Design a Better Business

1. Design thinking is a powerful approach to business innovation and problem-solving

Design is fundamentally about enhancing the way you look at the world.

Look at problems differently. Design thinking provides a systematic approach to innovation that puts the customer at the center. It involves observing people and situations with fresh eyes, reframing problems as opportunities, generating many ideas, prototyping rapidly, and testing with real users. This process helps businesses move beyond incremental improvements to create breakthrough products and services.

Embrace uncertainty. A key principle of design thinking is getting comfortable with ambiguity and the unknown. Rather than trying to plan everything perfectly upfront, designers take an iterative approach of learning by doing. They make their ideas tangible quickly through prototypes and experiments, gather feedback, and evolve their concepts. This allows for faster learning and reduces the risk of investing heavily in the wrong solution.

Develop new skills. Adopting design thinking requires cultivating skills like empathy, visual thinking, experimentation, and collaboration. Organizations need to create space for creativity and give people permission to challenge assumptions. With practice, design thinking can become a powerful approach for tackling complex business challenges and uncovering new opportunities for growth and innovation.

2. Understand your customer, context, and business to drive innovation

We humans are visual, spatial creatures. To really have an impact and sum up discussions and decision points so that they'll be remembered forever, do what David Sibbet says, and capture what's been said (at least some of it) visually.

Gain customer empathy. The foundation of design thinking is developing a deep understanding of customers and their needs. This goes beyond just demographic data to really observe and engage with people in their natural environments. Use tools like customer interviews, ethnographic research, and journey mapping to uncover unmet needs and pain points.

Map the context. Look at the broader forces shaping your business environment, including:

• Technology trends
• Competitive landscape
• Regulatory environment
• Economic factors
• Social and cultural shifts

Visual tools like the Context Canvas can help capture and synthesize this information.

Analyze your business model. Thoroughly understand how your business creates, delivers, and captures value. The Business Model Canvas is a helpful framework for mapping out the key components of your business model and identifying areas for innovation. Look for opportunities to better align your offering with customer needs or leverage new technologies and partnerships.

3. Generate and explore ideas through structured ideation techniques

Ideas are just thoughts based on assumptions. On their own, ideas have little value.

Quantity over quality. The goal of ideation is to generate a large volume of ideas, not to judge or evaluate. Use techniques like brainstorming, mind mapping, and analogous thinking to push beyond obvious solutions. Aim for at least 100 ideas in a session.

Build on ideas. Great ideas often emerge from combining and evolving initial concepts. Use methods like:

• "Yes, and..." thinking to build on others' ideas
• Forced connections between unrelated concepts
• Reverse thinking (e.g. "How could we make this worse?")
• Role-playing different personas

Structure the process. While creativity can feel chaotic, using structured ideation tools helps channel thinking productively. Some effective frameworks include:

• Creative Matrix: Generate ideas at the intersection of customer needs and enabling solutions
• Business Model Canvas: Systematically explore new business model possibilities
• Wall of Ideas: Rapidly generate and cluster a high volume of ideas

4. Bring ideas to life quickly through prototyping and experimentation

Prototypes, like Dropbox's video, are not meant to be a full-blown product. They're built such that they can be experienced by the customers with the real value being the lessons learned which will ultimately lead to a better idea.

Start simple. Begin with low-fidelity prototypes using basic materials like paper, cardboard, or digital mockups. The goal is to make ideas tangible enough to gain insights, not create a polished final product. Ask "What's the simplest way to test this core concept?"

Prototype to learn. The purpose of prototyping is to answer specific questions and test assumptions. For each prototype, clearly define:

• What are you testing?
• What feedback do you need?
• How will you measure success?

Iterate rapidly. Create multiple versions, testing different aspects of your concept. Evolve your prototypes based on user feedback, increasing fidelity as you validate core assumptions. Embrace "failing forward" - each prototype teaches you something valuable.

5. Validate assumptions and pivot based on real-world feedback

After all, an idea is nothing more than an idea: something that seems great on paper based on a bunch of assumptions. Ideas are abstract and have little substance on their own.

Identify key assumptions. Every business idea is built on assumptions about customers, the market, and your solution. Use tools like the Riskiest Assumption Canvas to surface and prioritize the critical beliefs that need to be true for your concept to work.

Design smart experiments. Create targeted tests to validate or invalidate your riskiest assumptions. Follow this process:

1. Form a clear hypothesis
2. Define measurable success criteria
3. Create a minimal prototype or experiment
4. Collect data and analyze results
5. Decide to persevere, pivot, or kill the idea

Pivot or persevere. Based on experiment results, make evidence-based decisions about your concept:

• Persevere: Double down on promising directions
• Pivot: Change a fundamental aspect of your business model
• Kill: Abandon ideas that don't resonate with customers

Use the Validation Canvas to track your experiments and pivots over time.

6. Scale design thinking across your organization

Scaling is about using the same process described in this book to figure out how to scale the process to an entire organization of people, wanting and needing better ways to create opportunities from uncertainty.

Start small. Begin with pilot projects to demonstrate the value of design thinking. Choose high-visibility challenges where you can show tangible results. Use these successes to build momentum and buy-in from leadership.

Build capability. Develop internal design thinking expertise through:

• Training programs and workshops
• Hiring designers and innovation specialists
• Creating centers of excellence or innovation labs
• Partnerships with design firms or accelerators

Embed in processes. Integrate design thinking methods into existing business processes like strategic planning, product development, and customer experience initiatives. Create toolkits and playbooks to make methods accessible.

Shape culture. Foster a culture that embraces experimentation, learning from failure, and putting the customer first. Recognize and reward innovative behaviors. Lead by example, with executives modeling design thinking approaches.

7. Cultivate a designer's mindset to thrive amid uncertainty

Design is about preparation. The design process requires preparation in order for it to run well. You must prepare to observe and understand your customers, business, and context. You must prepare to ideate, prototype, and validate.

Embrace ambiguity. Get comfortable with not knowing all the answers upfront. Trust in the iterative process of exploration and discovery. Frame challenges as opportunities for innovation.

Stay curious. Approach situations with a beginner's mindset, always seeking to learn. Ask probing questions, challenge assumptions, and look for inspiration in unexpected places. Cultivate empathy for others' perspectives and experiences.

Think visually. Use sketching, diagramming, and other visual tools to explore ideas and communicate concepts. Visual thinking helps generate new insights and align teams around a shared understanding.

Bias towards action. Don't get stuck in analysis paralysis. Quickly prototype ideas to make them tangible. Learn by doing and be willing to fail forward. Treat every interaction as an opportunity to gain insights and evolve your thinking.

Last updated: September 10, 2024