Strategy and Design

Jeanne Liedtka
Darden Business School
University of Virginia
Design as a metaphor for strategy making

Planning
Envisioning a new future

Cu e t
Current Desired
es ed
Reality Future

Execution
Developing new capabilities
Aligning systems and processes

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The Growth Leader Field Research

Survey Database:
60+ leaders
l d ffrom th
the U
U.S.
S and
dEEurope operating
ti iin th
the ffor profit
fit and
d not-for-profit
tf fit
sectors

Criteria for selection:

Mid-line or business unit managers responsible for organic growth significantly
exceeding market growth

Methodology:
-Personal interviews
-DiSC Assessments
-Peer surveys
y

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 Design as a set of behaviors
hat really goes on
George's Cycle Johns Cycle
Fixed Mindset Growth Mindset

OUTLOOK
All of this confirms All of this confirms

Life is a test, Life is a

th f
therefore j
journey off
Fail more often avoid looking learning, Succeed more often
in new situations foolish and therefore in new situations

Fear Accept

Place big bets, UNCERTAINTY Place small bets,

slowly quickly
Avoid Seek

NEW EXPERIENCES
Manage risk Manage risk
through analysis through action
Narrow Broad

REPERTOIRE
Overlook
O l k new Detect
D t t new growthth
growth opportunities opportunities

Understand customers only as data Understand customers as people

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What is Design Thinking?

Design thinking is a systematic approach to problem solving. What would be different

if managers th
thoughtht more like
lik ddesigners?
i ?

Problem solving would be driven by three core beliefs:

Empathy start by establishing a deep understanding of human needs

Invention discover new possibilities

Iteration use the first solutions only as stepping stones to a better one

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Why do we need it?

Business and design have a lot to offer each other.

BUSINESS
US SS DESIGN
SG
Underlying Rationality, objectivity; Subjective experience;
Assumptions Reality as fixed and quantifiable Reality as socially constructed
Analysis aimed at proving one Experimentation aimed at iterating
Method
best answer
best toward a better
better answer

Process Planning Doing

Decision Drivers Logic; Numeric models
Pursuit of control and stability;
Values
Discomfort with uncertainty
Levels of Focus Abstract or particular
Emotional insight;
Experiential
p models
Pursuit of novelty;
Dislike of status quo
Iterative movement between
abstract and particular
p

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Design as a problem solving approach

Better reflecting the reality of what growth leaders actually do

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Design as a tool kit