An increasingly complex ecosystem requires business leaders to adopt a different kind of skillset and mindset, a mindset that is common among design professionals.

1. EXERCISE #1:
“What is it that
designers do?”

2. Business needs
design now, more
than ever.

3. “
Design, in short, is becoming an ever more
important engine of corporate profit: It's
no longer enough simply to outperform the
competition; to thrive in a world of
ceaseless and rapid change, businesspeople
have to outimagine the competition as well.
They must begin to think – to become –
more like designers.
-Roger Martin, dean of the Rotman B-school
http://www.fastcompany.com/magazine/109/open_design-tough-love.html

4. “
Design, in short, is becoming an ever more
important engine of corporate profit: It's
no longer enough simply to outperform the
competition; to thrive in a world of
W hat kind
ceaseless and rapid change, businesspeople
of – to sign?
have to outimagine the competition as well.
They must begin to think debecome –
more like designers.
-Roger Martin, dean of the Rotman B-school
http://www.fastcompany.com/magazine/109/open_design-tough-love.html

5. Product design

6. Product
Design
Experience
Design

7. Product
Design
Experience
Design
Design of
Business

8. Digital Music,
c.2001
Design of
Business

9. Hard
Drive?
Flash
drive?
MP3 CD?
‘Rip’ my CD?
Digital Music,
c.2001
MP2?
MP AIFF?
what?
Wav?
MP3? Design of
Business

10. Hard
Drive?
Flash
drive?
MP3 CD?
‘Rip’ my CD?
“No Market
MP2?
Leader”
MP AIFF?
what?
Wav?
MP3? Design of
Business

11. Hard
Drive?
Flash
drive?
MP3 CD?
‘Rip’ my CD?
MP2?
MP AIFF?
what?
Wav?
MP3? Design of
Business

12. Hard
Drive?
Flash
drive?
MP3 CD?
‘Rip’ my CD?
“value of the
MP2? network” Design.pdf
MP AIFF?
www.andrewhargadon.com/Relea
se/Hargadon_DMR_Leading_by_
what?
Wav?
MP3? Design of
Business

13. lifestyle devices
easy
importing
of music
from CDs
and other
‘sources’
Product
Design
(ahem!)
transparent Experience
digital audio Design
formats
Design of
Business

14. Design as
outcome
Design as
process

15. Design as
outcome
Design as
process Jess McMullin
www.bplusd.org

16. Design as
outcome
Design as
process Jess McMullin
www.bplusd.org

17. Design as
outcome
Design as
process Jess McMullin
www.bplusd.org

18. Design as
outcome
Design as
process

19. skills
same thinking tion)
applica
(d ifferent
Design as
outcome
Design as
process

20. skills
same thinking tion)
applica
(d ifferent
...and a
Design as different
perspective
outcome to traditional
strategy-
making
Design as
process

21. Business needs
design now, more
than ever.

22. Business needs
Why now?
design now, more
than ever.

23. Why design is
neede d now!
ANSWER #1:
the limits of efficiencies.

24. New sources of competitive advantage:
1960s & 1970s
Making things cheaper
Advantage from Cost Division of labor, MTS,
mass production
1980s & 1990s
Making things better
Advantages from Quality and Speed Lean, JIT,
exible specialization, automation
2000s
Making better things
Advantages from Aesthetics and Authenticity,
Design, innovation, uniqueness
Source: Stuart Rosenfeld, Regional Technology Strategies, Inc. (2006)

25. this view leads to ‘design’
as a differentiator:

26. this view leads to ‘design’
as a differentiator:
But ‘design’ in this sense is about
something you produce - an outcome.

27. this view leads to ‘design’
as a differentiator:
What if the
Strategy is
flawed?
But ‘design’ in this sense is about
something you produce - an outcome.

28. Why design is
neede d now!
ANSWER #2:
increasingly complex
interdependent ecosystems

31. http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html

32. http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html
Coopetition

33. http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html
Coopetition
3rd Party Developers

34. http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html
Coopetition
Government Regulations
3rd Party Developers

35. http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html
Global Market
Coopetition
Government Regulations
3rd Party Developers

36. http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html
Global Market
Coopetition
“The iPhone is a cool product.
But it can be revolutionary if
it becomes a cool ecosystem.”
Government Regulations
3rd Party Developers Bruce Nussbaum, Business Week

37. increasingly complex

38. commoditiz ation of goods & services
increasing interdependence
mergers & acquisitions
environmental degradation
economic & political uncertainty
rate of technology change complex
increasingly
new forms of com
petition
globalization
social change a networked economy
deregulation & privatization
a value chain that can’t be controlled

39. The long term winners in complex
ecologies are those that fit with an
environment, compete within a
context of cooperation, and
create systems that become
increasingly complex while
remaining extremely flexible.

40. “
...we must understand that businesses are complex systems;
each is composed of myriad independent quot;partsquot; (employees,
information systems, teams, customers, partners, and so on)
that work together to meet business goals. What makes them
complex is their endless variety of parts (e.g., no two
employees are the same) and the sophisticated web of
relationships they make up.
This inherent complexity makes the behavior of the business
largely unpredictable, and generally uncontrollable by those
relatively few parts in leadership positions (just as ant colonies
or bee swarms are not controlled by their respective queens).
-Marc Rix, Chaotic IT
http://chaoticit.blogspot.com/2007/02/chaotic-innovation-give-mavericks-keys.html

41. organizations as
organisms

42. “Wait, are we talking about
business or biology?”

43. “
My countless conversations with boards of
directors and senior management have
revealed that these people are unfamiliar
with current thinking... thinking that has
been accepted by scientists and philosophers
for decades.
These very same breakthroughs in thinking
are responsible for generating the
technologies that are reshaping life for
everyone in the world and are being applied
in every science and by virtually every
master practitioner in all fields of human
endeavor. Politics, business, and education
have managed to remain far behind in their
integration of new thinking.

44. THE PROBLEM:
We are no longer in an
Industrial Era.
(yet we still manage things
as if we were)

45. EXERCISE #2:
e or
The next time you are sitting in an executiv untable
management mee ting, or anywhere that people acco
d in a
for the perfor mance of a corporation are engage
id.
discussion, listen very carefully to what is sa
a new
Listen to the idea s, and notice if they resonate with
of
way of thinking - a way of thinking that is capable
rapidly
achieving a marketplace advantage in today’s
changing environment.
d notice
As you listen, set aside the current buzzwords an
erent from
what remai ns. Do you hear theory that is diff
s ago?
what you might have heard decade

46. “Beat the competition!”
What kind of thinking would produce this
statement?
Is this a finite game with agreed on rules and
a clear winner? Are we at war with someone?
Are there clearly defined players? Are the
stakes defined? How will we know when
we’ve won? Is this really a worthwhile goal?

47. A complex ecosystem
requires business leaders to
adopt a different kind of
skillset and mindset.

48. Business needs
design now, more
than ever.

49. Business needs
design
M
a Design now, more
indset!
than ever.

50. This is not about having
‘design’ in your title (or not).
This is about a mindset and
skillset that can produce
better results.
A ‘design’ mindset.

51. “
The trouble is, when confronted with a mystery,
most linear business types resort to what they
know best: They crunch the numbers, analyze,
and ultimately redefine the problem “so it isn’t a
mystery anymore; it’s something they’ve done 12
times before,” Martin says. Most don’t avail
themselves of the designer’s tools — they don’t
think like designers — and so they are ill-prepared
for an economy where the winners are
determined by design.
http://www.fastcompany.com/magazine/93/design.html

52. “So, what are the differences?”

54. planning vs thinking

55. planning vs thinking
solving vs framing

56. planning vs thinking
decision attitude vs design attitude
solving vs framing

57. planning vs thinking
decision attitude vs design attitude
exhortations vs strategic intent
solving vs framing

58. planning vs thinking
decision attitude vs design attitude
exhortations vs strategic intent
solving vs framing
process vs play

59. planning vs thinking
decision attitude vs design attitude
exhortations vs strategic intent
solving vs framing
process vs play
analysis vs synthesis

60. planning vs thinking
decision attitude vs design attitude
exhortations vs strategic intent
are stillsolving vs framing
These tant
impor
process vs play
analysis vs synthesis

61. planning vs thinking
decision attitude vs design attitude
exhortations vs strategic intent
are stillsolving vs framing
These tant
impor
Bu t these
process vs play
ar e vital
analysis vs synthesis

62. Design minded folks are really good
at: Observation. Framing problems.
Prototyping solutions. Working with
imperfect data. Focusing on people.
Caring about the details. Creating
narratives. Envisioning unseen
opportunities. Casting visions of the
future. Synthesizing information.
Systems thinking. Abductive thinking.

63. Increasing Complexity
needs really good
Problem Framing
to enable
Revolutionary Solutions

64. Increasing Complexity
needs really good
Problem Framing
Design thinking
to enable i s needed here!!
Revolutionary Solutions

65. EXERCISE #1:
“What is it that
designers do?”

66. “Everyone designs who devises
courses of action aimed at
changing existing situations
into preferred ones.”
-
Herbert Simon

67. What is possible?
Not what is likely, what’s
probable, or what’s predictable.
What is possible?

68. “The best way to predict the future
is to invent it.”
- Alan Kay

69. ME MY PERSONAL SITE
THE BEST WAY TO REACH ME

70. Highly
recommended
reading:
www.andrewhargadon.com/Release/Hargadon_DMR_Leading_by_Design.pdf