Must use the Templates provided to answer questions. Must use APA citations and references. NO PLAGIARISM. NO WORD LIMIT JUST MAKE SURE ALL QUESTIONS ARE ANSWERED IN PARAGRAH(S)

This week, you will complete assignments that involve the design-thinking process. By utilizing this creative process, you will gain a deeper insight into the ways that you can bring creativity to your own life at work and at home.

Phase 1: Inspiration

The first phase of the process, as described by Tim Brown, is inspiration.

Take some time to interact with the space where you work. This could be at your job, where you do homework, or your home office. Make sure it is an environment over which you have some control, such as with lighting, sound, furniture placement, etc.

Adopt the role of a neutral observer and generate a list of observations of how you use this workspace. Your list should answer the following questions:

· What about the workspace is already optimized or ideal?

· Why do these things work well?

· What about the workspace could be improved?

·

Are there problems or difficulties that you repeatedly experience?

· What behaviors, functions, and interactions that take place in your workspace seem interesting or notable?

Your process should take the form of brainstorming. That is, the initial list does not need to be formal in tone. Rather, you should strive to capture your observations as they occur and generate as many ideas as possible.

After completing your list, write a short paragraph describing in greater depth one of the difficult or problematic aspects of your workspace you identified during the brainstorming phase. This will be the workspace challenge that you will continue to work on for Phase 2 of the design thinking process. Remember, you are not coming up with solutions at this time, but only a detailed description of the workspace challenge you have identified.

Phase 2: Ideation

To begin Phase 2 of the design thinking process, focus on the workspace challenge you identified in Phase 1 of this Discussion. Considering the workspace challenge you indentified, brainstorm a list of at least 10 innovative ideas that could resolve or help you meet the challenge; if you come up with more than 10 ideas, feel free to post them all. To generate innovative ideas, consider the following guidelines:

· Do not evaluate your ideas; all are valid and there are no bad ideas.

· Do not limit your ideas to products. An innovation can also be a new service, process, or organizational change.

· Reach the maximum amount of possible ideas; do not waste time analyzing.

· Do not fear extreme ideas; often the best innovations come from ideas that initially seem extreme.

· Strive to suggest a disruptive innovation if at all possible–a completely new and radical idea.

With these thoughts in mind:

Post your list of workspace observations and your description of one particular problem from Phase 1, and your innovative ideas list from Phase 2.

MUST USE THESE TEMPLATES FOR ANSWERS

Workspace observations

Description of One Particular Problem

Innovative Ideas List From Phase 2

APA References

www.hbr.org

Design Thinking

by

Tim Brown

Thinking like a designer can
transform the way you
develop products, services,
processes—and even strategy.

Reprint R0806E

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Design Thinking

by Tim Brown

harvard business review • june 2008 page 1

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Thinking like a designer can transform the way you develop products,
services, processes—and even strategy.

Thomas Edison created the electric lightbulb
and then wrapped an entire industry around
it. The lightbulb is most often thought of as his
signature invention, but Edison understood
that the bulb was little more than a parlor
trick without a system of electric power gener-
ation and transmission to make it truly useful.
So he created that, too.

Thus Edison’s genius lay in his ability to con-
ceive of a fully developed marketplace, not
simply a discrete device. He was able to envi-
sion how people would want to use what he
made, and he engineered toward that insight.
He wasn’t always prescient (he originally be-
lieved the phonograph would be used mainly
as a business machine for recording and replay-
ing dictation), but he invariably gave great con-
sideration to users’ needs and preferences.

Edison’s approach was an early example of
what is now called “design thinking”—a meth-
odology that imbues the full spectrum of inno-
vation activities with a human-centered design
ethos. By this I mean that innovation is pow-
ered by a thorough understanding, through di-

rect observation, of what people want

and

need in their lives and what they like or dislike
about the way particular products are made,
packaged, marketed, sold, and supported.

Many people believe that Edison’s greatest
invention was the modern R&D laboratory
and methods of experimental investigation.
Edison wasn’t a narrowly specialized scientist
but a broad generalist with a shrewd business
sense. In his Menlo Park, New Jersey, labora-
tory he surrounded himself with gifted tinker-
ers, improvisers, and experimenters. Indeed,
he broke the mold of the “lone genius inven-
tor” by creating a team-based approach to in-
novation. Although Edison biographers write
of the camaraderie enjoyed by this merry
band, the process also featured endless
rounds of trial and error—the “99% perspira-
tion” in Edison’s famous definition of genius.
His approach was intended not to validate
preconceived hypotheses but to help experi-
menters learn something new from each iter-
ative stab. Innovation is hard work; Edison
made it a profession that blended art, craft,

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Design Thinking

harvard business review • june 2008 page 2

science, business savvy, and an astute under-
standing of customers and markets.

Design thinking is a lineal descendant of
that tradition. Put simply, it is a discipline
that uses the designer’s sensibility and
methods to match people’s needs with what
is technologically feasible and what a viable
business strategy can convert into customer
value and market opportunity. Like Edison’s
painstaking innovation process, it often en-
tails a great deal of perspiration.

I believe that design thinking has much to
offer a business world in which most manage-
ment ideas and best practices are freely avail-
able to be copied and exploited. Leaders now
look to innovation as a principal source of dif-
ferentiation and competitive advantage; they
would do well to incorporate design thinking
into all phases of the process.

Getting Beneath the Surface

Historically, design has been treated as a
downstream step in the development process—
the point where designers, who have played
no earlier role in the substantive work of inno-
vation, come along and put a beautiful wrap-
per around the idea. To be sure, this approach
has stimulated market growth in many areas
by making new products and technologies
aesthetically attractive and therefore more de-
sirable to consumers or by enhancing brand
perception through smart, evocative advertis-
ing and communication strategies. During the
latter half of the twentieth century design be-
came an increasingly valuable competitive
asset in, for example, the consumer electron-
ics, automotive, and consumer packaged
goods industries. But in most others it re-
mained a late-stage add-on.

Now, however, rather than asking designers
to make an already developed idea more at-
tractive to consumers, companies are asking
them to create ideas that better meet consum-
ers’ needs and desires. The former role is tacti-
cal, and results in limited value creation; the
latter is strategic, and leads to dramatic new
forms of value.

Moreover, as economies in the developed
world shift from industrial manufacturing to
knowledge work and service delivery, innova-
tion’s terrain is expanding. Its objectives are
no longer just physical products; they are new
sorts of processes, services, IT-powered inter-
actions, entertainments, and ways of commu-

nicating and collaborating—exactly the kinds
of human-centered activities in which design
thinking can make a decisive difference. (See
the sidebar “A Design Thinker’s Personality
Profile.”)

Consider the large health care provider Kai-
ser Permanente, which sought to improve the
overall quality of both patients’ and medical
practitioners’ experiences. Businesses in the
service sector can often make significant inno-
vations on the front lines of service creation
and delivery. By teaching design thinking tech-
niques to nurses, doctors, and administrators,
Kaiser hoped to inspire its practitioners to con-
tribute new ideas. Over the course of several
months Kaiser teams participated in work-
shops with the help of my firm, IDEO, and a
group of Kaiser coaches. These workshops led
to a portfolio of innovations, many of which
are being rolled out across the company.

One of them—a project to reengineer
nursing-staff shift changes at four Kaiser hospi-
tals—perfectly illustrates both the broader
nature of innovation “products” and the value
of a holistic design approach. The core project
team included a strategist (formerly a nurse),
an organizational-development specialist, a
technology expert, a process designer, a union
representative, and designers from IDEO. This
group worked with innovation teams of front-
line practitioners in each of the four hospitals.

During the earliest phase of the project, the
core team collaborated with nurses to identify
a number of problems in the way shift changes
occurred. Chief among these was the fact that
nurses routinely spent the first 45 minutes of
each shift at the nurses’ station debriefing the
departing shift about the status of patients.
Their methods of information exchange were
different in every hospital, ranging from re-
corded dictation to face-to-face conversations.
And they compiled the information they
needed to serve patients in a variety of ways—
scrawling quick notes on the back of any avail-
able scrap of paper, for example, or even on
their scrubs. Despite a significant investment
of time, the nurses often failed to learn some
of the things that mattered most to patients,
such as how they had fared during the previous
shift, which family members were with them,
and whether or not certain tests or therapies
had been administered. For many patients, the
team learned, each shift change felt like a hole
in their care. Using the insights gleaned from

Tim Brown

(tbrown@ideo.com) is the
CEO and president of IDEO, an innova-
tion and design firm with headquarters
in Palo Alto, California. His designs have
won numerous awards and been ex-
hibited at the Museum of Modern Art
in New York, the Axis Gallery in Tokyo,
and the Design Museum in London.

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mailto:tbrown@ideo.com

Design Thinking

harvard business review • june 2008 page

3

observing these important times of transition,
the innovation teams explored potential solu-
tions through brainstorming and rapid proto-
typing. (Prototypes of a service innovation will
of course not be physical, but they must be tan-
gible. Because pictures help us understand
what is learned through prototyping, we often
videotape the performance of prototyped ser-
vices, as we did at Kaiser

.)

Prototyping doesn’t have to be complex and
expensive. In another health care project,
IDEO helped a group of surgeons develop a
new device for sinus surgery. As the surgeons
described the ideal physical characteristics of
the instrument, one of the designers grabbed
a whiteboard marker, a film canister, and a
clothespin and taped them together. “Do you
mean like this?” he asked. With his rudimen-
tary prototype in hand, the surgeons were able
to be much more precise about what the
ultimate design should accomplish.

Prototypes should command only as much
time, effort, and investment as are needed to
generate useful feedback and evolve an idea.
The more “finished” a prototype seems, the
less likely its creators will be to pay attention
to and profit from feedback. The goal of proto-
typing isn’t to finish. It is to learn about the
strengths and weaknesses of the idea and to
identify new directions that further proto-
types might take.

The design that emerged for shift changes
had nurses passing on information in front of

the patient rather than at the nurses’ station.
In only a week the team built a working proto-
type that included new procedures and some
simple software with which nurses could call
up previous shift-change notes and add new
ones. They could input patient information
throughout a shift rather than scrambling at
the end to pass it on. The software collated the
data in a simple format customized for each
nurse at the start of a shift. The result was both
higher-quality knowledge transfer and reduced
prep time, permitting much earlier and better-
informed contact with patients.

As Kaiser measured the impact of this
change over time, it learned that the mean in-
terval between a nurse’s arrival and first inter-
action with a patient had been more than
halved, adding a huge amount of nursing time
across the four hospitals. Perhaps just as im-
portant was the effect on the quality of the
nurses’ work experience. One nurse com-
mented, “I’m an hour ahead, and I’ve only
been here 45 minutes.” Another said, “[This is
the] first time I’ve ever made it out of here at
the end of my shift.”

Thus did a group of nurses significantly
improve their patients’ experience while also
improving their own job satisfaction and pro-
ductivity. By applying a human-centered de-
sign methodology, they were able to create a
relatively small process innovation that pro-
duced an outsize impact. The new shift
changes are being rolled out across the Kaiser

A Design Thinker’s Personality Profile

Contrary to popular opinion, you don’t need
weird shoes or a black turtleneck to be a de-
sign thinker. Nor are design thinkers neces-
sarily created only by design schools, even
though most professionals have had some
kind of design training. My experience is that
many people outside professional design
have a natural aptitude for design thinking,
which the right development and experi-
ences can unlock. Here, as a starting point,
are some of the characteristics to look for in
design thinkers:

Empathy.

They can imagine the world
from multiple perspectives—those of col-
leagues, clients, end users, and customers
(current and prospective). By taking a “peo-
ple first” approach, design thinkers can imag-

ine solutions that are inherently desirable
and meet explicit or latent needs. Great de-
sign thinkers observe the world in minute de-
tail. They notice things that others do not and
use their insights to inspire innovation.

Integrative thinking.

They not only rely on
analytical processes (those that produce either/
or choices) but also exhibit the ability to see all
of the salient—and sometimes contradictory—
aspects of a confounding problem and create
novel solutions that go beyond and dramatically
improve on existing alternatives. (See Roger
Martin’s

The Opposable Mind: How Successful

Leaders Win Through Integrative Thinking

.)

Optimism.

They assume that no matter
how challenging the constraints of a given
problem, at least one potential solution is

better than the existing alternatives.

Experimentalism.

Significant innovations
don’t come from incremental tweaks. Design
thinkers pose questions and explore con-
straints in creative ways that proceed in en-
tirely new directions.

Collaboration.

The increasing complexity
of products, services, and experiences has re-
placed the myth of the lone creative genius
with the reality of the enthusiastic interdisci-
plinary collaborator. The best design thinkers
don’t simply work alongside other disciplines;
many of them have significant experience in
more than one. At IDEO we employ people
who are engineers

and

marketers, anthropolo-
gists

and

industrial designers, architects

and

psychologists.

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Design Thinking

harvard business review • june 2008 page 4

system, and the capacity to reliably record
critical patient information is being inte-
grated into an electronic medical records ini-
tiative at the company.

What might happen at Kaiser if every nurse,
doctor, and administrator in every hospital felt
empowered to tackle problems the way this
group did? To find out, Kaiser has created the
Garfield Innovation Center, which is run by
Kaiser’s original core team and acts as a consul-
tancy to the entire organization. The center’s
mission is to pursue innovation that enhances
the patient experience and, more broadly, to
envision Kaiser’s “hospital of the future.” It is
introducing tools for design thinking across
the Kaiser system.

How Design Thinking Happens

The myth of creative genius is resilient: We be-
lieve that great ideas pop fully formed out of
brilliant minds, in feats of imagination well
beyond the abilities of mere mortals. But what
the Kaiser nursing team accomplished was nei-
ther a sudden breakthrough nor the lightning
strike of genius; it was the result of hard work
augmented by a creative human-centered dis-
covery process and followed by iterative cycles
of prototyping, testing, and refinement.

The design process is best described meta-
phorically as a system of spaces rather than a
predefined series of orderly steps. The spaces
demarcate different sorts of related activities
that together form the continuum of innova-
tion. Design thinking can feel chaotic to those
experiencing it for the first time. But over the
life of a project participants come to see—as
they did at Kaiser—that the process makes
sense and achieves results, even though its
architecture differs from the linear, milestone-
based processes typical of other kinds of
business activities.

Design projects must ultimately pass
through three spaces (see the exhibit “Inspira-
tion, Ideation, Implementation”). We label
these “inspiration,” for the circumstances (be
they a problem, an opportunity, or both) that
motivate the search for solutions; “ideation,”
for the process of generating, developing, and
testing ideas that may lead to solutions; and
“implementation,” for the charting of a path
to market. Projects will loop back through
these spaces—particularly the first two—
more than once as ideas are refined and new
directions taken.

Sometimes the trigger for a project is leader-
ship’s recognition of a serious change in busi-
ness fortunes. In 2004 Shimano, a Japanese
manufacturer of bicycle components, faced
flattening growth in its traditional high-end
road-racing and mountain-bike segments in
the United States. The company had always re-
lied on technology innovations to drive its
growth and naturally tried to predict where
the next one might come from. This time Shi-
mano thought a high-end casual bike that ap-
pealed to boomers would be an interesting
area to explore. IDEO was invited to collabo-
rate on the project.

During the inspiration phase, an interdisci-
plinary team of IDEO and Shimano people—
designers, behavioral scientists, marketers,
and engineers—worked to identify appropri-
ate constraints for the project. The team
began with a hunch that it should focus more
broadly than on the high-end market, which
might prove to be neither the only nor even
the best source of new growth. So it set out to
learn why 90% of American adults don’t ride
bikes. Looking for new ways to think about
the problem, the team members spent time
with all kinds of consumers. They discovered
that nearly everyone they met rode a bike as a
child and had happy memories of doing so.
They also discovered that many Americans
are intimidated by cycling today—by the re-
tail experience (including the young, Lycra-
clad athletes who serve as sales staff in most
independent bike stores); by the complexity
and cost of the bikes, accessories, and special-
ized clothing; by the danger of cycling on
roads not designed for bicycles; and by the de-
mands of maintaining a technically sophisti-
cated bike that is ridden infrequently.

This human-centered exploration—which
took its insights from people outside Shi-
mano’s core customer base—led to the real-
ization that a whole new category of bicycling
might be able to reconnect American con-
sumers to their experiences as children while
also dealing with the root causes of their feel-
ings of intimidation—thus revealing a large
untapped market.

The design team, responsible for every as-
pect of what was envisioned as a holistic expe-
rience, came up with the concept of “Coasting.”
Coasting would aim to entice lapsed bikers
into an activity that was simple, straightfor-
ward, and fun. Coasting bikes, built more for

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Design Thinking

harvard business review • june 2008 page 5

Inspiration

Have a project room
where you can share
insights, tell stories

What are the business con-
straints (time, lack of resources,
impoverished customer base,
shrinking market)?

Involve many disciplines
from the start (e.g., engi-
neering & marketing)

Are valuable ideas, as-
sets, and expertise hiding
inside the business?

How can new
technology help?

Organize information and
synthesize possibilities
(tell more stories!)

Pay close attention to
“extreme” users such as
children or the elderly

Put customers in
the midst of every-
thing; describe their
journeys

Tell more stories (they
keep ideas alive)

Communicate
internally – don’t work
in the dark!

Build creative frameworks
(order out of chaos)

Apply integrative
thinking

Make many sketches,
concoct scenarios

Brainstorm

Build implementation
resources into your plan

Expect Success

What’s the business prob-
lem? Where’s the oppor-
tunity? What has changed
(or soon may change)?

Prototype, test,
prototype, test…

Look at the world:
Observe what people do,
how they think, what they
need and want

Move on to the
next project – repeat

Make the case to
the business –
spread the word

Help marketing
design a communi-
cation strategy

Execute the Vision
Engineer the experience

Ideation

Prototype some more,
test with users, test
internally

Im
ple

me
nta

tion 1

3
2

Images copyright © IDEO

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Design Thinking

harvard business review • june 2008 page 6

pleasure than for sport, would have no con-
trols on the handlebars, no cables snaking
along the frame. As on the earliest bikes many
of us rode, the brakes would be applied by
backpedaling. With the help of an onboard
computer, a minimalist three gears would shift
automatically as the bicycle gained speed or
slowed. The bikes would feature comfortably
padded seats, be easy to operate, and require
relatively little maintenance.

Three major manufacturers—Trek, Raleigh,
and Giant—developed new bikes incorporat-
ing innovative components from Shimano.
But the design team didn’t stop with the bike
itself. In-store retailing strategies were created
for independent bike dealers, in part to allevi-
ate the discomfort that biking novices felt in
stores designed to serve enthusiasts. The team
developed a brand that identified Coasting as
a way to enjoy life. (“Chill. Explore. Dawdle.
Lollygag. First one there’s a rotten egg.”) And
it designed a public relations campaign—
in collaboration with local governments and
cycling organizations—that identified safe
places to ride.

Although many others became involved in
the project when it reached the implementa-
tion phase, the application of design thinking
in the earliest stages of innovation is what led
to this complete solution. Indeed, the single
thing one would have expected the design
team to be responsible for—the look of the
bikes—was intentionally deferred to later in
the development process, when the team cre-
ated a reference design to inspire the bike
companies’ own design teams. After a success-
ful launch in 2007, seven more bicycle manu-

facturers signed up to produce Coasting bikes
in 2008.

Taking a Systems View

Many of the world’s most successful brands
create breakthrough ideas that are inspired by
a deep understanding of consumers’ lives and
use the principles of design to innovate and
build value. Sometimes innovation has to ac-
count for vast differences in cultural and socio-
economic conditions. In such cases design
thinking can suggest creative alternatives to
the assumptions made in developed societies.

India’s Aravind Eye Care System is probably
the world’s largest provider of eye care. From
April 2006 to March 2007 Aravind served
more than 2.3 million patients and performed
more than 270,000 surgeries. Founded in 1976
by Dr. G. Venkataswamy, Aravind has as its
mission nothing less than the eradication of
needless blindness among India’s population,
including the rural poor, through the effective
delivery of superior ophthalmic care. (One of
the company’s slogans is “Quality is for every-
one.”) From 11 beds in Dr. Venkataswamy’s
home, Aravind has grown to encompass five
hospitals (three others are under

Aravind

management), a plant that manufactures
ophthalmic products, a research foundation,
and a training center.

Aravind’s execution of its mission and
model is in some respects reminiscent of
Edison’s holistic concept of electric power
delivery. The challenge the company faces
is logistic: how best to deliver eye care to
populations far removed from the urban cen-
ters where Aravind’s hospitals are located.

Coasting

A

sketch

(left, seat plus helmet storage) and a

prototype

(middle) show elements of Coasting bicycles. Shimano’s Coasting

website

(right)
points users to safe bike paths.

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Design Thinking

harvard business review • june 2008 page 7

Aravind calls itself an “eye care system” for a
reason: Its business goes beyond ophthalmic
care per se to transmit expert practice to pop-
ulations that have historically lacked access.
The company saw its network of hospitals as a
beginning rather than an end.

Much of its innovative energy has focused
on bringing both preventive care and diagnos-
tic screening to the countryside. Since 1990
Aravind has held “eye camps” in India’s rural
areas, in an effort to register patients, admin-
ister eye exams, teach eye care, and identify
people who may require surgery or advanced
diagnostic services or who have conditions
that warrant monitoring.

In 2006 and early 2007 Aravind eye camps
screened more than 500,000 patients, of
whom nearly 113,000 required surgery. Access
to transportation is a common problem in
rural areas, so the company provides buses that
take patients needing further treatment to one
of its urban facilities and then home again.
Over the years it has bolstered its diagnostic ca-
pabilities in the field with telemedicine trucks,
which enable doctors back at Aravind’s hospi-
tals to participate in care decisions. In recent
years Aravind’s analysis of its screening data
has led to specialized eye camps for certain de-
mographic groups, such as school-age children
and industrial and government workers; the
company also holds camps specifically to
screen for eye diseases associated with diabe-
tes. All these services are free for the roughly
60% of patients who cannot afford to pay.

In developing its system of care, Aravind has
consistently exhibited many characteristics of
design thinking. It has used as a creative

springboard two constraints: the poverty and
remoteness of its clientele and its own lack of
access to expensive solutions. For example, a
pair of intraocular lenses made in the West
costs $200, which severely limited the number
of patients Aravind could help. Rather than try
to persuade suppliers to change the way they
did things, Aravind built its own solution: a
manufacturing plant in the basement of one
of its hospitals. It eventually discovered that it
could use relatively inexpensive technology to
produce lenses for $4 a pair.

Throughout its history—defined by the
constraints of poverty, ignorance, and an
enormous unmet need—Aravind has built a
systemic solution to a complex social and
medical problem.

Getting Back to the Surface

I argued earlier that design thinking can lead
to innovation that goes beyond aesthetics, but
that doesn’t mean that form and aesthetics are
unimportant. Magazines like to publish pho-
tographs of the newest, coolest products for a
reason: They are sexy and appeal to our emo-
tions. Great design satisfies both our needs
and our desires. Often the emotional connec-
tion to a product or an image is what engages
us in the first place. Time and again we see suc-
cessful products that were not necessarily the
first to market but were the first to appeal
to us emotionally and functionally. In other
words, they do the job and we love them. The
iPod was not the first MP3 player, but it was
the first to be delightful. Target’s products ap-
peal emotionally through design and func-
tionally through price—simultaneously.

Aravind

Aravind’s

outreach to rural patients frequently brings basic

diagnostic tools

(left and center) and an advanced satellite-linked

telemedicine

truck

(right) to remote areas of India.

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Design Thinking

harvard business review • june 2008 page 8

This idea will grow ever more important in the
future. As Daniel Pink writes in his book

A
Whole New Mind

, “Abundance has satisfied,
and even over-satisfied, the material needs of
millions—boosting the significance of beauty
and emotion and accelerating individuals’
search for meaning.” As more of our basic
needs are met, we increasingly expect sophisti-
cated experiences that are emotionally satisfy-
ing and meaningful. These experiences will
not be simple products. They will be complex
combinations of products, services, spaces,
and information. They will be the ways we get
educated, the ways we are entertained, the
ways we stay healthy, the ways we share and
communicate. Design thinking is a tool for
imagining these experiences as well as giving
them a desirable form.

One example of experiential innovation
comes from a financial services company. In
late 2005 Bank of America launched a new
savings account service called “Keep the
Change.” IDEO, working with a team from
the bank, helped identify a consumer behav-
ior that many people will recognize: After
paying cash for something, we put the coins
we received in change into a jar at home.
Once the jar is full, we take the coins to the
bank and deposit them in a savings account.
For many people, it’s an easy way of saving.

Bank of America’s innovation was to build
this behavior into a debit card account. Cus-
tomers who use their debit cards to make pur-
chases can now choose to have the total
rounded up to the nearest dollar and the dif-
ference deposited in their savings accounts.

The success of this innovation lay in its ap-
peal to an instinctive desire we have to put
money aside in a painless and invisible way.
Keep the Change creates an experience that
feels natural because it models behavior that
many of us already exhibit. To be sure, Bank
of America sweetens the deal by matching
100% of the change saved in the first three
months and 5% of annual totals (up to $250)
thereafter. This encourages customers to try it
out. But the real payoff is emotional: the grat-
ification that comes with monthly statements
showing customers they’ve saved money with-
out even trying.

In less than a year the program attracted
2.5 million customers. It is credited with
700,000 new checking accounts and a million
new savings accounts. Enrollment now totals
more than 5 million people who together
have saved more than $500 million. Keep the
Change demonstrates that design thinking
can identify an aspect of human behavior and
then convert it into both a customer benefit
and a business value.

How to Make Design Thinking Part of the Innovation Drill

Begin at the beginning.

Involve design
thinkers at the very start of the innovation
process, before any direction has been set.
Design thinking will help you explore
more ideas more quickly than you could
otherwise.

Take a human-centered approach.

Along
with business and technology considerations,
innovation should factor in human behavior,
needs, and preferences. Human-centered
design thinking—especially when it includes
research based on direct observation—will
capture unexpected insights and produce in-
novation that more precisely reflects what
consumers want.

Try early and often.

Create an expectation
of rapid experimentation and prototyping. En-
courage teams to create a prototype in the
first week of a project. Measure progress with
a metric such as average time to first proto-

type or number of consumers exposed to pro-
totypes during the life of a program.

Seek outside help.

Expand the innovation
ecosystem by looking for opportunities to co-
create with customers and consumers. Exploit
Web 2.0 networks to enlarge the effective scale
of your innovation team.

Blend big and small projects.

Manage a
portfolio of innovation that stretches from
shorter-term incremental ideas to longer-term
revolutionary ones. Expect business units to
drive and fund incremental innovation, but be
willing to initiate revolutionary innovation
from the top.

Budget to the pace of innovation.

Design
thinking happens quickly, yet the route to
market can be unpredictable. Don’t constrain
the pace at which you can innovate by relying
on cumbersome budgeting cycles. Be pre-
pared to rethink your funding approach as

projects proceed and teams learn more about
opportunities.

Find talent any way you can.

Look to hire
from interdisciplinary programs like the new
Institute of Design at Stanford and progres-
sive business schools like Rotman, in Toronto.
People with more-conventional design back-
grounds can push solutions far beyond your
expectations. You may even be able to train
nondesigners with the right attributes to excel
in design-thinking roles.

Design for the cycle.

In many businesses
people move every 12 to 18 months. But de-
sign projects may take longer than that to get
from day one through implementation. Plan
assignments so that design thinkers go from
inspiration to ideation to implementation.
Experiencing the full cycle builds better judg-
ment and creates great long-term benefits for
the organization.

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Design Thinking

harvard business review • june 2008 page 9

Thomas Edison represents what many of
us think of as a golden age of American
innovation—a time when new ideas trans-
formed every aspect of our lives. The need for
transformation is, if anything, greater now
than ever before. No matter where we look, we
see problems that can be solved only through
innovation: unaffordable or unavailable health
care, billions of people trying to live on just a
few dollars a day, energy usage that outpaces
the planet’s ability to support it, education
systems that fail many students, companies

whose traditional markets are disrupted by
new technologies or demographic shifts. These
problems all have people at their heart. They
require a human-centered, creative, iterative,
and practical approach to finding the best
ideas and ultimate solutions. Design thinking
is just such an approach to innovation.

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