Use Design Thinking to Build a Profitable, Scalable Business
So, you want to design a business that stands out and creates lasting value, right? Great question. The answer, according to Roger Martin, the former Dean of the Rotman School of Business, lies in a unique combination of imagination and execution. The most successful businesses aren’t just reactive; they’re proactive in designing their future. They’re the ones who move knowledge through a process from mystery to heuristic, then to algorithm—to create massive wealth and drive sustainable success.
Design Thinking
When we talk about design thinking, we’re diving into a process that’s all about balancing exploration and exploitation. It’s a mindset where creativity meets systematic execution. Think of McDonald’s, for example. Ray Kroc didn’t just open a restaurant; he created a system where a Big Mac in New York is the same as one in Tokyo. He turned an idea into a reliable formula that could scale. That’s the magic of design thinking: making things scalable without losing their essence.
Martin lays out how most businesses start in the “mystery” phase. They don’t know exactly how to create value, but they have an idea. For McDonald's, it was figuring out how Americans could get a quick, affordable meal. This moves into a heuristic phase where they hypothesize solutions, then finally into an algorithm where everything is systematized to run efficiently and predictably.
Why Most Businesses Fail
What gets in the way of implementing design thinking in most organizations? It's stubbornness to stick with what worked yesterday. Many businesses fall in love with their algorithms, sticking with the old ways because they provide predictability and efficiency. They stay stuck in the past, afraid to explore new “mysteries” that might break their mold.
The challenge, Martin argues, is navigating the knowledge funnel pushing through both the need for reliable systems and the need for innovative breakthroughs. But most businesses prefer the comfort of their established processes. The world is always changing, though, and if you don’t evolve with it, your business will eventually be left behind.
What’s at Stake?
The key takeaway here is the importance of balancing exploration and exploitation. You have to work on both—creating efficient systems while still exploring new possibilities. But this isn’t easy. Martin emphasizes that design thinking requires a special kind of mind an “Opposable Mind”, capable of holding two competing ideas and finding ways to synthesize them. It’s this mindset that allows businesses to scale and innovate at the same time.
Build Design Thinking into Your Organization
Design thinking isn’t a magic bullet that can be implemented by simply issuing a memo. If you want to turn it into a competitive advantage, you need to do the following:
Get the Boss on Board: If you're leading the charge in your organization, you need to have full support from the top. Design thinking is a hard sell, but with clear expectations and unwavering commitment from leadership, it can take hold. Without this support, any initiative will likely falter.
Seek Help from Experienced Design Thinkers: As Claudia Kotchka from P&G puts it, “It takes at least ten to fifteen years to really master design thinking.” If you want to start making an impact, bring in experts who can guide you through the process rather than training from the ground up.
Expect Resistance: Change is hard, and implementing design thinking won’t be any different. Speed bumps are inevitable. But you can’t back down—use the skills you’re developing through design thinking to troubleshoot and push through.
Less Talk, More Action: Instead of drowning people in reports and slide decks, get them involved. Show them how design thinking works by letting them experience it firsthand. It’s not enough to talk about innovation you need to make it tangible and real.
Apply This Today
If you want to gain the competitive edge and transform the way your business operates, start applying these principles of design thinking immediately. Whether you’re a startup or an established enterprise, adopting this mindset will allow you to innovate and scale in ways your competitors can’t.
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The world is full of opportunities, but only those willing to think differently and act decisively will truly lead. Are you ready to change the game?
