Sealy and IDEO first collaborated in 2008, to rethink the design of its Stearns & Foster line. For years, Sealy, the largest mattress manufacturer in the world, had taken the standard industry approach to selling mattresses and watched market share and sales flatten; it knew something had to change. Stearns & Foster evolved from a single product design into a keystone for transforming the organization.

IDEO helped Sealy use actionable consumer insights to develop a scalable design methodology and new brand principles, which it applied to product design, operational and manufacturing decision-making processes, and sales and marketing strategy. This “brand-to-product” framework was subsequently used for three separate and consecutive product launches—Stearns & Foster, Embody, and Posturepedic—resulting in an overhaul of 85 percent of Sealy’s mattress portfolio.

Tempur-Pedic was already working with IDEO on a new mattress design when it acquired Sealy in 2013. It was also interested in how design thinking and human-centered design could improve its business. Once solely focused on the technological elements of designing a mattress, together with IDEO, Tempur-Pedic redesigned the outer shells of its mattresses to reflect the quality on the inside. This design change led to the company to look at new ways to infuse design into their products.

“The initial project was to design the mattress,” said Thomas Overthun, associate partner and design director at IDEO. “But the second project was to create a whole design language from the mattress out to what it meant for any other product, from pillows to blankets and other accessories. It eventually became bigger than just the mattress.”

Working on the Tempur-Pedic/Sealy relationship has been gratifying, said IDEO partner and design director Michael Hendrix, because although home goods can be thought of as simply products, nothing could be further from the truth. IDEO and Tempur-Pedic/Sealy changed the course of the mattress company's business through the transformative power of designing where, and ultimately how, people sleep. And in the process, the organization itself changed as well, moving siloed departments to cross-functional teams, with the brand division central to their cooperation, which led to consistent and aligned decisions across the board.

Some of the projects include:

Stearns & Foster Luxury Mattress
Sealy teamed up with IDEO to develop a design language for Stearns & Foster mattresses that would reestablish what the brand stood for. Through redefining brand principles and rounds of prototypes that focused on evocative details, the new Stearns and Foster mattress was the highest rated in Sealy’s portfolio since it started keeping records, and initial retailer orders were three times what management projected.

Next-Generation Posturepedic
An icon in the mattress industry was brought into the 21st century by developing a new product that delivered on the long-running promise of the brand. Together, IDEO and Sealy designed a product that focused on holistic back health. In its earnings report, the company said US bedding sales for the quarter were up 10.6 percent, to $253.4 million, a figure driven by the new product line’s introduction. According to Sealy’s Q3 earnings report, the Posturepedic launch represented the largest and fastest rollout in the company’s history.

Embody by Sealy
The project began by defining the market opportunities for all-foam beds, and ended with the modern, streamlined Embody mattress as well as a simplified design language, free of industry jargon, to help retailers talk about the mattress to customers. “Sealy collaborated with IDEO to create an approachable and attractive mattress that delivers the simple, healthy rest consumers want with a selling story they can easily understand,” said Jodi Allen, Sealy’s Chief Marketing Officer.

Tempur-Pedic Sleep System
Best known for the revolutionary, NASA-proven Tempur material inside its mattresses, Tempur wanted to transform the exterior of its mattresses to match the caliber of innovation inside. Together with IDEO, Tempur created a new sleep system, including an easily removable and washable fabric mattress cover. “Tempur-Pedic was born of innovation, but we were never a design-driven company until we worked with IDEO,” said Patrice Varni, senior vice president of brand marketing, Tempur Sealy North America, LLC. “Seeing consumer need in a new way through IDEO’s eyes has transformed us. Our product design, our creative psyche, our brand are all fundamentally changed by this sharper focus. This collaboration has given us all a renewed sense of pride.”

The challenge of how we’ll feed the exploding world population in the future—in a sustainable, cost-effective, and environmentally friendly way—is seeding an agricultural revolution in Europe.

In 2012, INFARM founders Erez, Guy Galonska, and Osnat Michaeli found that vertical farms could be a solution to urban self-sufficiency. These farms could allow people to grow vegetables and herbs in small spaces, with no soil and far less water.

An approach that’s captured the imagination of futurists for decades, vertical farming involves growing vegetables and herbs in stacked units or inclined surfaces, within which moisture, light, temperature, and nutrients are monitored, and controlled.

After creating their first vertical farming experiment in their apartment in Berlin, the founders brought together plant scientists and industrial designers to explore and develop vertical farming’s potential.

Since then, the startup has created custom growing systems for clients including Airbnb, Mercedes-Benz, and Weber. Most recently, INFARM installed a vertical farm growing herbs and vegetables at the Berlin branch of German supermarket chain Metro, the fourth-largest retail chain in the world, to sell to the public. It’s been profiled in Wired Germany, Süddeutsche Zeitung, The Guardian, and Zeit.

INFARM collaborated with IDEO to further explore their B2B offer, including concepts for the industrial design of the stackable, modular, climate-controlled units; the interaction design of an accompanying app to monitor and control the units, and its business model.

Urban farmers will sign up for “farming as a service,” comprising the units themselves, as well as a monthly subscription for seeds, cartridges filled with nutrients, and a pH regulator. Because they’re stackable, the modules can be scaled to suit anyone from a home grower to a restaurant chef or supermarket owner. And Erez claims a 1 square meter growing tray can yield four to six mature plants every day, 365 days a year, doubling that of state-of-the-art hydroponic greenhouses.

As well as remotely regulating each unit’s climate, the app will educate growers about new vegetables and herbs, selling packs of complementary seeds, with suggested recipes for them, and cooking instructions. Aiming to promote biodiversity, the firm will sell rare-breed and heirloom seeds too.

The startup has funding from the EU’s European Pioneers fund, and is now looking to secure investment to accelerate software development and ramp up their hardware production capabilities. Quite literally, it's growing its business.

Sesame Workshop is the nonprofit educational group that revolutionized children’s television with the launch of the landmark Sesame Street program in 1969. The show, which has since become a household name, is now watched in more than 150 countries worldwide. The Workshop also creates educational content for new media platforms, and partnered with IDEO to design a line of Sesame Street–themed apps for Apple’s iPhone. The Elmo Calls app, which functions as a utility app for parents and as an entertaining behavioral-development app for kids, is now one of the Top 100 paid iPhone apps in the iTunes store.

The collaboration began with a mutual desire to bring the show’s beloved characters to the iPhone platform—and to do so using a human-centered design approach. Child-development experts, educators, toy and interaction designers, and even the Sesame Street puppeteers weighed in on the design decisions. The team also worked closely with families throughout the project—from initial concepts to early prototyping to the final development—in order to stay focused on how children actually use the iPhone for play. The games were designed accordingly. For example, the team omitted menus from the Sesame Street apps to keep the experiences simple, playful, and fun for a young child. And each game features exclusive new Sesame Street videos, allowing players to enjoy “lean back” moments along with interactive ones.

The resulting iPhone applications let children engage with the favorite Sesame Street characters in a whole new way. Kids touch, shake, swipe, and tilt their way through original games featuring Elmo, Grover, Bert, Rosita, and the Count.

The titles, all of which are available from iTunes, include:

• Elmo Calls: Engages 2- to 5-year-olds in listening-skills practice and active participation during everyday situations.
• Elmo’s Monster Maker: Allows kids to create unique monster friends that dance and play with Elmo.
• Sesame Street Video Maker: Lets kids star in their own music videos, mashing recordings of themselves with popular Sesame music videos and adding their own stamps and special effects.
• Sesame Street Makes Music: Helps kids explore an array of instruments as they contribute to new renditions of classic preschool tunes with their Sesame friends.

How do you know when you’re successful in your work? You can check off a list of technical skills and expertise you bring to the table. You can use a career development rubric to make sure you’re hitting the right goals. But often, it’s your behaviors—the intangibles that are the most difficult to articulate—that make the most impact. Things like your ability to stay optimistic or your willingness to adapt when there’s no roadmap.

Because of the nature of our work at IDEO, these intangibles are a big part of what defines the experience of working at the company. So in 2012, a global team of designers from our U.S., Europe, and Asia offices came together to codify these values and behaviors as part of a larger effort to evolve IDEO’s career development platform. More often than not, when IDEOers hit road bumps in their career, it was not about what they were doing, but how they were doing it.

The team agreed that, in addition to identifying the technical requirements needed to progress through one’s career, it was just as crucial to give IDEOers the tools they need to navigate the complex culture. So they captured the values they believed were foundational to the culture and most strongly shared across the IDEO community, and put them to paper in The Little Book of IDEO. The title is meant to reflect its purpose for readers—a handbook that’s compact, useful, and free of any corporate jargon.

For IDEO-ers, this red cloth-bound guide provides a shared lexicon around both the hard and soft skills we need to succeed. It describes things like why IDEO is so loosely structured, where it comes from, and where it’s headed.

Most importantly, the book identifies the organization’s seven core values. These are by design specific, actionable, and integral to the kind of work we do and the environment in which we do it, going beyond common sense and general ethical practice. The intention: to foster meaningful conversations within the community about life at IDEO, and how to achieve success along the way. With each succinct expression comes a deeper explanation of why it matters, and how it shapes our experience at IDEO.

Over the years, the book has been roundly embraced by the IDEO community as an honest articulation of who we are, as opposed to what we aspire to be, and what we appreciate most about working together. When IDEOers first got their hands on it, a movement took shape to create videos that bring each of the core values to life. To depict the value of "Embracing Ambiguity," for example, New York-based designers built a makeshift cardboard rowboat, and while simulating a storm, navigated their way through uncharted territory with teamwork and optimism. San Francisco produced a Jacques Cousteau inspired look at the lifestyle and behaviors of designers in their natural collaborative habitat.

Through the process of making the videos, IDEOers came together to reflect on each of the values, talking through what resonated and what didn’t. It gave them a sense of ownership, and a platform through which to share their interpretations.

A Global Conversation

IDEO has a global presence—offices in two countries in Europe, two countries in Asia, and multiple locations across the U.S. As an organization that embraces a human-centered culture, it felt important to learn if the values resonated with the IDEO community in all of these locations, especially in a country like China, whose working culture is so different from the west. We saw the authenticity and resonance of the values as essential for attracting, motivating, and retaining local talent.

So how did The Little Book of IDEO land in Shanghai? Exploring this question would illuminate insights into how our own clients are often challenged to keep their company culture resonant within the global landscape.

A team of IDEOers in our Shanghai office took on the challenge of exploring the meaning behind each of the values. They were surprised with what they discovered—that despite the firm’s Western origins, locals felt largely connected to the values. It even helped to further solidify their identity as a community, even if it may have been in tension with local working culture, because it was rooted in a set of shared beliefs.

In some instances, the Shanghai team built on the existing values in order to refine the meaning for the local context. For example, the core value "Be Optimistic" rings true, but could sound naive when translated directly to Chinese, implying "rose-tinted glasses.” So in the Mandarin edition, an extra phrase was added to convey the measuredness we mean when we talk about optimism at IDEO. The lesson here: The treatment of something as fundamental and nuanced as our values requires authenticity and emotional connection, and therefore more of a transcreation process than straight translation.

Lasting Power

As an organization, we are designed to be flexible. This means we’re always changing—even when it comes to how we are structured—so that we can respond to the kinds of challenges that clients come to us for. In the midst of our constant evolution, The Little Book of IDEO is as resonant today as it was when it was published.

“You had to build serious cred with them for them to give a sh*t at all, because there’s no consequence,” she says.

Her solution: Making lessons less about the curriculum, and more about engaging kids in the scary, quickly-evolving events shaping our lives. “I’d show some slides and ask if anyone had heard about [the event] and what their questions were. We’d talk about the facts of the situation,” she shared. “I tried to get them excited about their knowledge of [current events].”

In 2020, America’s students and teachers experienced a full-blown disaster, and teachers were the front-line responders. As they and their students were reduced to rectangles on a screen, they had no choice but to lean into innovation, coming up with solutions like having students create hype videos about their favorite books to encourage classmates to read them, leveraging home kitchens to create lab lessons, and using data to evaluate how their students are doing with learning from afar. Under the worst possible circumstances, they came up with solutions that will improve education for the better, in this moment, and for the future.

IDEO and PowerSchool were so inspired by their work that we partnered to research the way teachers hacked, persisted, and made do to uncover clues to innovation. Last year, we interviewed teachers, administrators, teacher coaches, and education experts to get a close up look at how teachers innovated in 2020 and 2021, and how we as designers and makers might learn from their work.

Breaking down silos in the name of collaboration

When this crisis thrust even first graders out of their classrooms and stuck them in front of computers with varying degrees of Wifi—and supervision—teachers had to throw out the rule book. Both expert and mentor teachers alike were caught on their heels, and their only option was to innovate.

To meet this extraordinary demand for real-time innovation, they turned to one another—peers in their buildings as well as online learning communities. Teachers were no longer experts, they were almost “lead learners”—humbly fostering collaboration with one another and pushing forward to develop an entirely new way of working in real time. "The pandemic has enabled so much more collaboration than before,” explained Christine, an elementary school art teacher in Massachusetts. “I've seen techniques done in new ways, skills taught in ways I never would have thought to teach them. This is an opportunity to see how each other teaches!" What’s more, when even seasoned teachers were getting used to an entirely new context, mentor/mentee relationships began to shift, as everyone had ideas to share with each other. A new teacher manager in a district in California told us that “there were a number of examples where the mentor was certainly a more experienced educator, but not nearly as experienced or fast at learning technology, so there was an exchange of skills.”

Teachers were forced into this situation, but their reaction is one that makers and designers should learn from. You might ask yourself—who is it absolutely nuts that I don’t already work with? Who would you call for help if everything fell apart? It might be a person you think of as a friendly competitor. Or it could be someone whose work context just seemed too different—maybe they are more junior, or work in a non-profit setting. At this point, what humanity really needs is connection with one another. To create it, we must break down the silos we’re keeping up. It’s time to rethink the divisions we have between departments, companies, and even sectors to speed up our collective innovation.

Building tighter learning loops

One of the biggest challenges that teachers faced in experimenting with so many new tools was determining what was actually working. After all, rapid prototyping is only as useful as the learning you can apply to the next prototype. Teachers couldn’t afford to wait until grading periods to analyze how it was all working out.

The remote setting opened up the opportunity to work more closely with individual students one-on-one and to personalize learning experiences and methods to meet their needs. Technology also helped them better understand each student’s progress, enabling them to tailor their instruction the next day. More teachers began leveraging instant feedback tools, even as they faced more variability in student knowledge and skills.

Hannah, a secondary math teacher, dove into new apps and services she started using to track student progress to make instruction more personalized, explaining that rather than going on gut feel, “I can genuinely say I know which kids aren’t making the right progress.” When students and families could see educators iterate on lesson plans each week, and make feedback immediately actionable, everyone was able to take a collective breath and feel the progress. Even if the changes were relatively small, they knew that they were being listened to. Teachers built new processes and improved trust.

Maybe you already do rapid prototyping in your work and have formed tight learning loops. Consider how you might use them as a means of not just learning, but showing your users that you’re learning. Internally, we all could be using technology to do daily micro-check moments with our teams and collaborators, and get even more serious and actionable after receiving real time feedback. Imagine a working world where the last five minutes of every meeting or collaboration were dedicated to asking ourselves how did that go? What could we do better next time?

Maintaining a laser focus on what’s most relevant

In some ways, students had their own form of a “Great Resignation” in 2020. They had previously been held captive in school rooms that weren’t catering to them, and their new at-home context meant teachers had to rethink how they were reaching students. “We’re messing around with our schedule,” explained Evan, a middle school principal. “We’re trying to create more space for more things that we say we value.”

Teachers had been operating under a 180-day school year for decades and have optimized their content to fit standard school hours—maybe you’ve been doing the same with your five day work week. During distance learning, teachers had no idea how much time they would actually get with students on any given day, leading them to simplify their content and get strategic about making every minute count.

In an essay from 2003, Jim Collins, the author of Good to Great, stresses the importance of “subtracting.” “A great piece of art is composed not just of what is in the final piece, but equally important, what is not. It is the discipline to discard what does not fit.” It isn’t just about prioritizing what’s most important; it’s about not holding on to the parts that don’t serve us anymore, even if they have already cost us years of effort. We need to consider how to do more with less, and how to subtract what’s not serving us and those around us.

Be human first

Teachers have always been concerned about their students, but the pandemic brought that concern to a new level. (You, too, might have experienced more personal stories, tears, and vulnerability at work!) We saw teachers get creative about meeting students’ emotional needs—trying things like swapping out detention for meditation, or having a weekly “campfire” in class to circle up and share how everyone was doing. They extended deadlines, accepted late work, and allowed students to retake exams. Teachers brought more of themselves to school, showing up as humans first and foremost and prioritizing care before content.

As Jennie, a high school teacher in Ohio explained, “I just have more grace for everyone. Are you lying to me about homework? Maybe. Do you have a reason to be lying? Maybe. I think it’s made me a better teacher. I’m more compassionate. Life’s hard."

As innovators, we too need to build in flexibility for the fallibility that comes with being human, and find ways to bring more humanness to our leadership. We must find ways to prioritize the health and wellness of the people we work with above everything else.

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At both of our organizations, and hopefully at yours, teachers are inspiring us to break down arbitrary siloes, cut the fluff, show we’re listening, and be more human. But they’re not the only innovators we should be watching right now. The heroic, hard-working, dynamic first responders of the pandemic—nurses, social workers, librarians, counselors—are also on the front lines of innovation. They are adapting, growing, testing, and changing at a rapid pace in a way that all business leaders could be taking lessons from.

Read the full Teaching in Flux report, authored by Jen Halls, Ridima Ramesh, and Brian Standeford.

When COVID-19 lockdowns were in full effect, Amanda, then a reading coach in a California school system, was faced with an impossible challenge: figuring out how to get kids, home alone, to log into Zoom for lessons, when no one would be there to make them do it.

In the first phase of our work, we tackled what some might consider “low hanging fruit” in the work toward Net Zero: we estimated our carbon footprint, offset our greenhouse gas emissions, switched to renewable energy, experimented with a modest carbon tax, and improved our responsible retirement investment options.

While these strides are significant, there is still so much more to do—and time is of the essence. There are countless ways forward, but we’re eager to share four next steps we have in mind.

1. Track and manage emissions (Part 2)

Building on our previous exploration, we’re ready to tackle phase two of emissions accounting. At the top of our priority list is identifying a comprehensive emissions accounting solution to track and manage down our Scope 3 emissions. It’s difficult to imagine how we will empower IDEOers to make sustainable decisions without giving them access to data about the environmental impact of those choices. Afterall, what’s the point of managing down your emissions if you don’t get credit for working with Clean Co. over Dirty Co.? Investing in an emissions accounting platform will help get us one step closer to estimating IDEO’s carbon footprint and identifying viable climate-friendly alternatives at scale. From there, we hope to experiment with things like internal carbon taxes or incentives for individuals and teams to manage their carbon footprint.

2. Embed sustainability throughout the project cycle

Despite the increase in climate-forward projects IDEO has taken on, we are still not fully set up to account for the downstream implications of our work. With that in mind, we’re exploring what it would look like to introduce sustainability at every touchpoint of the project lifecycle—from initial client conversations to final deliverables. In practice, this might look like sustainability design reviews with external experts or developing design principles and toolkits like The Circular Design Guide to support climate-conscious work. Ultimately, we hope to foster a culture where teams feel equipped to explore and develop best practices around sustainable work. Regardless of what form this takes, we need to develop a way to track the downstream impact of our projects and deliverables. Ideally, that system would plug into our emissions accounting platform—neither of which we have today.

3. Balance what’s impactful with what’s visible

In order to meaningfully reduce IDEO’s global emissions, we prioritized action that tends to be impactful for our carbon footprint, but invisible to everyday IDEOers and our clients. For example, while switching to renewable energy did not trigger obvious changes to the everyday experience at IDEO, it reduced our global carbon footprint by 4%. These changes can seem at odds with changes that are highly visible yet are often less impactful (e.g., eliminating single use plastics across IDEO). In order to ensure our everyday experience at IDEO does not undermine the climate commitments we have made, we need to balance what is impactful and what is highly visible. This might look like developing frameworks to help project teams weigh the tradeoffs between client travel and environmental impact, holding inter-studio competitions to switch to sustainable food vendors, or identifying a broad set of replacement suppliers for more sustainable goods throughout our studios.

4. Reset industry norms

Let’s face it. If a competitor is willing to get on a plane, we almost certainly will do the same and vice versa. To create the conditions for IDEO to thrive while meeting its climate commitments, we need to reset industry norms and work alongside other creative consulting firms to reimagine the ways of doing business in the 2020s and beyond. This may look like joining or starting a creative climate pledge for companies operating in a climate-forward way, or inviting direct competitors to join our kyu climate action learning group.

As we make progress toward IDEO’s climate commitments, we will continue to experiment, iterate, and learn. Most importantly, we’re eager to learn alongside you. Time is precious and we all need to collectively accelerate toward our respective commitments. In the spirit of co-creating a more sustainable future, we invite you to continue the conversation with us by contacting our team. We’re eager to learn about the steps you are taking, the lessons you’ve learned, and what’s next.

Over the past year, IDEO has been working toward meeting a series of wide-ranging climate commitments.

The report outlined that over the next decade, we need to reduce global emissions by 7.6% annually, a daunting reality that has been reiterated in recent IPCC updates. That means reducing our emissions by over half in less than 8 years. This is one of the most critical challenges of our decade, if not century.

As part of IDEO’s Net Zero strategy, we knew we couldn’t just invest in carbon offsets, we also had to do our part in removing emissions from the atmosphere. In many ways, the pandemic accelerated us toward that path. From 2019 to 2020, our emissions were slashed from ~14,500 t CO2e to ~6,400 t CO2e respectively. But we knew we needed to do more, especially with IDEO’s shift to embracing hybrid working models and their unknown travel-based emissions implications.

In 2021, we implemented three interventions to further reduce our carbon footprint. We switched to renewable energy, incentivized reductions in project-based emissions, and made improvements to our responsible retirement portfolio. Some of these efforts were successful, others less so. We’re eager to share what worked and what didn’t.

Intervention 1: Switching to renewable energy

There are several options for switching to renewable energy, including purchasing rooftop solar grids, participating in community solar programs, purchasing renewable energy credits (RECs), and more.

In evaluating these approaches, we ran into a few setbacks. Since IDEO doesn’t own any of its buildings and each of our studios consume about as much electricity as a couple of big houses, we optimistically hoped that we might be able to sign up for community solar programs across the board. But we quickly learned that community solar wasn’t available for all of our locations. To make matters more complicated, many of our locations didn’t even have the ability to choose their electricity suppliers.

Our next best bet was to either purchase RECs for our global energy consumption, or opt for location-specific solutions. In pursuit of progress over perfection, we purchased 750 MWhr’s of RECs from Bonneville Environmental Foundation to cover energy consumption across all of IDEO’s locations. This not only reduced our carbon footprint by 360 t CO2e, but also meant that effective January 1, 2021, IDEO switched to renewable energy globally.

Looking ahead to 2022 and beyond, we will continue to evaluate and implement the best renewable energy solutions on a local level. To date, we have switched to renewable energy in two locations:

• Chicago: We switched our energy supplier from ComEd and enrolled in community solar through Solstice. Solstice also offers a renewable energy program for employees to mitigate energy impacts from working from home. For every employee that signs up for Solstice’s community solar program, Solstice donates $100 toward their nonprofit arm, Solstice Initiative, to make renewable energy accessible for underserved communities.
• Munich: We switched our energy supply from Stadtwerke München (SWM), Munich's municipal utilities company, to renewable hydropower from Polarstern, a Munich-based renewable energy pioneer and social business promoting the energy transformation in Germany and worldwide.

While it took more time and resources to explore local renewable energy solutions than to purchase RECs, we felt it was important to switch to local alternatives wherever possible.

Intervention 2: Incentivizing reductions in project-based emissions

“But what about the emissions from our project operations?”

In our journey to Net Zero, this question came up time after time. It turns out, over a third of IDEO’s non-wage-based expenses come from project-based expenses like flights, food, prototyping materials, and research incentives. When we estimated IDEO’s carbon footprint, we saw that a significant fraction of our emissions came from everyday decisions made by project teams.

After some digging, we saw that consulting firms similar to IDEO approach emission-reduction incentives differently. Some impose strict travel guidelines, while others set a steep internal price on carbon. The concept of a carbon tax as an incentive was appealing, but would clients go for it? We decided to find out.

Inspired by 1% for the Planet, we started a pilot that added new language about emissions reductions in all of our statements of work. In addition to our standard language about project-based expenses, we added:

Expense invoices will include an additional 1% of all billable expenses to offset greenhouse gas emissions arising from this work.

For a project with $100,000 in expenses, we would add a $1,000 fee to fund carbon offsets. From our preliminary estimates, this would sufficiently cover the emissions from our projects and allow us to purchase ever higher quality emissions over time.

While promising in theory, the execution has been difficult. Of the 33 statements of work signed over the past 6 months, only 4 of them included the 1% fee. In some cases, clients objected to paying for IDEO’s carbon offsets and the language was negotiated out of the contract. In other cases, the language was never included to begin with. Many IDEOers were apprehensive about broaching the topic with clients.

Despite the slow start, we are continuing this pilot so that we can gather more data and design an informed approach to reducing project-based emissions.

Intervention 3: Improving our responsible retirement portfolio

While IDEO will continue to vote with its dollars to reduce our emissions, many of those dollars have their own environmental and social implications. With ESG frameworks and ratings agencies scrambling to answer calls to action from BlackRock and beyond, there are a dizzying number of ways to evaluate responsible investments.

Our third intervention involved scrutinizing our existing 401(k) portfolio. Alongside Fossil Free Funds, a non-profit that grades investments using a variety of social and environmental considerations, we evaluated IDEO’s existing 401(k) and came up with a system—or score—for each of the available funds in our portfolio. We then supplemented this analysis with data from Morningstar Sustainability Rating to provide another perspective on how our investments were, or were not, meeting environmental, social, and governance challenges.

Perhaps not surprisingly, many funds in IDEO’s 401(k) were poorly rated. Our portfolio, like most, is dominated by index and mutual funds that track the market. Since the Fortune 500 account for over a quarter of global greenhouse gas emissions, and only 11% of these organizations are hitting their emissions goals, our portfolio wasn’t tracking in accordance with the climate commitments we’d set.

Our Talent team sprung into action. Together with our Empower Retirement administrators, they identified new funds that we could add to our investment mix. In addition to the Vanguard Social Index Fund that was already in our portfolio, we added two new funds: Calvert Balanced Fund (R6) and Calvert Short Duration Income Fund (R6).

A year later, about 1% of IDEO’s $140m 401(k) assets are in these ESG funds. While this is certainly a move in the right direction, we are continuing to explore how we can improve our responsible retirement portfolio even further.

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More than anything, these three interventions have highlighted an intrinsic dilemma of reducing emissions at scale: distributed behavior change is challenging and incremental. We’re still grappling with questions like: Are we focused on the right things? How might we design better incentives that accelerate emission reduction? How might we incentivize our partners to change alongside us?

But this is a design challenge that cannot wait to be solved. We’d love to learn alongside others and hear how others are tackling behavior change within their firms. Please share your reflections, questions, and insights by getting in touch here!

This article is part of a series detailing IDEO’s journey to becoming Net Zero, the lessons we’ve learned, and our continued commitments to addressing climate change.

In 2019, the UN Environment Programme (UNEP) released an updated climate report reiterating how critical the 2020s will be in curbing wide-ranging and destructive climate impacts.

That was the question that we woke up to from our colleague, EJ Baker, on IDEO’s #climate Slack channel in mid-September. For months, Anna Varnai, Jenny Gottstein, Mike Sakowski, and I had been evaluating potential providers and projects to offset IDEO’s carbon footprint in our journey to becoming Net Zero.

EJ’s inquiry brought us back to a question we had been debating for months: Is it better to invest in voluntary offsets or invest more deeply in reducing emissions? While there are legitimate arguments to be made for each path, we felt that emissions reductions weren’t enough. We urgently need to remove greenhouse gasses from the atmosphere. And since we are driven to design the world we want to live in, we chose to meet in the middle—both reduce our emissions and offset what we are unable to reduce. Despite its limitations, offsetting offers a way to strengthen our climate commitments as we ramp up our emissions reduction efforts.

In principle, voluntary carbon offsets appear simple; in reality, they become complicated very quickly. We reached out to offset providers and offset purchasers to learn about their approach and experiences, but instead of walking away with clarity, we realized that no one had really figured it out yet. Even the experts were still grappling with questions like what types of offsets should be used and when, or whether offsetting is even a credible means of achieving Net Zero.

In search of answers, we set out on a quest—diving into academic literature, researching industry best practices, and following countless startups in the space. We learned about the permanence, additionality, and vintage of an offset and how each relates to the quality of an offset project. We learned about the potential social benefits—from community employment to energy access—that come from different projects. We learned about the entities that verify and certify offset efforts. And, we learned that the more we uncovered, the more questions we had.

Should IDEO invest in high-quality and expensive carbon sequestration solutions aligned with our ambitions for the future? Or should we invest in readily available and affordable nature-based solutions? How much geographical representation should we have? How do we know that our investments won’t go up in smoke? How should we think about the intersection between our offsets, climate justice, and IDEO’s DE&I commitments?

The considerations for what to invest in went on, and the dilemma was paralyzing. On the one hand, we wanted to do it all. On the other hand, we had a finite budget and the clock was ticking. What was the right way to get started?

We contemplated having employees vote and help us pick offset projects. While this approach empowered employees to directly shape our company investments, in an area as complex and opaque as the voluntary carbon market, it would be hard for all participants to have an informed perspective in voting.

We contemplated creating a committee that would select projects based on a set of established needs and values. While simple in practice, we weren’t confident an internal team could navigate the magnitude of the task in a manner that fully represented IDEO, and the inevitable scrutiny that comes from decisions like this.

We contemplated seeking advice from third-party experts, but found that many of them sold offsets themselves, raising all kinds of questions about their motives and whether there was a conflict of interest (even though they were extremely generous with their perspective—thank you!).

We needed to get reasonably smart about this space to make informed decisions.

Enter the Oxford Offsetting Principles, a series of guidelines put together by Eli Mitchell-Larson et al., that outline how offsetting should be approached to achieve Net Zero. Informed by these principles, we were drawn to two start-up offset providers, Lune and Patch. These providers stood apart for several reasons. First, they allowed us to select a broad portfolio of high-quality carbon offset projects. Second, their projects had an international reach. From the get go, we knew we wanted our carbon offsetting efforts to reflect IDEO’s global presence, impact, and responsibility. Both Lune and Patch offered a way for us to do so.

From there, having estimated our carbon footprint at around 4,950 t CO2e for 2021, we intentionally over-offset our emissions by purchasing 5,500 t CO2e.

Based on the Oxford Offsetting Principles, we spread those offsets across:

• Global renewable energy projects for Type I (22.5%)
• Forestry protection projects in Asia and Latin America for Type II (22.5%)
• Methane capture at landfills in the United States for Type III (5%)
• Reforestation projects in Africa and North America and regenerative agriculture projects in the US for Type IV (45%)
• Enhanced weathering projects in Europe for Type V (5%)

Overall, we spent a little over $20 per tonne of CO2e with about 92% of those fees going toward the projects themselves. (You can see a visual breakdown of our project bundles with Lune, here.)

Are we confident that our offset strategy is the gold standard? Not quite. But we do feel confident in our approach, and as the voluntary carbon market matures, we will continue to iterate alongside it. We’ve learned that climate action, like design, requires us to get started with curiosity and humility. It demands a learning mindset that seeks progress over perfection.

To those who have purchased or are considering purchasing offsets of your own, we’d love to hear about your approach and what you’re learning.

This article is part of a series detailing IDEO’s journey to becoming Net Zero, the lessons we’ve learned, and our continued commitments to addressing climate change.

“Genuine question: are offsets a useful thing?”

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.

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.

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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 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.

Most AI products today are built for work—a space with clear problems and established systems. One founder noticed a gap: personal life is messier, harder to systematize, and mostly left behind by the AI boom. So she built Cue, a personal AI that lives inside iMessage and group chats, to go where the other tools haven't.

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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.

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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.

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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.

Most personal financial tools are built to run the numbers and optimize towards a budget. While that works for some, most people experience money as a lived relationship that does not neatly fit into a spreadsheet. Johannes Seemann and Becca Carroll discuss why money is emotional before it is mathematical, and what a human-centered approach to building a generative AI financial product looks like in practice.

Mina Seetharaman talks with Scott Shigeoka, author of Seek and Head of Curiosity Cultivation at the Eames Institute, about what distinguishes genuinely curious leadership from performative curiosity, how power dynamics shape curiosity, and why practicing curiosity can restore energy rather than drain it.

Mina Seetharaman talks with David Epstein, author of Inside the Box and Range, about why total freedom often produces average work, how leaders can design useful limits on purpose, and what organizations such as General Magic and Pixar reveal about the relationship between boundaries and creativity.