Complex business problems, or ‘wicked’ problems, can be tackled effectively by design-thinking approaches, says eLab’s Johannes Gaedicke. Discover its value to entrepreneurs and large organisations alike
Design thinking is not just for designers. We can take similar strategies to those used in the design process and apply them to solving complex business problems (also known as ‘wicked problems’). Design thinking approaches these problems from the human perspective, and uses the design mindset to be solution-focused and action-orientated.
User focus, problem framing, collaboration, experimentation and visualisation are some of the guiding principles used in the design-thinking process. Developed in Silicon Valley by Stanford professor David Kelley, it remains an often hyped, widely-debated, and an increasingly popular approach that is now being used across multi-disciplinary teams, across flexible work spaces and as a great facilitator of collaborative work. You can think of it as the ‘secret sauce’ in today’s shifting work environments and one that is now being regarded as an essential skill for entrepreneurs as they plan, grow and scale their business.
A source of immediate fascination
I first learnt about design thinking at an entrepreneurship conference in about 2012, where I attended a one-hour presentation by the head of the School of Design Thinking at the Hasso Plattner Institute (HPI) in Potsdam, Ulrich Weinberg, and I was immediately fascinated. Design thinking was not yet popular in Germany and it was completely new to me. With the immediate clarity it gave me, it made me wonder why firms and organisations weren’t working like this already. I wanted to learn more, so I applied for a place at the renowned programme in Potsdam for the following semester.
As I finished my double master’s degree and co-founded a management consulting firm, I made design thinking a top priority as I saw it as a huge potential for my business and crucial for my personal as well as professional growth. One year later, I received the official Advanced Design Thinker Certificate from the HPI and shifted more from strategic consulting to design-thinking projects. I then opened my current business, Nudge and Leap, in order to offer coaching for innovation and digitalisation projects for firms with the help of design thinking and agile methodologies.
The value of design thinking
What are the principles behind design thinking? If you read 10 articles you might get 10 different answers. The important thing to remember is that there are no stipulated or fixed rules. Design thinking is not a static or prescriptive toolkit, but a methodology, mental approach and culture, and one which is still changing and developing. Design thinking is not only valuable for big firms, but also for SMEs and all types of entrepreneurs.
Understanding your customers and their needs/problems before creating a solution in terms of a product or service, makes the design-thinking mindset especially relevant for entrepreneurs. Too often I see entrepreneurs failing because they have not understand what the market really wants. Founders will often start with ideas born out of technical developments or their own special interests, without having truly understood what their potential clients need or want. Design thinking puts humans first and positions us at the centre of the problem-solving process, beginning with placing clients at the starting point, before creating prototypes or testing products on the market. Entrepreneurs must adopt this way of thinking to be successful.
Design thinking helps solve problems, especially the more complex ‘wicked problems’. It is an approach that can be used in all kinds of scenarios – not only on a business level. Examples of the use of design thinking outside business include projects to innovate school education and rethinking our present political system towards a more direct democracy. I believe the mindset can even help us in our everyday lives by utilising methods from design thinking to better understand and empathise with employees, family and friends.
Design thinking for established entrepreneurs and interactive teaching approaches
Learning about design-thinking processes is perfect for active entrepreneurs that have already founded a firm, are preparing a launch or have recently launched a product onto the market. If their product or service is initially successful, they will want to learn how to grow and scale their business. In that case, the focus is more on agile management and growth strategies instead of design thinking. Design thinking comes into play if the venture has not yet achieved the necessary results, and if customer needs must be reassessed. For some entrepreneurs, it can be very challenging to accept that their product or service does not generate customer interest and might need to be reassessed. However, a better understanding and a so-called ‘pivoting’ of the product strategy with the help of design thinking and other agile methods can bring a struggling venture back on track.
As a design-thinking instructor with the Entrepreneur Lab (eLab) at the Council on International Educational Exchange (CIEE), I use teaching methods that are hands-on and interactive in a workshop style. We are not just another Business School where you can learn theory by completing case studies. Our participants learn through the hands-on approach in workshops and expert sessions, and they gain access to a wide network of entrepreneurs and experienced industry people. Students are also mentored to develop their own venture and have many opportunities to network and connect directly with investors.
I believe it is of the utmost importance that we give people who are willing to venture into a new business the proper knowledge to successfully do so, and the ability to build on the knowledge that already exists and has shown itself to be useful. Using and teaching design thinking can solve a large range of complex problems, and not just within the business context. I would have loved to have such a terrific approach when I started my business, but I am honoured and delighted to bring this cutting-edge education to a new generation of entrepreneurs.
Johannes Gaedicke is Design Thinking Instructor at eLab, Berlin
