The Brown Book of Design Thinking

1. The Brown Book of Design Thinking Editor Jose Berengueres The University College, UAE University, Al Ain, UAE. The College of Information Technology, UAE University, Al Ain, UAE. Edition First Edition. November 16, 2013. UAE University College, Al Ain. ISBN 978-1-63041-059-9 Version 27 of Oct 2014 “Nissan Edition” Cover Design by Eman Yaqoub Ahmad Rabiah Design Mariam Alfalasi, UAE University. Illustration Reem Alqamzi, UAE University. Copy-editing R. Susannah Behan. Text Copyright © Jose Berengueres 2013-2014. All Rights Reserved. © i

2. Artwork Copyright Artwork appearing in this work is subject to their corresponding original Copyright or Creative Commons License. Except where otherwise noted a Creative Commons Attribution 3.0 License applies. Limit of Liability The editor makes no representations or warranties concerning the accuracy or exhaustivity of the contents and theories hereby presented and particularly disclaim any implied warranties regarding merchantability or fitness for a particular use including but not limited to educational, industrial and academic application. Neither the editor or the authors are liable for any loss or profit or any commercial damages including but not limited to incidental, consequential or other damages. Support This work was supported by: The University College, UAE University. The College of Information Technology, UAE University. Center of Excellence for English Teaching and Learning (CETL), UAE University. UAEU ii

3. Chapter 1: Start This is a brown book on design thinking. Rather than case based, it is workshop based. It means that you learn by doing, not reading.

4. Course Objectives In this course book we will practice two skills: 1. The workshop method propagated by the design firm ideo. 2. How solve problems faster by applying visualization techniques. What is design thinking? As a thinking tool, design thinking fosters the ability to combine: empathy for the context of a problem, creativity in the generation of insights and solutions, and the skill to materialize those solutions through iterative prototyping. Taught as a course at Stanford since 2004, and with a school funded by Hasso Plattner (see: http://www.hpi.uni-potsdam.de/ willkommen.html), today design thinking impacts processes not only in engineering practice, but in education and across disciplines. Its tools are used by product and industrial design firms to ideate products. It is also used to solve so called wicked problems – problems for which neither question nor answer is well-defined. Typical wicked problems for researchers are: How to win the next Nobel prize? How to decrease traffic accidents? How to fix global warming? Goals The goal of this course is very simple: to master design thinking skills. Rather than using the traditional MBA case study method, this is a workshop-based course where we learn by doing. In each session, a thinking tool will be introduced and practiced. Outcomes By the end of the course the student is expected to: 1. Have a sense of self-efficacy (creative confidence). 2. Manage a design thinking workshop: Layout, roles, times and process. 3. Effectively use of thinking tools: 1. A3 / PDCA 2. Root cause analysis 3. Kaizen / 5S 4. Waste identification 4. Know how to Apply design thinking tools to boost research output. 5. Diagnosis productive processes. How it is organized? We are now in the introduction. This chapter contains the crucial Marshmallow workshop, a great starting point for any design thinking course. The following three chapters are divided in sections. Each is to be “played” in a 1-2 hour session. We say play because the role of the teacher is 4 4

5. intended as facilitator: steering the class rather than repeating content. At the end of each section sometimes you might find comments from our classes here at UAE University. They contain student reflections, post-workshop analysis and facilitator comments. Jose Berengueres Dubai, December 15, 2013 5 5

6. Chapter 1 >Start >A Message from the Chairman 6 Here he is. The great Warren Buffett. The bubbles come from his talk at Terry College in 2004. Did you know that 20 year old Warren was terrified at speaking in public? Terrified. Seems hard to believe now. One day he took a Dale Carnegie course on a subject that changed his life: How to speak in Public. You as a young man, will earn considerable money in your life-span. Let’s play a game: ----- I offer to buy 10% of your potential future earnings. What price would you value your self? (Watch out... I might take the low ballers only!) Hint for discussion to Warren’s teaching: What price did you name? How much does a course on public speaking cost? How much does this course cost? Now suppose you took a course that improves yourself 10%. ----- Warren Buffet Warren Buffet © Estate of Yousuf Karsh

7. Chapter 1 >Start >What is Design Thinking 7 Hi, I am Dr. J. and this book is about design thinking! ----- Ready? What is design thinking? Very simple. Let’s start with design. Some smarties think that it is how-to design ... well ... not exactly! Originally, it was way to organize a team of product designers so that they would come up with better product ideas. However, today it is applied to solve all kinds of conundrums. And thinking? Thinking refers to how-to organize your team. Think about it, this is not easy. In a team someone always wants to be the boss, big egos, shy people or just simply how to manage the information flow can be daunting. Design thinking is a set of rules and “tricks” that help you do all this well so you get the best out of your team. How? By influencing mindset: the way we think and work, hence thinking.

8. Chapter 1 >Start >Why a New Book? 8 Design thinking books Books we love Why another book on design thinking? Less boring* than Change by Design by Tim Brown, €86.00 cheaper than Design Thinking Research by Plattner (2014) and considerably shorter than the wordy Toyota Way by Liker (2007). This is not the typical “reference” book. This is a book for cowboys. For parallel thinkers, who want to learn by doing. It is also a great book if you plan to teach a 101 course because it contains views from both the student and the facilitator. Toyota + Ideo Contrary to the Stanfordian view that we use d.thinking to “create” value (such as in radical innovation) and that on the other hand we can use Lean tools (such as kaizen) to “optimize” that value. In this book we will introduce a different point of view. By the end of the book you will realize that both Toyota way and the Ideo way of thinking draw on two common core principles: The power of visualization Practice makes perfect (kaizen) Toyota way in the lab Moreover, in chapter 4.2 we will show a case study of how we used the Toyota way of thinking not only to boost productivity but to do radical innovation in a lab setting. *Abridged from the Hitchhiker’s Guide to the Galaxy. You are here

9. Chapter 1 >Start >MindMap 9 Case Studies Armed with new knowledge you now should readily “see” why businesses rise and fall Toyota Way From Toyota we will learn tools to “see” better Ideo Way From ideo we will learn the workshop method

10. Chapter 1 >Start >The Marshmallow Workshop 10 ►Workshop: This 18 minute workshop is a great start point for any design class because there is no better way to learn than by doing. Tom Wujec has organized this workshop over 50 times and he discovered amazing things about humans... For example, Did you know that 5 year old kids outperform MBA’s? After doing the workshop a universal principle, that at Toyota has been known for ages, should be clear: More Prototypes, More Quality Hi! I invented this workshop ----- Peter Skillman Yeah but who made it famous? ----- Tom Wujec Design Thinking IBLC124 room C60034 UAE Univeristy, Al Ain.

11. Chapter 1 > Start >The Marshmallow Workshop 11 Recap I did this workshop for the undergrads of 2012 twice. The first time the average height was 17 inches. The second time I added one senior student to each undergrad group. What happened? The senior students overtook “leadership” of the process, the undergrads retrenched inwards (respect for authority). The average height went down to 5 inches. It was a sobering moment. Every one felt bad. At Zara (the fast fashion world) they know that: When interviewed by a Harvard team about their success a Zara director says: “The secret of our company success is just that, that a 22 year old employee can freely say how she sees things to the top manager, we do not have any other secret.” (Planeta Zara) What you need to know What happens when they add a material incentive to the workshop? Can you generalize? (Ariely, 2006) What does it mean to find the marshmallow in each project? (hidden assumptions). Do more prototypes really equal more quality? What is the risk of working for a long time without feedback? What are the three reasons kindergarten kids outperform MBAs? 11 What is the Y axis in your life? 0 1 2 3 Number of prototypes

12. Chapter 1 > Start >The Marshmallow Workshop 12 The Three Man United Marshmallows (Abridged from Harvard Business Review, Elberse 2013) that helped man-u to win more matches than the rest: (1) Special purpose training to score in the last minutes of a match. (2) Visualize the team four years ahead in the future to manage player life-cycle and replacement. Player days Sir Alex Ferguson (1941) started his career as a striker in regional Scottish league. He never really managed to get a regular position in spite of scoring 20 goals. In fact, he fell out with his coach at St. Johnstone club where he was playing. In 1966, after having transferred several times between clubs he became the top scorer of the Scottish regional league. However, in 1974 he ended his player career with the bitter taste. Alex as a trainer The same year he quit playing, at age of 32 he signed up as part time coach of a club called East Stirlingshire where he gained a reputation of being a cold-hearted disciplinarian. A token: At the beginning, he would show up every day at the club at 7am. Finally, the rest of employees got the message. Under his leadership, he transformed the team in a positive way. The quality of the game improved. Later he would also transform Mirren and Aberdeen with the same results. In 1986, after 12 years of uninterrupted success, he was invited to join Man U as manager. Three Marshmallows 12 (3)Take a step back. ----- Alex Ferguson Photo by Austin Osuide.

13. Chapter 1 > Start >The Marshmallow Workshop 13 Aha moment, a step back Ferguson was a micromanager. One day Alex Ferguson, who hardly ever delegated the training session command, was confronted by his number two in a cafe. Number 2 - “I don’t know why you brought me here. You don’t let me do anything.” Alex - “That is not true” (he protested) But deep down Alex knew that his number two was right. So he let him try. A few days later he fully delegated the training supervision to his number 2. He sat down in the bench and watched the training. To take a step back from the training allowed him to take an observer role. Then something amazing happened: He realized things that usually escaped him when he was absorbed in hands-on training: New subtle patterns on players appeared; he could see which player was injured even if the player thought he was fine, he could see changes in players moods and then he could talk to the player and find out if the cause was family problem or something else, he discovered a big marshmallow! Luck? No. Motivation? No. Training! Man U has overturned most games in the final minutes of a game than any other Premier League team. What is the real reason? Luck? Values? Motivation? No. Alex prepared the team for those special occasions when a team is losing the game and there are only few minutes left. He made the team do special purpose training for such situations. Visualizing life cycle of players Ferguson had discovered a third marshmallow. He was very good at visualizing how the team would be in 4 years time and he planned accordingly. He was very good at discarding players that would enter decline, but always kept a couple of old cats on payroll so the culture could be transferred from the old generation to the new one. 13 !

14. 14 50 37.5 25 12.5 0 Life-cycle of a player Decline phase 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Performance Age Number of goals per year Buy low Sell high 70 52.5 35 17.5 0 Team performance projection (example) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Perfromance Forecast Year Valencia Jones Lindegaard Gea Giggs

15. 15 The power of step back. For more see back-up man in the next chapter. For a similar story of step-back technique in a soccer team check out page 135 of The Ten faces of Innovation by Kelley and Littman (2008). Just 3 Ferguson didn’t have to discover lots of marshmallows in his life span to be ultra-successful. Great minds think alike!

16. Chapter 2: The Ideo Way Karen Endicott/Thayer School of Engineering at Dartmouth

17. Connecting the dots - What is the function of the whiteboard? It is a shared memory space that facilitates connections between: gathered facts, ideas and cognitive processes. 17 Solution Photo by Karen Endicott/Thayer School of Engineering at Dartmouth

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19. Chapter 2 >The Ideo Way >Ideo 19 This is the ideo office! ►Ideo. Founded 1977 Palo Alto, CA. Designed first Apple silicone wrapped ball mouse. ► Charlie Rose interviews David Kelly - father of design thinking. In his 20s David had invented “toilet occupied” sign for passenger planes while working at Boeing. However, he was not quite satisfied with life. One day he enrolled a design class at Stanford. He loved the fact that they combined art + technology. Later his pal, Steve Jobs would ask him to design the first Apple mouse, and so ideo was born. In the interview Kelly is to blame for a $17 mouse, a vertical Colgate tube and Pringles. The key points are: 1. Diverse people building on others ideas (Cross, 2012). 2. It is hard to find people from different culture backgrounds that can do (1) well. 3. Understand users through observing them: first hand empathic observation. 4. A follow up interview by BloombergTV is here. D. Kelley / Ideo In my 20s I was an unwed, frustrated engineer. One day I took a design class at Stanford and it changed my life. ---- D. Kelley

20. Chapter 2 > The Ideo Way >Ideo 20 Behaviorism in historical perspective The CBS interview reveals a simple truth, that design thinking is about designing taking into account human behavior. Today, this seems so natural. But was it in 1977? For reference Psychology as a field was only invented in 1879, brainstorming in 1941, and B.F. Skinner ideas on behavior were not disseminated before 1968, and then only until 1978 the Behaviorism field had a journal of its own. Skinner influence on Kelley Before Skinner it was accepted that the emotions, behavior and actions of a man came from his inside from his inner thought processes, inner attitudes, “His nature” and so on. After all, where else could they come from? However, Skinner did not think that was very scientific thinking. He conceded that one’s state of mind was the cause of behavior, but what drives the mind? According to Skinner humans believe that we act autonomously but in reality the environment is what shapes our behavior. Skinner proposed that the environment had a much greater effect on the individual than previously thought. In particular, he proposed that to improve human race we need focus on creating better environments, rather than better people. Because good environments will conduce to good people. How does this connect to design thinking? Very simple. If you want your designers to produce better solutions give them a better thinking environment! 20 Skinner’s idea was considered ‘radical’ at the time. Who you are is defined by your behavior. So let’s make environments that are conducive to greatness. ------ BF Skinner Aha! moment

21. Chapter 2 > The Ideo Way >Ideo 21 To learn more For a deeper discussion refer to Chapter 47 of 50 Psychology Classics by Tom Buttler-Bowdown and Beyond freedom and dignity by B.F. Skinner, published in 1971. Additionally, Skinner had some “radical” views on education. As a token: in 1968, The Technology of Teaching, BF Skinner has a chapter on why teachers fail (p. 93–113): he says that teachers have not been given an in-depth understanding of teaching and learning. Rings a bell? Note of 2014.3.25 “Fail faster to succeed sooner” -relate to students delaying putting the marshmallow on top because of fear it will crash the spaghetti tower. 21

22. Chapter 2 >The Ideo Way >The d.school Gift Workshop 22 A Workshop about Empathy ► A step forward from the marshmallow workshop, and an indispensable preparation before your next challenge, the goal here is to redesign the giving-a-gift experience. This workshop works on your empathy skills that you will use to understand users’ needs while you reconnect with your creative self. The secret to a productive workshop is to step out of the comfort zone by pairing with someone outside your circle of friends. In the video the course is facilitated by George Kembel and Jeremy Utley of the d.school. Materials available at the course site. ►d.school at Stanford University, CA. is the brainchild of David Kelley and was funded thanks to $5M from Mr. Plattner. d.School Stanford University

23. Gift experience workshop review. Student prototypes Sept 23 2013 @ UAEU 23 Sketch phase. Try to generate as many crazy radical ideas as possible.

24. 24 Chapter 2 >The Ideo Way >The Shopping Cart Workshop This 1999 ABC video features how ideo redesigns the shopping cart in two weeks. It is a great way to learn how to do a workshop. Lets take notes on the 5 “steps” they mention. Then pay close attention to the layout. In the room nothing is casual: the cramped table, Peter standing, Kelley in the corner leaning back and quiet, the wall behind. Steps (1) Gather facts & knowledge (2) Share facts with team (define) (3) Brainstorm (4) Build-on others ideas (5) Prototype & iterate Workspace influence on thinking behavior Layout shapes thinking Did you know that how you set up a room, colors, illumination, background music and other “details” can greatly affect how your brain thinks? (Meyers-Levy, 2007) Chairs with wheels Table The Toolkit In 2012 Ideo released a pdf called toolkit for educators. It is a step by step rationalized guide to their “workshop” method. It contains tips, checklists, how to organize a fact gathering field-trip, etc. Wall The Backup man The Expert The Facilitator

25. Chapter 2 > The Ideo Way > The Shopping Cart Workshop 25 The Author explains the role of the facilitator. Oct 15th 2014. 25

26. Chapter 2 >The Ideo Way >Examples of How Workspace Shapes Behaviour 26 I changed peoples lives through spaces Rosemary Martinez. ENFP. Textile and Interior design. Mexico. “Design for impact” AR218 Hotel Rooftop, Mexico DF, in August 20th, 2014 Listen to the Interview Recorded at AR218 Hotel Rooftop, Mexico DF, in August 17th, 2014 Early life “My Grand-Dad was a telegraphist. After the Spanish Civil War ended, the fascists put seven death sentences on its head - Mostly for being a free thinker. His son - my dad - had no future in Spain, being the son of who he was, so emigrated to the UK. He found a job at Marconi where he even filled several patents. We landed in Mexico in July 20th 1969 - the same day man was landing on the Moon, so no one came to receive us at the airport.” When I ask students what influences their behavior the most: their inner self or the environment, most say the inner self. Then I show them Rosemary

27. Chapter 2 > The Ideo Way > Examples of How Workspace Shapes Behaviour 27 27 Listen to the Teenager Room Project Recorded at AR218 Hotel Rooftop, Mexico DF, in August 17th, 2014 “How could he study in such chaos?” ---- RM Teenager Room Project Space shapes behavior Case #1

28. 28 Marie’s Room Marie’s Room Recorded at AR218 Hotel Rooftop, Mexico DF, in August 17th, 2014 Listen to the Maid Story Recorded at AR218 Hotel Rooftop, Mexico DF, in August 17th, 2014 Marie was shy and had mediocre grades. We re decorated her room. A few months later he had become the social center of her class. ------ Rosemary M. Space shapes behavior Case #2

29. Chapter 2 >The Ideo Way >The Why Boring Classes Workshop 29 Workshop time Now it is time to do your own workshop. Pick a topic that motivates students such as... Why are classes so boring? Why people do not recycle? Assign expert roles to each student on relevant topics such as: 1. How do they do it in other countries 2. Interview end users on the topic 3. Interview policy makers on the topic ... Then give students one week to go on a first hand fact finding and data gathering mission. One week later: Divide students in groups of 9 max, assign one student as a facilitator to each group. Make sure to follow exactly the ideo shopping cart table layout. The teacher will act as backup man and advices the facilitator if they naturally drift off course. The background music of the gift workshop is great to help shy students talk. At the end demand a one powerpoint solution proposal to the problem and tell your students that it will be sent to the provost! We did this Photos of the “Why boring classes” workshop, 25 Sep’13 @UAEU workshop and after 90 minutes some groups had reached the flow state of intellectual exhilaration. After time was up, some didn’t want to leave the room and continued discussing. That is a good sign.

30. Chapter 2 > The Ideo Way >The Why Boring Classes Workshop 30 The Student’s Reflection (unabridged) By Naama Alshamshi It was fun working in a real workshop. When you actually do something it gives you a deeper understanding than if you read hundreds of books about it. While working in this workshop, I personally realized how little things you might not notice can affect the production of the workshop things like the seats arrangements and the work table. Because if the table was huge and seating were far from each other the expert won’t be able to communicate in the way they should. Aisha Alshamshi says: I learnt the importance of doing the homework and coming prepared, because it gives you a good understanding the problem you want to solve, it also makes you see the problem from several angles, which helps find the best solution. Aisha also said that working in a diverse group of people was a good experience; it allows you to see how different people think, and different thoughts help to solve the problem. Mouza Almuhairi agrees with Aisha and says that she realized how working with a team can be more productive, because you see the same problem but from different angles. She also says that this workshop helped her develop my teamwork skills, because you learn to respect people’s ideas and opinion without criticizing. Being the facilitator is fun, but hard at the same time, because you should keep the group working according to the time schedule. Even though we went over time in our workshop but the facilitator can’t allow that in big workshops because in the business world time is money. #1 Learn by Doing On that topic Ohoud Alkaabi listed controlling time as one of the things she learned in this workshop, alongside sharing ideas and group work. She also said that she learned how to use the design process to dive into real life problems. Like the problem we discussed in our workshop which was the problem of “boring classes” in the university. Yassmin Albraiki said that she learned that there are many ways to solve this problem, like adding activity-based classes will help break the routine which is the main reason for boring classes. She said that she is now confident that we can solve any problem when u analyze it with a group and share your ideas and opinion. Another student agrees with that: Islam Abuwatfa said that sharing the ideas and working together produce better work, she also learned that team work is much better than #5 Preparation is Everything 30 #3 Deadlines kill procrastination #4 More is More #2 Space shapes behavior

31. Chapter 2 > The Ideo Way >The Why Boring Classes Workshop 31 individual work, as a team or a group we were able to come up with more ideas, and better ones. And I am sure we will use these tips we learned in future workshop either in the university or in the work fields. Group A facilitator, Naama Al Shamshi ----- Comments from the backup-man (Dr. J.) There are 4 ways to express an idea: Speech Writing Sketching (2D Prototyping) A 3D Prototype Each one has its advantages and activates different brain areas that can help you “see” things that other mediums of expression cannot convey. As Tim Brown says in his book Change by Design, there are stories you can only explain by drawing. So lets use it more! (Brown, 2012) 31 #6 Check the next page for self-efficacy 90 minute workshop results “Activity based classes” and “Color Therapy” were two of the best ideas proposed to combat boredom in the class Note to self Send to the students a copy of Guy Kawasaki’s 10-20-30 rule video on how to do great slides Note Majors from Engineering have a harder time exercising “empathy”

32. Chapter 2 >The Ideo Way >Self-efficacy 32 ►In this deep talk, Kelley cites a colleague from Stanford, the professor Albert Bandura and the concept of self-efficacy. Self-efficacy is the belief that you can change the World by doing that what you are “set” to do in it. In other words, a “sense” that you are on Earth to accomplish a mission and the confidence that you can do it. People that discover self-efficacy usually quit their jobs and do what they believe they have to do (helping the poor in Africa, building an iPhone, making a 3D movie). While not all of them become rich or famous here are some examples: Mother Theresa, Steve Jobs, Albert Edison, Elon Musk, Warren Buffet, George Soros, Viktor Frankl, Lennon, to them life was meaningless if they cannot accomplish their mission. For example, Elon Musk’s mission is to go to Mars. Did you find ► Albert Bandura. Worked in Alaska. Now professor at Stanford. Formalized the idea of self-efficacy. When I was young I was very poor, so in summer I took a tough job in the Alaskan tundra. This changed my life. Observing my peers’ drink & gamble subculture opened my mind. Now I am the fourth most famous psychologist. ----- A. Bandura Photo by Pajares, F. Albert Bandura your mission yet?

33. 33 This is Alex Bogusky. He is a high-profile example of self-efficacy. Alex has won every award you can win in advertising. One day he quit everything to help a small impoverished community. ----- http://thenakedbrand.com BloombergTV Fast Company cover of June 2010

34. 10/26/13 Ideo's David Kelley: How Did I Get Here? - Businessweek 34 http://www.businessweek.com/articles/2013-10-24/ideos-david-kelley-how-did-i-get-here www.businessweek.com/articles/2013-10-24/ideos-david-kelley-how-did-i-get-here 10/12 Everyone should get a terminal disease once. It helps find your self-efficacy. I found mine: to help others find their creative confidence. ----- David Kelley, cancer survivor. Charlie Rose interview I grew up in a DIY culture.

35. Chapter 2 >The Ideo Way >The Recycle Workshop 35 01►After the Why Boring 90 minute workshop now you are ready for a full 1 week/2 sessions workshop. In spite of not yet having power tools such as Toyota’s 5 Whys or A3/PDCA, this is a great workshop to engage in preparation and facilitation. So. Why do people not recycle? Collect data ► Abu Dhabi Emirate, UAE. Founded 1971. GDP per capita: $29,877. HDI: Very high. (2011) 03►Debriefing - Share collected data. An outcome of the session should be what additional data is needed or missing at the current stage and what action steps will be taken to get it. Prototype Day 1 Day 2 Collect data Start Pitch time! 02►Briefing - In UAE on only 10% of pet bottles are being recycled and only 12% of the parents advise their kids to recycle. In Japan? 70% of PET bottles are recycled. In USA? 30% (Berengueres, 2012)

36. 36 Debriefing session: post-it wall evolution Debriefing session, minute 5

37. 37 Evolution of the post-it wall during session 1 Wall of post-it

38. Chapter 2 >The Ideo Way >The Obesity Workshop 38 UAE Univeristy, Al Ain, Abu Dhabi Emirate, UAE. Workshop of 2014. Overweight rate:60% Obesity Workshop We did this workshop in Oct. 2014. We had to restart it 3 times because the students failed to gather relevant data for the brainstorming session. So I decided to show them photos of the previous recycle workshops so they could see the kind of data they are expected to bring. We also screened the movie “Fed Up!” - Which breaks away the pre conception that obesity is related to calorie intake. No good data no good brainstorming.

39. 39 Evolution of the post-it wall during session 1 Final prototype group A minute 75 session 3

40. Chapter 3: The Toyota Way ` The Toyota Way - Tools to “see” Did you know that many of the core design thinking principles were being used by the Japanese in the 1970s? Visualization, time management, Genchi-Gembutsu and iterative prototyping. From Toyota we will learn not only about the respect for the individual but thinking tools that make you smarter. Many of ideo’s methods such as empowering a team by controlling criticism, had been practiced by the Japanese since 1970 Both ideo and Toyota use time and deadlines to keep teams motivated. (Note: FANUC x10 speed clock story)

41. Recap of the Chapter: The Ideo Way https://www.youtube.com/watch?v=kWPKV7Lmb8A&list=UURW9hIrr6kHOj5zkp1Udo_g Why we learn from Toyota in DesignThinking class... https://www.youtube.com/watch?v=TdwqQ0CnHlM&list=UURW9hIrr6kHOj5zkp1Udo_g#t=184 41 41

42. Chapter 3 >The Toyota Way >Brief History of Toyota 42 ►This is a documentary clip by Toyota. It is presented by Alec Murdoch - who was a speaker for Toyota USA. The full online version is here. The point of the video is the stellar moment where: “A son decides to invent an automatic loom to free her mum from tedious weaving work” This scene synthesizes the Toyota ethos: Why it exists and its purpose in life. Replacing a boring job with automation (aka autonomation) was just one step. However, they did not stop there. In their drive to improve they stumbled upon some awesomely productive principles and tools that later became what is known as the Toyota Production System (TPS). ► Toyota. Founded 1918 by Sakichi Toyoda. Location: Global. A Toyota Kyushu factory tour organized by tikitabi.com

43. When did Toyota become famous? The 1973 oil-shock What the video omits is that no one was paying attention to Toyota until the second oil shock came. “The first time that TPS gets public awareness is during the fall of 1973 right after the first oil shock. From that time are the mythical pictures of Japanese homemaker’s scrambling in supermarkets for a WC paper roll. Due to the shock, WC-paper became scarce in Japan. The scenes are depicted in some films of the era. That year many companies logged red numbers in their Profit/Loss statements, but not Toyota. In fact, that year Toyota boasts yet again record profits. It is then that many companies realize that there might be something to be learned about Toyota’s TPS. Many consider the possibility of copying Toyota. The first TPS consultants are born. Management consultants at Chubu Seisanrenmei create TPS kenkyukai (study group) where even Taiichi Ohno himself would give some talks. It is in the second half of the 70s when the perception that the idea that Toyota’s production technique multi-product mini-batch is efficient diffuses through the Japanese industrial tissue.” (p 27, Berengueres, 2007) Toxic environments* for innovation - Toyota Today However, the reader should not be fooled into thinking that nowadays Toyota is a great place for inventive people. It is not. Today’s Toyota is as a toxic environment for creativity as GM, or Samsung. 43 43 Notwithstanding the video, at the end the NUMMI factory was an economic failure and closed. It its now owned by Tesla Motors - where the electric car revolution is happening *Toxic environments for innovation (Esslinger, 2009) Toyota USA assembly line. Photo by carenthusiast.com

44. Chapter 3 >The Toyota Way >Waste 44 Waste 無駄 The seven kinds

45. Chapter 3 > The Toyota Way >Waste 45 Seven kinds of waste found in the workplace 1. Overproduction This is the number one source of waste. It is the waste that stems from believing that producing in big batches is more efficient than producing in small batches. Huge costs are incurred in unsold items. 2. Waste due to Superfluous Waste due to the existence of unnecessary things: such as personnel, machines, and inadequate machines. Little savings add up over time. 3. No flow It is the waste due to the lack of flow. Stop and go in production and/or suboptimal line layout, lack of synchronization, changeover times. 4. Operational Waste of doing unnecessary work. Due to ignorance, lack o f t r a i n i n g , l a c k o f technological expertise, lack of planning and/or automation. 5. Waste of Movement These comprise a l l the movements done during a work shift that do not add value: Ex. a bolt picked up from an unnecessarily low 45 What is the true cost of storing? How much did we save here? Lack of training is a big source of mistakes. Photo: The Simpsons (c) News Corp. Spaghetti diagrams. Same machines, two layouts. Where would you rather work?

46. Chapter 3 > The Toyota Way >Waste 46 recipient, transportation. Compared to a straight line production layout, a u-cell layout reduces the time spent by workers on walking anywhere from 2xL to 1xL, this can add up to 4 to 6 km per day in a typical factory. This Kitchen Kaizen video by Gemba Academy illustrates how to measure improvements in movement economy. 6. Defect Production It is the waste due to production of defects caused by: lack of training, not enough poka-yoke, quality controls, and poor and inadequate maintenance of machinery. In 2010 Toyota recalled more cars than it had produced. The cost of the recalls is not disclosed. 7. Overstock It is the waste related to the cost of maintaining oversized ! warehouses that act as a buffer between poorly communicated processes. Additionally, one pernicious effect of overstock is that it hides problems. 46 A Toyota recall according to The Guardian How overstock hides problems. (Berengueres, 2007) !

47. Chapter 3 > The Toyota Way >Waste 47 Added Value versus non-value-added Activity A typical breakdown of how time is spent to make a product: Time can be spent doing things that add value or that do not add value: When optimizing operations, most of the time managers focus on the green part. For example, buying a faster machine. However, the big savings opportunity is reducing resources spent in the non-value-added activity because it is simply put: larger. 47 Time Non Value Added activities Value Added Non Value Added activities Value Added Value Added Non Value Added Savings of 30% 30% sav ings Value Added Non Value Added savings Photo by Steve Jurvenston

48. Chapter 3 > The Toyota Way >Waste 48 The Nissan turnaround case When Beirut-born Carlos Ghosn arrived at Nissan circa 1999, Nissan was losing money. What had been one of the flagships of Japanese car-making knew how to make cars but could not manage to make a profit anymore. It did not take long for the triple digit IQ CEO to figure out was wrong. For one he was appalled that a plant manager proudly reported that he had raised the productivity to a new record, while he did not know what the costs his efforts to the company as a whole were (cost of storage, cost of raw materials, labour). This was a sign of clear dysfunction: engineers, purchase managers, designers, and sales people were not working with the same goal. Carlos had to cut costs and cut them fast. To solve this he forced various types of employees to work together in cross-functional teams. For example in a meeting when designing a new door for a car, there would be various employees from different parts of the organization so all costs could be represented/optimized. This means not only purchasing costs, but assembly costs, 48 Genchi Genbutsu? Carlos Ghosn at Nissan’s Honmoku Wharf, a logistics hub about 10 km southeast of Nissan’s global headquarters in Yokohama, July 16, 2011. Picture by Bertel Schmitt. Ghosn stars in the movie The revenge of the electric car by Paine (2011). #2 Don’t waste time being diplomatic, there is no time! #1 Cross-functional teams

49. Chapter 3 > The Toyota Way >Waste 49 warranty costs, customer points of view, etc. He also forced the Japanese managers to use English to communicate. This is what happened: while a manger in speaking in Japanese would talk very politely and say his opinion very diplomatically in long sentences, when forced to use English he would be ruthless, direct and clear (time saving). Five years later, from near bankruptcy, Nissan improved its operating profit (EBIT, or earnings before interest and taxes) from negative to 9% (Magee, 2003). Even if your workplace is not a factory, and you do not produce cars, Can you tell where is the most waste in your surroundings? Carlos interview where he explains cross functional: http://www.youtube.com/watch?v=yChtop17sd8 49 is my goal at NISSAN? I am having fun! Carlos Ghosn WBS TVTokyo 2013 What ---- 2007 Carlos G. Nissan ceo pay in Millions 0 2.25 4.5 6.75 9 Cross-functional teams? Of course! Isn’t that common sense?

50. Chapter 3 > The Toyota Way > Waste 50 50

51. Chapter 3 >The Toyota Way >The Five Whys 51 なぜなぜ5回 The Five Whys Method

52. Chapter 3 > The Toyota Way >The Five Whys 52 Itsutsu no Naze means in Japanese The Five Why’s. It is an expression born in Toyota that has been popularized recently by popular magazines such as R25. It is a technique based on searching relentlessly for the root cause of problems (it requires stepping out of the comfort zone). It also means that if we want to solve a problem properly in a permanent manner it is necessary to focus on the root cause not in its sprawling branches. Example problem:  Boy, I have a headache... ❓Why does it ache? Because I have a cold. ❌ Solution: Take an Aspirin. Wrong! Meanwhile at Toyota’s...  I have a headache... $ Why? Because I have a cold. % Why did you catch a cold? Because yesterday I spent time in the cold. & Why? Because I didn’t take my coat. ' Why? Because I didn’t think that it would be so cold outside. ( Why? Because in the morning I don’t check the weather forecast. (✅ ) Solution: Install a thermometer in the balcony and watch it before going out. The intake of an aspirin is just a superficial countermeasure. The thermometer, on the other hand, would solve the problem permanently. However, it requires two things: The creation of a rule (watch the thermometer before going out) and discipline. As in real factories, success depends on how motivated and disciplined the workforce is. Why five and not another number? It is curious but at Toyota they wonder the same. It turns out that if one asks repeatedly five seems to be the magic number of steps. Itsutsu no naze is a powerful tool that can help to solve problems for a long term. 52

53. Chapter 3 > The Toyota Way >The Five Whys 53 Why do we catch colds? The body is continuously generating antibodies that must be replaced continuously in its war against microbes. The microbes try continuously to invade our warm body. When it is cold, the body stops manufacturing antibodies as an energy saving measure. If the cold period is long, the defense level drops and the risk of infection rises. 53

54. Chapter 3 >The Toyota Way >A3 / PDCA 54 A3 / PDCA

55. Chapter 3 > The Toyota Way >A3 / PDCA 55 P.D.C.A stands for Plan-Do-Check-Act. It is also known as the Deming circle. The virtue of P.D.C.A is not in the Planning, Doing, Checking or Acting but in the separation of Planning from Doing, Doing from Checking and Checking from Acting. It is a methodology that ensures that a change to a process such as one improvement is isolated from the following change. If you change a process very often, as in kaizen/continuous improvement, the hygiene of your process might suffer. If changes are applied randomly or not managed properly it can be hard to track which of them improved the process and which didn't. PDCA solves this by: 1. Plan = Think of one potential improvement 2. Do = Try it 3. Check = Measure the “effects” 4. Act = Adjust. Evaluate. Fully implement the proposed change OR discard change. 5. Go to step 1 and repeat cycle. The A3 restriction Tracking a PDCA initiative can be done by using the A3 method. A3 method is very simple: you need to be able to display all the information regarding your project in one single A3 size paper. This space restriction will help you focus on the essential information only. The A3 method can be seen as a reporting method. The idea is to access all the essential information regarding a project with a single look. A3 reporting is commonplace in Toyota and at many other Japanese corporations. Note: Since the Japanese language is twice as dense as English you might need to use smaller 8-point size typeface to be on an equal density footing. Summarizing: A3/PDCA is about quantifying the effects of change and the time-evolution 55 PDCA according to Johannes Vietze.

56. Chapter 3 > The Toyota Way >A3 / PDCA 56 of the change process itself. The ultimate goal is to have total control over the change process so it leads to steady and reliable improvements. This cannot be insured if one change is not separated from the other changes. The following figure is an example of a famous PDCA example by Staffan Nottaberg. How–to A3 Report and Value Stream Mapping A3 Report is a way to implement Deming’s PDCA (Plan-Do- Check-Act). Toyota uses it in meetings for problem solving and to restrict information overload. Here goes the example: Briefing: We have a family that gets stressed during the morning, there are three daughters. Here is how a Toyota man would solve and organize the information using A3/PDCA: In Theme section write: Stress free morning procedures. In Background whatever info you collected, for example: School starts at 8.20. The children need to sleep for as long as possible. They must leave home at 7.45 to catch the school bus. In Current Condition: Lack of time almost every morning. Stress creates bad atmosphere in family. The so-called Value stream map of the morning activities might help you visualize the problems. It indicates that value adding processes only are 17 out of 45 minutes, the rest seems wasted time. Goal: Ready to leave for the bus within 45 minutes without stress. 56 Value stream map according to Staffan Nottaberg.

57. 57 The A3 method according to Staffan Nottaberg.

58. Chapter 3 > The Toyota Way >A3 / PDCA 58 Let’s assume that the father investigates why T2, for instance, is so long and finds out... Root Cause Analysis (using Five Why’s) Why stress? Because a considerable amount of time is spent on T2. Why is so much time spent on T2? Because Samantha (one of the daughters) has to wait for the hairbrush. Why does she have to wait? Because her sisters use the hairbrush. Countermeasures (Try to define who is responsible for what action) 1. Mother buys two more hairbrushes. Due Friday. 2. Father reserves space for new hairbrushes, when they are not used. Due Saturday. 3. Father will measure if T2 decreases after (1) and (2) is done. Effect Confirmation (try to be visual, charts): Try to measure the effect of the countermeasures... Does the stress decrease over a week or not? Find and use a key performance indicator. For example: dBA noise levels, how many minutes late they are, or survey of the daughters’ happiness. Follow-up Actions: Did the countermeasure work? If yes, adopt it. Mother will buy another two hairbrushes. It’s a backup in case of one ordinary is lost. Due Tuesday. As always for every task define clear responsibility of who when what. More A3 Samples 58 A Microsoft Excel based A3 PDCA.

59. 59 A3 from 2012 class - How to prevent car accidents.

60. 60 2013 Fall A3 / PDCA How to discipline children?

61. Chapter 3 > The Toyota Way >A3 / PDCA 61 The Student’s Reflection (unabridged) Ohoud Alkaabi I think that A3/PDCA helps me to solve complex problems in an easy way. However, I can solve the problem by following (Plan, Do, Check, Act) and in only one paper. It has developed my thinking to find the best solutions, and imp r o v eme n t s wi t h safe-to-fail experimentation (methodology), so it's really awesome. #1 A3 Less is more Aisha Al Shamshi The A3/PDCA helped me to solve problems in a really fun and interesting way and how we wrote the tiny steps to get to the main idea and write down the best solution of the problems, and the most important thing about the A3/ PDCA is that it helps us in solving the problems of the layout. So by the A3/PDCA which has all of these details. #4 Seek the Root cause Naama Al Shamshi I believe that the A3/PDCA is very helpful, not only that it helps you summarize and display the problem and the solution in a fun, interesting way, but what is more important it helps you identify the problem first, by using the 5 whys for example, you may found out that a simple problem is bigger and deeper than you think. It helps you get to the root of the problem, because cutting the branches won’t kill the problem, but finding out the real cause will. The A3/PDCA also helps you solve your problems by easy steps, it allows you to classify what you know, what you need to know and the goal you want to reach. By doing that you can view the problem in hand as small pieces rather than a huge one so it get easier to find a solution to it. Plus when doing the counter measure and the effect you can see which solutions work and which don’t, or which solutions could cause other problems. 61 #2 Fail safe #3 Step by step solves easier #5 Check what works and what does not

62. Chapter 3 >The Toyota Way >The Five S / 5S 62 The Five S / 5S （ごエス、ごーエス）

63. Chapter 3 > The Toyota Way >The Five S / 5S 63 Historical Origins of 5S 5S is a “slogan” used in kaizen initiatives of the workplace in service and industry sectors to increase efficiency. 5S is named after 整理（せいり、Seiri） Throw away superfluous things (put down seldom used ones,...) 整頓（せいとん、Seiton） Every tool must have its designed place and be returned to that place after use. 清掃（せいそう、Seisou） Clean, clean and clean. 清潔（せいけつ、Seiketsu） If you make any change in the workplace, make sure it is easy to follow by making a standard, or rule. 躾（しつけ、Shitsuke） Build a culture of rule obedience. 5S in the class Now you are ready to do 5S. A class is a perfect place. Seiri: Let the students clear the desks of superfluous objects, purses, wallets... Seiton: Are the mobiles, papers and pens on the desk aligned or placed at random orientations? Let the students align all the objects on the desk. Do they look smarter? Seiso: Can we clean any dirt in the room? Seiketsu: If the previous three initiatives are liked by the students why not make them a rule? Shitsuke: Lets think about how to enforce the rule so it is effective. We can also do 5S by organizing a 5S-kaizen drive: Organize a kaizen drive There are three golden rules on how to successfully carry out a kaizen-5S drive: When there is a 5S activity (such as a meeting) all the employees from the boss to the newest employees are engaged and on an equal footing. Things are decided by consensus. Consensus rules. 63

64. Chapter 3 > The Toyota Way >The Five S / 5S 64 Desk before and after seiton. Desk before and after seiton part II. The directives of Kaizen committees’ actions must be followed up by controls and inspections. 64 Someone left Doritos on my desk. What is a long term solution? Standardizing solutions. How to make people follow the standards? Same table, smarter looks!

65. 65 5S map by u-note.me (in Japanese) http://u-note.me/note/47485926

66. 66 5S map according to Strategos Inc. Consultants.

67. Chapter 3 > The Toyota Way >The Five S / 5S 67 5S in more detail Seiri. Seiri should be the first S. If you cannot do Seiri you won’t succeed with any of he other S’s. Seiri is related to the concept of muda. Definition – Seiri is about discriminating the superfluous things from the strictly necessary things needed to perform a task, job or project. In this way the work environment is simplified, things are found faster, it is harder to make mistakes and productivity increases. Seiri = using the trash bin. Seiton. Seiton is the second S. It means to align things. Definition – Seiton means to have the work environment ordered and tidy (everything labelled...) so that anybody that needs something (for example, a tool) does not waste time looking for it. Seiton means providing a place for things to be stored. In the previous photo a small pot for pencils is added to keep a pencil/s in place. Seiso. Seiso (to clean). It comprises those measures to prevent and avoid dirtying. The aim of seiso is to kill the generation of dirt at source. Example: someone left Doritos on the table. A brilliant seiso measure is to attach a vacuum cleaner to an electric saw or grinding machine so that waste is collected instantly. Killing the source of dirt. Seiketsu. It means Standardize. It is the fourth S. It means to try to make the improvements of the preceding S’s permanent and sustainable. Establishing rules is a great way to encourage good habits. Works better if the employees are involved as stakeholders. A poster can serve as a reminder that no Doritos are allowed, that the pen should be returned to a pot and that a clip should bound loose cards. Shitsuke. The rules that the own employees have decided should be respected and obeyed without exceptions. Shitsuke is about the battle for the minds and hearts of the employees. Displaying a poster with the new rules is a great way to encourage good habits every day. 67

68. Chapter 3 >The Toyota Way >Comparison of Ideo versus Toyota 68 Core Principle TOYOTA IDEO Started 1918 ( with Pokayoke) 1977 (with the Apple mouse) Less is more (time) Instill “sense of urgency” to battle complacency Skillful use of deadlines Human centered Ergonomy respect Empathy for user Empowerment Any worker can stop the line Hire people good at building on others ideas Visualization solves most problems Kanban, A3, tackt time displays, Visual Management, Andon Post-it everywhere, the whiteboard as a communication medium Standardize Standardization of tasks,5S, Kanban, rule obedience The “standard” toolkit Practice makes perfect Kaizen, PDCA, humility in prototyping Iterative prototyping

69. Chapter 3 >The Toyota Way >On the Importance of Seeing 69 What did this two high-achievers have in common? Larry Bird - three times NBA Most Valuable Player. Three times NBA winner. Barcelona’92 Dream team member. Photo by Steve Lipofsky. Manfred von Richthofen - WWI respected flying ace. He defeated more than 100 enemy planes in battle. When he died Allied squadrons stationed nearby presented memorial wreaths, one of which was inscribed with the words, "To Our Gallant and Worthy Foe".

70. 70 Visual Acuity Larry’s visual acuity was tested once by NASA. He scored one of the highest scores ever. (BloombergTV - Game Changers) Why did von Richthofen defeat so many enemy planes even though he was flying a red plane? He could spot enemy planes before they spotted him, and then adopt a winning tactic. Tools such as Genchi-Genbutsu and Five Why’s can help you to “see” better

71. Chapter 4: Case Studies Eri Nobeashi / Comptoir Des Cotonniers Japan Key point To test skills in real world

72. Chapter 4 >Case Studies >The Five Dollar Workshop 72 ►Tina Seelig, Executive director of the Stanford Technology Ventures Program. Did you know that humor is always based on reframing a situation? You can be more creative by reframing a problem. ------- Tina Seelig ►In this video you can see what Tina’s students do as part of her workshop courses at Stanford. I like this video because it does not explain how to be entrepreneurial, it shows how her students became so. The talk is based on her 2009 book, What I Wish I Knew When I Was 20. Love Tina? Her lectures are online at the Stanford e-corner & her iTunesU channel. Hey! Briefing - Each group is handed an envelope with 5 dollars, or with 10 clips or with a pack of Didn’t I say that post it notes. Your mission: you have five days in 1968!? to create as much value as possible from this ------- initial seed capital / investment. Now you have Edward de Bono the tools such as the ideo toolkit to organize knowledge and have the know-how to organize workshops. After five days Stanford students came back with an average of 400 dollars, others come back with something much more TEDx Stanford. Photo by Tamer Shabani important: a newfound self-efficacy.

73. Chapter 4 > Case Studies > The Five Dollar Workshop 73 What you need to know 1. No Problem, no opportunity, no business, no fun. 2. Something leads to something, nothing leads to nothing (Danny Choo). 3. Make your own luck. An example of make your own luck Zappos objective is to hire positive people because positive people are better at customer service. Interview: The applicant is given a task, to find the mistakes and typos in a (fake) newspaper. The newspaper contains a headline that reads: “I you read this stop the exercise and claim $400 from the interviewer.” People who consider themselves lucky usually find the headline and get $400. (Hsieh, 2010) Workshop time In contrast to Tina, we did not hand out clips or post-it packs. We gave each group two fridge magnets from Daiso store. We told them that they had four hours to start a business to make as much money as they could. Two days later the students presented their experiences in a three minute pitch. I was blown away. Group A Group A collected $236 by going to the UAE Maqam campus university canteen and challenging students to beat them to a mind game based on a National Geographic TV episode. 73 Group A earned $236 in 4 hours by means of a mind game. They iterated three business ideas and settings.

74. Chapter 4 > Case Studies > The Five Dollar Workshop 74 Group B Group B audaciously refused the magnets and demanded real money in seed investment (as they had seen in Tina’s first workshop). So we lent them AED 50 ($10). Group B invested money in raw materials and came back with AED 840.00 ($228). They decided to manufacture and sell their own bracelet designs and they repaid the loan! The Student’s Reflection (unabridged) By Naama Al Shamshi Making our own luck, and turning a nothing into a something are things we heard from Professor Tina Seelig, but we didn’t know how to actually translate it into our lives, into our own luck. On Monday we were given a challenge by Mr. Jose, he gave each group a pair of magnets and we were asked to make money out of it. This might sounds crazy, believe me it was. We had no clue how to start, or where to start, one thing we did know was that the magnets were the limit and we can’t go over it. We tried brain storming while playing with the magnets in our hands, and I remembered a trick I saw on TV once, and it’s a trick related to a condition called “overconfident brain”, it’s a game where you place an object on the table and two people place their hands a little bit above the object and one of the hands higher than the other, 74 Group B decided to market handmade bracelets. One of the team members skipped the lecture: She was in the canteen selling the merchandise!

75. Chapter 4 > Case Studies > The Five Dollar Workshop 75 both player race to catch the object, the higher one should give the sign to start because he is a bit far from the object. We knew that we can use that trick for our advantage, because due to that condition in the brain the first player, which will always be one of us, always wins. We spent 2 hours experimenting different prototypes of how to start, at first we would walk up to the girls and offer to draw some picture for them for free if they won the game and they will have to pay for the picture if they lost, it worked; but drawing took much time and effort so we kept changing and improving the idea. After the 2 hours we realized that what we really can offer to the girls is “knowledge” instead of just playing the trick we would ask the girl “Do you think you are smart of stupid?” most of the girls answered smart, then we said that we have an experiment that can prove that you are not as smart as you think you are, but this information isn’t free unless you win in the next game, after losing of course we explained to the girls that the reason they lost was the overconfident brain, and we gave them different examples of this condition, after the mini lecture we would ask the girls to play for us, but we didn’t set a fixed price, we asked them to pay whatever they want, one girl paid Dhs 80 because she loved the information so much, that’s around 21.78 US dollars. We spent 3 hours working in the canteen in 2 groups of 3, and we collected a total of Dhs 867.75 that’s about 236.20 US dollars, which is pretty amazing! We walked out of this challenge as winners, not only that we collected more money than any other group in the class, but more or less we learnt valuable things from experiencing this ourselves. We gained confidence, walking up to total strangers and asking for money in this weird way we needed courage and confidence, we leant what kind of girls were willing to pay more and which type wouldn’t pay anything at all, it was hard at first but after a few rejections you know if you should talk to the next girl or you should pass and move to the next one. Furthermore, while experimenting different prototypes we knew that if we had one table or a stand and waited for girls to come over, no one will, every girl is like a potato sack of money waiting for us, so we have to go and get it. Aisha A. Ahmed Alshamshi said about her experience: “I leant that there is an opportunity to start a business from zero, nothing is impossible, and I learnt that there is no limit for creativity, no limit for innovation and of course no limit for MONEY. I also gained confidence by talking and explaining to stranger girls in a friendly way. Finding the best way to start a conversation with different type of girls was the toughest part. I think that we won because we tried several 75 Never limit your max revenue. GroupA collected $236 Stanford’s average is $200.

76. Chapter 4 > Case Studies > The Five Dollar Workshop Patie n 7c6e , prototypes, worked hard, we were a very fun and awesome team, and we used unusual idea which kept the girls interested.” Ohoud Al Kaabi also learnt a lot from working in this challenge: “I have learned that to be successful you need basic skills Such as patience, communication, thinking, and analysis. Firstly, I find difficult to communicate with people and failure, but failure is an important part because it's helps me to learning from life. And I have learned from my mistakes through the many opportunities that I faced it and taking risks. As I have become more successful at the end. I thought I won because I learned how to manage my work and how to earn the money easily. So, just think and think then improve it in your life, it was really an amazing and awesome experience :).” When expressing what she has learnt Awatef Obaid Alketbi said: “I learnt how to earn a lot of money easily and tricky by basic resource. We have many opportunities that allow us to be successful and we have to study our environment to identify these opportunities. Working with others to increase our opportunity for success and I think this is the reason why we won.” It’s been a wonderful experience, we learnt so much about how to think and work fast and effective, but I think the most important things we learnt were about ourselves, and the things we are capable of, we found out some hidden talents and gained more confidence, now we know how to measure our success by more than just the amount of money we earned. 76 communication, thinking, and analysis. Sell something that has low cost like knowledge. The magnets and the arbitrary four hour time limit was just a mental excuse to help you step out of you comfort zone.

77. Chapter 4 > Case Studies > The Five Dollar Workshop 77 Reflection At the beginning I was very weary of throwing the students into the challenge of this workshop. However, given the outcome, I am glad we did. Tina’s workshop is a great complement to a design thinking course because it offers the opportunity for students gain confidence quickly. After the workshop finished, one student confessed to me that she could not sleep for one night because he was trying to brain-storm a good business idea in time for the looming deadline. Nevertheless, Tina’s workshop role-model influence on students has been very easy to assess. After we conducted her workshop here at UAEU I noticed that students not officially enrolled were attending the lecture. Then I spotted one of them reading an ebook with a familiar title... What I Wish I Knew When I Was 20. 77 Tina’s Five Dollar workshop is probably one of the major contributions to the field of creative self-confidence. ------ The author. Note: Tina Seelig’s works about entrepreneurship were developed independently of Ideo and Toyota.

78. 78 Your Failings 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Your Life in years 2013 2014 No risk, no fun? ? Failings No failings Make a Fail Resume Make a resume that highlights your failings rather than your successes. This exercise, proposed by Tina Seelig, is a great tool to help you asses wether you are failing in to a comfort zone “black-hole-of-death” or not. “I did not realize I had not been doing things I love for a few years now” - said Naama Al Shamsi. “Before I used to draw manga, and do lots of other things but when I wrote the resume I realized I had stopped.” Naama’s fail resume highlight was during her childhood. She and a friend drew some manga books by themselves and they started a sort of manga-kisa: They put the manga on display in their house garden and invited other neighborhood kids to read them for 1 Dhs (20 USD cents) per session. They collected about 5 Dhs before the books were stolen. Black hole illustration: Wired.com

79. Chapter 4 > Case Studies > The Five Dollar Workshop 79 Reflection Students love to make video resumes rather than writing one. Setting up a 60 second limit will help standardize.Exchange Exchange Student at The Bielefeld Summer Block course Student - I don’t like Computer Science... :( Author - So, what are you going to do about it? S - I will finish the last one year and then figure out what to do with my life... ... A - You will never be a high paid CS engineer if you don’t like to program at least 12 hours a day. S - I don’t know what to do. My eyes are getting bad of looking at screen. I just try to do the minimum effort to pass the course. A - Well you know that you don’t like: CS. Now step out of your comfort zone and start looking for what you want to do in life. S - But I don’t know A - Do u do any part-time? Maybe your destiny is to be a super star barman!! S - I don’r know. A - How do you know if you are not genchi gembutsu? Ok. I want you to go this sushi restaurant manager and ask him if you can work as a waiter. Now! ... S - They asked me if I speak German. A - And. S - I didn’t learn German yet. A - You have been 2 years here and you do not speak German yet? I want you to start learning German language next week. 79

80. Chapter 4 >Case Studies >The Fast Fashion World: Zara 80 Inditex is an example of a laser focused company. It is based in the Celtic Northwestern rural region of Spain where time is slow and there is little industry. Some argue that its success is due to the informal network of homemakers that provided a highly skilled workforce of competitive tailoresses. More conventionally, at HBR they decided that the secret should be in the management of the company. One thing that will shock you about Zara is how they decide what fashion to produce. Zara employees are always on the look out for new trends. They constantly “observe” the customers that visit Zara shops. Then they inform the HQ in Arteixo what fashion they think will sell (empowerment). Inditex is so focused they do not waste time talking to journalists. This is the only documentary on Inditex from within. Produced by Canal+ in 2002, by Josep Serra Mateu and Maria Ruiz Calzado. ► Inditex. Founded 1975. Arteixo, Galicia. Success formula: give the customer what they wear & want. 45 27 Outlier designer team: Socorro, Loreto, María y María Jesús, and the model Tere. El Pais / CATERINA BARJAU. More photos.

81. 81 High fashion Basics 50% 50% El Pais / CATERINA BARJAU External garment shops such as this one, must comply with an ethical code of no exploitation. Sometimes they skip it, as it was recently discovered in a fire in Bangladesh. Inditex product mix is 50% high added value garments 50% basics.

82. 82 These cabins are used to negotiate and meet with suppliers. This is the same system used at Wall-Mart. Inditex’s lobby. Baggage full of sample garments. Supplier. El Pais / CATERINA BARJAU

83. 83 An employee choosing what models will be used for the coming online shop. El Pais / CATERINA BARJAU

84. 84 A logistic store in Arteixo. Here they prepare orders; from conception to hanger it takes three weeks. Every shop in 86 countries receives garments twice a week. El Pais / CATERINA BARJAU Munich Tokyo Melbourne Barcelona Mountain View Shanghai

85. 85 A 'call center' for online shopping. Zara was criticized for its tardiness to offer online shopping. The Zara iPhone App was designed by @AdriaMontiel. Clear wall. El Pais / CATERINA BARJAU

86. 86 Eight out of ten employees are women. They stitch the prototypes El Pais / CATERINA BARJAU for each design. High skill labour

87. 87 Inditex precuts all the garments and then sends it to 700 nearby companies that do the assembly of skirts, shirts and other models. Fill factor of PC: 70%. Human 88%. Difference human-PC = +12%. How much do we save with her Tetris skills? Fill factor PC Her 0 0.225 0.45 0.675 0.9 PC Her used area wasted 0 250 500 750 1000 Salary: € 35,000/year. Her job: Fit the patterns in the roll of garment; optimize wasted garment between patterns. Fill factor: PC: 70%, her: 88%. Wasted gap. Garment cutter robot. Salary (€) -35,000 Social security -25,000 Savings 12% on 108,000,000 900Mill Net savings 107,040,000 Leg of a pant. Think time! Lets calculate how much € we save. Assume Inditex purchases €900 Mil. of garment rolls per year. Planeta Zara

88. 88 Designer Junior Designer Designer Designer Model At Zara designers never work alone. In the next table sales representatives from shops of France, Middle East, Australia and USA are waiting to review their prototypes and give immediate feedback. No prototype will go into production without the approval of those who know the customer. Even when designers meet with providers to purchase garments someone from the shop will be present to provide firsthand input from the shop. The idea of cross-functional teams must have come naturally to Amancio Ortega: since the start of his career in a little shop, he worked as a tailor and sales clerk. Sales Sales Sales Sales Sales

89. Chapter 4 > Case Studies > The Fast Fashion World: Zara 89 Floor design comparison (a Just-in-Time example at Zara) Shop A A big storage room lets you ship less often. However, how much added value does the storage area generate? None. Shop B A smaller storage room means that shippings must be twice more frequent. Shipping cost x2. 89 Shopping area Storage area Shopping area Strge. area Cost of shipping Cost of storage area rent 50 37.5 25 12.5 0 Total costs 0.5 4 16 Number of shippings to store each month Shop A Shop B Cost leader

90. Chapter 4 >Case Studies >The Microwave Workshop 90 ►Hugo’s facilitated this m i c r o w a v e o v e n workshop in Tokyo Institute of Technology around 2006. Workshop: You have been hired by a microwave oven brand. Recently, due to Chinese competition, the oven margins are paper thin so the survival of the company might very well depend on you coming up with a new oven design for which customers want to pay more. Innovation Matrix (IM). In this workshop we practice a mapping-tool called innovation matrix (IM). The IM helps to formalize and organize functional relations between: market needs technology product features This way to display information will help you to: perform a functional analysis of the product discover unmet customer needs inspire new features ►Zurich. Hugo Tschirky is Professor Emeritus of Business Management at the Swiss Federal Institute of Technology (ETH). The Innovation Matrix is a knowledge discovery tool. ------- Hugo Tschirsky Microwave Illustration by Scientific American.

91. Chapter 4 > Case Studies > The Microwave Workshop 91 Warming-up If you developed empathy skill in during the gift workshop you will see that a microwave is not one oven. It is multiple ovens, depending on who uses it. To a Geek’s an microwave oven looks like this: To an Statistician it looks like this: This is what a Parent-with-kids primary brain sees when u show him a microwave oven: The Cleaner’s oven: 91

92. Chapter 4 > Case Studies > The Microwave Workshop 92 A microwave from a Systems point of view: A microwave oven from a sales man point of view: The microwave oven was introduced to the American public in 1967: http://www.smecc.org/microwave_oven.htm Innovation Matrix How-to 1. Draw a matrix format by rows 1. Write the market needs (Why people buy ovens) 2. Product functions (heat, boil...) 3. Technologies behind those functions (Magnetron, LCD...) 4. Basic Science field supporting those technologies. (RF, IC) 2. Link concepts 1. Clarify 2. Seek deep truths 3. Use 5 Whys if needed Once your product is clear and mapped out... 3. Innovate Now that you have a clear picture of relationships between value, customer needs, costs and technology. You are in a better position to innovate either by: 1. Brainstorming 2. Planning an ideo style shopping cart workshop 3. Edward deBono creativity tools 92

93. 93 Need hot-milk ready for breakfast Need to bake a birthday cake Innovation Matrix Example Appliances that make you feel better Melting Defrost Alert FastHeating Magnetron Human need for feedback IC / Timer Antenna Radio Frequency basic tech Timer Need to save time Metal Bell IC Sound Engineering LCD need for mobility Market Needs Wants - - - Product function - - - Technology - - - Field ? Faraday Cage Healthy diet Abridged from Hugo’s workshop 2006

94. Chapter 4 > Case Studies > The Microwave Workshop 94 94 Team A Matrix day one

95. 95 Team A Matrix day two (some reordering, new relations)

96. Chapter 4 > Case Studies > The Microwave Workshop 96 96 Light and oven window seem two unrelated technologies in an oven. However, they serve a common need: The need to check for mistakes! Aha! Functional Innovation example Cost of (Window +Light) > Cost of (X)? Consider the cost of a window + light. Their sole purpose is now clear. Can X do their function better, cheaper? Lets find X!

97. 97 IM can help clarify why people buy your product Team B Matrix day one

98. 98 Team B Matrix day two, (Now on a more practical horizontal position)

99. 99 Key point IM can help you clarify relationships between your product and your customers. “Why they buy.” < Aha Did you know some people buy microwaves because they don’t have space for an oven?

100. 100 ? now 1967 1923 Wa l k m a n / i Po d t h i n k i ng

101. Chapter 4 > Case Studies > The Microwave Workshop 101 Prototypes Back-up man Reflection 160 minutes of IM activity helped clarify what the product is about. However, when it came to propose new designs doing actual prototyping job gave students a renewed energy. They prototyped ideas that could / had not imagined at all while doing brainstorming in step 3 IM. (But, we knew that from Tim Brown’s book, there are some things that can only be explained by doing a physical prototype) Students’s Reflection Comparing IM to the ideo method, they both do the same “work”. Obviously, IM is systematic and more rational. Ideo does what IM does without realizing that what they do is a mapping. On the other side, IM does not take into account team work dynamics, layout or process. Combining both seems to be promising. Innovation Matrix + Ideo Workshop method ___________________ Rational & creative product design process 101

102. 102 What functional is all about Outdated GUI Heating box Externalized GUI

103. 103 ppl buy microwaves to save time. Does this GUI really help you save time? Some ppl buy microwaves to save space. But only 1% of dishes are square!? ppl buy microwaves to heat something, not to heat something during-a-certain- amount-of-time. more functional thinking examples Wasted footprint Mi crowave s have b e ll s to f u l f i l l a function, what is a more functional “bell”? ?

104. Chapter 4 >Case Studies >Applying Five Whys to boost R&D 104 ►Tokyo Institute of Technology. Tokyo, Japan. Case: How we used Five Whys to solve a wicked problem and to boost R&D Wicked. Back in 2005 I was a PhD candidate at TokyoTech. One day in a meeting, my supervisor told me that Dr. Hirose (lab next door) had asked him if our lab could build a better climbing robot for the police. I said: “We can do it!” ----- (I had never climbed before and let alone no idea how to make a robot climb either)

105. Chapter 4 > Case Studies >Applying Five Whys to boost R&D 105 A wicked problem In 2005, I was a PhD candidate at Tokyo Institute of Technology. I had just randomly read a famous article from Nature. The article had clarified for the first time how gecko’s can hang on walls. A guy in the USA had cut a gecko toe and had confirmed that gecko use a force of adhesion called Van Der Waals: a kind of micro level electrostatic force. (Autumm, 2002) Incredible but true: Until that year 2000 no one in the whole adhesive industry had cared to investigate that wonder of nature. So I printed the article. Incidentally, I had been reading about 5S and 5Whys. So I spent over a week with my colleague Mr. Obata asking Why Why Why those hairs are triangle base shaped. Why? To me it made no sense from a cost benefit analysis perspective unless, of course there was a good reason ... but the problem was that we could not guess what was the reason nor the function or purpose of such impossible shape. Using Five Why Anyway we decided to apply the Five Whys and after about two weeks and reading many papers we came across a paper that measured how much energy a gecko spent climbing. It turned out that geckos spend very little energy when climbing walls (according to R. Full lab at Stanford). Bang! Could it be that the triangle shape was related to energy expenditure? That was the number one suspect, but How? Well, the obvious course of action would be to make hairs of different shapes and see which one more efficient, but how to make them? Micro fabricating is expensive even if you are in Tokyo. Dead end. In another paper we read that when gecko walks they detach each foot by peeling. This made sense: peeling a scotch tape 105 Gecko foot close up. Autumn et al. PNAS. September 17, 2002, vol. 99 no. 19. 12255. Triangle shapes! Why?

106. Chapter 4 > Case Studies >Applying Five Whys to boost R&D 106 from a wall is easier than detaching a strip all at once. So what we had according to the energy efficiency hypothesis is: △ hair + peeling motion ⇒ more efficient than other shapes such as ⃝ base. How to check if the triangle hairs are more efficient than circular ones? Since the assumptions so far were purely mechanical, (and we had no other means), we decided that this principle should hold true regardless of the attraction force type: magnetic, gravity, electrostatic... Since we didn’t have enough funds (only $6000 from Titech VBL) to build a Van der Waals based prototype we decided to go with magnetic force (Force substitution hypothesis). From basic mechanics we also knew that whatever principle was favoring a triangle shape it should scale with size too. From here we build magnetic prototypes of gecko foot with about 100 hairs. 106 Depiction of force Moments at play when detaching a gecko hair. (Berengueres, 2007). © IOP Publishing. Reproduced by permission of IOP Publishing. All rights reserved. Triangle shapes. Why? Why? Must be easier to detach by peeling motion (Energy efficiency hypothesis) Why? Footprint asymmetry decreases peak forces Aha! Energy efficiency in climbing systems is related to peak forces only! Wicked problem solved!

107. Chapter 4 > Case Studies >Applying Five Whys to boost R&D 107 This was great because it was cheap and you could really see what was going on when it attaches and detaches from a wall. (iron only walls). We could see the mechanics, stresses, moments; we could feel the forces with our bare hands without using expensive machines. We tested the peeling motion, how it attaches and detaches and... The Aha! moment When the shape was triangular it turns out a hair is twice as easy to detach by peeling motion than if it is circular! As it turns out peak detachment force is a very good p r e d i c t o r o f c l imb i n g e n e r g y expenditure video. Reflection Thanks to 5Whys we produced about 7 papers, won a Materials Research Society prize, we were featured in Nature news and filed a patent. Using Analogy of cheap magnets instead of expensive Van Der Waals force is a typical creativity trick (analogy). If you are interested to be more creative Edward de Bono books explain the main creativity skills (lateral thinking, six thinking hats). However, 107 Comparison of two footprints by the minimum energy path. (Berengueres, 2007). © IOP Publishing. Reproduced by permission of IOP Publishing. All rights reserved. de Bono’s books pioneered thinking methods.

108. Chapter 4 > Case Studies >Applying Five Whys to boost R&D 108 there is no substitute for persistence and serious work. A token: At the time I was sleeping in the lab 4 out of 7 days and showering in the university shower. A sign that you are on the right research track is when you find something that cannot be explained by common sense principles. Follow-up Soon after we decided to build Spiderman magnetic gloves. To do this we decided to use artificial deadlines to motivate us and add to the sense of crisis (Toyota). Deadlines worked very well for us. However, the best deadlines were the ones that are real, for example an IEEE IROS conference deadline. Another ideo/kaizen tool we heavily used was iterative prototyping. Even though it seems very wasteful to over prototype, rather than planning in big steps, we felt that it was the right way to do things, a little humble step every time. (See the fable of the Tortoise and the Hare.) Ken using gecko principles to climb as efficiently as possible. To date this is the most energy efficient, human-size climbing system ever developed. (Berengueres, 2006). © IEEE. 108

109. Chapter 5: To Learn More Karen Endicott/Thayer School of Engineering at Dartmouth

110. Links to Multimedia 1. Warm up #1 - Sir Ken Robinson on Creativity http:// w w w. t e d . c o m / t a l k s / ken_robinson_says_schools_kill_creativity.html 2. Warm up #2 - Three ideo projects: Dilbert, Prada and Submarine by David Kelley: The future of design is human centered https://www.youtube.com/watch? v=eXndL3TNCmo 3. The Marshmallow challenge video h t t p : / / marshmallowchallenge.com/ 4. Charlie Rose interviews David Kelley for CBS 60 Minutes http://www.cbsnews.com/video/watch/? id=50138327n 5. Ideo Shopping cart project for ABC nightlife, www.youtube.com/embed/M66ZU2PCIcM 6. Charlie Rose/ BloombergTV follow up interview on ‘creative confidence’ book http://www.bloomberg.com/ video/-creative-confidence-charlie-rose-10-29- XkkPiqBVT16wi8VLB~EB3w.html 7. D. Kelley timeline by Bloomberg BusinessWeek, http:// www.businessweek.com/articles/2013-10-24/ideos-david- kelley-how-did-i-get-here 8. d.School 90 minute G i f t workshop, h t t p : / / dschool.stanford.edu/dgift/ 9. I d e o Wo r k s h o p To o l k i t p d f h t t p : / / designthinkingforeducators.com/ 10.How to interview http://dschool.stanford.edu/dgift/chart-a- new-course/ 11.Bandura Talk by Kelley http://www.ted.com/talks/ david_kelley_how_to_build_your_creative_confidence.h tml 12.Tina Seelig talk http://ecorner.stanford.edu/ authorMaterialInfo.html?mid=2266 13.Toyota the Global Story https://www.youtube.com/ watch?v=T5zcCk-uF3g 14.Planeta Zara https://www.youtube.com/watch? v=ALPpvzgFElg 15.Cool down #1 Design & Thinking movie. This un flashy movie features interviews with Tim Brown and others in their own offices. http://designthinkingmovie.com/ 16.Cool down #2 Innovation by Design video. The Aspen I d e a s F e s t i v a l . 2 0 1 3 ( i Tu n e s U) h t t p s : / / itunes.apple.com/us/itunes-u/innovation-by-design/ id775460758?mt=10 Background Music for Workshops and sessions 17.Gift workshop http://dschoolmixtapes.blogspot.com/ 110 Chapter 5 > To Learn More > References

111. 18.Course closing remarks. You can get it if you really want by Desmond Drekker https://itunes.apple.com/us/album/ made-in-dagenham-music-from/id402892850# Journal and Book References 1. Plattner, H., Meinel, C., & Leifer, L. (2014) Design Thinking Research. 2. Liker, J. K. (2004). The Toyota Way. 3. Elberse & Thomas Dye. (2012). Sir Alex Ferguson: Managing Manchester United. Harvard Business Publishing. 4. Meyers-Levy, J., & Zhu, R. J. (2007). The influence of ceiling height: The effect of priming on the type of processing that people use. Journal of Consumer Research, 34(2), 174-186. 5. Bowdon, T. B. (2010). 50 Psychology Classics. Nicholas Brealey Publishing. 6. Magee, D. (2003). Turnaround: How Carlos Ghosn Rescued Nissan. HarperCollins. 7. Kelley, T., & Littman, J. (2005). The ten faces of innovation: IDEO’s Strategies for Defeating the Devil’s Advocate and Driving Creativity Throughout your Organization. New York: Double Day. 8. Brown, T., & Katz, B. (2011). Change by design. Journal of Product Innovation Management, 28(3), 381-383. 9. Berengueres, J., Alsuwairi, F., Zaki, N., & Ng, T. (2013, March). Gamification of a recycle bin with emoticons. In Proceedings of the 8th ACM/IEEE international conference on Human-robot interaction (pp. 83-84). IEEE Press. 10. Berengueres, J. (2007). The Toyota production system re-contextualized. Lulu Enterprises UK Limited. 11. Berengueres, J., Urago, M., Saito, S., Tadakuma, K., & Meguro, H. (2006, December). Gecko inspired electrostatic chuck. In Robotics and Biomimetics, 2006. ROBIO'06. IEEE International Conference on (pp. 1018-1023). IEEE. 12. Autumn, K., Sitti, M., Liang, Y. A., Peattie, A. M., Hansen, W. R., Sponberg, S., ... & Full, R. J. (2002). Evidence for van der Waals adhesion in gecko setae.Proceedings of the National Academy of Sciences, 99(19), 12252-12256. 13. Blanco, X. R., & Salgado, J. (2004). Amancio Ortega, de cero a Zara: el primer libro de investigación sobre el imperio Inditex. La esfera de los libros. 14. Esslinger, H. (2009). A fine line: How design strategies are shaping the future of business. John Wiley & Sons. 15. Tadao, A. (1995). Tadao Ando: Complete Works. 16. Hsieh, T. (2010). Delivering happiness: A path to profits, passion, and purpose. Hachette Digital, Inc.. 111

112. Acknowledgments This book would have not been possible without: Kenji Kurihara of Denso /Kentuky, who invited me to midnight undercover factory tours in Denso Kariya in 2007. Kunio Takahashi, Tokyo Institute of Technology, who invited me to visit Toyota factories with Toyohashi University. Ferran Pujol of McKinsey & Co. Chile, for awesome discussions about best lean practices. Antoni Elias Fuster, who organized the first Creativity and Innovation class at UPC Barcelona in 1999. Julie Grahame who provided artworks. Hasso Plattner, who provided reprints. Students of Design Thinking IBLC 124, whose experiences and enthusiasm are part of this book. Timothy Gus Hegstrom, dean of UAE University College, who supported this book. Tina Seelig, Executive Director Stanford Technology Ventures Program, who provided insightful comments. Hugo Tschirky, Professor Emeritus ETH Zurich, who taught me the Innovation Matrix method in Tokyo.

113. Dr. Jose Berengueres joined UAE University as Assistant Professor in 2011. He received MEE from Polytechnic University of Catalonia in 1999 and a PhD in bio-inspired robotics from Tokyo Institute of Technology in 2007. He has authored books on: The Toyota Production System Design Thinking Human Computer Interaction UX women designers Business Models Innovation He has given talks and workshops on Design Thinking & Business Models in Germany, Mexico, Dubai, and California.

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