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Better sales, less waste

H&M transforms its operations to cut excess inventory.

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Case study
Case Studies
Creative Capabilities
Breakthrough Products
Climate
Consumer Products & Retail

Globally, the European Commission reports, a truckload of textiles heads to landfills or is incinerated every single second.

The fashion industry accounts for some 10 percent of greenhouse gas emissions worldwide.

Less than 1 percent of the materials used to make clothing is recycled, according to a report by the Ellen MacArthur Foundation.

The best way to keep clothes out of a landfill? Don’t make them.

Picture this: Not long ago, it wasn’t unusual for a customer to walk into an H&M store and not be able to find a basic white t-shirt in their size. Why? Like most long-established retail operations, H&M was operating with a push model—placing seasonal bets on what the demand for a given item of clothing might be, locking orders far in advance, and hoping that they were able to sell out. Make a mistake in that kind of model, though, and you can end up with customers unable to find the basics they rely on, or excess inventory you can’t sell. That’s a problem for the business, but for the environment as well—and one that doesn’t fit H&M’s aggressive sustainability goals.

Though H&M had tried to tackle the problem before, the launch of the H&M Group Design Studio, co-created with IDEO, gave the retailer the confidence to go after it again. The team started out by mapping out the complex network of people that make up its supply chain across the globe, meeting with everyone from designers to garment suppliers, logistics managers, and even folks selling the final product in H&M stores. 

They then created an algorithm for more precise ordering, as well as a tool that provides a shared view of information. Instead of placing orders, the new automated flow—dubbed “Cruise Control"—allows staff to work with a demand forecast that gives them more time to focus on customer-centric operations, like providing guidance and inspiration. It also makes it easier for H&M to follow the demands of the market, and place much more accurate bets on what consumers will want, when. Already, H&M has significantly increased sales while cutting excess inventory—a result that improves its bottom line, as well as its environmental impact.

Estimates project that by 2030, global apparel consumption will hit 102 million tons.

22%

reduction in stock during a pilot program

34%

increase in sales during a pilot program
Over the past few years, H&M has gotten serious about its sustainability goals, setting an aggressive agenda to be climate positive by 2030. That means cutting its use of plastics, water, pollutants, and the amount of excess inventory that could end up in landfills. But the traditional retail supply chain model that so many clothing manufacturers rely on was making it hard to accurately predict how much of a particular clothing item the brand might sell in a given market several seasons in the future. The problem led to overstock of some items, and customers unable to find others. Together, IDEO and H&M Group Design Studio took a human-centric, end-to-end approach to understanding the supply chain, then used those insights to create an algorithm that could better predict demand and shorten the interval between sales and production. It’s a change that not only benefits the business, but significantly cuts waste, too. For an operation of H&M’s size—eight different brands across 74 markets—it’s a change that can significantly affect its environmental impact.
The H&M Group Design Studio leverages design thinking to rethink its supply chains, cutting excess inventory while boosting sales.
H&M Group Design Studio cuts excess inventory while boosting sales.
H&M Group
H&M Group
Better sales, less waste, H&M Group, climate innovation, sustainability, consumer products, retail, consumer experience, retail innovation, brand strategy, brand design, brand identity, brand experience, business transformation, organizational transformation, culture change, human centered design, design thinking, customer centricity, user research, customer research, consumer insights, climate strategy, sustainable design, circular economy, retail experience, store of the future, future strategy, strategic futures, designing for the future, how to build a brand, how to make business more sustainable, innovation, strategy, research, transformation, what do customers want, how do we innovate

Fueling innovation in Boston

How the Boston Society for Architecture is leveraging member expertise to increase its impact.

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Creative Capabilities
Strategic Futures
Industrial & Manufacturing

To foster creative projects that spoke to the needs of local communities and environments, the BSA began to engage its members in collaborative, user-led design. The organization launched its first-ever innovation challenge, putting out a call for all members to pitch their ideas for projects in the built environment.

The BSA expected those pitches to have dollar signs attached. To the organizer’s surprise, only one asked for funding. The rest requested less tangible, but equally meaningful support: advice, connections, specific expertise. Those are resources that the BSA has aplenty, but hadn’t learned how to leverage well.

From that first go at an innovation challenge, the BSA learned how to better support its members. It also learned that to lead with purpose and make strategic choices, one must develop the confidence to say no. Instead of spreading itself thin across many projects, the organization decided to take small steps, focusing on one initiative at a time, so that it can deliver focused impact and stay true to its evolving mission.

With 36% of global energy going to buildings and 8% of global emissions caused by cement alone, the architectural community is inextricably intertwined with both the causes and solutions related to climate change.

According to a survey conducted by the AIA, the architecture profession in the US is less diverse than the population as a whole. This lack of diversity can contribute to a disconnect between architects and the communities they serve.

31

submissions received from innovators in the Boston region working on equity and sustainability challenges

5

innovation teams invited to pitch ideas
For more than 150 years, the Boston Society for Architecture (BSA) has offered its members a way to find connection and support from like-minded creatives. But as systemic inequities and climate change have come into the fore, the organization wanted to reflect the field’s evolution. So, BSA set out to redefine its role, both as a supporter of its 4,500 member architects and a convener for the broader and more diverse Boston community of residents, academics, students, policymakers, and developers. IDEO led the BSA through an internal rebrand, including a new model of measuring success. The collaboration helped BSA pivot from a networking organization to one that focuses on impact through community-led challenges and proactive calls for ideas.
The Boston Society for Architecture evolves from a networking organization to one that supports its members and community, and makes an impact.
BSA works to align its values and support member innovation.
Boston Society for Architecture
Boston Society for Architecture
Fueling innovation in Boston, Boston Society for Architecture, manufacturing innovation, industrial design, brand strategy, brand design, brand identity, brand experience, climate strategy, sustainable design, circular economy, innovation strategy, business innovation, design innovation, how to innovate, how to build a brand, how to make business more sustainable, innovation, strategy, sustainability, climate change, rebranding, how do we innovate

Student-centered solutions

How an organizational culture change is helping newbies at NYU navigate campus life.

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Learning & Work

The resources that NYU students needed were organized by administrative department, and buried on disparate websites and calendars. But students don’t think in terms of departments—they just need to know where their classes are.

All of this became patently clear as IDEO shadowed students. Team members visited classrooms, walked with them through their days, and hosted pop-ups in highly trafficked areas to get ideas from passersby. That helped the team develop a common understanding of the overall student journey and grounded employees in the key moments that can either make or break a student’s experience. Visualizing their journey helped departments gain a shared understanding of the fractured communications challenge and develop possible solutions.

To synthesize those insights, we formed cross-functional action learning groups, challenging existing practices at the university and coming up with new ways of working. Participants came from a diverse set of departments, including enrollment management, student affairs, marketing and communications, IT, global inclusion, student services, the provost’s office, digital communications, and more. The cohorts sketched early hypotheses and got feedback from faculty, administrators, and students from all of NYU's undergraduate schools to refine initial concepts.

Collaborating with students gave staff a first-hand look at what students were struggling with and a way to engage students directly in addressing those challenges. Just as importantly, there was an overall culture shift at NYU: Administrators started with questions instead of agendas, came together around a table, and reached beyond their job descriptions to meet the needs of students.

First-year students reported receiving hundreds of paper forms, and email from more than 70 unique senders.

NYU needed to offer students the right resources at the right time—and collaborate to serve them as a unified administration.

New services

in-production include centralized calendars, dynamic campus mapping, and customized notifications

Design-thinking cohorts

now support the student experience
NYU prides itself on being a university where individual students decide their own paths, supported by administrators and faculty and programs aimed to help them succeed. Yet, for first-year students, the experience of trying to access resources felt more like navigating a “tsunami of services.” Every department had good intentions, but operated independently, creating a fragmented undergraduate experience that left overwhelmed students to sort through droves of well-intentioned emails a week. To address the issue, NYU and IDEO hosted a week of on-campus pop-ups and workshops with 400 students who shared their ideas. The biggest takeaway: The university wasn't under-resourced, it was under-organized. That insight sparked a shift in how NYU operates. Making student voices the central motivator helped the school’s many operational departments come together around a common cause: streamlining tools to help students navigate their first months on campus. The work made students feel "heard, not tallied," and paved the way for innovation that meets their needs—which turned out to be surprisingly simple.
NYU collaborates across departments to create an aligned communication strategy that results in a better student experience.
How an organizational culture change is adding clarity for students.
New York University
New York University
Student-centered solutions, New York University, education innovation, learning experience, future of work, business transformation, organizational transformation, culture change, user research, customer research, consumer insights, student experience, future of education, innovation strategy, business innovation, design innovation, how to innovate, understanding user needs, innovation, strategy, research, transformation, organizational culture, education, learning, what do customers want

She knows best

A major athleisure brand passes the mic so women can define community for themselves.

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Case study
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Creative Capabilities
Breakthrough Products
Consumer Products & Retail
Health

Diversity alone isn’t enough—in marketing or any other facet of business. Today’s brands must authentically engage with and create the conditions for co-design with existing communities.

That sort of deep, meaningful engagement with customers doesn’t happen over Instagram. It requires a playbook, a prototype, and a healthy amount of trust. So, IDEO worked with Athleta and Gap to tap into the wisdom of a council of women who represent intersectional identities and lived experiences. The council surfaced powerful insights for the brand, like the fact that active women don’t need a brand to empower them—they already feel powerful.

After only a few weeks, Athleta experienced the difference between research and a truly reciprocal relationship. The way their brand engages with communities is adding depth, understanding, and authenticity to Athleta’s content, products, and experiences. And women can feel the difference.

76% of US adults say that the media promotes an unattainable body image for women.

Fewer than 1 in 10 businesses review for inclusion as part of product design and marketing campaigns.

>2X

user growth in 2022

13,000+

Athleta WellPro well-being providers active on the platform

Too big. Too loud. Too much. Women have heard it all. So instead of telling its customers what to be, Athleta chose to flip the script and listen. Women would define what community means to them. Over the summer of 2020, IDEO convened a diverse council of women to help make the brand community more inclusive, representative, and reciprocal. Then those women wrote the playbook for how Athleta could stay connected. The work revealed that the way to amplify and deliver on one’s purpose is to uplift existing communities and find new ways to work together.
IDEO partnered with Athleta and Gap to bring together a diverse group of women to create a plan for a more inclusive and representative brand community. Discover the results of their efforts.
Athleta turns to a diverse council of women to improve community.
Athleta
North America
Athleta
She knows best, Athleta, consumer products, retail, consumer experience, retail innovation, healthcare, health innovation, patient experience, brand strategy, brand design, brand identity, brand experience, product design, industrial design, new product development, inclusive design, accessible design, equitable design, how to build a brand, innovation, strategy, co-design, research, prototyping, product development

Why you should treat your DEI data with rigor and care

How do you measure how diverse or inclusive your workforce is? And—perhaps even more importantly—what should you do with that DEI data once you have it?

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Article
Articles

As head of IDEO’s global change management team, which focuses on belonging and equity, I’ve seen the importance of being rigorous with and thoughtful about the information we collect and how we share it.

Telling someone to handle data with care might suggest that it’s fragile or in danger of breaking. That’s not the way I view it. I see a responsibility to keep the data whole. It’s about integrity.

That applies from the very start: gathering and understanding your DEI data. Do so with rigor. The system, process, tools, and analysis method you’re using should stay consistent. Looking at the same factors the same way every time allows you to measure progress, and the uniformity will help people trust the data.

When it comes to data related to DEI (Harvard Business School Professor Frances Frei puts it nicely as “achievement” and “sentiment” data), the achievement part is fairly straightforward. It’s what the organization looks like across different levels of the employee life cycle in a number of demographics. There are the core metrics around representation in terms of race and gender, and some organizations also track sexuality, disability, and education. These metrics help us answer questions like: How diverse is our senior-most leadership level? Which groups are leaving the organization the fastest? Are we over- or under-recruiting certain identities? Are we promoting men faster than women?

The sentiment data is about bringing in the employee voice and getting at what it feels like to work at the organization. If the achievement data is the what, the sentiment data is the why. These are the questions around culture, about whether employees can say “I can be my authentic self at work” or “I have easy access to information.” These are the questions that help you get at whether the culture is too transactional, too cautious, whether people feel they can innovate. The achievement markers are the same across the board, but the sentiment questions tend to change by organization and can be shaped based on places you might have concerns about based on early hunches or focus groups.

Presenting the DEI data you’ve collected to your workforce isn’t enough. You also need to share the actions you plan to take based on it.

Once you have collected the data, transparency is important. But pause first. The way forward is to proceed with care. Data and information can be a burden to people, especially if they don’t have the power to impact it, so it’s important to understand who holds the accountability. If you were to go out to the broader organization and say, “Hey everyone, we have a lot of evidence we’re failing on these metrics,” people will immediately want to know what you’re going to do about it. Building trust requires that you have thoughtfully considered possible interventions and solutions. There is responsibility that comes with transparency.

Design can be a powerful way to arrive at those interventions. Let the data first sit inside the group that is accountable for designing ways to prototype and pilot initiatives that might help improve future metrics. For example, if the sentiment data shows your people don’t feel like they belong upon initially joining the organization and don’t know where to get the information they need to do their job well, you likely have an onboarding problem. Maybe you’re putting a disproportionate amount of energy into recruiting but not ensuring those employees succeed once they are inside the organization.

What does the way forward look like? Use the insights that emerge from the data to prototype interventions.

With that insight, you can prototype interventions: What would it look like if we paired every new employee with someone from the same background or interest who is thriving in the organization? What if there was a two-week support circle for new employees every 60 days?

Once you have your interventions, you’ll want to test the ideas with a few groups of people and get their feedback: in the onboarding example, perhaps the ones who have been at your company for less than a year and the ones who the intervention might put a burden on. It's best practice to invite the employees at the margins of the organization (typically from a race and gender lens) to get their input on your recommendations—if they are willing and it’s not a burden to them—before sharing with leadership. If you’re able to design interventions that work for those most marginalized in the organization, the solutions will work for everyone.

Onboarding is something we’re working on at IDEO based on our last Culture survey. When we dug into the data we realized that as a creative organization, new hires want to tangibly contribute from day one. Great onboarding gives the security and confidence to do that, and so we have been piloting initiatives ranging from having two leaders dedicated full-time to onboarding within our talent organization to having new hires shadow a designer of the same craft on a project so they can start to understand how to create value from day one.

Treating the data with care involves sharing your findings and suggested actions with various groups of people, from those most impacted by the interventions to those who sit at the margins of the organization, and getting their feedback.

Once you’ve identified some potential interventions and soft-tested them with the right stakeholders, you are ready to share the data company-wide: “Here’s what we heard and learned and here are three to five things we’re going to prioritize as next steps.” You aren’t restricted to sharing shortcomings. Accentuate positive findings too, things you’re trying that are working or successes that you’re going to amplify going forward.

Especially with DEI data, remember that internal audiences are more important than external. A lot of companies capture this data and put it on their website as a recruiting and tracking tool, and that’s a great way for organizations to hold themselves accountable. However, the fastest way to break trust is to make employees feel like the data is only being captured for external purposes. Keep the emphasis on collecting and sharing data internally in service of improving employees’ experiences at the company and the effort will feel genuine.

A daily walk along Chicago’s riverwalk helps Lauren recalibrate.

Regularly deep diving into achievement and sentiment data can be emotionally taxing. If you’re doing this work, be sure to give yourself a way to take a break from it. Last year I started walking every morning on Chicago’s riverwalk, because it grounds me and gives me perspective. It’s easy to get hyper-focused on the challenges or overwhelmed by the gaps we need to fix and inequalities we need to right. Taking a moment to get my body outside and walk around helps remind me there’s more beyond the problems I’m trying to solve and helps me be present for people while I am working. There’s something so inspiring and revitalizing about having fresh air hit my face every day. And even though I pretty much walk the same route, I notice something new every day, something I didn’t see the day before. I try to bring this same curiosity to my work. Even though the challenge may look the same from day to day, there’s always a new idea or potential solution just one step away.

Proceed with care. It’s some of the best advice I can give when it comes to diversity, equity, and inclusion data—how to best measure it and what to do with that data once you have it.

Technology
why you should treat your dei data with rigor and care, technology, digital innovation, equity, diversity, inclusive design

How curated clutter makes this designer’s home inspiring

In our work-from-home times, it’s a different way to think about your space.

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Clutter has the opposite effect for me, but there’s a very specific twist. If the type of clutter that drags us down is disorganized clutter—stacks of papers, discarded shoes, and items with no home—I’ve cultivated the opposite: what I like to call “curated clutter.”

I’m an industrial designer who works as an IDEO Toy Inventor in the Play Lab. My job is exactly what it sounds like: I come up with new toy and game ideas based on market research and client asks and then design and prototype them.

Like so many of us, I have been exclusively working from home in San Francisco since March 2020, and the remote working space I’ve created for myself is different from what I’ve seen so many other designers create. Theirs tend to be sleek and very minimalist. That’s never been me, even dating back to design school, when I used a desk covered in astroturf.

The books shown here are carefully curated, too, and range from books on concept art for movies and installation design to an original catalogue for a Memphis Milano exhibition—one of Andrew's most prized possessions.

My workspace is an explosion of color, an arrangement of knick knacks on my desk and shelves that serve as pieces of inspiration. Some have been with me for more than 25 years. Others are recent additions, both things I’ve collected and gifts from friends and relatives who have spotted things they thought were special or entertaining and might fit well.

I don’t keep a journal, but my knick knacks function as sort of a substitute practice for that. They capture both some of the chronology of my life and the emotional state I was in when I received them. I have alien action figures from my childhood that remind me of how genuinely afraid I was of aliens as a kid and how far my thoughts and imagination could stray. But there are also items I’ve collected while dating my partner, like a meaningful piece of coral from my first trip to her home in Hawaii. It’s sort of like free-form scrapbooking, just not confined to a leather-bound tome that gathers dust. While nothing’s written down, that history is captured, and I get to scan and revisit it regularly.

Can you find the bunny pin? Andrew won it in a giveaway from an artist he has followed since childhood who had a huge influence on his interest in art and design.

The clutter is curated but not fixed. I rotate the items, and that process is rejuvenating and refreshing. To keep things from straying toward hoarder territory, I stick to a couple rules: I only hang on to the things that have some kind of value to me, and if I can’t move something without knocking something else over, I need to reassess.

I live with my partner, who is adamant that she is not a fan of clutter, but our friends will laugh and say “What are you talking about?” Her approach is an even more curated and refined way of displaying objects, and I think it’s a good illustration of there not being one “right” way to do it. Your curated clutter could be five items or five hundred. Ultimately, if clutter is made up of the things that have no home, curated clutter is made up of the things that make your home.

For many people, designing their workspace or spaces in their home is a very purely aesthetic process, like, I like the way this lamp looks, or this pencil holder looks. That process can end up being devoid of emotion, which I think can result in a space that's not necessarily built to address our emotional well-being—a consideration that’s more important than ever these days.

I know incredible designers who project a very clean designer persona and have tasteful objects in their houses: walnut, leather, beautiful brass hardware. And then you look at their inspiration boards for work and they're wacky, and I don’t see the purpose in reining in that inspiration. Sometimes the idea of what is good taste causes people to censor their living space. That’s not for me. I’d much rather be in a place that’s overstimulating than understimulating.

Andrew's travel shelf holds items from Denmark, New Mexico, Bali, China, Peru, Paris, Guatemala, New York, Japan, and Mexico. Some are from his travels, others were gifted to him.

I would say almost every day I feel inspired by what surrounds me. It’s a library of thoughts and thought-beginners, especially my desk, which puts different textures and color combinations and parts and mechanisms in front of me. But above all else, my curated clutter provides a sense of comfort, which ends up supporting my emotional well-being. At times when I feel anxious or overwhelmed, it grounds me because it’s an extension of myself: a way of revisiting people and moments that matter. It’s like flipping through your journal to remind yourself where you come from, then feeling energized enough to flip to the next blank page and keep going.

Multiple studies have suggested that cluttered workspaces are no good for us, or even downright harmful. Connections have been made between clutter and procrastination, stress, and even life dissatisfaction.

No items found.
how curated clutter makes this designer's home inspiring, workplace design, employee experience, future of work

Letting go of ego helped this designer create a transformational brand

Luca talks with IDEO about his time at D-Ford.

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On its face, those client experiences might sound worlds apart. And they were, but not for the reason you might expect.

I came to IDEO from those luxury ateliers and joined a team that was designing a new brand for Ford Motor Company. I brought with me the best of what I learned in Paris: a vigilance about being a brand-guideline guardian and a proficiency in creating highly aspirational brands.

Our remit was to come up with a brand for the innovation lab of the 118-year-old automotive company—what would come to be D-Ford. The lab’s remit was to use human-centered design to drive progress, so the brand had to give new meaning to the word “design,” which was very specifically associated with car design internally. It also had to be capable of being comfortably and regularly used by everyone, designers and non-designers alike.

We landed on a brand that involved no special fonts and a few shapes that quite literally anyone could draw. It may not sound lofty, but it was incredibly challenging. And more than that, it was impactful—on the client and on me.

In the luxury ateliers, I was accustomed to interacting with and designing for designers, not the wider organization. I operated in a space where brand books specs were jealously guarded and consistency was the goal.

With D-Ford, the goal was to maximize brand adoption, which was ultimately about adopting the purpose of the lab. To do that, we had to educate ourselves about the organization.

What unfolded was a co-design approach. Our team traveled to different parts of the company and spoke to people, even people who felt they were very far from design. That was such a different approach and scope for me, but it surfaced an important reality: design, historically, was seen as a practice for the few at Ford, where the number of engineers outweigh that of car designers.

With D-Ford, we needed everyone to feel capable of being a designer. Our team had to set up design tools that aligned with the typical employee’s skillset, meaning the brand system had to work seamlessly with Google Slides and PowerPoint.

We observed employees as they worked to get a sense of how much the brand would need to flex in order to be comfortable for them to use.

We sat at people’s desks to see how they built presentations, which fonts they had installed on their laptops, and what they knew about Adobe. We realized we had to design soft guardrails—no software to learn, no new typefaces to install—so that whatever they produced in the lab could be easily shared across the wider organization.

The brand needed to stick, be easy to replicate, and take into account what we found to be pretty consistent opinions about specific colors and shapes across the company. For instance, every engineer wanted us to steer clear of red because of its association with danger.

The shapes we landed on were simple. The process of getting to them was not.

We settled on three simple geometric shapes that linked to D-Ford’s three-word purpose statement and were ones that anyone could draw. A triangle for drive, a circle for human, and a plus sign for progress. They were graphic assets everyone could recreate regardless of their design proficiency, and they provided a simple but effective visual link to the story of what D-Ford stood for.

As for typeface, we ultimately chose the same one Ford was already using, meaning there was familiarity there, but we employed a different typesetting to create a completely fresh result.

The goal here was a grassroots ownership of the assets. When the 12-week project ended, our engagement with D-Ford continued [IDEO has had a nearly 20-year relationship with the carmaker], so I got to watch how the brand design was adopted and evolved and the life it took on in the hands of non-traditional designers.

One way we saw the brand put to use: An engineer created this logo for International Women’s Day using the circle, triangle, and plus sign.

For instance, there was one lab team member who had never designed anything for print before. He used the simple templates that had been created to design a booklet for a presentation he was giving. His enthusiasm and confidence in sharing his creative work with another engineering division was the type of behavior we had hoped the internal brand would foster.

Brand design is often mistaken with art. It has an artistic component but needs to be democratic. We didn’t want to create the brand as an art piece to look at but as an open book to use. The only way to make that happen was to be very empathetic. We needed empathy to understand the employees’ worries, challenges, and motivators within their existing culture, but even more than that, we had to understand what was needed to promote a different behavior—a culture of experimentation.

The end goal was to create a living and breathing brand that was rooted in what we heard its users needed—and what they didn’t want.

The aesthetics of design are important. It’s what gives us as designers the sensitivity to what works and what doesn’t visually. But the aesthetic is only as good as what people can do with it.

What attracted me to design in the first place was that I was going to push materials to the edge to design something that would be compelling. That was certainly true with luxury, where I regularly tested how far I could push tangible things. How much can I bend this plastic without it cracking? At D-Ford, I needed to bend people and their behaviors, and it was much less tangible.

The D-Ford work helped me understand the value of that different kind of design work and really demonstrated how impactful your work can be even if it feels at first like it’s going to be more gray.

Giving up the reins and not having tight control of the usage of the brand—it’s a challenge to the ego. But that’s part of what it means to design a brand that is owned by the people. If you distribute ownership you distribute ego.

That made for a humbling experience. It helped me realize how complex an organization can be and that brand does not have to get in the way of it. If anything it needs to simplify. If I had listened to that ego the end result may have been loftier and better for my personal portfolio. But the work would not have had the impact the organization needed. In the end, the right impact is what every designer strives for.

I’m in a drafty room in Farringdon, London, shaking the hands of a dozen mechanical engineers. A few months before, I was scoring paper at an airy luxury atelier in Paris.

No items found.
letting go of ego helped this designer create a transformational brand

The possibilities business

An oral history of organization transformation.

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A decade ago, Rodríguez-Pastor asked IDEO to help him realize a unifying, human-focused, mission: to leverage the power of its business to uplift Peru’s middle class.

Beginning with a single engagement in 2011, IDEO and Intercorp’s work together grew into an unusual entanglement of organizational cultures, brimming with stories of mutual influence.

Since then, IDEO’s work with Intercorp has touched more than two dozen different companies across the group as the business grew from $2.9 billion in revenue in 2011 to $8.5 billion in 2021. Intercorp now employs more than 80,000 people and its revenue represents more than 3.5 percent of Peru’s gross domestic product.

Yet the greatest change has been in the minds of Intercorp’s leaders. In looking back on 10 years of collaboration, a key theme emerges: Working with IDEO on dozens of projects has taught Intercorp’s teams new capabilities, and that has snowballed into a new way of thinking for this broad-reaching company.

The following oral history recounts how the organization has transformed over the last decade through a series of leaps: imagining a more human-centered future, using digital experiments to gain confidence, and changing mindsets across the company to ensure resilience over the next decade.

I. Building belief: I can see what we need to do

Carlos Rodríguez-Pastor was born in Peru, and educated in the United States after his father became a political exile in 1969. The family returned in the 1990s, and Rodríguez-Pastor’s father began building a banking business, which became known as Interbank. When he died suddenly in 1995, Rodríguez-Pastor himself became the bank’s chairman, a position he used as a beachhead for growth in Peru’s liberalizing economy. With the founding of Intercorp in 1997, Rodríguez-Pastor charted an audacious path beyond banking, with its unifying force being the well-being and prosperity of Peruvians. It was a far-reaching ambition that bridged people and profit—but to pull it off, he needed help.

Rodríguez-Pastor asked IDEO for help with two distinct projects: a new school system that would be affordable for the emerging middle class; and a new customer experience for Interbank, Intercorp’s flagship bank.

Carlos Rodríguez-Pastor: “We had a big goal—to make Peru the best place to raise a family in Latin America—which was both a moral obligation and an opportunity. We saw that if you make the pie bigger, then we’re going to help a lot of people, and our businesses are also going to do better. Our education system was struggling and we wanted to help change it."

Sandy Speicher, CEO of IDEO: “It was really a brave moment, both for Carlos and for us. Carlos knew how important it was to create opportunities for people by securing their educational foundation. But Peru, at the time, was one of the lowest ranked countries on an international survey of education systems."

The new school system, known as Innova Schools, was a success on its own terms: In 2020 it enrolled 42,000 students across 68 locations in 3 countries (Peru, Mexico, and Colombia); boosted 4th grade students’ math and reading test scores 2x compared to local public schools; and saw 99 percent of graduates go on to higher education or actively prepare for college. For Intercorp and IDEO, this formative project suggested broader possibilities—for organizational change across Intercorp, which could in turn inspire societal change across Peru.

Interbank presented a different type of challenge. Peru’s history of political instability had left a consumer banking environment controlled by security concerns. IDEO and Intercorp prototyped an experimental space called Interbank Explora, which brought the staff out from behind bulletproof glass and into the middle of the banking hall, making for a more welcoming experience.

Luis Cilimingras, Partner at IDEO: “We realized the intimidating environment wasn't welcoming for customers, and also meant that branch employees and managers were out of touch with the customer's day to day experience. We asked, ‘How could you redesign the banking experience so people would feel good about going inside?’”

Luis Felipe Castellanos, CEO of Interbank: “Before, everything was done on the basis of surveys or a focus group, at the most. IDEO gave us a different way to understand our clients, and get involved in their day-to-day lives. We almost lived with them."

Luis Cilimingras: “With the new branch experience in place, Interbank’s employees told us ‘Now some of my customers kiss me goodbye!’”

In Interbank Explora’s first sixty days, sales increased by 30 percent, customer satisfaction improved, and profitability grew by 32 percent. Building on that success, the changes were rolled out across the bank’s 2,200 branches.

Luis Cilimingras: “The investment and the participation of the leaders in the process made them realize: ’we need to be working in this way.’ They were just immediately converted.”

II. Launching an innovation engine: We can do this

Intercorp and IDEO began considering ways to extend their collaboration across the groupmeaning to more of Intercorp’s diverse holdingsby building an internal innovation lab in Lima.

Luis Cilimingras: “Carlos [Rodríguez-Pastor] was like, ‘Okay, first time, with Innova: Lucky! Second time, with Interbank: It seems I have a partner!’ Intercorp saw us as somebody who can help them imagine the future, who is going to help drive change.”

In 2012, Hernan Carranza, then a young executive at Casa Andina, Intercorp’s hotel company, spent a summer working in IDEO’s Munich studio. Afterwards, he pitched Carlos Rodríguez-Pastor on the idea of an in-house digital innovation shop. That idea evolved into building a human-centered design team that could work across Intercorp’s companies. Rodríguez-Pastor seized on the idea, and made Carranza Intercorp’s first Chief Innovation Officer.

Hernan Carranza, Chief Innovation Officer of Intercorp: “That's when we said, ‘Hey, why don't we have a design team—a mini-IDEO—in Lima?’ That would put it much closer not only to the Peruvian family, which is who we design for, but also to the executives of the Intercorp group, who are the people with whom we co-create the solutions for the families.”

Luis Cilimingras: “We were bringing a new set of techniques and approaches to solving problems and they were bringing operational expertise and local talent who understood the context in which we were working. But these were far from what I had imagined as the 'ideal conditions' to set up an innovation team. It was jarring to realize how much I had to learn to be effective. With a product mindset, you have this vision of what the end result will be like. I had to scrap that and embrace what I didn’t know as the key ingredient for success.”

Hernan Carranza: “If Intercorp and IDEO had a child, that would be La Victoria Lab. But even a love child isn’t easy! We found a way to have our own voice that is authentic to us. But what we conserve are the foundations of IDEO’s approach: being highly experimental, being truly curious, being intuitive. All those mindsets that we learned from IDEO are the cornerstone of what we do.”

Watch "It's Up to Us", a short film about IDEO's 10-year partnership with Intercorp and how it transformed the organization.

La Victoria Lab (LVL) opened in 2014 in a converted house a few blocks away from Intercorp’s headquarters. Their first project was a deep ethnography of the Peruvian middle class, presented in a way that would engage executives across Intercorp.

Maria Paula Loayza, Portfolio Lead at La Victoria Lab: “We turned our own office into a small exhibition, so people could walk around and experience the research, as if they are dropping into someone’s house.”

Luis Cilimingras: “We invited leaders from across Intercorp, and we shared these stories with them. And that built La Victoria Lab’s brand within Intercorp—you can come to us when you have a human problem. Don't come to us with an efficiency problem. Come to us when you have something that has a deeply human need.”

In its first two years, La Victoria Lab grew to over 20 designers and launched multiple initiatives across Intercorp with a single objective: to build belief and confidence in their ability to design impactful services and experiences for Peruvian families. Given the vast scale of the conglomerate, this early work was just a start, but it was consequential in its ability to inspire Intercorp’s leaders.

III. Unleashing a digital transformation

With La Victoria Lab on its feet, its designers homed in on a “theory of change,” a method by which their small team could create work that inspired innovation across Intercorp. For years, Rodríguez-Pastor had been pushing for a company-wide digital transformation, but there was little progress. The businesses had a vestigial brick-and-mortar mentality and didn't see digital as something that would take hold in Peru for another decade. LVL saw this as their challenge: to become a hotbed of digital experimentation, executed in a way that built confidence and capability across Intercorp. Conceived to be highly visible, this category of projects became known internally as “beacons”, digital products whose design and launch would convey to the organization what it needed to change in order to scale digital ways of working.

Maria Paula Loayza: “The beacons were conceived to shine back to the organization everything that needed to change.”

Hernan Carranza: “We were not thinking of ourselves as the scalers of innovation. We were more like igniters. We were always like, ‘how do we inspire the leadership?’"

Maria Santolaria, Program Director at IDEO: “Our thesis was that by injecting something—a team that worked differently, or a digital product that was built and launched in a different way—the organization could mimic that behavior and change organically.”

The most popular of the early beacons were for Inkafarma, Intercorp’s consumer pharmacy chain, and Interseguro, their insurance company. Inkafarma’s project became a model across Intercorp for a digital-first strategy. By making it seamless and convenient for Peruvian customers to get medications delivered to their door, Inkafarma’s mobile platform predicated many of the features that would become essential during the COVID-19 pandemic. The app now drives up to 20 percent of Inkafarma’s business in urban areas.

Hernan Carranza: “In creating Inkafarma’s delivery app, which considered the needs and pain points of the consumer first and foremost, the team started designing and implementing on the fly, with the goal of putting functional products in the hands of users—in order to capture real reactions.”

Maria Paula Loayza: “At first, everybody at Intercorp was kind of looking at us weirdly, because what we were putting in the hands of consumers was crude. But we were able to apply our learnings as we went, and show how these small projects could be like proof points—prototypes that build confidence and begin the complex process of transforming organizations.”

Patricia Conterno, VP of Digital and Analytics at Interseguro: “Interseguro was not then a company centered on the user. When we developed a new product, we just did what we thought was right and hoped people liked it. Our beacon with LVL helped change that. Now we're constantly experimenting, testing with users, and trying to solve any friction they might have. To do so, we’ve now put 15-20 percent of employees in digital transformation roles. Once we launch a product, it is never finished.”

IV. Changing mindsets: This is us now

As La Victoria Lab’s reputation grew within Intercorp, IDEO’s role shifted. Intercorp had the ability to tackle core business opportunities in-house, so IDEO turned to guiding critical, strategic programs (like climate change and DEI initiatives); industry deep dives in sectors like health care; and continued support for leaders as they embraced new mindsets and ways of working.

Hernan Carranza: “A specific behavior we developed with IDEO is what we internally call ’tunking,’ which is when someone leading a creative project looks to others for honest feedback. I remember Luis Felipe Castellanos, the CEO of Interbank, once called me and said, ’Hey, can you send me six, seven more tunkeros to look at and tune my five-year vision?’ I thought that was fabulous. It's a sign that this leader is becoming a more vulnerable person, a more open leader who wants to listen to other perspectives.”

Luis Felipe Castellanos: “Leadership is not about having all the answers, it's about having the right questions. Working with IDEO has made me a much more human leader, focused on understanding the human being behind all of our solutions and all of our offerings.”

Fernando Zavala, CEO of Intercorp: ”What IDEO and La Victoria Lab have done is to permanently push us to think differently, to open our minds, to confront our ideas and, based on that confrontation, to get the best out of it.”

Hernan Carranza: “IDEO infected us with this little bug of permanent curiosity. To be constantly learning all the time—but, even more importantly, constantly unlearning. For Intercorp’s leaders, La Victoria Lab has become a stone in the shoe, always looking to discomfort, to challenge, and to take solutions to the next level."

After a decade, IDEO and Intercorp have come to an unusual understanding of what they have most meaningfully created together: not projects and businesses, but people and culture. It has been a transformation not only of design and efficiency, but also of mindset and approach.

Hernan Carranza: “I think my main learning in this last decade is that the transformation of a conglomerate of 80,000 people starts with the transformation of oneself as a leader. If you are able to start transforming your mental model, that makes another leader, another leader, and leadership begins to cascade.”

Sandy Speicher: “They’ve built this massive organization of learning. They’ve taken this model that we designed with them, and built an organization that continuously learns, and continuously designs, and continuously evolves.”


Carlos Rodríguez-Pastor: “Ten years into our relationship with IDEO, Intercorp is a totally different company. We are a much more customer-centric company. I think we have more empathy. We want to become the best place to raise a family in Latin America. I think that's achievable within the next 10 years. It's really up to us.”

Illustrations by Stephanie Sizemore

When the public sector falls short, should business step in? That question was top of mind for Carlos Rodríguez-Pastor, President of Intercorp, a Peruvian conglomerate with an expansive range of companies from banking to education to health care to retail.

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Lindsey Turner

I’m passionate about building brands, products, and experiences that help organizations show up with meaning and momentum.

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Leader
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I help organizations cut through complexity by shaping how they show up, through brand strategy, identity, and storytelling.

Working at the intersection of brand and business, I bring an editorial eye and a bias toward making—turning ideas into tangible experiences that people can understand, trust, and believe in.

My work spans government, healthcare, financial services, media, and consumer goods, from launching Gen Z-focused ventures to building innovation labs and reimagining legacy brands. I relish moments of ambiguity and enjoy translating across teams, perspectives, and priorities to move ideas forward.

I started my career in editorial and digital design, shaping cross-platform experiences and identity systems in publishing and agency environments. That foundation still shapes how I work today: I’m detail-oriented, collaborative, and overreliant on the Oxford comma. I hold a BFA in Visual Communication from the School of the Art Institute of Chicago.

My tween twins teach me more about technology and gen-alpha than the last decade of trend reports.
Making things that matter
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Rachel Young

My work helps organizations see who their products aren't working for—and build the will and the tools to do something about it

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For 25 years, I've asked the same question: Who does this design exclude—and what are we going to do about it?

My work spans human-centered strategy, inclusive design, and qualitative research, with clients ranging from Microsoft, Google, and Verizon to the National Science Foundation, and San Francisco Unified School District.

Before IDEO, I taught elementary school in East Palo Alto and spent a decade doing design work with social service organizations—where I learned firsthand what it costs people when systems are built without them in mind.

I am currently writing User Error, a nonfiction book about digital access and the design decisions behind it. I live in Oakland, California.

The greatest project to which I’ve ever contributed is raising my two daughters with my husband.
Uncovering unmet needs
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Brian Pelsoh

I lead with craft, ensuring our work is creatively excellent: rooted in deep human insight and imagination, while also grounded in the realities of business and technology.

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My expertise spans brand, communication, and product design across tech, education, the arts, and social impact.

I believe great work demands both high-level vision and obsessive attention to detail, and only happens through collaboration.

I bring an inclusive, hands-on approach and a deep understanding of business, which enables me to consistently deliver excellence while always asking why.

Before joining IDEO, I worked at the brand firms Pentagram and VSA Partners. I began my career as a designer, leading teams at the School of the Art Institute of Chicago and the Milwaukee Art Museum. I hold an MFA in graphic design from Maryland Institute College of Art and a BFA in communication design from the Milwaukee Institute of Art & Design, and have taught at some of the best design schools in the US.

I love a good crit.
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Tony Wong

I am responsible for IDEO’s long-term success in China and working with clients to use design as a tool to enable growth.

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I am responsible for IDEO’s long-term success in China and working with clients to use design as a tool to enable growth. Specifically, I have helped Chinese companies design holistic brand solutions through the development of their products, communication, services, and innovation teams, and I have helped multinationals expand their presence and influence in China.

I advise global leaders on developing China-led innovation and capabilities.

In over 15 years in IDEO Shanghai, I have worked on projects that use design to elevate the quality of the experience of healthcare products and services, streamline processes that increase productivity, create spaces and programs that promote and enable inclusive communities, and build next generation mobility solutions that are planet-positive.

Before joining IDEO, I worked at Philips Electronics and the Electrolux Group in Italy, the Netherlands, and Singapore on a number of breakthrough commercial products. I am a member of the Young President Organization in Shanghai.

I have a thing for antique maps.
Developing China-led innovation and capabilities'
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In this episode, Becca Carroll, IDEO's Chief Strategy Officer, talks with Sida Li, co-founder and CEO of Shared Context Lab, about staying anchored to a human need while the technology around her keeps changing shape, why she treats her business model with the same rigor she'd bring to a product, and what it feels like to build a company at this particular, disorienting moment in AI.

The conversation also gets into how Sida makes design decisions: the language Cue uses to describe itself, the tradeoffs behind building inside iMessage instead of a new app, and a real story about a business idea that didn’t pan out.

This is the second in a two-part series profiling founders from IDEO's Startups-in-Residence program. The first conversation is with Johannes Seemann, founder of Sooner, on designing GenAI for the emotional side of money.

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