DESIGN THINKING FOR MANAGERS

Vasudha Ssharma
Vidya School of Business
 DESIGN THINKING (OVERVIEW)
 Design thinking has become an integral part of
corporate strategy and planning these days.

 The five-step model of design thinking has

been explained extensively in this Presentation,
along with some exercises. This Slideshow will
help you understand the principles of design
thinking.
 WHO ALL MAY GO THROUGH THIS?
 This will be useful for anyone who works in an
industry that deals with addressing the needs of
customers or works for external clients.

 It will help professionals from diverse spheres of

profession to find innovative solutions to the
problems that they or their departments are
facing.
 INTRODUCTION TO DESIGN THINKING
 Design thinking is a methodology that designers use to brainstorm and solve complex problems
related to designing and design engineering. It is also beneficial for designers to find innovative,
desirable and never-thought-before solutions for customers and clients.

 Design thinking is used extensively in the area of healthcare and wellness, agriculture, food
security, education, financial services, and environmental sustainability, to name a few.

 Design thinking has helped in the digital space, contributed to the development of physical
 products, spurred social innovation projects and much more. The iterative design process helps the
designers to involve clients and customers in meaningful ways. It is not just a strategy to come up
with feasible solutions to a problem, but also a method to think of unimaginable solutions and
then trying to make them not just feasible, but also viable.

 Design thinking is a blend of logic, powerful imagination, systematic reasoning and intuition to
bring to the table the ideas that promise to solve the problems of the clients with desirable
outcomes. It helps to bring creativity with business insights .
 ORIGIN OF DESIGN THINKING
 It is a methodology of design that originated in Stanford University and is today considered to be
one of the most sought after skills in the industry. The concept of design thinking began only with a
few domains under consideration, but is now found to be applicable to a myriad of disciplines,
ranging from medicine and aeronautics to management, operations, and human resource planning.

 The teaching and acquisition of design thinking skills has assumed so much importance that it is
now being taught at some of the leading universities of the world, as well as the leading global
corporate houses across the globe.

 Infosys Ltd., India’s second largest IT-based company providing business consulting, information
technology and software engineering services, has also made design thinking a mandatory skill to
be acquired by each of its employee.

 Stanford University in the United States and the University of Potsdam in Germany have also
promoted design thinking, citing it as one of the most useful skills for professionals.
 APPLICATION ACROSS PROFESSIONS
 In the wake of such support and encouragement for design thinking by big entities, it is easy to
understand the significance and influence that design thinking will assume in the near future for
all sorts of professions. Design thinking is a methodology for finding simplicity in complexity,
improving quality of experience with the designed products and serving the needs of
customers by addressing the target problem faced by them.

 Design thinking is at the core of the development of efficient and effective strategies for
organizational change.

 Design thinking is a five-step process, where each step focuses on a specific goal. Each of the
steps is independent of the next step but is borne out of the previous step. Design thinkers are
expected not to think of the following steps when working on one step. For example, it is not
recommended to think of solutions, when the problem is being defined.

 The problem definition must be written in detail without missing any point, even if it makes
finding a solution difficult. In these slides, we will understand the importance of design thinking,
its impact of strategy development and we will then explore each of the steps of design thinking.
 DESIGN THINKING - DEFINED

 The idea of using design as a way of solving complex problems in a simplified manner in sciences
originated in the book, ‘The Sciences of the Artificial’, authored by Herbert A. Simon in 1969. The same
purpose was achieved for design engineering by the book ‘Experiences in Visual Thinking’, authored by
Robert McKim in 1973.

 In 1987, Peter Rowe’s book titled, “Design Thinking” described methods and approaches that planners,
designers, and architects use. The work of Robert McKim was consolidated by Rolf Faste at Stanford
University during 1980s to 1990s and then, David M. Kelly adapted design thinking for business interests.
David M. Kelly founded IDEO in 1991.

 Most of the industries trying to solve customers’ problems and address their needs are failing just because
they look at the problems outside in. However, many problems can be solved in a better manner if we look
at them inside out. According to an article in Forbes, a large number of problems faced by organizations
worldwide are multi-faceted and are a part of increasingly complex business models. The expansion of
global transactions, growth of international partnerships and decentralized base of human resources are
leading to challenges that require a global outlook and hence, a different outlook to solve the problems.
 FEATURES OF DESIGN THINKING
 Such problems require multidimensional solutions. Design thinking helps in this regard. It not only
assists a professional to come up with a solution, but it also helps the organization to gain a
competitive edge over its rivals. Following are the benefits conferred by design thinking.
 These are incidentally also the distinguishing features of design thinking:

1) Finding simplicity in complexities. Having a beautiful and aesthetically appealing product.

2) Improving clients’ and end user’s quality of experience.
3) Creating innovative, feasible, and viable solutions to real world problems.
4) Addressing the actual requirements of the end users.

 Most of the challenges in the world do not get solved because people trying to address those
roblems focus too much on the problem statement. At other times, the problem statement is
overlooked and there is too much stress to find a solution.

 Design thinking helps to gain a balance between the problem statement and the solution
developed. A design-oriented mindset is not problem focused, but solution focused and action
oriented. It has to involve both analysis and imagination. Design thinking is the way of resolving
issues and dissolving problematic situations by the help of design.
 STRATEGY AND USES OF INNOVATION
 Design thinking is also considered to be a strategy for innovation. It leads to dramatic improvements in
innovation. This is why design thinking forms the core of effective strategy development and seamless
organizational change. Anything that involves human interaction, from products, services, processes
etc., can be improved through design thinking. It all depends on the designer’s way to create, manage,
lead, and innovate.
 The basic principle of design thinking is that innovation can be disciplined. Innovation is not an elusive
entity that only a few genius people can experience. It is, rather, a practice that can be systematically
approached by a set of practical and meticulous tools, methodologies, and frameworks. Design thinking
helps you learn the following.
1. How to optimize the ability to innovate?
2. How to develop a variety of concepts, products, services, processes, etc. for end users?
3. How to leverage the diverse ideas of innovation?
4. How to convert useful data, individual insights and vague ideas into feasible reality?
5. How to connect with the customers and end-users by targeting their actualrequirements?
6. How to use the different tools used by designers in their profession for solving your
7. customers’ problems?

Design thinking helps people of every profession to arrive at solutions in a planned, organized, and
systematic manner. The step-by-step process helps to create solutions with both the problem statement
and the required solution in mind.
 DESIGN THINKING - APPLICATIONS

 Design thinking finds its application across a variety of professions. From sports,
education and research to business, management and design, design thinking is widely
used by professionals around the globe.

 Design thinking is halfway between analytical thinking and intuitive thinking.

Analytical thinking involves purely deductive reasoning and inductive logical
reasoning that utilize quantitative methodologies to come to conclusions. However,
intuitive thinking refers to knowing something without any kind of reasoning.

 These are two extreme kinds of thinking. Design thinking makes use of both the extremes
in an optimum manner. The intuitive thinking helps in invention for the future, whereas
analytical thinking to create something creative in the present, which is replicable. The
willingness to use these futuristic solutions is what is called abductive logic.
 DESIGN THINKING - APPLICATIONS
 Business
Design thinking helps in businesses by optimizing the process of product creation, marketing, and
renewal of contracts. All these processes require a companywide focus on the customer and hence,
design thinking helps in these processes immensely. Design thinking helps the design thinkers to
develop deep empathy for their customers and to create solutions that match their needs exactly. The
solutions are not delivered just for the sake of technology.

 Information Technology
The IT industry makes a lot of products that require trials and proof of concepts. The industry needs
to empathize with its users and not simply deploy technologies. IT is not only about technology or
products, but also its processes. The developers, analysts, consultants, and managers have to
brainstorm on possible ideas for solving the problems of the clients. This is where design thinking
helps a lot.
 DESIGN THINKING - APPLICATIONS
 Education
The education sector can make the best use of design thinking by taking feedback from students on
their requirements, goals and challenges they are facing in the classroom. By working on their
feedback, the instructors can come up with solutions to address their challenges. For example, Michael
Schurr, a 2nd grade instructor from New York, realized that his students would be more comfortable
with bulletin boards lowered. He also found the idea of creating comfortable semi-private space for
working students as it provided them space to study. As a result, his students became more engaged and
felt free to move.

 Healthcare
Design thinking helps in healthcare as well. The expenditure on healthcare by the government and the
cost of healthcare facilities is growing by the day. Experts worldwide are concerned about how to bring
quality healthcare to people at low cost. Venice Family Clinic in Venice, California has come up with
innovative solutions to the challenge of opening a low-cost children’s clinic to serve the low-income
families. Problems of finance, transportation, and language barriers had to be solved. And all this had
to be done at low cost for the poor kids. Fostering good health along with profits was a challenge, as it
does not sound sustainable. Using design thinking, the inefficiencies in the system and the perennial
crises were addressed.
 DESIGN THINKING – SOLUTION-BASED THINKING

 Design thinking promises to provide a realistic, practical, and innovative solutions to problems of organizational
concern and gives a systematic approach to finding solutions. The distinguishing feature of design thinking
is that it encourages solution focused thinking or solution based thinking. The design thinker is supposed to
have a clear idea of the goal of the entire process. The design thinkers are not supposed to solve every specific
problem, but to start the process with the end goal in mind. This methodology helps because by focusing on both
the present and the future conditions as well as the parameters of the problem statement, alternative solutions can
be explored simultaneously.

 Design Thinking vs. Scientific Method

The design thinking approach is altogether different from the scientific method. The scientific method begins
with rigorously defining all the parameters of the problem, so as to arrive at a solution. But a design thinker is
supposed to identify both the known and the ambiguous facets of the problem statement along with the current
situation. This method of thinking helps to unearth hidden parameters and open alternate paths to reach the
solution.

Iterative approach: As design thinking is an iterative approach, intermediate solutions in the process of
developing the larger solution to achieve the end goal can also act as prospective starting points for chalking out
alternative paths. This can, at times, also lead to redefinition of the problem statement.
 PROBLEM FOCUSED VS. SOLUTION FOCUSED
 Where does the difference lie between problem focused solvers and solution focused solvers? The
answer to this question was found by Bryan Lawson, a psychologist, in 1972. In one of his
experiments, he took two groups of students; one group consisted of final year students in
architecture, whereas the other group comprised of post graduate science students. The two groups
were asked to create one-layer structures with a set of colored boxes. The perimeter of the structure
had to optimize either the red or the blue color; however, there were unspecified rules governing the
placement and relationship of some of the blocks.
Lawson found that:
 “The scientists adopted a technique of trying out a series of designs which used as many different
blocks and combinations of blocks as quickly as possible. Thus they tried to maximize the
information available to them about the allowed combinations. If they could discover the rule
governing which combinations of blocks were allowed they could then search for an arrangement,
which would optimize the required color around the layout. [problem-focused] By contrast, the
architects selected their blocks in order to achieve the appropriately colored perimeter. If this proved
not to be an acceptable combination, then the next most favorably colored block combination would
be substituted and so on until an acceptable solution was discovered. [solution-focused]” — Bryan
Lawson, How Designers Think
 PROBLEM FOCUSED VS. SOLUTION FOCUSED

 Analysis vs. Synthesis

Analysis refers to the process of breaking down something substantial into multiple fragments or
components. Synthesis is the total contrast of analysis. In Synthesis, we combine fragmented elements
to form an aggregated and coherent whole. It is to be noted that analysis and synthesis are
complementary to each other and go hand in hand. Design thinkers have to synthesize based on the
analysis they have done and the analysis will then follow based on what has been synthesized to verify
the results and to measure the parameters.

 Divergent Thinking vs. Convergent Thinking

Divergent thinking involves finding many possible solutions in the first stance. This is the essence
of design thinking process. The design thinkers are required to think of as many solutions as strike
their brain, even if some of them don’t look viable. Convergent thinking is a method of narrowing the
available solutions to a final solution. Divergent thinking is the ability to come up with various unique
ideas adherent to a single theme. Convergent thinking is the ability to find the correct solution to the
given problem. Design thinking delves on divergent thinking in the beginning to ideate many
solutions and then resort to convergent thinking to zero-in on the best solution.
 DESIGN THINKING - ANALYSIS VS. SYNTHESIS
Now we will see the difference between two ways of solution-based thinking, i.e. Analysis and Synthesis, and
also get to know how it helps in design thinking.

Analysis
Analysis is derived from the Greek word ‘analysis’, which translates into ‘breaking up’ in English. Analysis is
older than the times of great philosophers like Aristotle and Plato. As discussed in the previous section, analysis is
the process of breaking down a big single entity into multiple fragments. It is a deduction where a bigger concept is
broken down to smaller ones. This breaking down into smaller fragments is necessary for improved
understanding.

So, how does analysis help in design thinking? During analysis, design thinkers are required to break down the
problem statement into smaller parts and study each one of them separately. The different smaller components of the
problem statement are to be solved one-by-one, if possible. Then, solutions are thought for each of the small
problems.

Brainstorming is done over each of the solutions. Later, a feasibility check is done to include the feasible and
viable solutions. The solutions that don’t stand firm on the grounds of feasibility and viability are excluded from the
set of solutions to be considered.

Design thinkers are, then, encouraged to connect with the diverse ideas and examine the way each idea was
composed. This process of breaking down the bigger problem statement at hand into multiple smaller problem
statements and examining each as a separate entity is called analysis.
 PROBLEM FOCUSED VS. SOLUTION FOCUSED

Reductionism
The underlying assumption in analysis is reductionism. Reductionism states that the reality around us can be
reduced down to invisible parts. The embodiment of this principle is found in basic axioms of analytic geometry,
which says “the whole is equal to the sum of its parts”. However, understanding of a system cannot be developed
by analysis alone. Hence, synthesis is required following analysis.

Synthesis
Synthesis refers to the process of combining the fragmented parts into an aggregated whole. It is an activity that is
done at the end of the scientific or creative inquiry. This process leads to creation of a coherent bigger entity, which
is something new and fresh. How does synthesis come into picture in design thinking?
Once the design thinkers have excluded the non-feasible and non-viable solutions and have zeroed-in on the set of
feasible and viable solutions, it is time for the thinkers to put together their solutions.

Out of 10 available solutions, around 2-3 solutions may need to be excluded since they may not fit into the larger
picture, i.e. the actual solution. This is where synthesis helps. The design thinkers start from a big entity called the
problem statement and then end up with another bigger entity, i.e. the solution. The solution is completely different
from the problem statement. During synthesis, it is ensured that the different ideas are in sync with each other and
do not lead to conflicts.
 ANALYSIS + SYNTHESIS = DESIGN THINKING

Analysis and synthesis, thus, form the two fundamental tasks to be done in design
thinking. Design thinking process starts with reductionism, where the problem statement
is broken down into smaller fragments. Each fragment is brainstormed over by the team
of thinkers, and the different smaller solutions are then put together to form a coherent
final solution.
 ANALYSIS + SYNTHESIS = DESIGN THINKING

Let us take a look at an example:

Problem Statement:
Suppose the problem statement at hand is to contain the attrition that happens in companies
worldwide. High quality employees leave the organization, mainly after the appraisal cycle. As a
result, an average company loses its valuable human resources and suffers from an overhead of
transferring the knowledge to a new employee. This takes time and additional human resource in
the form of a trainer, which adds to the company’s costs. Devise a plan to contain attrition in the
company.
Analysis:
Now, let’s break down the problem statement into various constituent parts. Following are the
subparts of the same problem statement, broken down to elementary levels.

1. The employees are not motivated anymore to work in the company.

2. Appraisal cycle has something to do with attrition.
3. Knowledge transfer is necessary for new employees.
4. Knowledge transfer adds to the cost of the company.
 ANALYSIS + SYNTHESIS = DESIGN THINKING

Synthesis:
Now, let's start solving each problem individually. In this step, we will do synthesis.
Let's look at one problem at a time and try to find a solution only for that problem statement, without
thinking of other problem statements.
To solve the problem of lack of motivation, the management can plan some sort of incentives that can be
given on a regular basis. The efforts put in by the employees must be rewarded well. This will keep
the employees motivated. To solve the issue of occurrence of attrition during appraisal cycle, the
management can conduct a meeting with the employees leaving the organization, and take their
insight as to what led them to leave the company.

1. For knowledge transfer, the management can hire only those people who are experts in a domain.

2. Regarding concerns for budget of knowledge transfer, the management can have a document
prepared by experts in a domain and this document can be uploaded on intranet. This can be made
available to new joinees. Hence, additional human resource is not required for knowledge transfer
and this will reduce the figures in the company's budget.
 ANALYSIS + SYNTHESIS = DESIGN THINKING

Now, if we observe carefully, the third solution may not be feasible all the time. We cannot be
assured of expert professionals coming for interviews all the time. Moreover, expert
professionals demand more compensation than not-so-expert professionals. This will increase
the company's budget. Hence, we will now combine the other three solutions to form a
coherent one.

The final solution will be for the management to first have a talk with the employees leaving
the organization to know the reasons behind attrition, then come up with awards in suitable
categories and then, create an easily and universally accessible document in the organization
for knowledge transfer.

This way, analysis and synthesis together help in design thinking process. Design thinkers
start with breaking down a problem into smaller problems that can be handled and studied
easily. Then, the different solutions are combined to form a coherent single solution.