Design Thinking for the Greater Good

greater good

Innovation in the Social Sector

Design thinking is one way to reframe problems, ideate solutions, and iterate toward better answers. It helps solve wicked problems. Those are the type that are especially insidious and difficult.

In a new book by Jeanne Liedtka, Daisy Azer, and Randy Salzman, Design Thinking for the Greater Good:  Innovation in the Social Sector, the authors take on the challenge of applying design thinking to the social sector. The principles apply to all organizations and may help you reach a breakthrough in your organization. I recently spoke with Randy Salzman about their research. Randy is a journalist and former communications professor. His work has been published in over one hundred magazines, journals, and newspapers, from the Wall Street Journal and the New York Times to Mother JonesBicycling, and Style.

 

“Possibility first, constraints later.” -Randy Salzman

 

Practice Design Thinking

What is design thinking?

Design thinking is a modern version of what was once common, a method of addressing and solving problems outside of normal professional siloes. After about 500 years of ever-greater specialization, society is recognizing that wicked problems lie between the professions, between those siloes, and that most “answers” require a grasp of human behavior and a willingness to deeply understand the entire problem, not just “my” professional aspect of it. Design thinking, often called human-centered design, asks us to explore deeply, empathize continually, ideate rapidly, prototype simply and iterate constantly in order to address the problems that bedevil us. Unlike, for example, LEAN and most analytical methods of addressing problems, design thinking seeks to hold problem-solvers in the question space, rather than rapidly jumping to an answer as most Type A personalities – who corporate leaders tend to be — do. Reframing the question, exploring it deeply—and especially building solid empathy with users and other stakeholders—allows design thinkers to find unarticulated needs and desires and build solutions—tapping into unintentionally hidden aspects of human behavior. In today’s “quantitative” planning world, design thinking seeks to return to “qualitative” understanding of both bigger, and littler, picture issues.

 

It is being used today all over the world in a variety of very different organizations. Would you give us a few examples?

While many know of the success of Intuit, 3M, Proctor and Gamble and other major corporations in producing new products and services via design thinking approaches, less is known about the problem-solving methodology’s work outside of product development, and in social sector and government organizations.  Today, many U.S. government bureaucracies – from Health and Human Services, the VA, even the armed forces – are today seeking to understand the people they serve at a much deeper level than treating people as numbers using a quantitative statistical approach.  Non-profits, hospitals, and educational institutions are also adapting their thinking towards design-thinking’s “possibility first, constraints later” approach to problem solving.  For instance, The Kingwood Trust in the United Kingdom is using design thinking to sense and adapt to the needs of autistic adults who cannot use written or oral language to even express their likes or dislikes, and involving them in the design of their living spaces. The Community Transportation Association of America is using it to build local capacity to solve the work-transport needs of lower income employees. Monash University Hospital in Australia has completed a dozen design thinking projects and are presently engaged in solving the truly “wicked” problem of how medical providers can deliver and be compensated for wellness instead of for providing interventions.  All these stories are in our book, Design Thinking for the Greater Good:  Innovation in the Social Sector. But the stories are too many to fit into any book. We only touched on the New Zealand government’s culture-wide tipping to design thinking. Most governmental ministries in that Pacific nation have a design-thinking shop aimed at exploring deeply and empathizing continually with the stakeholders they serve.

 

“Fail early to succeed sooner.” —Tim Brown

 

How is innovation shifting?

We like to talk in terms of a shift from “Innovation I” to “Innovation II” and liken to this shift to the one that occurred in quality, post WWWII. In the same way that quality was originally the realm of specialists and then gradually (facilitated by TQM) spread to the point where, today, quality is everyone’s job up and down the organization, innovation is increasingly seen as belonging to those outside of research & development and senior executives. For organizations to adapt and thrive in today’s climate of political and economic uncertainty and challenge, we submit that all staffers, all employees, need the training and authority to innovate. It must become a core organizational capability. In this environment of broadened responsibility for finding new ways to create value for stakeholders, design thinking can do for innovation what TQM did for quality – help us to teach, scale and democratize it.

Certainly, possibilities for innovation are accelerating for a variety of technological reasons, from big data to computing capacities. There has been less attention to the human dimension, to the awareness that flawed human beings do not behave like the so-called “rational consumers” the quantitative planning world was based on. As the authors of Nudge put it, man is not “homo economous” but “homo sapiens,” and until thinkers began to understand that most of us act without thinking – rationally or otherwise – very little qualitative understanding of human behavior was considered by “garage” and other technological innovators. Now—in  what some are calling the “Smart Machine Age”—there is an awareness that every idea and every concept needs accompaniment from a social technology which aids in its spread. We think of design thinking as a social technology for change. As more and more business, governments, organizations recognize that a qualitative understanding of their stakeholders is needed, design thinking opens up a new kind of conversation that creates space for innovation to birth and blossom.

 

Embrace the Growth Mindset

9 Steps to a Better Bottom Line

profit

How to Improve Your Bottom Line

In the last several years, businesses have faced smarter competitors, continual change, technological innovations, and uncertainty.

It seems more difficult than ever to both grow the top line of a business and the bottom line, too.

That’s the challenge that Dr. Dorriah Rogers, CEO of Paradyne Consulting Works, takes on.

From her work with some of the most complex projects and organizations, Dorriah has developed a 9 step program to grow net profit. After reading her new book Decide to Profit: 9 Steps to a Better Bottom Line, I asked her to share more about her research and experience.

 

“The man who removes a mountain begins by carrying away small stones.” –Chinese Proverb

 

Tell us more about the 9 steps and how you arrived at them.

The 9 steps are the result of many years of implementing various profit-focused solutions and systems across many different types of industries and companies.  At one point in my consulting career, a senior executive (almost, but not quite) jokingly asked me if I could develop an “Operations Manual” of all the tools I had at my disposal.  That was the genesis of the 9 Steps.  From there, I kept refining the steps, making sure they were interrelated, and asked for real-world feedback from my clients, until I had it down to a system as simple as I could make it.  I wanted to create a process that was not overly complicated to understand or use, and I wanted to create something that both managers making decisions and employees wanting to make an impact could readily implement to help their companies improve profitability.

 

“Whenever man comes up with a better mousetrap, nature immediately comes up with a better mouse.” –James Carswell

 

Identifying the system that needs improvement seems straightforward, but it isn’t as easy as it sounds. What if you can’t seem to identify which one is off course?

Agreed.  It is not simple to get started.  And that is why so many of my clients struggled.  They either focused on too many improvements or the wrong ones.  In many cases, most managers and employees inherently know where they need to start, or in what general area, and that is as good a point to begin with as any.  It may not be as tight a starting point as you might want, but the 9 Steps will help to define and clarify if it is the right place to focus your attention and resources as you progress.  Keep in mind that a “system improvement” could be as big as an entire corporate overhaul (like the Lego case study in the book) or as small as an internal vendor payment process.  The idea is to find those things that are impacting your ability to make money.  So the first place to start is to discuss internally which things are impacting your ability to generate profit.  Not revenue, but profit. 

Companies have a choice: keep doing what you’re doing and make incremental (or no) improvements to your bottom line, or tackle your best estimate of the system within your organization that could potentially have the biggest impact on profit.  You might start out with the wrong one, but the beauty of the 9 Steps is the iterative process built into it.  Along the way (and fairly soon) you will realize that the system you chose to improve might not be the right one because it is NOT positively impacting your financial goals, and the steps will prove that out for you through the ROI process.  At that point, you simply readjust, and the 9 Steps will guide you closer to those areas that will have the biggest impact.  So in short, start somewhere and the 9 Steps process will get you where you need to be.

 

“Creativity is thinking up new things. Innovation is doing new things.” –Theodore Levitt

 

Beware the Expert Loop

What is the expert loop and how does it often cause problems?

The expert loop was first coined by Alex “Sandy” Pentland in his November 2013 HBR article entitled “Beyond the Echo Chamber.”  In it, he posited that within organizations only a handful or individuals are viewed as the experts and the only ones who are capable of making important decisions.  I agree with his conclusions that, in fact, seeking information outside of this expert network is often much more valuable.  Time and time again I have seen the phenomenon of top executives sitting in rooms with the same small group of people as they rehash both problems and ideas in a tired, circular rhythm. The same ideas are beaten to death, and the same people are heard.  Even when new people are brought into the conversation, their ideas are often dismissed or even scoffed at as the experts re-establish their positions of authority at the top of the food chain. The problem this creates is twofold: a lack of true innovation and the stifling of a culture of continuous improvement.  While it is true that experts should (and do) have great ideas, it often requires a fresh perspective or a dissenting voice to shake things up and move the company in a new direction.  Some of the best ideas I have ever heard have come from the most unexpected voices.

 

9 Steps to Improving Your Bottom Line

  1. Identify the system that needs improvement.
  2. Put the right team together.
  3. Identify the goal.
  4. Observe the system.
  5. Identify bottlenecks within the system.
  6. Brainstorm.
  7. Select optimal solutions for improvement.
  8. Implement one change at a time.
  9. Sustain a culture of continuous improvement.

 

Unlock the Power of Brainstorming

How Great Companies Fuel Innovation Through Diversity

The Power of Diversity

I’m a passionate believer in diverse teams. Throughout my life and career, I have seen the benefits from multiple perspectives examining a problem together. If everyone thinks exactly the same way, with the same background, you end up with a narrow solution. A lack of diversity increases the likelihood of strategic blind spots.

 

“If we cannot now end our differences, at least we can help make the world safe for diversity.” –J.F.K.

 

That’s why I read with great interest David Livermore’s new book, Driven by Difference: How Great Companies Fuel Innovation Through Diversity. David Livermore has written ten books on global leadership and cultural intelligence. He is president of the Cultural Intelligence Center and a visiting scholar at Nanyang Business School in Singapore.

 

“A lack of diversity increases the likelihood of strategic blind spots.” -Skip Prichard

 

The Goal of Diversity is Not Enough

In your book, you argue that diversity, as a goal, is not good enough. Would you elaborate on this?

I applaud any effort to hire a more diverse workforce. But if that’s all you do, you set everyone up for failure. “Different” perspectives, values, and strategies for getting work done easily lead to misunderstanding, frustration, and gridlock. Diversity needs to be managed with a culturally intelligent strategy for how to effectively use the diverse perspectives to drive innovation and improve employee engagement.

 

“The more diverse the team, the less likely participants will offer their input and perspectives.” –David Livermore

 

The Link Between Innovation and Diversity

You say that diversity by itself does not ensure innovation, but it does when combined with high CQ. What is CQ? What’s the link between innovation and diversity? 

Driven by DifferenceCQ, or cultural intelligence, is the capability to work effectively with people from different cultural backgrounds. It’s measured using a CQ Assessment, which predicts how effectively one will work in situations characterized by cultural diversity.

Our research finds that diverse teams comprised of individuals with low CQ underperform homogenous teams with low CQ. However, diverse teams comprised of individuals with high CQ outperform homogenous teams on several measurements including innovation.

Therefore, CQ becomes the moderating link between diversity and innovation. With higher levels of cultural intelligence, team members can effectively retain and use the differences among them that enhance creativity while minimizing the differences that create interference.

 

“Distraction is one of the biggest roadblocks to innovation.” –David Livermore

 

Prevent Diversity Fatigue

What’s diversity fatigue and how do companies prevent it?

Diversity fatigue is how I refer to the growing weariness felt by many staff when they hear they have to go through diversity training. Even individuals from underrepresented groups often place little hope or interest in diversity initiatives in the workplace. Research recently cited in the Harvard Business Review found that diversity programs did little to convince ethnic minorities that companies would treat them any more fairly than companies without the programs.

 

“The culturally intelligent are aware of how cultural differences influence the way team members approach a task.” –David Livermore

 

There are a variety of factors that contribute to diversity fatigue, several of which I explore more fully at the beginning of Driven by Difference. But the key to addressing this is for companies to take a more strategic approach to diversity. They need to address diversity the way they address other business opportunities and challenges—assess the situation, create a strategy, and form metrics for measuring accountability. If profits are slipping, companies don’t plan a “Profits Slipping Awareness Day” and then hope the awareness translates into better returns. It’s all hands on deck with everyone accountable. And then managers and teams need to be equipped with the skills to effectively use their differences to drive innovation.

 

“Smart, empowered teams are the best way to come up with successful products.” –David Livermore

 

In one chapter, you talk about focus and how the more personalities and cultures you have working together, the easier it is to lose focus. What’s the best way to experience the benefits of diverse thinking while also keeping focus?

It comes from clearly defining the goal (a key to retaining focus) while asking your diverse colleagues how they understand the goal. The goal may seem straightforward, such as reducing costs or improving efficiencies. However, the assumptions about how to most effectively reduce cost may be strongly influenced by one’s cultural values and assumptions. Focus comes from not quickly moving beyond the seemingly basic task of clarifying expectations and instead, using a diversity of expectations to more successfully achieve more innovative outcomes.

 

“Diversity: the art of thinking independently together.” –Malcolm Forbes

 

How to Build Trust With Diverse Colleagues

How to Jumpstart Innovation

 

Is your team stuck and in need of an innovation injection?

Are there ways to structure brainstorming to enhance the creative process?

Is it possible to learn how to innovate and create?

 

Make Stone Soup

If you study innovation, creativity and success, you will likely know my friend Jeff DeGraff.  I first met him when I was running a business in Ann Arbor, Michigan.  Someone on my team introduced me to the “Dean of Innovation” when we were struggling with a problem.  Dr. DeGraff is a professor at the Ross School of Business at the University of Michigan.  He has worked with some of the biggest global corporations including Apple, Visa, GE, Coca-Cola, and Johnson & Johnson.

His most recent book is Making Stone Soup: How to Jumpstart Innovation Teams.  If you want the recipe for collaborative innovation, this colorful book will deliver while inspiring you with new ideas for your team.

 

“Innovation is created as a result of constructive conflict.” -Jeff DeGraff

 

Misconceptions About Innovation

Most of us think of innovation and think of a brilliant inventor, solitarily working when Eureka!  Bam!  Innovation strikes!  You say most innovation doesn’t happen in that manner but, instead, happens in teams.  Tell us more about that.

Any other common misconceptions about innovation?

Most people have a very limited concept of innovation.  They think it’s a gMaking Stone Soup Book Coveradget or an electric powered vehicle.  But these technological inventions are the very end of the innovation chain. What makes your smart phone light and compact has more do with breakthroughs in material science than it does creative design thinking.  More so, innovations are often services or integrated solutions such as Google’s business model. Innovation is by definition a type of deviance from the norm, and therefore what makes an innovation is constantly morphing and progressing.

 

“Innovation is a type of deviance from the norm.” -Jeff DeGraff

 

Conversely, the biggest truth that people miss is that innovation is the only value proposition that happens in the future for which we have no data now.  You must feel your way through the ambiguity and accelerate the unavoidable failure cycle.  That’s how successful inventors, entrepreneurs and venture capitalists do it.  Excessive planning is the number one form of resistance when trying to make innovation happen. You have to take multiple shots on goal.

Most importantly, innovation is not produced through alignment.  It is created as a result of constructive conflict.  Enroll some deep and diverse domain experts and encourage some polite pushing and shoving, and you will be astounded by the hybrid solutions they create.

 

CREATE, COMPETE, CONTROL, COLLABORATE

How to Create Brand Names That Stick

A Great Name is a Must

Whether you are launching a new company, a new product, or refreshing a brand, you need to have a great name.  Some companies have a name that just fits while others see massive marketing campaigns fail because of a poor name.  Still others have names that are limiting future growth.  For instance, Tony Hsieh, CEO of Zappos.com says that Zappos.com started out as ShoeSite.com.

Alexandra Watkins is a nationally recognized naming expert and founder of Eat My Words. She’s been featured in The Wall Street Journal, Inc. and Entreprenuer.  Her clients range from Disney to Fujitsu.  She recently wrote the small, but powerful book Hello, My Name Is Awesome: How to Create Brand Names That Stick.

 

“Your brand name makes a critical first impression. Even more than your shoes.” Alexandra Watkins

 

 

For those not in the field of marketing and branding, why is picking the right brand name so critically important? 

Your name will last longer than any investment you make in your business.  Think about that for a minute…will you have the same tablet, mobile phone, printer, and office furniture twenty years from now?  Not likely.  But you will have the same brand name.  That’s why it’s important for you spend the time to get it right.

 

Qualities of a Perfect Brand Name

What are the qualities of a perfect name? How do you know you’ve landed on the right choice?

A helpful and purely objective checklist for the qualities of a perfect name is my SMILE & SCRATCH Test, a 12-step name evaluation method based on my philosophy, “A name should make you smile, instead of scratch your head.” If your name passes the test (and clears trademarking and international linguistic checks), you can be assured you have a winner.

Screen Shot 2014-09-30 at 5.45.14 PM

 

SMILE: The 5 Qualities of a Super Sticky Name – the perfect name has all of these characteristics:

Suggestive – evokes something about your brand

Meaningful – resonates with your audience

Imagery – is visually evocative to aid in memory

Legs – lends itself to a theme for extended mileage

Emotional – moves people