DesignWorks

RevisedandExpandedEdition

DESIGNWORKSAGuidetoCreatingandSustainingValuethroughBusinessDesign

RevisedandExpandedEdition

HeatherM.A.Fraser

©HeatherM.A.Fraser2019Rotman-UTPPublishingUniversityofTorontoPressTorontoBuffaloLondonutorontopress.comPrintedintheU.S.A.

ISBN978-1-4875-2290-2

Printedonacid-freepaper.

LibraryandArchivesCanadaCataloguinginPublication

Fraser,HeatherM.A.,1957–,authorDesignworks:aguidetocreatingandsustainingvaluethroughbusinessdesign/HeatherM.A.Fraser.–Revisedandexpandededition.

Includesbibliographicalreferencesandindex.ISBN978-1-4875-2290-2(softcover)1.Organizationalchange.2.Businessplanning.I.Title.HD58.8.F732019658.4’06C2018-905717-3

UniversityofTorontoPressacknowledgesthefinancialassistancetoitspublishingprogramoftheCanadaCouncilfortheArtsandtheOntarioArtsCouncil,anagencyoftheGovernmentofOntario.

Dedicatedtothememoryofmyparents,ElizabethandHerbert.

CONTENTS

Introduction

PARTONETHEPRACTICEOFBUSINESSDESIGN1OverviewofBusinessDesign2PreparingforYourQuest3ContextualizingYourChallenge4Gear1:Empathy&DeepHumanUnderstanding5Gear2:ConceptVisualization6Gear3:StrategicBusinessDesign&Activation7LeadingInnovation&Transformation

PARTTWOTOOLKITPreparingforYourQuestContextualizingYourChallengeGear1:Empathy&DeepHumanUnderstandingGear2:ConceptVisualizationGear3:StrategicBusinessDesign&Activation

AcknowledgmentsNotesIndex

INTRODUCTION

WhenIwrotethefirsteditionofthisbookin2012,enterprisesaroundtheworldwerewrestlingwithhowtoawakentheircapacitytoinnovate.Alothastranspiredsincethen.Increasingly,innovationisnolongerseenasastreamofactivitybutratherthenatureofbusinessitself.Tothriveandsurvive,anenterprisemustbecontinuallysearchingfornewwaystocreateandsustainvaluetothemarketandcapturevaluetofueltheenterprise.

Tohelpunlockenterprisepotential,manyenterpriseshaveevolvedtheirideologyandpractices.Designthinkinghasbecomealltherage,andinnovationlabsandincubatorshavepoppedupeverywhere.Yet,despitethesewell-intendedeffortstoigniteinnovation,somefundamentalsareoftenmissinginbuildinganenterprise’scapacitytocontinuallyinnovateandtomoreseamlesslyintegrate“business”and“design”:

Embeddingdesignthinkingtakesmorethanafewshortbootcampsandplaybooksthatoversimplifythecomplexitiesofturningideasintobusiness.

Newideasmustbeexplicitlylinkedtotheenterprisestrategyandintegratedintotherunningofanenterprise.

Integrationofdataanalysisandvalidationiskeytobuildingabusinesscase.Numbersmatterwhenitcomestomakingabusinessinvestment.Fact-basedreasonstobelievebuildconfidenceintheinnovationpathway.

Innovationisasharedquest.Itcallsforengagementthroughouttheenterpriseandofleadershipatalllevels.

Innovationismuchmorethananapplicationofmethods.Itcallsfortherightmindsetandregulationofthinkingmodes.

Thesearethecriticalfactorsthathaveinspiredthissecondedition.ThisbookisintendedtobringBusinessDesignintothecurrentcontextandreflectworkinthisdisciplinesincethefirsteditionandabroaderviewofhowtocreatevalue,basedonmythirty-nine-yearcareerandthelearningofothers.Mypreceptisthatbusinessisaverycreativeact,andthateveryoneinanorganizationcanandshouldcontributetocreatinganddeliveringnewvalue.Icontinuetobelievethat

thereisanopportunitytoinjectmore“design”intobusinessandmore“business”intodesign.

BackgroundMypersonalbackgroundincludesadecadeatProcter&Gamble,whereIlistenedtoconsumers,madeprototypestogetexecutiveinputtoproductandmarketingideasearlyon,andcraftedbulletproofbusinessplans.WorkingacrossdisciplinesatP&Gwasalwaysrewarding,becausepeopleacrossallfunctionsinthatcompanyhadsomethinginsightfulandclevertocontribute.Wonderingwhatitwouldbeliketobecreativeallthetime,Idecidedtojumpthefenceandgointoadvertisinganddesign.

Inthenextfifteenyears,Ilearnedalotaboutthemagicofimaginationandthevalueofmakingideastangible.Ialsolearnedthatstrategyisofteninspiredbyanovelidea.WhileIinitiallyresistedthatnotionbecauseIwasastrategist,Icametoappreciatethetruthinthatnotion.Ashumans,wenaturallybeginwithinsightsandideas,notstrategies,thoughweabsolutelyneedtohaveaclearstrategytooptimizeourwayforward.

IthenmetRogerMartin,thevisionarydeanoftheRotmanSchoolofBusinesswithanambitiontotransformbusinesseducation.Heofferedmetheopportunitytobringthosetwoworldstogetherandcontributetoanexperimentinbusinesseducation,centeredonthenotionofBusinessDesign.TheideabehindBusinessDesign:tointegratethebestpracticesofbusinesswithdesign-inspiredmindsetsandmethodstohelporganizationstackletheirinnovationchallenges.IncollaborationwithDavidKelley(co-founderofinnovationconsultancyIDEOandStanford’sd.school)andPatrickWhitney(deanoftheInstituteofDesign,IllinoisInstituteofTechnology),wesetofftodesignafreshapproachtoeducationandbusinessinnovation.Ourapproachwouldfocusonhowtobestmeetcustomerneeds,generatebreakthroughsolutionsforcustomers,andtranslatethosebigideasintofocusedandactionablebusinessstrategiesthatwouldgreatlyincreasethechancesofinnovationsuccess.Thiswastheinspirationforthe3GearsofBusinessDesign:EmpathyandDeepHumanUnderstanding,ConceptVisualization,andStrategicBusinessDesign,asyouwillreadaboutinchapter1.

In2005,Rogerbroughtanexcitingopportunitytothisgroup.Oneoftheworld’smostadmiredcompaniesbelievedthatdesignthinkingcouldplayakeyroleinunlockinginnovation,definingmorecompetitivestrategies,and

ultimatelydeliveringgreatervaluetothemarketandtheenterprise.Thatcompanywasmyalmamater,Procter&Gamble.A.G.Lafley,P&G’sCEOatthetime,wantedtopropelP&G’slevelofinnovationandgrowthintothefuturebypushingthevalueofdesignbeyonditscurrentapplicationinproductandpackaging.Toleadthisquest,heappointedClaudiaKotchka,aP&Gbusinessleaderwithastrongtrackrecordforresultsandapassionfordesignasthecompany’sfirstvice-presidentofDesignInnovationandStrategy.OurintegratedapproachwasfirstputtothetestwiththeGlobalHairCareTeaminDecember2005andsubsequentlyrefinedandrolledouttotheenterprisegloballytofortifyP&G’sreputationasoneofthemostinnovativecompaniesintheworld.Part1ofthisbookendswithaninterviewwithClaudiaonhertipstoleadsuchamassiveglobalenterprisetransformation.

ConcurrentwithscalingtheP&Gprogram,welaunchedafull-scaleinitiativetoadvancethepracticeofBusinessDesignandformedastrategyinnovationlabcalledDesignWorksatRotman.Ourambitionwastoturnthisdesign-inspiredapproachintoamethodologythatcouldbeappliedinadeliberate,rigorousmannertofull-scaleinnovationprojects.Overthenextsevenyears,weengagedinacombinationofteaching,research,experimentation,andpracticeactivitiesaimedatadvancingthediscipline.

Weworkedwithtopindustryexecutivesandbusinessteamsacrossavarietyofsectorsandcompanies,includingP&G,Nestlé,Pfizer,Medtronic,Whirlpool,Frito-LayandSAP,aswellaspublicinstitutionsandgovernmentteams.WeappliedBusinessDesigntomanysectorsandcountries,includingextensiveworkinSingapore.Thereourprogramentailedabroad-scaleprogramforbusinessexecutivescommissionedbytheSingaporegovernmentagency,SPRING,anorganizationdedicatedtodevelopingaproductive,innovative,andcompetitivesmall-to-medium-enterprisesectortocreatemeaningfuljobsforSingaporeans.Wedevelopedanddeliveredacomprehensive“teachtheteachers”certificationprogramtotransferBusinessDesignknowledgeandskillstothefacultyofSingaporePolytechnic.TheirambitionwastoplayanimportantroleinSingapore’snationalagendatoembeddesignbroadlyintotheirworkforce.1Theyhaveachievedremarkableresults,astoldinchapter7ofthisbook.

AlloftheseactivitiesenabledustobuildoutourmethodologiesandtestthevalueofBusinessDesignwithmanydifferentorganizationsandtypesofchallenges.Thisworkculminatedinthefirsteditionofthebook,whichcapturedthelearningfromthoseyearsatRotmanandthemountingevidencethatBusinessDesign

isalearnableinnovationdisciplinethatcantransformthewayenterprise

teamscreatenewvalue,shapestrategies,andmobilizesupport;hasthepotentialtobringoutthecreativesideofeveryonewithoutcompromisingtherigorrequiredtomakeameaningfulmarketimpact;

helpsgettobiggerideasfasterbyengagingteamsinacommonambition,withthebuy-inandknow-howrequiredtomakeimportantthingshappen;and

bringsavaluablebalancetoconventionalbusinessplanningbyexpandingopportunitiesanddevisingbreakthroughbusinessstrategies.

Totestthispremiseoutsidetheacademicrealm,Iestablishedapracticein2012calledVukaInnovation,toputBusinessDesigntowork,doresearchintowhathelpsandhindersenterprise-wideinnovation,andadvancethedisciplineofBusinessDesign.SomeofthatworkissharedinthissecondeditiontofurtherdemonstratehowBusinessDesigncanhelpcreateandsustainnewvalue.

CommonEnterpriseChallengesSomeofthechallengesthatenterprisesfacehavenotchanged,asIoftenhear.2

“Wearenotdifferentenough.Thechangeswearemakingareincrementalandnottrulyinnovative.”

“Wearespendingtimeandmoneyonalotofinitiatives,butwewonderifweareinvestingintherightthings–thosethatreallymattertoourcustomer.”

“We’vebeenstumpedbythesamechallengeforyears.Wecan’tseemtomakeanymeaningfulheadway.Weneedanewapproach.”

“Weoperateinamature,saturatedindustry.It’shardtofindwaystodrivegrowth.”

“Howcanwemaximizetheimpactofdesigninarisk-averse,data-drivenorganization?”

“Howcanwecreateastrongerappetitetoexperimentandlearninthemarket?”

“Wecan’taffordtoalwaysoutsourcetheinnovationprocess.Howdoweengageourenterprisetoparticipateinthisprocesstogainfirst-handmarketinsight?”

Ifanyoftheseresonatewithyou,IamhopingthatthepracticeofBusinessDesignaspresentedinthisbookcangiveyousomepracticalprinciples,frameworks,andtoolstotackletheseissues,frominsightsandideationthroughtostrategyandactivation.Thiseditionreflectstheinsights,observations,questions,andfeedbackfromawiderangeofenterprisesandmovesbeyondthecontentsofthefirsteditiontoaddressmoredeeplyhowtocreatepositivechangeinbusinessculture.Itsharesthekeyprinciples,frameworks,andtoolsthatinnovationpioneershavefoundmostvaluableintheirambitionstotransformandadvancetheirbusinesses,buildingontheworkwedidatRotmanthrough2012andtheworkwe(atVukaInnovation)andothershavedonesince.

HowThisBookWorksPartoneofthisbookisaboutthepracticeofBusinessDesign–whatitis,howitisdone,andwhatitcanyield.Thispracticeisanchoredinthe3GearsofBusinessDesign,aframeworkforthinkingabouthowtodesignnewsolutionsandstrategiesforsuccess.IbeginwithanOverviewofBusinessDesignandmovethroughPreparingforYourQuestandContextualizingYourChallenge,followedbychaptersoneachofthe3Gears.IconcludepartonewithachapteronTransformation,sharinglearningfromothersonhowtoembedtheseinnovativepracticesintoyourenterpriseculture.

Eachchapterinpartone(aftertheOverviewofBusinessDesign)beginswithastorytoillustratetheapplicationofBusinessDesign,followedbyabriefoverviewofthegoals,activities,andoutcomesforthatphaseofdevelopmentandprinciplestoguideyouthroughthoseactivities.Eachchapterendswithaninspiringinterviewwithpeoplewhobringtheseprinciplestolife.

ParttwoisyourToolKitandincludesthemethodsandtipsthatothershavefoundmostvaluable.Eachtoolincludesbriefinstructionsandexamplesfromavarietyofprojects.Thesetoolscanenrichyourdiscoveryanddevelopmentprocessesandunlocktheingenuityofyourenterpriseteams.

Thisbookisdesignedtoserveasanongoingreference,notaone-timeread.Itsvaluewillbedeterminedbywhatyoudowithit.Herearesomethingsyoumightdoasyoureadthisbook:

Reflectonyourcurrentstate.What’syourbiggestchallenge?Howaheadofthegameareyouincreatingyourfuture?Whatisyoursuccessratewithbig,breakthroughideas?Whatholdsyoubackfromgettingbigideastomarket?Whatfactors–structural,operationalorcultural–areslowingyoudown?

Haveadisruptiveprojectinmind.Thinkaboutthatchallengeanddefineitmorespecifically.Thismaybeanunfulfilledambitionormajorchallengethatyouhaven’tbeenabletotackleforsomereasonwithinyourcurrentwayofworking.Withareal-worldchallengeinmind,thisbookwillenableyoutoimaginehowaBusinessDesignapproachcanhelpyoutackleachallengethatisimportanttoyou.

Applythesemethodsandreflect.Don’tbeafraidtoexperimentwithmethods.Ifyoudiscoverthatonemethodbringsafreshperspectivetoyourdevelopmentefforts,injectitintoongoingprojects.Thisisthebestwaytoseeimmediatevalueinyournewlydiscoveredskills.EverytimeyouputBusinessDesignintopractice,askyourselfwhatwasdifferentfromhowyounormallyworkandhowitenhancedyourcapacitytoinnovate.Atthesametime,reflectonwhatmakesintuitivesense.There’salotofcommonsenseattherootofBusinessDesign.

AppreciatethedeepervalueofBusinessDesign.Thisapproachcanenrichyourabilitytogeneratenewinsightsandideas.Itcanalsohelpyougettobiggerideasfaster.Spendingtimeonthemorecriticalelementsofinnovation(customerneeds,game-changingideas,andstrategiestorealizenewvalue)cansaveyoutimeandmoney.BusinessDesignisanaturalwaytocreateandcapturenewvalue.

Takethetimetodoitrightandcommittoaction.BusinessDesignisnotaboutonebig“Aha!”;itisaboutgeneratingbothimmediateandlong-termimpact.Makingmeaningfulmarketimpactrequirestime,commitment,andperseverance.Asyouworkthroughtheprocess,youwilldiscovernewinsights,ideas,and“quickwins”thatwillallowyoutoactivateyournewlearning.Ateverystep,askyourself,Whatvaluehavewebroughtsofar?Howcanweactonitnow?

Teach,propagate,andcelebrate.Successinspiressuccess.IfyoulikewherethepracticeofBusinessDesigntakesyou,youcanmovetowardexpandingthepractice.Withsomeevidenceofvalue,youcanbegintostrategicallyrolloutBusinessDesigninasystematicwayandboostyourownexpertiseinthe

process.

BusinessDesignisajourneyofnewdiscoveriesandlearningthatcantransformthewayyouworkandmakeyourworkmoremeaningful.I’mhopingyou’llgaininspirationfromthestoriesinthisbookandalsoacquirepracticalideasonhowtoenhanceyourinnovationjourneywithinyourenterprise.

AWordonWordsEverydisciplinehasitsownnomenclature,whichisoftendismissedasjargon.ThereafewwordsusedfrequentlyinthisbookthatIhavechosenforspecificreasons.Herearesomeofthesetermsandaguidetohowyoushouldthinkofthem:

Value:ThemostimportantnotioninBusinessDesignandintendedinthebroadesttermstomeananythingofrelativeworth,merit,orimportance–financialorotherwise.

Enterprise:Anyorganizationthataimstocreatevalue–public,private,ornot-for-profit.Itreflectsthespiritofanyorganizationthatisreadytoundertakeprojectsofimportance.

Stakeholders:Yourendcustomers(consumers,customers,clients,orguests)aswellasimportantenablersandinfluencers.Inacomprehensivesolution,manyofthesestakeholderswillplayaroleinyoursuccess.

Frameworks:Nottobeconfusedwithmethodsortools,frameworkshelpanchor,prompt,ororganizeyourthinking.

Methods:Usedtorefertoamethodology,awayofgettingthingsdone.Thiswordisusedinterchangeablywith“tools.”

Outcomes:Ihavefocusedon“outcomes”ratherthan“results”becauseresults,inbusiness,areoftenthoughtofinfinancialtermsandtaketimetorealize.Outcomes,however,shouldbemoreimmediateandtangible.

PartOne

ThePracticeofBusinessDesign

ThedisciplineofBusinessDesignisinspiredbythemanyorganizationsthathavecreatednewvalueandhavedemonstratedatrackrecordofsustainedsuccess.ThissectionpresentswhatBusinessDesignisandhowyoucanputthesetriedandtrueprinciplesandpracticestoworkforyouinadeliberateandconsistentway.ThegoalofBusinessDesignistocatalyzeandaccelerateyourdevelopmentonapathtocreatenewvalueforthemarketandforyourenterprise.

1OVERVIEWOFBUSINESSDESIGNCREATING,DELIVERING,&SUSTAININGVALUE

TheprinciplesofgreatBusinessDesignareevidentinmanysuccessfulbusinessventures.Applyingtheseprovenprinciplesdeliberatelyandconsistentlycanhelpincreaseyouroddsofturningyourinsightsandideasintogreatbusiness.HereisonesuchexamplethatbringstolifetheunderlyingprinciplesofBusinessDesign.

In1992,IfacilitatedaninnovationsessioninNestlé’sglobaltrainingcenterinVevey,Switzerland.WhenIwenttohelpmyselftoacupofcoffee,whatIfoundwasunexpected–aratheruniqueandextraordinarycoffeemachinethatmadeanincrediblecupofespresso.Allitrequiredofmewastheplacementofonesmall,easy-to-usecoffeecapsuleintothemachineandthepushofabutton!

Fast-forwardsixteenyearslaterto2008.WhilevisitingtheChampsÉlyséesinParis,IcameuponamagnificentNespressoBoutiquesellingthesamecoffeesystemIhaddiscoveredmorethanadecadeearlierinaconferenceroom.Nestléhadleveragedthatcoffeesystemintosomethingmuchmore.NotonlydidtheNespressoBoutiqueexperiencepromptmetobecomealoyalcustomerofthecompany,italsodrovemetoknowmoreabouthowtheyhadexpandedthisideaintosucharemarkablebusiness.WhathadNestlédonetocreatesuchmomentumandturnNespressointosuchaphenomenalmarketsuccess?

Let’sfirstconsiderthemarketinwhichNespressochosetocompete.Coffeeisoneofthemostpopularbeveragesworldwide.Theconsumptionofcoffeeworldwidecurrentlyexceeds500billioncupsayear.Annualconsumptionhassteadilyclimbedinvolumewiththeproliferationofcafés,coffeefranchises,andspecialtycoffeebeverages.3Asconsumptionhasescalated,sohascompetition.Manycompaniesarejockeyingforpositiontobetheonetoprovideyouwithyourspecialcoffeeoccasion.

Whatifamagicalcaféencountercouldbeexperiencedathome?Tothecoffeeconnoisseur,havingyourownstylishespressobarathomeandbeingable

tomakeaperfectcupofcoffeeatthetouchofabuttonwithoutanymessistrueindulgence.ThisiswhereNespressodeliveredanewandgame-changingexperiencetoitscustomers.

YourNespressoexperiencebeginsatthemomentofitsdiscovery.EnteringaNespressoBoutiqueforthefirsttimeisadelighttoanyonewithanappreciationforcoffeeandstylishdesign.Beautifulandinviting,youmightfirstwonderifyou’reenteringacaféorachicartgallery.Brightlycolored,high-tech,pre-filledcoffeecapsulesareartisticallydisplayedalongthecafé’swallsalongsideexhibitsofsleeklydesignedcoffeemachinesandaccessories.YourexperienceisfurtherenhancedbyaCoffeeAmbassadorwhoassistsyouwithcoffeeselection,aswellasanespressobarwhereyoucantastevariousoptions.

IfyouareoneofthemanywhopurchaseaNespressosystem,yourlifechangesimmediately.Notonlycanyouenjoyyourfavoritecoffeeanytimeyoulikeinthecomfortofyourhome,butyoualsoreceivemanyperksasaNespressoClubmember.MembersreceivespecialoffersandsuperiorcustomerserviceeitheroverthephoneorthroughtheonlineNespressoBoutique.Thecompanyalsoeffectivelycommunicatestheircommitmenttotheenvironmentthroughitscapsule-recyclingprogram.Andifyoutraveloften,youwillbepleasedtodiscoverthatmanyluxuryhotelsprovideNespressomachinesintheirrooms.

Nespresso’ssuccessstartedwithavisiontocreatetheultimatecoffeeexperienceforcoffeeloversaroundtheglobeinaunique,innovativewaythroughanewproprietarycoffeesystem.Throughexquisitedesign,high-qualitymanufacturing,anddedicatedcustomerservice,Nespressobroughtnewvaluetothecoffeemarket.Thesepursuitswerecombinedwithsophisticatedretailconceptsandwell-choreographedfulfillmentcenterstofurtherenhancevalueandcustomerexperience.

Howdidtheyeffectivelyturntheirideasintoapowerfulbusiness?Forone,thecompanycollaboratedwithsomeofthebestdesignandmanufacturingcompaniesintheworld,likeAlessi,Krups,andMagimix.Nespressoalsoconceptualizedadistinctroute-to-marketapproachtolinktheirretailboutiques,fulfillment,andcustomer-servicegoals.AndthecompanydemonstrateditscommitmenttoenvironmentalandsocialresponsibilitiesthroughitsEcolaborationinitiative,whichsupportscapsulerecyclingandagriculturalprograms.Theseadduptoadistinctandeffectivebusinessstrategy.

Withthisstrategy,Nespressohasgrownfromoneboutiquein2000tomorethan700worldwidein2017,anditoperatesinseventy-sixcountrieswithmorethan13,500employees,50percentofwhomareindirectcontactwith

customers.Ithasestablishedmorethan100,000recyclingpointsandhomecollectionineighteencountries.Withmorethan6.5millionFacebookfansandanever-expandingclubmembership,Nespressohasbuiltsalestomorethan$4billionannually.4Nespressohassuccessfullyleverageditsbrandloyalty,continuallyexpandeditsproductlineandaccessories,andbuiltstronghotelalliances.Byallaccounts,theseareimpressiveresults!

Nespresso’sremarkablesuccessputsthemontherosterofexceptionalcompanieslikeApple,Disney,Procter&Gamble,Netflix,LinkedIn,Nike,IKEA,Fidelity,FourSeasons,Virgin,andmanyothersthathaveenjoyedlongrunsofsuccessincompetitiveindustries.Instudyingthesecompanies,onecanappreciatethattherearemanythingsthesecompaniesdowell.Onecanalsoseethattherearethreethingstheyalldoexceptionallywell:

1.Demonstrateadeep,holisticunderstandingoftheircustomersandtheirneeds;

2.Continuallyexploreanddelivernewofferingsandexperiencesthatuniquelyfulfilltheseneeds;and

3.Engageinadistinctcombinationofactivitiesthatleveragetheirenterpriseactivitiesandcapabilitiesinawaythatisdifficultforotherstoreplicate.

ThisistheinspirationbehindthecentralframeworkofBusinessDesign–the3Gears.Initiallydevelopedin2005tohelpProcter&Gamble,theconceptofthe3GearsofBusinessDesignhasbeenusedtodrivevaluecreationformorethanadecadewithenterprisesofalltypesaroundtheworld.

The3GearsofBusinessDesignThe3GearsofBusinessDesignleveragethelearningfromsuccessfulinnovatorsandaddressthreecriticalquestions:Whatdopeopleneed?Howmightwebettermeetthoseneeds?Whatisourstrategytodeliverandscalethisidea?

Here’sanoverviewofthe3GearsofBusinessDesign(Figure1)tohelpyouunderstandhoweachonecanenhanceopportunitiesforinnovationsuccess.5

Fig.1The3GearsofBusinessDesign

Gear1:Empathy&DeepHumanUnderstanding–Whatdopeopleneed?

GreatBusinessDesigncallsforadeepunderstandingofpeople,especiallycustomers.Thisrequiresmorethanmarketresearchandcustomer-satisfactionsurveys;itcallsforanempathetic,holisticappreciationforpeople’sneeds.Whenneedsareunfulfilled,customersarenotcompletelysatisfied.Thatrepresentsatremendousopportunityforcreatingnewvalue.

Gear1ofBusinessDesignentailsunderstandingindividualsatamuchdeeperlevelthanyoumaybeaccustomedto.Itcallsforunderstandingindividualsbeyondtheirconsumptionbehaviorsandpreferences.Itisalsovaluabletoappreciatethebroaderhumancontext–thevariousrolesandrelationshipswithinthehumanecosystem.Itisimportanttoask,Whomattersandwhatdotheyneed?

Thisprocessalsoinspiresandmotivatesteams,asIhaveheardthroughmyworkthat“Connectingwithpeopleonadeeperandmoreauthenticlevelgivesmeaningandpurposetoourwork.”6Dailyactivitiesnaturallyassumegreatermeaningwithastrongersenseofhuman-centeredpurpose.

EmpathyanddeephumanunderstandinginGear1willinevitablyshiftyourperspectiveandhelpidentifynewopportunitiestocreatevalue.Manytimes,you

mayfindtheinitialproblemwasnotadequatelydefinedorwastoonarrowlyframed.Gear1helpsreframehuman-centeredopportunitiesandprovidesaninspiringspringboardforexplorationinGear2.

Gear2:ConceptVisualization–Howmightwebettermeetthoseneeds?

Trulydisruptiveideasdelivernewexperiencesthatbettermeettheneedsofyourcustomersandotherstakeholders.Thatcallsforanopenexplorationofnewpossibilitiesthatareoutsideyourcurrentparadigms.Goingbeyondthefamiliarandcomfortablewillleadtobigger,moreholisticsolutionsthathavethepotentialtocreategreatervalueforthemarket.

Gear2ofBusinessDesignencouragesexplorationofbolderideasandthedesignofexperiencesthatwillbettermeethumanneeds.Throughthisprocess,youwillbeabletoexpandyourperspective,createmeaningfulnewvalue,andrefineyourideasintoadistinctvisionforsuccessbeforecommittingpreciousresourcesandinvestmentstoaparticularpursuit.Whileinnovationrequiresyoutotakerisksandbecourageous,thepotentialforpositiveresultsandunimaginableoutcomesarewellworththejourney.

ThroughtheconceptvisualizationprocessofGear2,youwillrefreshyourvisionofhowyoumightbringnovelsolutionsandbetterexperiencestothelivesofyourstakeholders.Definingvaluable,high-potentialsolutionsinconcretetermswillprepareyoutodeviseyourstrategyandactivationplaninGear3ofBusinessDesign.

Gear3:StrategicBusinessDesign&Activation–Whatisourstrategytodeliver&scalethisidea?Gear3istheessentialstepinturningideasintobusiness.Boostingtheoddsofinnovationsuccessandreturnoninvestmentrequiresaclearstrategy,asolidbusinesscase,andproperlydesignedsystemstoactivateandultimatelydelivernewideasatscale.

Gear3ofBusinessDesignhelpsyoustrategicallyfocusyourenergyandresourcestobestrealizeyourvisionandgoals.ThisaspectofBusinessDesignidentifiesopportunitiestomonetizeyouridea,revealsspecificcapabilitiesthatmustbedeveloped,andinformsthedesignofmanagementsystemstosupportnewideasmakingtheirwaytothemarket.Throughtheseefforts,yourvisionwillbecomemoreviableandvaluable,andensurethateveryimportant

stakeholderwins.Andasaresult,theentireenterprisegainsincreasingpotentialforcompetitiveadvantageinthemarketplace.

Gear3ofBusinessDesignaimstoanswerimportantstrategicquestionsthatwillturnyourideasintobusinessandenhanceyourcompetitiveadvantage.Strategyistheanswertothesefiveinterrelatedquestions,definedbyRogerMartin,formerdeanatRotmanSchoolofManagement,andpresentedinPlayingtoWin:HowStrategyReallyWorks:7

Whatisyourwinningaspiration?Thepurposeofyourenterprise,yourmotivatingaspiration.

Wherewillyouplay?Aplayingfieldwhereyoucanachievethataspiration.

Howwillyouwin?Thewayyouwillwinonthechosenplayingfield.

Whatcapabilitiesmustbeinplace?Thesetandconfigurationofcapabilitiesrequiredtowininthechosenway.

Whatmanagementsystemsarerequired?Thesystemsandmeasuresthatenablethecapabilitiesandsupportthechoices.

Gear3providesyouwithclarityonhowtoactivateyournewvisionandcreatenewvaluebymakingexplicitchoices.Thisprocesswillhelpyourefocusyourresourcesinthemosteffectiveway.WhenusedincombinationwiththeothergearsofBusinessDesign,anenterprise’spotentialforsuccessininnovationisgreatlyenhanced.

BusinessDesignisahighlyiterativeprocessthatrequiresadeepunderstandingofpeople,theexplorationofnewpossibilities,andtheingenuitytoturnnewideasintobusiness.Thosewhosuggestinnovationsuccesscanbeachievedthroughboardroomstrategyexercisesaremissingtheimportanceofconnectingwithstakeholdersonahumanlevel,engagingothersinideacreation,andformingacohesivevisionandstrategytogetthere.Likewise,thosewhoseeinnovationasunbridledcreativityfailtoappreciatetheresponsibilityandcommitmentneededtodeliveronenterprisegoals.GreatBusinessDesignrecognizesthatbothcreativityandanalyticalrigorarecriticaltoinnovationandenterprisesuccess.

ImportantMindsets,Methods,&ThinkingModesMountingevidencenowsupportsthenotionthattheapplicationofdesign-inspiredmethodscanfosterinnovativethinkingandimproveyoursuccess.However,simplymasteringspecificmethodologiesisnotenough.Whilethemethodsareimportant,soisyourmindsetandhowyouregulateyourmodeofthinking(Figure2).8

Skillfuldesignershaveawayofperformingtheirworkandrelatingtotheworld.Througheducation,experience,andpractice,theydeterminebestpracticesthathistoricallyhavenotbeentaughtinbusinessschoolsorincorporatedintoenterprisepractices.FortheinnovativeleadersatNespresso,intuitionwastheinitialguide,buttheorganizationwasalsoabletobecomemoredeliberateinitsstrategyandvaluecreationovertime.That’swhatledtoitsincrediblesuccess,andthat’swhyBusinessDesignisanexerciseinagility–emotionally,tactically,andcognitively.

Fig.2Mindsets,Methods,andThinking

Asinotherdesigndisciplines,yourabilitytoexcelinBusinessDesignisdependentontherightmindsetandtheabilitytouseappropriatemethodsalongtheway.Thesemethodswillunlockyourbestthinkingandtapintoyourintuition,imagination,andabilitytocreateoriginalvalue–tothemarketandtheenterprise.Practicedonanongoingbasis,BusinessDesignwillbecomeanincreasinglyintuitivewaytoenhanceproductivity.Thefollowingsectionisan

overviewofthemindset,methods,andthinkingmodesofBusinessDesign.

MindsetMattersHavingtherightmindsetfrombothanindividualandteamperspectivecanbeasourceofenergyandinspirationinthejourneyofdiscovery,creation,anddecision-making.However,thewrongmindsetcanhindercollaborationandstallprogress.Yourmindsetaffectshowyourelatetoothersandyourintrinsicmotivationintacklingthechallengesathand,yourcapacityforlearning,andteamproductivity.

Mindsetfacilitatestheabilitytoseeandcreatenewvalue.Itempowersthepeoplewithinanenterprisetoexercisecreativityalongwiththeboldnessrequiredtointroduceinnovationstothemarket.

Anabundanceofresearchexiststhatlinksmindsettoperformance.ThethreekeymindsetsthatarecriticaltotheeffectivepracticeofBusinessDesigninmyexperienceareempathy,positivity,andcourage.

Empathy:Understandinghowothersseetheworldisfundamentaltocreatingnewvalue.Atthesametime,empathyenhancestheabilitytocollaborateandworkwithothers,andnurturesagreatersenseofpurposeandmeaningindailyactivities.Anempatheticmindsetelevatesinspiration,motivation,andcreativity.

Positivity:Nothingkillsacreative,pioneeringspiritlikenegativity.Criticalthinkingisimportant,butapositivecan-doattitudeandacommitmenttoseeingchallengesandproblemsasuniqueopportunitiesforinnovationarealsokey.Positivityiscontagiousandhelpsbuildteamconvictionandresilienceinthepursuitofasharedvision.

Courage:Anypursuitthatisnewandhasuncertainoutcomesrequirescourage.Courageisrootedinacommitmenttodoingtherightthing.InBusinessDesign,thatisanchoredinputtingpeople’sneedsfrontandcenter,exploringandvalidatingnewwaystodelivervalue,andmakingsounddecisionsonhowtomoveideasforward.

MethodsasaWayofDoingBusinessWiththerightmindset,methodsprovideapracticalwayofexploringnew

options,buildingrobustsolutions,makingkeydecisions,andtakingboldaction.Design-inspiredmethodshelpustapintoinsights,intuition,imagination,andinnateingenuitythroughdeliberatetasks.Methodsalsohelpacceleratethedevelopmentprocessthroughathoughtfulanddeliberateapproachtoframingthequestionsyoumustanswerandthemethodsyoudeploy.Thisdesign-inspireddisciplinewilloptimizeyourinnovationpathway.

Therearetwowaysinwhichmethodscanpushyourthinking:toopenupandexplorenewpossibilities(divergentmethods)andsynthesizeandeffectivelymakedecisions(convergentmethods)(seeFigure3).FromaBusinessDesignperspective,everystageofinnovationrequiresboth.

Divergentmethodsareallaboutexploringoptions.Theyenableyoutoexpandyourperspectiveofthemarket,discovernewunmetneeds,andgeneratenewsolutions.Divergentmethodsalsoallowyoutoconsiderstrategicwaystoconfigureyourbusinessmodeltodeliveryourvision.

Convergentmethodshelpyoutoassessandfocusyourscopeofconsiderationbysynthesizingcoreneeds,solicitingfeedbackonearlyideas,andforcingstrategicchoices.Ineachphaseofdevelopment,therecomesaturningpointwhereyoumustbegintosynthesizeandmakedecisions.

Whilethereareliterallythousandsofdesign-inspiredmethodsinthepublicdomaintoday,theygenerallyfallintothesecategories:

Multidisciplinarycollaboration:Capitalizingondiverseperspectivesandtypesofexpertise.Thisleadstoricher,morerobust,andmorewell-consideredoutcomes.

Need-finding:Developingadeeperunderstandingofthepeoplethatmatter,complementingquantitativeanalysiswithmoreethnographicmethodssuchasobservationandlisteningtouserstories.Thisleadstonewdiscoveriesthatcanbesynthesizedintowhatmattersmosttothepeopleyouserve.

Visualization:Helpingotherstoseerelationships,newuserexperiences,andevennewstrategiesinvisualways,insteadofrelyingondocumentsandverbaldescriptions.Thishelpsensureeveryoneisonthesamepage.

Iterativeprototyping:Translatingabstractconceptsintotheconcreteprototypesinroughformearlyon(beforethebigbucksgetspent).Makingisacatalystforthinking,dialogue,learning,andsolutionimprovement.

Co-creationandfeedback:Invitingusersandotherstakeholdersintothedevelopmentprocesstogainvaluablefeedbackandadvancebothsolutions

andstrategicmodels.Thisaccelerateslearningonhowtoensurethatideasdeliverthemostvalue.

Systemsmapping:Makingconnections,visualizingrelationships,andsynthesizingthewaypeople,solutions,andenterprisesystemsallconnect.Thishelpscreateamorecohesivepicture.

Storytelling:Capturingtherichnessandcomplexitiesofbigideasthoughcompellingstories.Thishelpsotherstofeeltheimpactofthevisioninaholisticandhumanmanner.

Experimentation:Tryingnewthingsandtestinguncertaintieswiththeintenttolearnandadvancedevelopment.Thishelpstoimproveideasandmitigateriskasyouadvanceandscaleideas.

Fig.3DivergenceandConvergenceProcess9

Mostpeopleassociatethesemethodswithcomingupwithabigidea.InBusinessDesign,thesedesign-inspiredmethodsareequallyvaluableindesigningagreatbusiness.Designingastrategytobringnewideastolifeisahigh-octaneexerciseinstakeholderneed-finding,systemsmapping,iterativeprototyping,collaboration,andstorytelling.Thesemethodsareusefulateverystageofdevelopment.

DuringmytenyearsatProcter&Gamble,andthroughoutmyfifteen-yearcareerinbranddesignandcommunications,Iwitnessedallofthesemethodsputintopracticeinamoreintuitiveway.Consistently,thosewhousethesemethods

–andunderstandwhentodivergeandconverge–makeprogressmorequickly,gainmorewidespreadsupport,andultimatelyachievebetterresults.

RegulatingThreeModesofThinkingHowyouregulateyourthinkingmodeaffectsyourabilitytocompletespecifictasksandyourabilitytocollaboratewithothers.Fortunately,yourmodeofthinkingisnotstatic,andyoucanchoosehowyou“think”atdifferenttimesbydevelopinggreatermindfulness,discipline,andmentalagility.Masteringhowyouregulateyourthinkingisjustasimportantasmasteryofmindsetandmethodologies.

AtoolIhaveusedinteachingBusinessDesignwasdevelopedbyOneSmartWorld,tohelppeoplebetterappreciatetheirownpersonalthinkingpreferences.10Manyofmystudentscitethisprofilingtoolascriticalinhelpingthemworkmoreeffectivelyonteamsandtacklesomeofthemoredifficultprojecttasksrequired.Inessence,thistoolhighlightsthreekeymodesofthinking:

Understanding:IneachgearoftheBusinessDesignprocess,therewillbetimestopushthepausebuttontodeepenunderstanding.Alackofunderstandingcanleadtorecklessbehaviors.AndwhileitisanessentialcomponentinGear1,itremainsimportantthroughouttheBusinessDesignprocess.Whetheryouareconsideringpeople,ideas,choices,oractions,understandingisneededforoptimalresults.

Generating:Thismodeofthinkingofferstheopportunitytounleashyourinsightsandcapacityforcreativity.Likeunderstanding,itisimportantateverystageofBusinessDesign.Generatinghypothesesandprototypesthatanswerquestions,Whatmightpeoplereallyneed?Howmightweaddressthatneed?Howmightweconfigureourbusinesstomeetthisgoal?Thesequestionshelpgenerateamorediversearrayofoptionstoconsider.

Synthesizinganddeciding:Whiledivergenceiscritical,therearenaturalpointsintheBusinessDesignprocessatwhichyouwillneedtosynthesizeandmakechoices.Whichopportunitygapsinthemarketarewegoingtopursue?Whichcomponentsoftheideaofferthegreatestvalue?Whatstrategywillyouemploytoachieveyourvision?Howwillthisstrategybeactivated?Thismodeofthinkingisparticularlyimportantintherealizationofyourinnovationgoals.

Mostpeopletendtopreferonemodeofthinkingoveranother;forexample,onemightlovegeneratingideasbutnotmakingdecisions.Recognizingthateachofushasdifferentpreferences,youcanleverageteamdiversityinthinkingpreferencesaccordingtothetaskathand.Atthesametime,itisimportanttobeabletoswitchgears,dependingonthetask.Byhavingahighdegreeofmindfulnessanddisciplineineachofthesecognitivemodesindividuallyandcollectively,youwillenhanceyourproductivityandcapacitytoinnovate.

BusinessDesign&EnterpriseTransformationAsbusinessesarecontinuallychanging,yourcompetitiveadvantagewillbedeterminednotonlybythestrategyyoudesignforfuturesuccess,butalsotheprinciplesandpracticesthatshapeyourinnovationculture.Animportantaspectofanyenterpriseisitscapacitytoeitherseizenewopportunitiestogroworpivotattherighttime.Thiscapacitymusttranscendeveryleveloftheenterprise.ThepracticeofBusinessDesigncanhelpenhanceyourcollectivecapacitytoadaptandgrowwithinanever-shiftingbusinessandsocialclimate.HerearefivekeywaysbywhichBusinessDesigncancreatevaluewithintheenterprise:

Fosteringdeepercustomerunderstandingandsensitivitywithintheenterprise;

Givingenterprisemembersthelicensetoexplorebiggerideas;Stimulatingcollaboration,dialogue,andlearning;Creatinggreateralignmentthroughaclearandfocusedstrategy;andEstablishingnewstructuresandsystemstosupportandsustaininnovation.

ThepracticeofBusinessDesignisvaluableateverylevelofyourorganization.Asanindividual,youwillbebetterequippedtoleadbyharnessingthepowerofteamsandnavigatingthecourseofprogressinaninspiredandconfidentmanner.Asateam,youwillhaveagreatersenseofalignmentandabilitytocreateandactonopportunitiesinaproductiveandacceleratedfashion.Asanenterprise,thepracticeofBusinessDesignwillhelpenhanceyourabilitytocontinuallyseizenewopportunitiesandmaintaincompetitiveadvantage.Andatthehighestlevel,BusinessDesignprinciplesandpracticeshavethepotentialcreateandsustainaninnovationeconomy.(SeeFigure4.)Singaporeisacountrythatexemplifieshowdesigncaninspireaneconomictransformation,asyouwillreadinchapter7ofthisbook.

Fig.4BusinessDesign:APlatformforInnovationandGrowth

SettingYouUpfortheRestofPartOneNowthatyouhaveasenseofthecoreconceptsbehindthepracticeofBusinessDesign,thebalanceofpartonewalksyouthroughtheprocess,fromthetimeyoudecidetotakeonaquestthroughtoactivation.Thelastchapterprovidessomelearningonhowtoleadothersthroughabroaderenterprisetransformation.WhileI’msureyou’reeagertojumpintoGear1,therearetwoimportantstepstoconsiderbeforethat:PreparingforYourQuest(startingwithathoughtfulplan)andContextualizingYourChallenge(takingstockoftheworldaroundyouandyourcurrentstate).Experienceshowsthatifyouskipoverthesetwoimportantpreludestodevelopment,itwillcomebacktobiteyoulater.

Eachofthechaptersinpartoneofthebookoffersaconsistentformatinpresentingyourgoalforeachphase,keyactivitiesandoutcomes,activationprinciples,andotherimportantconsiderations.Hereishowtherestofpartonewillunfold,withabriefsummationofthecontentandpurposeofeachofthesechapters:

Chapter2:PreparingforYourQuest:Thischaptercovershowtoframeyourprojectinthecontextofyourenterprise,designyourprojectroadmap,identify

therightpeoplefortheinnovationjourney,andestablishtherightconditionsforsuccess.Thiswillfostercommitmenttoasharedambitionandsetyouupforaproductivepursuit.

Chapter3:ContextualizingYourChallenge:Byexaminingcurrentmarkettrends,industryplayers,stakeholderecosystems,andenterprisecapabilitiesandresources,youwillidentifymarketopportunitiesandwaystoleverageyourstrengthsgoingforward.Thiswillhelpyouidentifymarket-basedopportunitiesanddeterminethekeyareasyouwishtopursue.

Chapter4:Gear1–EmpathyandDeepHumanUnderstanding:Human-centeredvaluecreationisrootedinunderstandingtheworldthroughtheeyesofeveryimportantstakeholder,includingbothyourcorecustomersaswellasothersinyourexternalecosystemwhowillbeimportanttoeffectivelydeliveringyoursolutiontothemarketplace.Thiswillhelpyoutoidentifyhuman-centeredopportunitiesforvaluecreationthroughthediscovery,understanding,andvalidationofstakeholderneeds.

Chapter5:Gear2–ConceptVisualization:Thischapterpresentsthevalueofexploringandprototypingideasandconceptsthroughcollaboration,experimentation,andanattitudeofcontinuousrefinement.Thishelpsyoutoformulateaconcretevisionforsuccess,identifypotentialsolutionsforevaluation,andvalidateimportantgame-changingideas.

Chapter6:Gear3–StrategicBusinessDesignandActivation:Thischaptershowsyouhowtotranslateyourvisionintoastrategyandactivateit.It’saboutsettingagameplan,establishingprioritiesfordevelopingandtestinginitiatives,anddesigningyourorganizationforinnovationsuccess.Ithelpsyouidentifycollaborativepartnersandkeycapabilitiesforresourceinvestment,monetizeyouridea,andformulateastrategyinwhichallstakeholderswin.Youwilldefineyouruniqueproposition,createacomprehensiveenterprisestrategy,andgainclarityinyourpathforward.

Chapter7focusesontheimportanceofleadershipinbothinnovationprojectsandenterprisetransformation.ParttwoisaToolKitofmethods,frameworks,andtipstogetyougoingandserveasanongoingreference.

ThingstoKeepinMindBusinessDesignmethods,frameworks,andprinciplesarevaluableatanypointinyourinnovationprocessandhighlyadaptable.Herearesomethingstokeepinmind:

BusinessDesignisnotarigid,linearprocess.TheprinciplesandpracticesofBusinessDesignareahighlyiterativeandintegratedwayofthinkinganddoing.Atalltimes,atruebusinessdesigneractsasanadvocatefortheuser,aprotectoroftheidea,andadisciplinedstrategistwhoactivelypursuesaclearpathtowardfuturesuccess.

BusinessDesignprovidespracticalprinciplesandanexpandabletoolkit.YoucanintegrateBusinessDesignintoyourcurrententerpriseactivitiesandleverageittoboostyourinnovationandstrategypractices.BusinessDesignisnotamechanicalprocess,norisitaboutcheckingboxesorfillingouttemplates.Itisaboutturningfreshthinkingandnewideasintoacompellingbusinessproposition.

BusinessDesignisaflexibleandadaptablepractice.Ultimately,youwillwanttocreateaBusinessDesignapproachspecifictoyourenterprise.Thiswillincluderepeatable,scalablepracticesthatbestfityourcultureandmanagementsystems.

BusinessDesignisanongoingexerciseinagility.YoucanapplyBusinessdesignprinciplesandpracticesonaday-to-daybasiswithshort-termchallengesorusethemwithinacompleteprocessonlong-termdevelopmentprojects,orevenenterprisetransformation.Themoreyouapplytheseprinciplesandpractices,themoreintuitivetheywillbecome.Themoreyoupractice,themoreyouwillrewireyourwayofthinking,andthis,inturn,willhelpnurtureacultureofinnovationandcreativity.

YoucanstarttoapplyBusinessDesignatanytimeandinmanyways.YoucanbeginbyimplementingthebasicsofBusinessDesigntodeepenyourstakeholderunderstanding,enhanceyourcustomerexperience,orrefreshandrestateyourstrategy.Ialwaysadviseorganizations“Startwhereyouare!”Themoreyouanchoryoureffortsinthe3GearsofBusinessDesignandapplythebasicprinciplesandpractices,themoreyouwillbuildacultureofdesign-

inspiredinnovationandagility.

Asapreludetothenextchapter,PreparingforYourQuest,thefollowinginterviewwithIsadoreSharp,founderofFourSeasons,bringstolifetheunderlyingprinciplesofBusinessDesign.Hisinspiringperspectiverevealshowvision,sharedpurposeandvalues,ongoingexplorationofnewwaystocreatedelightforguests,andbuildingonaclearstrategyallcontributetolong-termenterprisesuccess.Hisstoryunderscoresthehumannatureofbusinesssuccessandtheimportanceofempathy,open-mindedness,andcourageinbuildinganenduringcultureofrespect,collaboration,andinnovation.HisfullaccountofbuildingFourSeasonsiscapturedinhisbookFourSeasons:TheStoryofaBusinessPhilosophy.11

InterviewwithIsadoreSharpFounder,FourSeasonsHotelsandResorts

“AtFourSeasons,thefocushasalwaysbeenandisstillonthecustomer.Givepeoplewhattheyneedandexpect,andalwaysexceedthoseexpectations.

Foralotofthefirstthingsthatweputtogether,otherpeoplewhohadmoreexperiencewouldsay,“You’recrazy.That’sgoingtocostyoumoney.Peopledon’treallyneedit.”Therewerealotofnaysayers.Peopleneedtohavethecouragetocomeupwithsomethingthattheybelievemightwork.Becauseitalsomightnot.Andthathappenedalongtheway.Ittookmefiveyearstogetthefirstsmalllittlemotorhotelbuilt.Fiveyearsofnaysayers.Peoplelaughedmeoutoftheroomandwouldn’tgivemethetimeofday.Butitdidn’tdeterme.Icouldseehowitwouldwork,eventhoughtheywouldpointupallthereasonswhyitmightnot.

Beinginnovativecallsonyourabilitytobelieveinyourselfandinyourownopinions,inspiteofthefactthatnobodyelsemightagreewithyou.Wedecidedtopositionourselvesintheindustrybyestablishingouradvantagethroughservice.Tobethebest,wewouldhavetohaveaworkforcethatwasabletogivethecustomersthatspecialexperience,makingourservicedifferent.Thathadtobethroughtheeffortsofthepeoplewhometthecustomer,dealtwiththecustomer,andtalkedwiththem,whetheritwasthesalesperson,thedoorman,orthehousekeeper.

Whatmakesourservicespecialcomesfromaculture,andaculturecan’tbemandated.Ithastogrowfromwithin.Couldwecreateacompetent,qualifiedworkforcethatwouldbebetterthanourcompetitorsbasedonanethicalcredo?That,again,waslaughedat.Somesaid,“Thisisfoolishness.It’snotaphilosophyclasswe’rerunninghere.”Butwecreatedaworkforcebasedonanethicalcredo–theGoldenRule.Inpracticeoverthemany,manyyears,thiscredobecameapartofourculture.Todaywehaveover35,000employeeswhobelieveinthis.And,yes,itmakesusbetter.

MysonGregoncesaid“Themindislikeaparachute.Itonlyworkswhenit’sopen.”That’sexactlywhatit’sabout–keepinganopenmindandlistening

beforeyoudecidewhatcouldbethecase.Whenyoucreateanenvironmentthatallowspeopletoexpressthemselves,theycomeupwithideas.Weencouragepeopletoparticipateandspeakup.Ifyouthinkwe’redoingsomethingthat’snotright,pleasespeakup.Andifyouaskthequestion,“Whydowedothis?”andwedonothaveagoodanswer,maybeweshouldn’tbedoingit.

Ithinkthat’showpeoplegrowtogether–whenyouhavethatopennessanddon’tcriticizepeopleforhavingideasandtryingsomethingthatdoesn’twork.Yougivepeopletheencouragementtousetheircommonsenseandgivethemanopportunitytothinkabouttheirjobandhowtomakeitbetter.Youwillgetenormousamountsofinput.

Wehavemanypeoplewhocomeupwiththeideas.Itcouldbeanywhere.Andtheydo.Allwedoissay,“Beforeyoumoveonanyidea,pleasemakesurewejusttalkaboutit.Becausemaybewe’vealreadythoughtaboutthat,andmaybeit’sbeendiscardedormaybesomeoneelsehashadabetterwayofdealingwithit.”So,nobodyhastheautonomyjusttodowhattheythink;they’vegottheautonomytothinkandcomeupwithideas.Thisopennessandtransparencyisthewaythecompanygrew.

Peopleaskme“Howcanyourelyuponallthesepeopleandgivethemcompleteauthoritytodowhatisneededtosatisfythecustomer?”Isaythatwe’renotgivingthemablanksheet–we’regettingpeopletousetheircommonsenseandbereasonablewhenthey’rethinkingaboutsomething.Everybodywhoworksusuallyhasamuchgreaterresponsibilitythantheirjob,whatevertheirjobmightbe.Whenthey’redealingwiththeirfamily,thosearemajor,majordecisionsthattheyhavetodealwith.Theyhavetheabilitytodothat.Whywouldn’ttheyhavetheabilitytoknowhowtoreactwhenacustomercomesinandthey’reiratewithsomething?Mostpeoplehavetheabilitytousetheircommonsense.

Ifpeopleknowyoutrustthem,theywillgotogreatlengthsnottodisappointyou.Ifyousay,“It’suptoyou.Whatdoyouthinkyoushoulddo?”thenpeoplewill,bynature,risetothatchallenge.Thisiswhatyouarewritingabout.You’rewritingaboutempathy.You’rewritingaboutphilosophy.You’rewritingaboutchoicesandthesoftpartsofbusiness–aboutgettingpeopleto

thinkaboutamorewell-roundedwayofrunningabusiness.12”

2PREPARINGFORYOURQUESTDESIGNINGTHECONDITIONSFORSUCCESS

Thefirststepinembarkingonanimportantprojectistoappreciatetheenterprisecontextandensurethattherightpeoplearebroughtalongtheinnovationjourneywithathoughtfulgameplanandundertherightconditions.Doingsowillenableyoutocollectivelydesignaproductivepathforward.Hereisstoryaboutusingthe3GearsofBusinessDesignastheframeworkforstrategicplanning,demonstratingtheimportanceofengagingtherightindividualsandgivingfullownershiptothedevelopmentteamtomovetheirplanahead.13

TheNestléConfectioneryStory:SweetSuccessTheChallengeIn2008,theNestléConfectioneryteamfacedachallenge:Howcouldtheyreconcilesellingchocolatebarsinacompanythatiscommittedtohealthandwellness?Reconcilingabroadercorporateambitionwithadiverseportfolioisnotuncommoninlargecompanies.InthecaseofNestléConfectionery,thevice-presidentofMarketingatthetime,ElizabethFrank,sawthisstrategictensionasanopportunitytoinnovate.

Itwouldrequiretheengagementoftheteammemberswiththeinsight,imagination,andingenuitytoreframethechallengeandcreateacohesivevisionforthefuture.Aprojectroadmapwasdesignedtoenabletheteamtoreallychallengetheircurrentparadigmandembracetheircollectivedevotiontothehappinessthatgoodchocolatebringstoeverydaylife.Theirsharedambitionwastodeterminehowtheyweregoingtomakeconfectioneryas“goodforyou”aseveryotherproductproducedbyNestlé.

Elizabeth,withthesupportofSandraMartinez,thendivisionpresident,

assembledacross-disciplinaryteamfrommarketing,operations,productdevelopment,finance,andsalesforathree-daystrategicplanningsession,inwhichtheNestléleadershipteamengagedinafullrun-throughoftheBusinessDesignprocess.ThesessionwasdesignedtoexaminethecurrentstrategyforNestléConfectionerywithinthecontextofNestlé’soverarchingcorporateambition,reframeNestléConfectionery’slong-termbusinessstrategy,andaligntheteambehindanewvisiontoreignitegrowth.

TheBreakthroughs

Withadiversifiedteamanchoredinaclearprocess,thebreakthroughscameinseveralways.Theyallculminatedinastrategicreframebasedonanewvisionforthebusinessandaseriesofinitiativesfromproductstomarketingcampaigns.

ThefirstbreakthroughcameinGear1,whenwebroughtinconsumerstosharetheirstoriesaboutlookingaftertheirfamily’shealthandwellness.TheNestléteamwastouchedbytheinsightstheydiscoveredinthesestories.Thereweresmilesandeventearsduringtheseencounters.Thesurprise?Consumersbelievedwholeheartedlythat“chocolateisgoodfood”andpartoftheireverydaywellbeing.ThatalsoinspiredtheNestléteamtothinklongerterm,takeamorevisionarystance,andimplementapragmaticandstagedapproachtobuildingtheirbusinessinarelevantandmeaningfulmannerovertime.

ThenextroundofbreakthroughscameinGear2,whentheteamwasgiventhelicensetotransformthisrenewedinspirationintonewpossibilitiesandco-createthefuture.Drawingfromtheircollectiveinsight,intuition,imagination,andexpertise,theydesignedthreefreshanddistinctprototypes.Theyprototypedandrole-playedtheirpreliminaryideasforconsumers,togetearlyfeedback.Asanexample,foroneconcept,theypresentedhowtheirideafitintothelifeofateenager.Theyturnedoneroomintoathree-sceneset,wheredrawingsofhighschoollockerscoveredoneofthewallsforthefirstscene,aroughmock-upofaconveniencestoreoccupiedanotherareatoplayoutthenextscene,andakid’sbedroomwithacomputerconstructedoutofoldcardboardboxescompletedtheenvisionedexperience,allatamaterialscostofseventeendollars.Realteenagersappreciatedtheircreativityandopenness,andgavevaluablefeedbackonhowtomaketheNestléteam’sideaevenbetter.

InGear3,thestrategicbreakthroughnaturallysurfacedfromtheirdevelopmentwork.Theyrearticulatedtheirstrategyanddesignedafive-yearplantoactivatetheirnewvisionforthebusiness.Byreconnectingwithconsumersandexploringbiggerpropositionstoaddresswellnessinmore

holisticterms,theteamwasabletoreframetheirstrategy,whichenabledthemtorefocustheireffortsonastreamofbusinessinitiativesthatemergedfromtheirsharedvision.Passion,laughter,creativity,anddeterminationfilledthestudio;theteamcameawayready,willing.andabletomaketheirvisionareality.

“ThisapproachtoBusinessDesignhelpedbuildteamalignmentearlyonaroundacommonunderstandingoftheconsumerandasharedpathforward.Theoutputsofthisworkshopapproachwerecriticalandsalientandabsolutelydrovebusinessresults.”14

ELIZABETHFRANK,VICE-PRESIDENT,MARKETING(2008),NestléConfectionery(Canada)

TheOutcomeTheteamcollectivelyredefinedthemeaningofwellnesswithinthecontextofConfectionery.Theycreatedaclearandcohesivestrategyforenhancingtheconsumersenseofwellbeingandsupportingresponsibleandmeaningfulindulgence.Initiativesincludedusingall-naturalingredients,providingsmaller-sizedportions,offeringproductswithhealthbenefits(suchasdarkchocolate),andrecommittingtoSharedValue(aprogramforfairtradeandsustainableenvironmentalpractices).OtherimportantinitiativesincludedinvestmentinsociallyrelevantprogramsliketheSmartiesShowYourColorsinitiativeaimedatinspiringkidstosupportsocialcauses.

Theteamcapturedtheirstrategicvisioninacompellingpresentationtothetopdecision-makersintheNestléglobalheadquartersinVevey,Switzerland.Inspiredbytheteam’sstory,whichwoveinconsumerinsightsandideasfromtheirdevelopmentwork,NestléCanadaConfectioneryhelpedshapethenewglobalConfectionerystrategy.InCanada,thisnewstrategydrovedouble-digitgrowthforthreesuccessiveyears.AstheCanadianCEOsaidafterthefirstyear,“They’vebeenonfireeversince!Theresultsareoutstanding.”

Thisstoryunderscorestheimportanceofunderstandingthecurrentrealitiesofthebusiness,linkingyourquesttothecorporateambition,andengagingateamthatwouldfeelownershipoftheoutcomes.Withtherightprocessroadmapanddesign-inspiredtools,theNestléConfectioneryteamwasabletounlocktheirinnatecreativityandpassionfordrivingremarkablebusinessresultsinapurposefulway.

YourGoalinPreparingforYourQuestDesignaplanthatwilloptimizeyourchancesofsuccess.Whetheryouraimistoboostalineofbusinessortransformanentireenterprise,up-frontplanningisoftenthemostcriticaldeterminantofyoursuccess.

Thebalanceofthischapterhighlightskeyactivities,outcomes,anddevelopmentprinciples;providestipsontheroleofdataanalysisandvalidation;examinesthemindsets,methods,andthinkingmodesthataremostcritical;andfinisheswithaninspiredinterviewthatbringsimportantprinciplestolife.RelatedtoolsareincludedinPart2:ToolKit.

Activities&OutcomesFigure5showssomeoftheactivitiesyouwillundertakeinpreparingforyourquestandsomeofthemostvaluableoutcomesthatwillgetyouofftoastrongstart:

ProjectBrief:Aclearstatementofyourprojectambitionsinrelationtoenterprisegoals,withahigh-levelcaseforfuturevalue.

ProjectBlueprint:Adetailedplanformethodologies,keydeliverables,timing,andresourcesrequired.Itwilldemonstraterigor,buildconfidence,andgetyoutoyourdesiredoutcomes.

Fig.5ActivitiesandOutcomesinPreparingforYourQuest

TeamDesignandCharter:Aplanforwhowillbeengaged,keyrolesandresponsibilities,andthecriticalconditionsforsuccess.

EnterpriseReadiness:Ameasuredassessmentofhowpreparedyourorganizationistodelivernewsolutions,especiallyinthecaseofanenterprisetransformation.

EngagementandCommunicationPlan:Aplanforhowyouwillengageandcommunicatewithkeystakeholders(internalandexternal)throughouttheproject.

VisionofSuccess:Aclearpictureofhowthiseffortwillimpactthebusiness,theendcustomer,andthepeopleoftheenterprise.

Divergentactivitiesincludeexploringthemarket,usingmethodsthatcanhelpunlockfreshthinking,consideringpeoplewhomightcontribute,andcreatingasharedvisionforsuccess.Convergentactivitiesentailmakingdecisionsonwhatyouaresettingouttodo,howyouwillachievethat,andwhowillbeinvolvedalongtheway.

KeyPrinciples:CreatetheConditionsforSuccessTherearemanysuccessesthatpointtotheimportanceofgettingoffontherightfoot.Whenyouareonanimportantmission,youdon’twanttobederailedbecauseyoudidn’tcreatetheconditionsforsuccessfromthestart.Hereareafewprinciplestoconsider:

Linkyourquesttotheenterprisestrategy.Doingsowillestablishrelevanceforyourquest.Therearecountlessexamplesofinnovationteamsgoingoffonatangent.Someonemighthaveacleverideaonlytofindthatitisn’talignedwiththebiggerenterprisepicture.InthecaseofNestléConfectionery,chocolatewasanimportantcomponentofthecorporateportfolioduringthisproject.Atthesametime,itwasclearthattherewastensionbetweenchocolateandwellness.Beingexplicitabouthowyourintentionsfitwithintheenterprisevisionupfrontwilldemonstratestrategicrelevanceandalignyourquestwiththegreatergoalofbuildingthebusiness.Youreffortswillmorelikelybesupportedbyseniordecision-makersandtheorganizationatlarge.

Demonstratebusinessvalue.Innovationinitiativesthatjustsetouttoexploreareoftenthefirsttogetshutdownwhenthereisabudgetcut.It’shelpfultomakeabusinesscaseforinvestingtimeandmoneyinyourquest.Assessingthestateofyourbusinesscanbuildconfidenceinyourcurrentpathandelevatetheurgencyofexploringnewpaths.Futurebusinessvaluecanbeframedintwoways.First,theremightbeahugeopportunitytotapintoanewtargetorcategorythatwouldboostthebusinessinaseismicway.Second,itmightbethatyouareheadedforacrisisifyoudon’taddressitnow,aswasthesentimentatthetimeoftheNestléConfectioneryproject.Inbothscenarios,teamsshouldmakeabusinesscaseforinvestinginaquestthatwoulddrivefuturebusinesssuccess.

Thereareseveralactivitiesinframingthecontextthatwillhelpyoubetteridentifymarketopportunities.Itisalsovaluabletosolicittheperspectivesofseniorexecutivestocaptureacomprehensive,high-levelpicture.Attheonsetofyourquest,importanthigh-levelquestionstoaskyourselvesmightinclude:

Howarewefaringinthemarketandintheeyesofourmostimportantstakeholders?

Howareourresultstrending?

What’skeepingusupatnightaswelooktothefuture?

Inframingyouropportunity,it’shelpfultoputsomenumbersarounditandsetyoursightshighonthepotentialgainsforyourbusiness.Withaclearpictureofthecurrentstateandyourbusinessproposition,youwillbeabletoarticulateaclearlaunchpointfordevelopment.Thisistimetocrystallizeyourambitionsinaclearandcompellingprojectbrief.

Secureexecutiveorbusiness-leadersupport.Incorporatingtheinsightsandambitionsofaseniorleaderwillnotonlyhelpframeyourquest,itwillalsoheightenthevisibilityofandsupportforit.Ifyouarenotontheexecutiveteam,you’llwanttohavesomeoneinaleadershippositiontoactasyourexecutiveadvocateandprovideaircoverwhenyouneedit.Theirendorsementgiveslicensetoexpandthinkingbeyondtoday’sbusinessandhelpspositioneffortsinthecontextofotherenterpriseinitiatives.Theywillbeaninvaluablesoundingboardasyourdevelopmentsunfold.Thebiggertheenterprise,themorevaluableitistosecuresupportattheoutset,ratherthanmidstreaminprojectdevelopment.

Createateamwithadiversityofskills,perspectives,andcognitivestyles.Adiverseteamwillbringrichnesstotheprocessandopenyourenterprisetopossibilitiesandsolutionsthatmaybefarfromobvious.Theintentistoharnessthemostvaluableperspectives,insights,andknow-howandtobuildcommitmenttodeliveringontheoutcomes.Itiseasytostartwiththeintactteam,whichisusedtoworkingtogether.That’sagoodstartingpoint.ConsiderationsforsettingupadiverseteamareprovidedintheToolKitinparttwoofthisbookandincludediversityinfunctionalexpertise,skills,geography,andgenerationalandculturalperspectives.

“Whoyouselecttobeontheteambuildsalignmentveryearlyonaroundacommonunderstandingandasharedplanforward.WehadthepeoplethatIknewwouldseetheroadblocksintheroomtoarticulatewhethertheythoughtwewerecompetitivelydifferentiatedornot.Wecreatedthissafeplacetobuildthatalignment.”ELIZABETHFRANK

Thefreshestandmostsurprisingsolutionsareofteninspiredandcreatedthroughablendingofperspectives.Whileyouwanttorightsizeyourteam,youwillalsowanttoensureyouhaveenoughfreshbloodintheinnovationprocess.

Designarigorousprocessandclearprojectblueprint.Awellthought-throughroadmapwillnotonlyguideyourdevelopmentefforts;itwillalsobuildconfidence.Theplanshouldincludeacoreframework,keymethods,timing,andoutcomesateachstage,allcapturedinaclearlyarticulatedandvisualizedprojectblueprint.

Anchoringyourpursuitsinthe3Gearsandtrustingtheprocessthatyouhavedesignedwillguideyourdevelopmentefforts.WhilecertaincoreprinciplesandframeworksapplytoeveryBusinessDesigninitiative,notwoprojectsarethesameintermsofhowtheyareplayedout.Thatmeansplottingoutnotonlythebroaderstepsandactivities,butalsothedetailsofeachstepofresearchanddevelopment,andwhowilldowhat,andwhen.Thisearlyphaseplanningwillensurethatresourcesaredeployedeffectivelyandefficiently,andkeeptheteamontrackasitexploresnewandunknownterritories.

Aclearlydefinedroadmapwillgiveeveryoneconfidencethatnomatterhowcomplextheproject,thereisaprocessthatwillguidemultipleplayerstoaunifiedandproductiveoutcome.Whileyouneverknowattheoutsetexactly

wherethedevelopmentprocesswilltakeyou,youwilllikelybepleasantlysurprisedanddelightedbytheoutcomes!

Onboardandsolidifytheteamwithateamcharter.Teambuy-intotheroadmapiscritical.Everyonehastocommittotheprocessandrespectiveroles,andbeopentotheoutcomesateverystage.Whileeveryonewillhaveimportantanduniqueroles,therearesomethingsforwhicheveryonemustbeonthesamepage.Acharterwillhelpyougetpastthefrictionandenableyoutocapitalizeonthefusion.Itwillalsoensurethatyoudeliverqualityinanefficientmanner.Herearesometipstoconsiderasyouformulateyourcharter:

Establishacommonpurposeandmandate.Thismeanscompletealignmentonasharedambitionfortheproject.

Anchortheteaminsharedvalues,codesofconduct,andcommitment.Whentheprojectgetsrocky,thecommonvaluesandcommitmentthatcomesfromateambuiltonopenness,respect,andcollaborationforthegreatergoodwillprevail.

Identifyroles.Everyonewillbringuniquestrengthstotheproject.Aligningroleswithindividualexpertisewillgiveeveryoneanimportantplaceintheprocess.

Beexplicitaboutdeliverablesandaccountability.Indesigningtheprocess,youwillarticulatetheoutcomesanddeliverablesinconcretetermsatkeypointsforboththeteamandforindividuals.Youaremutuallydependentinyourpursuits.

Fosterasenseofteamspirit.Becauseyou’regoingtoworkhardandwilllikelybestretchedbeyondyourcomfortzone,supportforeachotherandasenseofteamspiritwillgoalongway.Itcanmeanthedifferencebetweenanenergizingandrewardingproject,andonethatisjusthardworkandrecurringtension.

Envisionsuccessfromthestart.Imagineyour“destination”byasking,Whatdoessuccesslooklike?Thismighttaketheformofacollageofimages,afuture-casenarrativeofyourjourneyandoutcome,oracollectionofdrawingsthatcaptureyourdreamsfortheprojectandtheenterprise.Itisoftenmostmeaningfulifyourvisioncapturesemotions–howyouwanteveryonetofeelattheendoftheprojectorprojectphase.Whileyoudon’tknowwhatthesolutionwilllooklikeyet,ageneralpictureofsuccessoftenhelpspeopleexpressandvisualizetheiraspirationsandpullstheteamforward.

Planforappropriateengagementandcommunications.Havingaclearnarrativeanddesigninganeffectivecommunicationplanfromthestartisinvaluable,bothfortheteamandanyoneelsewhohasavestedinterestinwhatyou’reupto.Effectivelyengagingandcommunicatingwithothersaboutyourdiscoveriesandprogressbuildsstakeholderandenterpriseconfidenceandmomentum.

Clear,continuous,andtransparentcommunicationwithintheteamwillprovideagoodsenseofwhereyouareatalltimes.Acohesiveteamcanraiseredflagsandhelpeachother,orcoursecorrectifthingsarenotgoingasanticipated.Itisalsohelpfultoestablishameansofremoteorvirtualcommunicationsoeveryteammemberwillalwaysbeabletologinandknowwherethingsstand.

Keepingbothyourexecutivesponsorandteammembers’managementapprisedofyourplanshelpstoreinforcethevalueofeveryteammember’scontributionandinspireconfidenceinyourprogress.Acknowledgingparticipationandsecuringpermissiontotapintoexpandedresourcesiscriticalinanenvironmentwherepeopleneedtoaccountfortheirtimeandpriorities.

Beyondtheteam,anticipatewhoelseshouldbekeptabreastofyourdevelopments–whethertheorganizationatlargeorimportantexternalstakeholders.Bringingothersalong,forupdatesorengagementinthedevelopmentprocess,demonstrateshowyouarecreatingnewvaluealongthewayintermsofnewinsightsornewideas.

Bepreparedtopivot.Whileitisimportanttohaveaclearplan,itisequallyimportanttorevisityourplanandassumptionsatkeypoints.Bereadytoadapttonewinformationandevolveyourgameplantomaximizeopportunityandoptimizeyourpath.Adaptationmightbespurredbyaproblemreframe,anewentrantinthemarket,oranewdevelopmentthatwarrantstimeforapauseandadjustmenttothegameplan.

Statetheconditionsforsuccess.Inasense,thisisyour“contract”withboththeteamandtheenterprise.It’sanexplicitwayofsaying,Thesearetheconditionsunderwhichwewillbemostsuccessful.Whiletheseconditionsareoftennuancedanduniquetoeveryorganization,youmightconsiderbeingexplicitabouthavingthelicensetoexploreoutsidethecurrentbusinessmodel,thetimetodothejobright,theresourcestodevelopthemostrobustsolutions,andtheengagementandsupportofkeypeople.

Alloftheseprinciplesandconsiderationsrequireaneyeonboththebigpictureandthedetailedtasksofyourquest,foresightonhowyourquestmightplayout,

anddisciplinedplanningoneverylevel:business,people,andtactics.Theseprincipleswillincreasetheoddsthatyoureffortsareproductiveandeventuallypayoff.

BuildingaBusinessCase:DataAnalysis&ValidationAsineverygearofBusinessDesign,itisimportanttogatherdatatobuildacompellingbusinesscaseandtoleveragedataandusefulmeasurementtoolswhereappropriate.

Fromabusinessstandpoint,youcanuseyourmostsalientdataonthemarketandtheenterprisebusinessinframingyourprojectbrief.Thesearethecriticalfactsthathelpyouestablishabusinesscaseforyourquest.

Atanenterpriselevel,itcanbevaluabletogetatruepictureofyourenterprisereadiness.Inacasewhere“innovation”isnotfullybakedintoyourenterprisepractices,systems,structures,andculture,itisoftenhelpfultoappreciatethewaypeopleworktodeliverandcapturevalue.Eventhougheveryonelovestheideaofinnovation,thereareingrainedpractices,structures,andsystemsthathaveshapedtheculture;thesecanoftensetupbarrierstostep-changeprogress.WhilemostCEOsclaiminnovationasatoppriority,manyarelesscertainthattheirorganizationisreadytodelivertrulybreakthroughideas.

Thenotionofreadinessiscriticaltonavigatingsuccess.Capturingthetruepictureofenterprisereadinessrevealspotentialculturalandsystemicblocks.Thiskindofprofilingcandiagnosethecurrentinnovationreadinessoftheenterprise,highlightingthestructural,systemicorculturalfactorsthatcaneitheraccelerateorimpedeinnovation.Forexample,weuseourVukaInnovationReadinessSurvey15tomeasurehowclearandeffectiveacurrentstrategyisperceivedtobe,towhatextentdesign-inspiredprinciplesandpracticesarecurrentlybeingapplied,howstructuresandsystemssupportorconstraininnovation,andwhatculturalfactorsinfluencetheenterprisestateofreadinesstodeliverandsustainreadiness.Resultsofanenterprise-widesurveywillinformyouonhowtobuildalignmentonpurposeandstrategy,whatmindsetsandcapabilitiesneededtobefortified,whatsystemsandstructuresmightneedtoberedesigned,andwhatculturalfactorsneedtobeaddressed.

ImportantMindsets,Methods,&ThinkingModes

MindsetMatters:Nomatterhowgreatyourchallenge,themostimportantmindsetattheonsetisabigdoseofpositivity,alongwithacollectivecommitmenttothegameplan.Whilenaysayerswillhavetheiropportunitytochallengethequestupfrontandpokeholesalongtheway,itisimportanttokeepanopenmindtonewpossibilitiesfromthestart.Ittakesalotofempathytounderstandwhatmotivatesothersintheenterpriseandcouragetocreateaburningplatformandleadthecharge.

MostCriticalMethods:Withoutadoubt,thespiritofcollaborationissetfromthestart.It’sdefinedbyhowyoudesignandformateamandengagevariousstakeholders.Innovationinvolvesalotofpeopleworkingtogethertowardacommonambition.Thatalsorequiressomeup-frontneed-findingfromimportantinternalstakeholders.

RegulatingThinkingModes:Preparingforanimportantqueststartswithunderstandingthecurrentstateandwhat’satstakeforwhom.Ifyourunoffwithaninsightorideabeforetakingstockofthebusiness,enterpriseambitions,andinternalstakeholders,youwilllikelyhitalotofbarriersalongtheway.Yourplanrequiresaholisticunderstandingofthebusinessandpeopleacrosstheenterprise.Thatwillsetyouuptomakedecisionsandswingintoaction.

TheimportanceofengagingothersinyourquestisfurtherbroughttolifeinthefollowinginterviewwithCathyCummingsoftheCanadianBarAssociation,who,incollaborationwithVukaInnovationandHappico,ledtheorganizationthroughajourneytodefinethepurposeandservicepropositionofthisimportantprofessionalassociation.16Thisquestwasundertakeninthecontextofthetechnologychangesandgenerationaltransitioningthataredisruptingthewaysinwhichlawyerscreateandcapturevalue.Engagingthousandsoflawyersinthisstrategicrethinkprojectbroughtthecommunityalongeverystepofthewayandledtoadeepercollectiveunderstandingofmemberneeds,newwaystodelivervalue,andaclearstrategyforthefuture.

InterviewwithCathyCummingsProjectDirector,CanadianBarAssociationReThinkProject

“ThechallengegoinginfortheCanadianBarAssociation(CBA)wasourcomplicatedstructure.Ineedtohaveinputtoanydecision-making–includingthestrategicdirectionforthewholeorganization–fromits37,000members,1,500engagedvolunteers,200staff,andthegoverningboardofdirectors.Therearefifteenofficesintotal–oneineveryprovinceandterritory,thenationalofficeinOttawa,andtheCanadianCorporateCounselAssociationofficeinToronto.

Howdoyoucomeupwithastrategicdirectionthatisgoingtoworkforeverybodybutalsomakethemfeelliketheyareanimportantpartoftheprocess?That,Ithink,wasourbiggestchallengegoingin,andIthinkthisprocesshelpssolvethatproblembyengagingsomanyofthedifferentgroupsfromtheoutset.

Weengagedeveryonesothatintheendeverybody’svoicewasheard.Everybody,fromtheboardtotheseniorstaff,camewiththeirownperspectiveandviewpointonwhatissuesneededtobeaddressed.Toframeourchallenge,wesentquestionsouttotheoffices,whoprovidedalotofinformation.Wethengottheboardtogethertomakesenseofitsothatthereweresomecommon,concretestartingpoints.Byworkingonthefoundationtogether,wewereabletobuildalignmentandgeteverybodyonthesamepage.

Hearingthevoicesofourmemberswascritical.Animportantoutcomeoftheworkwedidwasunderstandingourmostimportantstakeholder–themember.Today,wheneverwetalkabouteitherinnovatingordiscontinuinganyproductsandservices,westartwiththeneedsofourmembers.Therearecertainlypeoplewithintheorganizationwhocontinuallybringthoseuniversalneedstotheforefront.Theseventy-sevenwhowereinterviewedwereafantasticallydiversegroup,fromyoungwomentomiddle-agedmanagingpartners,fromtheterritoriestoToronto,andfromin-housetopublic-sectorandprivatepractitioners.Wewerereallycuttingacrosseveryaspectofourmembership,andIfeelquitestronglythatthevalidityofthatinformationshouldbeaguidingforcefortheCBAgoingforward.

Thequalitativeresearchwashugelyimportant.Itgivesusconfidenceinthevalidityoftheinformationandinspiresusbecauseitisexpressedinreal-worldphrasesandbroughttolifeinpersonasthatresonate.Thein-personmeetingswedidreallyresonatedwithpeople,fromoldermemberswithwhomourstatedneedsandstrategiesdidn’tresonate,toayoungwomanwhourgedustoconsidertheneedsofthefutureandofafarmorediversecohort.Welearnedthattherearealotofdifferentpeopletobeheardandthatthekeyisnottoleaveanyonebehind.

Onemomentinparticularstandsoutinthisregard.Wewereluckytoconductasessionwithtwelveyounglawyerswhowereneitherengagedvolunteersnorboardmembers,norinanywayawareoftheprojectorwhereweweregoingwithit.Weinvitedthemtoparticipateinexploringwhatthefuturemightbe–theybroughtalotofenergytothetask!Theyweresocreativeandinnovative,andtherewerealotofcommonthemesintheforty-eightideasthatcameoutofit.Wethensynthesizedthosedowntonineconcepts,tookthemacrossthecountryintoaseriesofroundtableswhereeveryonehadachancetorespondtothemandofferideasonhowtomakethemevenbetter.

Inadditiontothecross-countryroundtables,weputthosesamenineconceptsuponavirtualplatform.Alongwiththein-personmeetings,buildingavirtualcommunitytoextendengagementhadsomeofthemostpowerfulresults.Westartedwithapanelof350,butweultimatelyhadthousandsofpeopleengagedintheplatform.Weknowthatthosewereuniquevisitorsandnotjustthesamepeoplegoingonandonagain.Thevirtualcommunityhappenedinalimitedtimeframe,andpeoplewerefantasticallyengagedinprovidingthefeedbackthatwouldmakethoseconceptsbetter.Wehadpeoplefromeveryprovinceandterritory.Reachingouttomemberswhowouldn’tbeabletocometoaphysicalmeetinginanurbancenterwashugelypowerful.Itenabledthosethatcaredtobepartofthediscussion.Andhighlevelsofengagementdidnotgounnoticedbysomeoftheskeptics,whichbuiltmoresupportfortheplatform.

Thentherewastheboard.Thisprocessmadethemasksomeverydifficultandfundamentalquestions,themostimportantofwhichwas,Whowerewegoingtoserve,andwhotheywerenotgoingtoserve?Wesetuptheroomthatdaywithhighlyvisualremindersofwhatwehadgonethroughandwhattheresearchhadshownus,whothepersonaswere,whattheuniversalneeds–thatallfedintoagreatstrategicoutcomeforthatday.

Therewasalotofagreementwhenthesmallgroupsgotbacktogetherto

discussourstrategicchoicestobemade.Forexample,weagreedtofocusonyounglawyersandwhatweshouldbedoinginthatspace.WealsoagreedthatourmandatewastoservepeoplewithinCanada,andthatthejudgeswereanimportantpartofourcommunity.TherewerealotofthingsthatwereIthinkcrystalcleartoeverybody.Idon’tthinktherewasalotofdebateaboutwhatstrategicdirectionweshouldbetakingbecauseit’sthepaththatledusthere.

Asforthatstrategy,fromastaffperspective,everyonerefersbacktoitallthetime.Weuseitineverythingthatwedo.Weuseitforallofourreportingacrossthewholeorganizationbothonastafflevelandonagovernancelevel.So,forexample,anytimewedoaboardreportorwhenIwritemyexecutivedirector’sreport,IreiteratethefivestrategicpillarsandItalkabouthowwehavemovedinthosetermsandhowwehaveintegratedthatstrategythroughthewholeorganization.Wehavealsoenjoyedamuchhighernumberofmembersapplyingthestrategytoday-to-daydecisions.

IseetheprocessasbeingadeparturefromwhatIwouldcallatraditionalstrategicplanningsession.Incorporatingdesignthinkingwithstrategyandusingsomedifferentmethodologicalapproachesmadeforamuchmore

powerfuluniversalstrategyacrosstheCBA.17”

LISTOFTOOLS&TIPSThefollowingtoolsandtipsareprovidedinparttwotohelpexplore,assess,andfocusyourthinking.

FramingYourAmbition:Linkingthepasttothefuture

EnterpriseReadiness:Assessingyourenterprisecapacitytoinnovate

TeamDesign:Identifyingkeycontributors

TeamProfiling:Aligningthinkingpreferences

TeamMapping:Identifyingtalents,roles,&passions

TeamBuilding:Engaginginfunwaystowarmuptowork

Facilitation:Gettingthemostoutofteamtime

TeamCharters:Creatingasharedvisionfortheteam

ProjectBrief:Framingyourquest

ProjectBlueprint:Mappingthedevelopmentprocess

Communication&EngagementPlan:Designingforinternal&externalstakeholderengagement

3CONTEXTUALIZINGYOURCHALLENGETAKINGSTOCKOFTHEBIGPICTURE

Beforejumpingrightintothe3Gears,itisimportanttotakestockofthemarketcontextandyourcurrententerpriseactivities.Thiswillhelpframemarket-basedopportunities,assessyourcurrentdistinctivenessandstrengths,andinformyourneed-findingresearchplanforGear1.Hereisastoryaboutanorganizationthatwaswellpreparedfortheirquest,usingalltheprinciplesinchapter2.Astheysetoutonajourneyofstrategictransformation,theirworkinthisphasewascriticaltoopeningthelensonmarkettrendsanddynamicsandaligningtheteamonenterpriseopportunitiesforthefuture.18

AccreditationCanada:TransformingHealthcarethroughStandardsTheChallengeAccreditationCanada(AC)hasalonghistorythatbeganwithensuringthathospitalsmethighstandardsinpracticeascertifiedthroughanaccreditationprocess.Overtheyears,AChadextendedthispracticetovirtuallyeverypatienttouchpointinthehealthcaresystemandhaddevelopedacodifiedprocessforstandardsdevelopment,assessment,andaccreditation.TheirstrongholdintheCanadianmarketandmorerecentgrowthininternationalmarketsthroughAccreditationCanadaInternational(ACI)positionedthemasacriticallynchpininhealthcaresystems.However,thehealthcarelandscapehasbeendramaticallyshiftinginrecentyears,withincreasedfocusonpatientoutcomes,healthcare-systemproductivity,integrationofpatienttouchpointsacrossthesystem,andtheapplicationofemergingtechnologysolutions.ThiscalledforaradicalstrategictransformationthatwouldmaximizethevalueACcouldbringtohealthcaresystemsinthefuture.In2016,LesleeThompsonwashiredasthe

CEOofAccreditationCanadaandInternationaltoleadthatvitaltransformation.Suchanenterprise-widetransformationrequiresbroadengagementand

enterprisereadinesstoharnessthewisdomandingenuityoftheorganization.Inpreparingfortheirquest,theyfollowedalltheprinciplesoutlinedinchapter2.Totacklethechallenge,theyestablishedtheFUELdevelopmentteamoftwenty-eightexecutivesandemergingleaders,alongwithaplantoengagetheboardandthewholeorganizationateverystepofdevelopment.

Acomprehensivestrategydevelopmentroadmapwasdesigned.Avisionofsuccessandconditionsforsuccessweremadeexplicit.Anall-employeeandboardinnovationreadinesssurveywasruntodiagnosetheircurrentstateofreadiness–revealingstrengthstoleverageandopportunitiestobuildamoreinnovative,future-forwardculture.Thisthoughtfulup-frontplanningsetthemupforaproductivejourneytodefineafuture-focusedstrategythatwouldnotjustensuretheenterprise’ssurvivalbutalsofuelitsgrowthinastep-changeway.

ThefirststepfortheFUELteamwastoestablishacomprehensivepictureofthemarketandtakestockoftheexistingcapabilitiesoftheenterprise.ThatbeganwithaworksessionusingBusinessDesigntoolstocapturetheteam’sinsightsoncriticaltrends,thelandscapeofplayers,thestakeholderecosystem,andtheenterprise’scurrentstrategyandoperatingsystems.Thatwasfollowedbyfact-findingresearchandsynthesistovalidatetheintuitiveworkfromtheworksession.

TheBreakthrough

Thisworkledtosome“Aha!”momentsthatreframedthemarket-basedchallengefortheenterpriseandcreatedalignmentinthechallengesandopportunitiesahead.Thisreframingbreakthroughcameinseveralways.

Thefirstbreakthroughcameintheappreciationofhowemergingtrendswouldimpacttheirtransformationinseismicways.Forexample,theincreasedfocusonpatientengagementandoutcomesclearlypointedtoputtingthepatientfront-and-centerandlinkingstandardstooutcomes.Thecomplexities,fragmentation,andlackofintegrationacrossthesystemweredrivinguphealthcarecostsandimpedingoutcomes;thatcalledforahealth-systemsapproachtostandardsdevelopment.Theroleofemergingtechnologieswasagamechangerinthemaking,withdigitalcommunications,record-sharing,anddashboardsshiftingthewaypeopleinteractandmakedecisions.Thatmeantstandardsdevelopmentwouldhavetobeamoredynamicandadaptivepractice.

Thesecondbreakthroughcameinzoomingouttoseethefulllandscapeof

players.Giventhedireneedforhealthcareimprovement,everyonewasjumpingintothehealth-standardsgame,notjustthosewhoweretraditionallyinthehealth-standardsaccreditationbusiness,butalsogovernments,advocacygroups,governmentagencies,andothercommercial-interestgroups,andparticularlytechnology-solutionprovidersthatweredisruptingthewayhealthcarequalityismanaged.ThatclearlycalledforapreciseanddistinctstrategyforAC/ACItowinwithinanever-changinglandscapeofplayers.

Thethirdbreakthroughcameinmappingthebroadergroupofstakeholders.Whilethecentral“client”hadhistoricallybeentheaccreditationcoordinatorandtheirinstitutionaldecision-makers,thereweremanyotherstakeholderswhocouldaddtremendousvaluetothedevelopmentandassessmentprocess:health-systemsleaders,patients,policymakers,front-lineproviders,surveyors,quality-managementproviders,andindustrypartners.ThecriticalrolesandinterrelationshipofallthesestakeholdersinformedourextensiveresearchinGear1,whichaimedtounderstandtheneedsofallthesestakeholdersacrossmanyjurisdictionsandcountries.Everyoneofthemwasintegraltofuturesuccessintermsofbothpatientoutcomesandtheenterprise.

ThefourthbreakthroughcameinmappingthecurrentactivitiesandcapabilitiesoftheACandACIorganizations.Thisrevealedthateventhoughtheorganizationshadslightlydifferentapproachestothemarket,theyweremutuallydependent.AChadmasteredthedevelopmentofstandardsforsites,andACIhadpioneeredahealth-systemsapproach.Thatledtoarestructuringoftheorganizationasahealthstandardsorganization(asyouwillreadinchapter6),withstandardsdevelopment,assessment,andaccreditationservicesleveragingthecombinedknowledge,processes,andtechnologytoolsofthesetwostreamsofbusiness.

Last,theteamgeneratedalonglistofconsiderationsforfuturestrategicchoicestomaketheiroptionsexplicit.Withanappreciationforthecomplexitiesofthecontextandthemultitudeofplayers,itwasclearthattheywouldneedtomakesomeprecisechoicesinGear3tofocustheireffortsonwinninginthefuture.

TheOutcome

Thisbroadsweepofthemarketdynamicsandrigorousanalysisoftheemergingforces,players,andimportantstakeholdersbroughtthemarket-basedopportunityintofocus.Afterthisphase,therewerenoblindspots.Everyonewasfullyawareofthespaceinwhichtheenterprisewasoperating:theFUELteam,

theboard,andallemployees.Thechallengeaheadwasbig,buttheopportunitytoimpactpatients’livesinameaningfulwaywasverymotivatingtoeveryoneontheextendedteam.

ThisphaseofworkhelpedframeuptheworkforGears1and2,andeventuallyinformedthestrategicchoicesinGear3inanimportantway,astoldthroughthestoryaboutdesigningyourstrategyinchapter6.

Thisstoryunderscorestheimportanceofzoomingoutandappreciatingthecontextinwhichyouareoperatingattheoutsetofyourquest.Thatisthetimetounderstandhowtoseizetrends,considerwhomightbecompetitorsorpartnersinthefuture,identifywhoyouneedtodeeplyunderstand,andappreciatethatyouhavesomedistinctcapabilitiestoleverageasyouevolvetoyourdesiredfuturestate.

“Wehavetobenimble.Weseehowquicklythingsarechanging.”FUELTEAMMEMBER

BusinessDesigntoolshelpedtoquicklyandefficientlydownloadthetacitknowledgeofthismulti-functionalteaminasingledaythroughaprocessofinclusivediscovery.Thatpicturewassolidifiedthroughfactfindingandsynthesistobringfocustowhatwasonthehorizonandframehowtheenterprisemightdefineitsfutureroleinthemarket.Thatwassharedwiththeboardandemployeestogiveaclearlineofsighttothequestandaligneveryoneonbothwhattheywereupagainstandthestrongbaseofcapabilitiestheycouldleverageintheirtransformation.

YourGoalinContextualizingYourChallengeTofullygraspthecontextinwhichyouareoperatingandappreciateyouringoingposition.Doingsowilleliminateblindspots,aswellashelpyouframeupthemarket-basedopportunityandplanyourresearchforGear1.

Thebalanceofthischapterhighlightskeyactivities,outcomes,anddevelopmentprinciples;providestipsontheroleofdataanalysisandvalidation;examinesthemindsets,methods,andthinkingmodesthataremostcritical;andfinisheswithaninspiredinterviewthatbringsimportantprinciplestolife.Relatedtoolsareincludedinparttwo:ToolKit.

Fig.6ActivitiesandOutcomesinContextualizingYourChallenge

Activities&OutcomesFigure6showssomeoftheactivitiesyouwillundertakeandsomeofthemostvaluableoutcomesthatwillcontextualizeandframeyourquest:

KeyTrends:Synthesisofthetrendsthataremostlikelytooccurandmostlikelytoimpactyoursuccess,toallowyoutodesignforthefuture.

LandscapeofPlayers:Acomprehensivepictureofwhoelseisdoingbusinessinthisspace,toidentifyhowtheycouldeitherbeacompetitororpartnerinthefuture.

StakeholderMapping:Acomprehensivemappingofallthepeoplewhomatterinyoursuccessandtheirrelationshipstooneanother,soyoucandesignwiththeentireecosysteminmind.

CurrentEnterprise:Avisualsynthesisofyourcurrentsystemofinterrelatedactivitiesandcapabilities,whichwillhelpyoubothassessyourcurrentdistinctivenessandappreciatewhatyoumightuniquelyleveragegoingforward.

FutureScenarios:Asnapshotofwhatthefuturemightlooklike,tocontextualizewhatuniqueandmeaningfulroleyoumightplayincreatingfuturevalue.

ChoiceConsiderations:Acomprehensivelistofstrategicconsiderations,

toequipyoutoexplicitlydecidewhattodoandwhatnottodowhenyoudesignyourstrategyinGear3.

Divergentactivitiesincludecapturingallofthetacitknowledgeoftheteamtogenerateabroadlistofconsiderations.Thiswillenableyoutoquicklygetacomprehensivepictureofforces,players,stakeholders,andstrategicconsiderations.Convergentactivitiesentaildecidingwhatandwhomattersmost–toyourquestandtheworkyouwilldoinsubsequentphases.

KeyPrinciples:ContextIsEverythingBroadeningyourawarenessofthecontextandeliminatingblindspotswillframeandprioritizeimportantconsiderations.Herearesomethingstokeepinmind:

Thinkbroadlyabouttrendsthatwillmaximizeyouropportunity.Byprioritizinganddimensionalizingcriticaltrends,youwillbeabletoalignyourquestwiththosethatareimportanttoyourfuture.

Whileyoushouldstartwithalonglist,youshoulddecidewhichtrendsaremostlikelytooccurandimpactyoursuccess.AsnotedinthemethodofSTEEPanalysisintheToolssection,it’simportanttothinkbroadlyaboutthesocial,technological,economical,environmental,andpoliticaltrends.Ascertainingthesehigh-impacttrendsandputtingnumbersagainstthemwillhelpyoubegintoframeyourbusinesscase.ForAC/ACI,thefocusonsystemsintegration,patientengagement,andhealthoutcomeswoulddrivetheenterprise’spursuits.

Consideralltheplayersthatarebroadlydoingbusinessinthisspace.Itisnotuncommontofocusonyourbiggest,mostdirectcompetitors,alongwithyourexistingpartners.It’simportanttoask:Whoelseisinterestedin“doingbusiness”inthisspace?Thatquestioncanleadtoalonglistofexistingandemergingplayers,someofwhomyoumightnotbepayingenoughattentionto,includingorganizationsexpandingintoyourspaceoremergingplayersthataredisruptingthesysteminwhichyouoperate,suchastechnology-solutionproviders.InthecaseofAC/ACI,therewerealotofplayersinthisspacetotakeintoconsideration:otheraccreditationplayers,governments,andtechnologystart-ups.Inhealthcare,therearealotofplayersthatseeahugeopportunitytocreatevalueforthesystem,thepeopleinit,andthemselves.Growingsegmentsattractmanyplayers.Youmightalsofindthatoneofyourown“customers”thinkstheyshouldtakeoverwhatyoucurrentlydoforthem.Agoodexampleof

thisistheretailtrade–bothacustomerofproductmanufacturersandacompetitorwiththeirownhousebrands.

Identifyallexternalstakeholdersthatmightmatterinyoursuccess.Thisisnotaboutjustthinkingaboutyourcentralstakeholder;it’saboutidentifyingallthepeoplewhomattertoyourfuturesuccess,asfurtherexplainedinchapter4.Expandingyourviewofwhomatterswillensurethatyouhaveacomprehensiveplanforneed-findinginGear1,whenyouask:Whosevoicesmustbeheard?Withadiverseteam,youcanuseyourknowledgeandexperiencetobroadenthelist.

Forexample,inthecaseofAC/ACI,membersoftheFUELteamallhadimportantperspectivesfromtheirexperiencewithhealthcareleaders,patients,policymakers,providers,andsurveyors.Everyoneofthesestakeholdersplaysaroleintheirsuccess.Bybeingawareofthemandconsideringtheirrelationshipstoeachotherandtheirroleinyourfuturesuccess,youwilldesignamorecomprehensiveneed-findingplan–whichwillalsoinspireamoreinclusiveofferinganddeliverymodel.

Captureyourcurrententerpriseactivitiesandcapabilities.Askyourself:Wheredowespendourtimeandmoneynow?Whatarewereallygoodat?Thisisbestdonebymappingoutcoreactivitiesandcapabilitiesasanintegratedsystemratherthanmakingasimplelist.Asfurtherpresentedinchapter6andintheToolKitsectionofthisbook,thepowerofyoursystemisbasedonhowtheseactivitiesandcapabilitiesfittogether.Thisisalsothetimetobetotallyobjectiveaboutwhatyoudoreallywellandcometoateamconsensusonwhereyoucurrentlyputyoureffortsandexcel.

Forexample,theAC/ACI“Aha!”wasthatthetwooperatingunits,ACandACI,weren’tdoingbusinessinexactlythesameway.However,therewereimportantlinksbetweenthemanddistinctandcomplimentarycapabilitiesineach.ThecombinedactivitiesofACandACIcouldbeleveragedintonewandmorepowerfulwaysofdoingbusiness,eventuallyleadingtoanewenterprisestructurethatbetterstrategicallydefinedthepurposeandofferingsoftheenterpriseandbuiltonthecapabilitiesofthesetwoorganizations.

It’simportanttoappreciatewhatyouhaveinplayatthestart,asyouwillcomebacktothisinGear3,whenyouhaveyournewvisioninmind.Askyourself:Whatdowehavethatnooneelsecanmatch?

Dothesameforyourcompetitorsandthenassessyourdistinctiveness.Organizationsoftenfocusonwhattheydobestanddon’tstoptocomparetheir

modeltothatofothers.Whenworkingwithteamsthathavemappedboththeirsystemsandthoseofothers,thereisalwaysan“Aha!”moment.InthecaseofAC/ACI,oneofitsadvantagesisthatitworkswithvirtuallyeverypointofcareinthehealthcaresystem,makingituniquelypositionedto“connectthedots”acrossthehealthcaresystem.

Throughthisassessment,youmightalsodiscovera“hiddengem”inyoursystems.Forexample,inworkingwithFrito-Lay,theirdirect-to-storedeliverysystemcansometimesbeconsideredaconstraint;lookingatitthroughadifferentlens,youcanthinkoftheskillsandknow-howbehindthatdeliverysystemasapowerfulcapabilitythatcanbeleveragedintoamyriadofotherapplications.Ontheflipside,youmightfindthatputtingyoursystemnexttoyourcompetitors’leadstothefrighteningconclusionthatyoulookprettymuchthesame.That’softenthecaseinmorematuremarkets,likeconsumer-packagedgoods.

Toassessyourcurrentdistinctivenessandcompetitiveadvantage,askyourself,Howdifferentarewe?Canwegrowandsustainsuccesswithourcurrentsystemofactivities?

Mapyourcriticalprocesses.Ineverybusinessinwhichthereisascaledactivity,thereisanunderlyingprocess.Sometimesthatisintuitive,butmoreoftenquiteexplicitinlargeenterprises.Itisvitallyimportanttounderstandandacknowledgeyouringrainedwaysofdoingbusiness.Thatcanrevealseveralthings.One,itmightbethatyouhavebeendoingthingsinasystematicwaywithoutknowingit;that’sagoodthingtoexplicitlycodify.Two,itmightbethatyouhaveasystemthatconstrainsyoureffortsandrejectsnewideas.Three,youmightfindthatyourprocesseshavebeenbuiltforanothertimeandneedaredesignorstreamliningtomakeyoumoreresponsiveandagile.Thoseareallgooddiscoveriestohaveinhandupfront.

Beingexplicitaboutyourprocesseswillmakeyoumorepreparedtoleverage,refine,orrethinkyourprocessesasyoupreparetoscaleinGear3.InthecaseofAC/ACI,itfoundthatitsstandards-developmentprocesswasrigorousandprecise,buttoolengthyandcumbersomefordoingbusinessinanagile,ever-evolvingway.Beingmoreexplicitaboutprocesseshelpsinunderstandingwhatneedstobepreservedandalsowhatmightneedtobere-engineeredforthefuture.

Imaginewhatthefuturemightlooklike.Basedonwhereyouseethemarket,players,andstakeholdersheading,itishelpfultopaintapictureofwhatthefuturemightlooklike.Whileyoudon’tyetknowpreciselywhatyourdistinct

rolewillbe,younowknowthatthefuturewon’tlookmuchlikethepresent!Byprojectingafewscenariosofhowtrendsandplayersplayoutintothefuture,youwillhaveagreatersenseofurgencytodesignforthefuturenow.

Considerallyourpossiblestrategicchoiceconsiderationsupfront.Inchapter1,Ireferredtoalistofquestionsthatneedtobepreciselyansweredindefiningyourenterprisestrategy.Attheoutsetofaquest,everyonehasideasaboutwhatthoseoptionsmightbe.Bygettingeveryone’sideasandassumptionsonthetableupfront,youwillmakeyouroptionsexplicit.Youmightdiscoverthatyouhavearelativelynarrowsetofconsiderations–orthatyouareallovertheplace.Ineithercase,thisexercisewillgiveyouastartingpointfromwhichyoucanbegintoparedownthelistandgetfocusedonwhereyouwillplaceyourdevelopmentefforts.

Synthesizeyourmostcriticalfactorsformarketsuccess.Throughaprocessofsensemakinginwhichyoushareallyourdiscoveriesfromthisphase,itwillbeclearthattherearesomefactorsthatwillbecriticaltoyoursuccess.Forexample,forAC,connectingprovidersandpatientsacrossthecontinuumofcareinthesystem,andmovinginstepwithanincreasinglyreal-timeanddigitalapproachtomanagingqualityhealthcarewerecritical.Atthispoint,youshouldidentifyandcarryforwardthemostcriticalfactorsfromamarketandenterprisestandpoint.AttheendofGear1,youwillhaveakeensenseofthehuman-centeredopportunities.CombiningyourdiscoveriesfromContextualizingYourChallengeandGear1,youwillbeinapositiontosynthesizedesigncriteriaforGear2.

Alltheseprinciples,considerations,andactionswillleadyoutoasolidunderstandingofthemarketcontextandabettergrasponwhereyoustandnow.Thiswillgiveyousomeearlyhintstowhereyoumightplayandhowyoumightwininthefuture.

BuildingaBusinessCase:DataAnalysis&ValidationGiventhattheoutcomesofthisphaseshouldbefact-based,criticaldataliketrendvalidationandmarketsizingwillhelpyoumakesomeearlychoicesonwhotoserveandwhichsegmenttopursue;thiswillfeedintoacompellingbusinesscaseinGear3.

ImportantMindsets,Methods,&ThinkingModesMindsetMatters:Thereisalwaysalotofenthusiasmattheoutsetofaquest.Thechallengesandthestakescanoftenbeamplifiedinthisphase.Whatwillbemostimportantistomaintainabigdoseofpositivityandacollectivecommitmenttocreatingthefuturetogether.Whenexaminingyourcurrentstateandprocesses,exerciseempathy,aspeoplewillnaturallyhaveasenseofprideandownershipintheircontributiontotheenterprisetodate.Moreover,thisphasealsocallsforanopenmindtonewmarketopportunitiesandnewwaysofdoingbusinessinthefuture.

MostCriticalMethods:Thespiritofcollaborationcontinuestobeacriticalfactorinthisphase.It’sthemostproductivewaytogeteveryone’sinsightsandperspectivesonthetableinshortorder.Youwillalsoexerciseyoursystemsmappingskillsinthisphase,asyoubegintoappreciatetheecosysteminwhichyouoperate–bothexternallyandinsideyourenterprise.

RegulatingThinkingModes:Whilethisisthetimetofullyunderstandthegravitasofyouroperatingcontextandgeneratealonglistofwhatyoumightconsider,thisisalsoverymuchatimeforcriticalthinkinganddecision-makingtofocusyoureffortsgoingforwardinthedevelopmentprocess.

Withanappreciationforthecontextinwhichyouoperateyourcurrentstate,youshouldnowbealignedontheopportunitiesaheadandreadytoexplorewhatpeoplereallyneed!

Theprocessofcontextualizingyourchallengecanbearigorousanalyticalexercise,asitwasforAC/ACI.Inothercases,opportunitiesmayariseasaresultofmindfulnessofimportantmarketsignalsthatinspirenewwaystohelpcustomers.ThefollowinginterviewwithAshwiniSrikantiahofFidelityLabsbringstolifehowsensitivitytounmetneedscansparknewopportunitiestoexplore,andhowengagingabroadsetofstakeholdersintheneed-findinganditerativeprototypingprocesscanleadtoasignificantbreakthroughinvaluecreationfortheenterprise.

InterviewwithAshwiniSrikantiahVicePresident,EmergingProducts,Fidelity

StudentDebtProgramatFidelityInvestments

“Aboutthreeyearsagowestartedlookingintothebig,gnarlyproblemofstudentdebtinAmerica.Historically,Fidelityhasnotbeeninthelendingbusiness–weareassetmanagers,notdebtmanagers.Butasassetmanagers,welookattherolelendingplaysinpersonalfinancebecauseloansareabigpartofpersonal-wealthmanagement.

Westartedourlookatstudentdebtwithamixofprimaryandsecondaryresearch,interviewingpeoplewhohadstudentloans,andreadingtounderstandthemacro-andmicro-economiccontextoftheproblem.WealsodidsomereallyquicktestsandexperimentswithinourowncommunityofemployeesatFidelity.

Thefirstbiginsightwasthatstudentloanshaveahugeimpactonpeople’slives.Theyfeelverydifferentlyaboutstudentdebtthanaboutotherkindsofloans.Forinstance,theyseetheirmortgageasequitybuilding,futurefacing,andpositive.Buttheyseetheirstudentloanasa“ballandchain”thatisholdingthemback.

Thesecondinsightwasthatpeopledon’tunderstandhowstudentloanswork.Andtheyareoftenmadetofeelstupidwhenaskingquestionsaboutit.

Thethirdwasthatpeopledidbenefitfromhavingsomeguidanceabouttheirpersonalstudentloan.Somewereabletosuccessfullyrefinanceandsave.Butwhenotherstried,theywererejected,makingthemfeelevenworsethanwhentheystarted.

Sowewereontosomething.Wehaduncoveredarealunmetneed.AnditwashappeningacrossAmerica:about60percentofmillennials,40percentofgenXersand25percentofboomershavestudentdebt.

Weidentifiedthreekeyopportunityspaces:directhelpforemployeesacutelyoverwhelmedbyandundereducatedabouttheirstudentloans;employerswhowerebecomingmoreandmoreinterestedinhelpingemployeesnavigatetheirstudentloanproblemasbothawaytoattracttalentandtoaidproductivity;andpeoplewhocouldavoidthedebtcycletobegin

withbyhonestlydiscussingthefinancialimpactofcollegechoices.Fidelityisnowhelpingitsownemployeespayofftheirstudentloansby

contributing$10,000overthecourseoffiveyearsonamonthlybasisdirecttotheirstudentloanaccounts.We’vebecomeleadersinthestudent-loansbenefitsspace.

Welaunchedanonlineplanningandadviceportalafterayearandahalfofdesignandproductiterationandcontinuedlaunchingtoincrementallylargergroups,continuallytakingfeedbackandbasicallyimprovingandevolvingtheproduct.

Wecollaboratedwiththemarketingenginebehindourworkplaceservicesteamtoreallybroadcastthatout.Withinjustthreeweeks,wehadover50,000peoplelogintothetoolandstarttouseittogetpersonalizedguidance.

Inthreeyearswe’vegrownfromthreetooverahundredpeopleacrossfivedifferentsitesworkingdayinanddayouttobringthistolife,makingitoneofthetoptengrowthinitiativesofthefirm.

Wewouldnotbeenjoyingthisgrowthhadwenotbeenabletofigureoutinternallyhowandwheretopositiontheseeffortssothattheyladderuptothebroaderstrategicobjectivesofthefirm.Figuringoutwhoisleadingeffortsthataremovingtowardasimilarendgoalandworkingtogetherwiththemwascritical.

Sowasgettingtheclientvoicerepresentedthroughprimaryresearch,bothqualitativeandquantitative,andthensharingthatwithkeyplansponsorsacrossourmoststrategicclients.EngagingtheirinterestenabledustoreallypullthroughthiseffortbecauseaPepsioranIBMwasexcitedaboutwhatweweredoing.Thatlenthugecredibilitytoourefforts.

Anotherwascontinuingtoarticulatethevisionofalargeopportunityandalargerproductsystemwhilesimultaneouslystartingverysmallandmakingprogressonreleasingonepieceatatime.

Oursuccesshasmeantthatnow,themajorityofmyjobisstakeholdermanagement,strategicalignment,andmakingsurethatwecontinuetobe

connectedwiththerightpeopleacrosstheorganization.19”

LISTOFTOOLS&TIPSThefollowingtoolsandtipsareprovidedinparttwotohelpexplore,assess,andfocusyourthinking.

STEEPAnalysis:Identifyingfuturemarket-basedopportunities

LandscapeofPlayers:Identifyingfuturefriends&foes

ScenarioPlanning:Exploringfuturepossibilities

StakeholderMapping:Identifying&connectingpeople

ActivitySystems(CurrentState):Visualizingyourcurrentstrategy

ActivitySystems(Competitive):Visualizingcompetitivestrategies

ActivitySystemAssessment:Assessingcurrentcompetitiveness

StrategicChoiceConsiderations:Framingupcurrentchoices&futureconsiderations

4GEAR1:EMPATHY&DEEPHUMANUNDERSTANDINGREFRAMINGTHEOPPORTUNITY

Creatinghuman-centeredvaluestartswithappreciatingthebroaderhumancontextofyourpursuitanddeeplyunderstandingtheneedsofthepeoplethatmatter.Hereisastorythatdemonstrateshowadeeperunderstandingofimportantstakeholderscanrevealnewopportunitiesandraisethebaronambitions.ThisstoryshowshowusingGear1canleadtoaradicalreframingoftheopportunity,amoreholisticsolutionsystem,andeventuallyashiftinstrategy.20

TheHealthcareCompanyStory:SeeingtheProblemwithHeartTheChallengeAbout40,000Canadiansdiefromsuddencardiacarresteveryyear.21AleadinghealthcarecompanyhadasolutionforsomeoftheseCanadians–aheart-rhythmdevicethatmonitorsand,ifnecessary,resetsapatient’sheartrhythmfollowingsuddencardiacarrest.Whilethedeviceisnotappropriateforallpatients,itcouldsavethelifeofthoseforwhomitisindicated.

Thecompanybelievedtherewasanopportunitytobetteridentifyandcapturedevice-qualifiedpatientsandthussaveliveswhileexpandingsales.Totacklethischallenge,thecompanyandamajorteachinghospitalinCanadacommissionedastudytoshedlightonthisimportantissueandexploreNorthAmericanpracticesinthemanagementofconditionsforwhichadeviceisindicated,withafocusonresolvingtheCanadianchallenge.Attheoutsetoftheproject,itwasthoughtthebusinessopportunitylayinimprovingthe

effectivenessofreferralstoelectrophysiologists(EPs),thespecialistswhoperformtheproceduretoimplanttheselife-savingdevices,alongwithbetterpatienteducation.AtthecompletionofGear1,thescopeofopportunitywasbroadenedtoincludeconsiderationofthesystemicchallenge.

TheBreakthroughs

ThefirstGear1breakthroughwasareframeofthechallengethatnotonlyidentifiedwherethemoresignificantproblemslay,butalsomagnifiedthebusinessopportunity.Mappingthebroaderpatientjourneyrevealedamoreaccuratepictureofthepatientflowandtherelationshipamongallofthekeyprofessionalstheyencounteredalongthewayinmanagingtheirhearthealth.Theseotherstakeholdersincludedgeneralpractitioners,EmergencyDepartmentstaff,internalmedicine,cardiologists,andnursesateverypointalongthepath.Oftennursesingeneralpractitioners’offices,emergencydepartments,clinics,andspecialistofficeshavethemostfacetimewithpatients,givingthemvaluableinsightsintothepatientexperience.

UnderstandingthecontextmorebroadlyrevealedthatthepatientjourneybeginslongbeforetheEPbecomesinvolved,andevenlongbeforethepatient’sreferringphysicianisbroughtintothepicture.Visualizingthepatientflowfromoneprofessionalstakeholdertoanother,andfromonesitetoanother(i.e.,GP’soffice,EmergencyDepartment,hospital,orclinic),revealedacomplicatedsystemofrework,withpatientsoftenreturningtothesamepeopleandplacesor,insomecases,droppingoutofthesystemaltogether.Thisvisualizationbecameknownas“thepinballmachine”(asdepictedinFigure7).Thedirectionalarrowsshowhowthepatientbouncedaroundfromonepersonorplacetoanotherinthesystem,whilethe“exit”arrowsindicatewheretheydroppedoutofthesystem.

Fig.7HealthcarePinballMachine

Asthearrowsshow,patientswouldlandinEmergencyandbereferredtoacardiologistorperhapsbacktotheirGP,whomayormaynothavebeenequippedtoeducate,diagnose,orreferthepatient.PatientswhomadeittoacardiologistmayormaynothaveproceededtoanEP,dependingontheirtestresults.AndeveniftheywerereferredtoanEP,theymayhavebeensentbackforrepeatedtests.Thesepatientsremainedactiveinthesystem,butwithouttimelyorcompleteresolutionoftheirclinicalneeds.Evenworse,somepatients,foravarietyofreasons,weredroppingoutofthesystemcompletely,asindicatedbythe“exit”arrows.Thesepatientswerenotbeingflaggedforcriticalfasttrackingandresolutionoftheirpotentiallyfatalcondition.Forthemajorityofpatients,thisexperienceledtohigheranxiety,resignation,orineffectiveresolution.Forthoseatseriousriskofasuddencardiacarrest,notobtainingadevicewasparticularlystressful.

Throughfurtheranalysis,itwasestimatedthatonly5percentofcardiacpatientsmadeittoanEPandonly10percentevermadeittoacardiologist,whooftenrefersapatienttotheEP.22Thatmeantasmanyas90percentofoneparticulargroupofcardiacpatientswerebouncingaroundinthesystemfromtheirGPtoothermedicalprofessionals.ManyofthesepatientswereendingupinEmergencyandbeingdischargedwithoutanyfurtherreferralorfollow-up.Thatwasputtinglivesatrisk,eatinguphealthcaresystemdollars,andresultinginlostbusinessforthecompany.Giventhesefacts,theoriginalbusiness

challengewasthenreframedtoconsidertheentirepatientpathwayandbroaderreferralsystem.

ThesecondbreakthroughinGear1camethroughadeeperunderstandingofallthestakeholdersinthesystem.Deepunderstandinghelpedidentifywhattheflow-limitingissueswereandwhatstakeholderneedshadtobeconsideredindesigningsolutionstoimprovepatientexperienceandoutcomes.Throughpatientstories,welearnedtheywerefrustratedbythelackofinformationandempowermenttheyexperienced.Thestoriesfromhealthcareprofessionalsrevealedhoweachindividualpractitionerappearedtobetechnicallycompetent,butallhadadifferentsetofprotocolstofollow.Theydidnothaveaclearreferralpathwayanddidnotreallyknowifothersadheredtothesameteststandardsandprotocols.Theissueswerethuscomplexandsystemic;therewasapronouncedneedforbroadandconsistenteducationforbothpatientsandprofessionals,simplifiedandsharedprotocols,andaclearpathforpatientreferrals.Theseinsightspointedtospecificareasofopportunityformoreeffectivesolutions.

TheOutcome

Keyopportunitiesaroseintheareasoftargetedinterventions,patientmanagementandeducation,anddefiningreferralsystemsandprotocols.Mostimportantly,theoutcomesofthisprojectpointedtoanimportantstrategicshift–fromsellingtospecialiststoshapingamoreeffectivehealthcaresystemthatwoulddeliverbetterhealthoutcomesandvalue.

Whiletherewerebroaderandlonger-termsystems-widesolutionstobedeployed,Gear1aloneprovidedanewframeworkforfocusingeffortsanddevelopingsolutions.Firststepsincludedexpandingafast-trackprocedureforpatientswhopresentedspecificredflagsintermsofsymptomsandtestresultsintheEmergencyDepartment,alongwithmarketingprogramsaimedatincreasinggeneralpractitionerawareness.Thelearningwasalsosharedbroadlywithintheorganization.Oneofthepatientparticipantsfromthisprojectwaseveninvitedtotellhisstoryatacompanyevent,andthecompanycontinuedtosupporthiminhispatient-advocacyinitiatives.Thispatient,andthecompellingstoryofthecompany’snewpatientexperiencevisionpresentedatthecompany’ssalesmeeting,humanizedthechallengeforthebroadercompanyteam.

Thisinvaluablereframingandsensitivitytostakeholderneedssettheteamuptobettermeetthechallengeofaddressingabiggeropportunitythanoriginallyenvisioned.Toaddressthischallenge,thecompany’steamdrewfromthe

successofothers,bothlocallyandglobally.Itcreatednewandspecifictacticalsolutionstobridgethegapsinthesystemandhelpeveryoneworkinawaythatfacilitatesmovingpatientsthroughamoreefficientprocess.Longerterm,itwasclearthereneededtobemoreextensiveprofessionaleducation,patientcounselingaids,alignmentonclearerandmoreconsistentprotocols,andamoreclearlydefinedandeffectivereferralnetwork.

Sincethisproject,thecompanyhasfollowedasteadypathtowardsystemssolutionsaimedatvalue-basedhealthcare,takingintoaccountthepathwaysofspecificpatientcohortsandactivatingsolutionsatthemostcriticalpointsintheirjourney.Moreandmore,healthcaresystemsintheworldarefocusedonimprovingclinicaloutcomes,improvingthepatientjourney,andcreatingagreaterreturnonhealthcaredollars.Thepinballmachinecertainlyframesupthatopportunityclearlyandhasservedasahelpfulreferenceinmappingandpinpointingimprovementopportunities.

“Theoutputoftheprojecthashelpedusreframetheissueandgetfocusedonwhatreallymatters,whichisultimatelythepatient.Thishelpeddrivealignmentwithinourorganizationandultimatelyledtomorefocusedeffortsandimprovedlong-termresults.”TEAMLEADER

Thisstorypointstothevalueofbothsteppingbacktoseetheproblemmoreholisticallyandlisteningtoimportanthumanstoriesthatrevealpointsofpainanddeepunmetneeds(whichwillbefurtherexploredinthischapter).Italsounderscorestheprinciplethatifyoudonotfullyunderstandthehumansystem,youmaybetryingtosolvethewrongproblem.Byunderstandingtheneedsofallkeystakeholdersinthesystem,youcanbuildsolutionstomeetabroadersetofneedsandcreatestakeholderbuy-intonewsolutions.Thisundertakingrequiresempathytoseethepicturethroughtheeyesofothers,backedbyrigorousanalysisandsynthesisofdataandareframingofthebusinessopportunity.

Howmanytimesdowefixateonaproblemthatwearesurewecansolveandspendextensivetimeandresourcesonasingularpointoftension,wondering,“Whycan’twemakemoremeaningfulprogress?”That’sthetimetozoomouttothebigpicture,andthendiveintoadeeperexplorationoftheunderlyinghumansystemsandneeds.Thisapproachwillinevitablyrevealwherethebiggestopportunitieslie.Itwillalsohelpidentifytheissuesthatareholdingbackprogressand,inthiscase,preventingfulldeliveryontheabilitytosavemore

lives.Bettermeetingtheneedsofyourimportantstakeholders,especiallytheend

user,isJob1.Byseeingtheworldthroughtheeyesofothers,youwilldevelopadeeperunderstandingoftherelationships,challenges,andneedsofyourimportantstakeholders.Gear1isthecriticalfirststeptowardunderstandingbothwhomattersinyourbroaderhumannetworkandwhatmatterstoeachofthem.TheactivitiesofGear1willhelpyoutodefinerelationshipsmoreexplicitly,bringinggreaterclaritytothechallengeathand.

Thisdeeperappreciationforthehumanfactorwillalsohelpcreateagreatersenseofempathywithyourstakeholdersandmotivateyoutogeneratewaystobettermeettheirneeds,whichyouwilldoinGear2.Thisfirstgearisalwaysfullofsurprisesand“Aha!”momentsthatrevealnewopportunitiestocreatevalueandtapintoyourproblem-solvingskills.Preparetobesurprisedathowmanypeopleinfluencethecourseofactions,howtheirdeeperneedsareoftennotwhattheyseemtobeonthesurface,andhowthisknowledgecannotonlyreframeyouropportunitybutalsoprovidetheinspirationandplatformforsolutioninnovationasyoutackleGear2.

YourGoalinGear1Toframehuman-centeredopportunitiesinthreeways:fullyappreciatingtheinterdependenciesofthehumansystem,articulatingunmethumanneeds,anddefiningdesigncriteriaforGear2.Framingopportunityinthesewayswilloftenleadtoasubstantialreframingandcanhavequiteradicalimplicationsforboththemagnitudeandtheprecisionoftheopportunity.

Thebalanceofthischapterhighlightskeyactivities,outcomes,anddevelopmentprinciples;providestipsontheroleofdataanalysisandvalidation,aswellasthemindsets,methods,andthinkingmodesthataremostcritical;andfinisheswithaninspiredinterviewthatbringsimportantprinciplestolife.Relatedtoolsareincludedinparttwo:ToolKit.

Gear1:Activities&OutcomesFigure8showssomeoftheactivitiesyouwillundertakeinunderstandingpeoplemoredeeplyandsomeofthemostvaluableoutcomesthatwillguideyourGear2effortsanddemonstrateongoingvalue:

ArticulationofNeeds:Whatmattersmosttothepeoplethatmatterinyoursuccess–unmetuniversalneedswithinandacrossstakeholdergroups,definingopportunitiestocreatenewvalue.

Personas:Humandepictionsofarchetypesthatcontextualizeneedsacrossdiverseprofiles–tokeepimportantpeople“atthetable”withyouthroughoutdevelopment.

CurrentJourney:Theenduser’scurrentexperience–revealingthebestandworstpartsoftheirjourney,withpointsofpainasspecificopportunitiestoclosegapsandenhancetheirexperience.

StakeholderMap:Amoreprecisevisualizationofthehumansystem–allofthepeoplethatmattertoyoursuccess,theirrelationshipstoeachotherandtheenduser.

DesignCriteria:CriticalconsiderationstotakeintosolutiondesigninGear2basedonmarketcontextandhumaninsightsandneeds.

DivergentactivitiesinGear1callforanopenexplorationofwhatmatterstopeopleandhowyoumightfitintotheirlives.Anopenheart,openmind,andahealthydoseofcuriositywillleadyoutonewinsights.TheconvergentphaseofGear2callsforsensemaking,analysis,andfactfindingthatwillvalidateyouroutcomesandbringfocustoyourworkinGear2.

KeyPrinciples:AppreciatetheHumanFactorThebenefitsofdevelopingaricherunderstandingofpeopleasthebasisforcreatingnewvalueareevidentinsomanysuccesses.HerearesomeimportantprinciplestokeepinmindthatwillenhancethevalueofyouroutcomesfromGear1:

Fig.8Gear1:ActivitiesandOutcomes

Appreciateallstakeholdersandrelationshipswithinthehumansystem.Openingupthelenstounderstandtheneedsofallstakeholdersandtheirinterrelationshipswillformthebasisofanimportantconnectionbetweenhumansystems,solutionsystems,andbusinesssystems.Thisunderstandingwillbecriticalinmakingyourbusinessidea“stick.”Thiswasdemonstratedinthehealthcarecompanycase,inwhichmappingthepatientjourneyinthecontextofabroaderstakeholdersystemrevealedamoreaccuratepictureofthebusinessopportunity.Wesometimesfocusonasinglearchetypicaluserandneglecttheotherswhoareinvolvedinenabling,deliveringorinfluencinghowacentralideagoesintoplay.Yourinitialstakeholdermappingandneed-findingresearchwillhelpdefinetheroleofeachstakeholderinyourultimatesuccess.Youmightconsiderthesegeneralcategoriesofstakeholders:

Theenduser:Thisisthecentralbenefactoroftheultimatesolution–theymakethefinalcallonwhetherornotyouarecreatingvalue.Inthehealthcarecompanystory,theenduserwasthepatient.Inothercases,itmightbeaconsumer,abusinesscustomer,oremployees.

Enablers:Theyarecriticaltosuccessfuldeliveryofnewsolutions.Theyfacilitateanenduser’sdecision-makingandactionsoractasagatekeeperinthedecision-makingprocess.Byunderstandingtheirneeds,youcanmoreeffectivelyenrolltheminadoptinganewidea.Inthehealthcarecompanystory,allofthemedicalprofessionalsaswellasfamiliesandfriendswereimportantenablers–theyplayedaroleinhowsolutionswereactivated.Asanotherexample,understandingandbettermeetingaretailer’sneedswillenableyoutoworktogethertoacceleratethesaleofyourproductintheirstores.

Influencers:Thoughtheymaynotbedirectlyinvolvedindeliveringasolution,theyshapeusers’andenablers’decisionsandactions.Inthehealthcarecase,theexpertswhodefinedclinicalprotocolswereimportantbecausetheyshapethepracticesofthosewhocareddirectlyforthepatient.Asanotherexample,chefsandnutritionistsmightinfluenceandshapethefutureoffoodandeatinghabits.

Allofthesestakeholdersareimportanttoconsiderincreatinganddeliveringhigh-valuesolutions.AsyoumovethroughGear1,youmaydiscoverotherstointegrateintoyourefforttounderstandthehumanfactor.Thiswillkeepyourofferingrelevanttoeveryonewhomatterstoyoursuccess.

Designathoughtfulandrigorousresearchplantoestablishcredibilityandbuildconfidence.Thekeyquestionthatwillbeaskedis,Whosevoiceswereheardandhowconfidentareyouinyourconclusions?Whileneed-findingexplorationisveryinspiringtoadevelopmentteam,italsoshouldberigorousifitwillserveasthebasisforbigdecisionsandinvestmentdowntheroad.Itwillalsoserveasavaluableongoingreferenceinfilteringnewideas.Whilesomeundertakeresearchtostimulateinspirationandideas,observingandlisteningtoahandfulofpeoplewon’tserveasavalidfoundationinyourpursuits.It’simportanttocomprehensivelymapwhomatters,designasamplethatcutsacrossvariousstakeholderprofiles,record(eventranscribe)interviews,analyzetheminarigorousmanner,andvalidateyourfindings.Thatwillestablishcredibilityintheresearchandconfidenceinthefoundationofyourworkgoingforward.SomeguidelinesonresearchdesignarealsoprovidedintheToolKit.

Usepeople’sneedsasthebasisfornewvaluecreation.Attherootofmanygreatbrandsandbusinessesisadeepunderstandingofhumanneeds.Forexample,FourSeasonsHotelsandResortsisdevotedtomeetingtheneedforexceptional,personalizedguestserviceoneverylevel.Nespressodeliversonthecoffeelover’sneedformomentsofindulgenceandpleasurethroughanexclusive,premiumcoffeeexperience.Virginstrivestodeliverabetterexperienceineverycategorytheyenter.Thesecompanieshavegrowntheirbusinessesovertimebyexpandingthewaysinwhichtheymeetcustomerneedsthroughnewproducts,services,andcommunicationsthatenrichtheirexperience.Someexamplesofhowthisplayedoutinthehealthcareprojectareincludedinthenextpointonstorytellingasamethodtodiscoverunmetneeds.

Moreover,themostrevealingneed-findingactivitiesinvolvedirectcontactwithpeopleasopposedtojustsiftingthroughastackofmarketresearchreports.

Whilequantitativedatawillgiveyouagoodgraspofthenumbers,itwilllikelynotgiveyoudeeperinsightsintoyourstakeholderneedsthatwillallowyoutoidentifyandseizenewopportunities.TheToolKitsectionofthisbookoutlinesseveralwaystoexploreandarticulatetheseneeds.

Listentoactivity-basedstoriestodiscovernewopportunities.Whileunderstandinghowpeoplechooseanduseyourproductsandserviceswillhelpyouimprovecurrentofferings,itwilltendtoleadonlytobetterversionsofcurrentsolutions(e.g.,aproductimprovementorlineextension).Byexpandingyourunderstandingtotheactivitiesrelatingtoyourcurrentproductsandservices,youwilldiscoverabroaderarrayofuntappedopportunities(Figure9).23

Inthecaseofthehealthcarecompany,in-depthinterviewswithbothmedicalpractitionersandpatientsrevealednewinsights.Wedidn’taskeithergroupwhattheyknewaboutheartconditionsordevices.Instead,welistenedtopractitionersrecountingtheirbestandworststoriesaboutmanagingcardiacpatients.Thesestoriesrevealedtheneedforbetterpatientmanagement,moreclearlydefinedreferralnetworks,greatertrustincolleaguesandthesystem,abettergraspofprotocols,andgreaterconfidenceinpatientcommunicationsandcounseling.Thesescience-mindedprofessionalsrevealedtheirmorehumanside,whichwouldnothavebeenexposedhadweaskedaboutaheartconditionorhowadevicemightprovideasolution.

Fig.9LayersofOpportunity

Wedidthesamewithpatients:welistenedtotheirbestandworststories

aboutlivingwiththeirchronicheartcondition.Thesepatientswereeagertounderstandwhatwashappeningtothemandwhattheycoulddoaboutit.Theywantedthestraightgoods,withoutanyconfusingjargon.Weheardstoriesabouttheirexperiencesthatwentlikethis:“Thewholethingwasscary.Ididn’tknowwhatpillsIhadtotake,whereIhadtogo,whotosee.EverydoctorIsawwantednewtestsdoneorwantedtoknowwhereI’dbeen…I’mseventy-eightyearsold.Ican’tkeeptrackofthesethings.Mynursereallyguidedme.Withouther,I’dbelost.”Thesepatientsfeltlikeapinballinthesystem,andtheydidn’tlikeit.

Bylisteningtoactivity-centeredstorieswithempathyandanopenmind,andsimplyrespondingwith“Tellmemore”andwondering“Whyisthatimportanttothem?”youwillgleanfresherinsightsthanyoueverwouldbydrillingpeoplewithhundredsofquestions.Guaranteed.Thesenewdiscoverieswillpointyoutowardnewopportunitiesandinspireabroaderarrayofsolutions.

Appreciatethe“wholeperson.”Humansaremultidimensionalintheirneeds.Consideringthebroaderactivityrevealsmoreofaperson’swholelifeandtheirneedsonmanylevels–whichleadstosolutionsthatarenotonlyrelevantbutalsomeaningful.Thatholisticapproachcallsforconsideringalltypesofneeds,notjustthepracticalandrational.Humanshavemanykindsofneeds–functional,informational,relational,emotional,andidentitybased.Manyenterprisesarewellversedonthefunctionalneedsforproductsandservices,particularlywithintheircurrentdomain.Thinkingmoreholisticallyabouthumanneedswillbroadenyouropportunitiestobettermeetimportantneedsandenhancepeople’sexperience.

Thefollowingframework(Figure10),referredtoinshortasSPICE,24isbasedonanalysisofinterviewsconductedacrossprojectsinmyearlydaysatRotmanDesignWorks.Ithelpstostimulateamoreholisticconsiderationofpeople’sneedsandrevealotherareasofopportunitybeyondthedesignofafunctionallybetterproductorservice.Considerthefollowing:

Social:Whatdopeopleneedfromtheirrelationshipswithothers?Inthecaseofthehealthcarecompany,adoctorneedstohaveconfidenceandtrustinhisorherreferralnetwork.

Physical:Whatdopeopleneedonaphysicalorfunctionallevel?Inthecaseofthehealthcarecompany,thedeviceitselfisalife-savingsolution.

Identity:Whatdopeopleneedtoenhancetheirsenseofself-worthorreinforcetheirpersonalidentity?Inthecaseofthehealthcarecompany,eachpatientneededtofeelthattheirlifemattered,whilethepractitionersneeded

tobeseenasprofessionalswhoweredoingthebestfortheirpatients.Needsliketheseareimportanttorecognizeandrespectinthedesignofyoursolutions.

Communication:Whatkindsofinformationdopeopleneedandwhenandwheredotheyneedit?Inthecaseofthehealthcarecompany,everyonecouldbenefitfromgettingtherightinformationattherighttime.Patientsneededtoknowwhatwashappeningtothemandwhattoexpectiftheyweretogetadevice;practitionersneededtoknowthelatestindiagnosisandtreatmentprotocols.

Emotional:Whatdopeopleneedpsychologicallyandemotionally?Inthecaseofthehealthcarecompany,patientsneededtofeelmoreempowered,andthepractitionersneededtofeelrecognizedfortheircontributions.Theseneedsimpactyourdesignoftheidealexperience,withthegoalofhelpingpeoplefeelthewayyouwouldlikethemtofeelasaresultofyourefforts.

Fig.10SPICEFramework

Quantitativetrenddatacanhelptoplacetheseneedsincontextandgivesomedimensiontobroadopportunities,buttheyneitherfeedyoursenseofempathynorrevealthedeeperinsightsthatactivity-basedneed-findingwill.Allgood

researchandopportunityframinginvolveacombinationofqualitativeneed-findingandquantitativeanalysis,aswillbenotedlaterinthischapter.

Searchforthetruthandkeepitreal.Thatstartswithturningoffyour“filter”whenlisteningtostories.Transcriptionsareagoodwaytorememberandsharetherealstory.Whenarticulatingneeds,usefirstpersonandnormallanguage,andleveragedefiningquotes.Createpersonasthatarenotidealistic;revealtheirfrustrations,anxieties,andpointsofpain.ThereismoreonthisintheToolKitsection.

Cultivatesharedempathy.Gear1ismostpowerfulwheneveryoneontheteam,andyourextendedaudience,sharesadeepunderstandingofandempathyfortheimportantpeopleintheequation.Ideally,everyoneontheteamshouldhavetheopportunityforameaningful,firsthandexperiencewiththoseforwhomtheywilldesign.Itisvaluableforeveryoneonthedevelopmentteamtoconnectwiththepeoplewhomatter;thatincludesinvolvingfinancialofficers,operationsexperts,marketingfolks,salespersonnel,andproductdevelopmentexperts.Asnotedinchapter1,“Connectingwithandunderstandingpeopleinanauthenticwaygivesmeaningandpurposetoourwork.”Ifthatfirsthandexperienceisnotpractical,youcanbringyourfindingstolifethroughvideoclipsandstoriesinawaythatpeoplearemovedbythefindings,aspresentedintheToolKit.Thatwillalsohelptoinspireempathyoutsideyourdevelopmentteam.

Useyourfindingstodefineyourcriteriaforsolutiondesign.Whiletheneedswillframewhatpeoplepersonallyneedtohaveanidealexperience,designcriteriawillprovideimportantguidelinesforbuildingyoursolution.ThesecriteriacanbedefinedbasedontheneedsofthemarketatlargealongwiththeinsightsandneedsdiscoveredinGear1.Forexample,solutionsdesignedtoimprovecardiac-patientoutcomesneededtoconnectallpartiesinthesystem.Ultimately,thesecriteriawillnotonlyhelpguidesolutiondevelopment,theywillalsoinformyourstrategyinGear3.

TakingthesestepstomoredeeplyunderstandtheneedsandcriticalrelationshipswithinthebroadersystemofpeoplewhomatterwillprovideasolidfoundationforvaluecreationinGear2.Itwillalsoserveasavaluablereferenceinfuturedevelopmentprojects.

BuildingaBusinessCase:DataAnalysis&ValidationRigorousdataanalysisandvalidationoffindingswillfortifyyourbusinesscase.Thiswillprovidecompellingreasonstobelievethatyouareanchoringyourdevelopmenteffortsinasolidfoundation.Withadeepandempathicunderstandingofthehumanfactorinyourquest,youwillmostlikelyhaveadifferentlensontheworldandtheopportunitiesbeforeyou.Youshouldhavearenewedsenseofempathyanddeeperunderstandingofthepeopleinthesystemthatmatter.

Atthesametime,whenimportantstrategicchoicesandbigcapitalinvestmentsareontheline,storiesaloneareoftennotenough.Factsandnumberscanhelptoclinchyourcase.Tofurtherfortifyyourconviction,thereareseveralwaysyoucanbuildafact-basedpictureofthecriticalimplicationsofyourdiscoveries.Herearesomesuggestions:

Turnyoursoftdataintoharddata.Youcandeconstructalargebankofstoriesintodeeperinsightsandconvertthemintothousandsofdatapointsthroughtaggingandtabulation.Onehundredinterviewseasilycanturnup10,000datapoints.Youcanrunthoselikeanyquantitativeanalysis,lookforcorrelationsbygroup,andascertaintheuniversalneeds.

Runasimplesurvey.Onceyouhavetreatedyourdatawithobjectivityandrigor,youcanscaleyouruserdatabyusingasimplesurveytool.It’ssimple,fast,cost-effective,andaccessibletoanyoneusingsimpleweb-basedtechnologies.Youcanascertainboththeimportanceoftheneedandcurrentsatisfactiontoquantifytheopportunitygap.ThereismoreonthisintheToolsection.

Re-tabulateyourquantitativedata.Giventheopen-endednatureofyourGear1exploratory,youlikelyhaveafreshperspectiveandanewhypothesisonwhat’sreallygoingoninthemarket.Now’sthetimetodigintoyourresearchassetsortapintolarge-scalesyndicatedstudiestorerunthedataandtestyourhypothesis.

Therearemanyotherwaysofbuildingadata-basedcasefornewopportunities.Thekeyistobeefficientandresourceful,andensurethatyourdata-gatheringdesignismethodicallysoundandthesourcesofdataarecredible.Business-mindedpeopleappreciatehumanstories.Theyalsoappreciatesomehardfacts.

ImportantMindsets,Methods,&ThinkingModesMindsetMatters:ThemostimportantmindsetforGear1isempathy;thatwillenableyoutounderstandthehumanfactoronadeepandauthenticlevel.Yourgoalistoseetheworldthroughtheeyesofothers,andfeelwhattheyfeel,toappreciatetheirdeepestunderlyingneeds.Puttingasideyourneeds,opinions,andperspectivesiscritical.Toooften,Ihaveheardpeoplewatchingconsumersfrombehindaone-waymirrorinfocusgroupsmakecommentslike,“Sheobviouslydoesn’tknowwhatshe’stalkingabout.”Thatisn’tempathy.Aimtoputyourselfwhollyintheshoesoftheotherperson.

Totrulyempathize,itisimportanttoremembertoturnoffyourfilterwhenobservingothersandlisteningtotheirstorieswithopennessandmindfulness.Anopenandunfilteredmindsetwillallowyoutodiscovernewopportunitiestocreatevalueonadeeperandmoremeaningfullevel.Intuition,alongwithyournaturalcuriosity,willguideyouthroughtheneed-findingprocess.Insteadofinterpretingwhattheysay,askyourself,Whyisthatimportanttothem?withthegoalofunderstandingtheirdeepermotivations.

Thatwillfortifyyourintrinsicmotivation;solvinganunmethumanneedgivesoneasenseofpurpose.Nowisthetimetosetyourextrinsicmotivationsaside(i.e.,thatnextbonusoraward).Youarenotcollectingfactstosupportyourcaseorpreconceivednotions;instead,youarelisteningfornewinsightsthatwillinspireyoutocreatenewsolutions.

MostCriticalMethods:ThemostcriticalmethodinGear1isneed-finding,butyouwillalsodrawuponyourstorytellingandsystemsmappingskillsindiscoveringandcommunicatingnewopportunities.

RegulatingYourThinkingModes:ThemostimportantcognitivemodeforGear1isunderstanding;thatgoesnaturallywithempathy,openness,anddiscoveringasenseofpurpose.Nonetheless,therewilltimesinGear1whenyouwillhavetogenerateideasandhypothesesontheneedbehindnewinsightstodiscoverdeepermotivationsandopportunities.Andattheimportantconvergentphaseoftheprocess,youwillhavetomakesenseofthedataanddecideonwhatmattersmostasyoumoveontothenextphaseofdevelopment.

OnemanwhohasalwaysputpeopleatthecenterofhisdreamsandbelievedthatthereareendlessnewpossibilitiestoimprovehumanlivesisEarlBakken,alife-longhumanist,innovatorandco-founder,chairmanemeritusoftheworld’s

leadingmedical-devicecompany,MedtronicInc.InspiredinhischildhoodbythemovieFrankensteinandtheconceptofusingelectricitytobringabeingtolife,hepursuedhisdreamsandco-foundedMedtronicin1949inagaragewherehisfirstwearablepacemakerwaseventuallybuilt.HisinnovationpursuitsextendbeyondMedtronic,includingtheHeart-BrainInstituteattheClevelandClinic,aholistichealinghospitalinNorthHawaii,andEarl’sGarage,aprogramthatinspireskidssevenyearsandupwithasenseofwonder,passionforlearning,andcapacitytocreatethroughminds-on,hands-onactivities.

ThefollowinginterviewwithEarlBakken,co-founderofMedtronic,revealstheimportanceofdreams,intuition,prototypes,andcollaboration–essentialingredientsininnovation.ItisaninspiringpreludetoGear2–imaginingandvisualizingnewwaystomakelifebetterforpeople.Inthisinterview,EarlBakkenreferstotheNorthHawaiiCommunityHospital(NHCH),afull-serviceacute-carehospitalopenedin1996asthefirsthospitalintheUnitedStatesdesignedcompletelyaroundthephilosophyofintegrativemedicine,andwhichservesasaninnovativeprototypeforapatient-centric,holisticmind-body-spirithealingexperience.Serving30,000patientsinthiscommunity,NHCHwasratednumberoneinMedicare’sPatientSatisfactionSurvey.25EarlBakkenhasearnedalonglistofawardsininnovation,entrepreneurship,leadership,science,andeducation;hisstoryisrecountedinhisautobiography,OneMan’sFullLife.26

InterviewwithEarlBakkenCo-founderandChairmanEmeritus,MedtronicInc.

“I’mabigdreamer,andmanyofmydreamshavecometrue.Ifindthatduringthetimeatnightbetweengoingtobedandactuallyfallingasleep,whenmy“mind”isfreefromthinkingaboutallofthedailystuff(andmymindisfreefrommybrain),“pieces”startcomingtogethertoformwholepicturesandideas–similartoapuzzle.Imayhavetalkedwithdifferentpeopleaboutdifferentissuesorproblemsand,duringthatstateof“almostsleep,”mymindhastheabilitytoorganizeconnectionsthathelpsolveissuesorneedsorproblems.Ikeepanotepadnexttomybedandanastronautpenforwritingupsidedown,andIoftenmakescribblesofmyideas,whichhavetobedecipheredinthemorning.

It’simportanttotrynewthings.Thereistheriskthatyoumaynotbeexactlyrightatfirst,butyouwillseewhereyouneedtomakeadjustmentsinyouraimasyouadvancetowardyourgoal.Theactofdoingprovidesleaderswithexperience,theultimateteacher.IrefertothewearablepacemakerprototypethatIdesignedandwebuiltinfourweeks.Wedidn’tintendforittobeusedonahuman,sowedidn’tmakeitlookfancy.WhenDrLillehei(heartsurgeonandearlycollaborator)didn’twanttorisklosinganotherchild’slife,heattachedittoachild.WhenIsawthat,Ihadsuchmixedemotions.Hadwemadeitwellenoughforachild?Whileitsavedthechild’slife,wealsolearnedvaluablelessons,likerecessingtheknobssothechildrencouldn’tchangethesettings.

Inhelpingtoputtogetheracommunity-healthinitiativehereonHawaiiIslandoverthepasttwentyyears,Ihaveencouragedpeopletothinkoutofthebox.ItrytoconnectthepeopleImeetwitheachothersothatassetscanbe

combinedandeffortscanbesupported.27”

LISTOFTOOLS&TIPS

Thefollowingtoolsandtipsareprovidedinparttwotohelpexplore,assess,andfocusyourthinking.

RolePlaytoEmpathize:Livingtheexperience

Need-FindingResearch:Designingadisciplineddeepdive

Observation:Understandingcontext&behaviors

UserJournals:Understandingtheuserjourney

PhotoElicitation:Discoveringunmetneedsthroughstorytelling

Listening&Recording:Gettingthemostoutofinterviews

MindMapping:Makingconnectionstounderstandthewholeperson

SubjectProfiles:Synthesizinganinterview

DiscoveryExchange:Makingconnections&buildingaframeworkfordataanalysis

MotivationalMapping:Searchingfordeepermeaning

Need-Mining&Analysis:Turningsoftdataintoharddata

NeedArticulation:Definingaplatformforinnovation

NeedValidation:Dimensionalizingtheopportunity

Personas:Creatinghumanarchetypes

CurrentJourney:Contextualizingtheopportunitythroughstorytelling

DesignCriteria:Synthesizingtheprinciplesforsolutiondevelopment

5GEAR2:CONCEPTVISUALIZATIONREFRESHINGYOURFUTUREVISION

Envisioningnewpossibilitiestakescollectiveimagination.HereisastoryaboutateamofdedicatedhealthcareprofessionalswhoweregiventhelicensetodreambiginGear2.28Theircollectivevisionplantedtheseedsofacomprehensiveredesignofthepatientexperienceinwhatwasalreadyaworld-classhospital.Whilethisexample,likethatinGear1,focusesonhealthcare,onecanimaginethisasanyserviceexperienceinwhichcustomerneedscanbebettermet.Nomatterwhatbusinessyouarein,takingtimetoask,“Whatif?”andengagingothersinenvisioningnewpossibilitieswilldrawyourenterpriseforward.

ThePrincessMargaretHospitalStory:TurningLostTimeintoFoundTimeTheChallengeManagingcancerisaphysicallyandemotionallydrainingjourneythattoomanypeoplehavetoendure.Whenyourlifeisatrisk,youandallthoseclosetoyouareacutelyawareofhoweveryminuteofeverydaypasses.Facedwithtoughdecisionsandgruelingtreatments,thelastthingpatientsneedisanexperiencethatcanheightentheiranxiety,diminishtheirself-worth,andturntheirjourneyintolosttime.Thedesiredexperience?Oneofhopefulhealing.

Thatwastheinspirationin2008,whenPrincessMargaretHospital(PMH)inTorontodecidedtodreambigandcreateabetterhealingjourney.Theredesignofthephysicalspaceofitschemotherapytreatmentdepartmentofferedanimportantopportunitytobettermeettheneedsofpatientsandenhancetheirexperiencewhenundergoingcancertreatment.Normally,withinthefinancialconstraintsofapublichealthcaresystem,envisioningahospitalasaFour

SeasonsHotelwouldbeastretch,butthatdidn’tconstrainthisteamofvisionaries.Thechallengewasthreefold:one,createapatientexperiencethatwouldleadtobetterhealthoutcomes;two,dosowithaneyetobeingoperationallyefficientandresponsibleinapublichealthcaresystem;andthree,engageabroadbaseofstakeholderswhocouldcontributetoarenewedvisionforpatientcareandhelpadvancethecauseatPrincessMargaretHospital.Creatingabetterexperienceandvaluefortheenduser,livinguptofinancialresponsibilities,andenlistingstakeholdersupportareoftenthepillarsofsuccessforanymeaningfulundertaking.

TheBreakthrough

TheGear2breakthroughforPMHwasaunifiedrefreshofthepatientexperience,fueledbythemedicalstaff’sintrinsicmotivationanddevotiontoworld-classpatientcare.AswiththehealthcarecompanydescribedinGear1,theprocessbeganwithabroadscanofthecurrentexperience.Inthiscase,mappingthepatientjourneybothinsideandoutsidethehospitalvisitgaveparticipantsaholisticpictureofpatientneedsinthecontextofday-to-dayliving.Researchrevealedunmetneedsaroundreducinganxiety,empoweringpatients,andturningwhatwasfelttobe“losttime”into“foundtime”intheirjourneyofhopefulhealing.

Thesolutioncameaboutbyengagingabroadbaseofstakeholders,whoconceivedanewvisionforpatientcare.Buildingontheidentifiedpatientneeds,personas,andadeeperunderstandingofthepatientjourney,twentystaffatPMH,includingoncologists,pharmacists,nurses,researchers,andadministrators,participatedinagroupideationsession.Wedividedthemintomultidisciplinarygroupsandassignedeachapatientpersonaandjourneyframework.Weaskedthemtothinkofsolutionsthatwouldimprovethetreatmentexperiencefortheirpersonas.Toencouragethebroadestpossiblepoolofideas,participantshadcarteblanchetoimaginenewpossibilitieswithoutconstraints.Forinstance,weaskedthemtoconsidermetaphorsandanalogiestootherindustries(e.g.,hospitality,travel,thearts,healthandwellness,virtual/onlineservices,etc.)asinspirationfortheidealpatientexperience–turningthe“losttime”patientsfeelwaitinginahospitalinto“foundtime”thatcouldhelpthemfeelengagedandproductiveintheirhealingjourney.

Inaspanofninetyminutes,staffgeneratedmorethan300ideas,whichincludedconciergeservices,cafes,first-classseating,Zengardens,andrelaxationpods.Whilemanyoftheideasseemedfar-fetched,thegroupsrealizedthattheintentbehindthemcouldpotentiallybepreservedandtranslatedinto

morefeasibleideas.Forexample,oneteamdrewanalogiesbetweenpatienttreatmentsandflyingonanairline.Somepatientshave“short-haul”treatments(e.g.,lessthansixtyminutes),whileothershavelong“transatlantic”treatments(e.g.,morethanfourhours).Theteamdrewinspirationfromthisandenvisionedwaystoenhancecomfort(e.g.,adjustableseating),entertainment(e.g.,in-flightactivities),andproductivity(e.g.,webaccess,workstations).Thisledtheteamtodevelopapatientexperiencearoundcomfortingtreatmentpods,accesstoinspirationsandactivitiestokeeppatientsengaged,andvisionsforanever-before-seen,idealchemotherapychairthatcouldbedesignedoneday.Somegroupsfocusedontechnology-basedsolutions(e.g.,websites,personaldevices),whileothersdevelopedtheconceptofaservice-orientedsupportsystem.

Wealsoaskedtheteamstovisualizetheirideasintheirbrainstorming.Insteadofwordsonpaper,weencouragedparticipantstodraw,sketch,ormapouttheirconcepts.Thisexercisemadetheideasmoretangible,allowingformorerobustdiscussionandconcreteideadevelopment.Thebrainstormingsessionledtoseveralnewpossibilitiesforthenewtreatmentfacilityandpatientexperience.Thesolutionsdidnotrelysolelyonthetreatmentspacebutalsoonthepurposefuldeliveryofpatient-orientedservices,activities,andinformationwithinthehospital,aswellasservicesthatcouldbeaccessedanddeliveredfromhome.

Withsomanyexcitingpossibilities,thishugebankofideaswassynthesizedintorough,conceptualprototypesoftheidealpatientexperienceandpresentedbacktohospitalstaffandpatientsintheformofvisualstoryboards.Thesestoryboardswereusedtowalkvariousstakeholdersthroughanidealizedyetrealisticpatientexperience.Staffatalllevelsopenlydiscussedtheprosandconsoftheprototypesandsuggestedimprovementsforeachconcept.Theprototypeswerefurtherrefinedandevaluatedinaniterativefashion,untiltheidealpatientexperiencewasfullyformed(Figure11).Byvisualizingthepatientexperienceinaroughunfinishedformat,staffandpatientsweremoreopentocontributingfeedback.Theactivesolicitationoffeedbackbyhospitalstaffandpatientsgaveallstakeholdersagreatersenseofownershipinthefinaloutcome.

Fig.11EnvisionedPatientJourney

TheOutcome

Thiscasebringstolifewhatopenandimagination-richcollaborationcanyield.Ratherthansimplyrepresentingchange,thisrenewedvisionsignifiedmeaningfulandsharedprogress.Thisundertakingnotonlyproducedhundredsofinspiredideas,italsoengageddozensofimportantstakeholdersinthecreationofacomprehensivenewpatientexperienceandaninstitution-widecommitmenttoprogresswithpurpose.Fromamanagementperspective,itunderscoredwhatreallymatterstopatientsandwhatdoesnot.Thatledtoanimportantre-prioritizationofcapitalexpenditures,anewvisionforpatientcare,andoperationalefficiencies.

Thisnewvisionservedasalighthouseinamajordonorcampaignthatraisedfundsforatransformationalbuild-out.Itformedthebasisofadesignbriefforthearchitectswhoturnedtheideasintospace.Itkeptaspirationshighforallparties,includingdonors,patients,andstaff.Theresearchandvisionforthisprojecthasalsocontinuedtoserveasanimportantreferencefordecisionssincetheprojectbeganthreeyearsago.Afterongoingiterationofideaswithbroadengagement,thebuild-outofthenewchemotherapytreatmentcenterwascompletedin2012.

Thisstorydemonstrateshowcollaborationcanleadtobiggerideas,how

engagingabroadgroupofstakeholdersinstillsasenseofownershipandpride,andhowthisengagementleadstotractioninadvancingbigideas.Italsoshowshowgivinglicensetodreamcanleadtobigger,betterrealitiesthatcreatetransformationalvalue.

OnceyouhaveframedtheopportunitytocreatenewvaluethroughGear1,youarereadytorefreshyourvisionforthefutureandimaginenewpossibilities.Thisisnotthetimetofocusonincrementallyfixingorextendingwhatyouhaveinhand;thisisyouropportunitytostepoutofyourcurrentparadigmanddream!

“Theprojectallowedustobringpeoplefromacrossthehospitaltodesignanewchemotherapysuitewiththepatientinmind–andwithrealpatientfeedbackontheirexperienceofcare.Doctors,nurses,researchers,clericalstaff,volunteers,management–manyofwhomhaveneverworkedtogetherbeforewereabletoshareideas,buildsomethingtangible,andfeelliketheyhadastakeinthefinaloutcome.”SARAHDOWNEY,VICE-PRESIDENT,PRINCESSMARGARETHOSPITAL(2008–11),UNIVERSITYHEALTHNETWORK,TORONTO,CANADA

Gear2isaboutcollaboratingtogeneratefreshideasandnewwaystodeliverabetter,moresatisfyingexperiencefortheenduser.Asyoucreateyournewvision,youwillcueofftheunmetneedsarticulatedinGear1,withnopreconceivednotionsofwhatwillworkandnotwork.Don’tworryabouthowyouwilldoit.Everyenterpriseneedstoreconciledreamswithoperationalrealities,butthatcanwaitforGear3.

YourGoalinGear2Torefreshyourvisionofthefuture,seeingpossibilitiesforcreatingvaluethroughanew,high-value,seamlesslyintegratedexperiencefortheenduser.AfteriteratingthroughGear2,thedevelopmentteamshouldcollectivelyfeelexcitedandbelievethat“ThisisBIG!Ifwecandeliverthis,wewouldreallychangethegame.”

Thebalanceofthischapterhighlightskeyactivities,outcomes,and

developmentprinciples;providestipsontheroleofdataanalysisandvalidation,aswellasthemindsets,methods,andthinkingmodesthataremostcritical;andfinisheswithaninspiredinterviewthatbringsimportantprinciplestolife.Relatedtoolsareincludedinparttwo:ToolKit.

Gear2:Activities&OutcomesFigure12showssomeoftheactivitiesyouwillundertake,alongwiththemostvaluableoutcomesofGear2thatwillbringshapetoyourfuturevision.ThiswillformthebasisfortranslatingyourbigideasintosustainablevaluecreationinGear3:

UserExperience:Astep-by-stepmultidimensionalandseamlesslyintegrateduserexperiencethatshowshowyourvisionwillcometolifethroughtheeyesoftheuser–toensurethateverygapisclosedandeachcriticalcomponentisdefined.

SolutionComponents:Everynewexperienceincludessomecriticalcomponentsthathavetobefurtherdevelopedthroughaproperdesignbrief.ThiswillinformyourinvestmentsandpartnershipsinGear3.

FutureVision:Avisionarystoryofwhatyourrolewillbeincreatinguniquevaluefortheusersofyourproductorservice.Itwillserveasyour“NorthStar.”

GameChangers:Criticalaspectsofyourvisionthatwilladddistinctvaluetopeople’slives.

Divergentactivitiesincludethecollectiveexplorationofanarrayofnewpossibilities.Thatcallsforimaginationandcollaboration.Itisahighlyiterativeprocess–nothingiseverclosetoperfectionoutofthegate.Itcangetmessy,butitcanbehighlyproductiveandfunifyouputyourimaginationandteamspiritaheadofyourfearsandego.Convergentactivitiesentailfeedbackandco-creation,andminingthroughyourplethoraofideas,figuringouthowtheycombinetoformabiggersolutionandascertainingwhatcreatesthemostvalueforyourenduserandotherkeystakeholders.

Fig.12Gear2:ActivitiesandOutcomes

KeyPrinciples:DaretoDreamThisisthetimetosuspendyourcurrentrealitiesandfocusentirelyoncreatingtheultimateexperienceforyourenduser,andotherkeystakeholders.Stepawayfromthebusinessyouareintoday,howyoucurrentlyoperate,andthecompetitionnippingatyourheels.Theonlyelementsofyourpreviousworkthatyouwillbringforwardatthispointareyourcollectionofneeds,personas,anddesigncriteria.Itistimetodream!

Herearesomeprinciplestokeepinmindasyoumovethroughthisphase.

Putyourprimarycustomerorstakeholderatthecenterofdevelopment.ThrougheverystepofGear2,itisimportanttokeepauser-centricfocus.TherewillbelotsoftimeinGear3tofigureoutwhatitmeanstotheenterprise.InthecaseofPMH,thepatientremainedfrontandcenterinthedevelopmentprocessthroughoutGear2.Whiletherearemanystakeholdersthatmatterindeliveringthesolution,thepatientistheirshared“customer.”Theendgoalistocreateasolutionsystemthattheenduser(inthiscasethepatient)willappreciate.That’severystakeholder’ssharedpurpose.Doctors,nurses,andfamilymemberswillallplayanimportantroleincaringforapatient,soconsideringtheirneedsindeliveringnewsolutionswillalsobeimportant.

Giveyourselfthelicensetodreambig!Thisisthetimetothinkbigwithoutrestraint.Forallofthemission-criticaldutiesoftheirday-to-daywork,thePMH

teamallowedthemselvesafewhourstodream–anddreambigtheydid!Rememberingthateventhemostfar-fetchedideashavesomeinherentvaluewillkeepyoufromreconcilingdreamswithrealitytooearlyintheprocess.VisionarieslikeSteveJobsofApple,RichardBransonofVirgin,IsadoreSharpofFourSeasons,andEarlBakkenofMedtroniccertainlyallowedthemselvestodreambig.

“Dreamshaveawayofpredictingandprecedingreality.”EARLBAKKEN,CO-FOUNDER,MEDTRONICINC.

Alwaysremember–everyonedesigns!Everyonehasthecapacitytoenvisionnewpossibilities,nomatterwhattheirpositionintheorganization.Ahealthy,open,andcollaborativeteamdynamicwillfuelcreativityfromeveryparticipant.Herearesomekeythingstokeepinmindasyoutapintoyourcollectiveimagination:

Harnessthecreativityofeveryoneontheteam.Themoreideasyougenerateandconsider,themoreyouwillgetpasttheobvioussolutions.Thatiswhyyouneedeveryoneontheteamengagedinthecreativeprocess.

Therearenobadideas.Infact,badideasareoftenthecatalysttobrilliantbreakthroughs.

Setyouregoaside.Inasharedquest,thereisnoroomforpersonalagendasandegos.Ifyouarewillingtobewrong,youwillbeamorevaluablecontributortosuccessintheend.

Thisisahighlycollaborativeprocess;youwillgetthemostrobustsolutionsifyouengageeveryonewhobringsauniqueperspectiveandexpertisetothetable.Encouragethemtothinkoutsideoftheboxandletthecreativejuicesflow!

Designthesolutionasamultidimensionalexperience.Toensurethatyoucreateacomprehensiveandbreakthroughexperience,considerhowbettertomeetneedsthroughmanydimensions.Oftentimes,anenterprisewillfocusonnewproductsorbetterservices,butthoseareonlypartofawinningexperience.Thinkalsoabouttheneedsdefinedmorebroadlybytheactivityandhowthoseneedsmightbesatisfied.ThefollowingPOEMSframework(Figure13)capturesallthecomponentsofthesolutionthatyoucouldultimatelydesign:29

People:Whoarethepeoplethatmighthelptheenduser?InthecaseofPMH,whatrolecouldanurseplaycounselingthepatient?

Objects:Arethereproductsorobjectsthatcouldsatisfyneeds?InthecaseofPMH,couldadevicehelppeopleaccesstheinformationtheyneedmorereadilythanhangingaroundthenursingstationwithacrowdofotherpatients?

Environments:Whatplacesmightbekeytodeliveringtherightsolutionintherightplace?InthecaseofPMH,wouldmorenaturallightandnaturecreateagreatersenseofcalmandclearwayfindingreduceanxiety?

MediaandMessages:Whatinformationwouldbehelpfulandhowbestshoulditbedelivered?InthecaseofPMH,couldpatientsaccessschedulinginformationonlinefromhome,ratherthanhavingtocallthehospitalandbeputonhold?

Services:Whatkindsofsupportserviceswouldenhancetheexperience?InthecaseofPMH,couldwirelessaccess,computers,andmoviesfillthevoidoflosttimeandhelppatientsfeelmoreengagedandproductive?

Fig.13POEMSFramework

Intheexplorationphaseofsolutiondevelopment,eachoneofthesedimensions

iscriticaltodesigningaseamlesslyintegratedexperience.

ExploreLOTSofideas.Exploringandvisualizinglotsofideasintheearlystageswillkeepyoufromgettingstuckonperfectingoneideaearlyonandgiveyoulotsofoptionstoexplorethroughtheco-creationphase,whenyouseekfeedbackfromusersandotherstakeholders.Whiletheideationphasecangeneratehundredsofideas,youwillwanttoconsolidatethemintobigger,moreholisticconcepts.Ialwayssuggestbuildingoutthreedifferentconceptstokeepyourconsiderationsopenforlearninguntilyouconvergeandconsolidate.Throughcontinuousiterationinlow-cost,low-resolutionprototypesandfeedback,youwillgainmoreinsightintowhatresonateswithyouruserordoesn’t.Youwillmovefromavolumeofpossibilitiesthroughafeedbackandassessmentprocessthatwillfocusyourdevelopmentontheideasthatcreatethemostvalue.Asyouidentifythemostcriticalcomponentsofyouridea,youwilldevelopbriefstotransformideasintomoreconcreteelements.Thisiterativedevelopmentprocesswillleadyoutoputtingtheelementswiththemostvalueintothemarketasyourampup.Considerthefollowingprogressionfromvolumeofideastovalueofideas(Figure14):

Fig.14VolumetoValue

Visualizekeycomponentsandshowhowtheyworkwithintheexperience.Weoftenexpressourselvesinwords,butwordshavedifferentmeaningstoeachperson.Visualizationismoreuniversal.Itentailsdrawingpicturesandmakingprototypestotranslateanabstractnotionintoaconcreteideaandanswerthequestion,Whatmightthatlooklike?Thathelpsstimulatemoreproductive

dialoguewithintheteamandwiththosewhosefeedbackyousolicit.Appreciationandthoughtfulconversationaroundfragilenewideaswillensurethatyouarebuildingoffeachother’sthinkingversuscreatingalotofverbalnoise.

Prototypeinlowresolutionandresistperfectionearlyon.Highachieversoftenwantthingstoberightassoonaspossible.Earlyperfectionismwillslowyoudownandholdbackbreakthroughthinking.Prototypingisawaytorepresentideasinamoretangibleformtogetearlyfeedback.Makingmistakesandlearningfromearlyprototypesisallpartofthecreativeprocess.

Mostimportantly,don’tspendalotofmoneyonearlyprototypes.Instead,useyourimaginationtotransformeverydayitemsintorough-and-readyprototypes.Youwillbesurprisedathowtheycanstimulatethinkinganddialogue.Itisabetteruseofyourmoneytoexplorelotsofbigideasatanext-to-nothingcostthanitistospendalotofmoneyonexpensivemock-upsearlyinthedevelopmentprocess.

Engageendusersandotherstakeholdersearlyandoften.Co-creationcallsforengagingothersintheprocessandembracingfeedback,evenwhenitisnotpositive.Doingsowillyieldgreaterlearningandleadtomorerobustideas.IenjoyedworkingwithDavidKelleyofStanfordUniversitybecauseheshowsusershisideas,readieshimselfwithpenandpaper,andthensayswithenthusiasm,“Tellmewhatyoulike,butalsoeverythingthat’swrongwiththisideasoIcanfixitforyou.”30That’sthetruespiritofco-creation.Inallofmyworkwithlow-resolutionprototypesasameansofstimulatingdialogue,Iamalwayssoamazedtoseehowimaginativetheusersarewithrough-and-readyprototypesandhowwillingtheyaretohelpyoumaketheideabetter.

Visualizingnewpossibilitiesandsolicitingearlyfeedbackiscriticaltoproductivity,learning,andprogressinthedesignprocess.Whenfeedbackisreserveduntilthetimeafinalandfullyformedproductisdeveloped,itismoredifficulttoincorporateimportantandsignificantchanges.Frequently,therequestforfeedbackisreallyjustacourtesyandformality,andifitresultsinchanges,theytendtobeincremental.Byengagingusersandotherimportantstakeholdersinthefeedbackprocessearlyandoften,youcangleanimportantinsightsbeforecommittinganysignificantinvestmentsorresources.Thisallowsforimportantearlycoursecorrections.

InthecaseofPMH,wepresentedearlyprototypestopatientsandasked,Whatworkshere?Whatdoesn’t?Whatcouldbebetter?Sharingprototypeswithpatientsnotonlyprovidedvaluablefeedbackontheconceptsthemselves,italso

stimulateddialoguethatrevealedevenmoreinsightsintotheirpointsofpainandwaystoalleviatethem.Thefeelingthattheirentireliveswereputonholdwhiletheyfocusedontreatment,combinedwiththelongwaittimesinaCanadianhospital,madeforafairlybleakpatientexperience.Whilethehoursspentintreatmentorwaitingfortestresultswerenevergoingtogoaway,theabilityofpatientstoconvertthoseseeminglywastedhoursintosomethingmoremeaningfulwouldsubstantiallyimprovetheirexperience.Forexample,insteadofstaringatablankwallortelevisionscreen,patientscouldhaveaccesstoentertainmentorworkspacesthatcouldhelpthemfeelmoreengagedandproductive.

Inthatcase,inspirationfrompatientstoriesandfeedbackhelpedtheteamrealizehowthehospitalpatientexperiencecouldbecomeanenablerofintellectual,mental,spiritual,andsocialsupport,ratherthanonlymedicalcare.Thisledtosubsequentconceptsthatwouldallowpatientstocontinue,evenenhance,theirlivesduringtheirtimeinthehospital.Ideasincludedsocialandprivaterecoveryareas,workandeducationresources,engagingactivities,inspirationalcues,peacefulandnaturaldesigns,andcomfortablefurniture.Patientscouldalsosupportotherpatientsintheirjourneythrougha“chemobuddy”programtogivethemasenseofpurposeandself-worth.

Iterate.Iterate.Iterate.You’llnevergetthesolutionperfectoutofthegate.ConsidertheDysonvacuum–morethan5,000iterationsuntilitwasperfected!31You’llneedtoexplore,experiment,recast,andrefineaspartoftheongoingprocessofcreatingandlearning.Thisisthemessypartandcanchallengethosewhowanttocompletethejobtoosoon.Theprocessofexplorationandreconfiguringsolutionsinresponsetouserfeedbackisallpartofaproductivedevelopmentprocess–bothinyourinternallabandlateroninthemarketplace.Asyoumovethroughtheprocessoffeedbackandrefinement,youwilltransitionfromvolumeofideastovalueofideas,asnotedearlier.

Ascertainthegamechangersandconsolidateyourvision.Withlotsoffeedbackandlearninginhand,youcanascertainthegame-changingaspectsofyourvision,eitherthroughrigoroussynthesisofyourlearningtodateormorequantitativelythroughscaledmethodsandsurveys,asnotedinthenextsectionofthischapter.Thiswillenableyoutoconsolidateyourvisionandwriteaproperdesignbrief,asplottedinFigure14,theVolumetoValuediagram.

InthecaseofPMH,theworkfromGears1and2wereusedasthebasisforanarchitecturalbrief.That’swhendesignexpertscanbegintotranslateavisionintorealityandcontinuetheiterativeprocessofdesignandbuildout.

BuildingaBusinessCase:DataAnalysis&ValidationYourGear2workshouldbebasedonasoundanalysisandvalidationofneeds.That’sthemostimportantstartingpointforimaginingnewpossibilities.Soanyideabasedonagoodfoundationofunmetneedsshouldbeconsidered.ThroughoutGear2,youwillbebrimmingwithamultitudeofnewideasonhowtosolvepeople’sdilemmas.

Butyoumightbeasking:Whichelementsofourideascreatethemostvalue?Howdoweknowwhattotakeforward?Justashumanstoriesareapowerfulsourceofmotivation,ideascanbequitecompelling.Butifimportantstrategicchoicesandbigcapitalinvestmentsareonceagainontheline,youmightneedmorevalidationdatatobuildyourcase.

Toadvanceyourideas,herearesomesuggestionsforscaledfeedbackandvalidation:

Capitalizeonalarge-scalegatheringofstakeholders.Ifthereisagatheringofimportantstakeholders,youcanusethisopportunitytoconductalarge-scalefeedbacksession.Thatletsyoutapintovaluablefeedbackandheightensstakeholderengagement.InthecaseoftheCanadianBarAssociationreferredtointheinterviewinchapter2,theteamrolledoutaseriesofin-personmeetingsacrossCanadafromeasttowesttosolicitinputfromlocalmembersacrossthecountry.Fortheprojectonhealthcarestandards,theorganizationseizedtheopportunitytosolicitinputfrommorethan300accreditationsurveyorsatanannualmeeting.Thisfeedbackhelpedfurtherenhancesolutionsandascertainthegame-changingelementsoftheenvisionedfuture.

Buildaplatformforhigh-volumefeedback.Ifyoureallywanttoscalefeedback,youcancreatea“virtualcommunity”toinviteotherstoweighinonyourideas.Forexample,intheCanadianBarAssociationproject,afterthein-personmeetings,weopenedupavirtualcommunityplatformthathadthenineconceptsuploadedinstoryboardformandaskedthebroadermembercommunityinthatgeographytoweighinonwhattheylikedanddislikedabouttheconcepts.Theengagementandinputofover2,000lawyersfromcoasttocoastnotonlyboostedengagement,itgavethedevelopmentteamimportantfeedbackonwhatassociationmembersfoundmost,andleast,valuableabouttheconcepts.

Runsmall-scale,measurableexperimentstotestassumptionsandhypotheses.Runningmeasuredexperimentsthatisolatecriticalassumptionsand

riskfactorscanhelpimprovesolutionsandmitigaterisk.Whileyoucancertainlyjust“trythis”intheearlyphasesofiteration,itishelpfultotakeamoremeasuredand“scientific”approachtoexperimentationasthestakesrise.ArevelationI’veheardexpressedbydevelopmentteamsisthat“experimentationisnotaboutjustwingingit;it’saboutgatheringevidencethatbuildsasoundcaseforinvestmentinnewideas.”

Therearemanywaystobuildconfidenceinthepotentialofyourideastomeetunmetneedsandtodiscoverwhichelementscreatethemostvalue.Whilethereispowerinthegestaltofbigideas,thereisalsomeritinknowingwhichelementsarecreatingthemostvalueandhowtomitigaterisk.

Everyonelovesabigidea.Theyalsoappreciateathoroughprocessofevaluationandvalidationtojustifythetimeandinvestmentbigideasoftenneedtoberealized.

ImportantMindsets,Methods,&ThinkingModesMindsetMatters:Firstandforemost,neverletgooftheempathyyouestablishedinGear1–that’syourongoingjetfuelandisimportanttotakinginfeedback,particularlyfromtheenduser.Inthecreativeprocess,positivitycreatesthebestconditionsforexploringnewideas.Thatmeansbeingbothopentotheideasofothers,opentonewideasthatarenotwithinthescopeofyourcurrentbusinesstoday,andopentofeedback,nomatterhowbrutalitmightbe,intheearlyphasesofdevelopment.It’scriticaltohaveacan-doattitudethatembracesthenotionIfit’srightfortheuser,wewillfindaway.Evenifitisoutsideyourcurrentbusinessparadigm,butcreatesvalueforcustomers,maybeitisabusinessyoushouldbein.Thereareafewthingsyoumustresistthinkingorsaying,becausetheywillonlydiminishyouroutcomes.Herearesomeclassicidea-killercomments:

“We’renotinthatbusiness.Wehavenoideahowtodeliverthat.”

“That’stotallyabsurd.Ifwedothat,we’llallgetfired.”

“That’salameidea,butIhaveabetterone.”

“Oursalespeoplewouldshootusifweeversuggestedthat.”

“Wedidthatthreeyearsago,anditfailed.”

Byopeningupthedevelopmentprocesstoawideanddiversifiedteamandlearningtoconstructivelytakeinfeedback,yourideaswillbecomeevenmorevaluable.Plus,everyonewillfeeltheyhavehadanopportunitytoputtheirownthumbprintonthefuture.

MostCriticalMethods:Gear2isverymuchavisualizationexercise:youtakewhat’sinyourheadandmakeittangible–inpicturesandprototypes.That’sthemosteffectivewaytotranslatetheabstractintosomethingconcretethatyoucanworkwithandsharewithothers.Itensuresthatyouallhavethesame“movie”–yourteam,yourco-creators,andthoseyouwillneedtobringonboard.Withconcreteideastoworkwith,theprocessofco-creationwillhelpadvanceyourideastoahigherlevelofvalue.

RegulatingYourThinkingModes:Thisisthegearinwhichyouhitthegaspedaloncreativityandgenerativethinking,especiallyinthedivergentphaseofyourwork.Duringideageneration,prototyping,andfeedback,itisalsoimportanttomakeanefforttounderstand:Whatideaisbeingexpressed?Whydoestheuserlikeornotlikethatidea?Asyoutransitionintotheconvergentphase,itisimportanttoputonyourcritical-thinkinghatandask,Whatcreatesthemostvalue?Whatcanweletgoof?Therewillbetimeswhenyouhavetomakesomedecisionsonthatandmoveforwardwithyourbestsolution.

Anchoringyourinnovationpursuitsintheneedsofpeopleanddesigningexperiencestosurpriseanddelightcreateenergyandmomentum.Atthesametime,youhavetoleveragenewideasandorganizationalcapabilitiesforstrategicadvantage.ThefollowinginterviewwithvisionaryentrepreneurSirRichardBransonhighlightstheremarkableongoingjourneyofVirginandtheimportanceofintegratingtheprinciplesofall3GearsofBusinessDesign,frominsighttoideas,totestingyourwayforward,toscalingup.Togethertheseadduptoongoingbusinesssuccess.Hisstoryisaperfectpreludetothenextchapter,onstrategyandactivation.

InterviewwithSirRichardBransonFounderandCEO,VirginGroup

“Virginhasmadeitsnamebybreakingintonewmarketsandofferinggreatvalue,superiorservice,afreshapproach,andabitoffun.Whenweassessnewbusinesses,thefirststepistosubmiteverybusinessideatoour“brandtest.”Weareconstantlypresentedwithnewandexcitingopportunitiesthatmightmakealotofmoney,butiftheyfailthebrandtest,wemoveon.Wealsothinkthatthereislittlepointinenteringanewmarketunlessitprovidestheopportunitytoreallyshakeupanindustry.Almostallournewventurescomeaboutfromourthinkingupaproductorservicethatwebelievepeoplereallywant.LookingbackatthelaunchesofVirginAtlantic,VirginActive,andVirginMobile,I’mremindedthatwehadaclearvisionofwhatthecustomerwantedandhowwewoulddeliverit(withasenseoffun).

InthecaseofVirginAtlantic,weofferedgreatservice,whichmeantthattravelersreceived–amongmanyotherinnovativeservices–extratouchessuchasonboardmassagesandseat-backTVscreens.AtVirginActive,wefocusedonbuildinglarge,familyfriendlyhealthclubswithbiggymsandswimmingpools,andattentivestaff.ForVirginMobile,customersgotaservicethatdidnotrequiresigningupforonerouscontractsandinsteadgotflexibleplansandadirectlinktoentertainmentandmusic.Thisclarityofpurposeandexcellentcustomercarehelpedustosucceed.

You’llnoticethatmakingaprofithasn’tenteredthepictureyet.It’srareformeortheteamtoconsideronlythemoneythatcanbemade.Ifeelit’spointlesstoapproachinvestingwiththequestion,“HowcanImakelotsofmoney?Wemustbringinthenumbersguysandworkoutsomebusinessplans.”Theconsultantswillsayyourideawillwork,whiletheaccountantswillprovethatitcannot.Noonewilleveragreeonexactlyhowtomakemoney.

Thisbringsmetoasecrettolastingsuccess:securingyourcustomers’trust,whichshouldbepartandparcelofyourdifferentiationandmarketing.AtVirgin,wedothisbyrelyingonopennessandsimplicitywhenwecommunicatewithourcustomers.Sincewe’dcreatedcompanieseveryoneonstaffwasproudof,wewerealldeeplyconcernedaboutqualityandcustomer

service,andourmarketingfocusedonwhythebusinessesweredifferentandspecial.

Ourabilitytoadaptquicklytochangeshashelpedmitigatereverses.Youmustbequicktoacceptthatsomethingisnotgoingwellandeitherchangetackorclosethebusiness.AlthoughIbelieveintakingrisks,Ialsobelievein“protectingthedownside.”Thismeansworkingoutallthethingsthatcouldgowrongandmakingsurethatallthoseeventualitiesarecovered.Wehavecomeclosetofailuremanytimes.Mostentrepreneursskirtclosetoit.InearlyfailedwhenVirginwasinitsinfancy,Inearlyfailedintheearly1980s,and,ofcourse,Ihavenearlydiedmorethanoncetryingtoachieveworldrecordsforboatingorballooning.Butthroughacombinationofluckandplanning,bothVirginandIarestillhere.Asanentrepreneur,youlearnquicklythatthere’snosuchthingasafailure.

Asuccessfulbusinessisn’ttheproductorserviceitsells,itssupplychain,oritscorporateculture:itisagroupofpeopleboundtogetherbyacommonpurposeandvision.InVirgin’scase,weflythesameplanesasourcompetitors,andourgymsoffermuchofthesameequipmentasothergyms.Whatseparatesourbusinessesfromthecompetition?Ouremployees.Thebest-designedbusinessplanwillcometonothingifitisnotcarriedoutbyanenthusiasticandpassionatestaff.Thisisespeciallytruewhenthingsgoslightlywrong;afriendlyandproactiveteamcanoftenwinpeopleround,avertingapotentialdisasteroreventurningittoyourbenefit.

WeatVirginprideourselvesontryingtofindthefuninourbusinesses,bywhichImeanthatwetrytoensurethatbothourstaffandcustomersfeelarealsenseofwarmthandaffection.Ihaveledfromthefrontonthis–dressingupincostumes,tryingallmannerofstunts(notallgoing100percentright!),andgenerallyshowingthatIdonottakemyselftooseriously.Myapproachwillnotworkforallbusinesses,butkeepingasenseofperspectiveandnotallowingmanagementtobeseenasaloofwillhelpkeepyourstaffonside.Tofosteremployees’senseofwarm,personalinterestincustomers’needs,it’scrucialtoensurethattheyenjoywhattheydoandareproudofthecompany.Thisisvitaltobuildinglastingsuccessandensuringyourservicehasanedge

overthecompetition.32”

LISTOFTOOLS&TIPS

Thefollowingtoolsandtipsareprovidedinparttwotohelpexplore,assess,andfocusyourthinking.

Ideation&ConceptHarvesting:Exploringnewpossibilities

RolePlaytoIdeate:Empathizingtogeneratesolutions

Metaphors:StimulatingImagination

IterativePrototyping:Makingtheabstractconcrete

ExperienceMapping:Designinganew&idealexperience

Storyboarding:Capturingthestoryinkeyframes

RolePlaytoAdvanceIdeas:Playingouttheexperiencetoclosethegaps

In-PersonFeedback:Solicitingfeedback&co-creating

VirtualFeedback:Scalingfeedbackthroughtechnology

6GEAR3:STRATEGICBUSINESSDESIGN&ACTIVATIONFORMULATINGASTRATEGYTOWIN

TranslatinganambitiousvisionintoadistinctandcompellingbusinessstrategyisacriticalaspectofBusinessDesign.Whatfollowsisthecontinuationofthestorytoldinchapter3abouttheAccreditationCanadateam,whichusedBusinessDesigntoworkthroughallthedevelopmentstepsintheirjourneyofstrategictransformation.ThisstoryillustrateshowBusinessDesignleadstoadistinctandcompellingstrategy,aswellasaplantoturninsightsandideasintofuturevalue.33

HealthStandards:AStrategytoCreateNewValueTheChallengeAspresentedinchapter3,AccreditationCanada(AC)hadplayedapivotalroleinensuringthatvirtuallyeverypatienttouchpointinthehealthcaresystemmethighstandardsinpracticethroughacodifiedprocessforstandardsdevelopmentandassessment.Inmorerecentyears,AccreditationCanadaInternational(ACI)hadgainedtractionbyleveragingtheknow-howofACandapplyingittointernationalhealthsystems.Atthesametime,thelandscapewasdramaticallyshifting,whichcalledforaradicalstrategictransformationthatwouldmaximizethevaluetheenterprisecouldbringtohealthcaresystemsinthefuture.Theenterpriseneededtoalignitsfuturestrategywithemergingtrends,considerthemanyestablishedandemergingplayersinthisdynamicarena,recognizeabroadersetofstakeholders,andstrategicallyleveragethecombinedcapabilitiesofACandACIoperatingunits.Theoverarchingambition:connecttheplayersandpracticesacrossthehealthcaresystemtoimprovepatientoutcomes.

Gear1entailedstory-basedinterviewswithmorethan150patients,providers

atalllevels,health-systemsleaders,policymakers,partners,andinfluencersaroundtheworld.Thisprocessrevealedseveraluniversalneeds,includingcenteringstandardsonthemostcriticalfactorsthathelpedallpartiesby“makingiteasiertodotherightthing”andlinkingstandardsanddecision-makingtobetteroutcomes.DesigncriteriabasedonlearningfromcontextandGear1requiredthatallstandardsinitiativesinthefuturewouldneedtodothefollowing:

Puttheperson(andtheirhealth)atthecenter.

Activelyconsiderandengagetherightstakeholdersintherightway.

Cultivatetrustandaccountability.

Connectpeople,actions,andinformationacrossthehealthcareecosystem.

Provideusefulinformationthatimprovesunderstandingandsharpensfocus.

Enabletherightactionsbytherightpeopleattherighttime.

Transparentlycommunicatethelinktobetteroutcome.

Adapttospecificneedsandsituationstocontinuallyoptimizeoutcomes.

That’satallorder,butonethisteamwasfullycommittedto.Throughaprocessofexploration,visualization,feedback,andrefinement,thetwenty-eight-memberFUELdevelopmentteamcreatedavisionarystanceontheroleoftheenterpriseinthefuture,includingconceptsthatwereexpressedthroughtheeyesofpatients,providers,andpolicymakerstoensureallpartieswouldwinthroughtheenterprise’sfutureefforts.Thisvisionincludedkeydesigncomponentsonthepeople,processes,technologyplatforms,products,andservicesthatwouldberequiredtodeliverontheirvision.

TheBreakthrough

TheenvisioningprocessinGear2formedanimportantbasisfordecidingwhichactivitiestheenterprisewouldinvesttimeandmoneyinto,identifyingthecapabilitiesrequiredtodeliverontheirvision,andmakingprecisestrategicchoices.Thesechoiceswerefurtherreinforcedthroughextensiveengagementof

employeesandtheboard,aswellasexternalstakeholders.Whatemergedwasclearalignmentonthegamechangersthatwouldmakethisenterpriseanimportantplayerinbringingaglobalperspectivetosupportingtheintegrationofhealthecosystemsanddrivingqualityandsafetyimprovements.

Bymakingtheenterprisevisionexplicitandtangible,itwasclearhowitwouldservethemarketinthefuture,whatcouldbeleveragedincurrentactivitiesandcapabilities,andwhichcapabilitiesneededtobeamplifiedorbuiltthroughinternalinvestmentandpartnerships.Theengagementprocesswascriticalinbuildingalignmentandgivingavoicetoallofthestakeholderswhoplayaroleinimprovingpatientoutcomes.

ThebreakthroughsinGear3cameinseveralways.First,thisprocessinspiredamoreexplicitdedicationtostandardsdevelopment,withthehistorical“accreditation”practiceasanimportantdimensionoftheirwork.Thisledtotheestablishmentofanewoverarchingentity–theHealthStandardsOrganization(HSO),launchedinJanuary2017.Second,thevaluepropositioncameintofocus:HSObuildsglobalhealth

servicesstandardsandinnovativeassessmentprogramssopeopleintheirlocaljurisdictionscansaveandimprovelives.Thatputpatientoutcomesatthecenteroftheirquest.Third,thestrategicfocusshiftedfromsitestosystemsandextendedtokey

stakeholdersacrosshealthcaresystems.ProductsandServicesfocusedonstandardsdevelopment,assessmentprograms(includingaccreditation),andactivationtoolsandservices.Channelsexpandedtoincludeonline,newlyformedcollaborationcenters,andcriticalstrategicpartners.Fourth,thecapabilitiesthatwouldberequired,basedonaconcretevision,

wereclear.Thosecapabilitiesdefinedinvestmentsintalent,processes,technology,andorganizationalstructures.Fromthat,managementsystemsweredefinedtosupporttheexecutionofthenewstrategy.

TheOutcome

Everyoneofthefivecriticalstrategicquestionsoutlinedinchapter1werethoughtfullyandpreciselyansweredthroughthisinclusiveanditerativeprocess.Withapowerfulvisionandstrategyforthefuture,afive-yearbusinessplanwasbuilt,activationprioritiesandinvestmentswerespelledout,andconditionsforsuccesswerearticulated,withunanimousboardendorsement.

AlongwithestablishingHealthStandardsOrganizationinJanuary2017,aPatientEngagementOfficewasestablished.Anewstructureandroleswere

established,alongwithstrategicallyalignedKPIs.Developmentinitiativeswereactivatedtocomplementthecontinueddeliveryandenhancementofstandards-centeredproductsandservicesintheimmediateterm.Newstrategicallianceshavebeenformed,withasharedaspirationof“unleashingthepowerandpotentialofpeoplearoundtheworldwhoshareourpassionforachievinghealthservicesforall.”

Transformationisatallorderandcallsforchangingwaysofworkingandcontinuallythinkingabouthowtoadvancestrategicallyandtactically.Thisrequiresagilityandalearningmindset.Withaclearanddistinctstrategy,andameasuredpathforward,HSOdemonstrateshowanenterprisecanproductivelyfocuscollectiveeffortsoncreatingtransformationalnewvalueovertime.Thisstorydemonstratesthataninclusive,rigorous,andambitiousBusinessDesigneffortcanbringclarityandalignment,tackleaformidablechallenge,andcreatenewopportunitiesformeaningfulchange.

“Transformationisnotforthefaintofheart.Wehaveapurpose-drivenenterprisefullofsmartpeoplededicatedtodoingwhatisrightforpatientsandhelpingourcustomersandpartnerssucceed.Thejourneyisjustbeginning!”LESLEETHOMPSON,CEO

Apreciseanddistinctstrategychannelsyoureffortsandinvestments,andacceleratesprogress.Thisimportantstepisoftenoneofthemissinglinksinmanyinnovationprojectsandisoneofthereasonssomanyinnovationinitiativesfailtodeliverareturnoninvestment,asnotedearlier.Gear3isaboutdefiningastrategytodeliveronyourvisionandwin.

Formany,Gear3isthemostfungearofall.ItrequiresasmuchcreativityandexplorationasGear2,combinedwitharigorousanalysisofhowalternativemodelswillplayoutfinanciallyandcompetitively.Itistheultimatedesignchallengeforbusiness-mindedinnovators.Whatmakesstrategyadesigneffortisthatyouwilluseallyourdesignmethodsandskillstocreateyourenterprisestrategy–visualization,ideation,prototyping,systemsmapping,iteration,co-creation,andstorytelling.That’swhatmakesthethirdgearbothcreativelyandanalyticallyrobust.

Gear3bringsfocusandmomentumtoyourquest.Thestrategyyoudesignwillhelpchannelyoureffortsincreatingsustainablevaluefortheenduser,othersignificantstakeholders,and–importantly–yourenterprise.Thatistheall-

aroundwin.Duringthisphase,itwillbenecessarytoanalyzefinancialsensitivitiesandpinpointrisksassociatedwiththeunknownvariablesinyourenvisionedexperienceandalternativebusinessmodels.Thisanalysiswillinformbothhowyouconfigureyourmodelandwhatlearningexperimentsyouwillneedtodesigntomitigaterisk.

Atthispointindevelopment,yourteamwillbeunitedinyourvision.Themixofexpertiseinoperations,finance,marketing,humanresources,andotherfunctionalareaswillplayanimportantroleinthisphase.Itwilltakeallofthesedisciplinestoconstructaninventiveandwell-integratedbusinessstrategyanddeliverysystem.

YourGoalinGear3Topreciselydefineyourstrategybymakingimportantchoicesanddesigningyourpathforward.Thesestepswillenableyoutofocusyourcollectiveenergiesondeliveringauniqueandsustainablevaluepropositiontothemarketandcapturevalueforyourenterprise.Thatwillinformyourgo-forwardgameplan.

IhavebrokenGear3intotwophases:strategyformulationandactivation.Thebalanceofthischapterhighlightskeyactivities,outcomes,anddevelopmentprinciples;providestipsontheroleofdataanalysisandvalidation,aswellasthemindsets,methods,andthinkingmodesthataremostcritical;andfinisheswithtwoinspiredinterviewsthatillustratetheseimportantprinciplesinpractice.Relatedtoolsareincludedinparttwo:ToolKit.

Fig.15Gear3Strategy:ActivitiesandOutcomes

Gear3Strategy:Activities&OutcomesFigure15showssomeoftheactivitiesyouwillundertake,alongwiththemostvaluableoutcomesofGear3thatwillstrategicallyanchoryoureffortsgoingforward:

ValueProposition:Asuccinctstatementofhowyouwillcreatevalueforwhom.

CapabilitiesRequired:Asasubsetofyourchoices,aplanonhowyouwillleverageorextendyourinternalcapabilitiesorbuildcriticalpartnerships.

FutureActivitySystem:Avisualizationoftheinterconnectedandsynergisticactivitiesandcapabilitiesinwhichyouwillinvesttime,resources,andmoney.

Monetization:Howtheenterprisewillcapturevalue(i.e.,makemoney)indeliveringtheenvisionedsolutiontothemarket.

ValueExchange:Howallpartiesexchangevaluetoensureareciprocalandbalancedexchangethatensuressustainablewinsforall.

StrategicChoices:Aclearsetofchoicesthatanswersthefivekeyquestionshighlightedinthefirstchapterofthisbook.

Divergentactivitiesincludetheexplorationofalternativemodelsineachoftheseareas;nowisthetimetoconsidernewwaystodeliverandcapturevalue.Convergentactivitiescallformakingstrategicdecisions.

KeyPrinciples:DesigntoWinDesigningtheenterprisesystemistheultimateactofcreativitybecauseittranslatesagoodideaintoawell-thoughtoutandactionablestrategy.Atthispoint,dreamsoftengetleftonthetablebecausetheyhavenotbeenfullytranslatedintoastrategicpathtowardrealization.Nowisthetimetocapturethevaluefortheenterpriseandanswertheinevitablequestions,Howarewegoing

towininthemarket?Howarewegoingtomakemoneyatthis?Howcanweconfigureoursystemofactivitiessoit’snoteasyforacompetitortoreplicate?Atthecoreofstrategyisansweringthecriticalquestionspresentedinchapter1:

Whatisourwinningaspiration?Thepurposeofourenterprise,ourmotivatingaspiration.

Wherewillweplay?Aplayingfieldwherewecanachievethataspiration.

Howwillwewin?Thewaywewillwinonthechosenplayingfield.

Whatcapabilitiesmustbeinplace?Thesetandconfigurationofcapabilitiesrequiredtowininthechosenway.

Whatmanagementsystemsarerequired?Thesystemsandmeasuresthatenablethecapabilitiesandsupportthechoices.

Herearesomeimportantprinciplesandconsiderationsthatwilldriveyourstrategyformulation:

Articulateyourvaluepropositionasyourcentralpromise.Thisisaprecisestatementofhowyourvisionwilldelivervaluetothemarket.Bythisphase,youwillhaveundergoneseveralactivities:exploringstrategicconsiderations,framingthemarketopportunity,deeplyandholisticallyunderstandingpeople’sneeds,designingacompellingvisionofyourultimatedestination,andascertainingthegamechangers.Alloftheseinputswillinformthecorevaluepropositionthatexpresseswhoyouwillservewithwhatproductorservice,andtowhatend.Forexample,thevaluepropositionforHSOwasdistilleddowntoHSObuildsglobalhealthservicesstandardsandinnovativeassessmentprogramssopeopleintheirlocaljurisdictionscansaveandimprovelives.

Fig.16SynthesizingYourValueProposition

Agoodwaytosynthesizeyourvaluepropositionistopulltogetherthehigh-levelingredientsofyourinspiration,idea,andstakeholdervalueasvisualizedinFigure16.ThisvaluepropositionwillanchoreverythingyoudoinGear3.

Identifytheessentialcapabilitiesrequiredtodeliveronyourvision.WiththebigideadefinedinGear2,it’stimetobreakdownyourvisionintowhattheenterprisewilldotodeliverthatinascalableandsustainableway.Thisdeconstructionprocesswillmakeexplicitwhatcapabilitieshavetobeinplaceandthesourceofthosecapabilitiestorealizeyournewvision.

Thekeyquestionyouhavetoansweris:Whatdowehavetobereallygoodattodeliveronthisvision?Thatmightmeanleveragingoramplifyingcurrententerprisecapabilities,buildingnewcapabilitiesinternally,orstrategicallypartneringwithothers.Forexample,HSOshiftedtoagreaterfocusondevelopingintegratedhealthstandardsthatconnectpointsofcareacrossthesystemandinvestingintechnologytoimproveaccessandefficienciesforpeopleinthesystem.Nespresso,asanotherexample,neededtodeliveronthedesign,manufacture,andserviceofitsuniquecoffeemachines.Itdecidedtopartneronthosethingsandfocusinternallyonwhatitcoulddoexceptionallywell.

Theworkyouwillhavedoneearlierindefiningthelandscapeofplayerswillgiveyousomeideasonwhichplayersyoumightjoinforceswithinyourquest.Atthesametime,yournewlydefinedvisionmaycallforexplorationofothersourcesofexpertise.Translatingyourvisionintothecapabilitiesrequiredtodeliveritmakeseverythingstrategically,operationally,andfinanciallyclear.

Visualizeyourstrategyasasystemofactivitiesandcapabilities.BasedontheworkofMichaelPorter,RogerMartin,andothers,34thiswayofvisualizingyourstrategyasadistinctsystemwilldetermineyourlong-termviabilityandcompetitiveadvantage.Thedesignofawinningenterprisesystemisinspiredbyahigh-valueexperiencedeliveredthroughacollectionofconcretedesigncomponentsandanchoredinauniqueandcompellingvalueproposition.Thisisnotacaseofmerelydeterminingwhatitcoststomakeordosomethingandhowmuchrevenuecanbegenerated.Thisisnotaspreadsheetexercise.

Valueisdelivered,captured,andsustainedthroughauniquesystemofactivitiesandcapabilities.Designingawinningsetofactivitiesentailsconsideringandknittingtogetherthecoreactivitiesandcapabilitiesinwhichyouchoosetoinvesttimeandmoney.Foranenterprisestrategytobecompetitive,theremustbesomethinginherentinthedesignofthesystemthatisuniquetotheenterpriseanddifficultforotherstoreplicate.Otherwise,itwillnotjustifytheinvestment.Whendesigningasustainablesystemforapublicenterprise,thesefactorsareequallyimportant,asyourmodelwillneedtobeoperationallysustainableandjustifiabletothosepayingthebills.

Activity-systemmodelingisavaluablewaytovisualizeyourstrategy,aspresentedintheToolKitinparttwoofthisbook.Asexamples,I’llfirstexpandonthehigh-levelactivitysystemforHSO.IwillthenreferencehowNespresso’sdistinctvalue-creatingsetofactivitiesandcapabilitiessupportedtheenterprise’soverarchingvaluepropositionandcreatedasustainablecompetitiveadvantage.

HSO’sresultingstrategywasanchoredinacentraldevotion:toCultivateaDeepUnderstandingofPeople–everystakeholderwhomattersinthequesttosaveandimprovepeople’slives.(SeeFigure17.)ThisdeeplyentrenchedphilosophyunderpinsallHSO’seffortstodelivervalueacrosstheecosystem.ToCreateSharedValueamongAllStakeholders,ongoingco-creationensuresthateverystakeholderineveryjurisdictionwins.Leveragingprovenevidenced-basedprocessesandtechnologyallowstheenterprisetoCustomizeProcessesandSolutionsandadaptwhat’scommonlyneededgloballytowhat’sneededjurisdictionally.AlloftheseactivitiespositiontheenterprisetoBuildandSpreadKnowledgeonstandardsdevelopmentandclinicalpractices,withlearningtransferredfromonejurisdictiontoanotherglobally.Byintegratingtheneedsandinputsofpeople,marketknowledge,andtechnology,theenterprisewouldInnovatewithSpeedandAgilitytocontinuallyadvancethevalueofHSO’sproductsandservices.

Fig.17HSOActivitySystem

Asyoureadinchapter1,Nespresso(Figure18)isanotherexcellentexampleofagame-changingstrategyanchoredintheirpromisetocreatemomentsofpleasureandindulgenceforcoffeeloversaroundtheworld.Theirproducts,boutiques,people,andmarketingeffortaredesignedtodeliveraseamlesspremiumcoffeeexperiencetotheircustomer.Whileparentcompany,Nestlé,manufacturesandsellsconsumerpackagedfoodslargelythroughfoodretailers,Nespressochosetocreateanentirelynewcategoryaroundauniquelyintegratedandstylishcoffeesystem,deliveredthroughnewchannelsandsupportedbydirect-to-consumermarketing.Attheheartoftheirstrategyisauniquecoffeesystemthatleveragestheirabilitytosourceandproducehigh-qualitycoffee,deliveredinaconvenientandproprietarycapsulethatisbrewedthroughaspecialcoffeemachine.Thecompanyoutsourcedthemachine’sdesigntohigh-enddesigners(e.g.,Alessi)andmanufacturers(e.g.,KrupsandMagimix),andbuiltabroad-basednetworkofqualifiedserviceproviders.Theyactivelycultivateaone-to-onebrandrelationshipwiththeircustomersthroughdirectmarketing–anexclusiveNespressoClubmembershipof10millionandgrowing–anddirecton-requestproductfulfillment.Theyalsodesignedtheirproductsupplychaintoadheretotheparentcompany’scommitmenttoShared

Valueandhighstandardsofsocialandenvironmentalresponsibility.TheyadheretostrongRainforestAlliancestandardstoensurehighestqualityandsustainabilitypracticesintheirsourcing,farmerrelations,andaccreditedassociationsaspartoftheirEcolaborationinitiative.Thesechoicesarereflectedinastrategicallydistinctandwell-integratedsystem.35

Fig.18NespressoActivitySystem

Whenworkingwithbusinessteams,thereisalwaysan“Aha!”momentinwhichparticipantsdiscoverthepowerofthesystem:“NowIcanseethatitisnotjusttheproduct–itistheentiresystemofactivities.Weshouldalwaysbechallengedtodefendhowthissystemisdifferent.”Adistinctsystemisasourceofcompetitiveadvantage.

Aimtodelivervalueatscale.Withthegoalofmaximizingvalue-creation,itisoftenimportanttothinkaboutscale–ifthatisyourultimateambition.Havingtheforesighttoseewhereabigideamightleadgivesyouabetterhandleonwhatkindsofinvestmentsyouwillhavetomake,whoyourpartnersmightbe,whatkindsofexperimentsyouwilldotomitigaterisk,andwhatkindsof

systemsandstructuresyouwillneedtodesigntoenabletheenterprise.InthecaseofHSO,globalexpansionrequiredthemtodesignsystems,processes,andtechnologyapplicationstoaugmenttheirlabor-intensivepracticesinanefficientandqualitymanner.

Integrateyournewactivitysystemwithyourexistingone.Aspartofpreparingforyourquest(chapter2),mappingyourcurrentactivitysystemwillshowthatyouhaveawell-entrenchedsysteminplacethatcanbeleveragedtogiveyouaheadstart,acceleraterealization,andstrengthenyourcompetitiveadvantage.Herearesomedifferentscenariosthatyoumightconsider:

Integratinganenhancedsolutionintoanexistingone.InascenariowhereyourGear2solutionisanaturalbuildonyourcurrentofferingandmodel,youshouldstrivetoembedyouridea(andanycapabilityextensions)intoyourexistingsystemofactivities.Thisdemonstratesstrategicfit.

Resolvingpotentialtensionswithanexistingsystem.Sometimestheenvisionedofferingdoesn’tquitefitwiththeexistingsystem,butcomplementsitinanovelway.Forexample,theNespressoactivitysystemisdifferentinmanywaysfromtheoverallNestléactivitysystembutitlinkstothecore“hubs”ofbrandbuildingandsharedvalue.ThatcanhavestructuralimplicationsandiswhyNespressooperatesasanindependentbusinessunitwithintheNestléportfolio.Atthesametime,theyalsoleveragecorporatesynergiestodeliveronthecorporateaspiration.Thisexampledemonstratesleverageablestrategiclinks.

Transforminganenterprise.Thisentailsmovingfromonestrategicactivitysystemtoanewfuturestate.Inthiscase,youwanttoleveragewhatyouarealreadygoodatandmigrateinstagestoanewsystem.Forexample,HSO’stransitiontoaglobalstandardsorganizationbeganbyintegratingtheinherentcapabilitiesoftheirdomesticandinternationalorganizations,andthenbuildingonthatwithaugmentationofactivitiesandcapabilities.Thisexampledemonstratesthestrategicshiftthatwilltakeplaceovertime.

Startingupanewbusiness.Thoughyoumightnothaveallofthecapabilitiesinplacetoscaleintheshortterm,everyfoundingteamhascorecapabilitiesthataredrivingthevision.Forexample,EarlBakkenofMedtronicwasaninventoratheartwhoworkedcloselywithexpertpractitioners.Thatwas,andstillis,coretoMedtronic.Itmightalsobethatyouhaveafoundationalexpertiseinmarketingordistributionortechnology.Whilenotfullydeveloped,theseareimportantcapabilitiestoleverageandbuildon.

Assessyourenvisionedsystemofactivitiesforsustainableadvantage.InspiredbyRogerMartin’sstrategywork,hereisachecklistofquestionstokeepinmindwhenassessingthepowerofyoursystemanditsabilitytocreateasustainablecompetitiveadvantageforyou:36

Doesitcreatevalueforeverystakeholderintheecosystem?

Isitbreakthroughinthatitisnotjustmoreofthesamebutsomethingthatwilltrulydisruptthemarket?

Isitdistinctinthatitisdifferentfromyourcompetitorsandgivesyouacompetitiveadvantage?

Doesitfittogetherasanintegratedsystemandsupportyourenterprisevisionandpurpose?

Isitsustainableintermsofbothfinancialviabilityandcompetitiveness?Isitasystemthatcompetitorscannoteasilyreplicate?

Explorewaystomake,save,andinvestmoney.Identifyseveraloptionsforsourcesofrevenueanddeterminehowtobestmakeandsavemoney.Thiswillhelpyoudiscoverhowtofundyourbigideaandmakeacaseforareturnonyourinvestment.Oftenwebelievethattogeneraterevenue,weneedtosellmorewidgetsorservices.Suchisthecorerevenuestreamformanycompanies,yettherearesomanywaystomakemoneythatweoftenoverlook.Thisiswhereyourcreativityandfinancialacumenwillcomeintoplay.Whenlookingatthewholeend-userexperience,imaginenewsourcesofrevenue.Thesesourcesincludesalesofyourownproduct,sellingothers’productsinyouroutlets(e.g.,Applesellingperipheralssuchasspeakers),serviceprograms(e.g.,extendedwarranteesofferedbyretailersinelectronicproductsales),sponsorshipsoradvertisingrevenue(e.g.,Google),orusagefees(asinthecaseofautomated-tellermachines).

Ontheflipside,youwillwanttobecreativeabouthowyoucansavemoneyindeliveringsolutions–throughefficienciesinscale(e.g.,high-volumeproduction),offshoreproductsupplyorproduction,automation,long-termcontractswithvendors,andsomanyothermeans.Youmightalsolearnfromthefirsttwogearsthatyouarespendingmoneyonthingsnowthatshouldbereallocatedtoabigger,high-valueidea.

Whenyoumaximizehowyoucanmakeandsavemoney,youwillbeableto

spendmoneyandinvestyoureffortsinaccordancewithyourstrategy.Willyouinvestinyourdistributionnetwork,likeFrito-Laydoeswithitsdirect-to-storedistributionsystem?Brandmarketing,likeProcter&GambleorNespresso?Recruiting,training,andretention,likeFourSeasons?

Prototypebusinessmodelsandrunalotofnumbers.Gear3offersagreatopportunitytoexploreandprototypedifferentwaystoconfigureyoursystem(e.g.,internalorexternalcapabilities),capturevalue(i.e.,differentwaystogeneraterevenue),andmitigaterisk(i.e.,avoidhigh-riskinvestmentsorbusinessmodels).Forexample,youmaybuildanewcapabilitywithintheenterpriseoroutsourceitthroughstrategicpartners,asinthecaseofNespresso,whichchosetoworkwithoutsidedesignersandmanufacturers.Youmightrunsomenumbersonyourgreatestopportunityforcapturingvalue.Youwillalsowanttoconsiderworkingthroughyoursolutioncomponentsanddeterminingwhereyoumightbreakthebankifsomethinggoeswrong.Forexample,aprojectonwater-filterkiosksshowedthatifthemachinebreaksdown,thecompanymightbeinabetterpositiontobrokerleasesratherthansellmachinesandbearthecostofunpredictablerepaircosts.Here’swherelookingbackonyourexperiencemapandcomponentscanhelpyouconductafinancial-sensitivityanalysisonbest-andworst-casescenarios.Thisisanimportanttimetoflexyourthinkingandexploreoptionsfordeliveringyoursolutiontothemarket.It’swhyweusepaperplatestodesignalternativeactivitysystemsandalotofspreadsheetstotestscenarios.Bettertoworkthisoutinadesignstudiothaninthemarket!

Ensurethateverystakeholderinyourecosystemwins.Onceyouhavedeterminedyourmodelforinternalandexternalcapabilitiesandexploredwaystomonetizeyourvision,itisimportanttomakesurethateverysinglestakeholderorpartnergetsvalueoutofyourventure.Reciprocityintheecosystemisanessentialprincipleinbalancedstakeholderexchangeandsustainability.Itisclearlyimportanttocreatevaluefortheenduserandtheenterprise,butitisequallyimportanttocreatevalueforallkeystakeholdersforyourmodeltobesustainable.

Whendesigningthevalueexchangeamongstakeholders(i.e.,whogiveswhatandwhattheygetinreturn),ensureabalancedexchange.Whiletheexchangeofmoneyismosteasilymeasured,valuecanalsocomeintheformofcredibility,brandimage,reputationenhancement,distributionoraccesstothemarket,orknowledgeandexpertise.Thekeyistorecognizeandappreciateallformsofvalueintheexchange.Otherwise,thesystemwillunravelintime.Forthisreason,youmustseetheexchangethroughtheeyesofothers.Practiceempathy

andputyourselfintheshoesofothers.Tofurtherillustratethesepoints,takethefollowingsimpleexampleofa

healthcarecompanythatoperateswithinanecosysteminwhichvalueisexchangedamongmultiplepartners(Figure19).Thehealthcarecompanyneedsaccesstopatientstosellnewservices,anditneedstheendorsementofthepatients’mosttrustedadvisor,thedoctor.Thedoctorwantsinformationtohelpcounselpatientsinaknowledgeable(andtimeefficient)mannerandanopportunitytoearnrevenuethroughpatientvisits.Thepatientsneedadviceandarewillingtopayforit,andultimatelytheyneedasolution(productorservice)thatwillimprovetheirhealth.

Inthisscenario,onewouldwanttoensurethattheenterprisewasseentobethebestsourceofcredible,usableinformation.Otherwise,itcouldeasilybesubstitutedforanotherlike-intentionedplayerandlosevaluableaccesstothepatientmarket.

Rethinkhowyoumanageandmeasureprogress.Reallybigbusinessideasoftencallforarethinkofyourprocesses,structures,andmanagementsystems.Successwilldependonhowyoumanagethatnewsystemrelativetoyourexistingsystemandhowyoumakeyourbigideas“plugcompatible”withtheexistinginfrastructureofbusiness.Youmayalsoneedtorethinkhowyoumanageandmeasuresuccess.Forexample,HSOredesignedtheirorganizationalstructuresandKPIstoalignwiththeirstrategicgoals.

Makeprecisestrategicchoices.Thisisnotalwayseasy,butitisessentialforfocusandfuturemomentum.Youmayhavestartedyourquestwithalonglistofconsiderationsforthefivecriticalstrategyquestions.ThroughthedevelopmentprocessfromcontextualizationtoGear2,itshouldbecomeclearthatyouhavetomakesomeprecisechoicesontarget,sector,geography,andproductsandservices.InthecaseofHSO,theymadeanexplicitchoicetoservehealthcaresystemsaroundtheworldandfirmlyestablishthathealth-standardsdevelopmentwastheirhigher-levelmandate,withassessmentandaccreditationasimportantsupportingservices.

Fig.19HealthcareValueExchange

Howyouwillwininthemarketplaceandthecapabilitiesrequiredtodistinctlydeliveronyourvisionwillalsohavebecomeclearer,basedonyourinsightsintotheplayers,thegapsinsatisfyingmarketneedsinGear1,andyourfeedbackfromstakeholdersinGear2.Thekeyistoidentifythecorechoicesyouhavetomaketodeliverwithexcellenceanddistinctiveness.Whatismostdifficultissaying“no.”Youobviouslycan’tdoeverythingforeveryone.Thisisthetimetogothroughthelonglistofconsiderationsandnotonlydecidewhatyouwillchoosetodo,butalsobeexplicitaboutwhatchoiceconsiderationsareoffthetable.

Onceyou’veexploredoptionsandlandedonastrategytosetyouonapromisingpath,youwillbereadytocreateacompellingstoryonhowyouwillcreatenewandsustainablevalueforboththemarketandtheenterprise.

BuildingaBusinessCase:DataAnalysis&ValidationWhenimportantstrategicchoicesandbigcapitalinvestmentsareontheline,factsandnumberswillhelpyoumakedecisionsandsolidifyyourcase.Thereareseveralwaysyoucanbuildafact-basedpictureofthecriticalimplicationsofyourstrategy.Herearesomesuggestions:

Dissectyourvisionintorevenueopportunitiesandcosts.Yourenvisionedofferingcanbebrokendownintocriticalproductsandservices,forwhichyoucanestimaterevenue.Similarly,youractivitiesandcapabilitieswillhaveapriceonthem.Yourgoalistoputdollarsagainsteachelement–monetizationopportunitiesandcoststodeliverthem.

Runfinancialscenarios.Thiswhenfinancialanalysismeetscreativityandprototyping.Exploreoptionsthatrevealnotonlyyourgreatestpotentialtocapturevaluebutalsowhereyourgreatestcostsmightbe.Foreachofthosescenarios,stateyourassumptions.

Assessrisksandprobabilities.Foreachofthosescenarios,challengeyourassumptionsandidentifywhereyouareatrisk.Thisstepwillinformyourbusinessmodelinacasewheretheriskcanbemitigatedbyreconfiguringyourmodel,oritmayinformcriticalexperimentsinyouractivationplanningaccordingly.

ImportantMindsets,Methods,&ThinkingModesMindsetMatters:ThemostimportantmindsetforGear3iscourage.AtsomepointinGear3,youwillhavetoputastakeinthegroundbymakingchoicesandleaninginonaction.Researchshowsthatcouragecomesfrommakingchoicestodotherightthing.WhenyouhavedoneyourhomeworkthroughGears1and2,youshouldfeelconfidentthatyouaremakingchoicesfortherightreasons.Atthesametime,youwillneedtohavesomeempathyforthedecision-makersandprojectasenseofoptimism.

MostCriticalMethods:Themostcriticalmethodsthatcanhelpyouworkthroughchoice-makingaretappingintoyourcollectiveknow-howthroughcollaboration,iterativeprototypingofalternativescenarios,andmakingconnectionsthroughsystemsmapping.Youwillalsodrawonyourstorytellingskillsincommunicatinghowyourvisiontapsintoimportantnewopportunitiesandhowyourstrategyplaysoutovertime.Gear3isdesignonsteroids!

RegulatingYourThinkingModes:ThemostimportantcognitivemodeforGear3issynthesisanddecision-making.Takealloftheideasanddatayouhaveinhandandmakeacompellingbusinesscasetogoforward.Togetthere,youwillneedtogenerateandassessoptions,takingintoaccounttheneedsofall

stakeholdersinyoursolution.

Ultimately,thedesignofbusinessisnotunlikethedesignofanyotherobjectorexperienceconcept.Thisisthephaseinwhichalldimensionsofthinkingcometogethertocreateabreakthroughstrategy:creativity,analysis,criticalthinking,systemsthinking,andsynthesis.

Long-runsuccesscomesfrombuildingfromabaseofcustomerdevotion,embracingaclearandconcretevisionofwhereyouareheaded,aligningonaclearanddistinctstrategytogetthere,andhavingtheperseverancetostickwithit.Whileitisalwaysimportanttoremainopentonewpossibilitiestoexpandyourbusiness,itisequallyimportanttobestrategicinhowyoudoso.

YourGoalinGear3:ActivationTotranslateyourvisionintoreality.Withanexcitingnewvision,afocusedstrategytogetthere,andasolidbusinesspropositioninhand,it’stimetolockdownyourplantogetgoing.Thattakesagoodbusinesscasetogetthegreenlightandanenterprisethatisreadytomoveforwardanddeliverthroughacalculatedsequenceofactionsteps.

Gear3Activation:Activities&OutcomesFigure20showssomeoftheactivitiesyouwillundertakeinactivationandsomeofthemostvaluableoutcomesthatwillguideyoureffortsgoingforward:

BusinessPlan:Extendingyourstrategicworkintoacaseforinvestmentoftimeandmoney.

ActivationPriorities:Thetop-mostimportantdevelopmentandimplementationprojectsyouwillmoveforward.

ImplementationRoadmap:Themeasuredsequence–thewhatandwhen–ofprojectsyouwillmoveforwardinconcert.

Experiments:Whatuncertaintiesyouwilltesttoadvanceyourenvisionedsolutionsandmitigateriskalongtheway.

QuickWins:Whatyouwilldorightawaytocapitalizeonyournewdiscoveries.

OrganizationalStructureandTeamDesign:Howyouwillorganizepeoplewithclearrolesandresponsibilitiestodeliveronyourcriticalinitiativesinternallyandtothemarket.

ProjectMetricsandKPIs:Keymanagementsystemstomeasureandrewardprogressindeliveringonpriorities.

Fig.20Gear3Activation:ActivitiesandOutcomes

Divergentactivitiesincludeiterativeanalysisoffinancialinvestmentsandpayouts,prioritizingandmappinginitiatives,exploringnewwaysofteaming,consideringkeyrisks,andrethinkingwaystomeasurewhatmatters.Convergentactivitiescallfortranslatingthisintoaclearplanthatwillmobilizetheenterpriseinthemostproductiveandrewardingway.

KeyPrinciples:ShiftfromDreamingtoDoingStrategyisaguidetoaction.Acomprehensivebusinessplanwiththoughtfullysequencedactionsthatarealignedacrosstheenterpriseiskeytoproductivityandmomentum.Atthisstage,itisimportanttobeopentonewwaysofdoingbusinessandwillingtoletgoofoldwaysofworkingthatcanholdyouback.Optimismandresiliencyareimportantasyouencounterconstraintsandsetbacksalongtheway.Herearesomeimportantprinciplesfromtheexperienceofothers

whohavecarvedoutnewpaths:

Buildacompellingcasearoundyourstrategy.Buildingabusinessplanisanaturalnextstep.Allofthegoodworkyou’vedonethroughoutthedevelopmentprocesswillfeedintoafact-basedproposition:trendsandmarketsizing,dimensionalizationofneeds,validationofgamechangers,financialsensitivityanalysis,assessmentofcapabilitiesandinvestmentpriorities,monetizationopportunities,andclearstrategicchoiceswillallinformyourbusinesscase.Thisisaboutintegratingdesignmagicandbusinesslogic.

Asolidbusinesscasecanbebroughttolifewithgoodstorytellingthatpaintsacompellingpictureoftheultimatedestination;thereisstillaplaceformagic!Forexample,inthePrincessMargaretHospitalcaseinchapter5,theteampresentedaninspiringmovieoftheenvisionedpatientexperiencetoattractgenerousdonations.InthecaseofHSO,aninspiringstoryabouthowthefuturemightlooksetthestageforanambitiousbusinessproposalthatresultedinunanimousapprovalbytheboard.

Setpriorities.Theremightbeseveralstreamsofactivityrelatedtohowtomovetowardyourenvisionedfuture.Atthesametime,youcan’tboiltheocean.Itishelpfultodefinethetoptenactivationprioritiesthatwillleverageyourlearningandsetyourenterpriseuptodelivernewvalue.Thatwillinformhowyouinvesttimeandmoneytodeliverpayout,andhowyoufocustheenterpriseonwhatneedstobedoneandwhen.

Bigwinscomethroughaseriesofsuccessesandfailures.Yearsago,itwascommonforbusinessestoperfectthegrandplanandthenexecuteitinthemarketatasizablescale–Tada!Thosedaysaregoneformostcompanies.Makingyourwaytothemarketisnowaboutiterativelyprototypingnotonlyinthedevelopmentlab,butalsointhemarketplace.Theagilewayofworkingcallsfortestingthewaters,listeningtocustomers,anditeratingbasedonlivelearning.

Whileitisimportanttostaythecourse,itisalsoimportanttorememberthatnoteverythingwillgoasplanned.Thatcallsforenterpriseagilityinresponsetonewlearningandcircumstancesalongtheway.Yourstrategywillprovidetheguardrailsfornavigatingyourwayforward.Withalearningmindset,youwilldiscoverthatthere’sreallynosuchthingasfailure.

Quickwinsgetyougoingandbuildconfidence.Throughallofyourdevelopmentwork,therearesomethingsthatyoucanactivateoutofthegateto

moveyouclosertowhereyouwanttogo.Quickwinsarethesmallerandeasierinitiativesthatwillstartyoudownanewpath.Iftheyfitwithyourgeneralenterprisepurposeandaddressanunmetneedofyourcustomer,thereisnoreasonnottoactivateacomponentofyournewideaasawayofgettingstarted.Forexample,thehealthcarecompanyinchapter4expandeditsfasttrack-systemtokeepat-riskpatientsonthehealthcareradar,whilepursuinglonger-termsystemsinitiatives.

Asmentionedearlierinthischapter,aquickwinmightbereallocatinginvestmentfromeffortsthatyounowknowwon’tcreatesignificantvaluetoideasthatwillbemoreinlinewithyourfuturevisionandstrategy.Quickwinscancomeintheformofwhatyouwillstopdoing,whatyouwillstartdoing,andreinforcewhatyouwillcontinuedoing.

TheBusinessDesignprocesswillgiveyounewinsightsandideasonhowtobetterchannelyourtimeandmoneyrightaway–whichbuildsconfidenceinthevalueofBusinessDesignandmomentuminyourprogress.

Designmeasuredexperimentstomitigateriskandlearn.Forbigger,moreimportantmoves,thoughtfullydesignedexperimentswillhelpyoutogeneratevaluableandactionablelearningonhowtoadvanceyourideas.Bytestingassumptionsthathaveinherentrisk,youcanvalidateorfalsifythoseassumptionsandfindwaystoadapttheexecutionofyourideas.Experimentscanbeusedtovetmanyideasintheearlystagesofdevelopment,butatthisstage,yourgoalistofindwaystodeliverontheintentofyourideaswithouttakingavoidablerisk.Inthisregard,experimentsareaboutlearninghowtomaketheingredientsofbigideaswork,notwhethertopursuetheoverarchingidea.Forexample,Nespressohasbeenexperimentingwithnewideassincethebeginning,mostrecentlywiththoserelatedtotheirEcolaborationplatform.

It’simportanttolearnandascertainasmuchaspossibleabouttheelementsyouarelesssureof.Well-designedexperimentswilltellyouwhatyouneedtoknowandgiveyougreaterconfidencetogotothenextlevelofinvestment.Experimentsaremostvaluablewhentheyarebuiltaroundaclearhypothesisandmeasured.Forexample,inmyworkatProcter&Gambleonimportantexperiments,wewouldstatethehypothesis,designtheexperiment,andbeclearabouttheindicatedactionsbeforeweconductedtheexperiments.Thatwayyouaren’tjusttryingthingsinanadhocmanner;youaregoingintoimportantexperimentstolearnandmakefact-baseddecisionsonhowtoexecuteanideainthemosteffectiveway.

Organizepeopletodeliveronthejobtobedone.Newideasoftencallforre-

examiningthewayyouworktogethertomostproductivelydelivernewsolutions.Thatmightcallfordesigningneworganizationalstructuresandre-teamingpeopletoalignyourtalentandincentivestothejobtobedone.Thisisanotheropportunitytoprototypedifferentwaysofstructuringyourorganizationororganizingteams.

Forexample,HSOformedteamsofpatients,clinicians,andhealthsystemsexpertstosupportitsstandards-developmentandassessmentprocess.Thatmeantstandardsdevelopmentwouldtakeintoaccounttheneedsofallstakeholders,withtheultimategoalofimprovingpatienthealthoutcomes.

“AlotofexperimentshavecontributedovertimetothesuccessofNespresso–fromtheoriginalidea,toourspecificroute-to-marketanddirect-to-consumerbusinessmodel,boutiques,brandcommunicationstrategies,totrendyanddesignedmachines.Morerecently,thewayNespressohasengagedandcommittedtosustainabilitythroughourEcolaborationinitiative,fromrecyclingtosustainablecoffees,willalsocontributeinanearfuture.Asanexample,AAAcoffeeprogramstartedinthefieldin2003asanexperiment,andaftereightyearsoflearningwearestartingtobroadlytellourstoryin2011.”37

GUILLAUMELECUNFF,NESPRESSOGLOBALMARKETING

Assessprocessesandsystemstoensurenewideaswon’tgetstuck.Understandingyourembeddedwaysofworking(chapter3)willhelpyouappreciatehowworkcurrentlygetsdone.Thatcanaccelerateprogressifitalignswithyournewideasandstrategy,oritcanblocknewideasfromgettingtothemarket.

Forexample,atProcter&Gamblewehadafinelytunedsystemforgettingproductsintothemarket,basedonahigh-volume,manufacturing-basedmodel.Ifwewantedtogetanew$2.99bottleoflotionintothemarket,wewouldjustdroptheideaintoourenterprisesystem,anditultimatelymadeitswaytothemarketinthemostefficientway.However,thatsystemwasdesignedtomaximizecapacityutilizationinourplants.Youcanimaginehowlower-volume/high-marginproductsandserviceswouldnotfitintothatsystem.Managementsystemsneedtobedesignedtoalignwithyourenterprisestrategy

andenvisionedsolutions.Itiscriticaltotakestockofyouringrainedsystemsandprocessestodetermineiftheyhelporhinderingettingyournewideastothemarket.

Maketalentandchangemanagementapriority.Often,bigideasandstrategicevolutioncallforchange.Thatcanbethehardestpartofgearingupforthefuture.Whilethegenerationofideasandthedesignofstrategymaybeledbyarelativelysmallgroup,ittakesanenterprisetodeliverbigideastothemarket.HRisfrequentlyoneofthemostimportantfactorsindrivinginnovationthroughouttheenterprise.HRplaysacriticalroleinmanyaspectsofthepeoplesideofbusiness,including:

Havingthetalentyouneedandpeopleintherightroles

Designingplanstofosterengagement

Ensuringthatthereisongoingcommunicationwithintheenterprise

Buildinginnovationskillsandcapacity

Designingrewardsystemsforoutcomesthataligntoyourstrategy

Asallbusinessleadersknow,peopleareyourmostvaluableasset,anddesigningtheconditionsthatpeopleinorganizationsneedtosucceedisasimportantasdesigningthebusiness.

Whatgetsmeasuredgetstreasured.Knowingyouareontrackandrewardingpeopleacrosstheenterprisefortheoutcomesthataligntoyourstrategicplanandprioritiesisclearlyimportant.Thatentailssettingupmanagementsystemstotrackenterpriseprogress,settingKPIsforteamsandindividuals,andtrackingyourinnovationreadinessandoutputs.

Celebratesmall(andbig)victories.Meaningfulprogresstakesalotofeffortfromeverybody,andquickwinscanhelpmotivatetheenterpriseonapathtofuturesuccess.It’simportanttocelebratelearningandtheeffortsthatgointomanagingtoday’sbusinesswhilecreatingyourfuture.Asnotedinchapter2,PreparingforyourQuest,continuousengagementandcommunicationwillhelpkeeptheskepticsincheckandbuildbroaderconfidenceandmomentuminyourpathforward.

BuildingaBusinessCase:DataAnalysis&ValidationTranslatingideasintorealityinameasuredwayrequiresacumeninbusinessandthedesignofsystemstomeasureandrewardprogress.Insummaryofthepreviouspointsinthischapter,thatincludes:

Analyzingandsynthesizingfinancialdataasinputtothebusinessplanandtrackingongoingresults;

Designingmeasurableexperimentsatascalethatwillbuildconfidenceinideasandinvestments;

Determiningthemeasuresofsuccessbeyondthebusiness,includingmetricsthattrackkeycustomerindicators;

SettingKPIstoaligngoalstopeople’seffortsandrewards;andEstablishinggoalsforthecultureoftheenterpriseintermsofengagement,innovationreadinessandotherindicatorsthatalignwithyouraspirationsfortheenterprise.

Themeasurementsofbusinessperformance,stakeholderassessment,peopleperformance,andculturalassessmentswillcomplementthe“softerside”ofpursuingbigideaswithasenseofpurpose.

ImportantMindsets,Methods,&ThinkingModesActivationisthebeginningofrealization.Themannerinwhichyouactivateandmanageinnovationnotonlyenhancesyouroddsofbusinesssuccess,itshapesyourcultureofinnovation.

MindsetMatters:Inthisphase,allthreecriticalmindsetsofBusinessDesignareimportant.Ittakescouragetoputastakeinthegroundandgetgoing.Asyoukickintohighgearandmakethingshappen,progressisneverwithoutsetbacksalongtheway;that’swhereresilienceandpositivityareimportantinkeepingyoureyeonthepurposeandtheprizeofyourpursuits.Atthesametime,achangeinwaysofworkingcanalsobechallengingforthepeoplewhohavetomakeithappen.Empathyforthepeopleinsidetheenterpriseismostimportantintimesofchange.

MostCriticalMethods:EverysingleBusinessDesignmethodisinplayinthis

phase:effectivecollaborationamongteamschargedwithdeliveringontheplan,need-findingindesigningwaystoengageandmotivateyourpeople,visualizingthe“endgame”asanaspirationwithpurpose,iterativelyprototypinghowyoumightorganizetogetthejobdone,takingtimeforco-creationofwaystodeliverandmotivatepeoplebasedonhowtheirneedsdovetailwiththeneedsofthebusiness,designingexperimentstoadvancelearninganddevelopment,applyingsystemsthinkingtohowyoudesignprocessesandmanagementsystemsthatintegratetheeffortsofthepeopleinyourorganization,andinspiringpeoplethroughstorytellingasyoumovethroughyourjourneyandcelebratelearningandprogress.

RegulatingYourThinkingModes:Youwillbeinastrongdecision-makingmodeatthisstage.Buttomakethosedecisions,youwillhavetopausetounderstandtheimplicationsofyourdecisionsintermsofthebusinessandthepeople,andgeneratenewwaysofdoingbusinesstooptimizeyourchancesofsuccess.

Soasyoucansee,themindsets,methods,andthinkingskillsofBusinessDesignareatplayateverystageofdevelopmentandareapplicableineverythingyoudoeveryday.

TheHSOstoriesinthisbookillustratehowadeepandrigorousapplicationofBusinessDesigncanleadtoatransformationaloutcome.BusinessDesigncanbeequallyeffectiveinaventureinitsformativestagesasitcaninanestablishedorganizationwithanambitiontofurtherscaleitsimpact.ThefollowinginterviewwithJeffRubybringstolifehowvaluabletheuseofBusinessDesigncanbeinastart-upmodetoanchorstrategyinpurposeandhumanunderstanding,shapeabettercustomerexperience,identifykeystrategicpartners,andshapeenterpriseculturefromtheverybeginning.NextcomesaninterviewwithMaureenO’NeilthatillustrateshowBusinessDesigncanbeappliedtoanestablishedenterpriseata“strategicinflectionpoint”tocaptureemergingcapabilitiesinaclearpropositiontofurtherscalesuccess.Together,thesestoriesfurtherdemonstratehowadesign-inspiredapproachcanbeusedtosetanenterpriseonagrowthpathateverystageofitslifecycle.

InterviewwithJeffRubyCEO,Newtopia

“WhenweinitiallyengagedintheBusinessDesignprocess,weweretryingtosortouttwothings.Onewasproductfit:Wastheofferingreallysatisfyingtheneedsofourconsumers?Andthesecondwasmorefundamental:Shouldweevenbeinthedirect-to-consumerbusinessatall?Weneededtomakeastrategicchange–what’snoweloquentlycalled“thepivot.”

Icallitstartingoveragain.It’snotembracingfailure;it’smoreaboutredefiningwhatsuccesslookslike.Wefailedinonedirectionandneededtorestart,andsoinmanywaysitwasthepointforamajorpivotawayfromdirecttoconsumertowardaB2BorB2B2E–“E”beingemployeedistribution.Weweretryingtofigureoutwhattheofferingshouldlooklike.Almostimmediatelyafterthatdesignexperiencethatwehadtogether,wesetoutonaverydifferentcourse.Welearnedaverybiglessonaroundwhatwedidanddidn’twanttobe.Thatledustoourcurrentlysuccessfuldistributionmodelofprecisionhealthfordiseasepreventionforat-riskemployeesintheUnitedStates.

Myoriginalvisionforthecompanywastofocusondiseasepreventionandtohelpindividualswhoweretryingtostayhealthy.Iwasinspiredbymydad’sexperienceofreachingmiddleageandsuddenlyhavingthisdiseasecomeoutofnowhere,learningthatithadbothgeneticandlifestylecauses.Butbecausehehadbeenblindsidedbythisdiagnosis,hefeltlikehewasalmostapassivespectatorofhisownlife.Sothisraisedthequestion:Howcanweinspirepeopletolivehealthyasopposedtowaitinguntiltheygetsick?

Butaswewentdirecttoconsumer,werealizedthatwhatindividualswantedwasweightlossandaquickfix.Ifweweregoingtobesuccessfulasaweight-losscompany,weneededtogoafterindividualswhowanttoloseweightwithoutsoundingandfeelingliketheJennyCraigsandtheWeightWatchersoftheworld.Manyconsumersseekinginstantgratificationspendonweightlossbecauseit’saesthetic;it’shereandnow,motivatedbyamoreimmediateobjective,likeaweddingoraneventorsomethingtogettorightaway.Sointhedirect-to-consumerworld,webecameanaestheticweight-losscompany,andtheearlycustomerswerethosewhosawusasanalternative

becauseofourgeneticpackagingandfulllifestyleperspective.Throughadeeperunderstandingoftheconsumer,welearnedthegrand

lesson:there’saverybigdifferencebetweenthosewhohavechosentotakeactiontoloseweightforaestheticreasonsversusthosethatshouldbeconcernedbutwhomaynothavethatimmediatedriver.Peopledon’tinvestindiseasepreventionunlessthere’ssomethingimmediatetotieitto.Ifit’stoofarinthefuture,itwon’tcapturetheirimaginationandtheirwallet.Thedesiretostaypreventativelyhealthywasn’tonanyone’smind.

Thequestionthatemergedfromunderstandingandreframingwas,Howdowetargetthoseindividualswhoarenotimmediatelyinneed?

Aswestartedseeingthetoughestcases,itledustowonderiftherewasabroadermarketoutthere.Weheardfromconsumersthatifwejustbroadenedthelensandlookedatitslightlydifferentlywecouldstillhaveanimpactwherewethoughtwehadfailed.Werealizeditwasn’taconceptfailurebutadistributionfailure.

Inmakingthispivotwealsorealizedthatourpeoplewerenotnecessarilygoingtobeabletochangedirection.Sotherewasasystematicrebuildingoftheteamtomeetthenewdirection.Inmanyways,IstartedproactivelylookingforpeoplewhoweremuchmorelikedesignthinkersoratleastsensitivetouserneedsaspartoftheircoreDNA.

Anotherbiglearningwastheseparationofourcustomerservicefromourcoaching.Everyoneinourcustomerbasehadacoach,whethertheythoughttheyneededoneornot.Therewasnoopportunityforfeedback,soanyonewhodidn’tthinktheyneededacoachwouldbeturnedoffrightaway.Iftherewasaproblemwiththecoach,therewasnoonetotalktoaboutit.Sowecreatedwhatwecallourcarespecialist–acustomer-experienceconciergeteamwhoworkwithourcoachesandallowthemtodouble-checkeachother.Thatstructurehasbeenworkingincrediblywell.SoI’dsaywe’vebeenshapingtheteaminwaysofthinkingandourvaluesofexperimentationandempathyandreallygettingintotheshoesofourparticipants.

Tokeepthecustomerfrontandcenterofourefforts,wecreatedapanelofpersonasaswell.Theyareonthewallasyouwalkin.Theyarelargelyinformedbytheworkthatwedidtogetherandsomeofthelessonslearned.Wedesignforthoseindividualsbecausetheotherchallengewehaveinthisorganizationisthatnoneofthemembersofourteamfitintotheriskprofileofthepeopleweareserving.Everythingwedonowisbasedonthesepersonas.

Thenthereareourcustomerandparticipantcouncils,wherewetakenewconceptsanditeratewithrealindividualsoncewehavesomethingthat’s

ready,whichissomethingweneverdidbefore.Ourparticipantcouncilismadeupofeighttotenpeoplewhohelpuswithfeedbackandthoughtsandideasandmakerecommendationsaboutwhattoincludeintheoffering.Theyreallyspendalotoftimeonthis.Wehavesomeonefromtheoriginaldirect-to-consumerorientation–literally,fromeightyearsago–uptomorecurrentindividuals,sotheycanprovideawiderangeofperspectives.

Wealsospendalotoftimethinkingabouttheonlinesmart-touchexperience.Iwouldsaywearefarfromdoneandweareconstantlylookingtoimprovebecauseitisalongsellcycletogetsomeoneon-boardedandintroducedtoNewtopia.TheNewtopiaexperiencereallycombinesthebestofhightouchwithvideo,voice,electronic,ortext-basedcommunicationtoarealliveperson.

It’salotofworkconstantlyiteratingonfeedbackandonthemetadatathatwecollectfromourusers.Wetrackhowmanytimestheyaretouchingtheircoach,orloggingintotheapp,orparticipatingactivitiesorsocialcommunity.We’veusedthese“arcsofsuccess”tobenchmarkwhatwebelieveshouldbehappeningandthenmeasureandtrackparticipantexperienceagainstit.Whenweseethingsthatdon’tmeasureup,thenwethinkaboutwhatwearedoingwronganditeratesomemore.It’sconstant.Whenyourvaluesincludeempathyandexperimentation,youneedtogetintotheshoesofthepeopleyouserve.Youarenevergoingtohavetherightanswers,soyoujustkeepiteratingandusefeedbacktoknowwhenyouaregettingcloser.

Asidefromthat,wedidsomethinkingabouttheeconomicsofdistribution.Wereachedthepointwheretheonlywayweweretoachieveanysuccessintheconsumerworldwastobuildatrustedconsumerbrand,andwedidn’twanttoinvestinthat.Sowethoughtifwecouldformrelationshipswithpartnersthatalreadyhadtrustedrelationshipswithourtargetaudience,wecouldlowerthecostofacquisition.

ItwaswhenthatwecameacrossAetna’sMetabolicSyndromeRiskReductionProgramthattheopportunitybecameclear.Thisisaprogramwhichrewardsemployeeswithlowerinsurancepremiumsiftheytakecertainstepstoavoidoratleastmitigateagainsttheonsetofapreventabledisease.Werealizedthattheincentiveoflowerpremiumswouldmotivatetheseindividuals–whichinmanycasescanrepresentupto50percentofthecompany’semployeebase.Finallythingswerealigningtoourconcept.

WithAetnaasaco-fundingpartner,weranarandomizedcontroltrialonnearly3,000ofAetna’sat-riskemployeesforaperiodofthreeyears,whichrequiredustoforfeitanyoutsidesales.Wewereentirelyfocusedonthis.We

werebasicallybettingthecompanyonthetrial’ssuccess.Thekeywastobeabletoproveourselvestothemarketwithgold-standarddata,insteadofsimplyhavingasilver-tonguedsalespitch.IfwewereabletoprovethatitworkedatAetna,wewouldbeabletoopenthedoortoits20-million-plusmembers,andleveragethecredibilitygainedfromthattoapproachalloftheotherinsurersandemployersintheUnitedStates.

Wearenowjustscratchingthesurfaceofthathugeopportunity.Inmanywaysthemarketisstillintheinnovationadoptioncurve,sowe’reseeingearlychoicesmadebythemoreinnovativecompanies.Butthemassemployerorthemassmarketofemployersorpayershasnotyetembracedthiskindofdiseaseprevention.Soit’sstillverymuchonthatadoptioncurve,andweseeanexplosiveamountofopportunity.ThewayIframeitupinmymindisthataNewtopiacustomerisanyone–aself-insuredemployerorafullyinsuredprivateorpublicpayorwhoownsariskpool.

Whenyoulookattheseindividualsatrisk,theyreallyrepresentamassiveunmitigatedliabilityforcompaniesandinsurers.Ifthey’vegotpeoplewhoarecosting$Xthat,ifleftuntreated,areabouttocauseanimpact$Y,youcanhaveamultipleofasmuchas10x.Wehaveasolutionthatcanhelpmitigatethatrisk,withprovenoutcomesandaperformance-basedmodelthatputsourrevenuesatrisktoguaranteeouroutcomes.Asthatbeginstopickupsteam,wearecurrentlyservicingorganizationsrangingfrom1,000upto250,0000-plusemployees/members.Imaginethecostofsupportingthatsizeofabasewithoutmitigation.

Lookingback,Iwouldsaywehavelearnedanawfullot.WhenIstarted,Iwasofthemindthat“ifyoubuildittheywouldcome”andIdidn’tnecessarilyreallythinkthroughthedistributioneconomics,orhowwewouldattractsomeonetoit,andthedifferencesbetweenwhatindividualswouldpayforontheirownversusifit’spaidforthem.Ihadnoappreciationforthat,andyettheentiresuccessofthebusinessrestsonthatunderstanding.

ThereisalsowhatIlearnedaboutmyself.Idon’tknowwhatgivinguplookslikeandIalsodon’tlikeproblemsthatcan’tbesolved.Soit’sjustaquestionofpoweringthroughit,learning,andbeingcomfortablebeinguncomfortable.Ijustdon’tknowhowtogiveup.AndI’myettoseeanyoneinthemarkettodoitbetterthanus.Sountilweseesomethingbetterinthemarket,we’regoingtokeepgoingforwardtoinspireindividualstolive

healthiereverydayandultimatelychangethehealthoftheworld.38”

InterviewwithMaureenO’NeilPresident,CanadianFoundationforHealthcareImprovement(CFHI)

“CHSRF(laterCFHI)waslaunchedin1996beforethecreationoftheCanadianInstitutesofHealthResearch(CIHR)(2000).CIHR’snewInstituteforHealthServicesandPolicyResearch(IHSPR)wasfundingappliedhealth-servicesresearchsimilartoours.ItwasalsobecomingincreasinglycleartousthatthebenefitsoffocusingdirectlyonimprovingservicedeliveryweregreaterthanfundingresearchthatmightbeaduplicationofCIHR’sIHSPRprogram.

ThepromiseoftheimprovementworkdonebytheteaminourEXTRAprogram(aleadershipprogramforhealthcareimprovement)showedthatwithtargetedassistance,changewaspossibleinashortperiod.Itwasalsoareminderthatthereremainsasignificantgapbetweenfundingforhealth-serviceresearchandimplementationoftheresultsofthatresearch.Noorganizationwasfundingthe“betatesting”ofthesenewideas.Overfouryears,between2008to2012,weshiftedfromresearchfundingtoworkingdirectlywithhealthsystemstohelpwithregionaltransformationandmoreeffectivetreatmentofchronicdisease.

WechangedournametotheCanadianFoundationforHealthcareImprovementin2012.In2014welaunchedourfirsttwoimprovementcollaboratives.OnewasbasedonanEXTRAprojectinManitobafocusedontheappropriateuseofantipsychoticdrugsinlong-termcarehomeswithdementiapatients.Reductionofinappropriatelyprescribeddrugsresultedinfewerfalls,morealertpatients,andnoincreaseinaggression.Italsosavedmoney.

TheotherimprovementcollaborativefromHalifaxintheAtlanticwascalledINSPIRED.INSPIREDprovidedCOPDpatientswithself-managementandadvanced-careplanningathomeratherthanleavingsuffererstorelyonunplannedEDvisitsandsubsequenthospitalizations.TheresultswereanROIof1to21.

These“spreadcollaboratives”providedopportunitiesforteamsacrossthe

countrywhowantedtolearnandadapttheseinnovationstotheircircumstances.(Latertheseimprovementswouldgotoscaleinseveraljurisdictions.)By2015,weneededtoclarifyourcommunicationsandmoreclearlyprojectprogrammingintothefuture.

VukaInnovationintroducedtheprinciplesofBusinessDesign.Inoneofthemostfruitfulexercises,wesharedstoriesofoursuccessfulprojects,mappingindetailwhatwedid,whowasinvolved,whattheirneedswere,andhowtheyweremet.Itwasessentiallyanexperiencedesignexercise.Thenwelookedatthemallandaskedwhatthecommonunderlyingcapabilitieswerewhichledtosuccess.Thathelpedusspreadandscalepromisinginnovationsinhealthservicedeliveryandcommunicateeffectively.

OneofourcorecommitmentstothetransformationoftheCanadianhealthcaresystemhasbeentoputpatientsandfamiliesatthecenter.Thishadbeenamajorfocusintworoundsofappliedresearchsupport,beginningin2010.Butwhat,weaskedourselves,doesthatactuallymeanforimprovementwork?ThisiswhereBusinessDesignhelpedusmorepreciselyarticulateouraspirationsandgoals,wheretoplay,andwhatisneededtowin.Oneofthemostimportantthingsbusinessdesigntaughtuswasthatifyouaren’tabletoarticulatewhothetruebeneficiariesare,youwon’tbeabletocommunicatehowyou’reuniquelydeliveringvalue.BymoredeliberatelyapplyingBusinessDesignprinciples,frameworks,andmethodologies,wealsolearnedthatwearenatural“businessdesigners”!

Doingthisworkwasacriticalsuccessfactorinour2015pitchtothefederalgovernmentforextendedfunding.Ourargumentsweresuccessful,andasaresultwesecuredthefirsttrancheofamultiyearinvestment.Thatpitch:Here’swhatwedo,here’swhywedoit,here’showwedecidewhoit’sfor,andhereisthemethodology.Itallladdersuptohowitwillbebetterforthepatient,becauseifyoureallyusethisdesign-inspiredapproach,you’vegottoknowwhoyou’redesigningfor.Wehaveusedthisapproachforeverysuccessivefundingpitch.

IfthatisyourNorthStar,youalsoneedtoaskabouttheecosystemneededtosupportit.That’swhyyouneedtocomebacktothosesamestrategicquestionsaboutwhatyouaretryingtodo,whatyouneedtodotomakeithappen,whyyou’redoingit,andwhoyou’redoingitfor.Thishasbeenour

mostimportantlearningfromembracingthepracticeofBusinessDesign.39”

LISTOFTOOLS&TIPSThefollowingtoolsandtipsareprovidedinparttwotohelpexplore,assess,andfocusyourthinking.

TheProposition:Synthesizingthevalueofyouridea

CapabilityRequirements:Deliveringthebreakthrough

Monetization:Exploringhowtocapturevalue

ValueExchange:Designingasustainablebusinessecosystem

Reciprocity:Balancingvalueexchangewithkeypartners

MarketSizing:Quantifyingthemarketopportunity

FinancialSensitivityAnalysis:Assessinguncertainty&risk

ActivitySystems(Future):Designingastrategytowin

ActivitySystemAssessment:Evaluatingyourenterprisestrategy

StrategicFocus:Clarifyingyourdefiningchoices

Experiments&RiskAssessment:Testingtheunknowns

QuickWins:Capitalizingonlearningoutofthegate

OrganizationalStructure:Teaminguptogetthejobdone

ManagementSystems:Designingsupportsystems&measuringwhatmatters

7LEADINGINNOVATION&TRANSFORMATIONENHANCINGLEADERSHIPTHROUGHBUSINESSDESIGN

HavingnowabsorbedtheprinciplesandpracticesofBusinessDesignandreadavarietyofstoriesabouthowthisdisciplinehasbeenputintoplay,youcanappreciatethatittakesleadershipatalllevelstodesignandactivatenewideasthatcreatenewvalue.Hereisastoryaboutacountrywithvisionandboundlessambitiontotransformbotheducationandindustryinparallel.40Itdemonstratesthevalueoftakingalong-termviewonbuildinginnovationcapacity.ThroughmyworkattheRotmanSchoolofManagement,IhadthehonorofworkingwithleadersinSingapore’sgovernment,education,andindustrysectors,andIwitnessedtheirremarkableadoptionofdesignprinciplesandpracticestounleashtheinnovationpotentialofthepeopleinSingaporeandfurtherfueltheirsuccess.

Singapore:MakingaBigBetonDesignTheleadersofSingaporetakeaproudstanceandoftenstate,“Weareasmallcountrywithlittlelandandresources,butwehavealotofbrightpeoplewithambitionandknow-how.Ourpeopleareourgreatestresource.”Overtheyears,Singaporehasconsistentlyaspiredtoplayanimportantroleintheworldbycapitalizingonthat.In2008,ImetPhilipYeo,ahighlyrespectedpublicfigureinSingaporeandchairofSRING–anorganizationdedicatedtoenablingsmallandmediumenterprisestoscaleuptheirsuccess.PhillipYeo’srequest:“TeachmycountryaboutBusinessDesign.”41

ThatwasthebeginningofanexcitingrelationshipwithSingapore.IncollaborationwithDebbieNgofSPRING,weco-createdapilotsessiononBusinessDesign,sponsoredbySPRING.OursharedgoalwastoexplorehowBusinessDesignmightenhancetheirpotentialforscaledsuccess.Thisinitial

sessionincludedorganizationsacrossavarietyofsectors,eachofthemaspiringtoscaletheirindividualenterprisesandcontributetoSingapore’seconomicgrowth.ItwasinthissessionthatImettheSingaporePolytechnic(SP)team.Afterthatinitialpilot,theSPteamgrabbedthebatonandtookaleadershiproleinbuildingtheirinstitutionalacumenandbringingBusinessDesigntoSingapore.

TheChallenge

Theaudaciousgoal:totransformeducationforanewgenerationofchangeagentsand,atthesametime,enableSingaporeanenterprisestoachievetheirambitiousgoals.SPtookonamandatethatwouldsetthecountryupforimportanttransformation.SPmadeacommitmenttotransformingbotheducationandindustrythroughBusinessDesign.

TheirJourneySP’sgoalwasnotjusttoaddafewnewcourses;theirambitionwastototallytransformeducationatSPtogroomfuturegenerationsandtoboostcollectiveprosperity.Herearesomeofthethingstheydidtoignitethattransformation.

SPwasfullycommittedtocapacitybuildingonagrandscale.Toignitethis,theycertifiedtwenty-fourSPfacultymembersacrossdisciplines.Thecertificationprogramentailed300hoursofclasstimetobringthemtoalevelofmasteryofBusinessDesign,designedanddeliveredbyourteamatRotmanDesignWorks.Throughtheprogram,theylearnedthetheoriesbehindBusinessDesignandappliedtheirlearningtotworoundsofprojectworkonbothindustryandeducationchallenges.Intandemwiththeircoursework,theyparticipatedinindustryworkshopstohonetheirfacilitationskills.Thatsetthemuptoindependentlydeliverongoingindustryprograms.

ThesecertifiedtrainersstartedtoconductworkshopsfortheircolleaguestotransfertheirBusinessDesignknowledgeandalsomentoredanewbatchofmultidisciplinaryfacultymemberswhoworkedonindustryprojects,usingtheBusinessDesignmodeltoscaletheschool’sdesigncapacity.ThatdemonstratednotonlythattheprinciplesandpracticesofBusinessDesignareapplicableinanydiscipline,butcanalsoeffectivelyserveasacommonlanguageincross-disciplinarycollaboration.InthewordsofTanHangCheong,42principalofSingaporePolytechnicatthetime,“Designisthelanguageofchange.”

Theythenappliedthisapproachtoinstitutionaltransformationintermsofspatialdesignforclassroomlearning.AsgoodBusinessDesigners,theybrought

stakeholders(i.e.,studentsandstaff)intothedevelopmentprocessfortheredesignoflearningspacesontheircampus.

SPappliedtheirlearninginre-imaginingtheireducationalmodelfor15,000students.Theyconductedneed-findingresearchwithstudentscreatedpersonasfortheirdiversestudentpopulation,andco-createdwiththefaculty’sstudentsonideasthatwouldhelpstudentstoenhancetheirlearningandsocialexperiencesatSP.

DuringSP’sEscapadeeventin2011,theco-creationprocesswaselevatedtoanewlevelthroughaone-daycampus-wideIdeafestwithmorethan400highschoolstudents.Studentsweregivenaspecificchallenge:Whatmightwedotobemoreenvironmentallyconscious?Studentsbrokeoutintoclassroomsacrossthecampusandwerefacilitatedthroughthedesignprocessbythecertifiedtrainerswhohadadoptedthisapproachtoproblem-solvingandinnovation.

Asanimportantpartoftheirstrategytopropagatethisnewwayofthinkingandshowcasestudenttalent,theyformedstrongindustrypartnerships.SPworkedcloselywithindustryonprojectsthatwouldgivestudentsanopportunitytoexercisetheirdesignmuscleandbringfreshthinkingtoindustry–whichcultivatedasharedlanguageandappreciationforthepowerofdesign.

Inparallelwiththeirinstitutionaltransformation,SPcommittedtoSPRINGtotrainhigh-potentialenterprisesinSingaporetofurtherbuildskillcapacity.Giventhelevelofmasterytheyhadestablishedthroughthecertificationprogramandtheirfacilitationtrainingintheearlyenterpriseprograms,SPtookontheroleofrunningBusinessDesigntrainingfororganizationsinboththeprivateandpublicsector.

Thisimpressiveefforttogroomanewgenerationandboosttheinnovationknow-howofindustrypartnerscreatedasymbioticrelationshipbetweentheschoolandindustry,effectivelygeneratingdemandforSPtalent.

TheOutcome

Today,SPisthehubofhigh-potentialtalentandindustrytransformation.Theyhaveignitedthepassionandpotentialofanewgenerationtocontributetoimportantandwell-recognizedinitiativesandawards,including:

CreationofaBusinessInnovationandDesignDiplomawithinthebusinessstream;

RedesignoftheSPEngineeringAcademy,wheredesignthinkingisusedextensively;

InfluenceonaninternationalengineeringinitiativethatoriginatedfromMITcalledCDIO(conceive,design,implement,operate)throughdesignthinking;

TrainingofSingapore’scivilserviceandregionalgovernmentbodies;ThePresident’sAwardfordesigninganewLibrary@Orchard,alibrarywithafocusondesign,lifestyle,andtheappliedarts;and

ThefirstASEANYouthAward,fortheireffortsinLearningExpress,aregionalinitiativetousedesignthinkingtomakeadifferenceindevelopingregionaleconomies.

Singaporedemonstrateshowdesigncanenhancetheskillsofanewgeneration,impactbusinessandpublicservice,andtransformaregionaleconomy!

“Wehavemademuchprogressovertheyears.Ithasbeenalongandfruitfuljourney!”43

JOHLIANGHEE,DEPUTYPRINCIPAL,SINGAPOREPOLYTECHNIC

Enterpriseevolutionandtransformationdoesnothappenatthewaveofawand.Itrequiresalong-termviewofthecapabilitiesandcultureoneaspirestoshape.Ittakesleadership,commitment,courage,andconviction,alongwithathoughtfulandwell-implementedplan.Ifyourealizethebenefitsofthisapproachthroughearlyexperienceandarekeentopursueitasabroaderquest,therearesomethingsthatarehelpfultoconsiderupfront.Youmaybeasking,Whatcanwedotoembedthesepracticesintoourenterprise?Howcanweenhancecollectiveperformance?

That’sthepurposeofthischapter–topresentsomeofthekeylearningfromothers’experienceinleadingnewwaysofworkingandrollingoutthispracticemorebroadlyacrossanenterprise.Thefollowingtopicsareexplored:

EnterpriseValue:ThevalueofembeddingtheprinciplesandpracticesofBusinessDesignintotheenterprise.

InnovationLeadership:Tendesign-inspiredprinciplesforenhancingyourleadershipcapacityandcreatingconditionsforinnovationsuccess.

TransformationTips:Tentipsforsuccessinyourjourneytobecomingadesign-mindedenterprise.

InspiringandPropagatingInnovation:Howtoinspireandpropagatedesign-inspiredinnovationthroughthequestionsyouask,thelanguageyouuse,thepracticesyouinstitutionalize,thespacesyoucreate,andtheknowledgeyouspread.

BuildingYourInnovationPipelineandEnterpriseCapacity:Waystoenhanceandsustaininnovation,includingdesigncapabilities,throughoutyourenterprise.

MeasuringPerformanceandTransformation:Howthisfitswithinotherhumanresourceandoperatingsystemsandpractices,howyoucanassessyourcurrentstateof“readiness,”andhowyoucandesignyourown“innovationdashboard.”

GettingStarted:FiveeasystepstoactivatethepracticeofBusinessDesign.

TheEnterpriseValueofBusinessDesignAdoptingBusinessDesignpracticescanleadtodeliveringgreatermarketvalue;itcanalsocreatevalueinsidetheorganization,withthevalueofthecoremethodsfromchapter1summarizedinFigure21.Forexample,prototypingcanallowyoutoexploremoreandbiggerideastocreatemarketvalue;itcanalsostimulatedialogueandsavemoneyinthedevelopmentprocess.Co-creationcanleadtomorerelevantandrobustsolutions;itcanalsohelpyouworkoutthebugsfasterandmorecost-effectively.Mostimportantly,allthesepracticesareapplicabletoeverystageofdevelopment,asnotedineachphaseofdevelopmentpresentedthroughoutthisbook.

EmbeddingBusinessDesignintoyourorganizationismuchliketheBusinessDesignprocessitself.Itinvolvesunderstandingyourpeople,definingalong-termvisionforthewayyouwork,puttingquickwinsandexperimentsintoplace,andfindingtherightwaytointegratethisapproachstrategically.BusinessDesigncaninjectyourorganizationwithanewwayofthinkingandworkingtogetherthatenhancesmarketsensitivity,constantlyevolvingvalueofferingsandbuildingteamalignmentandmomentum.Itcanserveasaboosterforenterprisecollaborationandperformancethatleadstoagilityandinnovativethinkingonaday-to-daybasis.

Fig.21ValuetoMarketandEnterprise

InnovationLeadership:TenDesign-InspiredPrinciplesThequestionIgetaskedallthetime–bybothseniorandemergingleaders–is“WhatcanIdotoactivatethispracticeandeffectivelyleadinnovation?”WhiledesignthinkingandBusinessDesignarerelativelynewnotions,innovationandleadershiparenot.BusinessDesignandinnovationleadershiparecloselylinked.Whilemanysuccessfulleadersofinnovationhaveanaturalbehaviorthat

inspiresotherstojointheirquest,IbelievethattheprinciplesandpracticesofBusinessDesignareinherentintheirsuccessandtiedtorecognizedtraitsofinnovationleadership.BusinessDesignismorethanacollectionofmethodsfordevisingnovelbusinesssolutions:it’savaluablepartoftheinnovationleader’stoolkit.

Whileitcertainlytakessomeonewithauthoritytorecognizeandsupportthedriveforinnovation,leadershipcancomefromanylevel.ThisismypersonallearningfrommydaysatP&Gandisreflectedinsomeofthestoriesinthisbook.Iamalwaysinspiredbymystudents:theyhaveafreshperspective,energy,andanambitiontomakeameaningfulmarkonsocietyandtheeconomy.Ibelievethatsomeonehastostepforwardandleadtheway.

Whenitcomestocultivatingacultureofinnovation,BusinessDesignhasadirectimpactonaleader’sabilitytodothefollowing:

1.Galvanizeteamsaroundacommonpurposeandgroundeffortsinameaningfulhuman-centeredproblemtosolve.Recognitionofhumanneedsandconnectingone’sworktoameaningfulquestgivesteamsandorganizationsasenseofpurposeandelevatestheiraspirations.Beingpurpose-drivenistheultimatemotivator.

2.Makeinnovationinclusiveandharnessdiversity.Inthebestcases,bigideasbuildthemselveswhenadiversityofperspectivesandknow-howisconsidered.Includingothersinthequestleadstobettersolutionsandbuildssharedownershipinthepathforward.

3.Createasafezoneforinnovation.Thiscanbeamatterofculture,space,structure,orforums–creatingtheconditionsunderwhichpeoplecansafelyshareinsights,ideas,andconcerns.Buildasafespace–physicallyandpsychologically–forotherstoinnovate.

4.Translateimaginedfuturesintosomethingtobuild.Whenpeoplereadwordsonapageorastrategydocument,theyhavetheirown“movie”intheirheads,andthatcancreatetensionsovertimeonhowthestrategyplaysout.ThroughBusinessDesign,thosemoviesaretranslatedintotangiblepossibilitiesthatapproachanewreality.Makingthevisiontangibleestablishesaconcretedestination.

5.Manageriskandinspirealearningattitude.Bigideasalwaysentailanelementofrisk.BusinessDesignnotonlyhelpsmitigatethoserisksthrougheasy,low-riskprototypingandlearningexperimentation;italsobuildstrustthroughempathyforothers’risktoleranceandtheneedformeasuredstepsforward.There’stoomuchcelebrationof“failure”inmymind.It’snotabout

failure;it’saboutlearningwhatdidn’tworkthroughexperimentssoyoucanmakeitworkbetterinthenextiteration.Learningthroughprototyping,feedback,andexperimentsmitigatesemotionalandbusinessrisk.

6.Effectivelyinterpretbothhumanfactorsandbusinessfactors.Dreamsandimaginationcanandshouldalsobeanchoredinhardfacts.AteverystageofBusinessDesign,theintuitiveandqualitativeinputsmustcombinewithdatatocreateconfidenceinthepathforward.Bridgingthesedualparadigmsbuildscredibilityandastrongerfoundationforprogress.

7.Movepeopleinsmallstepstowardabigvision.Bigideasareexcitingbutcanbeoverwhelmingwhenitcomestoimplementation.Takingmeasuredstepsbuildstrustinthegameplanandconfidenceinthepursuit.Takingsmallstepsthroughquickwinsandlearningexperimentsbuildsconfidenceandmomentum.

8.Haveandinspirecourage.Courageisaboutsteppingoutandputtingastakeintheground,makingitsafeforotherstopursuehighervalue.BusinessDesignfocusestheteamondefiningneedsanddistinctwaystofulfillthoseunmetneeds.Itcombineswhat’srightfortheendstakeholderwithwhat’srightforthebusinesstosurviveandthrive.Itentailsmakingdecisionsthataresimplytherightthingtodo.Couragecomesfromdoingtherightthing.

9.Inspirea“can-do”stancetoovercomeminorsetbacksinthepursuitofbigideas.Noteverythingwillgoexactlyasonewouldlikeinthepursuitofnewideas.Inevitably,therewillbethingsthatdon’tworkornewinformationthatentersthepicture,andyouhavetocoursecorrect.Thepracticeoffeedbackandexperimentationhelpcultivatealearningmindset.Atthesametime,setbacksinthepursuitofbigideascanbetoughonteams.That’swhensupportandencouragementaremostvalued.Positivityfuelscreativityandresiliency.

10.Haveagoalandaplantogetthere.Whilethedestinationmightbefuzzyatthefrontend,theworkofaneffectiveteamwillmakethesolutionandstrategyclearthroughtheprocess.BusinessDesignisalogicalapproachthatbuildsfrominsightstostrategy,enablingleaderstomapouthowtheteamwillgettowhereitneedstogo.Haveaprocessandbuildtrustinit.

Transformation:TenTipsforSuccessAsClaudiaKotchkasaysinherinterviewattheendofthischapter,“Ifyou’re

seriousabouttransformingyourenterprise,knowwhatyou’reinfor.”HerearemytoptentipstokeepinmindasyougoaboutembeddingBusinessDesignprinciplesandpracticesmorebroadlythroughoutyourorganization:

1.Makealong-termcommitment.BusinessDesignisnotaone-shotvaccinenoraneventthatyouengageinperiodically;it’sawayofthinking,doing,andcommunicatingeveryday,acrosseverydepartment.That’sanevolutionaryprocessthattakestime.

2.EmphasizetheunderlyingideologyofBusinessDesign.BusinessDesignisfundamentallyasystemofprinciples,mindsets,andpractices.Makingitpartofyoureverydaywayofthinkinganddoing,fromtoptobottomandacrossallareasofexpertise,willhelpyoufullyleveragetheinsights,imagination,andingenuityofyourpeople.

3.Engagealldisciplinesandlevelsoftheenterprise.BusinessDesignisinclusive.Itmighttakearelativelysmallgrouptodesignsolutionsorstrategy,butittakesanentireenterprisetodelivernewvalue.ForBusinessDesigntobeaneffectiveinnovationplatform,everyonemustseetheirroleintheprocess,aswellastherelevanceandvalueintheirowndiscipline,onaday-to-daybasis.

4.IntegratetheprinciplesofBusinessDesignintoyourexistingpractices.BusinessDesign,aspresentedinthisbook,isnotmeanttobeadisruption,butratheranenhancement.Itisnotmeanttodisplacecurrentsystemsandpractices,butrathertoenhancedevelopmentpracticesandbeintegratedintoyourmosteffectivedevelopmentandgo-to-marketsystems.

5.Buildyourinternalcapacitytoinnovate.Intheearlydays,youmightneedhelpfromexpertstogetyougoing–ortogetyouunstuckfromtimetotime.Theaim,however,shouldbetoenhanceyourskillsinternally.ToreallygetthevalueoutofBusinessDesignandtohaveitadoptedthroughoutyourenterprise,youmustacquireanddeveloptheskillsinternally.

6.Preparetoinvest.Ifyouwanttoboostenterprisereturns,youshouldbereadytoinvestenergy,time,andmoneyinallareasofyourorganization.Ifyouregularlyputamilliondollarstowardaninnovationconsultingprojectorintoasalesmeeting,isn’tinvestinginthecapabilitiesofyourentireorganizationanequallygoodinvestment?

7.Positionthispracticeasaneffectiveplatformforpersonalandbusinessperformance.BusinessDesignisawaytoboostperformanceandproductivityinoptimizingyourpathtocreatinggreatervalue,asnotedearlier.Enlistingwell-respectedandempoweredleaderswithvisionand

fortitudetoleadthetransformationwilllinkthisapproachtoperformance.That’swhatProcter&Gamble’sA.G.LafleydidwhenheappointedClaudiaKotchkatoleadthechargeforthecompany.

8.Alignyoursystemsandincentives.Chancesarethatattemptingtooperationalizeandsustainyourcapacityfordesign-inspiredinnovationacrosstheenterprisewillhaveimplicationsforyourmanagementsystemsandperformanceincentives.Consideryourinternalprocesses,thewaypeopleareevaluatedandrewarded,allowanceformoreexperimentationandlearning,andrewardsforcollaborationandoriginality.

9.Startnowwithatoughchallenge.BusinessDesignoftenstartsoffasaneffectiveproblem-solvingtool,evolvesintoastrategicplanningtool,andeventuallybecomesapartofyourculture.Startwithapilotgrouptodemonstratethevalue.Conductafewtrainingandinspirationsessions.Justgetstartedandgrowfromthere.

10.Inspire–don’tlegislate.BusinessDesignisnotaboutestablishingastrictprocessoranewsetofrules.It’saboutacultureshifttowarddeepervaluesandsharedprinciples.Itisaboutgivingpeoplelicensetoexplore,create,experiment,andlearn–bothonbigprojectsandday-to-dayproblem-solving.

Inspiring&PropagatingInnovationBusinessDesignisadisciplinethataimstoelevatethelevelofinnovationandincreaseyouroddsofsuccessinaconsistentanddeliberatemanner.Atthesametime,itsunderlyingvalueliesinmindfullynurturingaspiritofinnovationandcollaboration;thatunleashestheinnatecapacitytorisetoanychallengeacrosstheenterprise.Thishasbeenkeyinshapingthecultureofmanyhighlyinnovativeandsuccessfulenterprises.

Embeddingtheprinciples,mindsets,andmethodsofBusinessDesignbroadlywithinanenterpriserequiresahigh-levelcommitmenttobig-pictureprogramsandinitiatives,aswellasactivationofeverydaywaystoinspireandignitepassionfordesign-driveninnovation.Theseeverydaysignalscomeintheformofquestions,language,space,andpractices.

First,asknewquestions.Asadecision-maker,youcaninfluencethemotivationsandbehaviorsofyourentireorganization.Thetenquestionsdescribedbelowhaveworkedforotherstore-energizepeopleandfosteracultureofdesign-driveninnovation.Insteadofasking,“Canyouprovethiswillwork?”andtherebylikelykillinganynew-to-the-worldidea,considerasking

thesequestions:

1.Whatunmetneeddoesthisaddress?ArigorousapproachtoGear1willanswerthatquestion.Iftheopportunityisbasedontheuniversalneedsofyourtargetusers,it’shardtoargue.

2.What’sthevisionfortheuserexperience?Thisquestioncallsforacleararticulationofthepropositionandhowitmayeventuallyunfoldasamulti-dimensionalexperiencefortheuser,notjustadescriptionofanewproductorservicealone.Agoodfuturestorythatalignswiththepurposeandstrategyoftheenterpriseismorelikelytogetthe“greenlight.”

3.Whowasinvolvedinthedevelopmentofthisidea?Thisquestionwillreinforcetheprincipleofcross-disciplinarycollaboration,revealhowcomprehensivethedevelopmentprocesswas,andsignalhowmuchearlybuy-inandfuturetractionisassociatedwiththeidea.

4.Whatotherideasdidyouexplore?Multipleprototypinginevitablyleadstobigger,morerobustsolutions.Teamsthatexploreseveralideasbeforeconvergingononehavedemonstratedmoreopen-mindednessandrigorthanthosewhostartedwithoneideaandfocusedonmakingitperfect.

5.Whatdidyoulearnfromcustomers?Theco-creationprocessalwaysrevealsvaluableinsights.Customerfeedback,bothgoodandbad,isimportanttocapture.Itishelpfultodiscusswhatresonated,whatsurprisedtheteam,andwhatbombed.Co-creationisasignalthattheyhavestayedclosetothecustomerandaretrulycreatingforandwiththem.

6.Couldthiscreateasustainablecompetitiveadvantage?Atruebreakthroughwillsetyouapartandallowyoutocarveoutanewspacethatyoucanown.Theanswertothisquestionliesinbothacompellingideaandadistinctstrategytodeliverandownthatidea.

7.Whatdoyouwanttolearnasyoumoveforward?It’sOKtonothavealltheanswersor100-percentguarantees.Thatcomeswithnewterritory.Acknowledgingwhatisknown,andwhatisnot,ishealthy.Thatencouragesteamstopursuetheirpathwithalearner’smindsetandbepreparedtoiterateandadvanceideasalongtheway.

8.HowcanIhelp?That’sabigone.Sadtosay,manyemployeesseetheirseniordecision-makersasroadblockstobigideas.Greatleadersarehappytooffertheirwisdomandguidancetosupporttheiremployeesintheirpursuitofstrongvisionsandgivethemthespacetoexperimentandlearn.

9.Whatdidyoulearnthatmighthelpusrightnow?ThroughtheBusinessDesignprocess,teamswillmostlikelydiscovernewinsightsthatcanhelp

yourbusinesstoday,withimmediateimplicationsonpriorities.Forexample,youmayneedtorecastorenhancecurrent,short-terminitiatives,suchasapromotionoraproductlaunch.ThereisalwayssomethinglearnedintheBusinessDesignprocessthatinformsthehereandnow.

10.Whatshouldwestopdoing?Oneofthegreatbenefitsofthisprocessisthatitleadstoaclearerpictureofwhatreallymatterstothecustomerand,conversely,whatdoesn’t.Suchinsightcanleadtoaxingprojectsonyourto-dolistthatdonotcreatevalue.

Second,usedesignlanguageinyoureffortstoembedBusinessDesignintoyourenterprise.Asidefromthewaywecommunicateinourdecision-makingprocess,theeverydaylanguageweuseisasimplecuetoadesign-drivenapproach.Discussing“needs”and“experiences”andreferringto“prototypes”aresmallsignalsofadesignculture.Atthesametime,don’toverloadyourconversationswithalotofjargon–thatcanbearealturn-offforsomepeople.

Third,createspacesthatareconducivetocreativecollaboration.OneofthefirstthingsconvertsinBusinessDesigndoiscreateavisibleandaccessiblespacewherecommunitycollaborationandinnovationcantakeplace.Youmaybeginbyreorganizingandredecoratingonemeetingroomtosetyourteamupforamorecreativeandproductivecollaboration.Consideraspacethatismoreopen,hasfeatureslikewhiteboardsandlargeworksurfaces,andisstockedwithmaterialslikelargerollsofpaper,stickynotes,andpossiblysomeprototypingmaterials.Eventually,youcanconvertmorespacesforcreativecollaboration,leavingtheofficesandcubiclestoadministration.Thosewhohavetakenthisphilosophyalltheway,suchasdesignfirmsanddesign-drivencorporations,havecarrieditthroughouttheirenterprisespace.

Andfinally,youwillwanttomodifyyourpracticeswherethereisabenefittodoingso.TherearesomanyeasyandproductivewaysyoucanworktogethertoadvanceyourbusinessthroughBusinessDesign.Herearesomesimplewaystogetstartedthathaveworkedforothers:

Spendfacetimewithyourkeystakeholders.Whilemarketresearchwillalwaysplayaroleinbringingdimensiontosegments,trends,andopportunities,spendingtimewithpeopleandlisteningtotheirstorieswillgiveyouamoreholisticunderstandingofthemandgreaterinsightintotheirneeds.

Haveacharretteinsteadofameeting.Acharretteisadesignsessioninwhichchallengesaresolvedonthespot.Calltogethertherightpeopleandorganizeanagendainwhichyoudeconstructaproblem,brainstormsolutions,andbuildout

aprototypeortwo.Insteadofreviewingwhatyousaidyouweregoingtodointhelastmeeting,reviewingwhatyou’vedonesincethatmeeting,anddiscussingwhatyouwilldobeforethenextmeeting,whynottacklethejobonthespot?Therewillalwaysbeaplaceforstatusmeetings!

Spendaslittlemoneyaspossibleonearlyprototypes.Low-resolutionmock-upscanoftenbequiteeffectiveinhelpingtoconveyyourearlyideas,atvirtuallynocost.Trylimitingyourearlyprototypingbudgettotwentydollars.People,includingcustomers,lovegettinginvolvedinthedevelopmentprocessandaremorelikelytogiveyouvaluableearlyfeedbackonanideawhenyouhaven’tspentalotofmoneyonit.

Considermultipleoptions.Beforeyoucommittoonesolutionoridea,alwaysconsiderotheroptions.IgobytheRuleofThree:generatethreewaysofsolvingaproblemoraddressinganeed,compareandcontrastwithanopenmind,andthencreatethebestsinglesolution.Mostoften,thesolutionwillbenoneoftheoriginalthree,butrathersomecombinationofthem.

Visualizemore.Thefastestwaytocommunicateisoftenthroughvisualization.Whetheritisdrawingadiagram,mappingasystemofinterrelatedpartsandforces,orcreatingaprototypeorexperiencetimeline,visualizationbringsclarityandfocustocommunicationsandcollaborationefforts.

Fostercollaborationacrossfunctionsandbusinessunits.Withthedepthoftalentandresourcesthatmanylargeenterpriseshave,itisironicthatsometimesthebiggestbarrierstoinnovationand,moreimportantly,activationarethestructureoftheorganizationitself–theinvisiblewallsbetweendreamsandrealization.Oftenabigideacallsfordrawingresourcesfromandleveragingstrengthsacrossdivisions.Yetwhenitcomestimetoactivateaninitiative,thesedivisionsmaywonderwhoownstheinitiativeandhowitwillplayoutwithintheorganization’scurrentstructure.Thisstruggleiscommoninlargeenterprisesandmustberecognizedfromtheoutsetofadevelopmentproject.

BuildingYourInnovationPipeline&EnterpriseCapacityThereareseveralthingstoconsiderwhenbuildingyourcapacitytoinnovate

throughdesign-inspiredpracticeslikeBusinessDesign:sourcinginnovationexpertise,buildinginternalcapacity,andensuringtherightsupportsystemsandprocessareinplace,includingrewardingpeopleforcontributingtoinnovationsuccess.

Figure22showssomeoptionstoconsiderinbuildingyourinnovationcapacityandpipeline:

Fig.22SourcesofExpertise

Hireanoutsideconsultanttodoitforyou:Forthosethatsimplydon’thavethecapacitytotakeonabiginnovationquest,hiringoutsideinnovationexpertsisanoption.Therewasatimewhenorganizationswerepayingalotofmoneyinretainerstooutsideconsultantstocomeupwiththe“nextbigidea.”However,completeoutsourcinghassomedrawbacks:itcanbeexpensive,maynottranslateintoactivationbecauseideasdon’tplugbackintotheorganization,andmaynotcultivateadeepsenseofownershipinsidetheenterprise.That’swhymoreandmoreenterprisesarelookingtobuildinternaltalent.

Tapintoexternalinnovatorsandentrepreneurs:Anextensionofoutsourcinginnovationistocollaboratewithexternalsourcesofnewideasfromstart-upsand“disruptive”inventorsandentrepreneurs.Procter&GamblerealizedthevalueoftappingintoexternalinnovatorsdecadesagothroughitsConnect&Developprogram,inwhichitworkedwithinventorstocommercializenew

technologies.Morerecently,manyorganizationshaveestablishedamoreformalalliancewithentrepreneurs.Bytappingintofreshideastoaccelerateandscaleideasthatfulfillthecorporateambition,theycreateamodelinwhicheveryonewins–thestart-up(throughaccesstoscalability),theenterprise(throughcreationofnewvalueforthemarketandtheenterprise),andmostimportantly,theconsumer(forwhomunmetneedsareaddressedinanewandnovelway).

Setupaninnovationlabasacenterofin-houseexpertise:Innovationlabsandincubatorshavebeensetupinorganizationsallovertheworldinrecentyears,withgreatintentions.Centralizedlabscanbehighlyproductive,asisthecaseforFidelityLabs,butoftenfailforafewreasons.First,theyareoftendisconnectedfromtherestoftheenterpriseandareineffectiveinbringingaboutenterprise-wideinnovationbecauseoflackofvisibilityandenterpriseengagement.IamshockedbythenumberofexecutivesImeetwhohavenoideawhatisgoingonintheircentrallabs.Second,theyarenotalignedtotheoverarchingenterprisestrategyorbusiness-unitgoals.Third,theyfailtodeliverareturnoninvestment.Thesearethe“trophylabs”thatmightlookimpressivetoinvestorsandmediabutcan’tdemonstratebusinessimpact.

Createaninternalpoolofskilledfacilitatorsor“catalysts”:Inthisapproach,youtrainskilledfacilitatorstogooutintotheenterprisetohelpteamsunlockfreshthinkingtodesignanddelivernewideastothemarketplace.Ambitiouspeopledon’toftenlikewastingtimeontheoreticalexercises.Forexample,whileProcter&Gambleestablishedateamoffacilitatorswithdeeperskills,theyalsobroughttheentireenterprisealongonthejourneytodemonstratehownewapproachescouldapplytotheirbusiness.BothProcter&GambleandIntuithavescaledthevalueofdesign-inspiredmethodsandmindsetsbytrainingpeoplewhoarebothskilledatandmotivatedbyhelpingothersdriveinnovation.Expertsoutsidetheenterprisecanhelptrainfacilitatorstounleashthecapacitytocreatenewsolutionsinternally.

Expandcapacitybyembeddingskillsacrosstheenterprise:Ifyourgoalistotransformyourwaysofworkingtogetherandenhanceyourcultureofinnovation,youmightdecidetoenhanceskillsonabroaderbasissoeveryonecanparticipateinorleadtheinnovationprocessinsomeway.Ifyouchoosetoengagetheenterpriseinskill-buildingmorebroadly,Ihavefoundthatthemosteffectivewaytoteachnewwaystosolveproblemsisthroughappliedlearning–havingthemlearnnewskillsbytacklingtheirtoughestchallenges,asskillfulfacilitatorsdo.Inthisscenario,morepeoplelearnto“speakthelanguage”and

benefitfromthebasicprincipleseveryday.Todothat,youmightbringinexternalexpertstotrainthetrainersandbuildinternalskills.

Asyoudefineyourenterprisestrategytoboostinnovationcapacity,ithelpstohaveexternalexpertsandmentorsassoundingboardsandcoaches.Peoplewhohaveperspective,know-how,andafewbattlescarsfrompioneeringnewwayscanmakeyoumoreawareofwhatcanhelpandhinderyourprogress.Thisassistancecantaketheformofaformaladvisoryboardoraninformalnetworkofpeersandmentors.

MeasuringPerformance&Transformation:InnovationDashboardThebigquestionallperformance-orientedandanalyticallymindedcompanieshaveis,“Howdoweknowoureffortsaregoingtopayoff?”Insomeways,youmayjustintuitivelybelievethatthisallmakessense.Atthesametime,youmightalsoliketohaveahandleontheeffectivenessandimpactofyourprogramsandhavesomeindicationthatyourinvestmentsinbusinessandpeopledevelopmentarepayingoff.Forthis,Isuggestyoucreateyourown“innovationdashboard.”SeeFigure23.

Herearesomesuggestionsonmeasurestoconsiderwhencreatingyourenterprisedashboard,basedonthelearningofmanywhohavegoneonthisjourney:

Innovationreadinessassessmentandtracking:Assessmenttoolscanhelpmeasurethestrategicalignment,innovationpractices,andeffectivenessoftheprocessesandsystemsthatshapeyourbusinessperformanceandyourinnovationculture.Asnotedearlier,atVukaInnovation,we’veusedonesuchtooltodiagnose,enhance,andtrackinnovationreadiness.Youmayalsohaveyourownindicatorsofwhatconstitutesinnovationprogressandsuccess.Itisimportanttodefineandassessthesealongthewaysothatinnovationcapacitycanbetrackedandstrategicallyadvanced.

Engagementandjobsatisfaction:Engagementiskeyinenterpriseproductivity.Asenseofpurposethatcomesfromaninspiringvisionandanauthenticconnectiontothecustomerhasthepotentialtoenhanceintrinsicmotivation.Collaborationbringsteamstogetherandgiveseveryoneavoice.

Unleashingcreativitycanenergizeteams.Progressandsharedsuccesscanenhancejobsatisfaction.AlloftheseintentionsareinherentinthepracticeofBusinessDesign.

Outputandbusinessperformance:Drivingprogressandbusinessresultsisinextricablylinkedtohowstrategiesandplanscascadedownthroughouttheenterpriseandbuildyourpipelineofpromisingnewinitiatives.Attheendoftheday,whatyouproduceismostimportant.Monitoringyour“yield”intermsofinitiativesthatgotomarketandcreatenewvalue,aswellastheirprojectedvaluetotheenterprise,canhelpyouassessyourreturnoninvestmentandprioritizeefforts.Includingan“innovationpipelinetracker”inyourdashboardwilladdanimportantdimensiontoit.Whilebusinessresultsareoneimportantmeasureofperformance,bigideasoftentaketimetorealizetheirfullpotential.Performancecanalsobemeasuredintermsofcustomersatisfaction,loyalty,andreferralstoothers.Performanceindicatorsthatyoubelievetobecriticaltoyoursuccesscanbebuiltintoyourinnovationdashboard.

Fig.23InnovationDashboard

Personal360°assessments:Thisincorporatesperformanceonapersonnellevel–howwellanindividualperformsinhisorherjob.Forexample,BusinessDesignisverymuchaboutteamproductivityandeffectiveness.Therefore,besuretosolicitteamfeedbackoncontributionsandleadershipwithinteams.Justasintheco-creationprocess,feedbackisthesourceoflearningandadvancement.

GettingStarted:DefiningthePathForwardTherearemanywaystogetstartedinyourjourneytoboostyourinnovation

capacity.Herearefiveeasystepstogetyougoing,usingBusinessDesignprinciplestodefineyourpathforward:

1.Assesswhereyouareandwhereyouwanttobeinfiveyears.Takestockofthemarketcontextandyourcurrentstate,anddecidehowyourdesiredfuturestatewilllook.

2.Taketimetodeeplyunderstandyourpeopleandenterprisesystems.Createtheconditionsforsuccessbystartingwithanappreciationforyourcurrentculturalvaluesandwaysofworking.

3.Explorewaystoboostyourcapacityandperformance.Considerwaystosparkanewwaytowork.Youmightchoosetojusttrynewwaysasanexperimentorembarkonanenterprise-widetransformationprogram.

4.Determineyourstrategyandroadmaptogetthere.Makechoicesonhowyouwillgetthere.Recognizethatbigideastaketime,perseverance,andalearningmindset.

5.Startanywhere.Mostimportantly,getgoing.Demonstratethevalueofadesign-inspiredapproachthroughaprojectonanunresolvedchallengeorafuzzyopportunitythatyoudon’tknowhowtokick-start.

EveryenterprisewilldesignitsownjourneyinBusinessDesign.Iamhopingthelearningfromothers,aspresentedthroughoutthisbook,providesyouwithsomehelpfulconsiderations.AsInotedinmyintroduction,buildingacultureofinnovationthroughthepracticeofBusinessDesignisajourneyintransformingthewaysinwhichweworkand,ultimately,createandsustainnewvalueinthemarketplace.Mayyouenjoythejourneyandrealizegreatsuccess!

ThefollowinginterviewwithClaudiaKotchka,formervice-presidentofDesignInnovationandStrategyatProcter&Gamble,providesinsightforthosewhoaimtofullyleveragethepowerofdesignandrunwithitinabigwayintheirorganizations.IaskedClaudiaKotchkawhatadviceshehasforbusinessleaders.Here’swhatshesaid.

InterviewwithClaudiaKotchkaVice-PresidentofDesignInnovationandStrategy,Procter&Gamble(2000–2009)

“Myfirstpieceofadviceis,knowwhatyou’reaskingfor.Myexperienceisthatsomepeoplesaytheywantit,butwhentheyrealizeit’saprettybigculturechangethatinvolvesallthedisciplinesintheorganization,they’renotreallysosure.Sosteponeisaboutknowingwhatyou’reaskingfor.

Mysecondpieceofadviceisshow,don’ttell.Don’tspendalotatimetryingtosellitortryingtoexplainit.Runsomepilots,getitstarted,andgo.ThatwasexactlyhowyouandRoger[Martin]designedalltheworkshoptraining.Thereweren’talotofPowerPointpresentations.Itwasjustgo,divein,experienceit,whichscaredtheheckoutofeveryoneatfirst.ButIrememberonecomment:“ThisisthebesttrainingI’veeverattended.BecauseI’mbeingtrainedanddon’tknowit.Butatthesametime,I’msolvingarealproblem;aproblemthat’simportanttomybusiness.”Itisanabsoluterolemodelfortraining–they’reworkingonarealproblem.It’snotfake,sothey’reinterested.Theyhaveastakeinsolvingtheproblem,sotheyshowup.Andtheyhavenoideawhatthey’regettinginto,butwow,whatamazingresults.Ican’tsayenoughgreatthingsaboutit.It’sincredible!Onceyouexperienceit,youcomeouttransformed.Andthat’strueforeverysinglepersonwhoexperiencesit.

ThethirdbitofadviceIwouldgiveis,gethelp.Ialwaystellpeople“Don’ttrytodoityourself.Youdon’tknowhowtodothis.Andyoudon’thaveto.Youjusthavetomakesureithappensintheend.”Igothelpfromlotsofpeople,includingyou[theteamattheRotmanSchoolofManagement].WhenIrealizedIneededtoteachmanagementandstaffatP&Gwhatweweredoingwithdesign,IrecognizedIdon’tknowhowtoteach.I’mnotaneducator.NooneatP&Gisaneducator.SoIdecidedtogethelpfromthebest–theexperts

ateducationalinstitutionsthatknowhowtoteach.44”

PartTwo

ToolKit

Thissectionpresentssomeofthemostpopulartoolstoapplyincreatingnewvalueforthemarketandyourenterprise.Theserepresentthecoremethodsusedinthecasestudiesinthisbook.Thesepracticaltoolsandtipscanhelpyougetyoustarted,oryoucanaddthemtoyourexistingrepertoireofinnovationmethods.

Fig.24VisualizationofToolsandTips

PARTTWOCONTENTS

PREPARINGFORYOURQUEST

FramingYourAmbition:Linkingthepasttothefuture

EnterpriseReadiness:Assessingyourenterprisecapacitytoinnovate

TeamDesign:Identifyingkeycontributors

TeamProfiling:Aligningthinkingpreferences

TeamMapping:Identifyingtalent,roles,&passions

TeamBuilding:Engaginginfunwaystowarmuptowork

Facilitation:Gettingthemostoutofteamtime

TeamCharters:Creatingasharedvisionfortheteam

ProjectBrief:Framingyourquest

ProjectBlueprint:Mappingthedevelopmentprocess

Communication&EngagementPlan:Designingforinternal&externalstakeholderengagement

CONTEXTUALIZINGYOURCHALLENGE

STEEPAnalysis:Identifyingfuturemarket-basedopportunities

LandscapeofPlayers:Identifyingfuturefriends&foes

ScenarioPlanning:Exploringfuturepossibilities

StakeholderMapping:Identifying&connectingpeople

ActivitySystems(CurrentState):Visualizingyourcurrentstrategy

ActivitySystems(Competitive):Visualizingcompetitivestrategies

ActivitySystemAssessment:Assessingcurrentcompetitiveness

StrategicChoiceConsiderations:Framingupcurrentchoices&futureconsiderations

GEAR1:EMPATHY&DEEPHUMANUNDERSTANDING

RolePlaytoEmpathize:Livingtheexperience

Need-FindingResearch:Designingadisciplineddeepdive

Observation:Understandingcontext&behaviors

UserJournals:Understandingtheuserjourney

PhotoElicitation:Discoveringunmetneedsthroughstorytelling

Listening&Recording:Gettingthemostoutofinterviews

MindMapping:Makingconnectionstounderstandthewholeperson

SubjectProfiles:Synthesizinganinterview

DiscoveryExchange:Makingconnections&buildingaframeworkfordataanalysis

MotivationalMapping:Searchingfordeepermeaning

Need-Mining&Analysis:Turningsoftdataintoharddata

NeedArticulation:Definingaplatformforinnovation

NeedValidation:Dimensionalizingtheopportunity

Personas:Creatinghumanarchetypes

CurrentJourney:Contextualizingtheopportunitythroughstorytelling

DesignCriteria:Synthesizingtheprinciplesforsolutiondevelopment

GEAR2:CONCEPTVISUALIZATION

Ideation&ConceptHarvesting:Exploringnewpossibilities

RolePlaytoIdeate:Empathizingtogeneratesolutions

Metaphors:Stimulatingimagination

IterativePrototyping:Makingtheabstractconcrete

ExperienceMapping:Designinganew&idealexperience

Storyboarding:Capturingthestoryinkeyframes

RolePlaytoAdvanceIdeas:Playingouttheexperiencetoclosethegaps

In-PersonFeedback:Solicitingfeedback&co-creating

VirtualFeedback:Scalingfeedbackthroughtechnology

GEAR3:STRATEGICBUSINESSDESIGN&ACTIVATION

TheProposition:Synthesizingthevalueofyouridea

CapabilityRequirements:Deliveringthebreakthrough

Monetization:Exploringhowtocapturevalue

ValueExchange:Designingasustainablebusinessecosystem

Reciprocity:Balancingvalueexchangewithkeypartners

MarketSizing:Quantifyingthemarketopportunity

FinancialSensitivityAnalysis:Assessinguncertainty&risk

ActivitySystems(Future):Designingastrategytowin

ActivitySystemAssessment:Evaluatingyourenterprisestrategy

StrategicFocus:Clarifyingyourdefiningchoices

Experiments&RiskAssessment:Testingtheunknowns

QuickWins:Capitalizingonlearningoutofthegate

OrganizationalStructure:Teaminguptogetthejobdone

ManagementSystems:Designingsupportsystems&measuringwhatmatters

PREPARINGFORYOURQUEST

Thesetoolsprovidewaystoframeyourprojectinthecontextofyourenterprise,designyourprojectroadmap,andidentifytherightpeoplefortheinnovationjourney.Theseareimportantconsiderationsinestablishingtheconditionsforsuccessfromthestart.Theoutcome:Commitmenttoasharedambitionthatwillsetyouupforaproductivepursuit.

FRAMINGYOURAMBITIONLINKINGTHEPASTTOTHEFUTURE

WHYDOWEDOTHIS?Tolinkyouraspirationstothecurrentdynamicsofyourbusinessandalignonwhatsuccessmightlooklikeforyourenterprise.Thispreliminaryscopingexercisewillhelpframeyourambitionsandchallengesandalignyourquestwiththeoverallenterpriseambitionandstrategy.Itwillmakeyourquestrelevantandvaluabletoyourenterprise,asapreludetoyourprojectbriefandyourinitialbusinesscase.

HOWCANYOUDOTHIS?Thefollowingareimportantconsiderationstoappreciateattheoutsetofyourpursuit:

1.Stateofthebusiness.Understandthecurrentstateofthebusiness–intermsoffinancialperformanceandmarketimpact.Areyoustrugglingoronaroll?Appreciatesuccessfactorsandidentifybarrierstofuturesuccess.

2.Leadershipaspirations.Appreciatetheoverarchingvisionandaspirationsfortheenterprisetohelpcontextualizeyourpursuitinameaningfulway.

3.Enterprisegoalsandstrategy.Understandthemeasurablegoalsoftheenterprise,thecurrententerprisestrategy,andwheretheorganizationcurrentlyfocusestimeandeffort.Definehowyourquestrelatestothatstrategyandhowitwillcontributetodeliveringonyourenterprisegoals.

4.Enterprisepriorities.Identifythemostimportantinitiativesunderwayandhowyoureffortscomplementthemandcreatenewvalue.OrganizationsinmostneedofBusinessDesignarethosethatspendresourcesontoomanyscatteredprioritiesorneedtorecalibrateprioritiesforgreaterreturn.

5.Thewaypeoplework.Identifytheprocessesandsystems(formalandinformal)thatguidehowpeoplespendtheirtimeandeffort.Theseingrainedprocessesandsystemshavegottenyoutowhereyouarebutcaneitherhelporhinderyouinthepursuitofnewideas.Recognizingcurrentwaysofworkingrevealswhatyoucanleverageorwhatyoumightneedtoredesignupstream.

6.Enterprisevaluesandculture.Identifywhatvaluesdrivecurrentdecision-makingandhowthesevaluesdefineyourculture.Builtandreinforcedovertime,thesefactorscanhaveanimportantimpactonhowyoumanagepotentialchangeinbehaviorsandattitudeswhencreatingadesiredfuture.

7.Aspirationsfortheproject.Synthesizeyourinsightsandarticulatehowyourquestwillfitwithandcontributetoalloftheabove.Thiswillmakeyourquestmorerelevantandvaluabletotheenterprise.

8.Visualizesuccess.Createapictureofsuccessinbroadterms–howtheorganizationwilllookandfeelwhenyou’vereachedyourfuturestate.

TipsLinkaprojecttotheenterprisegoalstohelpjustifyputtingtimeandresourcesintoyourquest.

Solicitinputfromexecutivesponsorstogainvaluableperspectiveandsupportfromthestart.

Becandidaboutwhatyoucanleverageandwhereyouwillhavetonavigateachangeinmindsetsorbehaviorstoadvanceyourquest.

Bevisual!Visualizingyour“futurestate”canbeanengagingandimaginativewaytocaptureyouraspirations.Havingsomebigpaperandmarkershelps!

WHATMIGHTTHISLOOKLIKE?Inadditiontocapturingasnapshotofenterprisecontextoutlinedabove,itisoftenmotivatingtoimagineyour“destination”asanorganization.Asanexample,adevelopmentteammightcapturetheiraspirationsinavisualizationexerciseof“Whatwillsuccesslooklikeforusasanorganization?”Imaginingyourdestinationallowsthecoreteamtoexpresstheiraspirationsinametaphoricaldrawingandtelltheirenvisionedfuturestory.

ENTERPRISEREADINESSASSESSINGYOURENTERPRISECAPACITYTOINNOVATE

WHYDOWEDOTHIS?Tomeasure,assess,andevaluatethedegreetowhichtheenterpriseisreadytogenerateanddeliverinnovationonasustainedbasis.Quantifyingenterprise-wideperceptionsofthecurrentstateofreadinesswillhelptostimulatedialogue,identifywaystoenhancereadiness,andbenchmarkfutureprogress.Forexample,theVukaInnovationReadinessSurvey45citedinchapter2isonetoolthatbenchmarkscurrentperceptionsofstrategicalignment,waysofworking,supportingsystems,andculture–allfactorsinyourabilitytoadapttoanever-changingbusinessenvironment.Moreonthatinstrumentisavailableonlineasfraserdesignworks.com.

HOWCANYOUDOTHIS?Herearesomesimplestepstomeasureandassessyourreadiness:

1.Selectyoursurveyinstrumentandidentifyparticipants.Thereareavarietyofsurveyinstrumentsthatmeasureenterprisereadinessasavaluablediagnosticofyourcurrentstate.Youcanconductthissurveywithinasmallergrouptostimulateteamdialogue,orrunamoreextensiveenterprise-widesurveytoascertainamorecomprehensivepictureoftheperceptionsofenterprisereadiness.

2.Runthesurvey.Inviteotherstoparticipateinthisonlinequestionnaire.Foratrulycompletepicture,includetheleadership;allemployeesacrossfunctions,levels,andgeographies;andyourboardofdirectors.

3.Reviewyourenterpriseprofileforstrengthstoleverageanddevelopmentopportunities.Analysisconductedonsurveyresultswill

revealinsightsaboutyourabilitytorespondtomarketopportunitiesinastrategic,unified,andproductivewaytosustaina“valuecreationadvantage.”

4.Engageothersinadialogueaboutopportunitiesandwaystoenhanceyourinnovationreadiness.Internalworkshopsgivepeopleanopportunitytocontributeinsightsonwhathelpsandwhatconstrainsyourcapacitytoinnovate,aswellasideasonhowtobuildamoreinclusivecultureofinnovation.

5.Establishprioritiesandagameplantoactivate.Fromyourdiscussions,youwillidentifyeasyquickwinsandlonger-termdevelopmentopportunities.Thesemayincludeclearercommunications,newprinciplestoputintopractice,newwaysofworking,skill-buildingprograms,new“teaming”practices,ornewrewardsystems.Thedatawilltellyouwhatyoucanleverageandwhereyoucanimprovethemost.

6.Reassessatregularintervalstotrackprogressandmakecoursecorrections.Setgoalsondesiredareasofimprovement.Aregularcheckuponreadinesswillenableyoutocontinuetoboostyourinnovationreadinessandperformance.

TipsThissurveycanberunwithinaselectgroupasameanstostimulatedialogueandalignonyourcurrentstateandfutureopportunities.Expandinginputtoyourbroaderorganizationwillgiveyouamorecomprehensivepictureofperceptionsacrosstheorganization.

Considerwhatmanyorganizationsface:“surveyfatigue”andpressingdemandsontimeandenergy.Timingofthesurvey,motivationtoparticipate,andampletimetocompletethesurveyareimportanttokeepinmind.

Useresultstoengageothersinadialoguetoimprovereadiness,includingday-to-daypracticesandmindsetsaswellasmoreformalstructuresandprocesses.

WHATMIGHTTHISLOOKLIKE?IntheHSOtransformationpresentedinthisbook,theVukaInnovationReadinessSurveywasusedtomeasurethereadinessacrossalldimensionsof

innovationsuccessandhelpedtoidentifyopportunitiestoboostinnovationacrosstheenterprise.OverthecourseofHSO’sstrategictransformation,itimplementedacapacity-buildingprogramtoembedBusinessDesignintoitswaysofworking.Togetherwithaninspiringstrategy,theseeffortsresultedinaboostinemployeeperceptionsononeoftheirKPIs–“Ourenterpriseisinnovative”–from50percentinagreementto66percentinagreement.

TEAMDESIGNIDENTIFYINGKEYCONTRIBUTORS

WHYDOWEDOTHIS?Toestablishamultidisciplinaryteamthatwillbringadiversityoffunctionalexpertise,perspectives,andskillstothequest.Settingthefoundationforfruitfulcollaborationattheoutsetoftheprojectwillensurerichthinkingandoutcomesandwillbuildmomentumoverthecourseoftheproject.Thisactivitywillhelpyoutoidentifywhocancontributetothedevelopmentprocessasthebasisforresourcecommitment,byhelpingyouanswerthefollowingquestions:

Whatfunctionalexpertiseandskillswillberequiredtocreateandactivateacomprehensivesolution?

Whoarethepeoplewhowillbecriticaltocreatinganddeliveringthesolution?

Whoelsemayinspireorsupportusinourquest?

HOWCANYOUDOTHIS?1.Stateyourchallengeandhowitrelatestoyourcurrentbusiness.While

theopportunitywillbecomemoreclearlydefinedasyoudevelopyourprojectbrief,theingoingchallengewillgenerallypointtotheexpertiseyouwillwanttoenrollfromthebeginning.

2.Consideradiversityofskillsandperspectives.Adiverseteamwillbringrichnesstotheprocessandopenyourenterprisetopossibilitiesandsolutionsthatmaybefarfromtheobvious.Thisdiversitywillalsopositionyoutogetthingsdoneinawell-orchestratedmannerandcreatemomentumasyou

moveforward.Diversitycomesinseveraldifferentways;theintentistoharnessthemostvaluableperspectives,insightsandknow-howandbuildcommitmenttodeliveringontheoutcomes.Itiseasytostartwiththeintactteam,whichisusedtoworkingtogether.Tofurtherexpandyourthinking,considerthesegeneralcategoriesofdiversity:

Functional:Harnessingdiversefunctionalexpertisefromthestartofaprojectenablesyoutoobtaintoamorecomprehensivebreakthroughsooner.

Skillsbased:Itishelpfultohavepeoplewhoareparticularlygoodatprojectmanagement,ideation,visualization,synthesis,analysis,communication,andotherkeyskillsthatwillenhanceprogressalongtheway.

Geographical:Acrossregionswithinacountryandacrosscountriesaroundtheworld,peoplehavevaluableperspectivesontheirlocalbusinessorculture.

Generational:Engageemergingleaders:theyhavefreshinsightsandenergy.Inmanycases,theywillhavetoownthefuture.Intentionallydesigntheteamtonotonlydiversifyexpertise,butalsobalancethewisdomoftheseasonedexpertswiththeperspectiveof“emergingbrightstars”intheorganization.

Cultural:Therearemanyothercharacteristicsthatoffertheopportunitytodiversifyperspectivesandbringinpeoplewhocandelivervaluefromtheirexperiencesandunlockfreshthinking.Whomighthelpaddauniqueperspectivethatcanhelpusseetheworldindifferentwaysandavoidhomogenousthinking?

External:Oftenitmakessensetobringinsomeonefromoutsidetheenterprise,eitheraspartofthedevelopmentteamorasasoundingboard.Forexample,ithelpstohaveapatientembeddedinthedevelopmentteaminahealthcareproject.Thequestiontoask:Whocanshakeupourthinking?

3.Definethecoreteam.Identifythecoreinterdisciplinarygroupofindividuals,beginningwithintactteammembers,whohaveavestedinterestintheproject.Considerwhoelsewilladdvaluable,freshinsights,andknow-how,bothinternallyandexternally.Alsoconsiderkeypartnerswhowillbecriticalincreatinganddeliveringpossibleoutcomes(e.g.,designagencyorotherstrategicpartners).

4.Establishtheteam.Onceyouhaveadiverseandcommittedteam,alignonyourprojectbrief.Yourteamcharterwillhelpclarifyrolesandguiding

principlesforhow.5.Secureanexecutivesponsorandanadvisoryteam.Yoursponsorwill

bringbothwisdomtoandendorsementoftheprojectinthecontextofotherenterpriseinitiatives.Considerwhoelse’swisdomandendorsementwillbeneededtosupportyourprojectasanimportantpriorityfortheenterprise.Anadvisoryboardcanbeaccessedatkeypointsinthedevelopmentprocessandhelpguideyourefforts.

6.Definerolesandrequirementsforallteammembers.Definewhoisdedicatedasthecoreteam(i.e.,thosedoingtheheavylifting),whoispart-time(i.e.,thosewhowillbringexpertiseorinspirationatappropriatepointsintheprocess),andwhowillbesponsorsoradvisors(i.e.,thosebroughtinonaregularandfocusedbasis).

TipsDiversityofperspectiveswillleadtomorerobustsolutionsandbroaderownership.

Ithelpstodefineacoredevelopmentteam,aswellasotherswhocanweighinandaddperspectiveandwisdomalongtheway.

WHATMIGHTTHISLOOKLIKE?Figure25depictstheteamdesignfortheHSOhealthcareprojectpresentedinchapters3and6.Theleadershipdesignatedanexecutivesponsorandadevelopmentteamthatbroughttogethermanydisciplinaryandstakeholderperspectiveswithintheorganization.Theyalsodesignedtheprocesstoengageboardmembers,employees,andotherkeyexpertsalongtheway.

Fig.25DesigningtheTeamforStrategicTransformation

TEAMPROFILINGALIGNINGTHINKINGPREFERENCES

WHYDOWEDOTHIS?Togaingreaterself-awarenessandadeeperunderstandingofteammembersandfacilitatemoreproductivecollaboration.Therearemanyprofilingtoolsthatconsistofaquestionnairefollowedbyananalysisandreportofanindividual’suniquestrengthsandpreferences.Asnotedinpartone,awarenessofindividualthinkingpreferencescanhelpenhanceanindividual’sabilitytotacklethetaskathandandboostteameffectiveness.TheOneSmartWorldprofilingtoolenhancesunderstandingofhowteammembersthinkandhelpstoestablishastrongfoundationforcollaboration.MoreonhowthisprofilingcanenhanceBusinessDesigneffectivenessandproductivecollaborationisprovidedonfraserdesignworks.com.

HOWCANYOUDOTHIS?Youcanleveragethistoolbyfollowingthesethreesteps:

1.Completethesurvey.Thisquestionnaireisbasedonyearsofresearchinidentifyingindividualpreferencesinunderstanding,generating,synthesizing,anddeciding.Itisnotaboutability,butratherwhatdimensionsofthinkingaremostpreferredandenergizingforanindividual.

2.Reviewandshareyourresults.Thiswillhelpyoufullyleverageindividualteammemberpreferences.Therearenoinherentlyrightorwrongresults.Aneffectiveorganizationwillhaveadiversemixofthinkingpreferencestomaximizecollectiveperformance.

3.Integrateyourinsightsintoyourworkplan.Youcanintegratethisnotionofregulatingthinkingmodesintoyourdevelopmentplanandyourteam

charter.Youcanalsointegratethesenewinsightsintoyourpersonaldevelopmentplanstostrengthenyourcognitiveagility.

TipsThroughoutdevelopment,therearetimeswhenyouneedtopausetounderstand,generatenewpossibilities,andsynthesizeandmakedecisions.

Resultsdonotinferability,butratherone’spersonalpreferencesandoperatingstyle.Awarenessofthesenaturalpreferencesallowsyoutomoredeliberatelyregulateyourthinkingmodetobestcompletethetaskathand.EverystepinthisToolKitisinherentlyassociatedwithaparticularmodeofthinking.

Drawingonindividualpreferencesandrotatingleadershiponanygiventaskcanenhancecollaboration.Forexample,individualswhoprefergenerativethinkingcanhelpdriveideation;individualswhopreferdecision-makingcanhelpdriveconvergentactivities;andtheindividualswhostriveforunderstandingcanmakesureeveryoneunderstandswhattheyaredoing,why,andforwhom.

Regulatingyourthinkingmodebeginswithawarenessandisenhancedthroughpractice.

WHATMIGHTTHISLOOKLIKE?Figure26isanexampleofoneperson’sprofile,whichshowsanaturalpreferencefor“envisioning”thefuture(overbrainstorming),apreferenceto“tuneinandempathize”asawayofunderstanding(overdataanalysis),andaninclinationtomakedecisionsbasedmoreon“beliefandgutfeeling”thanvalidation.

Fig.26Thinking-PreferenceProfile

TEAMMAPPINGIDENTIFYINGTALENTS,ROLES,&PASSIONS

WHYDOWEDOTHIS?Toharnessdiversityandbuildclarityaroundskills,expertise,androles.Teammappingisacollaborativewaytobuildappreciationforwhateachteammemberbringstotheprojectandrevealpersonalpassionsrelatedtotheproject.Teammappingvisualizesyourtalentecosystemandanswersquestionssuchas,

Whatexpertise,skills,knowledge,andperspectivedoeseachteammemberbring?

Whatrolewillheorsheplayintheproject?

Whatarehisorherpersonalinterestsandpassionsrelatedtotheproject?

HOWCANYOUDOTHIS?1.Describecompetenciesandinterests.Askteammemberstowritedown

fourpiecesofinformationaboutthemselvesonstickynotes:theirareaofexpertise(e.g.,manufacturing),theircoreskills(e.g.,facilitation),knowledgeandperspective(e.g.,customerinsights),andtheirpersonalpassionsandinterests(e.g.,buildingstronglocalcommunities).Writeeachpieceofinformationonaseparatenotewiththeauthoridentifiedbynameorinitials.

2.Clusterandconnect.Keepingthefourareasofinformationseparate,begintoclustertheinformationonthewalls.Lookforandidentifyconnectionsandoverlaps.

3.Identifyteamstrengthsandgaps.Examinetheclustersandidentifyareas

ofstrengthandareaswheretherearegapsthatyoumightneedtofilliftheyarenecessaryfortheproject.Iftheyare,findswaysofshoringupthosegapsbyengagingothersalongthewaywhomightfillthosegaps.

4.Appreciateandharnessthediversityoftheteam.Usethisasinputforyourteamcharter.Discusshowpersonalinterestsandinsightsmayplayintotheproject,asthesewillbringintrinsicmotivationanddepthtoyourquest.

TipsHavetheseitemsonhand:abigwhiteboardorsheetofpaper,stickynotes,andmarkers.

Whilepostingeveryone’sstrengthsandareasofinterest,takethetimetohaveeachpersontalkabouthimselforherselfinmoredetail.Thiswillhelpprovideabetterunderstandingandappreciationofeveryone’scapabilitiesandinterests.

WHATMIGHTTHISLOOKLIKE?Throughteammapping,theteammembersforahospitalprojectcametoappreciatethediversityofskillsandexperiencestheycouldcollectivelydrawonduringtheproject,aswellastheindividualpassionsthatcouldbeharnessed.Theircompetenciescoveredbusinessexpertise,architecturepractices,healthsciences,andinformationtechnology,allofwhichwouldbeimportanttothehospitalprojecttheywereabouttoembarkon.Manyofthemhadvolunteeredinhospitalsandwerepassionateabouthelpingpatients.Figure27showswhataninteractivesessionthatstimulatesdiscussionandappreciationfordiversitymightlooklike.

Fig.27TeamMapping:Talents,Roles,andPassions

TEAMBUILDINGENGAGINGINFUNWAYSTOWARMUPTOWORK

WHYDOWEDOTHIS?Toreinforcesomedesignprinciplesandpracticesearlyonandgettoknoweachotherinafunway,workthroughanxieties,andfostercollaboration.Herearethreesimpleteam-buildingexercisestocreateasharedexperience,whichyoucanaddtoyourowncreativeicebreakers:

1.Personalartifactandstory–Tounderstandwhatmakespeopletick2.Marshmallowexercise–Topracticeprototypingandcollaboration3.Fearinahat–Torevealapprehensionsandanxieties

1.PERSONALARTIFACT&STORYThissimpleexercisehelpsteammembers,byreferencingapersonal,favoriteobjectoftheirs,tellstoriesandanecdotesaboutwhatmotivesthem.

HowCanYouDoThis?Askeveryonetobringanobjectorartifactthatismeaningfultohimorherandtotellastoryaboutthesignificanceofthatobject.Asagroup,haveeachpersonexplainwhyheorshebroughtthatobjectandwhyitisimportanttohimorher.

Example:Inthefirstteamsession,oneofthedesignersbroughtatoycar.Hetoldastoryabouthowhecollectstoysandisintriguedbythingsthatmakepeoplemorecuriousandplayful.Withthatinsight,weknewwecouldcountonhimtobringafreshandimaginativeperspectivetoanyproject.

2.MARSHMALLOWEXERCISETheMarshmallowChallenge46isafunandinteractiveprototypingexercisethatencouragesteamstoexperiencesimplebutthoughtfullessonsincollaborationandcreativity.

HowCanYouDoThis?1.Dividethegroupintoteamsoffiveorsixpeople.Ifyouareabiggergroup,

itisfuntosplitthegroupupintocompetingteams.Thisalsoensuresthateveryoneisfullyengagedintheexercise.

2.Gatherthesematerialsforeachteam:twentysticksofspaghetti(thestickscanbebroken)oneyardoftapeoneyardofstringonemarshmallow(marshmallowmustremainintact)

3.Giveeachteamtwentyminutes(atthesametime)tobuildthetallestfreestandingstructure,usingonlythematerialsprovided.Themarshmallowmustbeontop.

4.Attheendoftheexercise,reflectonthefollowing:Whatdidtheteamstrugglewith?Whatdidtheteamdoverywell?Whatwasyourprocess?Whatimprovesperformance?Whathindersit?

3.FEARINAHATThisisawayforyoutounderstandandappreciatetheapprehensionsandanxietiesyourfellowteammembersmayhaveasyouembarkuponaproject.

HowCanYouDoThis?1.Onapieceofpaper,everyonecompletesthesentence,“Inthisproject,Iam

mostafraidthat_____.”Theyshouldbeasspecificandhonestaspossible,butnotinawaythatcouldeasilyidentifythem;theyshouldnotputtheirnameonthepaper.Thepapersshouldbeplacedinahatandshuffled.

2.Onebyone,eachmemberofthegroupreadsoutthefearofanotherteammemberandexplains,inhis/herownwords,whatthatpersonfearsinthissituation.(Ifyoudrawyourownfear,putitback).Nooneistocommentonthefear–justlistenandmoveontothenextperson.

3.Avoidimplyingorshowingyouropiniononthefearbeingexpressed,topreventdisrespectingorcompletelymisunderstandingsomeone’sfear.

4.Whenallthefearshavebeenreadout,discusswhatthecommonfearswereandhowtheteamcanallayandmanagetheseconcerns.

5.Attheendoftheexercise,reflectonthefollowing:Whatarethecommonfearsontheteam?Howcanweuseinsightstodevelopourplan?

Example:Inoneteam,acommonfearthatemergedwasthatalltheirexplorationanddevelopmentworkwouldneverbeexecutedduetolackofsupportorconflictwiththecurrententerprisesystem.Knowingthatteammemberssharedthatfearemphasizedtheimportantroleoftheexecutivesponsorandraisedtheteam’scommitmenttoGear3andclearactivationplanning.

FACILITATIONGETTINGTHEMOSTOUTOFTEAMTIME

WHYDOWEDOTHIS?Toharnesstheeffortsofteammembersandkeepeveryonefocusedonoutcomesateverystageofdevelopment.Giventhecollaborative,outcome-focusednatureoftheBusinessDesignprocess,effectivefacilitationiscriticaltocapturingthemostvaluefromtheteamandthetimeyouspendtogether,andtoobtainingthebestoutcomesinthemostproductiveway.

SKILLSFOREFFECTIVEFACILITATIONAfacilitator’sfirstjobistohelptheteamgetthemostfromtheirtimetogether.Everymeeting,inasense,isaworkshop.Goodfacilitationskillshelpkeeptheteamontrackandensurethatmeetingsareproductiveandfocusedonoutcomes.Aneffectivefacilitator

Helpsbuildtrustingandcollaborativerelationshipswithinthegroup,Clarifiesgoalsforthegroupandassignedroleswithinthegroup,Isabletostayfocusedonengagingeveryoneinthegroup,Doesnotimposetheirownideassimplybecausetheyhavethepen,Facilitatesproductiveandeffectivecommunicationatalltimes,Guidesthegrouptostayontrackintermsofbothoutcomesandtiming,Nurturesaproductiveandcollaborativeenvironment,andSupportseffectiveteamdecision-makingwhentherearechoicestomake.

Thesearesomeofthecoreskillsofgoodfacilitation.Ifyouarereallykeentomastertheskillsoffacilitation,youcanenlistanorganizationthatspecializesinfacilitationandvisualizationtraining.

HOWCANYOUDOTHIS?1.Reviewthelistoffacilitationskills.Eachteammembershouldreviewthe

skillrequirementsanddeterminehisorhercomfortwithandreadinesstoconductgroupfacilitation.Behonestandopenaboutyourinterest,commitment,andcapabilitieswithregardtotherole.Itisanimportantrole,butnotonethateveryonefeelscomfortableplaying.

2.Discussandassigntwotothreeleadfacilitatorstobegintheproject.Itisadvisabletoassignthisroletoyourmostwillingandcapablecandidatesattheoutsetoftheproject.Youcanalwaysrotateinnewfacilitatorsastheprojectunfolds.

3.Bediligentabouthelpfultwo-wayfeedback.Effectivefacilitationisatwo-waystreet.Tobeaneffectivefacilitatorrequiresdisciplineandskill;valuableandtimelyfeedbackhelpsthefacilitatordevelopthisskillanddrawthebestoutoftheteam.Atthesametime,italsotakesarespectfulandcollaborativeteamtorealizeproductiveandfruitfuloutcomes;thefacilitatorshouldgivetheteamfeedbackontheirbehaviorsandteamdynamics.

TipsFacilitatinggroupworkisanincrediblyvaluableskilltodevelopinyoureverydaywork.

Itishelpfultosharethisroleandgiveindividualstheopportunitytotaketheleadonanactivitytheyarepassionateabout.

Helpingeachotherbemoreeffectiveatfacilitationisavaluablelearningopportunityforeveryone.

TEAMCHARTERSCREATINGASHAREDVISIONFORTHETEAM

WHYDOWEDOTHIS?Toalignasateamonhowtoworkmosteffectivelytogether.Thisisbestdonebeforeprojectworkbegins,asitcanserveasasimplereferencetogroundtheteamthroughoutthedesignjourney.Byarticulatingyoursharedvisionandcodesofconductfortheteam,youwillsetagoodfoundationforcollaboration.

HOWCANYOUDOTHIS?Asateam,createacharterthatincludesthefollowing:

ProjectambitionsTeamvaluesRolesandresponsibilitiesMeetingandcommunicationstrategiesTeamrulesandcodesofconductThisisagreatwaytogetvaluesandpetpeevesonthetableearlyon.

TipsRefertotheoutcomeofyourteam-mappingexerciseindefiningindividualroles.

Thekeytoasuccessfulteamcharterisclarity,authenticity,unanimity,andcandor,especiallywhenitcomestopetpeeves.

Trytoaddalittlecandorandhumortomakeitlesslikealistofrules.One

teamhadtherule,“Nosmellyfoodinmeetings,”whichhelpedthemavoiddistractionsduringmeetings.

Ateamcharterisanimportantreferencewhenyougetofftrackortheteambecomesdysfunctional(asallteamsdofromtimetotime).

Identifyingkeycodesofconductwillensuredisciplineandrespectforteamproductivity.Itisalsoagreatwaytogetvaluesandpetpeevesonthetableearlyon.

WHATMIGHTTHISLOOKLIKE?Figure28isanexampleofasimple,group-generatedteamcharter:

Fig.28TeamCharter

TeamAmbitionTocreateabreakthroughtechnology-basedsolutionthatwillredefinethemeaningandmanagementofmoneytohelppeopletakecontroloftheirfinancialwellbeing.

TeamValuesOpenness,transparency,andrespect.Giveeveryoneavoice.

TeamRolesandResponsibilitiesMatt(TeamLead):Designandoverseemasterprojectplan(roles,deliverables,timing)

Eugene(CreativeDirector):Designclearandinspiringreportsandpresentations

Grace(ProjectManager):Manageallexternalactivitiessuchasresearchandlogistics

Avi(VoiceofthePeopleWhoMatter):Leadresearchtoanchorthehumanquest

Srikanth(BusinessStrategist):CoachteamandcounselonbusinessviabilityAlpesh(Methodologist):SourceanddesigndevelopmentmethodsJob(FacilitatorandSense-Making):Facilitateandcounselonprototypingandsynthesis

MeetingandCommunicationStrategiesMeetingTimes:Mondays,1–4p.m.,MeetingRoomA;Wednesdays,2–5p.m.,MeetingRoomA

Scheduling:UseGooglecalendar,hostedbyMattMeetingPreparation:Agendaandpre-workissued48hoursinadvanceofmeeting.

Communication:Usedesignatedintranetasaportalforalldocumentsharing,onlinediscussions,andplanningupdates.Noexternalportals.

TeamRulesandCodesofConductNophonecalls,texting,orbrowsingduringmeetings.Ontimeformeetings,oryoubringsnackstothenextmeeting.Respondtogroupemailintimelyfashiontoaccommodateschedulingandwork.Individualsareaccountablefortheirdeliverables.Decisionswillbemadeonaconsensusbasis–voteisalastresort.Constructivefeedbackonly–“attacktheproblem,nottheperson.”

PROJECTBRIEFFRAMINGYOURQUEST

WHYDOWEDOTHIS?Tocrystallizetheambitionsoftheproject,keyissues,stakeholders,thebusinessmotivation,andanalogousinspirationsfortheproject.Aprojectbriefmustbespecificenoughtomaketheobjectivesandchallengesclear,whilebeingopenenoughtoallowforopportunitiesandnewpossibilitiestoemerge.Aprojectbriefbringsyourmotivationsandinspirationstogetherintoafocusedframeworkfordevelopmentandhelpsframeyourcaseforinvestmentoftimeandresources.

HOWCANYOUDOTHIS?Herearesomequestionsthatcanbehelpfulindistillingyourprojectbrief:

Whatareourgoalsandambitionsforthisproject?Whataretheissuesorconditionsthatinspirethisopportunity?Howdoesthistietoouroverallenterpriseambitionsandstrategy?Whoisourprimarytarget?Whoareotherimportantstakeholders?Whatistheactivityaroundwhichwewanttocreatevalue?Whatcanourenterprisebringtocontributetothesolution?Arethereanyanalogiesorreferenceswecanlearnfrom?

TipsTheearliertoolonFramingYourAmbitionwillgiveyouinsightsintohowto

makeyourpropositionmostrelevantandvaluabletotheenterprise.Atthebeginningofaproject,briefsareoftentoonarrowortoobroadlyfocused.Thekeyisto“right-size”theprojecttowhatyoufeelisaspirationalyetwithinscope.

Tokeepyourbriefsuccinctandfocused,youmaycapturethemoredetailedinformationassupportingdocuments.

Compellingfactsmakeforagoodbusinesscase.Newinformationwillsurfaceduringthediscoveryprocess.Whileyourprojectbriefwillprovideanimportanttouchstoneinyourdevelopment,don’tignoreunexpecteddiscoveriesthatcaneitherenhanceorcallforareframingofthequest.

Youringoingbriefwillbefortifiedbyyourworkinsubsequentphasesofdevelopment;don’texpecttohaveacomprehensivepictureofthemarketorstakeholderneedsdefinedupfront.

WHATMIGHTTHISLOOKLIKE?Figure29isanexampleofaone-pageprojectbriefthatillustrateshowtoframetheingoingquestofadevelopmentteam.47

Fig.29ProjectBrief

PROJECTBRIEF:LIVINGWELL(THEROYALCONSERVATORYOFMUSIC)

Whatareourgoalsandambitionsfortheproject?Todevelopabreakthrough,revenue-generatingsolutionfortheRoyalConservatoryofMusic(RCM)thatwillimprovethephysicalandmentalwellbeingofseniors.

Whataretheissuesorconditionsthatinspirethisopportunity?Toooften,seniorsinternalizeageism,disengagefromactivities,anddeterioratementallyandphysically.Theymaybecomereclusiveordependentonsupportfromfamilymembers,limitingtheirpsychologicalindependenceandengagement.Inanagingsociety,thereispressuretofindsolutionstosupportseniorsinasociallyandeconomicallyresponsiblemanner.

Howdoesthistietoouroverallenterprisestrategyandambitions?Ourambitionistomakemusicamoreintegralpartofeverydaylifeandpersonalwellbeing.

Whoisourprimarytarget?Otherimportantstakeholders?Theprimarytargetisseniors,70+yearsofage,whofindjoythroughengagementintheartsandself-expression.Otherimportantstakeholdersarethepeoplewhoprovidelifestylesupportandcaretoseniorfamilyandfriends.

Whatisthe“activity”aroundwhichwewanttocreatevalue?Enhancingthephysicalandmentalwellbeingofseniors.

WhatcantheRCMbringtocontributetothesolution?RCM’scurrentsponsored“LivingThroughtheArts”programleveragesthebeneficialaspectsofmusictherapythroughavarietyofOutreachProgramsandCreativityWorkshops.Theprogramhasproventoenhanceindividualandcommunitypotentialthroughartisticself-expressionandcreativity,withmeasurable,positiveevidencethattheseprogramsenhancewellbeingonbothcognitiveandemotionallevels.TheRCMisthelargestandoldestindependentartseducatorinCanadaandhasofferedextraordinaryopportunitiesforlearningandpersonaldevelopmentthroughmusicandtheartsformorethan100years.

Anyanalogiesorreferenceswecanlearnfrom?SM(ART)S:SeniorsMeettheArts,Young@Heart

PROJECTBLUEPRINTMAPPINGTHEDEVELOPMENTPROCESS

WHYDOWEDOTHIS?Tovisualizehowtheprojectwillunfold,includingthemethodologies,activities,participation,timing,anddesiredoutcomes.Ablueprinthelpstoguidetheteamandtocommunicatetoothershowtheprojectwillprogress.ItservesasthebackbonefordevelopmentbyorganizingBusinessDesigntoolsandactivitiestotacklethechallengeathand.Aclearblueprintwillguidedevelopmentandanswerthefollowingquestions:

Whatistheflowofactivities?

Whoisinvolved?

Whatmethodswillbeused?

Whatarethedeliverablesandmilestones?

HOWCANYOUDOTHIS?1.Createatimeline.Drawalineonalargepieceofpaperrepresentingthe

projecttimelineanddesignateeachmajorphaseofdevelopmentandthedesiredoutcome:ContextualizingtheChallenge,Gear1,Gear2,andGear3.

2.Mapthemethods,activities,andwhowillparticipate.Thiswillshowhowyouwillsequenceactivitiesandhowyoumovethroughdivergenceandconvergencetowardoutcomesforeachphaseofactivity.Identifywhowillparticipateateachstepoftheprocess.

3.Definethedeliverableandmilestonesforeachphase.Settargetdatesfor

importantdeliverables.Considerthestartdateandenddateforeachactivityandphase.

4.Supplementwithprojectdetails.Foreachmilestone,indicatetheactionsandactivitiesnecessary,includingresearch,developmentworksessions,andpresentations.Assignrolesandresponsibilitiestoindividualsontheteam.

5.Visualizeyourblueprint.Synthesizeandvisualizeyourplanononepage,capturingdevelopmentactivities,methods,anddeliverables.Consolidatingyourroadmaphelpsyoukeepalloftheseactivitiesincontext,providingavisionofhowtheyallcometogetherinonecomprehensivemasterplanforyourproject.

TipsKeeptheplanopenandhighlevelatthebeginning.Thiswillallowyoutoplotoutthemajormilestonesanddeliverablesbeforefocusingonthedetailedplan.

Putitallononepage.Bepreparedtoadaptandrefinealongtheway.

WHATMIGHTTHISLOOKLIKE?Figure30isanexampleofaprojectblueprintshowinghowthemethodologies,activities(includingwhowasinvolvedineachactivity),andoutputsweresequenced.48

Fig.30ProjectBlueprint

COMMUNICATION&ENGAGEMENTPLANDESIGNINGFORINTERNAL&EXTERNALSTAKEHOLDERENGAGEMENT

WHYDOWEDOTHIS?Toengageimportantstakeholdersinthedevelopmentprocesstosolicitinputandbuildsharedownership.Havingaclearandconcisecommunicationsandengagementplanwillhelpyoubringalongthestakeholders(internalandexternal)whoareessentialtothesuccessofyourprojectsandenterprise.Theplanwillensurethattherightpeopleareengagedintherightwayattherighttime.

HOWCANYOUDOTHIS?1.Createprofilesofthekeypeopleyou’dliketoengageinyourquest.

Thesemightbeimportantstakeholdersinternally(fordevelopmentorfeedback)orexternally(e.g.,keycustomersorpartners).Gatherinsightsanddatafromyourexperience,colleagues,orothersources(e.g.,online).Createprofilesforeachbyansweringthefollowingquestions:

Role:Whoarethey?Whyaretheyimportant?Whatdotheydointheirwork?

Needs:Whatdotheycaremostabout?Whatweighsmostheavilyontheirmind?

Motivation:Whatwouldtheyvaluemostfromthisquest?Why?2.Maphowyouwillinteractwiththemthroughoutyourdevelopment

process.Foreachstakeholderprofile,identifyhowyouwillinteractwiththemandwhattheywillexperienceovertime.Plotthetimingandnatureof

theinteractionsyouwillhavewiththemontoacollectiveroad-maptemplate.Lookforgapsandopportunitiestokeepthemengagedthroughoutyourdevelopmentprocess.

3.Designyourcommunicationandengagementstrategy.Foreachstakeholder(grouporindividualsthatareofcriticalimportance),addressthefollowingquestions:

Howwillyouengagetheminthedevelopmentprocess?Whatwillbethenatureofyourinteractionswiththem?Whatdoyouhopetoachievefromthoseinteractions?

TipsDifferentiatebetweeninternalandexternalstakeholders.Internalstakeholderswilladdinsightandknow-how,andcultivatesharedownershipintheultimateoutcome.Engagingexternalstakeholdersintheco-creationprocesswillfurtherenhancesolutionsandasenseofsharedownership.

Assignwork-sessionparticipantsintogroupstoaddressdifferentstakeholdersandreconvenetosharelearning,fillgaps,andconsolidateeffortsintoyourmasterplanforengagementandcommunication.

Identifyandleverageexistingcommunicationchannels(e.g.,townhalls,externalevents,meetings,etc.)toengagestakeholders.

Routinelycheckinanditerateyourplanbasedonfeedbackfromstakeholdersandchangestoyourproductorserviceoffering.

WHATMIGHTTHISLOOKLIKE?EarlymappingfortheHSOprojectidentifiedhowtoseetheeffortsoftheenterprisethroughtheeyesofimportantstakeholders.Figure31isapictureofaworksessioninwhichparticipantsgroundedtheirplanninginstakeholderpersonastoidentifywhatwasimportanttoeachstakeholderandthenmappedoutacomprehensivecommunicationandengagementplan.

Fig.31MappingStakeholderEngagement

CONTEXTUALIZINGYOURCHALLENGE

Byexaminingcurrentmarkettrends,industryplayers,stakeholderecosystems,andenterprisecapabilitiesandresources,youwillidentifymarketopportunitiesandwaystoleverageyourstrengthsgoingforward.Thiscontextualizationwillhelpyouidentifymarket-basedopportunitiesanddeterminekeymarketspacesinwhichyouwishtocompete.

STEEPANALYSISIDENTIFYINGFUTUREMARKET-BASEDOPPORTUNITIES

WHYDOWEDOTHIS?Todefinethemostsalienttrendsthatwillcontextualizeyourquestandmaximizeyourbusinessopportunity.Withtheaimofaligningyourquesttoon-trendopportunities,acomprehensiveSTEEPAnalysiswillhelpyouidentifybroadtrendsintheareasofSociety,Technology,Economy,Environment,andPolitics(STEEP).49Defininganddimensionalizingthemostsalienttrendswillhelpyouidentifythefuturemarketopportunitiesrelatedtoyourprojectandenterprise,asinputtobuildingyourbusinesscase.

HOWCANYOUDOTHIS?1.Tapintoexistingresearchandthetacitknowledgeofyourteam.By

bringingtogetherteammemberswithdiverseperspectives,youwillbeabletoquicklyandproductivelycreatealonglistoftrendconsiderations.Preparetodownloadyourknowledgeandinsightsbasedonmarketstudies,articles,books,blogs,oryourownobservations.

2.Exploreandcaptureallofthetrendsyouthinkarerelevanttoyourproject.TakeabroadviewoftheworldinwhichyouoperateandcreateacomprehensivelistofcurrentandemergingtrendsacrossthedimensionsofSTEEP:

Social:Whatsocialtrendsmightinformyouropportunity?Technological:Whattrendsintechnologywillimpactyourfuture?Economic:Whattrendsintheeconomyarerelevanttoyourproject?Environmental:Whatenvironmentaltrendsareimportanttoconsider?Political:Whatpoliticaltrendscanyoutapinto?

Toenableeasydownloadandassessment,captureonetrendperstickynote.3.Assessyourfindings.Createa2×2frameworkonalargepieceofpaper;

labeloneaxis“likelytooccur–unlikelytooccur”andtheotheraxis“highimpact–lowimpact.”Assesseachtrendandorganizethemintothefourquadrantsonyourmap.

4.Gatherdatatovalidateanddimensionalizetoptrends.Identifywhichtrendsaremostlikelytooccurandwillhavethemostimpactonyourfutureopportunity.Gatherstatisticaldatatosubstantiateemergingtrendsandquantifythepotentialimpacttoyourenterprise,citingcrediblereferencesandsources.

5.Synthesizeandfortifyyourbusinesscase.Reviewyourfindingsanddeterminethetrendsthatbestframethemarketopportunityandaligntoyourbusinessgoals.Trendsshouldbeconsideredintermsofhowtheymightimpactmarketattractiveness,customersegmentgrowth,competition,andcustomerattitudesandneeds.

TipsHavethesematerialsonhand:stickynotesandlargepaperforcapturingandassessingtrends.

Bycapturingyourteam’sdiverseinsightsandperspectivesinagenerativemanner,youcanaccelerateandshareinthediscoveryprocess.

Broadeningyourperspectiveontheworldbyidentifyingmacrotrendswillleadyoucollectivelytonewcontextualinsights.

Rememberthat“trends”aremeasurableshiftsinthemarketthatcanbesubstantiatedwithdata.Theyarenota“pointintime”condition.Trendsprojectintothefuture.

Useavarietyofresearchresources(e.g.,publications,onlinesources,governmentreports,third-partyresearch).Whileyoumightdosomesleuthingon“socialmedia”andopinionpiecesforintuitiveinsights,youshouldplacepriorityoncrediblesourcesofintelligence.

Identifyingthesetrendsisnotawaytopredictthefuturebutisawaytoanticipateandplanforthefuture.

WHATMIGHTTHISLOOKLIKE?

Figure32showstheoutcomeofthisexerciseforaprojectonhealthyeating.Resultsshowthattheriseinobesityanddiabetes,governmentregulationoffoodsandlabeling,healthconcerns,andincreasedconsumptionofpreparedmealsallpointtoopportunitygapsinthemarket.

Fig.32STEEPAnalysis

LANDSCAPEOFPLAYERSIDENTIFYINGFUTUREFRIENDS&FOES

WHYDOWEDOTHIS?Toidentifyotherplayerswhoareconductingbusinessinyourenvisionedmarketspace.Thisstephelpsyoudeterminewhichplayersposecompetitivethreatsandwhichonescouldbringacomplementarystrengthtoyourenterpriseandbeleveragedintostrategicpartnerships.

HOWCANYOUDOTHIS?1.Definethespacebroadly,asanactivity.Considerthetargetyouaretrying

tohelpandhowyouwanttohelpthem,ingeneralterms.Asexamples:helpingwomenbettermanagetheirfinances,helpinghealthcareproviderscontributetobetterpatientoutcomes,helpingchildrenmakebetterfoodchoices,helpinggrowingstart-upsdesignabetterbusiness.

2.Tapintothetacitknowledgeofyourteam.AsintheSTEEPexercise,youcanproductivelycreatealonglistofwhoisoperatinginthisspace,basedonyourmarketawarenessandintelligence.

3.Exploreawiderangeofplayers.Forexample,ifyouwereapackaged-foodsmanufacturerlookingtoimprovehealthyeating,thisrangemightincludelong-standingcompetitors(e.g.,otherpackaged-foodsmanufacturers),emerginghigh-growthplayers(e.g.,nutraceuticals),adjacencies(e.g.,weight-managementservices),andplayerswithwhomyoudon’tcompetebutwithwhomyoushareacommoncause(e.g.,advocacygroups).Thereisnosuchthingastoomanyplayerstoconsiderattheoutsetofthisexercise.Identifyasmanypossiblecompanies,organizations,andcategoriesthatareconsideredtobepartofthemarketspaceyouhaveselected.Aneasywaytopreparetoclusterplayersistowriteeachplayeron

astickynote.4.Clusterandlabelyourfindings.Clusteryourfindingsintofourtosix

categoriesbasedonwhateachoffers.Forexample,inhealthyeating,playersmayclusterintoproductcompanies,retailcompanies,servicecompanies,orcommunicationcompanies.Theymayalsodifferentiatebycommercialversuspublicornot-for-profit.

5.Assesstheirimpactandprioritize.Onceyouhavecategoriesonyourlonglist,prioritizewhoisbestpositionedtomakeanimportantmoveinthisspace,bothdirectandindirectcompetitors,aswellasthosethatmaybecomeallies.TheseplayerswillbeimportantasapointofcomparisoninGear2orofpotentialcollaborationinGear3.

TipsHavethesematerialsonhand:stickynotesandlargepaperforcapturingandassessingplayers.

Bycapturingyourteam’sdiverseinsightsandperspectivesinagenerativemanner,youcanaccelerateandshareinthediscoveryprocess.

YourSTEEPAnalysiswillrevealsomeoftheplayersinyourtargetedspace.Considercompaniesfromasmanydifferentindustriesaspossible.Manycompaniesarenowcrossingoverintodifferentindustries;forexample,fromproductstoservicesorfromcomputingtoentertainment.

WHATMIGHTTHISLOOKLIKE?Figure33,asummaryofafewoftheplayersinthebusinessof“healthyeating,”demonstratesthediversityofplayers.

Fig.33SummaryofLandscapeofPlayers

FOODMANUFACTURERS PEOPLE&SERVICESNestlé Foodexperts(e.g.,nutritionists)Kraft WellnesscoachesPepsiCo AramarkFoodServicesCampbellSoup Fitnessclubs(e.g.,Equinox)

DelMonte Weightmanagement(e.g.,WeightWatchers)

GeneralMills Chefs(e.g.,JamieOliver)

OTHERPRODUCTPROVIDERS MEDIA&INFORMATIONGrocers(e.g.,WholeFoods) Onlineservices(e.g.,Diet.com)Lifestyleproducts(e.g.,Nike) Healthorganizations(e.g.,Mayo

Clinic)Supplements(e.g.,GNC) Publications(e.g.,Prevention)Pharmaceuticals(e.g.,Pfizer) Not-for-profits(e.g.,Heart&Stroke)Retailers(e.g.,Walgreens) Self-helpbooks

SCENARIOPLANNINGEXPLORINGFUTUREPOSSIBILITIES

WHYDOWEDOTHIS?Toenvisionhowdifferentthefuturemightlookfromthepresentbyidentifyingsignalsofchangethatcoulddisruptcurrentsystems.Ascenariodescribes,invividdetail,apotentialfutureenvironment,revealingimportantcontextfordesigningfuture-forwardsolutions.

HOWCANYOUDOTHIS?ScenarioplanningisanaturalprogressionfromyourSTEEPAnalysis,combiningandprojectingsignalsofchangetocreatepotentialscenariosyoumightface(orcreate)inthefuture.Itisoftenhelpfultobuildoutthreetofourscenariostocompare.

1.Reflectonemergingsignalsinthemarketandideateonarangeoffuturescenarios.Reviewyourassessmentofsignalsandselectcombinationsoftwotothreethat,inyouropinion,arethemostprobable,challenging,andrelevanttoyourorganization’sfuture.Thinkatleastfiveyearsouttostretchbeyondthecurrentstate.

2.Exploreandbuildoutthreetofourscenarios.Foreachofyoursignalcombinations,useyourintuitiveforesighttodevelopacentralplotforastorythatevokesanemotionalresponsefromthosewhowillusethesescenariosasarealitycheckinfuturedecision-making.Atthesametime,usefactswhenyouwriteyourstories,toensurethatreadersdon’tgetanchoredoncurrentworldrealities.

3.Developindicatorsandassess.Developindicatorsthatyoucanmeasureovertimetojudgewhetherthebusinessecosystemisheadingtowardoneor

moreofthefuturesdescribedinyourscenarios.Theseindicatorscanhelpyouevaluatewhetherornotyouractionsarehelpingyoucreateyourdesiredfuture,aswellaswhetherornotcertainrisksareimminent.Continuouslymonitortheseindicatorssothatyoudon’tloseanopportunitytoadapt.

TipsFramethebigquestionsthatyouwanttoaddressaboutthefutureofyourbusiness.

Usedeparturequestionstoexplorehowweaksignalsmightaffectyourbusiness.Forexample:“Howmightoursupplychainbeaffectedoverthenextfiveyearsbythepotentialimpositionofpunitivetariffsbeingcontemplatedbyourgovernmenttoday?”

Don’tbeafraidtoconsiderallpossibleoutcomes–nomatterhowextremeorunlikely.

Trytouseanyvisualstimuliyoucanfindtoaidstorytellingandsparktheimagination.

WHATMIGHTTHISLOOKLIKE?Hereisonesuchscenariothatpaintsapictureofafuturechallenge:

Youareaglobalfoodproducer.Assuch,youarereliantonthecontinuousexpansionandintensificationofagriculturetosupportyourvolumeprojections.Ithascometoyourattentionthatthebeepopulationisseverelythreatenedbythelossofwildplantsandflowersduetoagriculturalintensification.One-thirdofallfoodproductiongloballyisdependentonbeepollination.Iftheagriculturalexpansionandintensificationyoudependoncontinues,youwillliterallybethreateningone-thirdoftheworld’sfoodsupply–andyourownfutureasacompany.Thisisawickedproblemthatrequiresaprofoundlyinnovativesolution.Howcanyousolveforthisscenario?

STAKEHOLDERMAPPINGIDENTIFYING&CONNECTINGPEOPLE

WHYDOWEDOTHIS?Toidentifyallofthepeoplewhomattertoyoursuccessandhowtheyrelatetoandinfluenceeachotherwithinthe“humanecosystem.”Thisstephelpstoframeyourchallengeandrevealsopportunitiestoincreasethechancesofsolutionsuccessbyappreciatinghowallthekeystakeholders(users,enablersandinfluencers)interactandinfluenceoneanother.Acomprehensivemapofhowimportantstakeholdersrelatetothecentralcustomerorstakeholder,andtoeachother,isanimportantpreludetoneed-findingresearch.

HOWCANYOUDOTHIS?1.Explorethelonglistofthepeoplewhoareimportanttoyourproject’s

success.Thesearethekeystakeholderswhoserve,enable,orinfluencetheactionsofanddesiredoutcomesforyourcentral“customer.”Theywillplayarole,tovaryingdegrees,inyourfuturesuccess.Tofacilitateiterativemapping,listeachstakeholderonanindividualstickynote,tobearrangedonalargepieceofpaperorsurface.

2.Definetheirrolesandrelationshipsinalow-resolutionmap.Bydefiningandvisualizingstakeholderrolesandrelationships,youwillseetheinterconnectednessofthehumanecosystem.

3.Visualizethehumansystemasapathwayornetwork.Representrelationshipsinavisualmannertobringclaritytothepicture.Thisvisualizationcanbeeitherorganizedaroundtheuserjourney,asitwasinthechapteronGear1,ordepictedbyageneral“networkmap”ofstakeholderspertainingtoacommonissue,asshowninFigure34.

4.Focusonthepeoplewhomightplaythemostcriticalroleinyour

success.Identifywhichplayersmighthavethemostimpactonyourultimatecustomerandbeimportanttoincludeinyourneed-findingresearchandsolutiondesign.

TipsHavethesematerialsonhand:stickynotesandlargepaperforcapturingandmappingallstakeholders.

Bycapturingyourteam’sdiverseinsightsandperspectivesinagenerativemanner,youcanaccelerateandshareinthediscoveryprocess.

Itisimportanttoconsiderallpossiblestakeholderswhoinfluencethedecision-makingprocessandthewebofinterrelationshipsamongthem.

Stakeholdermappingbeginsatthestartofaprojectandisrefinedonaregularbasis,asnewinformationisuncoveredthatleadstoabetterunderstandingofthechallenge.Whileyoumaylikelydoapreliminaryversionofthisincontextualizingyourquestinbroadstrokes,need-findingresearchwillcreateamoredefinitivepictureofthedynamicsatplay.

WHATMIGHTTHISLOOKLIKE?Asshowninchapter4,astakeholdermapmightbevisualizedasapatientpathway(Figure34).

Fig.34StakeholderMappingasaCardiacPatientPathway

InananalysisofCanadianhealthcareaccreditation,keystakeholdersweremappedasanecosystemwithafocusonPatients,Providers,andPolicyMakers(Figure35).

Fig.35StakeholderMappingasaNetwork

ACTIVITYSYSTEMS(CURRENTSTATE)VISUALIZINGYOURCURRENTSTRATEGY

WHYDOWEDOTHIS?Toalignontoday’senterprisestrategy.Activitysystemmodelingisamethodofsystemsthinkingandvisualizationthatrepresentsstrategyasacombinationofinterrelatedactivitiesandcapabilities.Doingthisupfrontonaprojectwillgiveyouaclearpictureofyourcurrentstate,whichyoucanrepriseinGear3todetermineifandhowyournewvisionandstrategyfitswithyourcurrentstrategy.

Anactivitysystemisastrategyvisualizationmadeupofthefollowing:

Hubs:Coreactivitiesthattogetherdefinehowtheenterpriseuniquelycreatesvalue

Supportingactivities:SpecificactivitiesandcapabilitiesthatfortifyhubsLinkages:Howhubsandactivitiesreinforceeachothertocreatevalue

Apowerfulactivitysystemisoneinwhichauniquesystemofactivitiessynergisticallycreatesvalueforthemarketandtheenterprise.Thistoolcanalsobeusedforassessinganothercompanybasedonpubliclyavailableinformation(seeActivitySystems[Competition]).

Thisexercisewillhelpyousuccinctlyvisualizeyourcurrententerprisestrategybyaddressingthefollowingkeyquestions:

Whatdowecurrentlyinvesttimeandeffortinto?Whathavewechosentodointernallyandwhathavewechosentooutsourceorpartnertodeliver?

Whatistheenterprise’scurrentstrategytocreatevalue?

Whatareweuniquelygoodat?

Howdoesoursystemcomparetothatofothers?Howstrongisourcurrentcompetitiveadvantage?(SeeActivitySystems[Competition].)

HOWCANYOUDOTHIS?Here’showyoucanbuildmutualunderstandingandstrategicclarity,usingFourSeasonsHotelsandResortsasanexample:50

Beforeyouconveneasateam:

1.Gatherinput.Askteammemberstothinkaboutandlisthowyourbusinesscreatesvalueandallthethingsyourenterprisedoestodelivermarketvalueandbecompetitive.Thinkabouttheactivitiesthatcreatevalueacrosstheentirebusinessandeveryfunction,andanswerthequestionsbelow:

Whatistheoverallgoalorvisionforyourbusiness?Whatisyouroverarchingvalueproposition?(e.g.,toofferguestexperiencesofexceptionalquality)

Thinkbroadlyandask:Whatarethevitalactivitiesthatyourenterprisebroadlyandconsistentlyinveststimeandmoneyintotodelivervalue?(e.g.,superiorstaffserviceattitude,consistentglobalbranding)

Whatarethespecificactivitiesorchoicesthatbringthosethemestolife?(e.g.,superiorstaffserviceattitudemayleadtoadecisiontohavenocustomerservicedepartment)

2.Consolidateanddistilinputs.Youwilllikelyhavedozensofinputs–thatisnormal.Aggregateallofthemandclusterthemintoactivitythemes–thepotential“hubs”ofyourstrategy.Articulatethesethemesbyphrasingthemassomethingyouactivelydo:Forexample,Focusonhotelmanagement.Indocumentingconsolidatedinputs,therearetwoliststhatwillbehelpful:oneofhubs(whichmaybeuptotenatthispoint)andoneofspecificactivities/initiativesthatsupportthesehubs(whichcouldbeaverylonglist).

Whenyougettogetherasateam:1.Reviewanddiscussyourlistofthemesandselectthemostcriticalas

hubs.Facilitateadiscussionabouttheoverarchingvaluepropositionand

possiblehubs.Foreachhub,asktwokeyquestions:Howcriticalisthattoouroverallpropositionandcreationofvalue?Howextensivelydoesthatdriveouractivities?Whatistheevidenceofthat?

Itisoftenhelpfulforonepersonwhoispassionateaboutathemetogiveatwo-minute“case”forthisasahub,forthegrouptoappreciateitsvalue.Atthispoint,youshouldsimplycapturetheessenceofthattheme–youcangobackandrefinethewordinglater.

Onceyouhavediscussedthepotentialhubsandidentifiedwhicharemostcriticaltocreatingvalue,haveeachteammemberreflectonthefollowingquestionsbeforecastingtheirvoteforthecentralhubs:

Isthiscriticaltoourvaluecreation?Doweinvesttimeandmoneybroadlyandconsistentlytosupportthis?Doesthiscontributetoourcompetitiveadvantage?

Tocastyourvotes,youmayprovidefivestickyreddotstoeachteammember.Havethemthinkabouttheactivitythemesthatmeetthethreecriteriaandallocateonedotperhub.Identifythetopfourorfivehubsandprobeforanydissensionsordeepconcerns.

2.Fortifythosehubswithspecificsupportingactivities.Foreachhub,ask,Whatarethecriticalactivitiesorchoicesthatreinforceeachhub?Haveparticipantsrefertothelistofspecificactivities.

3.Visualizeyourcurrent-stateactivitysystem.Writeeachoftopthefourorfivehubsoutonlargestickynotesorpaperplates.Placethemonalargesurfaceorpaper.Discussasateamhoweachhubrelatestotheothersanddrawlinestoshowtherelationships.Thenpositionspecificactivitiesaroundthehubsandidentifylinkageswithinthesystem.

4.Synthesizeyourcurrentstrategyandarticulateyourstory.Capturethestrategydepictedbyyouractivitysysteminastorytoexplainhowthesystemworksinaone-pagenarrative.Thisstoryshoulddescribehowyoucreatevaluethroughthefollowing:

Overarchingproposition:Whatdoesourenterpriseuniquelyofferthemarket?

Hubs:Whatcoredriversofourbusinesstodaydefineourstrategy?Activities:Whatspecificandconcreteactivitiesorchoicesreinforcethosehubs?

Relationships:Howdohubsandactivitiesrelatetoandreinforceone

another?

5.Assessyourcurrentsystemforuniquenessandcompetitiveness.ReferringtothetoolonActivitySystemAssessment,haveparticipantsindependentlyratehowdifferenttheybelieveyoursystemisversusthecompetitiononascaleofonetoten(onebeingidenticalandtenbeingcompletelydifferent)onacardandgiveittothefacilitator.Makeaquicktallyforthegroupanddiscussyourassessmentbasedontherangeofnumbers.

TipsRefertootherdocumentsonyourbusiness(e.g.,strategicplans,operatingplans,annualreports)forinsights.

Prototype!Usepaperplatesandstickynotestoprototypethesystemearlyon.Thisisaniterativeprocessasyougatheranddistilyourinputsandmakeintuitiveconnectionswithinyoursystem.Yourfirstversionwilllooklikespaghettiandmeatballs.That’sokay.Thekeyisdistillationandmakingconnections.

Someinitialinputswillfallbythewayside.Youshouldhavealimitednumberofhubs.Anenterprisecannothavetenhubsanddothemallwell.

Linkagesareimportant.Understandhowonehubconnectstoanother,howoneactivitycanreinforcemorethanonehub.That’sstrategicsynergy.

Inassessingyourcompetitiveness,itisparticularlyhelpfultohavedoneasimilarexerciseonotherorganizations(seeActivitySystems[Competition],nexttool).

Theprocessoutlinedinthistoolrequirespre-workincollectingandorganizinginputs;itprovidesarigorous,inclusive,andwell-documentedfoundation.Asanalternatemethod,youcanaskmemberstobringtheirlistofhubsandactivitiestoyourworksessionandtransferthemtostickynotestobeclusteredintothemesandsupportingactivities,inasimilar“organic”methodtothatpresentedinconstructinganactivitysystemforcompetitors(nexttool).

WHATMIGHTTHISPROCESSLOOKLIKE?

Figure36showshowthisprocessmightbevisualized,usingFourSeasonsHotelsandResortsasanexample.51

Fig.36VisualizingYourCurrentStrategy

ACTIVITYSYSTEMS(COMPETITIVE)VISUALIZINGCOMPETITIVESTRATEGIES

WHYDOWEDOTHIS?Tovisualizehowcompetingenterprisescreatevalueinadistinctwayand,mostimportantly,relativetothewayyourenterprisecreatesvalue.Thisexerciseisanexcellentwaytodoacomprehensivedeepdiveintoanothercompany,usingthesameactivitysystemmodelingoutlinedintheprevioustool.Thisexercisewillhelpyouarticulateandvisualizethefollowing:

Whatistheenterprise’sstrategytocreatevalue?

Whatisuniqueabouttheirsystem(incomparisontoothers’,particularlyyours)?

Howstrongistheircurrentcompetitiveadvantage?

HOWCANYOUDOTHIS?Beforeconstructingacompetitiveactivitysystem,gatherinputs.Findoutasmuchaboutthecompanyaspossiblebyreviewingannualreports(whichpubliclystatetheirvision,strategy,andfinancialinvestments)andmarket-facingsourcesofinformation(e.g.,awebsitethatpresentsacomprehensivepictureoftheirofferingsorthroughimmersionintheircustomerexperience).Ithelpsalsotogetasenseofthecustomerexperiencebyusingandinteractingwiththeirproductsandservices.Specifically,lookforthreethings:

Whatdotheyoffer?Beginbysearchingthroughtheirwebsite.

Wheredotheyinvesttimeandmoney?Beginbyreadingtheirannualreports.Whataretheyreallygoodat?

Thenyoucanaggregate,synthesize,andmapyourinputsintoanactivitysystem.

1.Layoutwhatyouknow.Asateam,sharealloftheinformationyou’vegatheredwitheachother.Listalloftheinputsonstickynotes(onepernote)anddiscusswhattheysignify.

2.Findpatternsandcluster.Begintogrouptogetherrelatedinputsaspotentialhubsandask,Howisthiscriticaltotheirsuccessincreatingvalue?

3.Articulate,position,andconnectthehubs.Onceyouhavefourorfivelargeclusters,begintolabeleachoneasahub.Asnotedearlier,articulatethesehubsbyphrasingthemassomethingtheydo:forexample,drivingcostminimizationisoneofIKEA’soverarchingdifferentiatingactivities.Throughthisprocessyouwillbegintoseeconnectionsbetweenhubs.Findtheseconnectionsbyasking,Howdoesonehubrelatetoothers?Howdoesthiscombinationofinterrelatedhubsuniquelycreatevalue?

4.Buildouttheactivitysystem.Positionspecificsupportingactivitiesaroundthehubs,andthenidentifylinkagesamongallofthehubsandtheactivities.Includewhattheyhavechosentodointernallyandwhattheyhavechosentooutsource.(Forexample,flatpackingandself-serviceandassemblybycustomershelptominimizeIKEA’scostsasasupportingactivity.)Identifyrelationshipsbyasking,Howdoesactivityreinforceeachofthehubs?Themoreconnections,thestrongerthesystem.Yourfinalactivitysystemshouldbeaone-pagevisualrepresentationoftheorganization’sstrategyasdefinedbyhubsandsupportingactivities.

5.Synthesizetheirstrategyintoastory.Articulatehowtheseactivitiesladderuptostrategy:

Overarchingproposition:Whatdoestheenterpriseuniquelyofferthemarket?

Hubs:Whatarethecoredriversoftheirbusinessthatdefinetheirstrategy?

Activities:Whatspecificandconcreteactivitiesreinforcethosehubs?Relationships:Howdohubsandactivitiesrelatetoandreinforceoneanother?

6.Assessanddiscusstheiruniquenessandcompetitiveness.Usingtheassessmentcriteriapresentedinthenexttool(ActivitySystemAssessment),haveeachparticipantindependentlyratehowdifferenttheybelievethatenterprise’sstrategyisversusothersonascaleofonetoten(onebeingidenticalandtenbeingcompletelydifferent)anddiscussyourassessment.

TipsUseanyaccessiblepertinentinformationorintelligencetocreatearobustpictureoftheirstrategy.

Prototype!Ioftenusepaperplatesandstickynotestoprototypethesystem.Thisisaniterativeprocessasyougatheranddistilyourinputsandmakeconnectionsinthesystem.

Youshouldhavealimitednumberofhubs.Anenterprisecannothavetenhubsanddothemallwell.

Linkagesareimportant.Understandhowonehubconnectstoanother,andhowoneactivitycanreinforcemorethanonehub.That’sstrategicsynergy.

WHATMIGHTTHISPROCESSLOOKLIKE?Figure37showshowthatprocessmightbevisualized,usingIKEAasanexample.

Fig.37VisualizingCompetitiveStrategies

ACTIVITYSYSTEMASSESSMENTASSESSINGCURRENTCOMPETITIVENESS

WHYDOWEDOTHIS?Toevaluateyourstrategy–andthoseofothers–asadistinctsetofactivitiesandsourceofcompetitiveadvantage.Thisexercisewillgiveyouaclearpictureofhowdistinctyoursystemofactivitiesisrelativetothatofcompetitors.52

HOWCANYOUDOTHIS?Askyourselfthefollowingquestions:

1.Doesthisstrategycreatevalue?Howdoesthisstrategycreatevalueforendusers?Howdoesthissystemofactivitiesmeettheirunmetneedsinameaningfulway?

Howdoesitcreatevalueforotherkeyshareholders?Howdotheactivitiescreatevaluefortheenterprise?

2.Isyourstrategyabreakthrough?Towhatextentdoesthisactivitysystemenabletheenterprisetodeliverameaningfulpropositiontothemarket?

3.Isitdistinctive?Howdoesitcomparetootherenterpriseswithinthecurrentlandscapeofplayers?

Isthissetofenterpriseactivitiesdistinctiverelativetoothersinthisgame?

Doesthisstrategicactivitysystemcurrentlygivetheenterpriseadistinctadvantage?

4.Doesthesystemfit?Howdotheactivitiescomplementandreinforceeachother?Isitacohesiveandsynergisticsetofactivities?

5.Doesthissystemcreatesustainableadvantage?Howlongcantheenterprisesustainanadvantagewiththisstrategy?Howlikelyisittobeimitated?Whataboutthissystemisdifficultforotherstoreplicate?

TipsNowisthetimetobeobjectiveandanalyticalaboutbothyourownstrategicsystemofactivitiesandthoseofothers.Ifyoursystem“failsthetest,”youhaveaclearopportunitytomakeitstrongerandmoredistinctive.

Thisexerciseisbestdoneasagroup,withcandorandobjectivity.Thiswillsolidifyyourcollectiveassessment.

Gettheobjectiveinputofothers:ithelpstocallonseniormentorsandtrustedindustryexperts.

STRATEGICCHOICECONSIDERATIONSFRAMINGUPCURRENTCHOICES&FUTURECONSIDERATIONS

WHYDOWEDOTHIS?Tomakecurrentchoicesexplicitandgeneratefutureconsiderationstoexplore.Byidentifyingthechoicesthatdefineyourcurrentstrategyandexploringnewconsiderationsbasedonyourcontextualassessment,youwillhaveabetterunderstandingofwhatyouneedtolearnfromtheactivitiesinGears1,2,and3

HOWCANYOUDOTHIS?RoundOne:MakeYourCurrentChoicesExplicitThisroundwilldrawontheworkonyourcurrentactivitysystemandyourknowledgeoftheenterpriseandthemarket.Itismeanttoleadtoaclearandfocusedsynthesisof“whathasbeen”or“whatis,asoftoday,”notwhereyoumightgointhefuture.

1.Whatwereyouraspirations?Lookatyourstrategicplansandreviewcommunicationsthatpointtoyouroverarchingpurpose.Inaclearandconcisestatement,articulateyourcurrentaspirations.Thisstatementisoftencomparedtoavisionstatement.

2.Whereareyouplaying?Identifyandalignonyourcurrentcustomerbase;theproductsandservicesyoucurrentlyhaveinplay;andthesegment,geographicmarkets,andchannelsinwhichyoucurrentlyoperate.

3.Howareyouwinning?Alignonyourcurrentvalueproposition,core

activities,andyourmarketadvantage.Whatarethefourtofivewaysinwhichyouhavewonoveryourcustomerandprofitedtodate?

4.Whatareyourcurrentcapabilities?Identifythethingsyoudoexceptionallywellinarepeatableandscalablemanner–thecapabilitieswithinyourorganizationthathavebroughtyousuccessinthemarket.

5.Whatmanagementsystemsdoyoucurrentlyhaveinplace?Identifytheuniquemanagementsystems(e.g.,processes,go-to-marketsystems,andmeasurementsystems)thathavesupportedyoursuccesstodate.

RoundTwo:CreateFutureOptions

Thisroundwilldrawfromyourworkincontextualizingyourchallenge,consideringtrends,emergingplayers,andnewmarketopportunities.Thisisanopportunityforeveryonetogettheirthoughtsonthetableasthebasisfordevelopmentanddecision-making.UnlikeRoundOne,youwilllikelyhavealongerlist,tobeconsideredanddecidedonasyourfuturedirectioncomesintofocus.

1.Whatmightyouaspiretoachieve?Thismightbeamatterofstayingtruetoyourcurrentpurposeortakingitupanotchforgreaterimpact.

2.Wheremightyouplay?Whatisthelongerlistofpotentialcustomersegments,geographies,products,andservicesegmentsorchannelsyoumightconsider?

3.Whatmightittaketowininthefuture?Consideringemergingtrends,stakeholderneeds,andplayers,inwhatotherwaysmightyouwininthefuture?

4.Whatcapabilitiesmightberequired?Whileyouwillaimtoleverageyourcurrentcapabilities,whatnewcapabilitiesdoyouanticipateyoumightneedinthefuture?

5.Whatnewmanagementsystemsmightyouneed?Knowingthenatureofbusinessandwaysofworkingareconstantlyevolving,whatnewsystemsmightyouneed?

RoundThree:Compare,Cull,&FocusBasedonyourcurrentchoicesandfutureconsiderations,askyourselfthesequestions:

1.Howdothesechoicesetscompare?

2.Whatcanweleverageandfurtheramplifyinthefuture?3.Whatnewconsiderationsmightweexplore?Whichonescanwe

eliminate?4.Whereshouldwefocusourdevelopmentefforts?Howwillwedecide

what’sinforconsiderationandwhat’sout?

WHATMIGHTTHISLOOKLIKE?Figure38isavisualizationofhowadevelopmentteamascertainedtheir“startingpoint”andexploredconsiderationsforthefuture.Therewasaverylonglist!AftertheydevisedtheirenvisionedfuturethroughtheBusinessDesignprocess,theyconvergedonaveryclearsetofstrategicchoicesforthefuture.

Fig.38StrategicChoiceExploration

GEAR1:EMPATHY&DEEPHUMANUNDERSTANDING

Human-centeredvaluecreationisrootedinunderstandingtheworldthroughtheeyesofeveryimportantstakeholder,includingbothyourcorecustomersaswellasothersinyourexternalecosystemwhowillbeimportanttoeffectivelydeliveringyoursolutiontothemarketplace.Whatfollowsaresomeofthetoolsthatwillhelpyoudiscover,understand,andvalidatestakeholderneedsasameanstoidentifyhuman-centeredopportunitiesforvaluecreation.

ROLEPLAYTOEMPATHIZELIVINGTHEEXPERIENCE

WHYDOWEDOTHIS?Tobuildempathybyexperiencingtheworldfromsomeoneelse’sperspective.Throughthisexercise,youwillcometogenuinelyunderstandtheuser’schallengesandhavegreaterempathythrougha“livedexperience”inadefinedsituation.Asyouputyourselfinothers’shoes,ask,Whatdoespersonexperienceandfeel?Whataretheirpointsofpain?

HOWCANYOUDOTHIS?1.Definethetargetuser.Basedonthechallenge,identifywhoseperspective

youwouldliketobetterunderstandandappreciate.Forexample:Letusassumeyourenduserisanelderlyperson.

2.Outlinethechallenge.Thinkofasituationinwhichthisenduserstruggles–itcouldbeasituationwherethereisaphysicalormentalchallenge,oradifficultyorbarrierinhisorhereverydaylife.Forexample:Wemightunderstandthatanelderlypersonhastroublewithdexterityinhisorhereverydaylife.

3.Describetheactivity.Createanactivitythatwillenableyoutoexperiencetheworldfromyourtarget’sperspective.Dothisbydefiningtheperson,theirsituation,andanactivitythatpresentsachallengeforthem.Forexample:Anelderlypersonwithdexteritychallengesmighthavetroubledoingdailytasksonhisorherownathome.

4.Recreatetheexperience.Useprops,aids,orartifactsthathelptosimulatetheexperience.Forexample:Tosimulatewhatitisliketobeanelderlypersonlivingalone,youmaydonthickrubberglovestosimulatechallengesinlostmanualdexterity.

5.Livetheexperience.Viewtheworldthroughthisperson’spointofviewbylivinghisorherlifeforatleastanhour.Fullyimmerseyourselfintotheactivitytotrulyexperiencetheworldfromtheuser’sperspective.Forexample:Toexperiencethenormalactivitiesofthisperson,tryopeningdoors,openingapillbottle,andmakingaphonecallwhilewearingthickrubbergloves.

6.Reflectonexperiences.Reflectonwhatyouexperiencedandhowitmadeyoufeel.Definethemostpowerfulemotionsyouexperiencedandyourmostcompellinginsightintohowitmustbetolivethatperson’slife.

TipsWhendefiningtheactivity,adirectsimulationmaynotbepossiblebecauseofphysicalorcircumstantiallimitations.Inthiscase,defineananalogoussituationthatparallelsthecorechallengesthepersonexperiences.Forexample:Toappreciatelivingwithchronicpain,putsomestonesinyourshoesforaday–nottocreatepain,buttoappreciatewhatitisliketobeplaguedbydistractionanddiscomfortforhoursonend.

Whenyoudothisexercise,attempttoexperiencetheworldfromyourusers’perspectiveasmuchaspossible.Thismeanseliminatingdistractionsandfocusingonthetaskathand.

WHATMIGHTTHISLOOKLIKE?Tounderstandthechallengesthatseniorsfaceastheyage,oneteammemberworerubbergloveswhileattemptingtocarryoutcommontaskssuchaspaperwork,makingmeals,andbrushingherhair(seeFigure39).Shefoundthesetaskstobemuchmoredifficultandbecamequitefrustratedandtense.Throughthisprocess,shediscoveredthatdecreasedphysicalfunctionsoftheelderlynegativelyaffectnotonlytheirphysicalabilities,butitalsotheiremotionalstate.

Fig.39EmpathyExercise

NEED-FINDINGRESEARCHDESIGNINGADISCIPLINEDDEEPDIVE

WHYDOWEDOTHIS?Todefinethepeopleyouneedtomoredeeplyunderstandandtargetwhotorecruitforresearchtoultimatelydefineuniversalunmetneeds.Rigorousneed-findingresearchcallsforthoughtfulconsiderationofwhosevoicesmustbeheardandwhichactivitiesyouwanttoexplore.Aclearplanforresearchwilladdressthesequestions:

Whodoweneedtobetterunderstand?

Whatistheright“sampleprofile”toensurewehaveavariedrepresentationofeachstakeholdergroup?

Whatisourmethodology?

Whatisthecentralresearchquestion?

HOWCANYOUDOTHIS?1.Definetargetsubjects,withanemphasisontheenduser.Referenceyour

stakeholdermapandprojectbrieftodefinewhomattersmost.Besuretoexploretheneedsofallofthecriticalstakeholders.Forexample,thecentralstakeholdermightbelegalprofessionals.

2.Diversifythesample.Diversifyyourresearchbylookingatavarietyofpeopleinyoursub-samples.Thesecontrastswillhelpyouseesimilaritiesanddifferencesamongdifferentpeopleinthesameactivity.Forinstance,inunderstandingthelegalprofession,youmaywanttoincludebothnew

lawyers,seasonedprofessionals,andavarietyofpractices–corporatecouncil,publicsector,andlegalfirms.

3.Definetheresearchtopicasanactivity.Definethebroadactivitythatismostrelevanttoyourprojectbrief.Forexample,youmightasklawyersabout“thrivingintheirprofession:whathelpsandwhathinders.”

4.Designtheresearchmethodology.Specifythevariousactivitiesyouwouldlikeyourresearchparticipantstotakepartin(e.g.,userjournals,photoelicitation,etc.)andhowyouwillrecordandanalyzethedata.Beawarethatthemoreactivitiesyouhaveuserstakepartin,themoretheymayhavetobecompensatedfortheirtime.

5.Defineanactionplan.Consolidateallofthisinformationintoarecruitmentandfieldresearchplan.Thisdocumentshouldbereviewedwithyourteamandaprofessionalrecruiterifyouarenotdoingthefieldresearchyourself.

TipsRefertoyourstakeholdermapandprojectbriefforwhotoincludeandwhichactivitytoexplore.

Inconsideringhowtodiversifyyoursample,considertheultimatequestionthatwillbeasked:Whosevoiceswereheard?Thelastthingyouwantisforanyonetoquestionyoursourcesofinsight.

Howmanypeopleshouldyourecruitintotal?Asageneralrule,tenresearchparticipantsperhomogenousgroupwhoparticipateinin-depthresearchactivitiesareoftensufficient.53Thekeyinthisresearchisqualityanddepth.

Preparetoover-recruitresearchparticipantstomakeupforparticipantswhodropoutofthestudy.Itisnormaltoover-recruittwotothreepeopleforeveryten.

WHATMIGHTTHISLOOKLIKE?IntheCanadianBarAssociationRe-Thinkprojectcitedinpartone,itwasimportanttoincludeadiversityofstakeholdersacrossgeographies,practices,anddemographics.Figure40showshowinterviewersweredistributedacrossthesamplingplantoensurewedefineduniversalneeds.

Fig.40RecruitingSamplePlan

OBSERVATIONUNDERSTANDINGCONTEXT&BEHAVIORS

WHYDOWEDOTHIS?Todiscoverfreshinsightsandgeneratehypothesesbystudyingpeopleintheirnaturalenvironments.Disciplinedobservationentailsobjectivity,asopposedtorelyingonourpreconceivednotions.Itcallsforastructuredapproachtoperceivinghumanbehaviorrelativetoobjects,theenvironment,andotherpeopleinaspecificcontext.Thiswillleadtonewinsights,hypothesesonpointsofpain,andopportunitiestoaddressunmetneeds.

HOWCANYOUDOTHIS?1.Selectanobservationsite.Thinkaboutthesituationsyouwouldliketo

knowmoreaboutandselectalocationthatbestsuitstheconditionsofyourproject.Selectawell-definedsitethatisrelevanttoyourquest.Forexample:Kidseatinglunchatschool.

2.Firstlevelobservation:observethefactsandseethingsobjectively.Conductyourfirstphaseofobservationforthirtytosixtyminutes.Takenoteonlyofthefactualaspectsofwhatyouseeanddonotdisregardanything.Watchforthephysicalitemsthatcanbeobjectivelyverifiedbyscientificmethodswhenevernecessary.Itisimportantnottoassignmeaningorpassjudgmentonwhatyouseeatthetimeofobservation.Collectthefacts:

Whatkindsofpeoplearepresent?Whatobjectsarepresent?Whereistheactivitytakingplace?Whatistheenvironment?Arethereany“workarounds”takingplacewheretheuseristryingtosolveaproblemwithoutanyexistingsolutionsathand?

Forexample:Kidsareswappingfood.Somearethrowingtheirlunchesinthegarbage.

3.Developahypothesis.Dothisonlyafteryouhaveexhaustedyourabilitytotakeinobjectivedata.Basedonwhatyouhaveobserved,developahypothesisforwhatyouthinkishappeninginthelocationyouhaveselected.Forexample:Thekidsareswappingfoodandthrowingtheirlunchesinthegarbagebecausetheydon’tlikewhat’sintheirlunchboxes.

4.Secondlevelobservation:lookformeaning.Conductasecondlevelofobservationforthirtytosixtyminutes.Basedonwhatyouareseeing,begintomakenoteofwhatyouthinkishappening–themeaningbehindtheactions,interactions,events,andobjects.Theseaspectsarehighlysubjectiveandwilltapintoyourintuition.Askyourselfthesequestions:

Whyisthishappening,andwhyarepeopledoingthesethings?Whatobjectsareimportant?Whatroledotheyplay?Howarepeopleengagingwitheachother,withobjects,andwiththeirsurroundings?

Whatisthecontext(socialorpractical)thatismotivatingthemtodothesethings?

Forexample:Thelooksontheirfacessuggestedtheythoughtsomeofthefoodintheirlunchboxeswasdisgusting.Thekidsdon’tlikewhatwaspackedforthemathome.Iftheycan’tswapit,theythrowitout.

5.Articulateinsightsandobservedpointsofpain.Analyzeyournotestoseeifyourhypothesiswascorrectandifitrevealedanythingnewabouttheworldthatyoudidnotknowbefore,includingdefiningmomentsthatreveal“pointsofpain”orstruggles.Thesenewinsightsshouldbecapturedandusedaspartofyouruserunderstandingresearch.

Forexample:Ifkidshadachoiceonwhatwentintotheirlunchboxes,theymightbelessdisappointedinlunchandmorelikelytoeatahealthylunch.

TipsMaterialsthatcanhelp:You’llwanttohaveacameraandanotepadtowriteandsketch.

Keyquestionstoconsiderinthisactivityinclude,Whataretheobservablefacts–thepeople,objects,andactivitiesthatarepresent?Howarepeople

interactingwitheachother,objects,andtheirsurroundings?Whatisreallygoingonhere?Whatcouldthatmeanorsuggest?

Effectivefieldobservationisastructuredanddisciplinedexercise.Unstructuredobservationrunstheriskoffocusingonlyonthethingsthatinterestyou,ratherthantheobjectivethingsgoingon.

Bemindfulofethicalconsiderations.Remembertobeconsiderateoflocalnormsofconduct;maskorsecuretheidentityofpeopleorplacesyouareobserving,andberespectful;donotbeintrusiveordisruptive.

WHATMIGHTTHISLOOKLIKE?Figure41depictsthesubjectofanobservationexerciseonworkstyles.Thenotesthatfollowshowwhatmightemergefromtheexercise.

Fig.41Observation:FirstLevelandSecondLevel

ObservationsNotesFirstlevel:JustthefactsItis10:30a.m.Thismanisinanopenofficespace,athisdesk,infrontofhiscomputer–it’saMac.Thereisamugonisdesk.Therearetoysonhisdesk(whichhekeepspickingup),includinga“Russiandoll,”aminiatureEiffel

Tower,andapinkrubberbrain.Therearedrawingsandstickynotesonthewallbehindhim.Thereisabikeandhelmetbesidehim.

Secondlevel:Whatcouldthatmean?

Thismanisworking.Alloftheobjectsandhissurroundingssuggestheisinacreativerole.Thetoyssuggesthehasaplayfuloutlook.Heapproacheshisworkinacreativewayandvisualizeshisideasashedevelopsthem.Hehasappearedtohavecreatedhisownlittleinspiringworkspaceinthisopenoffice.

USERJOURNALSUNDERSTANDINGTHEUSERJOURNEY

WHYDOWEDOTHIS?Tostimulatedialoguewithparticipantsandrevealnewinsightsbasedonuser-generatedcontent.Userjournalsareaneffectivewaytoengageusersintellingtheirpersonalstories,eitherasasupplementtoorinlieuofphotoelicitation(insituationswherephototakingisprohibited).Thisexercisewillrevealnewinsightsandserveasthebasisfordiscoveringunmetneedsthroughadeeperunderstandingofthesequestions:

Whatdoesthisexperiencelookandfeellikefromtheuser’sperspective?

Whatishappening,andwhatarethehighsandlowsoftheirexperience?

HOWCANYOUDOTHIS?1.Selectastakeholdergroup.Identifythekeystakeholdergroupwhose

currentjourneyyouwouldliketobetterunderstand,accordingtoyourfieldresearchplan.

2.Definetheexperience.Auserjournalexerciseasksindividualstodocumenttheirexperiencewithinthecontextofaspecificactivity.Theyrecordtheiractivities,thoughts,andfeelingsinajournaloverthecourseofafewdays.Yourprojectbriefwillhelpyoudefinetheexperienceyouwouldliketoknowmoreabout.Forexample,intheprojectonimprovingthechemotherapypatientexperienceinchapter5,takingphotographsinahospitalwasprohibited,soweaskedpatients,“Foreachofyourvisitstothehospital,pleasedocumentyourexperienceusingthisjournal.”

3.Designthepackage.Auserjournalpackageisakitthatissentoutto

individualusers.Eachkitcontainsthreedocuments:participantinstructions,journal,andinformedconsent.

Participantinstructions–Providesanoverviewofthepackageanddetailscontactinformation,exerciseinstructions,exerciseduration,importantdatesandtimes,andarequestforafollow-upinterview.

Journal–Providesdetailedinstructionsforcompletingtheuserjournalexercise.Itstatesthepurpose,procedure,researchactivity,andthoughtstarters.

Informedconsent–Providesanethicalagreementforconductingtheresearchexercise.Itstatesthepurpose,procedure,confidentiality,contact,andconsent.

4.Recruitandscheduleparticipants,anddelivertheresearchpackage.Whentheyarerecruited,afollow-upinterviewofapproximatelysixtyminutesshouldbescheduledtotakeplaceatalocationthatismostconvenientfortheparticipant.Whentheyarerecruitedandtheinterviewisscheduled,theresearchpackagecanbeplacedwiththeparticipant.

5.Conducttheinterview.Conductafollow-upinterviewwiththesubjecttodiscussthejournaltheyhavecreated(whichyoushouldkeepforreference).Thepurposeofthisinterviewistolistentotheirstoriestogaindeeperunderstandingintotheirneeds.

TipsRefertoListeningandRecordingfortipsonconductinganinterview.Userjournalsareahandytooltouseinconjunctionwithaphoto-elicitationexercise.Journalsallowuserstorecordtheirthoughtsandexperienceswhentheyarenotcomfortabletakingphotographs(duetosensitivityissues)orinenvironmentswherepicturetakingisnotappropriateorevenallowedduetoconfidentialityorprivacyrestrictions(likeanofficeorhospital).

Youcandesignthejournaltoelicitinputonseverallevels,includingfeelings,timing,location,thoughtspassingthoughtheuser’shead,etc.Thekeyistomakeituserfriendlyandnotoverlycomplicated.

Findingindividualstoparticipateinyourresearchisoftensomethingbestlefttoprofessionalrecruitingfirmswhocansourceparticipantsotherthanyourfriendsandfamily.Workwiththemtoidentifytherecruitingprofile,howmanyparticipantsyouwouldliketorecruit,whattheywilldo,andhowtheywillbecompensated,asperyourfieldresearchplan.Alower-costwayto

recruitindividualsistoaccessyourownprofessionalandpersonalnetwork,thoughthismayresultinalessobjectivesample.

Besuretocompensateresearchparticipantsfortheirtime.Thatmightbecash,agift,oraredeemablegiftcard.

WHATMIGHTTHISLOOKLIKE?Inthestudyonthechemotherapypatientexperience,weaskedpatientstokeepajournalontheirwaytoandduringhospitalvisits(seeFigure42).Thesejournalspromptedthemtotellstoriesabouttheirexperiencesthatrevealeddeeperinsightsandunmetneeds.

Fig.42PatientJournal

PHOTOELICITATIONDISCOVERINGUNMETNEEDSTHROUGHSTORYTELLING

WHYDOWEDOTHIS?Totriggerinsightfulstakeholderstoriesthroughsubject-generatedphotographs.Listeningtostoriesisoneofthemostpowerfulwaystogleannewinsights.Photoelicitationisaneffective,open-endedwaytopromptimportantstakeholderstoriesaroundabroadlydefinedactivityanddiscoverinsightsnotnormallyuncoveredthroughamoredirectedlineofquestions.Itwillrevealnewinsightsandimportantunmetneeds,asthebasisforcreatingnewhuman-centeredvalue.Itwillhelpanswerthesequestions:

Whathelpsandhinderspeopleincarryingouttheactivityofinterest?

WhatarethePOEMS(people,objects,environments,messages,andservices)theyencounter?

Whataretheirunmetneeds?

HOWCANYOUDOTHIS?Thismethodologyismuchlikethejournalexercise,butphotoelicitationrevealsmorespecificandtangibleuser-driven“triggers”thatwillrevealevenmorepowerfulstoriesandinsights.54

1.Definetargetparticipants,withanemphasisontheenduser.Referenceyourstakeholdermapandprojectbrieftodefinewhomattersmost.

2.Definetheactivity.Aphotoelicitationexerciseasksindividualstotake

picturesrelatingtoanactivityintheirlife,exploringbothpositiveandnegativeaspectsoftheirexperience.Thiscaneasilybedonewithadigitalcameraorphone.Yourprojectbriefwillhelpyoudefinetheactivityyouwouldliketoknowmoreabout.Followingareafewexamples:

“Takephotographsthattellyourstoriesaboutmanagingyourhealthandwellness–whathelpsandwhathindersyou.”

“Takephotographsthattellstoriesabouthowyoumanageyourpersonalfinances–whathelpsandwhathindersyou.”

“Takephotographsthattellstoriesaboutcommutingtoandfromwork–bothgoodandbadexperiences.”

3.Designthepackage.Aphotoelicitationpackageisakitthatissentouttoindividualusers.Eachkitcontainsthreedocuments:

Participantinstructions–Providesanoverviewofthepackage.Itdetailscontactinformation,exerciseinstructions,exerciseduration,importantdatesandtimes,andarequestforafollow-upinterview.

Photoinstructions–Providesdetailedinstructionsforcompletingthephotoexercise.Itstatesthepurpose,procedure,researchactivity,andthoughtstarters.

Informedconsent–Providesanethicalagreementforconductingtheresearchexercise.Itstatesthepurpose,procedure,confidentiality,contact,andconsent.

4.Recruitandscheduleparticipants,anddelivertheresearchpackage.Whentheyarerecruited,afollow-upinterviewofapproximatelysixtyminutesshouldbescheduledtotakeplaceatalocationthatismostconvenientandcomfortablefortheparticipant.Whentheyarerecruitedandaninterviewisscheduled,theresearchpackagecanbeplacedwiththeparticipant.

5.Followupandcollectphotos.Onceeachindividualhascompletedtheexercise,theycaneitheremailthephotostoyouinadvanceorbringtheirrecordingdevice.Ineithercase,itisvaluabletoretainthephotosforlaterreference.

6.Conducttheinterview.Ifyouhavereceivedthephotosfromtheindividualinadvance,organize(butdonotreorderoredit)thephotographs.Conductafollow-upinterviewwiththesubjecttodiscussthephotostheyhavetaken.Yournumber-onejobistolistenwithempathyandanopenmindtotheirstories,nottoaskdirectquestions.

TipsPhotoelicitationisavaluableexercisethatrequirestimeandfocus.Itisoftenbesttousethistechniqueonkeystakeholdergroups.

Thereisnosuchthingasa“bad”picture.Donotfilteroutpicturesbeforeyoubegintheinterview.Evenbadpicturesusuallyhaveastorybehindthem.

SeeListeningandRecordingforinterviewingtips.

WHATMIGHTTHISLOOKLIKE?Fig.43PhotoElicitation:InspirationthroughStorytelling

Hereisaphotothatwastakenbyapoliceofficerwhowasundergoingchemotherapytreatment.Hedescribedtheemptyfeelinghefelteverymorningwhenhewokeupandsawhispoliceuniformhanginginhiscloset.Itremindedhimthathewasnotactivelyservinghiscommunityandbeingaproductivememberofsociety.Hissenseofself-worthsufferedduringhistreatmentperiod.(Thataloneinspiredanideafora“chemobuddy”program.)

Fig.44PhotoElicitation:ThereAreNoBadPhotos

Thisphotographshowsthattherearenobadphotos!Thisdarkphotowastakenbyawomanwithanextendedfamilyoverseas.Whiletheinterviewteamwasreadytodeletethisphoto,itturnedouttoprovidevaluableinsight.Thewomandescribedtheglowingcomputerscreeninadarkroom.Sinceherfamilyisontheothersideoftheworldandthereisatwelve-hourtimedifferencebetweenherandherfamily,sheoftencallstheminthemiddleofthenight.Thisledtoastoryabouttheimportanceofkeepingintouchwithherfamilyrootsandthevaluesheplacesonherculturalidentity.Thatwasarichstoryforabadpicture!

LISTENING&RECORDINGGETTINGTHEMOSTOUTOFINTERVIEWS

WHYDOWEDOTHIS?Togleanthedeepestunderstandingandmostpowerfulinsightsoutoftimespentwithimportantstakeholders.Anempathic,mindful,anddisciplinedinterviewercandrawoutstoriesaboutanindividual’slifethatrevealfreshinsightsandunmetuserneeds,andwhicheventuallyserveascriteriaforcreatinginnovativesolutions.Comprehensiverecordingwillprovidearichdatabasetotranslateintounmetneeds.

HOWCANYOUDOTHIS?Interviewsmayuseprompts(likephotosorjournals)orbeconductedbysimplyaskingpeopletotellyouastoryorrecountanexperience.

1.Prepareanddefinetherolesoftheresearchteam.Interviewsarebestconductedinteamsoftwo.Oneteammembertakestheleadandguidestheinterview.Theotherindividualtakesnotesoneverythingtheyhearandsee,makingsurenottoleaveoutanydetailsonstories,definingquotes,orobservations.Itisalsoimportantthatthispersonmanageanyvoiceorimagedevicesyoumayhavetorecordtheinterview.Prepareyourroles,materials,andprompts(e.g.,userphotosorjournals)beforetheinterviewbegins.

2.Explaintheinterviewprocesstotheparticipant.Thestartoftheinterviewshouldbeusedtowelcomeandmaketheintervieweefeelcomfortable.Belowisanexampleofhowyoumightbeginyourinterview:

“Todaywewanttohearyourstoriesabout[subjectmatter].Thisismeanttohelpusunderstandyourexperiencesonthistopic.Therearenorightor

wronganswers–thisiswhollyaboutlisteningtoyourpersonalstoriesandwhatmatterstoyou.”

Inasituationwherephotosareusedasprompts,youmightadd,“Tohelpyoutellusyourstorieswewantyoutokeepfivethingsinmind:”55

People–Whodoyouencounterandinteractwithduringthisactivity?Objects–Whatarethethingsyouuseandinteractwith?Environment–Whataretheplaceswherethisactivitytakesplace?Messagesandmedia–Whatinformationareyoulookingforandhowdoyougetit?

Services–Whataretheservicesandsupportsystemsyouuse?3.Conducttheinterview,probingwithopen-endedquestions.Askabout

theirstoriesinanopen-endedmanner:“Tellmeyourstoriesabout[thispictureorthissubject],”“Tellmemore,”or“Whyisthatimportanttoyou?”Itisimportanttoaskopen-endedquestionstohearparticipantstories.Askingdirect,product/service-specificquestionswillnotrevealthesamedepthandbreadthofinsightinthesearchforbroaderunmetneeds.

4.Listenandletthemtelltheirstoriesontheirterms.Conductingaproperinterviewwiththeuseriskeytogettingtherichestandmostunfilteredinsights.Herearesomepracticaltips:

Makeitnatural.Itiscrucialthattheintervieweefeelsateaseandabletotalkfreelywithoutpressureorjudgment.Thiscanbeachievedthroughgenuineempathy,withanappropriatedoseofneutrality(i.e.,controlyourreactionstotheirstories).

Letthemdo(all)thetalking.Empathyandinsightwillcomeonlyifyouarenotattemptingtosteertheconversationandareopenlyandintentlylistening.Foratleasttheopeningpartoftheinterview,tryaskingonlytwoquestions:“Why?”and“Couldyoutellmemore?”Product/service-specificquestionswillleadtolargelynon-inspiringresponsesandwillrarelyuncoveranunarticulatedneed.

Becomfortablewithsilence.Weareoftennotcomfortablewith“deadair.”Itisimportanttoovercomethisdiscomfort,asthesemomentsofsilencewillallowpeopletobefreewiththeirstories.Oftenthebiggestburstofinsightcomesafterfourorfiveseconds(aneternity!)ofsilence.

Recordeverything.Asanote-taker,capturethestoriesandquotestobringtolifethepictures,journals,orotherprompts.Beonthelookoutformomentsofexcitementorfrustration.Recordinformationinthe

user’sterms,includingtheobviousorseeminglyunimportant.Captureanynonverbalcluestheremaybeinemotions(“hegottearyeyedwhen…”),behaviors(“hewasfidgetingduringhisrecountof…”),andbodylanguage(“helookedlikeallhisenergywaszappedoutofhimwhen…”).

TipsMaterialsthatmightbehelpful:anorganizednote-takingtemplateandarecordingdevice(suchasyourphone).

Exerciseempathyandmindfulness–andpayattentiontoeverydetail.Resistthetemptationtoaskdirectquestionsthatareofinteresttoyoubutnottothem.Youareultimatelylookingforunmetneeds,nothowtoconfigureorpriceyoursolution.

Locationshouldbeconducivetofocusedlisteningandideallyshouldbeintheparticipant’snaturalsurroundings.Whileyoucandothisvirtually,itisvaluabletoseethemandinteractwiththem;phoneinterviewscanbedonebutarefarfromideal.

WHATMIGHTTHISPROCESSLOOKTHISLIKE?Figure45depictstheinterviewingandnote-takingprocessgraphically.

Fig.45InterviewRolesandNote-Taking

MINDMAPPINGMAKINGCONNECTIONSTOUNDERSTANDTHEWHOLEPERSON

WHYDOWEDOTHIS?Toappreciatethe“wholeperson”andhelpmakeconnectionsbetweenseeminglyunrelateddatapointsandobservationsfromanindividualinterview.Thismethodofvisualizationisathinkingtoolthathelpsmakethethoughtsandideas(the“stuff”inyourhead)explicitforyouandotherpeople.Itisusedforavarietyofpurposes,includinginterviewdebriefing,organizingyourthoughts,ormakingsenseoutoftheresearchfindings.Ithelpsyouthinkthroughquestionssuchas,What’sreallymotivatingthisperson?Whatarethemainthemesemergingfromthisinterviewandhowdotheyconnect?

HOWCANYOUDOTHIS?1.Beginwiththeuser.Startinthecenterofapieceofpaperwiththe

interviewee’sname.Drawalinetothefirstthemeortopicitmakesyouthinkofinthecontextoftheinterview.Refertoyourinterviewnotestohelpyourecountwhatyouheard.Askyourselfthesequestions:

Whatwasthemostsurprisinginsightfromthatinterview?Whatdoesthatmean?

Whatwastheoverallthemebehindwhattheysaid?Howdoesthatconnectwithotherthingstheysaid?

2.Expandthemap.Workoutwardsinalldirections,puttingsimilarideasclosertoeachother.Thisprocessencouragesyoutorecountthestoriesyouheardinafluidandnaturalway.

3.Lookforpatternsandconnections.Whenyoubelieveyouhavemostof

yourinsightsoutonpaper,considerhowitalllinkstogether.Usecirclesorlinestohighlighttheseconnections.Askyourself,What’sreallymotivatingthisperson?Whatarethemainthemesemergingfromthisinterviewandhowdotheyconnect?

TipsThingstohaveonhand:userjournals,interviewphotographsandnotes.Makesureyourpaperislargeenough,soyouhaveroomtoexpanduponyourthoughtsorideas.

Thisisanexcellentwaytodebriefaninterviewwithyourinterviewpartner(s).

Trynottofilterwhatyouputdown;writedowneverythoughtorideathatcomestoyou.Alongtheway,askyourself,Whyisthatimportanttothisperson?(SeetheMotivationalMappingtoolfortipsonhowtodothis.)

WHATMIGHTTHATLOOKLIKE?Figure46isanexampleofamindmapbasedonaninterviewwithapatient.

Fig.46MindMapping:APatientInterview

SUBJECTPROFILESSYNTHESIZINGANINTERVIEW

WHYDOWEDOTHIS?Tosynthesizeandrecordtheimportantaspectsofaninterviewandprovideaquickreferenceoftheindividualsyouhaveinterviewed.Itcanserveasahelpfulreferenceforindividualinterviews,includingkeymotivators,definingquotes,andinsightfulaspectsofthisperson’sstory.Youwillhavemanyinterviews,andproperrecordingofeachonewillensurethoughtfulnessandrobustnessinyourresearch.

TipsDrawfromyourinterviewnotes,mindmap,andmotivationalmapping.Includedefiningquotes–thesearevaluableinkeepingyourdiscoveriesinunderstandablelanguageandarehelpfulinarticulatingneedstatements.

Keepthesubjectprofilebriefandsuccinct–onepageisbestandwillforceyoutosynthesize;youmayhavedozensofinterviewstoconsider.

Usethesubjectprofilethroughouttheresearchprocessasaquickandeasywaytorecalldifferentinterviewsubjectsataglance.

WHATMIGHTTHISLOOKLIKE?Figure47isanexampleofasummaryofanin-depthinterview.

Fig.47SubjectProfiling

ParticipantName BenShipley

ParticipantAge 62Date&Time 05/07/10@12:30a.m.InterviewLocation CoffeeShopInterviewTeam Alex,AlanaInterviewDuration 1hour

ProvideabriefoverviewoftheuserBenhasbeentheownerandoperatoroftheOvertheTopSoxCo.forovertwentyyears.Hehasabackgroundinmanagementandhashelpedsustainandgrowtheeighty-year-oldcompanyhisgrandfatherstarted.Heisanextremelyhard-workingowner,whoworkstwelvehoursadayandneverseemstotireoftheconstantchallengeshismanufacturingbusinesshastooffer.Benisproudofhisstaff,hisbusiness,andespeciallyofallthesockstheymakeandsell…“Everyonealwaysthinksofsockslast,butwealwaysthinkofsocksfirst!”

Describeyouruser’shabitsandpracticesrelevanttotheprojectBenisahugebelieverinthepowerthattechnologybringstohisbusiness.Hefeelsthatwithouttechnology,hewouldn’tbeefficientenoughtocompetewithgoodsproducedinChina.Thoughthecompanydoesmanufacturesocks,abigpartoftheircompetitiveadvantageisR&Dforlargeclients.Benisamakesahabitofconstantlyusingthelatestknowledgetofurthertheirunderstandingofproductdevelopmentandhowtechnologycanhelphim.Intheplant,muchoftheproductionisautomated,whichcutsdownmuchoftheirlaborcosts.

Benmakessuretovisitalloftheirlargeclientsface-to-facetoestablishagoodrapport.Healsorealizesthepotentialofgreatstaff;hehasmanypotentialhirescominghiswayduetotherecentdownturninmanufacturingjobs.Hetriestochoosethosewhohavegreatskillandsomethingtooffer,evenifthereiscurrentlynotapositionforthemattheplant.

Whatisthispersonallabout–whatdriveshim/her?Benisanentrepreneurandbusinessenthusiast.Helovesthatfactthateverydaythereisanewchallengetotackleandhecanusehismanagementskillstosolveit.Hevalueshisemployees.Heseesthesilverliningineverything,sohealwaysseesproblemsasopportunities.

Whatisthisperson’sbiggestpointofpain?Hisbiggestpointofpainiscompetingagainstlargebrandnameswhocaneasilyundercuthisprices.Thiscanleadtoalossofprofitandcaneasilyaffecttheestablishedrelationshipshehaswithhisclients.Controlofhisinventoryisanotherpointofpain:Benneedstobeawareofwhatisgoingoninhiswarehouseatalltimestomakesurethingsarerunningsmoothly.Hehastokeepthecashregisterringingtokeepthepeoplehevaluesonthepayroll.

DISCOVERYEXCHANGEMAKINGCONNECTIONS&BUILDINGAFRAMEWORKFORDATAANALYSIS

WHYDOWEDOTHIS?Tovisuallycapturecollectiveresearchinsights,asameansofbothsharingdiscoveriesacrosstheteamandprovidingaframeworkforsubsequentanalysis.Asteammemberssharetheirstakeholderstoriesandinsights,youwillbuildcollectiveunderstandingandintuitivelyformulateahypothesisoncommonuserissuesandneeds.Duringthisexchange,patterns,themes,andcommonneedswillbegintoemerge,andyouwillbeabletomakeintuitivelinksacrossmanyinterviewsandvolumesofdataandformulateaframeworkhypothesisforanalysis.

HOWCANYOUDOTHIS?1.Assignafacilitatorandvisualizer.Theywillrecordtheexchangeandlead

thegroupdiscussion.Allteammembersshouldbepreparedtosharetheirintervieweestoriesandshouldhavetheirresearchnoteshandy.

2.Beginwithonecompellingstory.Oneteammembershouldbeginbyrecountinganinterviewstorythatfirstcomestomind.Itismostpowerful(andempathic)torecountthestoryinthefirstperson(i.e.,asifyouaretheinterviewee)andnotinterpretorfilterthestorythroughyourownlens.Whilestoryisbeingrecounted,thevisualizershouldmarkdowndefiningquotes,keythemes,orwordsthatemergefromthestory.Thevisualizerwillstarttocreateaconsolidatedmapoftheresearchfindings.

3.Buildoninsights.Otherteammemberswhohavesimilarstoriesorrelatedinsightsshouldsharethem.Thiswillhelptobuildonthenumberofinsightsandhelptofleshoutthevisualmap.

4.Sharestories.Oncethefirststoryandinsightshavebeenexhausted,thenextteammembershouldshareanother(quitedifferent)researchstorythattheyfeelisimportant.Theteamshoulddothisuntilagoodcross-sectionofstorieshasbeensharedandclearpatternsemerge.

5.Pauseforreflectionandlookforconnections.Usecirclesorlinestohighlightpatternsandconnections,lookingforimportantthemesandcommonneeds.

6.Articulateashortlistofhypothesizedneeds.Basedonyourexchangeandthepatternsthatemerge,articulateashortlistofneedsthatyoubelievearecommontoaparticularstakeholder,keepingSPICEinmindtodefineneedsholistically.Ideally,youwillgetthisdowntonomorethanfivetoseveninitialneeds.Thislistwillserveasaninitialframeworkforneedanalysis.

TipsSomeusefulthingstohaveonhandforreference:userjournals,interviewphotographs,mindmaps,andsubjectprofiles.

Itispreferablethatthefacilitatorbesomeoneotherthantheprimaryinterviewers–someonewhocanbringanopenmindtotheprocessoflisteningandcapturingtheinsightsofeveryoneinthegroup.

Capturedefiningquotes.(Forexample.,“Iwasterrifiedonmyfirstdayofschool.Everythingwasnew.”)

Usealargewhiteboardorposterpapertoensurethatyouhaveenoughspacetodevelopconnectionsandlinks.

Thisisanintuitiveprocess.Lookfordeepermeaningandcommonneedsacrossalloftheinterviews.Motivationalmappingcanhelptaketheconversationtoadeeperandmoremeaningfullevel.

WHATMIGHTTHISLOOKLIKE?Figure48isanearlystagevisualizationofadiscoveryexchangeabouthowpeoplefindvalueandmeaninginlife.Discussionsgeneratedasharedunderstandingthroughinsight-richstoriesandrevealedcommonpatternsaroundcommunity,culturalidentity,andbalancedliving.

Fig.48CapturingStoriesandMakingConnections

MOTIVATIONALMAPPINGSEARCHINGFORDEEPERMEANING

WHYDOWEDOTHIS?Tothinkmoredeeplyaboutwhatyousawandheardacrossyourinterviews,andarticulatetheunderlyingmotivationandunmetneed.Motivationalmappingwillhelpgivedeepermeaningtoobservations,elementsofstoriesandquotes,andrevealmorethantheobviousstatementsandinsights.Itwillhelpyoutranslateyourcollectionofinsightsintodeeperuniversalneeds,asinputtoyourneed-findinganalysis.Motivationalmappingcanbeusedinconjunctionwiththeinterviewmindmapping,yourdiscoveryexchange,oranalysisofneeds.

HOWCANYOUDOTHIS?1.Selectaninterestingcommentfromastory.Inthecenterofapieceof

paper,writedownacommentoractivityforwhichyoubelievethereisdeepermeaning.Forexample:“IsatforhoursstaringatthewallwithnothingtodowhileIjustwaitedendlessly.”

2.Defineinsights.Branchingoffofyourinitialobservationorquote,considerwhatthatmightmeantothemonamoresubjectivelevel.Forexample:“Ihavenotimetowaste.Mytimeisvaluable.”Considerotherinsightsthecentralstatementmightsuggestanddrawanotherbranchonyourmap.

3.Articulatetheneed.Gooneleveldeepertoconsiderwhatunmetneedthatmaypointto.Forexample:“Ineedtofindtimeandmakethebestuseofit”or“Ineedtobeproductive.”

Tips

Ifdoingthisasagroup,itishelpfultoeitheruseawhiteboardorabigpieceofpaper.

Liketheobservationexercise,motivationalmappingwillenhanceyourempathyandunderstandingonadeeperlevel.

Lookforneedsthataredeepenoughtodosomethingabout,butnotsoabstractthattheyseemvagueanduninspiring.

Intuitionplaysanimportantrolehere.Throughallofyourresearch,youwillhaveanintuitivesenseofwhatreallymatterstoandismotivatingtoyouruser.

WHATMIGHTTHISLOOKLIKE?Figure49isavisualizationforthePrincessMargaretHospitalproject:

Fig.49MotivationalMapping

NEED-MINING&ANALYSISTURNINGSOFTDATAINTOHARDDATA

WHYDOWEDOTHIS?Tobringrigortoneed-findingandprovideastrongfoundationofmeaningfulneedsasthespringboardforsolutiondevelopment.Need-miningwillensurethatyourdiscoveriesarebroad-basedandmeaningful,asopposedtojustmomentaryinspirations.KeepingtheSPICEframeworkinmindwillensureyouconsiderthemanydimensionsofyourusersandotherstakeholdersandwillleadtoawell-roundedandclearlydefinedsetofuniversalneeds.Therearemanyapproachestoanalyzingneeds;herearetwodistinctapproaches:

Anorganicmethodinwhichyouclusterinsightsonstickynoteswillgiveyouasenseofthepatternsofinsightsandneedstoinspirefreshthinking.

Amorerigorousanalysis(aspresentedbelow)isrecommendedifyouareundertakingasignificantprojectforwhichyouwouldlikeastrongerongoingfoundationtoreferenceonacontinuingbasis.

Thisprocessshouldleaveyouwithfourtosixdeep,unsatisfiedneedsthatwillserveasthecriteriaforinnovationandvaluecreation.

HOWCANYOUDOTHIS?Thisprocessisguidedbytheframeworkyouwillhaveintuitivelybuiltinyourinitialgroupdebriefinganddiscoveryexchange.Itisbestdoneifyouhavetranscribedallofyourinterviewsintoatypewrittenformatfromyourinterviewnotesorfromanaudiorecording.(Atranscriptionservicecanquicklyandcost-effectivelydothisforyou.)Youwillcontinuetodiscover“hidden”insightsandneedswithinthesestoriesandquotesasyoudeconstructthemintoa

comprehensivecollectionofdatapoints.Thespreadsheetdescribedbelowwillshowyouhowyoucanturnyour

wealthofdataintoapowerfulfoundationforinnovation.

1.Deconstructyourinterviewsintoinsightfulquotesandsnippetsofstories.Referencethefulltextfromeachinterview.Thequotesandsnippetsyoupullfromeachwillbecomeyourinsight“datapoints.”Insightscancomefromthestoriesyou’veheard,agreatquote,orsomethingrelevantthatyou’veobservedintheenvironmentortheinterviewee’sbehavior.Recordeachoftheseinsightinindividualcellsofanexcelspreadsheet.Usingexcerptsfromthestoriesandquotesfromyourinterviewtranscription,begintoidentifyinsightsthatare:

Revealing–aglimpseintodeepermotivationsandneedsAuthentic–supportedbythestory/observationsPractical–triggeringideasonwaystohelpthesubject

2.Analyzetheinsightandconnectittoyourinitialneedframework.Referringtothelistofhypothesizedneedsidentifiedinyourinitialframework(seeDiscoveryExchange),considerwhichoftheseneedsmaybeunderlyingeachinsight.Oneinsightfulstoryorquotemaypointtomorethanoneneed.Duringthisprocess,becognizantofemergingnewneedsandbepreparedtoadjustyourneedanalysisframeworkandrevisitinsightsinlightofnewlyidentifiedneeds.

3.Tabulatetheuniversalityandintensityoftheseneeds.Thiswillgiveyouanindicationoftheintensityanduniversalityofneedsbycross-referencingtheinterviewinsightswiththeintuitivelyhypothesizedneeds.Youcandothisbycreatingaspreadsheetwithcolumnsasfollows:

SpreadsheetColumnA–Identifythesubject(theinterviewee).SpreadsheetColumnB–Profiletheintervieweebriefly.SpreadsheetColumnC–Captureeachinterview“snippet”witheitherasingleinsightfulquoteorasegmentoftheirstorythatyoufeelrevealedaprofoundinsight.

SpreadsheetColumnD+–Eachcolumnwillrepresentoneofyourhypothesizedneeds(maximumofsevenneeds).

ForeachentryinColumnC,connectittotheappropriateneedsincolumnsD+byputtinga“1”ineachcolumnwithwhichyoubelievethedatapointisassociated.Tabulatetheintensityanduniversalityofneedsbycalculatingeachcolumnonthespreadsheet.Thiswillhelpyoutoverifytheneedsinyourinitialneedframeworkandprovideyouwithaflexibledatabaseofall

ofyourinterviewsthatyoucanusetoanalyzeandsubstantiateyourneed-findingconclusions.

TipsAllyouneedtotranslatesoftdataintoharddataisExcelsoftware!Usetheoutcomeofyourcollectivediscoveryexchangeasaninitialframeworkgoingintoanalysis,butbepreparedtoalterit–itisonlyaningoinghypothesis.Don’tforce-fitneedstoyouringoinghypothesis.Ifanewneedemerges,addittothelistofcoreneedsandrevisittheassignmentofdatapointstoneeds.

Thisisahighlyiterativeandintuitiveprocess,thoughitculminatesinananalyticaloutput.

Needsoftencannotbearticulatedbyindividualsthemselvesandsurfaceonlywhentheneed-findingprocessiscomplete.Motivationalmappingcanhelpdefineadeeperneed.

Anygivendatapointmaybeassociatedwithmultipleneeds.Askyourself,“Couldthiscommentrelatetootherneeds?”Forexample,acommenton“waitingforhours”couldberelatedtoaneedtobemoreengagedandproductiveoraneedtohavemoreinformation.

Newtechnologiesandtoolsareemergingallthetime.Keepaneyeoutforlanguage-processingsoftwarethatcanhelpyoumakethemostoutofyourdatabaseofinsights.

WHATMIGHTTHISLOOKLIKE?Figure50isasectionofaspreadsheetthatillustrateshowtheindividualinsightsandquotesfromthehospitalprojectwerebrokenout,analyzed,andlinkedtoneeds.

Fig.50SpreadsheetAnalysisofSoftData

NEEDARTICULATIONDEFININGAPLATFORMFORINNOVATION

WHYDOWEDOTHIS?Toarticulateunmetneedsinawaythatinspiresthedevelopmentteamandcreatesavitalplatformforinnovation.Creatingnewhuman-centricvaluestemsfromadeepunderstandingofpeople’sneeds.Thisstepistheculminationofallofyourneed-findingresearch.IncombinationwithyourPersonasandadepictionoftheuser’sCurrentJourney(bothtoolscomelaterinthissection),theseneedswillserveasthebasisforcreatingandevaluatinghuman-centerednewsolutionsgoingforward.

Nowisthetimetoturnyour“harddata”backinto“softdata”bycapturingneedsinahumanandcompellingmannerasaninspiringspringboardforinnovating.

HOWCANYOUDOTHIS?1.Headlinetheneed.Summarizethemotivatingneedinashortphrase,using

userlanguageandavoidingabstractorgenericterms.Youwillneedashorthandletorefertoindevelopment.Forexample,onthePrincessMargaretHospitalproject,oneofthekeyneedswas“Engagement.”

2.Definetheneedclearly.Provideacleardefinitionofwhatyoumeanbythatneed,andensurethateveryoneunderstandsandbuysintothatdefinition.ThereisnothingthatcanderailyouinGear2morequicklythanlookingataneedandasking,“That’sclever,butwhatdoesthatmean?”Forexample,onPMH,“Engagement”meant“Turninglosttimeintofoundtimebygivingpatientsthemeanstomakemoreproductiveuseoftheirtime(bothwaitingforandduringtreatment)andengagingthememotionally,physically,intellectuallyorspiritually.”

3.Provideadefiningquote.Lookingbackthroughyourtranscripts,selectaquotethatcapturesthespiritoftheneed,asvoicedbyarealperson.Forexample,adefiningquotefor“engagement”was“Waitingisthemostpainfultime.I’mhereforfivehours.Thereisanopportunitytolearnandmakemeproductive.”

TipsThingstohaveonhand:userjournals,interviewphotographsandnotes.Needsshouldbearticulatedinahumanwaythatiseasilyunderstood(i.e.,somethingarealpersonwouldsay)andreinforcedwithinsightfulandcompellingquotes.

Needsmustberelevanttotheprojectandmustinspireabroadsetofsolutions.Theymustbebroadenoughtocreateopportunitybutnotsobroadthattheyarevagueanddonotinspiresolutions.

WHATMIGHTTHISLOOKLIKE?Thefollowingaresomeexamplesfromthehospitalprojectofhowyoumightarticulateanddefineneeds:

Engagement:Iwanttostayactiveandengaged.

Patientswanttofeellesslikepassiveobserversandfeelmoreincontroloftheirtreatmentprocess.Theywanttobestimulatedandmaximizeeveryopportunitytheyhavetogrowandheal.

“Iamhereforfivehours.Thereisanopportunitytolearnandmakememoreproductive.”

HealthyHealing:Iwanttorecoverinahealthfulmanner.

Chemotherapytreatmentcanbeaverydifficultprocessthatcantakeamental,emotional,andspiritualtoll.Patientsneedtobefreeofanyunnecessarystressorsthatwillnegativelyimpacttheirrecoveryprocess.

“Ienjoythewalktothehospitalthroughtheparks.It’stheonlytimeIwillbeoutsideallday.”

NEEDVALIDATIONDIMENSIONALIZINGTHEOPPORTUNITY

WHYDOWEDOTHIS?Tovalidateneedsandquantifyhuman-centeredopportunities.Need-findingisanexerciseinbuildingempathyandunderstanding,butitisalsoanexerciseinbuildingabusinesscase.Ascertaininguniversalneedsanddimensionalizingtheopportunitythroughquantitativeresearchisanimportantpartofmakingasoundbusinesscase.

HOWCANYOUDOTHIS?1.Designyourresearchsample.Definewhoyouwouldliketoincludein

yourresearchsample.Aimforadiverse,representativesampleofimportantstakeholders.

2.Decideonascalablesurveytool.Thiscouldbeapaperquestionnairethatisgiventoalargegroupofpeople,orasimpleonlinetoolthatmakescompletingthequestionnaireeasyforparticipantsandanalyzingdataeasyforyou.Therearemanytoolsavailable,includingSurveyGizmo.

3.Articulatetheneed.Consolidateyourinsightsintosimple“needstatements”thatyourinformantscanunderstand:e.g.,“Developtheskillsthatputmeatthetopofmygame.”

4.Implementthesurvey.Inviteparticipantstotakethisshortsurveyandaskthemtoratethefollowingtwostatementsonascaleofonetofiveforeachneedstatement:

Howimportantisthisneedtoyou?(1=Notatallimportant,5=Veryimportant)

Howsatisfiedareyouthatthisneedisbeingmet?(1=Notatallsatisfied,5=Completelysatisfied)

5.Gatherandanalyzeyourdata.Reviewtheresultsanddeterminehowyouwillusetheseinyourbusinesscase.

WHATMIGHTTHISLOOKLIKE?Figure51showstheresultsofsuchasurveyfortheCanadianBarAssociationproject,basedonresearchconductedtobetterunderstandmemberneedsandlevelsofsatisfactionwithservicesmemberscurrentlyhadaccessto.Thesediscoverieswerevalidatedthroughquantitativesurveystogaugethegapbetweentheimportanceoftheseneedsandmembersatisfactionintheseneedsbeingmet.Whattheyfoundweresignificantneed/satisfactiongapsacrosstheboard.Forexample,while81percentofmembersidentified“skillsforpracticesuccess”(distinctfromknowledgeofthelaw)tobehighlyimportant,only28percentofthemweresatisfiedwiththattheirneedswerebeingmet.ThissignaledasizableopportunityfortheCBAtofillthatgap.

Fig.51ValidatingUniversalNeedsandDimensionalizingtheOpportunityGap

PERSONASCREATINGHUMANARCHETYPES

WHYDOWEDOTHIS?Tocapturethearchetypesofimportantstakeholdersinholistictermsandputtheirneedsintocontext.Personasarefictionalcompositecharactersbasedondatafromrealpeople.Theyareusedtokeepyourdevelopmentcenteredonrealpeoplethroughoutthedevelopmentprocess.

HOWCANYOUDOTHIS?1.Defineimportantstakeholdergroups.Selectthemostcriticalstakeholders,

withpriorityalwaysontheultimateenduserofthesolution.Forexample,theCanadianBarrAssociationprojectfocusedonpracticinglawyers.

2.Determineifthereareimportantdifferenceswithinthesegroups.Basedonthedatageneratedfromresearch,lookfordifferenceswithingroupsintermsofmotivations,attitudes,andbehaviors.Ifonestakeholdergroupclearlycontainsmorethanonetypeofcharacter,createmorethanonepersonaifyoubelievethereisadangerofovergeneralizingaboutonegroupandeventuallycreatingsolutionsthatcouldalienateothers.Forexample,ontheCanadianBarAssociationproject,alllawyerssharedthesamesetofunderlyingneeds,buttheseneedswereexpressedindifferentwaysamongdistinctsubgroupsoflawyers,asshowninFigures52and53.Profilingthemseparatelyensuredalllawyerswereserved.

3.Personify.Characterizeeachofthedistinctstakeholdersyou’veidentifiedtoputtheirneedsintocontext.Yourpersonasshoulddepictkeydifferencesyouhaveobserved.Craftyourpersonatofeellikearealpersonbybringingthemtolifeinthefirstperson,citingdefiningquotesandincludingvisualsthatreflecttheirpersonalinterestsandlifestyles.Remembertocreatefictional

charactersbasedonrealresearchdata–makethemreal,notblandoridyllic.

TipsForinspiration,referencetheneedsyouhaveidentified,aswellasyourintervieweeprofiles,observations,andinterviewnotes.

Personasserveascriteriaforinnovation.Donewell,theycanaidothersinempathizingwithyourusersandinspireyouthroughoutthedevelopmentprocess,aswellashelpkeepthehumanfactoratthecenterofvaluecreation.

Whileneedsmaybeuniversal,eachpersonashouldhaveaclearanddistinctpointofview.Thiswillstretchyoursolutiondevelopmentinawaythatmaximizesuniversalappeal.

Respectconfidentiality:donotuserealnames,personaldata,orphotosfromyourusers.

WHATMIGHTTHISLOOKLIKE?InthecaseoftheCanadianBarAssociation,sixpersonaswerecreatedtobringuniversalmemberneedstolifeacrossdiverseprofilesoflawyers,fromyounglawyerstoseasonedprofessionals.Thesepersonashavebeenusedsincetheprojecttokeepthemembersfrontandcenterofdecisions,asnotedbyCathyCummingsinherinterviewinpartone.Figures52and53aretwoofthosepersonas,demonstratinghowtwoseeminglydifferent“people”cansharethesameneeds.

Fig.52Persona

Quinlee

Life–35yearsold,engaged,thinkingabouthavingkids

Career–Mid-sizedfirm,SeniorAssociate,BritishColumbia

Caresmostabout–Herfuture

IfeellikeI’matacrossroadinmylife.Thereissomuchgoingoninmyworkandpersonallife.Sixyearsago,aftergraduatingfromlawschoolinSingapore,ImovedwithmyfiancétoCanada,aswefeltitofferedthebestjobopportunities.IttookusalittlewhiletoqualifyasCanadianlawyers,andoftenweweren’tsurewhowecouldturnto,tohelpusfigurethingsout.NowI’mturning25,andmyfiancé’sfamilyhasbeenbuggingmeconstantly

aboutchildren.Iwanttohavekids,butIfeellikeithastakenmesolongjusttobecomeaseniorassociateatmycurrentfirm,andsecretlyIwashopingtomakepartnertracksoon.ButI’veseenhowparentalleavecanbea“careerkiller”forlawyers.I’veheardsomanystoriesaboutwomencomingbackandstrugglingwiththeirpracticeandclientbase,whilealsoraisingtheirkids.Itjustseemsalmostimpossibletobalanceboth.Although,evenwithmyaspirations,I’mreallyquestioningthefirmthatI’m

at.SometimesIjustfeelsounderappreciated.I’vereachedouttosomeoneImet4yearsago,apartneratanotherfirm,andaskedforherthoughts.Ijustdon’tthinkthatanyoneatmyfirmwouldreallyunderstandthesituationI’min.AlltheyseemtocareaboutiswhetherornotI’vebilledenoughhoursovertheweekends.Ijustwanttobeabletomaketherightchoices,butI’mnotsurehowtodosoatthemoment.“I’mworriedabouthowmychoicesaffectmyfuture.”

Fig.53Persona

Stanley

Life–64yearsold,re-married,2grown-upkids

Career–Largefirm,ManagingPartner,Ontario

Caresmostabout–Success

I’veworkedatthislawfirmmywholelife.Ithasn’tbeeneasy,butI’vebeenamanagingpartnerforthelast15years.I’mproudofwhatI’vebeenabletoaccomplishandkeeptoasmallcircleoffriendsthatI’vecometoknowandworkwithhere.Thiskindofsuccessisnotforeveryone,andI’veseenmanylawyers

leaveduetothedemandsofthisprofession.Personally,I’vesacrificedmyfirstmarriageandmissedwatchingmykidsgrowup.IrememberwhenIfirststartedoutatmyfirm,weallknewthatwehadto

workreally,reallyhard.Ifapartnerwantedustowalkthroughawall,wewoulddoit,noquestions.Therewasnootherwayformetoclimbtheranksthanbyapplyingmyself210percent,makingsurethatthepartnerssawmeasarisingstar.MypartnersandIstilllookforthatkindofdedicationinourassociates,especiallyiftheywanttobeonthepartnertrack.Bottomlineisthateverywakinghourcounts.Weareinthebusinessofsellingtime.Ifyouwanttobesuccessful,youhavetokeepupyourclientbaseandbillmorethanyourneighbor.Attheendofthedaytheclientsareattheheartofitall.It’stheone-on-one

relationshipsthatbuildthisbusinessfromthegroundup.It’sthatsideofthebusinessthatyoureallycan’tteach,soit’sagoodthingI’llbearoundatleastanother10years.“Timeandmoneyiswhatdrivesourbusiness.”

CURRENTJOURNEYCONTEXTUALIZINGTHEOPPORTUNITYTHROUGHSTORYTELLING

WHYDOWEDOTHIS?Tobringtolifethecurrentexperiencebydescribingactions,struggles,andfeelingsinawaythatcreatesempathyforothers.Thisisapowerfulwaytoevokeempathyforthecentraluser.Itwillhumanizeandcontextualizetheopportunityforthoseonthedevelopmentteamaswellasotherswithwhomyouwillshareyourproject.ThroughoutGear1,youwillgathernewinsightsintotheuser’sjourneyandthefeelings,people,andplacesthatarepartofit.

HOWCANYOUDOTHIS?1.Createatimeline.Begintosketchouttheirstorybydrawingalineona

largepieceofpaperthatrepresentstheappropriatetimeframeforacurrentuserexperience.Thistimelinemayrepresentafewhours,afewdays,orevenafewmonths.

2.Plottheexperiencestages.UsingyourinsightsgatheredfromGear1,plotthebeginning,middle,andendoftheexperiencealongthetimeline.Considerthepeople,objects,environments,messages,andservicestheuserencounters.

3.Detailthejourney.Thinkingaboutthelogicalprogressionofeventsuncoveredbyyourresearch,createanarrativestorythatencompassesthetypicaljourneyforyouruserastheycurrentlyexperienceit.Considertheuser’sstruggles,emotionalstate,functionalrequirements,andinteractionswithotherstakeholdersalongtheway.Toavoidbeingvagueaboutstagesintheexperience,shapeyourdepictionbyinjectingitwithtangibleelementsfromthePOEMSframework.Ifyougetstuck,referenceyourinterview

notes,needs,andpersonas4.Visualizeyourstory.Bringyourstorytolifebyillustratingthecurrent

journeythroughpictures,sketches,graphics,andevenashortinspiringslideshowormoviesettomusic.Thestorywillbemostpowerful–andmostlikelytocreateempathyfortheuser–ifitcapturestheirstrugglesonbothapracticalandemotionallevel.

TipsHighlighttheneedsandbehaviorsoftheuserswithoutgoingintounnecessarydetail,capturingthejourneyinaholisticandhumanmanner.

Aneffectivewaytocommunicatetheexperiencetoothersistousepresentationorbasicmovie-creationsoftwaretomakeasimpleanimatedmoviefromstillimages,text,andmusic.

WHATMIGHTTHISLOOKLIKE?Figure54isascriptfromthePrincessMargaretHospitalproject–asimpleyetcompellingthree-minutedepictionoftheopportunitytoimprovepatientexperiencebycapturingthedespairofthecurrentjourneyandtheneedsthatinspiredanewvisionforajourneyofhopefulhealing.Theuseofselectcopy,thetransitionfromslowandsadmusic,andtransitionfromtheblack-and-whitephotographyofthecurrentscenetocolorfulvisualsandinspiringmusicsetthetoneforthecreationofanewvision.

Fig.54CurrentPatientJourney

DESIGNCRITERIASYNTHESIZINGTHEPRINCIPLESFORSOLUTIONDEVELOPMENT

WHYDOWEDOTHIS?Todefinethecriteriafordevelopmentofnewsolutions.Takingyourknowledgeofmarket-basedopportunitiesandyourdeepunderstandingofwhatpeopleneedandconsolidatingbothintodesigncriteriawillguideyourdevelopmentprocessinadisciplinedwaytoensureyourideascreatenewanddistinctvalue.

HOWCANYOUDOTHIS?1.Startwithuserresearch.Reviewtheneedsthatyou’veidentifiedthrough

yourresearch.Thinkabouthowyoumightmeetthoseneedsandwritedownyourthoughtsasactionstatements.Forexample,inthecaseofHSO,peopleneededusefulinformationthatimprovedunderstandingandsharpenedtheirfocus.

2.Definewhatwouldmakeyoursolutionmostrelevantinthemarketcontext.DrawingfromyourworkinContextualizingYourChallenge,identifywhatwillmakeyourfuturesolutionmostsalientandvaluabletothemarketandsetyouapartfromyourcompetitors.Forexample,inthecaseofHSO,therewasahugemarketopportunitytoconnectpeople,actions,andinformationacrossthehealthcareecosystem.

3.Consolidatethecriteriathatwillallowyoutocreatethemostnewvalue.Establishasetofdesigncriteriathatwillmeettheneedsofimportantstakeholdersandcreategame-changingvalueinthemarket.

TipsAlignthesecriteriatoyouoverarchingenterprisemissionandbrand.Considerhowyoumightdeliveronthesedesigncriteriaintermsofyourcurrentrelationshipswithyourstakeholders.

WHATMIGHTTHISLOOKLIKE?InthestoriesaboutHealthStandardsOrganization’sjourneyinstrategictransformationinchapters3and6,asetofcriteriawassynthesizedfromitsworkonmarketcontextanduniversalstakeholderneeds.Thesecriteriaanchoredallofitssubsequentdevelopmentwork,keepingitsfuturevisionfocusedonaddressingmarketopportunities,humanneeds,andwheretheenterprisemightuniquelyaddvalue.

Puttheperson(andtheirhealth)atthecenter.

Activelyconsiderandengagetherightstakeholdersintherightway.

Cultivatetrustandaccountability.

Connectpeople,actionsandinformationacrossthehealthcareecosystem.

Provideusefulinformationthatimprovesunderstandingandsharpensfocus.

Enabletherightactionsbytherightpeopleattherighttime.

Transparentlycommunicatethelinktobetteroutcomes.

Adapttospecificneedsandsituationsthatcontinuallyoptimizeoutcomes.

GEAR2:CONCEPTVISUALIZATION

Thissectionpresentsavarietyofmethodsforexploringandprototypingideasandconceptsthroughcollaboration,experimentation,andcontinuousrefinement.Youwilllearnhowtoformulateaconcretevisionforsuccess,identifypotentialsolutionsforevaluation,andvalidateimportantgame-changingideas.

IDEATION&CONCEPTHARVESTINGEXPLORINGNEWPOSSIBILITIES

WHYDOWEDOTHIS?Toexpandthefieldofpossibilitiesforcreatingnewandmeaningfulvalue.Bytappingintotheexperienceandimaginationofadiverseteam,collaborativeidea-generationcanyieldnewandexcitingideas.Inspiredbyunmethumanneedsandengagingpersonas,newpossibilitieswillemerge.Ideationandconceptharvestingtogetheraddresstheimportantquestion:Howmightwebestmeetthisperson’sneeds?BygeneratingaLOTofideasforsatisfyingunmetneeds,youwillbeabletoidentifythreetofournewandexcitingmultidimensionalconcepts.

HOWCANYOUDOTHIS?Part1:Ideationwillgeneratehundredsofideas!

1.Beginbypickingonepersonaandoneneed.Youcanstartwithanyoneofthepersonasorneeds.Itisimportanttofocusononeatatimetomaximizeyoursenseofempathyinservingapersonalandspecificneed.

2.Frametheneedasaquestion.Identifyyourpersonaandoneunmetneed.Usethesetwoinputstocreateaquestionbasedontheunmetneed.Foreachneed,beginwithaquestionlikethis:“Howmightwe(theenterprise)help(thepersona)to(unmetneed)?”

3.Generateideas.Thinkingfreelyandwithoutjudgment,generateideasthataddressthisneed.Thegoalistogenerateasmanyideasaspossibleinashortamountoftime.Aimforquantityoverqualityinyourideas:themoreideas,

thebetter.4.Repeatforeveryneedandpersona.Thiswillgiveyouawealthofideas

frommanydifferentperspectives,allofwhichtouchonadifferentdimensionofhumanneedandcollectivelyfeedthecreationofarichandmultidimensionalsolution.Everyroundofideationwillgeneratefreshideas,takingallneedsandpersonasintoaccount.

Part2:Conceptharvestingtranslatesseeminglydisparateideasintobigideas.

5.Clusterandidentifylargerconceptthemes.Acrossyourvastpoolofideas,commonsolutionswillemerge.Lookforpatterns,clustersimilarideastogether,andidentifythebiggerconceptintheseclusters.Forexample,severalideasmayadduptoapersonalizedcoachingservicethatmayberelevanttoallpersonasandservemorethanoneneed.

6.Expandonthemostbreakthroughconcepts.Chooseyourtopthreeconceptsusingthefollowingcriteria:

Doesthisconceptaddressaneedandcreatevaluefortheuser?Isthisabreakthroughconceptthatcoulddramaticallyenhancetheuserexperience?

Oneconceptatatime,askyourself,“Whatmightthatlooklike?Howcouldthatwork?WhatkindofPOEMS(people,objects,environments,media/messages,andservices)couldthatentail?”

TipsAllowyourselvestothinkoutsideyourcurrentbusinessoffering.Often,theintentofconceptsthataretotallyoutsideyourbusinesscanbereconfiguredinotherways.Don’teditatthispoint.

Deferjudgingideasuntiltheend;buildontheideasofothers.Everyideaisvalid;sometimesbreakoutideasarerightnexttotheabsurdones.

Keepideasflowingbycapturingtheessenceoftheideaandquicklymovingon.Don’tstallbygoingintodetail.

Doodleorsketchtomakeyourideasvisual.Visualsareeasiertounderstandandwillinturnstimulatenewideas.

Usemetaphorsoranalogiestocomeupwithideas.Imagineasuccessfulcompany,thenaskyourselfwhatkindofideastheywouldcomeupwithtoaddresstheneedsframe.(ThisiscoveredmoreinthetoolMetaphors).

WHATMIGHTTHISPROCESSLOOKLIKE?Figure55illustrateshowthisprocessmightlookschematically:

Fig.55IdeationandConceptEnrichment

ROLEPLAYTOIDEATEEMPATHIZINGTOGENERATESOLUTIONS

WHYDOWEDOTHIS?Todevelopideasbyexperiencingtheworldfromauser’sperspective.Throughthisexercise,youwillcomeupwithideastoaddresstheuser’schallengesanddeveloparepositoryofoptionstobeadvancedasyoudesignyoursolutions.ThistoolissimilartotheearliertoolRolePlaytoEmpathize,whereyouweretryingtounderstandwhatthatpersonmightbeexperiencing.Byroleplayingtoideate,youwillbegeneratingsolutionsalongtheway.Generatingsituation-basedideastofeedyourideationandconceptdevelopmentissometimesreferredtoas“bodystorming.”

HOWCANYOUDOTHIS?1.Definetargetuserandoutlinethesituationalchallenge.Basedonthe

challenge,identifywhosepainpointsyouwouldliketoaddress.Thinkofasituationinwhichthisenduserstruggles–itcouldbeasituationwherethereisaphysicalormentalchallenge,oradifficultyorbarrierintheireverydaylife.

2.Describetheactivity.Createanactivitythatwillenableyoutoexperiencetheworldfromyourtarget’sperspective.Dothisbydefiningtheperson,theirsituation,andanactivitythatpresentsachallengeforthem.

3.Recreatetheexperience.Useprops,aids,orartifactsthathelptosimulatetheexperience.Viewtheworldthroughthisperson’spointofviewbylivingtheirlifeforatleastanhour.Fullyimmerseyourselfintheactivity,butkeepyourcreativemindopentoideasthatwillresolvethevariouschallengesthroughoutthisperson’sjourney.

4.Captureyourideas.Ifpossible,haveamemberofyourteamrecordyour

ideasalongthevariousstagesofyourexperienceintheuser’scircumstances.

TipsReferencetheworkyoudidinCurrentJourneytopinpointthecriticaltimesinauser’sjourneyandtheir“pointsofpain.”

Keepyourneedsandpersonasinmindtohelpkeepyourideationfocusedandrelevanttotheuser.

WHATMIGHTTHISLOOKLIKE?Inaprojectonmakingahomemore“kid-friendly,”onemightgetdownandcrawlonthefloorlikeatoddler.Whatyou’llseemightbefrightening!Youmightseeexposedplugs,smallobjectsburiedintherug,foodthatsomeonedroppedthathasspoiled,orsharpedgesonfurniture.Youcanimaginetheideas(andempathy)thatwouldcomefromsuchanideationexercise.

METAPHORSSTIMULATINGIMAGINATION

WHYDOWEDOTHIS?Tostimulateimaginationbycreatingananalogybetweentwounlikethings.Metaphorscanbeusedtofuelbrainstormingbytransferringqualitiesortraitsfromonecontextontoanother.Identifyingandbrainstormingoffananalogousreferenceorinspiringmetaphorcanhelptoexpandthepoolofbreakthroughideas.

HOWCANYOUDOTHIS?1.Describethe“feeling”oroutcomeyouwouldliketocreate.Basedon

yourunmetneeds,describetheidealoutcomeyouwouldliketoachievethroughanewexperience.Forexample,intheactivityofearlychildhoodeducation,youfoundthatkidswantedittobemorefunandengaging.

2.Thinkofanalogies.Basedonthatdesiredresponseoroutcome,thinkofotherthingsthatelicitordeliverthatreaction.Looktodifferentindustriestohelpopenupabroaderrangeofpossibilities.Forexample,ifyouweretryingcomeupwithideastohelpkidslearninafunandengagingway,youwouldthinkofotherwaysthatkidshavefun–suchassportsandvideogames.Ifyouchosesportsasthemetaphor,youwouldposethismetaphoricalquestion:Iflearningwereasport,whatmightthatentail?Whatmightthatlooklike?

3.Transferthoseattributestoyourownchallenge.Thisstepwillhelpyoutofindalternatesolutionsandbuildontheideasyoualreadyhave.Inthecaseofchildhoodeducation,sportsareactive,competitive,interactive,andrewarding.Apossibleideamaybeamathcompetitioninschoolswhereteamsofstudentscompeteinphysicalandmentalchallengestowinprizes.

TipsThegreaterthedifferencebetweenthetwothingsyouarecomparing,themorepowerfulthemetaphoryouwillcreate(e.g.,educationasasportoragame).

Findingmetaphorsmaytakesomepracticetodocorrectly;itmaytaketimetofindonethatistrulyinspiring.

WHATMIGHTTHISLOOKLIKE?InthePrincessMargaretHospitalproject,afirst-classairlineseatwasusedasametaphortocreateanewchemotherapyexperience.Theneed:toturnlosttimeintofoundtime.Sincepatientssatinachemochairforhoursonend,theteamthoughtaboutothersituationswherepeoplehadtositdownforhourswithlimitedmobility.Theyfeltthatafirst-classairlinechairwasanappropriatemetaphor.First-classchairsonairlinesaredesignedtobeluxurious,comfortable,andprovidemanyamenitiestopassengers.Whilethismetaphormaysomedayleadtothedesignofanewchair,italsoinspirednewservicesandaccesstoactivitiestopassthetimeduringtreatment.

ITERATIVEPROTOTYPINGMAKINGTHEABSTRACTCONCRETE

WHYTOWEDOTHIS?Tostimulatethinkinganddialoguebymakingabstractideastangible.Prototypinghelpsyouthinkthroughyourideasbybuildingthemoutinalow-resolution,physicalform.Thisexercisewillhelpadvanceconceptdevelopmentthroughexperimentationandisusefulingettinginstantfeedbackfromusers,particularlyincombinationwithroleplaysorthepresentationofexperiencemapsorstoryboards.Creatingphysicalrepresentationsofkeyelementsofyourenvisionedexperiencewillhelpyouthinkthroughandexpress:

Howmightthisideawork?

Whatelementsarecriticalinourenvisionedexperience?Whatistheroleofeachkeyelement?Whatmightitlooklike?

Whataspectsofthisideaneedtobefurtherdeveloped?

HOWCANYOUDOTHIS?1.Pickanideathat’sonly“conceptual”atthispointandidentifythemost

criticalcomponent.Basedonyourearlyconcepts,selectoneoftheimportantcomponentsthatyouwouldliketodevelopfurther.Itmaybeoneofthoseideasthateveryonegetsexcitedabout,buteveryonemayhaveadifferentpictureintheirheadsaboutwhatthatmightlooklikeorhowitcouldplayout.Forexample,itmightbeanobjectoranenvironment.

2.Prototypethatelementofyouridea.Makeittangiblebyusinginexpensiveandeasy-to-acquirematerials(e.g.,cardboard,markers,popsiclesticks,etc.).

Whenbuildingyourprototype,thinkaboutwhatitmightlooklike,howitmayplayout,whatcontestitisin,howitcouldbe“built”tosatisfytheuserneed.Yourprototypeshouldnotresembleafinished,polishedproduct,butshouldrathercommunicatethedesiredintent.Arapidprototype(i.e.,oneyoudeviseduringdevelopment)is:

Quickandtimely–Thelesstimespent,thebetter.Inexpensiveanddisposable–Useinexpensivemeansandmaterials.Plentiful–Produceasmanypossible“expressions”oftheconceptanditscomponentasyoucan.

3.Explorehowitworks.Placetheprototypeinthecontextofusetoseehowitfunctionsoroperates.Useroleplayingorstoryboardingtopresentandcommunicatetheprototypetogainfeedback(seeRolePlaytoAdvanceIdeas,Storyboards,andIn-PersonFeedback).

4.Iterateandenhance.Useyourownintuitionandfeedbackfromotherstoimprovetheprototypeforfurthertesting.Criticalfeedbackandcontinualtestingwillhelptocreateasolutionthatsatisfiesallstakeholders.

TipsLow-resolutionprototypingreferstophysicalrepresentationsofideasthatcanbemadewithasmallinvestmentoftimeandmoney.Creatinglow-resolutionprototypeshelpsyoutovisualizeideas,learnquickly,andreducerisk.

Youdon’tneedexpensiveorsophisticatedmaterialstocreateinitialprototypes,justyourimagination.Rememberwhenyouwereakidandmadeahouseoutofabigcardboardbox?Beresourcefulandimprovise.

Prototypesshouldnotbeofahigherresolutionthanwhatisneededtocommunicatethedesiredintent.

Ithelpstousethismethodinconjunctionwithroleplayingandstoryboarding.Doingthiswillaidyouinbothplayingoutyoursolutionasateamtoclosethegapsandinpresentingyourlow-resolutionconceptstostakeholdersinIn-personFeedback.

WHATMIGHTTHISLOOKLIKE?

Astudentteamwantedtotestanideaofanin-homeorganicwastedisposalsystem.Toexplorehowthatideamightworkinthehome,theymockeduptheirconceptinlow-resolution,physicalformwitheasilyaccessiblematerials(tape,cardboard,markers,pipecleaners)androle-playedtheiridea(Figure56).Theyfoundthatplacementoftheorganicwastedisposalwithinthekitchenandhowitfitintotheirnaturalkitchenhabitswasimportant.Thisdiscoveryinspiredthemtofindwaystoeasilydisposeoftheirwasteandkeepitoutofsightandunderthesink.

Fig.56PrototypingaSystemforOrganicWasteDisposal

EXPERIENCEMAPPINGDESIGNINGANEW&IDEALEXPERIENCE

WHYDOWEDOTHIS?Toimaginehowabigideamightplayoutasaseamlesslyintegrateduserexperience.Experiencemappingtellsthestoryofhowanewsolutionwillplayoutovertime.Visualizingyourideasandconceptsasaseamless,multidimensionalexperiencewillhelpclosethegapsandenhanceuservalue,movingfromknittingtogetherthe“mechanics”tocreatingacompellingstory.Designinganexperiencewillhelpyouthinkthroughtheseissues:

Howdoesthisnewsolutioncometolifeinaseamlessmanner?

Aretheregapsinthisexperience?

Howdoesthisexperienceaddressunmetneeds?

Arethereaspectsofthisexperiencethatneedtobefurtherdeveloped?

HOWCANYOUDOTHIS?1.Createatimeline.Beginbydrawingalineonalargepieceofpaperthat

representsthespanoftimeyouruserwillexperienceyourenvisionedsolution.Dependingontheamountoftimeittakestocompletethefullproductorserviceexperience,thistimelinecanrepresentafewhoursorbedoneoverafewdays.

2.Plottheexperiencestages.Alongthetimeline,createstagesthatbeginwiththeuserdilemmaandmovethroughtheuser’sdiscoveryofyoursolution,theirexperiencewithit,andtheoutcomeormemory.Considerspecifically

howtheuserfirstfindsoutaboutthesolution,howtheuserinteractswithvariouscomponentsofthesolution,andhowtheuserreflectsonhowwellthesolutionmethisorherneeds.

3.Buildouttheexperience.Thinkingaboutthelogicalandseamlessprogressionofeventsinthisexperience,createastorythatencompassestheidealexperienceforyouruser,keepinginmindthePOEMSframework.Considertheuser’spointsofpain,emotionalstate,functionalrequirements,andinteractionswithotherstakeholders;beasdetailedaspossible.Ifyougetstuck,roleplayfromtheuser’spointofview.

4.Visualizetheexperienceandtellthestory.Illustratethisexperiencebyusingpictures,sketches,andgraphics.Createacompellingnarrativetocapturethefullexperienceandtheroleofkeydesignelements.

TipsThingstohaveonhand:SelectedideasfromworkyoudidinIdeationandConceptHarvesting,aswellastheNeedArticulationandPersonastools(alwayskeeptheuseratthecenterofyourdesigns).

Havingdifficultydecidingwheretobeginyourexperiencemap?Beginwiththemomentofdiscoveryandusage–wherethe“bigidea”peaks.Thismaybeinthemiddleofthejourney.Fromthereyoucanworkoutthe“afterstage”(whereitleads)andthe“before”stage(howtheusergotthere).

Theideasthatyoudidnotmoveforwardwithfromtheideationphasecanfilterbackintoyourexperiencemap,tohelpfillingapsandenhancethesolution.

Avoidbeingvagueaboutstagesintheexperience;beasdetailedaspossiblebyusingthePOEMSframeworktoguideyourexploration.WeavethePOEMScomponentsintoyournarrativeinarelevantandnaturalway.

WHATMIGHTTHISLOOKLIKE?Figure57isasimpleschematicthatshowsasegmentofapatientexperience,depictinghowideaswerebuiltintothatexperiencealongatimelinetocontinuallyenrichitandclosethegaps.

Fig.57ExperienceMapping

STORYBOARDINGCAPTURINGTHESTORYINKEYFRAMES

WHYDOWEDOTHIS?Tovisualizeyouridealsolutionasastage-by-stagestoryoftheidealexperience.Storyboardingisacost-effectivewaytocaptureanexperiencetoelicitfeedbackabouttheconceptfromtheuser.ItisamoredistilledandconsolidatedalternativetoplayingoutthesolutionforusersinIn-PersonFeedback,andcanalsobeusedasasynopsisofyourideaininternalpresentationsbycapturingthestorylineofyourexperienceandkeydesignelements.It’slikepreparingtomakealittlemovieorTVcommercial.

HOWCANYOUDOTHIS?1.Createanarrative.ReferencetheexercisesyoudidinExperienceMapping

tocreateaframe-by-framestory,includingthebeginning,whichintroducesthepointofview,wherethestorytakesplace,andtheconflictorsituation;

themiddle,whichdescribestheexperienceofferedtotheuserinkeystages–howtheybecomeawareofthesolution,theirexperiencewiththesolution,andthecompletionofthatexperience;and

theending,whichconcludesthestoryandsummarizestheoutcome.2.Selectcriticalevents.Selecttheimportantpartsofthestorythatrevealthe

designmoments,consideringthePOEMSframework.(Designmomentsarepartsofthesolutionthathelpinfluencetheoutcomeofthestory.)Thesecanbecapturedinfivetotenframes,dependingonhowmultidimensionalandextensiveyourconceptis.

3.Detailthesemoments.Listtheactionsandkeycomponentsthatneedtobevisualizedthoughphotographyordrawings.Beasdescriptiveaspossible

andmakenoteoftheimagerythatneedstobecreatedtovisualizethecriticalevents.Createroughsketchestoworkthroughthevisualization.Thisstephelpstoprovideacoherentplanandfocuscommunication.

4.Completethestoryboard.Refineyourvisualsandcombinethemwiththewrittenstorytocreateaclearstoryofhowyourexperienceplaysout.

TipsAstoryboardismuchlikeacomicbookortheframe-by-framereferenceforcommercialsorfilms.Thestoryiscommunicatedusingtextandkeyimagestodeliverimportantmessages.

Makethedesignelementsastangibleaspossibleandavoidusinggeneralities.

WHATMIGHTTHISLOOKLIKE?Figure58showsafewframesfromthePMHstoryboardtoconveytheidealexperienceforapatient,beginningathomeandtravelingtothehospital.

Fig.58StoryboardingKeyExperiencePoints

ROLEPLAYTOADVANCEIDEASPLAYINGOUTTHEEXPERIENCETOCLOSETHEGAPS

WHYDOWEDOTHIS?Toplayoutsolutionstoidentifygaps,solicitfeedback,andcreateanaturalandseamlessexperiencefortheuser.Roleplayingusesimprovisationalactingtodescribeamultidimensionalexperience.Structurally,it’slikestoryboarding,butinrealtime.Roleplayingusesactors,props,aset,andagoodstorylinetocommunicateanddemonstrateanewideainrealtimetoenhanceyourideas.Itcanalsobedonewithusers,togetfeedbackonyourideasinco-creation.Creatinga“play”onhowyourideaworkswillstimulatethinking,discussion,andhelpfulfeedback.

HOWCANYOUDOTHIS?1.Developaplot.Basedonyournewlyenvisionedexperience,define,and

developaplotlinetodemonstratehowtheexperiencewouldworkfortheuser.

2.Setthestage.Defineanddesigntheset,props,androlesthatpeopleonyourteamwillplay.Thesetandpropsshouldnotbehighlydetailedandpolished;rather,theyshouldsimplyimplythesettingandgiveasenseoftheenvironmentandobjects.

3.Roleplay.Walkthroughtheexperienceasaroleplay.Thekeyistoimprovisewithoutadetailedscript.Dothisfirstwithyourteam(todiscovergapsorunnaturalactions)andthen(whenyouareready)infrontofotherstogainfeedbackonwhat’sworkingandwhatisnot.

4.Refine.Evaluatewhatworkedandwhatdidn’twork.ReferencetheIn-PersonFeedbackexercisefortipsonelicitingfeedback.

TipsUseyourexperiencemap,storyboard,andprototypepropsindesigningandplayingoutyoursolution.

Itisimportantnottomaketheroleplaytoocomicalorabsurd.Humorousinterpretationsofsensitivesubjectmatter,suchaspersonalorhealthcaresituations,mustbehandledwithrespectandcare.Also,aroleplayissupposedtoreflectreallife;acomicalinterpretationmaytakeawayfromthemessagebeingcommunicated.

ThisexerciseshouldbecoupledwiththeIn-PersonFeedbackexercisetogainuserfeedbacktohelpimprovetheexperience.

WHATMIGHTTHISLOOKLIKE?Togainfeedbackfromtheirtargetusers,theNestléConfectionaryteamcreatedmultipleroleplaysthatweretargetedtodifferenttypesofconsumers,usinglow-resolutionprototypesasprops(Figure59).Theteamgainedinstantandvaluablefeedback,whichtheyusedtoenrichtheirconcepts.

Fig.59RolePlayinganExperienceUsingProps

IN-PERSONFEEDBACKSOLICITINGFEEDBACK&CO-CREATING

WHYDOWEDOTHIS?Toengageothersearlyinthedevelopmentprocessasawaytoenhanceideas.Co-creationenablesotherstoprovidehonest,openfeedbackaboutnewconcepts.Bringinginperspectivesfromavarietyof“users”ofthesolutionwillgiveyouvaluableinsightsintowhatwillworkandwhatwillnot.Youcanuseanexperiencemap,storyboards,orroleplayingtocommunicatehowyourideaworks.Mostimportantly,thisisnotamethodof“evaluation,”butratheroneaimedatmakingyoursolutionasrelevantandrichasitcanbe.

HOWCANYOUDOTHIS?1.Setup.Beforeusersarebroughtintoseeyourexperienceconcept,besureto

assignindividualteammemberstopresent,tellthestory,takenotes,andobserve.

2.Introducetheexercise.Thepresentershouldintroducetheteamandexplainthepurposeoftheexerciseandthefeedbacksession.Beclearthattheideasarenotfinalandthatyouwouldliketheiropen,honestfeedback.

3.Presenttheexperienceprototype.Presenttheexperiencetotheuserfornomorethantenminutes.Beprofessionalwhenpresenting.Empathyisimportantinengagingtheparticipantinagenuineefforttohelpservethembetter.

4.Solicituserfeedback.Thepresentershouldleadthefeedbacksessionbyaskingthefollowingquestions:

Isthereanythingyou’dlikeustoclarifyabouthowthismightwork?What’sworkingforyou?

What’snotworkingforyou?Howcoulditbebetter?Whatdoyoufindmostvaluable?Whatpartsofthesolutiondoyouconsidergamechanging?

Astheuserprovidesfeedback,someoneelseshouldtakedetailednotes.Theotherteammembersshouldsittothesideandnottodistractfromorinfluencethediscussion.Theycanaskquestionsoncethepresenterisdone.

5.Debriefasateamanditerateonyouridea.Discussandcapturetheopportunitiestoenrichyourideas.Ifyoupresentedastoryboardorexperiencemap,workthroughtheentireideaandnotewhatworked,whatdidnot,andhowitcouldbeimproved.Discusswhatyoulearnedaboutwhereandhowtheideaaddedvaluefortheuser.

TipsThereareavarietyofprototypingmethodsthatcanbeusedforco-creation–roleplays,experiencemaps,andstoryboards.Inearlydevelopment,itisoftenpreferabletouselow-resolutionmethodstogivetheaudiencethesensethatyouare“invitingthemintothedevelopmentlab.”Themostimportantthingisbeingclearaboutyouridea.Haveacohesiveandcompellingstorytotell.

Givetheusersalotofcredit.Theyareimaginative,intelligent,andgenerousintheirefforttogiveyouvaluablefeedback.

Avoiddefendingyourideasinfrontoftheuser.Beopentotheircriticismandgraciouslyaccepttheircomments.

Rememberthatthisisalearningexperiencefortheteam.Askopen-endedquestionsandlettheuserfreelyexpresstheiropinions.

Thisexercisealsorevealsnewinsightsintoyouruser,whichmayinspiremoreideasthatenrichtheconcept.

WHATMIGHTTHISLOOKLIKE?TheNestléConfectionaryteamwantedtotestoutanewideathattargetedteens.Actingouttheexperienceprovidedtheteamwithinsightsintohowteenagerswouldexperienceanewidea.Theteamplayedoutatypicaldayinthelifeofa

teenager,movingfromascenebythelockersinthehallwayofaschooltoamocked-upconveniencestore,toacomputerintheirroomathome(Figure60).Theteenagerstheteaminvitedinforfeedbacktotallygraspedthelow-resolutionideasandwereeagertohelpmakethembetter!

Fig.60Co-creationandRecreatingtheHighSchoolExperience

VIRTUALFEEDBACKSCALINGFEEDBACKTHROUGHTECHNOLOGY

WHYDOWEDOTHIS?Tobroadenengagementandscalefeedback.Thisisagoodwaytocaptureinsightsfrompeoplewhocan’tbereachedinperson.Whentimingandcostspreventyoufromconductingin-personfeedbacksessions,avirtualplatformcanbesubstituted.Thisapproachcanexpandyourengagementreachandhelptoscalemorediversifiedfeedback.Itcanalsohelpyouidentifythe“gamechangers.”

HOWCANYOUDOTHIS?1.Selecttheconceptsyouwouldliketoputoutforfeedback.Pickarange

ofideastostimulatediscussiononwhatworks,whatdoesn’t,andwhy.Thatwillgiveyougoodinsights.

2.Selectyourvirtualfeedbackplatform.Itmaybeanexistingplatformthatisavailabletouseorlicense,oryoumaywanttodesignyourowncustomizedversionforongoinguse.

3.Designyourfeedbackplan.Identifythoseyouwouldliketoengage(andhowyouwillrecruitthem),whatyouwouldliketoprobe,andhowparticipantsmightinteractwitheachotherorbuildoneachother’scomments.

4.Putyourconceptsonline.Takephotosofyourprototypes,makeavideoofyourroleplay,orpresentstoryboards.Loadthemontoyourvirtualfeedbackplatform.

5.Solicitfeedbackandreflect.Inviteparticipantstoweighin.Thengatherinputsanddebriefwithyourteam.

TipsSinceyouwillnotbethereinpersontoexplainyourconcepts,besurethatconceptpresentationsareclearandrepresentyourideaontheirown.

Makeiteasytocommentspecificallyonthekeycomponentsofyouridea(s)aswellasitsoverarchingconcepts.

WHATMIGHTTHISLOOKLIKE?IntheprojectforCanadianBarAssociation,weuploadednineconceptsinstoryboardformtoavirtualplatform.Werolledoutaseriesofin-personmeetingsfromeasttowestandthenopenedupthevirtualcommunityplatformtothebroadermembercommunityineacharea.Weaskedthemtoweighinontheconceptsbyprovidingcommentsand“liking”(ornot)eachother’scomments.Morethan2,000membersweighedin!Attheendofthisprocess,thewinning(andlosing)elementsoftheconceptsbecameclear,andtheideasevolvedtobemorerelevantandvaluable.

GEAR3:STRATEGICBUSINESSDESIGN&ACTIVATION

Thissectionpresentsavarietyofmethodstohelpyousolidifyyourvalueproposition,identifykeycapabilitiesandpotentialpartners,monetizeyouridea,andformulateastrategyinwhichallstakeholderswin.Fromthere,youwilldesignagameplan,establishprioritiesfordevelopingandtestinginitiatives,andorganizepeopleinyourenterpriseforinnovationsuccess.Thisprocesswillhelpyouestablishstrategicandtacticalclarityinyourpathforward.

THEPROPOSITIONSYNTHESIZINGTHEVALUEOFYOURIDEA

WHYDOWEDOTHIS?TocapturetheoutputsofGears1and2andtranslatethemintoaclearandsuccinctvalueproposition.Thisexercisewillhelpclarifyandsummarizehowyourideauniquelycreatesvalueandwillanchoryourbusinessstrategy.

HOWCANYOUDOTHIS?Summarizeyourprogressasateambyarticulatingandsynthesizingthefollowing:

1.TheInspiration(Gear1):Whoisourtargetandwhatneedwillwesatisfy?

Repriseyourdefinedneedsandpersonas.Whatneedinspiredyourbigidea?

2.TheIdea(Gear2):Whatisyourbigidea?Stepbackanddiscussthebigideaandtheintentbehindit.Whatistheoverarchingideathatcapturesthegestaltofhowyourgame-changingcomponentswillsatisfyneeds?

Howwouldyouexplainyourideainonesentence?3.ValuetotheEndUser(ConnectingGear1toGear2)

Howdoesyourideaaddvaluetotheirlifeinameaningfulway?Howwilltheybenefitmost?

4.What’stheOverarchingProposition?(Synthesisoftheabove)Whatwillyouuniquelyofferthemarket?Thispropositionisasynthesisoftarget,offering,andneedfulfillment

(i.e.,benefit).

TipsAstrongcentralpropositionwillserveastheanchorinyourstrategyanda“lighthouse”inyourongoingquesttodelivertheultimatevision.

Promptdiscussionbyasking,Whatinspiredyouinthefirstplace?Howdoesthisideabenefitendusersinthemostmeaningfulway?Whatappealedtothemmost?

WHATMIGHTTHISLOOKLIKE?Agoodwaytosynthesizeyourvaluepropositionistocapturethemostinspiringneed,youroffering,andthevalueyoubringtoyourprimarytarget.InoneofourSingaporeprojects,theteamdevisedanewideato“providetravelerswithanauthenticanduniquegiftcollectionofcarefullyselected,locallyproducedSingaporeanbakeryitemstosharewithfriendsandfamilybackhome.”Figure61illustrateshowthattranslatedintoaclearandconcreteproposition.56

Fig.61SynthesizingtheOpportunity

CAPABILITYREQUIREMENTSDELIVERINGTHEBREAKTHROUGH

WHYDOWEDOTHIS?Toidentifythecapabilitiesthatwillberequiredtoeffectivelyandefficientlydeliveryoursolution.Thisexercisetranslatesdesigntacticsintoenterprisecapabilitiesandthenalignsthosetointernalorexternalresources.Itisausefulwaytoidentifyneworenhancedcapabilitiesandoptionsforstrategicpartnerships.

HOWCANYOUDOTHIS?Thisexerciseisbestdoneintandemwithdesigningyouractivitysystemandwillshapeyourstrategyfordevelopingcapabilities,definingwhatyoudointernallyandexternally.Yourtaskistodeterminethejobstobedoneandwhobesttodothem.

1.Listthecomponentsofyourenvisionedsolution.Identifythekeycomponentsintheexperiencethatneedtobedesignedanddelivered,includingthepeople,objects,environments(spaces),mediaandmessages,andservices(POEMS).

2.Identifythecapabilitiesrequiredtoexecuteeachcomponent.Capabilitiesaretheexpertiseandcapacityrequiredtoofferaproductorservice.Forexample,ifyouaredesigninganewcoffeesystem(asNespressodid),youwillneedmachinedesign,manufacturingandserviceaccess,andexpertise.Atthispoint,don’tconcernyourselfwithwhetheryouwilldothisyourselforpartnerwithsomeoneelse.

3.Identifyinternalcapabilities.Determinewhichcurrententerpriseassetsandcapabilitiescanbeleveragedtofulfillthoserequirements.Ifcapabilities

donotexistnow,youwillcometodecidewhetheryouwilldeveloptheminternallyorexternally.

4.Defineyourcapability-buildingstrategy.Ifcapabilitiesdonotexistwithinyourenterprisetoday,identifyoptionstodeveloporaccessthosecapabilitiesthroughstrategicpartnerships.

5.Estimatecoststodevelopnewcapabilitiesinternally.Ifyoudonotknowspecificnumbers,useyourintuitionanddefinetherelativemeasuresofhigh/medium/lowasworkingmeasures.Theamountofeffortisalsoagoodmeasureofthecost.

6.Determineexternalexpertise.Ifcapabilitiesarenotavailableinternally,begintoidentifyexternalsourcesofexpertisethroughpotentialpartnershipsandsuppliers.

7.Assessyouroptionsandmakechoices.Weightheprosandconsofeachscenario.

TipsItishelpfultorefertoyourfinalexperiencemaporstoryboard(ifyouhavecreatedthese)andconsiderallcomponentsanddesignelementsthatmakeupyournewidea.

Considerboththe“visible”and“invisible”elementsofyoursuccess.Forexample,adirect-to-customerprogramwillrequiresomeseriousdatamanagementbehindthescenes.

Haveyourcurrent-stateactivitysysteminhandtoidentifywhichcurrententerpriseactivitiesandcapabilitiescouldbeleveraged.

Keepyourstakeholderpersonasandneedsonhand.Brainstormpossibleoptionsforhowyoucouldbuildthesecapabilities.Strategicpartnershipsareanidealwaytoleveragethecapabilitiesofotherorganizations,ifthosecapabilitiesdonotexistwithyourown.

WHATMIGHTTHISLOOKLIKE?Figure62isasimpleillustrativeexampleofassessingthecapabilitiesrequiredtodeliverNespresso’svision:

Fig.62CapabilityRequirements

MONETIZATIONEXPLORINGHOWTOCAPTUREVALUE

WHYDOWEDOTHIS?Toidentifyopportunitiestomonetizeyourenvisionedsolution.Thereareoftenopportunitiestomonetizeasolutionbeyondhowyouwouldnormallychargethecustomerforyourproductorservice.Nowisthetimetoexplorewaystocapturevalueanddefineyourbusinessmodel.Incombinationwithmarketsizing(seetheMarketSizingtool),identifyingmonetizationopportunitieswillhelpyoumakeabusinesscaseforhowyourideawillboostexistingsalesorcreatenewstreamsofrevenue.

HOWCANYOUDOTHIS?1.Explorewaystomonetizeyourenvisionedexperience.Beginby

examiningyourenvisionedexperienceandconsiderwhatyourbroadspectrumofstakeholdersmightbewillingtopayfor.Ideateonhowyoumightcapturevalue:

Willyousellmoreofyourexistingproducts?(e.g.,cross-sellmoreofyourportfolioofproductsbyintegratingthemasasynergisticsystem)

Willyousellnewproducts?(e.g.,anewproductthatexpandsyourportfolio)

Willyousellothers’productsandmakeaprofit?(e.g.,Applesellingperipheralproducts,suchasspeakers)

Willyouleverageyourreachandselladvertisingonyoursite?(e.g.,Google)

Willyougeneraterevenuethrougheventsponsorships?(e.g.,RedBull)Willyougeneratedatathatotherswillpayfor?(e.g.,Facebook)

Willyousellservices?(e.g.,IBMsellingconsultingservices)Arethereotherwaysinwhichyoucanchargeforthevalueofyourproducts,services,expertise,orknowledge?

2.Sizeupthemarketof“payers.”Foreachofyourmonetizationideas,identifywhowillpayandhowmanyofthemarethere.AspresentedintheMarketSizingtool,youmightbeginbyestimatingthetotalavailablemarket(afunctionofthe“payers”youchoosetoserve).Youcanthenscalethatbacktotheserviceableavailablemarket–thesubsegmentyouareabletoreachgeographicallyorthroughtechnologyaccess(afunctionofwhereyoudecidetooperate).Thenyoucanestimatewhatshareofthatmarketyoumightcapture,basedonyourofferingandcompetition.

3.Estimatewhatmarketpayersmightbewillingtopay.Basedontheperceivedvalueofyouroffer,competitiveofferings,andanypriceresearchyoumayhaveconducted,estimatethevalueofwhatyouareselling.Youmightwanttolookatarangeofpricingschemestotestyouroptions.

4.Assessyouroptions.Consideringthenumberofpayersthatmightfindvalueinyourpropositionandthepriceyoumightcharge,thenrunsomenumberstotestthepotentialofrevenuestreams.Prioritizeyoursourcesofpotentialrevenuegainsanddeterminewhichoptionsenableyoutocapturethemostvalue.Identifythetopthreesourcesofpotentialrevenuegains.

5.Focusyourbusinessmodel.Runthenumbersonthescenariosthatofferthegreatestopportunityforyoutocapturevalue.Theresultofthisexplorationandassessmentwillformthebasisofyourbusinesscasetoinvestinyournewideaandrealizeareturnonthatinvestment.

TipsLookatabroadsetofconsiderations,drawinginspirationfromotherbusinessmodels,asnotedabove.Thisisaniterativeprototypingprocess!

Doneincombinationwithyourworkonthelandscapeofplayers,conceptvisualization,andmarketsizing,youwillbeabletodevelopaviablerevenuemodelandbusinesscase.

Runlotsofnumberstoascertainwherethegreatestyieldmightbe.Becarefulnottobeoverlyoptimistic.Foreachscenario,considercompetitivebenchmarks,pricingalternatives,andpotentialnumberofcustomers.Lookatthebest,worst,andmostlikelyprojections.

Becarefulnottorelyonselling“data”ifyoudonotyethavethetractionand

scaleyouneedtomakeareasonablebusinesscase,thoughthatisavalidupstreammonetizationopportunity.However,ifyouhavegooddataonyourusers,thereisvalueinofferingatargetedchannelforotherstopromotetheirproductsandservices.

WHATMIGHTTHISLOOKLIKE?Asanexampleofpossiblestreamsofrevenue,imagineacompanythatgivesawayfreeopen-sourcesoftwaretoenterprisesandupsellscustomerstotheirprofessionalservicestohelpcustomizeandoptimizeadoptionofthatsoftware:thiscompany’smodelissourcingrevenuefrom“services”ratherthana“product.”Youcanalsoimaginehowbroadadoptionofthat“freesoftware”mighttranslatetoahugecustomerbasethatgeneratesnumerousinsightsusefultootherinterestedparties.

VALUEEXCHANGEDESIGNINGASUSTAINABLEBUSINESSECOSYSTEM

WHYDOWEDOTHIS?Tomapandassessthevalueexchangeamongkeystakeholdersinyoursolution.Thisexercisehelpstoensurebalancedexchangeand,therefore,sustainability.Tocreateabalancedexchangeofvalueinthedeliveryofyournewsolution,itisimportanttoaddressthesequestions:

Whoarethestakeholdersinvolvedinbuying,contributingto,ordeliveringoursolution?

Whatkindof“value”isbeingexchanged?Whereisthemoney?

Howisvalueexchangedamongstakeholders,includingourenterprise?

Doallstakeholderswin?

HOWCANYOUDOTHIS?Thisexerciseisbestdoneintandemwithdefiningyourstakeholdermap,capabilityrequirements,monetization,anddesigningyourstrategicactivitysystem(whichmightincludecapabilitiesthatyouwillfulfillthroughoutsidepartners).

1.Definestakeholdersandtheirroles.Identifyalloftherelevantstakeholdersinvolvedinyoursolution,includingthosewhowillbuyit,influencepurchase,orhelpdeliverit.Forexample,indeliveringauniquegiftcollectionoflocallyproducedSingaporeanbakeryitems(calledWISH),theroleoftheproducerscouldbetoproduce,manufacture,andco-pack

multipleproductsfromvariousproducers.2.Definethekeydesignelements(POEMS)andhowtheyaredelivered.

Detailhowthedesignelementswillbecreated,produced,anddeliveredtotheendcustomer.ForexampleinWISH,referralsbytourismpartners(e.g.,airlines),theflagshipshop,andtheWISHboxitselfwerecriticalcomponentsindeliveringtheoverallidea.

3.Lookforwaystoefficientlyscalethroughtheecosystems.Thinkofboththecostofdevelopingcapabilities,aswellastheeffectivenessofthevaluechain.IntheexampleofWISH,existingcapacitywasutilizedasthemostcost-efficientapproachinproductionandco-packing,asopposedtooutsourcingco-packingtoathirdparty,whichwouldaddextracosttothevaluechain.Also,collaborationwithothersinthetourismbusinesswouldmeanquickandbroadaccess;sotoofordistributionthroughexistinghigh-trafficretailers.

4.Definehowallpartiesmaybenefitandmakemoney.Define,inthebroadestsense,whateachstakeholdercontributestovaluecreationandwhattheygetinreturn,includingifandwherestakeholdersmakemoney.IntheWISHexample,themostobvioussourceofrevenueisthesaleoftheWISHbox(forwhichretailersandtheproducersbenefit),butthereareotherpartnersthatneedtobepaidtocreateanddeliverallthenecessarydesigncomponents.

5.Visualizetheexchangeofvalueamongthem.Prototypetheecosystembylinkingstakeholderstothedeliveryofthesolution.Usestickynotesandlargesurfacestoprototypeyourvalue-exchangesystem.

6.Lookforadditionalsourcesoffinancingandrevenue.Whileyoumayalreadyhaveidentifiedtheobviouswaystomakemoney(suchassellingacoreproductorservice)lookforadditionalrevenuestreams.InthecaseofWISH,othersinterestedinthepromotionofSingaporewereinvitedtojointhenetworkandcontributetheirexpertiseorsponsorship.

7.Prototype,iterate,andrefine.Startwithaninitialprototypeandaskyourself,Isthisthemosteffectiveandefficientwaytodeliverourenvisionedsolution?Arethereotherwaystogoaboutthis,waystodothismorecost-effectivelyorestablishotherpotentialstreamsofrevenue?InthecaseofWISH,therearefuturepossibilitiestocapturerevenuefromtourismsponsorsandpublicsupporterspromotingSingapore.

8.Evaluatetheuniqueroleofyourenterprise.Determinehowyouareuniquelypositionedtocreatethissolutionandsucceed.Reflectontheexistingcapabilitiesandinterdependentrelationships,anddetermineifthese

canbedistinctlyleveragedtoattainsuccessandcompetitiveadvantage.InthecaseofSingaporeWISH,thetightnetworkofproducersthatdeliverauthenticSingaporeantreatsisnotsomethinganyoneelsecouldpreemptorreplicate,asitisthesourceofproductsthatareuniquetoSingaporeantradition.

TipsYourenvisionedexperiencemapwillbeanimportantreference,asyouwillwanttopreservetheintentofyourenvisionedsolution.

Yourstakeholdermap,personas,andneedsarehelpfulreferencestoensurethatyoudelivervaluetokeystakeholders–theenduserinparticular.

Thisisaniterativeprocess;stakeholdersandelementscanberearrangedtorevealdifferentmodelsofvalueexchange.Usingtoolssuchasstickynotesandanerasablewhiteboardwillallowyoutoquicklyplotandreorganizeyourvisualization.

Considerwaystorefinetheexchangesystemandimprovebothviabilityandefficiencybylookingtoexternalpartnersandtechnology.Thelandscapeofplayersyoumayhavedevelopedearlierwillcomeinhandy.Imagineallpossiblepartnerswhocouldhelpyoudeliveryournewideaandhowtheycouldbothbringandreceivevalue.

WHATMIGHTTHATLOOKLIKE?FortheWISHproject,theteamdevisedanewideato“providetravelerswithanauthenticanduniquegiftcollectionofcarefullyselected,locallyproducedSingaporeanbakeryitemstosharewithfriendsandfamilybackhome.”57TobringthisWISHBoxtolife,theytappedintothemotivationsandcapabilitiesofavarietyoflocalstakeholders,anddefinedtheroleofeachofthestakeholdersindevelopinganddeliveringkeycomponentsoftheenvisionedexperience.Figure63illustrateshoweveryonewins!Dollarsignsindicatewherefinancialbenefitliesforstakeholders.

Fig.63SingaporeWISHValueExchange

RECIPROCITYBALANCINGVALUEEXCHANGEWITHKEYPARTNERS

WHYDOWEDOTHIS?Toensureabalancedgiveandtakebetweenyourenterpriseandcriticalstrategicpartnerswithinyourvalue-creationecosystem.Reciprocityisakeyconsiderationindesigningasustainablebusinesssystem.Comparedtothebroadervalueexchangetheprevioustoolfocusedon,thistoolzerosinonkeystrategicpartners.Reciprocitywillensurethatyouareinabalancedexchangeofvaluewitheachofyourkeypartners,inbothfinancialandnon-financialterms.Itwilladdressthecriticalquestion,Arewesetupforasustainablepartnership?

HOWCANYOUDOTHIS?1.Identifythepartnersthatarecriticaltoyoursuccess.Theyarekeyto

activatingyourstrategy,creatingvalue,andfortifyingyourcompetitiveadvantage.

2.Articulatewhatvalueeachofthemgivetoandreceivefromyourenterprise.Thevaluecouldbefinancial(theyreceivemoney),reputational(theirstatusorbrandimageisenhanced),orpractical(e.g.,theyobtainaccesstonewmarketsorinformationthatbenefitsthem).

3.Foreachdesignatedpartner,assessthebalanceofgiveandtake.Howevervalueisdefinedtothatpartner,itisimportanttodesignforafairandbalancedexchange.

4.Assesshowyourenterpriseaddsuniquevaluetoyourpartners’pursuits.Mostimportantistoensurethatyourenterpriseisuniquelypositionedtobothdeliveronyourpropositionandbringdistinctvaluetothem,andthatyoucannotbeswappedoutforanotherenterprise.Thisfactoriscriticaltostrategicsustainability.

Apictureofreciprocityiseasilycapturedbycreatingasimple“balancesheet”chart,asshowninFigure64.

TipsValueisneitherjustaboutmoneynorstrictlytwo-waytransactions.Inthisexercise,youaddressthebroadermotivationofandbenefitsforyourpartnersinyourvalue-creationsystem.

Committingtoastrategic-partnershipexchangerequiresongoingeffortinunderstandingtheneedsofyourimportantpartners,aswellasacontinuingsearchforwaystofortifyyourpositionovertime.Maintainingthisbalanceiskeytosustainingtheecosystem.

ItishelpfultorefertheexercisesonCapabilityRequirementsandActivitySystem(Future),alongwiththeworkyou’llgeneratefromthem.

WHATMIGHTTHATLOOKLIKE?Anexcellentexampleofanenterprisethathasawell-balancedecosystemisNespresso.Ithasmultiplestakeholders–consumers,retailers,farmers,environmentalalliances,machinedesigners,manufacturers,andservicers.Itisfullycommittedtoeveryonewinninganditcontinuallybringsvaluetoeverystakeholderinthesystem.Italsobringsuniquecapabilitiestothesysteminmarketing,proprietarycapsuletechnology,qualityassurance,andglobalaccess.ThechartinFigure64givesyouasimplesnapshotofwhatsomeofthestakeholdersgiveandreceive,andhowNespressoaddsvalueforthem.

Fig.64AssessmentofBalancedExchange

MARKETSIZINGQUANTIFYINGTHEMARKETOPPORTUNITY

WHYDOWEDOTHIS?Tosizethemarketopportunityforyourenvisionedsolution.Byunderstandinghowmanyusersand/orbuyersyourtargetmarketrepresentsandhowmanyyoucanpotentiallyreach,serve,and(ultimately)sellto,youwillbeabletobuildabusinesscaseforpotentialrevenue.ThisexerciseisbestdoneintandemwithMonetizationtoestimatetherevenuepotentialofyouridea.

HOWCANYOUDOTHIS?AsimplewaytoviewandquantifyyourmarketistheframeworkofTotalAvailableMarket(TAM),ServiceableAvailableMarket(SAM),andServiceableObtainableMarket(SOM).

1.DefineyourTAM.Startbyestimatingthenumberofcustomersforyoursolution,assumingtherearenomarket-accessconstraintsorcompetitors.TAMcanalsobethoughtofasthetotalmarketdemandforyourproductorservice,initiallywithoutanyconstraintsbychoice,competition,orconditions.Forexample,youmighthaveanideaforatechnologyproductthatservesentrepreneurs.Howmanyofthemarethereintheworld?

2.DefineyourSAM.Next,adjustthatnumberdownwardbasedonthegeographiesandlanguagesyoumightserve,yourcapacitytoreachandservethem,andtheconditionsunderwhichtheymightaccessyoursolution.Considergeographicconstraints,yourcurrentinternalcapabilitiestoservethem,andotherconditions,suchastechnology-accessregulatoryrestrictions.Forexample,youmightpreliminarilychoosetoofferaproductforEnglish-speakingentrepreneursindevelopedmarketswithgoodInternet

access.3.DefineyourSOM.Finally,considerthecurrentandpotentialcompetitorsin

yourdefinedspaceandestimatewhatshareofthemarketyoumightcapture.Forexample,yourmarketassessmentmightleadyoutoconcludethatyoucouldpotentiallycapture10percentoftheSAMbasedonthecompetitivelandscapeandthe(rangeof)pricingyouenvision.

4.Reviewandreflect.ConsideryourSOMintermsofyouraspirationsandtheexpectationsofyourstakeholders,andre-evaluatethefeasibilityandviabilityofyoursolution.

TipsThisexercisedrawsontheworkyoudidinsomeoftheothertools–LandscapeofPlayers(Whoelseisoperatinginthisspace?),ConceptVisualization(Howuniqueisyouridea?),Monetization(Whowillpayandhowmuch?)–and,ultimately,onthemarketsinwhichyouchoosetooperate.

Berealistic,nothopeful.Workwithrealisticconstraintsanddon’toverestimateyourpotentialmarketshare.Thosewhoinvestinideasareoftenlookingforaconservativeestimatetoensuretheyareplacingtheirbetsonideawithareasonablereturn.

WhileTAMandSAMareveryfactbased,SOMrequiressomejudgment;wherethereisjudgment,thereisrisk.Runlotsofscenarios.Investmentdecisionswillbebasedonthepotentialupside,downside,andmostlikelyscenarios.

WHATMIGHTTHATLOOKLIKE?Figure65visualizeshowyourbusinessgoalisasubsetofthelargeruniverseofcustomers.

Fig.65MarketSizing

FINANCIALSENSITIVITYANALYSISASSESSINGUNCERTAINTY&RISK

WHYDOWEDOTHIS?Toassessandmitigateinvestmentriskbyidentifyingwhatcouldhavesignificantimpactonyourfinancialoutcomes.Afinancialsensitivityanalysiswillinformhowyoudesignyourdevelopmentplanandenterprisestrategytomaximizesuccess.Itwilldefinewhichexperimentsyouwillconduct(seetheExperimentsandRiskAssessmenttool)andwillalsoinformtheworkyoudoontheCapabilities,ActivitySystem,andValueExchangetools.

Mostcompanieshavestrongfinancialacumenandcanrunlotsofnumberstocalculaterevenuescenariosandvariationsinknowncosts.Thefollowingtipsaregearedtohelpingyouisolateandexaminetheunknownvariables(oftenoperationallybased)thatcanhaveunexpectedlynegativefinancialconsequencesifnotconsideredandtestedproperly.Havingdefinedtangiblesolutionsandtheplay-by-playoftheexperience,youwillbeequippedtodeterminewhichvariablespresentrisk.Atthispoint,youneedtotakeacriticalandanalyticallookatwhatcouldgowrong,whatthefinancialimpactmightbe,andmostimportantly,designyourexperimentstotestassumptionsandyourstrategicsystemtoreduceriskandmaximizethechancesofsuccess.

HOWCANYOUDOTHIS?1.Deconstructyourexperienceandassessthecertaintyofexecutingdesign

elements.Identifythekeycomponentsthatcomposethesolutionandidentifywhicharemorecertainandwhichareunknown.Forexample:Ifyouarestrongatmanufacturingfamiliarproducts,youcanlikelypredictqualityandthecostofdeliveredgoods.Ifyoursolutioncallsforanewmodeofdelivery,suchasdistributionthroughnewsitesortechnologies,youmaybe

unfamiliarwithhowthatworksandwiththeassociatedcosts.2.Identifythevariablecostsandrevenuedriversassociatedwiththat

experience.Foreachstageofyoursolution,identifythefollowing:Variablecosts–expensesthatchangeinproportiontobusinessactivity(e.g.,call-centeractivity,servicecalls)andoperationaluncertainties,particularlythingsthatmightgowrong;and

Revenuedrivers–activitiesthatdeterminetheamountofmoneyacompanyreceivesovertime(e.g.,salesbychannelofdistribution).

3.Isolatetheunknownfactors,stateyourassumptions,andtestfinancialsensitivities.Basedonyourcollectiveexperienceandintuition,determinewhichoftheunknownvariablescanhavethebiggestimpactonfinancialperformance.Thesearetheonesyouwillwanttoexplorefirstinspreadsheetform,thentestintherealworld.Ifyouhavenegativeoutcomes,redesignyourdeliverymodeltomitigaterisk.Forexample,youmayexploretherelativedailysalesthroughtwodifferentpointsofdistribution(e.g.,anofficesiteandaconveniencestore).

4.Designlearningexperiments.Experimentsarenotnecessarilyaimedatgo/nogodecisions(thoughtheycanbe)but,moreimportantly,attestingyourunderlyingassumptionsandgainingknowledgeofwhatyouneedtoconsideranddotomaximizesuccess.

TipsItishelpfultorefertoyourexperiencemapwithaneyetothecostsanduncertaintiesindeliveringthatexperienceandeachcomponent.

Thisexercisedoesnotincludefixedcosts,suchascapitalandbuildingawebsite,thoughtheywilldefinitelyfactorintoyouroverallpayoutplan.Thisexercisefocusesonidentifyinghigh-riskvariables.

Conversely,thoseelementsthatrepresentlowriskmayproceedindevelopmentorberolledoutasquickwins.(SeeQuickWins.)

WHATMIGHTTHATLOOKLIKE?Imaginethisscenario:Amanufacturerofpackagedgoodshasenvisionedanewexperiencethatinvolvesgivingconsumerson-locationaccesstotheirproducts

throughanovelnewvending-machinetechnology.Consumerslovetheideaofthemachine,butthecompanyhasnoexperienceinproducing,selling,ormaintainingthisnewtechnology.Whentheyexaminetheirenvisionedexperience,theyseeariseinvending-machinedurabilityandpotentialmaintenancecosts.Theirfinancialanalysesforascenariowithhightraffic(goodforrevenue)andarangeof“breakdowns”duetolowdurability(badforcosts)leadsthemtorethinktheirbusinessmodelandtheirroleinsellingandmanufacturingvendingmachinesversussubcontractingthisroletodelivertheirenvisionedexperience.Thisrethinking,inturn,leadstosomeimportantstrategicdecisions.

ACTIVITYSYSTEMS(FUTURE)DESIGNINGASTRATEGYTOWIN

WHYDOWEDOTHIS?Totranslateyournewvisionintoanenterprisestrategytowinandprovideaframeworkforactivation.Visualizingyourstrategyasadistinctsystemofinterrelatedactivitieswilldefinehowyouwillcreatevalueinadistinctandcompetitiveway.Itwillfocusyoureffortsontheareasofactivityandcapability-buildingthatmattermosttoyoursuccess.

HOWCANYOUDOTHIS?LikemuchoftheBusinessDesignprocess,Gear3isaniterativeprocessandincorporatestheworkyoudoinotherareas,suchascapabilityrequirements,valueexchange,andreciprocity.Yourenvisionedactivitysystemtakestheseelementsintoaccountandsetsthestageforactivation.Hereisageneralguidelineonhowtogoaboutdesigningyournewactivitysystem,onceagainusingNespressoasanexample.

1.Repriseyourproposition.Thisisyoursynthesisoftheopportunityandvaluepropositionthatservesastheanchorinyourquest.ForNespresso:Creatingmomentsofdelightforcoffeeloversworldwide.

2.Decidewhichcombinationofactivitieswillbemostcriticaltoyoursuccess.Thesearethekeyfourorfive“hubs”thatwillenableyoutodeliveronyourpropositionandcreatethemostvalueforyourcustomer–and,ultimately,thegreatestreturnoninvestmentfortheenterprise.Theywillincludebothwhatyouwilldointernallyandwhatimportantalliancesyouwillcultivateexternaltoyourenterprise.Becausetheyareactivitybased,itishelpfultoarticulatethesethemesbyphrasingthemassomethingyou

activelydo:Forexample,DeliveraUniquelyIntegratedCoffeeSystem,DeliveraPremiumCoffeeExperience,CultivateDirectBrand/ConsumerRelationshipsandCreateSharedValue(environmentalandsocialresponsibility).Thesearethecore,interrelatedhubsinthesystem.

3.Definehowthesehubsrelatetooneanother.Allgoodsystemsaresynergistic,andactivitiesaremutuallyreinforcing.InthecaseofNespresso,manyofthehubsaremutuallyreinforcing.Forexample,deliveringapremiumcoffeeexperienceisrelatedtodeliveringauniquelyintegratedandstylishcoffeesystem.

4.Identifyspecificactivitiesandcapabilitiestoactivatethesehubs.Thesearespecificactivitiesthatfocuseffortsondeliveringtangibleoutcomes.InthecaseofNespresso,partnershipswithappliancemanufacturersspecificallyreinforcedeliveryofanintegratedandstylishcoffeesystem.Theproprietarycapsulereinforcesboththiscoffeesystemandthedeliveryofapremiumcoffeeexperience.Nespressoboutiquesreinforceboththepremiumexperienceandpersonalizedrelationships.

5.Assess,iterate,anddefineyourstrategyasadistinctandsynergisticsystem.Aswiththeexerciseofcapturingyourcurrentstate,thisprocessofsynthesisandvisualizationisiterative.Youworkthroughthedesignofyoursystemuntilyoubelieveyouhaveatightlyconnected,synergistic,anduniquesystemofactivities.

TipsDesigninganactivitysystemisaniterativethinkingprocessthatleadsyoutoatightlyintegratedsetofchoices.Don’ttrytobetooperfectatthebeginning;asnotedinearliertools,youmightusepaperplatesandstickynotestoworkthroughyourthinkingasa“prototyping”exercise.

TheearliertoolsonValueExchangeandReciprocitywillinformhowyouconfigureyouractivitysystems,andthatwillclarifystrategicpartnerrelationships.Forexample,youmightchoosenottodosomethingthatoneofyourpartnerscoulddoforyou(aswithNespressochoosingtooutsourcedesignandmanufacturing).

Itisvaluabletocapturethestrategydepictedbyyouractivitysysteminastorytoexplainhowthesystemworksanduniquelycreatesvalue.Thisstoryshoulddescribehowyoucreatevaluethroughthefollowing:

Overarchingproposition:Whatwillweuniquelyofferthemarket?

Hubs:Whatarethecoredriversofsuccessthatdefineourstrategy?Activities:Whatspecificandconcreteactivitiesreinforcethosehubs?Relationships:Howdohubsandactivitiesrelatetoandreinforceoneanother?

Infullyassessingyournewactivitysystem,refertoActivitySystemAssessment,thetoolthatdirectlyfollowsthisone.

WHATMIGHTTHATLOOKLIKE?Figure66showshowyourpaper-plateandsticky-noteexercisemightlookasyouworkthroughyourvisualdepictionofyourfuturestrategy.Figure67showsamorerefinedversionofFourSeasons’system.58

Fig.66PrototypeofNespressoActivitySystem

Fig.67FourSeasons’ActivitySystem

ACTIVITYSYSTEMASSESSMENTEVALUATINGYOURENTERPRISESTRATEGY

WHYDOWEDOTHIS?Toevaluateyourfuturestrategyasameansofcreatingandsustainingnewvalue.Thisistheultimatetestofyourstrategy,asitwilldefineyoursustainablecompetitiveadvantage.Yourgoalistoadvanceyourfuturedistinctivenessandpotentialtocreateandsustainvaluebeyondyourcurrentposition,asdefinedearlierinthisToolKit(seeActivitySystem[CurrentState]).

HOWCANYOUDOTHIS?Askyourselfthefollowingquestions:

1.Doesyourenvisionedstrategycreatevalue?Howwilltheenvisionedstrategycreatevalueforendusers?Howwillthissystemofactivitiesmeettheirunmetneedsinanewandmeaningfulway?

Howdotheactivitiescreatevaluefortheenterprise?Howdoesthestrategycreatevalueforotherkeyshareholders?Howwilltheywin?(RefertotheValueExchangetool.)

2.Isyourstrategybreakthrough?Towhatextentdoesyournewactivitysystemenableyoutodeliverameaningfulandnewpropositiontothemarket?

Howdoesitchangetherulesofthegamevis-à-visthecompetitionandwithinthecurrentlandscapeofplayers?

Doesitrepresentameaningfulevolutionofyourcurrentstrategy?3.Isitdistinctive?

Isyourmarket-inspiredideaandsetofenterpriseactivitiesdistinctiveinthemarketrelativetoknowncompetitorsinthisgame?(SeeActivitySystems[Competition].)

Coulditpreemptother(anticipated)playersinthelandscape?Doesthisstrategicactivitysystemgiveyouadistinctadvantage?

4.Doesthesystemfit?Howdotheactivitiescomplementandreinforceeachother?Isitacohesiveandsynergisticsetofactivities?

Howdoesitleveragewhatyouarealreadygoodatdoing?Doesitfitwithyourcurrentstrategyordoesitrepresentasignificantdeparturefromyourcurrentstrategy?

5.Doesthissystemcreatesustainableadvantage?Howlongcanyousustainanadvantagewiththisstrategy?Howlikelyisittobeimitated?Whataboutyourenvisionedsystemisdifficultforotherstoreplicate?

TipsNowisthetimetobeobjectiveandanalytical,notenthusiasticbecauseyouareinlovewithyourideasandvision.Ifyoursystem“failsthetest,”revisititanddesignwaystomakeitstrongerandmoredistinctive.

Thisexerciseisbestdoneasagroup,withcandorandobjectivity.You’llfinditsolidifiesyourcollectivecommitment.

Gettheobjectiveinputofothers;callonseniormentorsandtrustedindustryexperts.

STRATEGICFOCUSCLARIFYINGYOURDEFININGCHOICES

WHYDOWEDOTHIS?Tofocusthestrategicchoicesthatwillenableyoutodeliveronyournewvalueproposition.Makingclearchoicesisthefinalstepinsolidifyingyourstrategy.Anunambiguousandpreciseencapsulationofyourstrategyandactivationprioritieswillguideyourenterpriseforward.

HOWCANYOUDOTHIS?1.Whatareyouraspirationsandgoals?Articulateyourrenewedaspiration

toreflectthebreakthroughthinkingyou’vehadasyouwentthroughthe3GearsofBusinessDesign.Setmeasurablegoals.

2.Wherewillyouplay?Reviewtheresultsofyourmarketscopingandsizingactivity,aswellasyournewbusinessmodel,andlistthespecificcustomersegmentsyouwilltarget,geographiesyouwillserve,channelsyouwilluse,andproductorservicesegmentinwhichyouwillcompete.

3.Howwillyouwin?Reviewyourvaluepropositionandactivitysystemtofocushowyouwillcompeteinyourchosenmarket(s).Definethefourtofivewaysinwhichyouwilluniquelywin.

4.Whatcapabilitieswillyouneed?Identifythecapabilitiesthatareessentialforthedevelopmentanddeliveryofyourvalueproposition.Decidewhetheryouwillsourcethosecapabilitiesin-house,oroutsourcetovendorsorpartners.

5.Whatmanagementsystemswillyouneed?Identifytheuniquemanagementsystems(e.g.processes,tools,andmetrics)thatwillsupportyoureffortsandenableyoutowin.

TipsKeyinputsincludetheworkyoudidwiththefollowingtools:TheProposition,CapabilityRequirements,andActivitySystems(Future).

Aimtoberazorsharpinyourchoices.Assessyoursetofchoicesfordistinctiveness.Askyourself,Willthispositionourenterprisetodistinctlydeliveronourpromise?

Beclearonhowyouwillmeasureprogressandultimatesuccess.

WHATMIGHTTHISLOOKLIKE?Figure68illustrateshowtheCanadianFoundationforHealthcareImprovementsynthesizedtheirchoicesononepageaftergoingthroughtheBusinessDesignprocess,asrecountedintheinterviewinchapter6.Basedontheclarityoftheirstrategy,theysecuredasignificantincreaseinfederalfundingbecausetheirpropositionwassoclear,compelling,anddistinct.59

Fig.68One-PageStrategicSynthesis

EXPERIMENTS&RISKASSESSMENTTESTINGTHEUNKNOWNS

WHYDOWEDOTHIS?Togainvaluablelearningthatwillshedlightonuncertaintiesandpotentialrisks,givingyoutheconfidencetomovetothenextlevelofdevelopmentandrollout.Experimentsareaformofprototypingthatprovideobservableandmeasurablelearningoutcomesaboutwhateverpartofyournewideahasneverbeendone(byyou,andevenothers).Experimentationisagoodwayto“testthewaters”onmarketuptakeandtoexploreriskvariablesfromyourfinancialsensitivityanalysis.Thegoalofexperimentsistogainlearningonhowtodesignthebestmeansofdeliveringyourvisionandfortifyyourreasontobelieve.

HOWCANYOUDOTHIS?1.Isolatetheelementsofyourideathatpresentthemostuncertaintyand

potentialrisk.Thesearetheelementsthat,iftheygowrong,putthewholeexperienceorbusinessmodelatrisk,andtheyareoftenrevealedthroughfinancialsensitivityanalysisofvariables.Youaredependentontheseelementsforsuccess.Clearlystateyourunderlyingassumptions.

2.Createahypothesis.Foreachexperiment,useyourintuitiontopredicthowitwillhelpyoulearnhowtoincreasetheoddsofsuccess.Togenerateahypothesis,usethecriticalassumptionsthatpresentthemostrisk.Examplesofworkinghypotheses:Doctorsappreciateandusepatientcounselingtools;Customerswillbedrawntoaproductthatismadeavailableatanewsite;Customerswilluseandappreciateatechnicalhotline;Aninstitutionaldispensingmachinebeusableanddurableinadesignatedhightrafficsite.

3.Designanexperiment.Createasmall-scaleexperimenttotestyourhypothesisbybrainstormingseveraloptionstogainmoreinsightsorinformation.Makesureyouareclearonwhatneedstobemeasuredandhowyouwillmeasureit.Forinstance,ifyouarewonderingabouttherelativesalesofaproductthroughtwodifferentchannelsortheimpactofhavingasalespersononsiteornot,setupapairedcomparisonexperiment.

4.Defineyourexpecteduseofresults.Itisimportanttoanticipatetherangeofresultsyoumightget,includingworst-casescenarios.Definewhatkindsofresultsareyouhopingfor(inmeasurableterms)andwhatyouwilldoifyoudon’tachievethoseresults.Thisisnotnecessarilyago/no-goexperiment,butratherawaytogainlearningsoyoucandesignalternativestomitigateriskandbemoreassuredofthepathyousubsequentlydecidetotake.Evenifyoufail,youwillgainvaluableinsightsonhowtoresolveorimproveyoursolution.

5.Execute,evaluate,andrefine.Determinewhatyouwilldowiththelearningtomovetheideaforward.Usethisinformationtorefineeachelement,oruseittorevisityouractivitysystem,orasevidencethatyourideawillworkandyourstrategyissound.

TipsReferenceyourenvisionedexperiencemap,prototypes,activitysystem,andfinancialsensitivityassessmentwhenidentifyingkeyexperiments.

Timeandmoneyspenttestingandvalidatingexecutionalvariablesatanearlystagecanhelpyoutoboth“testthewaters”onmarketinterestandavoidcostlymistakes–whichwillimproveyourpayoutinthelongterm.Withasmallinvestmentoftimeandmoney,youcancreateexperimentstohelpyouenrichyourideaandultimatelygrowyourbusiness.Tryimposingfinancialconstraintstothinkofnewwaystotestyourassumptions.Forexample,re-skinanexistingpieceofequipmentinanewlocationinsteadofredesigningsomethingnewthatwilltakemoremoneyandtime.

Experimentsshouldproducemeasurableoutcomesandactionablelearning.

WHATMIGHTTHATLOOKLIKE?IntheearlydaysofNespresso,formerCEOJean-PaulGaillard’steamwentout

tohome-applianceoutletsinGeneva,Lausanne,andNyonandstartedsellingmachinestoindividualcustomers.Hisgoalwastotrythisforaweektoseeiftheycouldsell100machines.Intheend,theysold58(inadditionto25soldtooffices),whichhelpedGaillardandhisteamlearnthattherewasamarketfortheseproducts.Previousmarketresearchhadconcludedthattherewasnomarket.Fromthere,GaillardmovedaheadandlaunchedNespressonationallyinSwitzerland.60

QUICKWINSCAPITALIZINGONLEARNINGOUTOFTHEGATE

WHYDOWEDOTHIS?Toactivateyournewlearningandideasinawaythatwillbenefityourbusinessintheshorttermandsetyouonthepathtowardyournewvision.TheBusinessDesignprocesswillyieldvalueateverystageofdiscoveryanddevelopment.Unlikeanexperiment,thereislittleornoriskassociatedwithaquickwin.Onthecontrary,quickwinsenableyoutoleveragenewinsightsandideastomakeanimmediatepositiveimpactonyourbusiness.

Sometimesquickwinsareaboutimprovingonsomethingyouwerealreadydoing.Sometimestheyareaboutreplacingatacticthatdoesn’tcreatemuchuservaluewithonethatdoes.Often,aquickwincanbeknockingsomethingoffyourto-dolistthatwasn’treallygoingtocreatevalueatall.Theseareallquickwins,andthisiswhereBusinessDesigncansaveyoutimeandmoney.Takestockofallofyourlearningandideasandask,Howcouldwecreatevaluenow?

HOWCANYOUDOTHIS?1.Reflectonthelearningfromyourdevelopmentprocessthatisrelevant

toyourcurrentbusiness.Thismaybeanewinsightthatinspiresatacticalmovetohelpyouaddressashort-termchallenge,oranideafromyourgrandervisionthatfitswellwithyourcurrentstrategyandactivities.

2.Identifythesmaller,tacticalelementsofyourideathatcanbenefityourbusinesstoday.Thesearetheelementsforwhichyouareconfidentthatthereisvirtuallynodownsidebutgoodpotentialupside.Suchelementscouldincludewaystobetterservetheenduserortoenhancethemotivationandengagementofanimportantenabler.Thesearetheideasthatyoushouldnotholdback:theyarevaluabletothestakeholdersand/ortheenterprise

today.Ideasmaycomeinanyform–processimprovement,revenue-generatingopportunities,newdistributionchannels,bettercommunications,oranimprovementtoaproductorservicethatcanmakeitbetteralmostrightaway.

3.Leverageyourlearningandmakeaplantoactivatequickwins.Youhavegainednewunderstandingofyourstakeholdersandcanshowvalueforyoureffortsrightaway.

4.Execute,gatherlearning,andcelebrateyourearlywins.ThisisagreatwaytobuildconfidenceinthevalueoftheBusinessDesign.Itwillalsosignalthestarttopursuitofyourlonger-termvisionandwillmotivatetheteam.

TipsIdeasdonothavetobeexpensive.Sometimesasmall,simpletacticattherightplaceandtimecangeneratesurprisingoutcomes.

Don’tforgettocutthingsoffyourcurrentprojectlistthatyounowknowaren’tgoingtocreatevalue.

WHATMIGHTTHISLOOKLIKE?Herearetwoexamplesoflow-risk/high-valuequickwins:

Newinsightsmightleadtoyourecastashort-termpromotionalefforttobemorerelevantandinkeepingwithyournewvision.

Inthehealthcarecasepresentedinchapter4(onGear1),implementinganexpanded“fasttrack”initiativeforpatientswhopresentedspecificsymptomswasimmediatelydoableandvaluable.

ORGANIZATIONALSTRUCTURETEAMINGUPTOGETTHEJOBDONE

WHYDOWEDOTHIS?Toorganizepeopletomosteffectivelydeliveryoursolutiontothemarketplace.Newideasoftencallforre-examiningthewayyouworktogethertomostproductivelydelivernewideas.Bigger,transformationalideasmightcallforaradicalrestructuring.Smallerprojectsmightcallforaflexiblewayof“teaming”peoplearoundaspecificinitiative.Ineithercase,thekeyistoalignyourtalentandincentivestothejobtobedone.Thisisanopportunitytoprototypedifferentwaysofstructuringyourorganizationoryourteams.

HOWCANYOUDOTHIS?1.Centerteamdesignonthesolutiontobedelivered.Reflectonyour

strategyandyourenvisionedexperience,withthecustomeratthecenter.Forexample,inthecaseofHSO(chapter6story),itscorestrategytowinistointegratethevoicesofallstakeholdersintoitsstandards-developmentprocess.

2.Identifythecriticalexpertiseneededtomosteffectivelydeliveryoursolutiontothemarket.Considerwhoseperspectiveandknow-howwillleadtothebestoutcomeandcustomerexperience.InthecaseofHSO,anintegratedteamofpatients,clinicians,andhealth-systemsexpertsallbringvaluableinsightstostandardsdevelopmentaimedatimprovingpatientoutcomes.

3.Designtheteamandhowitsmembersmightworktogetherandwiththerestofyourenterprise.Determineiftheseteamsarepartofabusinessunit,acentralteamthatservesthebroaderorganization,oraspecializeddeliveryteamembeddedintoyouroperations.Ask,Whatisthisteamresponsiblefor

andhowdotheyfitintothebroaderoperationsandstructureoftheorganization?

4.Establishgoals,roles,andresponsibilities.Definetheteam’scollectivegoalsandhowteamsuccesswillbemeasured:Businessresults?Customersatisfaction?Internalperformance?Designateonepersontobringtogetherandleadtheteam,anddesignatetherolesofeachindividualontheteam.Decidewhatroletheywilleachplayandwhattheywillbeaccountablefor.

5.Prototype,experiment,andrefine.Exploreavarietyofwaystoworkasateamandchoseonethatbestfitsoperationallywithyourbusinessandexperiencegoals.Youmightnotgetitperfectfromthebeginning,sobepreparedtoiterateandbuildquickly.

6.Formalizeaccountability,performancemeasures,andincentives.Asyouoptimizeyourteamstructure,formalizeandsetthenewteaminmotion.Beclearonwho’saccountableforwhatandalignthatwithbothcollectivegoalsandpersonalincentives.

TipsPrototype!AsineveryaspectofBusinessDesign,exploreandassessseveraloptionsbeforejumpingintoasolutionthatwillsetpeopleinmotion.

Seekinput–fromseniorexecutives,theproposedworkingteam,andothersintheorganization.Theywillbringvaluableperspectivesonhowthismightwork–ornot–andonhowtooptimizeyourteaminthecontextofthebroaderorganization.

Startonasmallscaletoavoidmassivedisruption.Bepreparedtorefineandthenformalizeonabroaderscale.

WHATMIGHTTHISLOOKLIKE?Herearetwoexamplesofhowothershaveformednewstructureandteamstodeliverontheirstrategyandcustomerexperience:

Withanaimtodeliversolutionsthatintegratethevoicesofmanystakeholders,HSOestablishedaformalteamofpatients,clinicians,andhealth-systemsexpertstosupportitsstandardsandassessmentdevelopmentprocess.Thisstructureensuresthattheneedsofallstakeholdersareconsideredandthat

patientoutcomesarekeptatthecenterofitsdevelopmentprocess.

Newtopia,ahealthcaretechstart-up,separatedcustomerservicefromcoachingandcreatedatwo-person“care-specialistteam”toenablecustomerstochoosethelevelofcoachingtheywanted.Basedontheassessmentofthisteam,Newtopiacouldchannelthecustomerearlyonintothecareandcoachingtrackthatbestsuitedthecustomer’sneeds.

MANAGEMENTSYSTEMSDESIGNINGSUPPORTSYSTEMS&MEASURINGWHATMATTERS

WHYDOWEDOTHIS?Todesignsupportsystemsforthejobtobedone,andtodefinewhatneedstobemeasuredtoassessperformanceagainstgoals.Newvalue-creatingsolutionsandanewenterprisestrategyoftencallforanevolutionorevenrevolutioninmanagementandmeasurementsystems.Insertinganewsolutionandstrategyintoexistingsystemscansometimesbecounterproductive.Byidentifyingthesupportsystemsrequiredandthemeasurementsneededtogaugesuccess,theenterprisewillbeabletomakebusinessdecisionsthatsupportresponsibleprogress.Itiscriticaltobeexplicitintheseareasandensurealignmentattheoutset.Thekeyquestionsyouwillneedtoaddressare,Whatsystemsneedtobeputinplacetoexecuteeffectively?Whatdoyouneedtomeasure,andhowwillyoumeasurethethingsthatmattermost?

HOWCANYOUDOTHIS?ManagementSystemsConsiderthemanagementsystemsneededtosupportyourquest,usingthefollowingguidelines:

1.Whatsystemsneedtobeinplacetoexecuteeffectively?Thesecouldincludenewgo-to-marketsystems,inventory-managementsystems,quality-controlsystems,communicationsystems,orrecruitingpractices.Systemsareimportantbecausetheybringorderandalignment,accelerateprogress,andenableyoutoscaleeffectively.

2.Whatsystemsarecurrentlyinplace?Inanexistingenterprise,theseare

oftenakeyfactorinyourgo-to-marketandoperationalsuccess.3.Leverageandreconcile.Youmayhavesomesystemsthatwillgiveyoua

goodstart.Youmayalsohavesystemsthatcouldimpedeprogressbecausetheysupportthecurrentwayofdoingbusinessbutnotthenewstrategy.Identifythesystemsyoucanleverage,thosethatyouwillneedtoestablish,and–importantly–wheretheremaybeconflict.

4.Designhowyoursystemwillintegrateandbeexplicitaboutconflicts.Thisisimportantinassessinghowyouwillmanageyournewinitiativeorstrategyandgettingalignmentfromothersonhowyouwillmoveforward.

Measurement

Definethemetricsandmethodsofmeasurementsthatwillbemostrelevantandactionable.Youcantakeanapproachsimilartodesigningmanagementsystems:Howwillyoumeasureprogress?Howdoesthisfitwithyourcurrentdecision-makingmeasures?Oftenanewideacallsformeasuringnewdimensionsofprogress.Herearesomethingstoconsider:

1.Businessresults.Defineyourgoalsandthekeyfactorsbywhichyouwillassessbusinessperformance,andincludesales(dollarsorunits),costs,profit,pointsofdistribution,turnover,etc.Thesemaybethesamemeasuresyoucurrentlyuse,oryoumayadjustthem.Forexample,movingfromalow-costmass-marketproducttoapremiumhigh-endproductmayrequireanadjustmenttodollarsales(ifyouarehistoricallyavolume-drivenmanufacturerthataimstomaximizecapacityutilization).

2.Quantitativetrackingresearch.Therearekeyindicatorsthatyoumightwanttotrack.Keepyoureyeonthesequantitativemeasuresandcoursecorrectasnecessary.Forexample,netpromoterscoresareregularlyusedasanindicatorofcustomersatisfaction.

3.Qualitativeresearch.Thiswillprovidenewinsightsthatmayemergeunexpectedlyandwhichcangiveyounewideasonhowtoenhancecustomervalueorcorrectadeficiency.Ifcertainmeasurementsaren’tbeingmet,explorethatopenlywithcustomers.Whoknowsbetteraboutwhatisworkingornotthanyourcustomers?Insteadofassumingthatsomethingisbroken,conductinterviewswithyourcustomersasasourceofongoingdiscovery,inspiration,andvaluablefeedback.

OtherTipsonMeasurement

Prioritizemeasures,puttingwhatmattersmostatthetopofthelist.Focusyourmeasurementsonthosethatareofhighvalue,bothintheshorttermandthelongterm.Thisway,youcanbegintogathervaluablelearningandtakeshort-termmeasurestomaximizesuccess.

Aswiththedesignofmanagementsystemsandprocesses,itiscriticaltogetalignmentwithkeydecision-makersonmeasurementsupfront.Beclearonwhatwillbemeasuredandwhy,andhowyouwillmeasureit.Alsoincludedecision-makingcriteria,muchasyoudefined“expecteduseofresults”inexperiments.

ACKNOWLEDGMENTS

Asecondeditionrequiressomerethinkingandretoolingtobesureitretainsthetimelesslearningofthefirstedition,whileadvancingknowledgeandbestpractices.Newlearningdrawsfromtheinsightsandskillsofanewcollectionofpeople.I’llstartwiththosewhomadethissecondeditionpossible,andthenrecognizethepeoplethathelpsetthefoundationinthefirstedition.

Revised&ExpandedEditionImportantnewcontentwasgeneratedincollaborationwithfivekeygroups:theclientswholeveragedBusinessDesignthoughVukaInnovation,thepeoplewhoworkedontheseprojectsatVuka,professionalpartnerswhocontributedtothedeeperthinkingandapplicationofBusinessDesign,theBusinessDesigngraduatesofRotmanwhohavegoneouttotestthisapproachintherealworld,andimportantcollaboratorsinbringingthisbooktomarket.

Ihavehadtheopportunitytoworkwithsomevisionaryclients.IncludedinthisbookarenewstoriesfromleadersatHealthStandardsOrganization(LesleeThompson,CEO),CanadianBarAssociation(CathyCummings,ReThinkProjectDirector),Newtopia(JeffRuby,CEO),andCanadianFoundationforHealthcareImprovement,(MaureenO’Neil,President).Withintheeducationalrealm,SingaporePolytechnic(JohLiangHee,DeputyPrincipal)continuestothriveondesign,asitsstoryillustratesinchapter7.Ialsodrewinsightsfromtheworkwedidwithotherorganizations,includingPepsiCo(KellySepcic),CanadianPatientSafetyInstitute(ChrisPowerandKimStelmacovich),RelianceHomeComfort(ChrisChapman),HigherEducationQualityCouncilofOntario(HarveyWeingartenandFionaDeller),CanadianBroadcastingCorporation(HeatonDyerandElizabethLancaster),andMaRSSolutionLab(JoerivandenSteenhoven).

TheteamatVukaInnovationdidsomeincredibleprojectworkoverthepastfiveyears,particularlyStewartShum,JobRutgers,DavidBrown,TyrennyAnderson,DaynaGriffiths,AzadehHoushmand,PatrickSuen,andMattZilli.

Mattnotonlycontributedtoourprojects,heledourR&DeffortsatVukaLabs,includingdevelopmentoftheInnovationReadinessprofilingtoolandapipelineofnewdigitizedtools.Throughourevolutionofthediscipline,allofthesepeoplebroughtdevotionandtherightskillsattherighttimetohelptakethepracticeofBusinessDesigntoanewlevel.

Ideeplyvaluethewisdomandknow-howthatmylong-standingprofessionalpartnershavecontributedtobothprojectworkanddevelopmentprojects:LouisePauzeofHappico(collaboratoronCBAReThink),JobRutgers(collaboratorineducationandinourworkatVuka),MengzeShi(co-creatorofVuka’sInnovationReadinessinstrument),HelenGiffin(whobroughtanimportantHRperspectivetoVuka’sInnovationReadinessinitiative),andBobWiele(founderofOneSmartWorld).

IamalwaysinspiredbymyBusinessDesignstudentsatRotmanandhavekeptintouchwithmanyofthemovertheyears.Itmakesmyheartsingtoseethemmakingsuchanimportantimpactthroughtheirworksincegraduation.AshwiniSrikantiahisawonderfulexample,asexemplifiedbyherFidelitystoryinchapter3.

Bringingabooktolifeisamajorproduction.UniversityofTorontoPress’sJenniferDiDomenicoprovidedvaluableongoingsupportthroughreviews,design,andmanagementoftheproject,asshedidinthefirstedition.WillNovosedlikhelpedtransforminterviewsintoinsightfulstories,broughthistalentforeditorialclarityand“reduction”tothebook,andputhisdesignskillstoworkonthefigures.ManyofEugeneGrichko’sfiguredesignsfromthefirstbookarecarriedovertothisedition.DesignerIngridPaulsongavetheneweditionafreshnewlook.EditorCatherinePlearbroughtfurtherclarityandprecisiontothecontent.JaniceEvanstranslatedthefinalmanuscriptintoawell-presentedbook.AshleyMillerplayedthecriticalroleofmanagingallofthemovingpartsinwriting,clearances,edits,andfiguredesign.

Asnotedinthefirstbook,myfamilyisalwayssupportiveofmypursuits.Myhusband,Neil,isaninnovatoratheart,andhisexecutiveperspectiveonthestrategicandpragmaticaspectsofBusinessDesignisalwayshelpful.Hegavemethespacetowriteandwasahelpfulsoundingboardalongtheway.MydaughterCeilidh,atalentedandambitiousdesigner,isalwaysaninspirationtomeineverythingIdoandremindsmeoftheimportanceoffindingmeaninginoureverydaywork.Mylateparentscontinuetobeamemoryofinspirationforcombiningtheirtalentsforanalysis(mydad)andcreativity(mymom),anddoingwhatyoulovewithremarkablepeopleinyourjourney.

FirstEditionThisrevisedandexpandededitionwouldcertainlynotbepossiblewithoutthefoundationofthefirstbook,andthepeoplewhomadethatpossible.AtthetopofthatlistisRogerMartin,formerdeanoftheRotmanSchoolofManagementatUniversityofToronto–avisionaryleaderwiththeforesighttostakeoutimportantnewterritoryinexplicitlyintegratingdesignintobusinesseducationandpractice.HewasaninvaluablecoachtomeaswebuiltRotman’sStrategyInnovationLab,DesignWorks.

DesignWorkswouldnotbeaforcetodayifnotforthesupportofourbenefactorswhowerecommittedtoadvancingbusinesseducation.MarcelDesautels’sgenerouscontributiontotheRotmanSchoolfundedthestart-upofDesignWorks.ThelateJosephRotman,whosenameisonthisworld-renownedschool,alsospenttimewithstudentsonmanyoccasions,instillinginthemtheneedforentrepreneurialthinkingandadesign-inspiredapproachtobuildingabusiness.

Withintheeducationalspace,therearesomeparticularlyimportantpeoplewhocontributedtotheearlyintegrationofdesignandbusiness.DavidKelley,alife-longinnovatorwhoco-foundedIDEOandestablishedStanford’sd.school,wasoneofouroriginalcollaborators,aswasPatrickWhitney,DeanoftheInstituteofDesignatIllinoisInstituteofTechnology,andVijayKumarintheearlydaysofourProcter&Gambletraining.JulesGossoftheOntarioCollegeofArt&DesignUniversity(OCADU)broughthisdesignperspectiveandindustrialdesignstudentstoourfirstsummerfellowshipprogramandourfirstjointcoursein2006.JobRutgers,alsoofOCADU,contributedtoourquestinSingaporeandhasbeenanongoingdesignpartnerinadvancingoureducationalcollaboration.Duringourearlyyears,IcollaboratedwithJeanneLiedtkaoftheUniversityofVirginia’sDardenSchoolofBusiness,SaraBeckmanoftheUniversityofCalifornia’sHaasSchoolofBusiness,andNathanShedroffoftheCaliforniaCollegeoftheArtstobringvaluetoourrespectivestudents,culminatinginourshared2010awardfromtheAcademyofManagementinteachingdesignprinciplesandpracticestoMBAstudents.

OurearlydaysDesignWorkspursuitwouldnothavebeenasrelevantorpragmaticifnotforenterpriseleaderswhoembracedtheprinciplesofBusinessDesignasameanstounleashgreaterpotentialintheirorganizationsthroughbothtrainingandprojectwork.AtthetopofthatlistisProcter&Gamble,withClaudiaKotchkaleadingthechargeofexpandingdesignthinkingacrosstheorganizationglobally,andsharingherwisdominthelastchapterofthisedition.

CindyTrippwasinstrumentalincodifyingandexpandingdesignthinkingtrainingtoeverycorneroftheP&Gworld.

OtherindustrypioneerswhogaveusacanvastohonetrainingmethodologiesanddemonstratethepotentialofBusinessDesignthroughprojectsshowcasedinthestoriesinbotheditionsofthisbookincludetheworld-classPrincessMargaretHospital(ledbySarahDowneyatthetime),theteamatMedtronic,andtheNestléConfectioneryteam(ledbySandraMartinezandElizabethFrank).Therewereahostofothercompanieswhoengagedinlearningprogramsandsupportedresearchprojectsthatcontributedtoimportantlearning.

Atahighereconomiclevel,SingaporeisacountrythathasfullyembracedthepotentialofBusinessDesign.PhilipYeosawhugevalueinbringingBusinessDesigntoSingaporeinhisroleaschairmanofSPRINGandspecialadvisorforeconomicdevelopmentintheprimeminister’sofficein2008.DebbieNghelpedmakethathappen.TheSingaporePolytechnicteam,ledbyPrincipalTanHangCheongandDeputyPrincipalJohLiangHeeatthetime,tookonthemissionofbringingthisnewdisciplinetotheircountryasameansofbotheducatinganewgenerationandbringingoutthebestinestablishedentrepreneurs.BackinCanada,GlenMurray,MinisterofResearchandInnovationforOntarioin2010/2011,sawthetremendouspotentialofBusinessDesigntoboosttheCanadianeconomyandbroughttheSingaporeprogrambacktoCanada.

TherewereotherswithwhomIdidnotworkdirectly,butwhogenerouslyofferedtheirinsightsandstoriesinthefirstedition,whicharebroughtforwardintothisedition:GuillaumeLeCunffandHans-JoachimRichterofNespressosharedinsightsontheirpathtosuccess;IsadoreSharpofFourSeasonsHotelsandResortsgraciouslysharedhisinsightsonboththehumanandthestrategicsideofbuildingasuccessfulenterprise;SirRichardBranson,thevisionarybehindtheVirginGroup,sharedhisinsightsonhowtobuildacustomer-centricbusinessandanenterprisecultureofbreakingthemoldinastrategicway(withthesupportofAndrewBridgeandChristineChoi);EarlBakken,co-founderofMedtronicsharedhiswisdomonthevalueofdreamsandintuition.

OurearlybodyofknowledgeandevidencethatBusinessDesignworkswouldnotbewhereitistodaywithoutthecommitmentoftheearlyteamatDesignWorks.HarisBlenticwasthefirsttoenlistintheP&Gchallenge.MarkLeungandEugeneGrichkosignedupin2006andcontributedtoimportantresearchprojects,includingthePrincessMargaretHospitalprojectpresentedinthisbook.GraceParkbroughtenergyandfreshinsighttoourexecutiveworkshopprogramsandenterprisecoaching.StefanieSchramcontributedto

projectswhiledevelopinganddeliveringourexecutivetrainingprograms.DavidBrownbroughthisentrepreneurialspirittoourquestinSingapore,alongwithStewartShumwhomanagedthishugeundertaking.CarolynMeacherbroughtherexperienceandexpertiseininnovationcoachingtoourwork.DanielleWaxerhelpedorchestratethemanyinterviewsandclearancesrequiredforthepublicationofthefirstedition.AspecialthankstoAlpeshMistry,along-standingmemberoftheearlyDesignWorksteamandmyprimarycollaboratoronthefirstedition.ThiscoreteammadeanimportantcontributiontoMBAstudentlearning,executivetraining,research,andthepublicationofthefirstedition.

TherewereotherimportantRotmancollaboratorswhobroughtexpertiseandinsightstoourearlywork:MengzeShi(mypartnerinthefirstMBABusinessDesignPracticum),BrianGolden(whoopenedthedoorstothePrincessMargaretHospitalproject),MelanieCarr(leadershipandpersonaldevelopmentexpert),andMariaRotundo(organizationalbehaviorandcultureexpert).

Ihavetremendousgratitudeandrespectforallthosewhogenerouslyoffertheirwisdom,support,andenergyincontributingtothesharedgoalofhelpingpeoplecreatenewvalueinthisever-changingworld.

NOTES

1Singapore,ReportoftheEconomicStrategiesCommittee(Singapore:MinistryofFinance,2010).

2Quotationsfromenterpriseleadersinexecutiveworkshopsheldbetween2005and2016.

3EricGoldschein,“11IncredibleFactsabouttheGlobalCoffeeIndustry,”November2011.https://www.businessinsider.com/facts-about-the-coffee-industry-2011-11.

4Hans-JoachimRichterandAnnaLundstrom,NestléNespressoS.A.CorporateCommunications,correspondencewithHeatherFraser,August–October2011.Supplementedbyhttps://www.nestle-nespresso.com/about-us/facts-and-figuresandhttps://www.pressreader.com/bahrain/bloomberg-businessweek-europe/20160704/281599534810855.

5Developedin2005byHeatherFraserandRogerMartinincollaborationwithDavidKelleyandPatrickWhitney.

6ParticipantfromaSingaporePolytechnicmanagementworkshopheldatSingaporePolytechnicinSingapore,February2011.

7A.G.LafleyandRogerL.Martin,PlayingtoWin:HowStrategyReallyWorks(Boston:HarvardBusinessSchoolPress,2013).ReprintedbypermissionofHarvardBusinessReviewPress.FromPlayingtoWinbyA.G.LafleyandRogerL.Martin.Boston,MA,2013,pages14–15.Copyright©2013byHarvardBusinessPublishing;allrightsreserved.

8HeatherFraser,“BusinessDesign:BecomingaBilateralThinker,”RotmanMagazine,Winter(2011):70–6.

9BusinessDesignProcess,VukaInnovation,2016.10OneSmallWorld,BobWiele.11IsadoreSharp,FourSeasons:TheStoryofaBusinessPhilosophy(NewYork:

Portfolio,2009).12IsadoreSharp,interviewbyHeatherFraser,4May2011.13BasedonastrategicplanninginitiativeledbySandraMartinez,President,

NestléConfectioneryCanada,andElizabethFrank,Vice-President,Marketing,NestléConfectioneryCanada,in2008.

14ElizabethFrank,interviewbyHeatherFraser,3August2011.AllquotationsfromElizabethFrankinthisbookhavebeensourcedfromthisinterview.

15VukaInnovationReadinessSurveyisaproprietarydiagnostictooldevelopedatVukaInnovationbyHeatherFraser,MattZilli,andMengzeShi,2016–18.

16CanadianBarAssociationRe-ThinkProject,2014.Projectteam:VukaInnovation(HeatherFraser,StewartShum,TyrennyAnderson,andDaynaGriffiths)andHappico(LouisePauzé,AliciaPace,DanielSéguin,andMartinOuellette).Allmethodologicalexamplesinthisbookarebasedonthisproject.

17CathyCummings,CBAinterviewbyHeatherFraser,15September2017.18BasedoninterviewswithLesleeThompson,CEOofHealthStandards

Organization(HSO),byHeatherFraser,andtheStrategicTransformationProject,2016–17.VukaInnovationteammembers:HeatherFraser,TyrennyAnderson,PatrickSuen,MattZilli,JobRutgers,andDaynaGriffiths.Allquotesandmethodologicalexamplesrelatedtothisprojectinthisbookarebasedonthisinterviewandprojectwork.

19AshwiniSrikantiah,Fidelity,interviewbyHeatherFraser,19September2017.

20Forreasonsofconfidentiality,somedetailsoftheprojecthavebeenomitted.StorybasedonRotmanDesignWorksProject:CardiacPatientPathwaysProjectPlan,2007.Facultylead:HeatherFraser.Teammembers:JasminKwak,AlpeshMistry,SandraOchoa,RohitSingla.

21HeartandStrokeFoundation,“PositionStatementonCPR,”October2010.https://resuscitation.heartandstroke.ca/guidelines/position/CPR.

22DanteMorra,MD,correspondencewithHeatherFraser,August2008.23AdaptedfromVijayKumarandPatrickWhitney,“Faster,Cheaper,Deeper

UserResearch,”DesignManagementJournal,Spring(2003):50–7.24SPICEframeworkbasedonananalysisofamulti-projectdatabaseofneed-

findingresearchoutcomesconductedbyHeatherFraserincollaborationwithEugeneGrichko,2007–8.

25NorthHawaiiCommunityHospital,“NHCNCelebrates15thAnniversary,”7June2011.www.queens.org/north-hawaii/north-hawaii-community-hospital.

26EarlBakken,OneMan’sFullLife(Minneapolis:MedtronicInc.,1999).27EarlBakken,interviewbyHeatherFraser,5June2011.Allquotationsfrom

EarlBakkeninthisbookaresourcedfromthisinterview.

28BasedonRotmanDesignWorksProject:PrincessMargaretHospital-SystemicTherapyRedesign,2007.Teammembersandcontributorsincluded:PrincessMargaretHospital(SarahDowney,DrMarkMinden,JaniceStewart,SaraUrowitz,andDrDavidWiljer),RotmanDesignWorks(HeatherFraser,EugeneGrichko,andMarkLeung),RotmanSchoolofManagement(BrianGoldenandRosemaryHannam),anddonorsConwayFoundationandMDS(JohnRogersandRonYamada).Additionalreference:BrianR.Golden,RosemaryHannam,HeatherFraser,MarkLeung,SarahDowney,JaniceStewart,andEugeneGrichko,“ImprovingthePatientExperiencethroughDesign,”HealthcareQuarterly14,no.3(2011):32–41.

29VijayKumarandPatrickWhitney,“Faster,Cheaper,DeeperUserResearch,”DesignManagementJournal,Spring(2003):50–7.

30WorkshopcollaborationwithDavidKelley,December2005.31WebsitesourceonDysonvacuum:

https://www.dyson.com.sg/community/about-dyson.aspx.32SirRichardBransonandVirginManagementUSACorporate

Communications,interviewcorrespondencewithHeatherFraser,March–October2011.

33BasedontheHSOStrategyTransformationProjectwithVukaInnovation,2016–17.

34MichaelE.Porter,“WhatIsStrategy?”HarvardBusinessReview,November–December(1996):61–78.

35Hans-JoachimRichterandAnnaLundstrom,NestléNespressoS.A.CorporateCommunications,correspondencewithHeatherFraser,August–October2011.

36InspiredbyworkwithRogerMartin,2005.37GuillaumeLeCunff,correspondencewithHeatherFraser,August–September

2011.38JeffRuby,CEOofNewtopia,interviewbyHeatherFraser,13September

2017.AllquotationsfromJeffRubyandtheNewtopiaexamplesinthisbookhavebeensourcedfromthisinterview.

39MaureenO’Neil,PresidentoftheCanadianFoundationforHealthcareImprovement,interviewbyHeatherFraser,29September2017.AllquotesandmethodologicalexamplesrelatedtothisprojectinthisbookarebasedonthisinterviewandprojectworkatVukaInnovation,2015.

40BasedonJohLiangHee,DeputyPrincipleofSingaporePolytechnic,andSiakKoonGoh,Singapore,correspondencewithHeatherFraser,August2017;alsobasedonRotmanDesignWorkswork2010–11.

41MeetingbetweenPhilipYeo,CEOofSPRINGSingapore,andHeatherFraser,2006.

42TanHangCheong,PastPrincipleofSingaporePolytechnic,discussionwithHeatherFraser,2011.

43JohLiangHee,DeputyPrincipleofSingaporePolytechnic,correspondencewithHeatherFraser,23August2017.

44ClaudiaKotchka,interviewbyHeatherFraser,22July2011.AllquotationsfromClaudiaKotchkainthisbookhavebeensourcedfromthisinterview.

45VukaInnovationReadinessSurveyisaproprietaryenterprisediagnostictooldevelopedatVukaInnovationbyHeatherFraser,MattZilli,andMengzeShi,2016–18.

46TheMarshmallowChallengewasinitiallycreatedbyPeterSkillman,theformerVPofDesignatPalm,Inc.

47BusinessDesignPracticum,2010.RoyalConservatoryofMusiccourseprojectbriefbyHeatherFraser.

48VukaInnovationInc.Blueprint,2016.49PeterSchwartz,TheArtoftheLongView:PlanningfortheFuture(New

York:CurrencyDoubleday,1991).50BasedonearlyRotmanDesignWorksworkwithProcter&Gamble,in

collaborationwithStanfordandIllinoisInstituteofTechnologyInstituteofDesign,2005–6.

51RogerMartin,TheOpposableMind:HowSuccessfulLeadersWinthroughIntegrativeThinking(Boston:HarvardBusinessSchoolPress,2007).

52InspiredbyworkwithRogerMartin,2005.53DonnaBonde,“QualitativeInterviews:WhenEnoughIsEnough,”White

Paper,2013.54VijayKumarandPatrickWhitney,“Faster,Cheaper,DeeperUserResearch,”DesignManagementJournal,Spring(2003):50–7.

55Ibid.56BasedonSingaporePolytechnicWISHProject,2010–11.Singapore

PolytechnicTeam:KengHuaChong,GarethLai,KumYeeLau,LayLingLow,PhyllisPeter,andJuneTanTeck.Allmethodologicalexamplesrelatedtothisprojectinthisbookarebasedonthisprojectwork.

57Ibid.58RogerMartin,TheOpposableMind:HowSuccessfulLeadersWinthroughIntegrativeThinking(Boston:HarvardBusinessSchoolPress,2007).

59BasedonStrategyProjectforCHFI,2015.VukaInnovationteammembers:

HeatherFraserandTyrennyAnderson.60ConstantinosMarkidesandDanielOyon,“ChangingtheStrategyat

Nespresso:AnInterviewwithFormerCEOJean-PaulGaillard,”EuropeanManagementJournal18,no.3(2000):296–301.

Index

AccreditationCanada(AC),45–8,50–2,54,94–7AccreditationCanadaInternational(ACI).SeeAccreditationCanada(AC)activitysystems:assessmentof,196–7,284–5ofcompetitors,192–5ofcurrentstate,187–91offuturestate,99,281–3HSO,103IKEA,193–5Nespresso,104strategicchoicesin,198–200visualizationof,102,187–95

Aetna,121–2Alessi,13,104,269Apple,13,83,106

Bakken,Earl,73,83,106interviewwith,74

Branson,Richard,83,90interviewwith,91–2

BusinessDesign,2,97,114benefitsof,4definingthepathforward,143asenhancement,134examplesofprocess,30–2,45–8,119–22,124,126–9,287leader’srolein,132–3overviewof,11–26tipsforworkingwith,6–7,25–6,134–5

businessplan,92,111,113

CanadianBarAssociation(CBA),40–3,88,205–6stakeholderarchetypesfor,234–6stakeholdermap,206surveyfor,233virtualfeedbackprocess,263

CanadianFoundationforHealthcareImprovement,123–4strategicsynthesis,287

cancercare.SeePrincessMargaretHospital(PMH)capabilityrequirements,267–9charrette,137chemotherapytreatmentcenter.SeePrincessMargaretHospital(PMH)Cheong,TanHang,128co-creation:definition,20externalstakeholdersin,175forfeedback,259–61inGear2,81,85–6,90inGear3,98,118atSingaporePolytechnic,128throughroleplaying,257andvaluecreation,130–1,136

collaboration,39,54,111,118,135,142acrossunits,138toincreaseproductivity,158multidisciplinary,19spacefor,137

competencymapping,160–1ConceptVisualization(Gear2),15,24,30,76–90,242–263,265,278activitiesandoutcomes,81–2co-creation,81,85–6,90dataanalysis,88–9experiencemapping,253–4experimentationin,250goal,81ideationandconceptharvesting,243–5iterativeprototyping,250–2keyprinciples,82–8

metaphors,248–9mindsets,89–90POEMSframework,84–5,244,253–4PrincessMargaretHospitalexample,76–80prototyping,85–7,90roleplaying,246–7,257–8solicitingfeedback,259–63stakeholders,77,82,88toolsandtips,93,242–63useofstoryboarding,255–6valueofstoriesin,87

contextualizingyourchallenge:activitiesandoutcomes,49–50description,24goal,48–9keyprinciples,50–3mindsets,54toolsandtips,57,176–200

courage,18–19,39,110,117,133Cummings,Cathy,40interviewwith,41–3

customerfeedback,136

dashboard.Seeinnovationdashboarddataanalysis:incontextualizingyourchallenge,53frameworkfor,223–4inGear1,71–2,205inGear2,88–9inGear3,107,110,117hardandsoftdata,227–9measurement,295–6inpreparingforyourquest,38–9useinneedvalidation,232–3

designlanguage,137designthinking,1–3,43,129,131,299DesignWorks.SeeBusinessDesign;RotmanDesignWorksdiscoveryexchange,223–4

Disney,13diversity:categoriesof,155–6attheCBA,41anddistributionoftasks,22ofskillsandperspectives,35,132,155–6inteammapping,160–1

Downey,Sarah,80dreams/dreaming,37,74,82–3,100,113dreamingbig,77,80andfacts,133shiftfromdreamingtodoing,113

Dysonvacuum,87

empathy,18,39,62,89,118,121cultivationof,70inlistening,216–18opennessandmindfulness,72throughneed-finding,232throughroleplaying,202–3andvaluecreation,108

EmpathyandDeepHumanUnderstanding(Gear1),14–15,24,30,47,53,58–73,135,201–41,265activitiesandoutcomes,64currentjourney,237–9dataanalysis,71–2,205designcriteria,240–1discoveryexchange,223–4goal,63heart-rhythmdeviceexample,58–62keyprinciples,64–71layersofopportunity,68listoftoolsfor,75listeningandunderstanding,216–18mindmapping,219–20mindsets,72–3motivationalmapping,225–6

needanalysis,227–33need-finding,204–6observation,207–9personas,234–6photoelicitation,213–15POEMSframework,237researchplan,66roleofsurprisein,63roleplaying,202–3SPICEframework,68–9stakeholderarchetypes,234–6subjectprofiles,221–2toolsandtips,75,201–241useofstories,67–8,95userjournals,210–12

enablers.Seeunderstakeholdersendusers.Seeunderstakeholdersenterprise,7enterprisereadiness,38–9strategy,34

establishingateam,35–7,70collectivecreativity,83re-teaming,115roleoffacilitators,140,165–6teambuilding,162–3teamdesign,155–7,292–3teammapping,160–1teamprofiling,158–9unifiedvision,98

executivesponsors,37,152,156–7experiencemapping,253–4experimentation,288–9description,20inGear2,250inGear3,112,114–15withmethods,6

inriskmanagement,20,88–9,132–3,279totestassumptions,89

facilitation,140,165–6,188–90,223–4fearinahatexercise,163–4Fidelity,13FidelityLabs,54–6,140

financial-sensitivityanalysis,107,279–80,288FourSeasonsHotels,13,26–8,66,77,83,107activitysystem,188–91,282–3

frameworks,363Gearsas,5,29ofavailablemarkets,277–8description,7discoveryexchangeas,223guidinganalysis,228projectbriefs,169.SeealsoPOEMSframework;SPICEframeworkFrank,Elizabeth,30,31,35

Frito-Lay,3,52,107

Gaillard,Jean-Paul,289Gear1.SeeEmpathyandDeepHumanUnderstanding(Gear1)Gear2.SeeConceptVisualization(Gear2)Gear3.SeeStrategicBusinessDesignandActivation(Gear3)Google,107

Happico,40healthcaresystems:AccreditationCanadaproject,45–8,94–7dataanalysisexample,229healthcarepinballmachine,60heart-rhythmdeviceproject,58–62mappingthepatientjourney,77–9mindmappingexample,220Newtopiaproject,119–24SPICEframework,68–9stakeholdermapsfor,185–6teammapping,161

useofstoriesin,67–8valueexchangein,108–9.SeealsoHealthStandardsOrganization(HSO);PrincessMargaretHospital(PMH)HealthStandardsOrganization(HSO),96–7,105,108–9,154,292

activitysystem,101–3criteriafor,241enterprisemappingof,175involvementofstakeholders,115,292teamdesignfor,157valueofstorytelling,113

heart-rhythmdeviceproject,58–63Hee,JohLiang,129howtowin,109,124,198–200,286–7designingtowin,100earlyhints,53livelearning,113–4quickwins,7,112,114,117,131,154,173–4,290–1

ideation,77,85,159,243–7,254throughrole-playing,246–7

IKEA,13,193activitysystemmap,195

IllinoisInstituteofTechnology’sInstituteofDesign,2imagination,2,18,19,30andfacts,133imaginingthefuture,50,53andprototyping,86

influencers.Seeunderstakeholdersinnovation:andcommitment,17innovationdashboard,141–2innovationlab,1,140innovationleadership,131–3innovationpipeline,138–42innovationreadiness,38–9,46,116–17,141,153–4(SeealsounderVukaInnovation)inspiringinnovation,135–8

asnatureofbusiness,1

innovationdashboard,130,141–2interviews,216–8withbusinessleaders,27–8,41–3,55–6,74,91–2,119–22,123–4,144dataanalysis,227–9summarizing,221–2tipsforconducting,217transcriptions,227

intrinsicmotivation,18,72,77,141,160Intuit,140iterativeprototyping,85,87,131,136definition,20,250–2atFidelitylabs,54,56inGear3,111monetizingas,270necessityof,87atNewtopia,121atPrincessMargaretHospital,78

Jobs,Steve,83journals.Seeuserjournals

Kelley,David,2,86Kotchka,Claudia,3,133,134,143interviewwith,144

Krups,13,104,269

Lafley,A.G.,3,134landscapeofplayers,47,49,102,180–1,196,274LeCunff,Guillaume,115Lillehei,Dr.C.Walton,74LinkedIn,13listeningandrecording,216–18conductinganinterview,217importanceof,19,62,67–8,137inphotoelicitation,213

Magimix,13,104,269

managementsystems,16,100,116,199,294–6mapping:ofcompetencies,160–1competitors’activitysystem,192–5currentactivitysystem,187–91experiencemapping,253–4futureactivitysystem,281–3motivationalmapping,225–6projectmapping,171–2ofstakeholderengagement,175ofstakeholders,47,49,59,64,65,184–6,273examplesof,185–6systemsmapping,20,54,111teammapping,160–1.Seealsomindmapping

marshmallowprototypingexercise,162–3Martin,Roger,2,3,16,102,106,144Martinez,Sandra,30Medtronic,3,73,83,106metaphors,78,152,244,248–9methods/activities:activity-systemmodeling,102,284–5appliedlearning,141askingnewquestions,135–6assessingstrategicchoices,198–200collective,83contextualizingthroughstorytelling,237–8convergent,19,33,50,64,81,90,100,112,159definingstakeholderpersonas,234–6discoveryexchange,223–4divergent,19,33,50,64,81,90,100,112experiencemapping,253–4fearinahat,163–4financialscenarios,110financial-sensitivityanalysis,107,279–80,288framingyourambition,151–2ideationandconceptharvesting,243–5identifyingfriendsandfoes,180–1interviews,216–18,221–2

iterativeprototyping,20,131,250–2listeningandrecording,216–18mappingactivitysystems,187–95mappingof,171marketsizing,277–8marshmallowprototypingexercise,162–3metaphors,78,248–9mindmapping,219–20,221,224,225modifyingpractices,137–8motivationalmapping,225–6needmining,227–9observation,19,72,173,207–9,227–8,259photoelicitation,213–15projectblueprints,32,36,171–3projectbriefs,32,35,38,155,156,169–70,204,210,213quantitative,67–8,70,71,277–8,295riskassessment,288–9roleplaying,202–3,246–7,257–8runningnumbers,107scenarioplanning,182–3small-scaleexperimentation,89solicitinguserfeedback,259–60STEEPanalysis,177–9storyboarding,255–6surveys,153–4,232–3synthesizingvalue,265–6teammapping,160–1userjournals,210–12,216,220,224,231varietyof,98videoscript,239virtualfeedback,88,262–3visualizing,59,78,85–6,90,102asawayofdoingbusiness,19–21.Seealsoexperimentation;prototypingmindmapping,219–20,221,224,225

exampleof,220mindsets,17–19

forcontextualizingyourchallenge,54inGear1,72–3inGear2,89–90inGear3,110–11,117–18forpreparingforyourquest,39

motivationalmapping,225–6multipleprototyping.Seeiterativeprototyping

need-finding,39,65,66–7,70,72,118definition,19researchfor,204–6

needs:asbasisfor3gears,13–14asbasisforvaluecreation,66–7andGear1,24ideationof,243–5multidimensional,68needarticulation,230–1needmining,227–9universal,41,64,71,95,135,204,225,228,232–3.SeealsounmetneedsNespresso.SeeunderNestlé

Nestlé,3,103,105confectionery,29–32,258,261Nespresso,11–13,66,101,102–4,105,107,108,114,115,267,289businessecosystem,276capabilityrequirements,269Nespressoactivitysystem,104,105,281–3role-playingexercise,30–1,258,260–1

Netflix,13Newtopia,119–22,292Ng,Debbie,127Nike,13,181NorthHawaiiCommunityHospital(NHCH),73

observation,173,207–9andempathy,72inGear1,207–9

inneed-finding,19,227inobtainingfeedback,218,259inpersonacreation,227–8schoollunchesexample,207–8workplaceexample,209

O’Neill,Maureen,118interviewwith,123–4

OneSmartWorldprofilingtool,158optimism.Seepositivity/optimism

personalartifactandstoryexercise,161Pfizer,3photoelicitation,213–15POEMSframework,237,244,253–4,255,267,272defined,84–5inphotoelicitation,213–15

Porter,Michael,102positivity/optimism,18,89,110,113,118,133preparingforyourquest:activitiesandoutcomes,32–3buildingabusinesscase,38–9dataanalysis,38–9description,24exampleof(Nestlé),29–32goal,32keyprinciples,33–8mindsetsfor,39toolsandtips,44,150–75

PrincessMargaretHospital(PMH),76–80,82–3,86,87,113,230–1POEMSframework,84–5storyboardexamplefor,256useofmetaphors,249videoscriptfor,239

Procter&Gamble,13,107,134,143–4author’sroleat,2,3,21,115–16,132Connect&Developprogram,140

projectblueprint,32,36,171–3

projectbrief,32,35,38,156,169–70usetodefineactivities,204–5,210,213

projects:antipsychoticdrugsincarehomes,123CanadianBarAssociationproject,40–3,88,206,233–6,263HealthServicesOrganizationproject,96–7,101–3,108–9,154,157,241,292healthyeating,179heartrhythmdevice,58–63Nestléconfectionaryproject,29–32Newtopiahealthcareproject,119–24PrincessMargaretHospitalproject,76–80,84,113,230–1,239,249,256SingaporeWISHproject,266,272–4water-filterkiosks,107

prototyping,85–7,90,118,130,138ofactivitysystems,190,194ofecosystems,273iterativeprototyping,20,54,56,78,85,87,110,121,131,250–2,271multipleprototyping,136oforganizationalstructure,292–3andriskmanagement,107androleplaying,251

quickwins,7,112,114,117,131,290–1inblueprint,173–4

reciprocity,99,107–8,275–6,282resilience,18,113,118,133riskmanagement,98,110,132,279–80assessingrisk,288–9andexperimentation,21,88–9,132–3,279inGear3,114throughprototyping,107throughscenarioplanning,182

roleplaying,202–3,246–7toadvanceideas,257–8asco-creation,257atNestlé,30–1

andprototyping,251RotmanDesignWorks,3,5,68,127RotmanSchoolofManagement,2,126,144RoyalConservatoryofMusic(RCM),170Ruby,Jeff,118interviewwith,119–22

SAP,3seamlesslyintegratedexperience,81,85,103,253,257seniors,170,202–3SharedValue,31,104Sharp,Isadore,26,83interviewwith,27–8

Singapore,3,23,126–9,235,266,272–4SingaporePolytechnic,3,127–9SingaporeWISHproject,266,272–4SPICEframework,68–9,227Srikantiah,Ashwini,54interviewwith,55–6

stakeholders:archetypes,234–6atCanadianBarAssociation,41definition,7elicitingstoriesfrom,213–15enablers,65–6endusers,63–5,81,86,106,135–6,204,246–7,253–4engagementplanning,174–5executivesponsors,37,152,156–7influencers,66involvementof,20,33,38,88,175managementof,56mappingof,47,49,59,64,65,184–6,273meetingtheneedsof,16,24–5,63primary,82reciprocity,275–6samplingof,204–6sharedvalueamong,102

spendingtimewith,137stakeholderecosystem,24,46,176understandingof,58,61valueexchangeamong,108varietyof,51

StanfordUniversity,2,86STEEPanalysis,50,177–9exampleof,179

storyboarding,78,88,173,250–1,255–6,262storytelling,111,113,131,173definition,20indiscoveryexchange,223listeningandrecording,67–8,216–18andopportunity,237–8storyboarding,78,88,173,250–1,255–6,262throughphotoelicitation,213–15useinteam-building,162andvisualstimuli,183

StrategicBusinessDesignandActivation(Gear3),15–16,24–5,31,47,52,94–118,264–96AccreditationCanadaexample,94–7activitiesandoutcomes,99–100,111–12activitysystemassessment,281–5capabilityrequirements,267–9co-creation,98,118dataanalysis,107,110,117designingtowin,100experimentation,112,114–15financialsensitivityanalysis,279–80focusingchoices,286–7goal,111ideasynthesis,265–6integratingnewandexistingactivity,105–6asiterativeprocess,281iterativeprototypingin,111keyprinciples,100–110,113–17

listoftoolsfor,125makingstrategicchoices,109managementsystems,16,100,116,199,294–6marketsizing,277–8mindsets,110–11,117–18monetizingyourvision,107–8,270–1organizationalstructure,292–3POEMSframework,272prototyping,107quickwins,290–1reciprocity,275–6riskassessment,288–9riskmanagement,114strategicfocus,96,286–7sustainableadvantage,106synthesizingvalue,265–6toolsandtips,125,264–96valueexchange,272–4valueproposition,100–1visualizingyourstrategy,102

strategicfocus:inGear3,96,286–7andHealthStandardsOrganization,96

studentloans,55–6subjectprofiles,221–2systemsmapping,20,54,111

team-buildingexercises,162–4fearinahatexercise,163–4marshmallowprototypingexercise,162–3personalartifactandstory,161.Seealsoestablishingateamteamcharter,36,167–8

exampleof,168teammapping,160–1thinking:BusinessDesignasamodeof,134generative,90modesof,21–2,54

stimulationthroughprototyping,250thinkingpreferenceprofile,159.Seealsomindsets

Thompson,Leslee,46,973GearsofBusinessDesign,2,5,26,36,286asframework,5,29Nestléexample,29–32originof,13overviewof,14–17atVirgin,90.SeealsoConceptVisualization(Gear2);EmpathyandDeepHumanUnderstanding(Gear1);StrategicBusinessDesignandActivation(Gear3)toolsandtips:forcontextualizingyourchallenge,57,176–200

forGear1,75,201–241forGear2,93,242–63forGear3,125,264–96forleveragingthepowerofdesign,144forpreparingforyourquest,41,150–175tentipsforsuccess,133–5visualizationof,146

unmetneeds:ofconsumers,140discovering,19,210,225fulfilling,88–9,133,230,243,248,254,284inGear1,77,80interviewsasmeanstoaddress,216–18observationasmeanstoaddress,207–8sensitivityto,64storytellingasmeanstoaddress,67–8,131,213–15universal,204

userjournals,210–12,216,220,224,231exampleof,212andphotoelicitation,211

value,7andactivitystrategies,284forallstakeholders,108businessvalue,34–5

creationthroughBusinessDesign,22–3,134andenterprisesystem,102enterprisevalues,130–1,152human-centered,58,201shared,104synthesizing,265–6throughco-creation,130–1,136valuecreationandneed-mining,227–9valueexchange,108–9,272–4,282

valueexchange,108–9,272–4,282description,99exampleof,109inGear3,272–4andreciprocity,275–6

Virgin,13,66,83,90–2visualizing,19,59,78,85–6,90,138activitysystems,187–95examplesof,191,195ofblueprints,172–3ofbusinessgoals,278indiscoveryexchange,223–4experiencemapping,253–4offutureconsiderations,200ofstories,237storyboarding,255–6teammapping,160–1visualizingsuccess,152visualizingyourstrategy,102.SeealsoConceptVisualization(Gear2)VukaInnovation,4,40,124,141

VukaInnovationReadinessSurvey,39,153,154

Whirlpool,3Whitney,Patrick,2

Yeo,Phillip,127