Parts Without a Whole? – The Current State of Design Thinking Practice in Organizations

Parts Without a Whole? – The Current State of Design Thinking Practice in Organizations
D-14482 Potsdam, Germany http://www.hpi.uni-potsdam.de Wort-Bild-Marke | Zusatz einzeilig | Pantone uncoated | Größe 40 | Name: hpi_logo_pcu_wb_sl1 Parts Without a Whole? The Current State of Design Thinking Practice in Organizations Jan Schmiedgen (HPDTRP, Team “Impact by Design”) @ Design Thinking Week Warsaw 2015,  Centrum Zarządzania Innowacjami i Transferem Technologii Politechniki Warszawskiej Nov 6th 2015
2 People Rewards Process Structure Strategy
We did a study Goal: disclose the continuum of design thinking applications in practice WITHOUT A WHOLE? P A R T S The Current State of Design ThinkingPractice in Organizations Jan Schmiedgen Holger Rhinow Eva Köppen Christoph Meinel study report Hasso-plattner-Institute,university of potsdam, March 2015 3 - 1 -   Survey (235 qualified responses) Online questionnaire sent to an international mailing list of design thinking practitioners and spread via social media channels. 1.1 - Closed questions Basic statistics and interrogation   of some constructs from literature 1.2 - Open-ended questions Patterns of interpretation and   emerging themes - 2 -  Qualitative   Interviews Individual interviews with  16 selected practitioners   (from nine organizations)   based on the first analyses - 3 - Final Analysis bit.ly/HPI-DT-study thisisdesignthinking.net
4Heat Map: Responses per country (n = 165)0 100%
Not only for start-up’s! Design thinking has become respectable. 5Size of organizations in the sample: n=118 (EC SME/US Department of Trade classification) ≥ 250 50 to 249 10 to 49 1 to 9 Medium > # of Employees:  50–249 12%. Small > # of Employees:   10–49 26%. Large > # of Employees:  250–9999 36%. Micro > # of Employees:   1–9 26%.
The corporates are serious Profit-oriented organizations dominate the sample profit-oriented non-profit governmental public-private partnership other 6n = 219; each organization included only once 65% 15,91% 8,64% 65% 8,18% 2,27%
People Rewards Process Structure Strategy 1.36%, Accommodation and food service activities 0.68%,   Activities of extraterritorial organizations and bodies 2.04%,  Administrative and support service activities 2.04%,  Arts, entertainment and recreation 1.36%,  Construction 18%,  Education 1.36%,  Electricity gas, steam and air conditioning supply, 6.80%,  Financial and   insurance activities 2.04%,  Human health and social work activities 4.76%,  Manufacturing 22%,   Information and communication 19%,  Other service activities 8.84%,  Professional, scientific  and technical activities 3.40%, Public administration and defense; compulsory social security 1.36%,  Transportation and storage 4.76%,  Wholesale and retail trade; repair of motor vehicles and motorcycles Industry sectors (n = 147) 41% 1 23 4 Design thinking is everywhere
Seventy-five percent of our respondents have four years or less of design thinking experience Some however practice it for a long time already 8 0 10 20 30 40 50 60 70 80 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 * n = 223; * organizations that just started in the first half of 2014
People learn design thinking via a multitude of channels Some managers even lead teams without knowing the concept themselves Educational institution I taught it to myself Own organizational (internal) coaches Other channels External agency, consultancy or coach I haven’t learned it yet* 15 24 29 46 81 145 9 How did you learn design thinking? (multiple answers possible; n = 232 respondents with n = 340 answers),   * = Managers who lead design thinking teams but do not practice the concept themselves. 15
  [1]   Iterative working   [2]   »Alternative« approach to problem solving   [3]   More empathy for the user   [4]   Improved organization of collaboration   … … 10 ♂♂♂♂♂♂♂ ♂ n = 219, coded free-text answers What is design thinking for you personally? We are interested to find out what you refer to as »design thinking«.
Design thinking know-how is predominantly localized with   specialized corporate functions somewhere in organizations 11How is design thinking embedded into your corporate culture? (n = 206) 27,2% 17,5% 72,3% 21,4% on the periphery somewhere in the organization at the core of the organization intrinsic to organization e.g. booked as external resource e.g. Ux or R&D   department overall culture e.g. for strategic decision making
Design thinking activities Where are they localized in organizations? 12 Research and Development Marketing Consulting (Internal & External) IT Sales Human Resources Operations and Manufacturing Finance and Accounting Other 6 11 24 37 43 49 66 85 125 To your knowledge: In which areas of your organization is/was design thinking applied? (n = 208; multiple answers possible) 85 125
A Spectrum of Design Thinking Adoption “How was design thinking applied in
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 14
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 15 Service provision for internal clients – or – Internal change program.
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 16 New product and  service development
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 17 Better alignment, collaboration and knowledge transfer
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 18 Gaining empathy and devlop a better understanding of customers and users
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 19 Improve internal business processes and organizational structures
20 Finance & Accounting HR R&D Operations & Manufacturing IT Marketing Other Sales Consulting 3%2%2%3% 54% 46%42% 37% 26%26%23% 8%10% 38% 37% 26% 21% 26%26% 23% 19% 10% 8% 17% 29% 39% 47%47% 52% 72% 80% internal only internal & external external only otherHow was design thinking applied in ‘corporate function’?, n = 221 Operations &  Manufacturing Finance &   Accounting n = 10 n = 36 n = 120 n = 19 n = 47 n = 84 n = 38 n = 41 n = 64 T5: Improve internal business processes and organizational structures Design thinking is not only used to innovate market offerings
20 Finance & Accounting HR R&D Operations & Manufacturing IT Marketing Other Sales Consulting 3%2%2%3% 54% 46%42% 37% 26%26%23% 8%10% 38% 37% 26% 21% 26%26% 23% 19% 10% 8% 17% 29% 39% 47%47% 52% 72% 80% internal only internal & external external only otherHow was design thinking applied in ‘corporate function’?, n = 221 Operations &  Manufacturing Finance &   Accounting n = 10 n = 36 n = 120 n = 19 n = 47 n = 84 n = 38 n = 41 n = 64 “compliance management: find creative ways how to get staff to comply to procedure” T5: Improve internal business processes and organizational structures Design thinking is not only used to innovate market offerings
20 Finance & Accounting HR R&D Operations & Manufacturing IT Marketing Other Sales Consulting 3%2%2%3% 54% 46%42% 37% 26%26%23% 8%10% 38% 37% 26% 21% 26%26% 23% 19% 10% 8% 17% 29% 39% 47%47% 52% 72% 80% internal only internal & external external only otherHow was design thinking applied in ‘corporate function’?, n = 221 Operations &  Manufacturing Finance &   Accounting n = 10 n = 36 n = 120 n = 19 n = 47 n = 84 n = 38 n = 41 n = 64 “compliance management: find creative ways how to get staff to comply to procedure” “create a dashboard for the CFO” T5: Improve internal business processes and organizational structures Design thinking is not only used to innovate market offerings
20 Finance & Accounting HR R&D Operations & Manufacturing IT Marketing Other Sales Consulting 3%2%2%3% 54% 46%42% 37% 26%26%23% 8%10% 38% 37% 26% 21% 26%26% 23% 19% 10% 8% 17% 29% 39% 47%47% 52% 72% 80% internal only internal & external external only otherHow was design thinking applied in ‘corporate function’?, n = 221 Operations &  Manufacturing Finance &   Accounting n = 10 n = 36 n = 120 n = 19 n = 47 n = 84 n = 38 n = 41 n = 64 “compliance management: find creative ways how to get staff to comply to procedure” “design the process of relocating people” “create a dashboard for the CFO” T5: Improve internal business processes and organizational structures Design thinking is not only used to innovate market offerings
20 Finance & Accounting HR R&D Operations & Manufacturing IT Marketing Other Sales Consulting 3%2%2%3% 54% 46%42% 37% 26%26%23% 8%10% 38% 37% 26% 21% 26%26% 23% 19% 10% 8% 17% 29% 39% 47%47% 52% 72% 80% internal only internal & external external only otherHow was design thinking applied in ‘corporate function’?, n = 221 Operations &  Manufacturing Finance &   Accounting n = 10 n = 36 n = 120 n = 19 n = 47 n = 84 n = 38 n = 41 n = 64 “compliance management: find creative ways how to get staff to comply to procedure” “design the process of relocating people” “create a dashboard for the CFO” “introduce the T- profile to better choose applicants” T5: Improve internal business processes and organizational structures Design thinking is not only used to innovate market offerings
20 Finance & Accounting HR R&D Operations & Manufacturing IT Marketing Other Sales Consulting 3%2%2%3% 54% 46%42% 37% 26%26%23% 8%10% 38% 37% 26% 21% 26%26% 23% 19% 10% 8% 17% 29% 39% 47%47% 52% 72% 80% internal only internal & external external only otherHow was design thinking applied in ‘corporate function’?, n = 221 Operations &  Manufacturing Finance &   Accounting n = 10 n = 36 n = 120 n = 19 n = 47 n = 84 n = 38 n = 41 n = 64 “compliance management: find creative ways how to get staff to comply to procedure” “design the process of relocating people” “structuring logistics processes”“create a dashboard for the CFO” “introduce the T- profile to better choose applicants” T5: Improve internal business processes and organizational structures Design thinking is not only used to innovate market offerings
20 Finance & Accounting HR R&D Operations & Manufacturing IT Marketing Other Sales Consulting 3%2%2%3% 54% 46%42% 37% 26%26%23% 8%10% 38% 37% 26% 21% 26%26% 23% 19% 10% 8% 17% 29% 39% 47%47% 52% 72% 80% internal only internal & external external only otherHow was design thinking applied in ‘corporate function’?, n = 221 Operations &  Manufacturing Finance &   Accounting n = 10 n = 36 n = 120 n = 19 n = 47 n = 84 n = 38 n = 41 n = 64 “compliance management: find creative ways how to get staff to comply to procedure” “design the process of relocating people” “rethink sales and bidding processes” “structuring logistics processes”“create a dashboard for the CFO” “introduce the T- profile to better choose applicants” T5: Improve internal business processes and organizational structures Design thinking is not only used to innovate market offerings
20 Finance & Accounting HR R&D Operations & Manufacturing IT Marketing Other Sales Consulting 3%2%2%3% 54% 46%42% 37% 26%26%23% 8%10% 38% 37% 26% 21% 26%26% 23% 19% 10% 8% 17% 29% 39% 47%47% 52% 72% 80% internal only internal & external external only otherHow was design thinking applied in ‘corporate function’?, n = 221 Operations &  Manufacturing Finance &   Accounting n = 10 n = 36 n = 120 n = 19 n = 47 n = 84 n = 38 n = 41 n = 64 “compliance management: find creative ways how to get staff to comply to procedure” “design the process of relocating people” “redesign the effectiveness of the bonus model”“rethink sales and bidding processes” “structuring logistics processes”“create a dashboard for the CFO” “introduce the T- profile to better choose applicants” T5: Improve internal business processes and organizational structures Design thinking is not only used to innovate market offerings
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 21 Improve internal business processes and organizational structures It seems easier to   start internally and get acquainted to DT: There  is so much in need of improvement …
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 22 Commercial innovation & more efficient, insights- driven marketing campaigns
23 “added value communication to sell …   in a more effective way” “better marketing and sales material” “better positioning” “brand redesign” T6: »Commercial innovation« and more efficient, insights-driven marketing campaigns A natural evolution towards design thinking proficiency?
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 24 Commercial innovation & more efficient, insights- driven marketing campaigns Organizations tend to begin in areas, which are perceived as ‘natural neighbours’, ‘easy’ or ‘quick wins’.
T6: »Commercial innovation« and more efficient, insights-driven marketing campaigns A natural evolution towards design thinking proficiency? Image source: Intuit’s SmallBusinessBigGame initiative (www.smallbusinessbiggame.com)   “[Commercial innovation] is not  the best space to innovate in.”   “[But you have] to be  opportunistic. It’s easier to  swim downstream first.” Karen Hanson, Intuit Vice President of Design Innovation
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 26 Internal staff training for a human/customer- centered mindset
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 27 Toolbox
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 28 Improve teaching and training formats
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 29 Increase team creativity
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 30 Customer engagement and co-creation
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 31 PR and reputation management vehicle
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 32 Service & experience design improvement
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 33 Test assumptions; iterate solutions
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 34 BMD and go-to- market strategy development
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 35 Attractive recruiting tool
T16: Attractive recruiting tool Design thinking as a public relations  and reputation management vehicle “part of our recruiting and   candidate experience” “demonstrate action leadership” “look good at trade fairs” “employer branding” “publicity” 36
“part of our recruiting and   candidate experience” “demonstrate action leadership” “look good at trade fairs” “employer branding” “publicity” 37 T16: Attractive recruiting tool Design thinking as a public relations  and reputation management vehicle
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 38 Attractive recruiting tool Organizations believe that design thinking is how   people want (them) to work.
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 39 More efficient meetings and arrangements
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 40 Demand generation and customer acquisition
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 41 Improvement of existing innovation process
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 To your knowledge: How was design thinking applied in #department? Areas of application for design thinking in organizations > 20 occurrences < 5 occurrences < 8 occurrences < 20 occurrences Emerging patterns, isolated from 208 free-text answers (not all are mutually exclusive, ordered according to their frequency of mention). 42 Improve style of design outcomes
The ‘utilitarian and spiritual poles’ of a lively debate 43 Tool(box) Mindset mechanistic, technocratic spiritual, philosophical Method / Process Methodology prescriptive discourses descriptive discourses Respondents and interviewees answers could be grouped along a spectrum between two extreme poles “toolbox” “technique of   interviewing users” “the five steps of …” “a combination of …” “A set of …” “it’s how I live ...” “how you work ...”
The impact of design thinking? 44 71%of respondents say that design thinking improved their working culture. What is your impression of the impact of design thinking in your organization?  (Multiple answers possible, n = 181 for all organizations; *only n = 111 for-profit organizations received these questions)
The impact of design thinking? 44 71%of respondents say that design thinking improved their working culture. 69%of respondents say that design thinking makes their innovation processes more efficient. What is your impression of the impact of design thinking in your organization?  (Multiple answers possible, n = 181 for all organizations; *only n = 111 for-profit organizations received these questions)
The impact of design thinking? 44 71%of respondents say that design thinking improved their working culture. 69%of respondents say that design thinking makes their innovation processes more efficient. 29%of respondents say that design thinking helps them increasing their sales. * What is your impression of the impact of design thinking in your organization?  (Multiple answers possible, n = 181 for all organizations; *only n = 111 for-profit organizations received these questions)
10%of our respondents stopped their officially supported design thinking initiatives. Sounds good, doesn’t it? Well, the path can be a rocky one … 45 Design thinking  as one-off affair 1 Lacking understanding and  support from management 2 Failed diffusion and  implementation 3 Does your organization still use design thinking until today? (n = 235); Why did your organization stop using design thinking? (n = 23)
  “We just tried it one time - we were never   able to bring it back to our companies.”   “Brainstorming was much faster and   needed less management resources.”   “We had a lot of problems, convincing  people that we are doing useful work.  Just the name ‘design thinking’. People  […] laughed at it.” 46Why did your organization stop using design thinking? (n = 23) Clustered themes from 23 free-text answers plus one selected example answer per category Sounds good, doesn’t it? Well, the path can be a rocky one … Design thinking  as one-off affair 1 Lacking understanding and  support from management 2 Failed diffusion and  implementation 3
Design thinking never comes alone The ‘hen-egg challenge’ of innovation capability building 47 Building   Innovation  Capabilities Using   Design  Thinking Changing  Mindset An illustration of the interplay between innovation capabilities (IC) and the use of DT, in relation to building innovation capabilities in an organization. Carlgren, L. (2013). Design thinking as an enabler of innovation: Exploring the concept and its relation to building innovation capabilities (Doctoral thesis). Chalmers University of Technology, p. 62 Start everywhere simultaneously - but in most contexts: start small!
Wort-Bild-Marke | Zusatz einzeilig | Pantone uncoated | Größe 40 | Name: hpi_logo_pcu_wb_sl1 Case Study #1: Intuit Deconstructing the »Design for Delight« (D4D) program
Intuit’s core principles 49Source: © Intuit 2015
50 People Rewards Process Structure StrategyStrategy
‘Democratized innovation’ Intuit’s most pronounced building blocks   Unstructured Time  10% time to pursue own ideas   200 People Innovation Catalysts Network  Drive D4D in the DNA to drive innovation   Rapid Experiments, Lean Start-ins  Testing hypotheses with customers ’in the wild’   Idea Jams  Dedicated day to move ideas forward   Innovation Awards  3 months time for top innovators 54Source: © Intuit 2015
‘Democratized innovation’ Intuit’s most pronounced building blocks   Unstructured Time  10% time to pursue own ideas   200 People Innovation Catalysts Network  Drive D4D in the DNA to drive innovation   Rapid Experiments, Lean Start-ins  Testing hypotheses with customers ’in the wild’   Idea Jams  Dedicated day to move ideas forward   Innovation Awards  3 months time for top innovators 56Source: © Intuit 2015 O d t RAPID EXPERIMENTATION TOOLS - the NEXT tool Hypotheses - OUR VISION - A bold statement about the opportunitybased on our customer-backed insight(s) OUR IDEA - A concept that delivers on our vision and customer needs 2 Hypothesis = “If we do X, Y% of people willbehave in way Z” Our Experiments -Brainstorm potential experiments we can run quickly (starting today/tomorrow for example) to test our hypothesis. Select 2 experiments, build them and go out in the real world to test them. ? Most important Not as important What did we learn? -What did our experiments reveal about our hypothesis. What did we learn? What surprised us? Did we uncover any insights? How would we run the experiment differently? Our decision - Based on our learnings, what would we do next? Experiments we will run (narrow to 2) Description: Metrics: Description: Metrics: Experiment 1 Experiment 2 We invalidated our leap of faith assumption.We need to pivot our idea and go back tothe drawing board. We did NOT invalidate our leap of faith assumption. We need to run more experiments or start testing ournext leap of faith assumption. Intuit | D4D Rapid Experimentation ? Experiments we could run (go broad) Change the idea (Pivot)? Keep going (Persevere)? 3 5 4 The next decision tool NEXT OUR INSIGHT(S) - An a-ha that changes your perspective and makes you think beyond your customer’s expectations. 1 Leap of faith assumptions -Riskiest assumptions about our idea that’s keeping us up at night (if people don’t behave this way, we need to change our idea). Sequence your leap of faithassumptions and tackle themone at a time (start with riskiest) - - - - - Brainstorm a list of solutions/features that could prompt the behavior change underlined in the selected leap of faith assumption Selected leap of faith Selected hypothesis Description: Metrics: Description: Metrics: known unknown Customers expect to pay 1st employee in less than 20 minutes Pay you first employee in less than 5 minutes Employers choose to Pay Now instead of Finish Set Up Employers that choose Pay Now will write checks at a higher rate Employers thatchoose Pay Now will become billingcustomers 1 2 3 Employers choose to Pay Now instead of Finish Set Up If we enable Pay Now, 80% will complete tax set up in time for 1st tax payment If we present Pay Now, 55% will choose it Pay Now test: pay now vs. finish set up Pay now A/B test Pay now vs. finish set up # of employers who choose Pay Now Pay Now option An option within Intuit OnlinePayroll where employers can deferfull set up until after payingemployees If we present Pay Now, 55% will choose it learning: Majority of employers prefer to pay first and then finish full set up 58% chose Pay Now only 18% approved checks the same day If we enable Pay Now, 40% will run a second payroll after 2 weeks, 32% paid employees Next steps: run experiment #2 Use Paycheck City to calculate check Default tax set up and have care agents set up later Pay now with no prior payroll and safe state defaults Enable Pay Now (no prior payroll + safe state defaults) # of employers complete 2nd payroll
58 People Rewards Process Structure Strategy Process Structure
59 People Rewards Process Structure Strategy Structure Process
65 People Rewards Process Structure Strategy Structure Process Source: © Intuit 2014, Michele Marut, http://de.slideshare.net/IntuitInc/marut-convey-ux-31225838
66 included in the vision. Our Idea while highlighting the customer. Fthe outcome the user is trying to a Leap of Faith Assumptionthe customer behaviors that mustplace, and the most “unknown” asstions. ‘If you build it, they will comeat the right altitude. Our Hypotheseswith your Leap of Faith. Choose numtargets that inspire your team, andbehaviors that are measurable. Our Experimentsbehaviors that align with yourhypothesis. Collect “currency” fromcustomers as a way to measure realinterest, and encourage teams to beopen to surprises as well as collectmetrics. Make sure the experimentwill test your Leap of Faith. What did we learncritical insights because they don’tperceive them to be important.Encourage teams to build on theiroriginal insights and vision. Our decision decision is often to persevere, so pushteams to make a strong case if that’s RAPID EXPERIMENTATION TOOLS - the NEXT tool Hypotheses - OUR VISION - A bold statement about the opportunitybased on our customer-backed insight(s) OUR IDEA - A concept that delivers on our vision and customer needs 2 Hypothesis = “If we do X, Y% of people willbehave in way Z” Our Experiments -Brainstorm potential experiments we can run quickly (starting today/tomorrow for example) to test our hypothesis. Select 2 experiments, build them and go out in the real world to test them. ? Most important Not as important What did we learn? -What did our experiments reveal about our hypothesis. What did we learn? What surprised us? Did we uncover any insights? How would we run the experiment differently? Our decision - Based on our learnings, what would we do next? Experiments we will run (narrow to 2) Description: Metrics: Description: Metrics: Experiment 1 Experiment 2 We invalidated our leap of faith assumption.We need to pivot our idea and go back tothe drawing board. We did NOT invalidate our leap of faith assumption. We need to run more experiments or start testing ournext leap of faith assumption. Intuit | D4D Rapid Experimentation ? Experiments we could run (go broad) Change the idea (Pivot)? Keep going (Persevere)? 3 5 4 The next decision tool NEXT OUR INSIGHT(S) - An a-ha that changes your perspective and makes you think beyond your customer’s expectations. 1 Leap of faith assumptions -Riskiest assumptions about our idea that’s keeping us up at night (if people don’t behave this way, we need to change our idea). Sequence your leap of faithassumptions and tackle themone at a time (start with riskiest) - - - - - Brainstorm a list of solutions/features that could prompt the behavior change underlined in the selected leap of faith assumption Selected leap of faith Selected hypothesis Description: Metrics: Description: Metrics: known unknown Customers expect to pay 1st employee in less than 20 minutes Pay you first employee in less than 5 minutes Employers choose to Pay Now instead of Finish Set Up Employers that choose Pay Now will write checks at a higher rate Employers thatchoose Pay Nowwill become billingcustomers 1 2 3 Employers choose to Pay Now instead of Finish Set Up If we enable Pay Now,80% will completetax set up in time for 1st tax payment If we present Pay Now, 55% will choose it Pay Now test: pay now vs. finish set up Pay now A/B test Pay now vs. finish set up # of employers who choose Pay Now Pay Now option An option within Intuit OnlinePayroll where employers can deferfull set up until after payingemployees If we present Pay Now, 55% will choose it learning: Majority of employers prefer to pay first and then finish full set up 58% chose Pay Now only 18% approved checks the same day If we enable Pay Now, 40% will run a second payroll after 2 weeks, 32% paid employees Next steps: run experiment #2 Use Paycheck City to calculate check Default tax set up and have care agents set up later Pay now with no prior payroll and safe state defaults Enable Pay Now (no prior payroll + safe state defaults) # of employers complete 2nd payroll People Rewards Process Structure Strategy Structure Process An Intuit Innovation Experience January 29th, 2013
70 People Rewards Process Structure Strategy Source: © Intuit 2015, https://www.youtube.com/watch?v=GtgseZmJH4I People Rewards
71 People Rewards Process Structure Strategy People Rewards
72 People Rewards Process Structure Strategy Rewards People
73 People Rewards Process Structure Strategy Rewards People
Conclusion The whole can be more than the sum of its parts.  Is management ready? 74 WITHOUT A WHOLE? P A R T S The Current State of Design Thinking Practice in Organizations Jan SchmiedgenHolger RhinowEva Köppen Christoph Meinel study report Hasso-plattner-Institute, university of potsdam, March 2015 Background image: https://www.linkedin.com/pulse/making-sense-why-design-thinking-fail-gk-vanpatter
One more thing … 75 www.thisisdesignthinking.net
References   Beckman, S. L., & Barry, M. (2007). Innovation as a Learning Process: Embedding Design Thinking. California Management Review, 50(1), 25–56.   Benner, M. J., & Tushman, M. L. (2003). Exploitation, Exploration, And Process Management: The Productivity Dilemma Revisited. Academy of Management Review, 28(2), 238–256. http://doi.org/10.5465/AMR.2003.9416096   Boland Jr., R., & Collopy, F. (2004). Managing as Designing (1st ed.). Stanford: Stanford Business Books.   Carlgren, L. (2013). Design Thinking as an Enabler of Innovation: Exploring the Concept and its Relation to Building Innovation Capabilities (Doctoral thesis). Chalmers University of Technology, Gothenburg. Retrieved from http:// publications.lib.chalmers.se/publication/185362-design-thinking-as-an- enabler-of-innovation-exploring-the-concept-and-its-relation-to-building-innov   Carlgren, L., Elmquist, M., & Rauth, I. (in press). Demystifying Design Thinking: Exploring Design Thinking in Practice. Journal for Creativity and Innovation Management.   Flynn, F. J., & Chatman, J. A. (2004). Strong Cultures and Innovation - Oxymoron or Opportunity? In M. Tushman & P. Anderson (Eds.), Managing Strategic Innovation and Change: A Collection of Readings (2nd ed., pp. 234–266). Oxford University Press.   Martin, R. L. (2009a). The Opposable Mind: How Successful Leaders Win Through Integrative Thinking. Mcgraw-Hill Professional.   Martin, R. L. (2009b). The Reliability Bias - Why Advancing Knowledge is so hard. In Design of Business: Why Design Thinking Is the Next Competitive Advantage (pp. 33–56). Mcgraw-Hill Professional.   Martin, R. L. (2011). The Innovation Catalysts. Harvard Business Review, 89(6), 82–87.   Pisano, G. P., & Verganti, R. (2008). Which Kind of Collaboration Is Right for You? Harvard Business Review, 86(12), 78–86. http://doi.org/Article   Schmiedgen, J., Rhinow, H., Köppen, E., & Meinel, C. (2015). Parts Without a Whole? - The Current State of Design Thinking Practice in Organizations (Study Report No. 97) (p. 144). Potsdam: Hasso-Plattner-Institut für Softwaresystemtechnik an der Universität Potsdam. Retrieved from http:// thisisdesignthinking.net/why-this-site/the-study/   Tushman, M., & O’Reilly, C. (2004). The ambidextrous Organization: Managing evolutionary and revolutionary Change. In M. Tushman & P. Anderson (Eds.), Managing Strategic Innovation and Change: A Collection of Readings (2nd ed., pp. 276–291). Oxford University Press. 76
T5: Improve internal business processes and organizational structures Design thinking is not only used to innovate market offerings   show some examples   show distribution   tell Intuit/Citrix stories! 77 Prof.-Dr.-Helmert-Str. 2-3  14482 Potsdam  Germany Tel: +49 (0)331 5509-0  Fax: +49 (0)331 5509-129  http://thisisdesignthinking.net     Hasso-Plattner-Institut für Softwaresystemtechnik GmbH:   Impact by Design Thinking - Research Team ThankYou Holger Rhinow Jan Schmiedgen Eva Köppen
Einige “Design Thinking Ergebnisse” von Unternehmen aus unserem Sample (mit freundlicher Genehmigung der jeweiligen Organisationen) Backup
Wort-Bild-Marke | Zusatz einzeilig | Pantone uncoated | Größe 40 | Name: hpi_logo_pcu_wb_sl1 Case Study #2: Autodesk Hiring trumps retraining, and fosters ‘self-breeding
Autodesk: Design culture 80
Autodesk: Design culture 81
Autodesk 82
Wort-Bild-Marke | Zusatz einzeilig | Pantone uncoated | Größe 40 | Name: hpi_logo_pcu_wb_sl1 Case Study #3: AirBnB Design thinking
The story of AirBnB 86
AirBnB: Experience in context is king 87Photo: Snow White Project Frames (Huiyi C.,
AirBnB: Experience in context is king 87Photo: Snow White Project Frames (Huiyi C.,
AirBnB: Touchpoints and frames 88Photo: “One storyboard panel representing when a host receives a request from a potential guest.” (http://designairs.com/airbnb-insights/)
AirBnB: Empathy and space Photos: “AirBnB Office Space” (Jan Schmiedgen)
AirBnB: Insights team Photos: “AirBnB Office Space” (Jan Schmiedgen,) “Sasha from our Insights team interviews a host in Tokyo.” (http://designairs.com/airbnb-insights/)
AirBnB: Insights team Photos: “AirBnB Office Space” (Jan Schmiedgen,) “Sasha from our Insights team interviews a host in Tokyo.” (http://designairs.com/airbnb-insights/)
AirBnB: Host rejection taxonomy 91Photos: “Host Personas Detail” (Jan Schmiedgen), “Host Personas Zoom-out” (Huiyi C., https://wordsofasuperheroine.wordpress.com/tag/startups-2/)
AirBnB: Institutionalized empathy and insights measures 92Photo: “Airbnb employees and hosts share an evening of conversation in Costa del Sol, Spain.” (http://designairs.com/airbnb-design-practices-empathy/)
Wort-Bild-Marke | Zusatz einzeilig | Pantone uncoated | Größe 40 | Name: hpi_logo_pcu_wb_sl1 Case Study #4: Kaiser Permanente A fake hospital as a staff training facility
94 People Rewards Process Structure Strategy Structure Kaiser Permanente Garfield Innovation Center (https://xnet.kp.org/innovationcenter/index.html); Photo: Jan Schmiedgen
Wort-Bild-Marke | Zusatz einzeilig | Pantone uncoated | Größe 40 | Name: hpi_logo_pcu_wb_sl1 Case Study #5: Siemens China Approaching intercultural leadership challenges
98 People Rewards Process Structure Strategy Structure Source: © Bettina Maisch, Siemens China 2014

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