity ;)
Unfortunately,
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‘SERIOUS’ COMPANIES HATE EXPERIMENTING.
Unfortunately,
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USUALLY, THEY HAVE NO TIME & BUDGET ON IT.
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http://www.lawrencehallofscience.org/comsci/
But let’s be honest.
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DESIGN THINKING IS ABOUT EXPERIMENTING
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http://www.lawrencehallofscience.org/comsci/
WHY DESIGN THINKING DOESN’T ALWAYS WORK
IN COMPANIES
This is the underlying reason
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Let’s look what it means
WHAT IS THE MOST COMPLICATED THING IN NEW PRODUCT
DEVELOPMENT?
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(1) Desirability by people. It should meet latent needs, behaviors, and desires;
(2) Feasibility - technological considerations;
(3) Viability in terms of economic considerations and strategic business aims.
SEARCH FOR THE IDEA WHICH MUST MEET THE THREE CONTROVERSIAL REQUIREMENTS:
Source: Keeley (1993); Owen (1993).
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HOW DOES THE SEARCH FOR A NEW PRODUCT IDEA HAPPEN?
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THIS IS HOW THE WAY LOOKS LIKE IN THE BEGINNING OF THE PROJECT
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IT IS HOW IT SEEMS WHEN APPROACHING THE END OF THE PROJECT
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AND IT IS IN REALITY…
WHAT DISTINGUISHES THE STAGE WHERE THE SEARCH FOR A NEW
PRODUCT IDEA HAPPENS?
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http://www.flickr.com/photos/jurvetson/2542450115/
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THE FUZZY FRONT END OF INNOVATION
HOW TO MAKE DESIGN THINKING WORK
That «zero stage» when you need to give birth to of a new product…
when you need to give birth to of a new product…
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We investigated into fourteen large companies with an annual sales volume from $500 million to $10 billion. We discovered that only four of them had managed to meet plan in terms of timing, functionality of new products and market share. In five cases companies designed new generation's products which were positively evaluated by experts, but at the end these products failed. As it turned out, every time when in an NPD process difficulties occurred, the roots of the problems could easily be found at the stage of early planning, when the company had to decide what design the new product will have. "In search for new generation's product", Harvard Business Review
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FUZZY FRONT END THE REST OF NPD
http://www.co-d.net/
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CONCEPT IDEATION IMPLEMENTATION
http://www.co-d.net/
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EMPATHIZE DEFINE IDEATE PROTOTYPE TEST
1 2 3 4 5
DESIGN THINKING STAGES
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Fuzzy Front End New Product Development
Nature of Work Experimental, often chaotic. “Eureka” moments. Can schedule work—but not invention.
Disciplined and goal-oriented with a project plan.
Commercialization Date Unpredictable or uncertain. High degree of certainty.
Funding Variable—in the beginning phases many projects may be “bootlegged,” while others will need funding to proceed.
Budgeted
Revenue
Expectations
Often uncertain, with a great deal of speculation.
Predictable, with increasing certainty, analysis, and documentation as the product release date gets closer.
Activity Individuals and team conducting research to minimize risk and optimize potential
Multifunction product and/or process development team
Measures of Progress Strengthened concepts. Milestone achievement.
Fuzzy Front End: Effective Methods, Tools, and Techniques, Peter A.Koen, Greg M.Ajamian, Scott Boyce, Allen Clamen, Eden Fisher, Stavros Fountoulakis, Albert Johnson, Pushpinder Puri, and Rebecca Seibert / The PDMA ToolBook for New Product Development
DIFFERENCE BETWEEN THE FFE AND THE REST OF NPD
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So, the 5 reasons
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WHY DESIGN THINKING DOESN’T ALWAYS WORK
IN COMPANIES
1. MINDSET Companies hate uncertainty and do not appreciate nonlinear, intuitive thinking.
2. PROCESS Companies bond to linear instead of iterative processes.
3. FOCUS Companies are good at market research but still struggle with applying design research.
4. SKILLS Companies understand well what UX/UI is, but have no sufficient skills to creating cheap-and-quick prototypes (unless it is a design consultancy).
5. CULTURE Companies have difficulties with creating ‘i-shaped’ business culture.
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mindset
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DIVERGENT vs CONVERGENT
Pay attention to your mindset
…and temporarily forget the metrics
1. MINDSET
2. PROCESS
3. FOCUS
4. SKILLS
5. CULTURE
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Companies have a targeted intelligence to track issues that are strategically important but lack an open process to recognize emerging patterns and issues that no one has yet identified as strategic. Best-Practice Survey Results/SRI Consulting Business Intelligence-formerly Stanford Research Institute
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DESIGN THINKING
Aims at operating with already identified strategic opportunities
Aims at discovering new strategic opportunities
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TARGETTED INTELLIGENCE
HOW TO SWITCH OFF TARGETTED INTELLIGENCE?
consciously combine «divergent» and «convergent» mindsets.
• Diverge: generate options
• Converge: select options
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DIVERGENT THINKING: ability to expand the search area to create new problem statements
CONVERGENT THINKING: ability to find solutions to some problem statement
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WHY IT IS SO IMPORTANT TO FIND YOURSELF FROM TIME TO TIME IN A ‘DIVERGE’ MINDSET?
We are accustomed to immediately rush to solve the problem rather than stop and ask yourself, "Is that the right problem we solve?". Thus, we spend a lot of time to answering ‘bad’ questions and solving the ‘wrong’ problems.
If I had only one hour to save the world, I would spend fifty-five minutes defining the problem, and only five minutes finding the solution. Albert Einstein
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SO, HOW OFTEN DO YOU ASK YOURSELF A ‘GOOD QUESTION’:
WHAT TYPE OF MINDSET AM I CURRENTLY UTILIZING: DIVERGENT OR CONVERGENT?
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SO, HOW OFTEN DO YOU ASK YOURSELF A ‘GOOD QUESTION’:
WHAT TYPE OF MINDSET AM I CURRENTLY UTILIZING: DIVERGENT OR CONVERGENT?
Ask yourself and your colleagues more often…
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process
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LINEAR vs ITERATIVE
Follow the main principle – ‘iteration’.
…at Lumiknows, we call it the number of
‘snails’
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1. MINDSET
2. PROCESS
3. FOCUS
4. SKILLS
5. CULTURE
HYPOTHESIS
MODEL
CHECK
CREATING A FIELD OF HYPOTHESES OF NEW PRODUCT IDEAS
CHEAP-AND-QUICK PROTOTYPING REFLECTING A KEY USAGE SCENARIO
CHEAP-AND-QUICK TESTING OF THE HYPOTHESES
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1 2 3
v
H
M C
Linear incremental process with clear beginning and end
Iterative process based on the ‘H – M - C’ cycle
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x
OUR METHODOLOGY ‘THINK AS CREATOR’ IS BASED ON THE CYCLE ‘HYPOTHESIS – MODEL - CHECK’
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©Lumiknows, 2015
We caught ourselves at asking each other, ‘How many snails have we went through?’
SO, HOW OFTEN DO YOU ASK YOURSELF A ‘GOOD QUESTION’:
CAN WE SAY OUR WORKING HYPOTHESIS HAS BEEN CONFIRMED, OR SHALL WE
MAKE ANOTHER SNAIL?
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SO, HOW OFTEN DO YOU ASK YOURSELF A ‘GOOD QUESTION’:
CAN WE SAY OUR WORKING HYPOTHESIS HAS BEEN CONFIRMED, OR SHALL WE
MAKE ANOTHER SNAIL?
Ask yourself and your colleagues more often…
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focus
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CUSTOMER EXPERIENCE vs HUMAN EXPERIENCE
Make sure you apply the right type of research techniques:
a detailed story of “how to ride a bicycle” vs real experience of
riding
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1. MINDSET
2. PROCESS
3. FOCUS
4. SKILLS
5. CULTURE
WHAT IS THE MAIN DIFFERENCE?
Market research techniques are good at confirming the existing situation, but not that good at identifying new product opportunities.
If I’d ask people what they wanted, they would have said a faster horse. Henry Ford
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Design in Technology program, University of Cambridge, Judge Institute of Management
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Market techniques
Design research techniques
Artificial setting
In-context
Self-reporting of behaviours
Observe behaviours first hand
Identifies ‘preferences’
Identifies ‘user experience’
Sanitized data (aspiration)
Raw data (reality)
Focuses on the ‘known’
Focuses on new possibilities
Closed ended questions
Open ended dialogue
Detached research team
Integrated to design development team
Bar charts & text
Visual images
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Market
research results
Design
research results
The number of respondents
100
1
The number of new product ideas
1
10
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Market research: focus on narrow «customer experience»
Design research: focus on total «human experience»
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Finally, the goal of designing these experiments and minimal viable products is not to get data. The data is not the endpoint. Anyone can collect data. Focus groups collect data. This is not a focus group. The goal is to get insight. The entire point of getting out of the building is to inform the founder’s vision. The insight may come from analyzing customer responses, but it also may come from ignoring the data or realizing that what you are describing is a new, disruptive market that doesn’t exist, and that you need to change your experiments from measuring specifics to inventing the future.
Steve Blank
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SO, HOW OFTEN DO YOU ASK YOURSELF A ‘GOOD QUESTION’:
DO WE ENRICH THE REAL LIFE OF OUR CUSTOMERS WITH MEANINGFUL STUFF, I.E. THINGS THAT DON’T NECESSARILY APPLY
TO OUR BRAND?
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SO, HOW OFTEN DO YOU ASK YOURSELF A ‘GOOD QUESTION’:
DO WE ENRICH THE REAL LIFE OF OUR CUSTOMERS WITH MEANINGFUL STUFF, I.E. THINGS THAT DON’T NECESSARILY APPLY
TO OUR BRAND?
Ask yourself and your colleagues more often…
skills
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PROTOTYPING: FAST vs SLOW
Make sure you understand the difference between ‘fast’ prototyping and classical usability testing :
as between «spotlight» and. «flashlight»
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1. MINDSET
2. PROCESS
3. FOCUS
4. SKILLS
5. CULTURE
WHAT IS ‘FAST’ PROTOTYPE
Cheap and quick way of visualizing your hypothesis which makes it easier to:
(1)test it,
(2)refine it, and
(3)communicate it to both potential users, and colleagues inside the company.
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http://woodwabbet.blogspot.ru/2013_09_01_archive.html
WHAT IS ‘FAST’ PROTOTYPE
A clever ceramics instructor divided his pottery class into two groups during the first session. One half of the students, he announced, would be graded on quality as represented by a single ceramic piece due at the end of the class, a culmination of all they had learned. The other half of the class he would grade based on quantity . For example, fifty pounds of finished work would earn them an A. Throughout the course, the “quality” students funneled their energy into meticulously crafting the perfect ceramic piece, while the “quantity” students threw pots nonstop in every session. ...At the end of the course, the best pieces all came from students whose goal was quantity, the ones who spent the most time actually practicing their craft.
‘Creative Confidence’, Tom and David Kelley
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Aim of the classical usability testing: check usability of the product for some particular scenarios
Aim of the «fast» testing: check the idea of new product + search for new hypotheses
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SO, HOW OFTEN DO YOU ASK YOURSELF A ‘GOOD QUESTION’:
SHALL WE CHANGE THE IDEA OF OUR PRODUCT, OR WE CAN NOW START
POLISHING IT?
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SO, HOW OFTEN DO YOU ASK YOURSELF A ‘GOOD QUESTION’:
SHALL WE CHANGE THE IDEA OF OUR PRODUCT, OR WE CAN NOW START
POLISHING IT?
Ask yourself and your colleagues more often…
culture
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IDEATORS vs IMPLEMENTERS
Create ‘i-shaped’ organizational cultures
…and don’t make those people implement brilliant ideas they
bring to you. Statistics say the chances are high they will leave.
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1. MINDSET
2. PROCESS
3. FOCUS
4. SKILLS
5. CULTURE
WHAT IS ‘I-SHAPED’ ORGANIZATIONAL CULTURE?
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IDEATORS | Moving quickly | Perfect for Fuzzy Front End, but NPD isn’t their piece of cake
IMPLEMENTERS | Moving deeply | Perfect for implementing ideas, but not for the FFE (see slide #29)
WHAT IS ‘I-SHAPED’ ORGANIZATIONAL CULTURE?
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IDEATORS | Moving quickly | Perfect for Fuzzy Front End, but NPD isn’t their piece of cake
IMPLEMENTERS | Moving deeply | Perfect for implementing ideas, but not for the FFE (see slide #29)
Should work in parallel universes
I-shaped culture is that which is good for innovation, i.e. there are two parallel universes created – for ideators and implementers.
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Inside of companies these are the mavericks you want to fire for not getting with program. In a startup they’d be the founding CEO. These innovators want to create new and potentially disruptive business models. Here the company is essentially incubating a startup. They operate with speed and urgency to find a repeatable and scalable business model. [They] need to be physically separate from operating divisions (in a corporate incubator, or their own facility.) And they need their own plans, procedures, policies, incentives and KPI... Steve Blank, Lean Innovation Management – Making Corporate Innovation Work
TODAY, WIN NOT THOSE BIGGER AND STRONGER
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TODAY, WIN NOT THOSE BIGGER AND STRONGER, BUT THOSE WHO CAN QUICKLY CHANGE...
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SO, HOW OFTEN DO YOU ASK YOURSELF A ‘GOOD QUESTION’:
HAVE WE MANAGED TO CREATE A REAL CULTURE FOR INNOVATION (‘I-SHAPED’ CULTURE), I.E. WE HAVE CREATED TWO
UNIVERSES: FOR IDEATORS AND IMPLEMENTERS?
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SO, HOW OFTEN DO YOU ASK YOURSELF A ‘GOOD QUESTION’:
HAVE WE MANAGED TO CREATE A REAL CULTURE FOR INNOVATION (‘I-SHAPED’ CULTURE), I.E. WE HAVE CREATED TWO
UNIVERSES: FOR IDEATORS AND IMPLEMENTERS?
Ask yourself and your colleagues more often…
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HOW TO MAKE DESIGN THINKING WORK IN YOUR ORGANIZATION
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1. MINDSET Consciously combine ‘divergent’ and ‘convergent’ mindsets.
2. PROCESS Follow the main principle – ‘iteration’.
3. FOCUS Look at the bigger picture – move from narrow ‘customer’ to total ‘human’ experiences.
4. SKILLS Infuse your company with skills of creating cheap-and-quick prototypes – both digital and tangible.
5. CULTURE Make sure you create a powerful ‘i-shaped’ culture, - two universes for ideators & implementers.
HOW TO MAKE DESIGN THINKING WORK
?
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1. MINDSET Consciously combine ‘divergent’ and ‘convergent’ mindsets.
2. PROCESS Follow the main principle – ‘iteration’.
3. FOCUS Look at the bigger picture – move from narrow ‘customer’ to total ‘human’ experiences.
4. SKILLS Infuse your company with skills of creating cheap-and-quick prototypes – both digital and tangible.
5. CULTURE Make sure you create a powerful ‘i-shaped’ culture, - two universes for ideators & implementers.
Indeed, the gap between what can be imagined and what can be accomplished has never been smaller. In the age of progress, dreams were often little more than fantasies. Today, they are doorways to new realities. … But we are limited not by our tools, but by our imagination. Gary Hamel
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Dr Ekaterina Khramkova, Lumiknows, 2015
THANK YOU
5 THINGS TO MAKE DESIGN THINKING WORK
IN YOUR ORGANIZATION