Some Highlights from the DMI Re-Thinking Design Conference
angela | June 28, 2009 | 2:43 pmHere are some synopses from the sessions I most enjoyed.
Re-Thinking and Re-Designing Business Strategy
It’s probably my own particular bias that I thought that the panel with Jeanne Liedtka and Tony Golsby-Smith, moderated by Roger Martin, was the highlight of the conference. But the session really stood out for me as one of the most spirited and serious conversations of the two days. All three of them put forth a thesis and then used the conversation to back up their claims. While Tony, Roger and Jeanne were pretty much on the same page about the centrality of design thinking to strategy, each of them had a unique perspective on why that is, and how design can begin to play a stronger role in the strategy space.
Jeanne Liedtka: “Strategy is the most important thing a leader can be doing.” “But if you’re not trying to make tomorrow better than today, why bother doing strategy?” Jeanne talked about her frustration with business managers who are not looking at strategy as an opportunity to invent the future of their organizations. The problem is that the customary strategic processes involve spreadsheets and numeric projections and organizational culture is programmed to seek out certainty over possibility; visionary leadership must step outside that mindset to look for opportunity.
In her research, Jeanne has observed that there are innovative managers out there who grow their businesses despite their organizations’ tendency to crush creative thinking. It’s the entrepreneurial spirit of design that links it so strongly to strategy. Designers excel at finding ways to create new value. But, Jeanne also cautioned us that invention and value creation is not end game. She noted that value itself is an inconsistent principle, because value creation and value capture are two distinct components, and successful innovation requires both. It is not enough simply to create value; we must also invent the business models that allow us to capture that value.
Tony Golsby-Smith: Strategy is about thinking and conversation; not timetables and templates. In the business world, strategy is routinely suffocated under the budgetary process, and organizations fail to create space for vision. The thinking process is shrouded in analytics, yet we’ve never moved an inch into the future by analyzing. Tony then explained of Aristotle’s two roads of thought, Analytics (which dominates Western thinking, and propels management science) and Rhetoric/Dialectic (which is the domain of design and leadership and is the art to analytics’ science). The second road (Rhetoric/Dialectic) introduces values, where the first road is objective. Therefore the second road is better equipped to respond to human problems and gives us a toolkit for creating visions for the future.
Roger Martin: In 1959 the Ford Foundation said that business schools were not analytic enough, and we’ve been glorifying the hegemony of analytics ever since.
Jeanne Liedtka: Jeanne expressed skepticism about large organizations enthusiastically undertaking innovation, noting that, “innovation will continue to be a subversive activity.” Roger Martin responded that, “the subversive activity is to turn the future into the past.” (This prompted me to think that this would be a very interesting essay for the two of them to write.)
Jeanne called up the fixed mindset and learning mindset models researched by Carol Dweck at Stanford. Business thinking is predominated by the fixed mindset, people who are often driven by a fear of failure and of looking stupid. Innovators and design thinkers are more likely to be of the learning mindset, people characterized by actively seeking broad repertoires of experience and who are willing to take risks.
However, Jeanne suggested that these two mindsets can be brought together in the context of the organization through design. The hypothesis generation and testing that is inherent to design approaches is very effective for reducing corporate fear. And the way to succeed, to innovate, is to experiment in the marketplace.
Tony Golsby-Smith: Tony proposed the notion of the dialectic organization, one that is both analytical and rhetorical, capable of using both of Aristotle’s roads of thinking. While analytical thinking is an undeniably critical part of managing an organization well, leadership, decision-making, and innovation are inherently 2nd road activities. (Tony warned us not to make innovation alone the holy grail.)
Roger Martin: Roger added that everyone in the organization should be involved in making choices and determining the future, and therefore rhetorical thinking should not be limited to the province of leaders only.
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I’ve just finished reading the best-selling historical novel
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