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A leading food company’s human-centered transformation spurs rapid growth

How The J.M. Smucker Company embraced customer centricity to build a culture of innovation.

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Over more than a century of leadership in the food and beverage industry, The J.M Smucker Company has expanded its range of products to maintain its relevance and address market demand. Today, the company leads numerous categories, with beloved products like Jif, Milk-Bone, and Folgers, which are the top choices of millions of Americans. By growing and diversifying their brands over the decades, Smucker has successfully weathered major shifts in consumer habits and technology. Today, though, CPG companies are experiencing unprecedented disruption, and leaders at Smucker understand that the escalating pace of change will require more than just new products.

Geoff Tanner, Senior Vice President, Growth & Consumer Engagement at The J.M. Smucker Company recognized the need to identify new market opportunities and establish practices that put innovation and growth at the heart of their business. And he saw the potential to bring those goals to life through his relationship with IDEO.

WATCH: Balancing innovation and efficiency through design has helped Geoff Tanner, Senior Vice President, Growth & Consumer Engagement at The J.M. Smucker Company, brave the unfamiliar, transform organizations, and ultimately bring game-changing ideas to market faster.

Geoff has stewarded a close partnership with IDEO for over a decade and throughout roles at numerous organizations. Together, Geoff and IDEO have worked on 25 projects, beginning while Geoff was VP of Marketing at Big Heart Pet Brands, and continuing on throughout his career at The J.M. Smucker Company. By working with IDEO to adopt a design thinking approach, Geoff has enabled collaboration across teams and empowered his organizations to find new ways of working that result in measurable business impact. For The J.M. Smucker Company, the partnership has brought creativity and human-centered design to the forefront of its operations, strengthening its ability to bring new products and brands to market and create a pipeline of growth.

WATCH: The J.M. Smucker Company has shifted to embrace growth and innovation as a mindset throughout the organization to bring more consistency to the innovation process.

Looking to the past to creatively connect with the future

As an example of this, Geoff and The J.M. Smucker Company suggested to IDEO that they explore how Folgers, America’s leading at-home coffee brand, might resonate more deeply with a millennial audience. Design research revealed that the mindset of today’s millennial coffee drinkers aligned with Folgers entrepreneurial brand roots. The teams collaborated to create a new concept: a brand called 1850 and an end-to-end, go-to-market product experience, including packaging, retail, and merchandise. 1850 hit shelves in 2018 and has since been reported by IRI Advantage as the top launch in the Coffee Category for 2019.

Inspired by the heritage and history of Folgers, the 1850 brand launched as a comprehensive product experience that would resonate with a younger audience.
Frankly, I don’t think innovation gets any easier. You just get a little more comfortable with the discomfort, and that’s when the work starts to get consistently better.
Geoff Tanner, Senior Vice President, Growth & Consumer Engagement, The J.M. Smucker Company

Creating an innovation pipeline that’s inspired by consumers’ needs

With 1850 underway, Geoff and The J.M. Smucker Company continued to invest in human-centered design to drive new offerings. The next collaboration with IDEO explored how Jif, the iconic peanut butter brand, could extend beyond the jar and become more readily accessible and appealing to busy parents who want to feel confident about the snacks they give their kids.

The design team was moved by the challenges that parents face: They want the best for their kids, but struggle to choose between what’s wholesome and what’s convenient on a daily basis. The ideal foods are filling, nutritious, and energizing, but often take more time to prepare and aren’t backpack or carpool-friendly. On the other hand, more convenient options tend to be full of empty carbs. Based on this insight, IDEO and Jif decided to tackle the snack-time parenting struggle. The IDEO and Jif teams worked side-by-side to prototype multiple product ideas and formats and tested them with on-the-go families to ultimately create Power Ups.

Available at over 200 retailers worldwide and online at Amazon, Jif Power Ups make wholesome, delicious grab-and-go snacking possible for kids and parents alike, across products ranging from Soft Baked Bars to Creamy Clusters, which are filled with peanut butter and rolled in whole grain oats. All are made with peanuts as the first ingredient and contain no high fructose corn syrup. Since going to market in 2018, Jif Power Ups has been named the top innovation launch in the Snack Bars category by IRI Market Advantage.

Moved by the challenges that busy parents face, the teams created Jif Power Ups— wholesome and delicious grab-and-go snacks that are now available at over 200 retailers worldwide.
Design thinking underpins everything we do.
Geoff Tanner, Senior Vice President & Corporate Officer, Growth & Consumer Engagement, The J.M. Smucker Company

WATCH: The J.M. Smucker Company is on a transformational journey, committed to three pillars of growth: Lead in the best categories, build brands consumers love, and be everywhere.

The J.M. Smucker Company has experienced accelerated growth and speed to market by testing bold new ideas and evolving the role of innovation at the company. Design thinking and consumer empathy have permeated the organization’s new product development process, making it easier to uncover sharp, human-centered insights that lead to thoughtful and uniquely differentiated brands in a competitive, ever-shifting, and overcrowded industry. The work has fueled Geoff’s vision to inspire a culture of innovation at the company so that it can move at the speed of consumers and remain a best-in-class family of brands for future generations.

The J.M. Smucker Company
The J.M. Smucker Company
A leading food company’s human-centered transformation spurs rapid growth, The J.M. Smucker Company, food innovation, food and beverage, growth strategy, business growth, scaling innovation, business transformation, organizational transformation, culture change, human centered design, design thinking, customer centricity, food experience, food systems, future of food, innovation strategy, business innovation, design innovation, how to innovate, understanding user needs, innovation, strategy, research, prototyping, product development, new product development, transformation, leadership

Creating a fresh, modern take on the Indian culinary experience

Designing a scalable restaurant, retail, and packaging experience that highlights the diversity of regional Indian foods.

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Food

It’s a Thursday afternoon in Oakland, California. A line of lunchtime diners snakes out the door of dosa by DOSA. Upon entering, eaters are greeted by the smell of tangy dosa—a large paper-thin crepe made from a fermented batter of rice and lentils—and sweet, spicy chai. Turquoise chairs pop against a floor-to-ceiling mural by Oakland artist Namita Kapoor that transports diners to Chandni Chowk, one of the busiest markets in Old Delhi, as if enjoying their food at a local vendor.

In 2003, Emily and Anjan Mitra spent their honeymoon in India, savoring the street food of Anjan’s childhood in Mumbai (often still called Bombay). After returning to San Francisco, they found themselves longing for those distinctive flavors and dishes. Realizing that most Bay Area diners had never seen nor tasted these foods, Emily and Anjan founded DOSA, an upscale, full-service restaurant that introduced the Bay Area to Southern Indian cuisine. Locals came to try the unique, plant-forward dishes, and left with satisfied bellies and a broader understanding of Indian culture.

The entrepreneurs envisioned a brand extension of DOSA: a counter-service restaurant that could scale nationally. The hospitality venture, called dosa by DOSA, would offer healthful Indian street food made from local and seasonal ingredients. Emily and Anjan also set out to expand their existing product line-up—including cold lassi beverages, simmering sauces, and grab-and-go-meals—to national grocers and retailers and needed launch-ready packaging that was convenient, eye-catching, and environmentally-friendly. The new expression would enable consumers to experience dosa by DOSA and Southern India in a variety of forms and places. Emily and Anjan partnered with IDEO to establish a cohesive and consistent brand experience, from the restaurant and to-go meals to retail stores and mobile delivery.

Small but intentional design details like the central communal table and colorful decor represent the social nature of street food and vivid urban environment of Southern India.

In close partnership with the founders, their staff, Feldman Architecture and MPADA, IDEO set out to bring dosa by DOSA to life and help it scale through brand, environment, and experience design. This included creating everything from the logo and packaging to the menu and operations strategy, with each element tying back to the founders’ vision of sharing Indian heritage and traditions through cuisine.

The group began by seeking cultural inspiration for dosa by DOSA’s brand identity system—the logo, colors, values, fonts, and messaging—to guide future designs. They were inspired by Indian truck drivers who decorate their trucks with garlands, signs, or flags that engage other drivers or bring luck. The dosa by DOSA logo design and its wood-cut typeface are inspired by the dimensionality of this homespun art form, while the vibrant, eclectic colors reflect the streets and textures of urban Mumbai.

The goal of opening people’s minds to Indian cooking and culture extends to the packaging, which meets customers’ needs and playfully educates them. The food containers—made from recycled and compostable material—feature brightly patterned labels reminiscent of the trucks. Some have built-in compartments suited to multiple dipping chutneys, making it convenient to sample a variety of Indian flavors. Paper tray covers resembling Mumbai newspapers offer eating tips like “Be civilized. Eat with your hands,” encouraging diners to experience an Indian custom.

The vibrant brand comes to life across an array of packaging, including cold cups printed with the phrase “thanda thanda pani”—meaning “cold cold water”—which comes from a popular Indian parody of the Vanilla Ice song "Ice Ice Baby."

To design the diner experience and restaurant environment in a way that invites curiosity about the culture and cuisine, the team started with diners: They identified key moments in their experience like entering, waiting in line, and paying. The floor plan, furniture, lighting, signage, and menu were designed around these touchpoints. For example, while customers wait in line, they can watch dosa being prepared, as if they’re eager and hungry travelers awaiting street food.

Diners get a taste of Southern India through cocktails crafted with saffron bitters and star anise, chilled cardamom mango lassis, and dosa stuffed with butter chicken and masala potatoes.

The dosa by DOSA menu includes distinctive items like coconut kale mung bean salad and hot masala chai made with caramelized milk—the way Anjan’s mother prepared it. To help the restaurant scale, the team created a preliminary furniture, fixtures, and equipment (FF&E) budget, 3D renderings of the space, and an operations strategy for the founders and their employees.

The dosa by DOSA flagship launched in January 2018 in Oakland, California. The IDEO brand guidelines have enabled the dosa by DOSA team to independently and easily shepherd new product lines to market, including salads, wraps, curry bowls, samosas, and simmer sauces. The brand’s packaged food launched in over 200 natural food stores in 24 months—including over 100 Whole Foods locations—as well as online retailers and delivery services like Good Eggs and Caviar. These items and the restaurant have helped Emily and Anjan realize their vision of bringing the flavor and spirit of Southern Indian cuisine to new communities around the world.

DOSA
DOSA
Creating a fresh, modern take on the Indian culinary experience, restaurant experience, restaurant innovation, DOSA, food innovation, food and beverage, packaging design, product packaging, packaging innovation, retail experience, store of the future, consumer experience, food experience, food systems, future of food, innovation, strategy, entrepreneurship, retail, brand experience

Revitalizing Japan’s food industry through design and software

Redefining the “middleman” role of produce wholesalers in Japan.

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Technology

In recent years, due to shifts in Japan’s demographics, the food industry has faced challenges such as a decrease in market size and a shrinking number of producers. As a result, social impact opportunities abound in this field.

When Japanese software company NJC (Nippon Jimuki Co. Ltd.) approached IDEO seeking to identify new business opportunities that would build on the company’s core strengths, the food and agriculture industry rose up as a promising area of focus.

NJC is a well-established software company that has spent over 50 years helping to build backend business systems for small to medium enterprises. NJC works across healthcare, retail, and food and beverage, computerizing core processes to support and improve operations.

In partnership with IDEO, NJC explored its strengths and potential as an organization, as well as the ideas and visions of the employees, and emerged with the goal of using their capabilities to address large-scale issues facing regional farmers.

During research across Japan, local growers described challenges with multi-layered supply chains and analog systems, which led to “overwork for minimal profit,” as well as a gap between supply and demand. Because agricultural wholesalers lacked clear information in advance on the status of crops or the volume to be harvested, they struggled to negotiate with buyers, which led to wasted food On the other hand, the farmers who grow the crops are engaged in manual labor, and do not always have the energy to focus on business aspects such as efficiency or the pursuit of increased profitability, which leads to a diminished interest in farming among young people.

One president of a produce wholesale business made frequent visits to farms, checking on the status of crops and estimating the shipment volume. The team identified the relationship between wholesalers and farmers, who haven’t shifted much toward computerized systems, as an opportunity.

One question that emerged through research was why agricultural producers weren’t utilizing IT. This evolved into “How can profitability be improved for all stakeholders?” and, “How might we create a system that will provide useful data without creating a burden for either farmers or agricultural wholesalers?”

The result was fudoloop.

fudoloop is an app that enables farmers and wholesalers to conduct business more profitably by bringing transparency to the fluctuating produce market. Through fudoloop, wholesalers receive information from farmers a day in advance, and can coordinate the various requests of buyers, such as order size, production location and other special requests. As a result, wholesalers can function as “community managers,” doing business with both producers and buyers at a more appropriate price point.

To test the initial concept, the fudoloop team set up a booth at a large-scale agricultural trade show. Industry participants were asked to test the system, providing effective feedback that helped streamline the focus of the project and allowing the team to identify latent markets.

NJC aims for fudoloop to be the first step in a cycle that brings value to all stakeholders, from farmers to wholesalers, retailers and even customers, by redefining the “middleman” role of produce wholesalers.

Nippon Jimuki Co. Ltd.
Nippon Jimuki Co. Ltd.
Revitalizing Japan’s food industry through design and software, Nippon Jimuki Co. Ltd, food innovation, food and beverage, technology innovation, digital products, digital transformation, digital experience, digital product design, UX design, food experience, food systems, future of food, how to design a digital product, innovation, product design, research, transformation, healthcare, retail, social impact

Designing a new digital experience for a world-renowned Japanese railway

A new, human-centered wayfinding app for one of Japan's biggest railways.

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The population of Tokyo’s metropolitan area is twice as big as New York, and the daily influx of workers from the suburbs increases that number sixfold. Congestion on trains traveling through the center of Tokyo during commuting hours is said to reach somewhere close to 200 percent of the trains’ capacity.

East Japan Railway Company (known as JR East) is the world’s largest railway company by revenue, operating 12,000 trains daily and serving 6.4 billion passengers per year.

In March 2014, JR East leveraged their extensive operations and passenger data to publish a consumer app that provided train location information, congestion status, air conditioning temperature, and wayfinding tools.

The app was downloaded more than 3.8 million times; however, its features and usability proved unsatisfactory to users. In an attempt to be comprehensive in addressing passenger needs, the app was weighed down with data and worked sluggishly. Competitors’ apps were named above JR East in customer satisfaction surveys, highlighting the company’s need to address the tool’s usability.

JR East’s Technical Division approached IDEO to help design an attractive and consistent user-centered experience through its digital ecosystem. With a team of interaction designers, they launched a project to create a new version of their app.

During the research phase, the IDEO team observed passengers’ behaviors and decision-making processes and noticed that people were using several apps at once to get more personalized and complete information.

The team created a set of paper-based prototypes to test how users would react to various functionalities. Surprisingly, users ranked versions with limited functionalities higher than those with a broad range of features.

This insight informed a new prototype that enabled a customized user experience based on traveler needs. Wayfinding proved to be the most frequently selected feature, so the new app was designed around helping passenger navigate during their trips.

Although JR East had traditionally outsourced their app development, IDEO encouraged them to organize their own internal team. In cooperation with Pivotal—a frequent IDEO partner familiar with human-centered approaches—the internal team was trained in agile development and built the new app themselves. A prototype was released in November 2017 as “Go! by Train.” It was so successful in the market that the earlier JR East app was replaced entirely with the content of the new design.

JR East's internal development team was recognized by the company for their exceptional output, and will be integral to the company's human-centered digital transformation going forward.

JR East
JR East
Designing a new digital experience for a world-renowned Japanese railway, JR East, public sector innovation, government services, civic innovation, technology innovation, digital products, digital transformation, digital experience, digital product design, UX design, human centered design, design thinking, customer centricity, how to design a digital product, innovation, user experience, product design, research, prototyping, transformation, decision making, government

The Rules of Brainstorming Change When Artificial Intelligence Gets Involved. Here’s How.

Recent advances in machine learning have created a new catalyst for design

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My “partner” that day was a technology called GPT-3 from OpenAI. You may have heard of it already; if not, you can think of GPT-3 as a really good autocomplete. Like, shockingly good. Once I shared some of the output of my brainstorm with others on Slack, there were plenty of 🤯reactions—and honestly, our minds are still blown. But clients and design teams will need to tread carefully and watch their ethical compass as they imagine inspiring, human-centered applications for this new tool. As with any new technology, there are new risks to account for. Here's how I started my experimentation.

How to run a virtual brainstorm

In order to work with a so-called “transformer model” such as GPT-3, you feed it a pre-written prompt, then the model uses everything it's seen before (in this case, a substantial portion of the internet) to guess what should come next.

I wrote some context: This is an IDEO brainstorm, which follows our 7 Rules of Brainstorming, including “encourage wild ideas.” I gave GPT-3 a real client challenge from a past project: The team is developing a new app for a bank to encourage millennials to better utilize savings accounts. Then I wrote a brainstorm prompt: How might we help young people turn saving money into a lifelong habit?—and fed it five example ideas.

As soon as I pressed submit, the model began churning out new ideas. Not all of them were gold, but many were perfectly good brainstorm concepts. After all, the rules also tell us to “defer judgment” and “go for quantity.” Without cherry-picking too much, here's a sample of some of the ideas it generated:

  • Allow the user to share their saving goals with friends and have a community of people who will cheer them on or challenge them if necessary
  • Reward the user with real money if they don't spend money at all in a month
  • Allow the user to set up “fun budgets” (aka “triggers”) to save more money, e.g. whenever they go to Target, they'd get a pop-up asking if they'd like to put $5 towards savings
  • Similar to the Future View idea, show how much more could be saved if the user decides to forgo a coffee every day or splurge on new sneakers instead of taking an extra vacation

In the last example, you can even see the model “build on the ideas of others”—another rule of brainstorming—by riffing on an idea called Future View that I had given in the prompt.

This stuff is on par or better than some of what I've seen from humans. Some [of it] is worse, too. But that anything is better is wild.
An IDEO Director on GPT-3's brainstorming output. Watch out, humans.

Another colleague suggested we tweak the prompt we gave GPT-3 to encourage it to use analogous inspiration, which primed the model to produce some truly wild ideas:

  • Have “clowns” jump out of ATM's, making it less fun to withdraw money
  • Create a virtual reality experience where users are in an arena full of savings monsters, and need to slay them by depositing money into savings
  • Create a “Savings Monster” similar to those featured on Chinese lottery shows where viewers have to guess the amount saved in order to win money

“I'd love to know what a Savings Monster is,” I mused on Slack, and a colleague responded, “Why don't you ask it?” Of course! After the brainstorm, I started a Q&A session with the model (my prompt is in bold):

Q: Quick question: What exactly is a savings monster? You mentioned it twice.

A: I'm glad you asked! This was just an idea that emerged from the brainstorm. A savings monster is a physical manifestation of your savings goal. For example, let's say I want to save $500 by the end of next year. If I deposit $10 every day, that will get me pretty close to my goal at the end of the year, but what happens if one day I don't have $10? Now my savings monster is underfed, and he starts to throw a tantrum (eg. negative cash flow notification).

A: Yes, this is an idea inspired by Chinese lottery shows (and World War Z). We thought it might be fun for users to have a physical manifestation of their goals that they could feed (ie. save more money) when they meet their goals, and starve (ie. spend more money) when they fall short. In order for this idea to work however, the savings monster would have to be very cute, and a bit terrifying.

As it turns out, the model doesn't skip a beat when you change up the input’s format. So I decided to try my luck: In my next prompt, I asked GPT-3 to choose its favorite idea from the brainstorm and create a script for a promo video. Thankfully my virtual brainstorm partner selected the Savings Monster concept. The resulting script was so good that I found an animator to bring it to life.

So what is this good for?

As exciting as this technology is, GPT-3 is not Artificial General Intelligence, and it was interesting to find the edges of its abilities. For example, this model can easily summarize a news article, or turn it into a fairy tale. But it's surprisingly difficult to get it to remove references to a specific person, or change the subject of a certain paragraph.

To put this in human-centered design terms, these large transformers are an extremely valuable way to augment the team during divergent moments in a project, when we're creating choices. The tech struggles, however, in convergent moments, when we're making choices. Thankfully, humans are still required to synthesize massive amounts of information about human needs into concrete human-centered design decisions.

Gotchas

There are two other issues we have to confront when considering transformer models for our prototypes and design recommendations: toxicity and bias. These models are trained on big chunks of the internet, and optimized to produce output that looks like the input. The result is that the model can reproduce the language of a scientific paper just as easily as it can mimic an internet troll. You get the good with the bad.

My experiments sparked a conversation with Jess Freaner, an IDEO Data Scientist with a special interest in ethics and AI. “Though the rules governing how it all works might not be explicitly written on the wall,” Jess told me, “being a product of our world as it exists now and in our past (the internet is an excellent, incomplete archive) we need to consider what GPT-3 reinforces and when it can reveal what needs to be subverted about society.”

Problems with toxicity and bias are not unique to GPT-3. OpenAI is working on both—they have built-in tools to manually and automatically flag output as toxic. They’re also working on the issue of bias, but it’s a thornier problem. These models literally encode a snapshot in time, and are inherently biased to reproduce the status quo. Companies and designers will need to question and problematize the output of these models with the same rigor that we are learning to bring to our human interactions.

Future possibilities

Despite the challenges, it's clear that in the past 12 months, natural language models have crossed an invisible threshold of usefulness, in the same way that speech recognition was frustratingly terrible for decades—until one day it wasn't. Early proof of concept prototypes demonstrate how this type of model can transform a description of an interface into functional UI code. Talk about “declarative programming.” Imagine a future in which the job of a UI designer is to write a description of the interface rather than laying out each button and label by hand. The same description might result in totally different visual expressions or interactions depending on the individual user's needs, interests, or current context.

As transformer models improve, I'm inspired by a future where people are literally in conversation with their software. Users might be able to easily adapt the same app to become a widget in their AR glasses, a quirky voice assistant, or an animated character. Because who knows: for some people, the perfect solution just might be a Savings Monster.

Illustrations by Katie Kirk

Back in early August, I opened my laptop and kicked off a remote brainstorm. Immediately, my partner started generating a huge number of ideas—a perfect blend of wild, hilarious ideas and pragmatic solutions. That's not unusual at IDEO, but what made it remarkable is that my partner wasn't just remote—it wasn’t human at all.

Technology
AI & Emerging Tech
the rules of brainstorming change when artificial intelligence gets involved here's how, technology, digital innovation, ai, emerging technology, artificial intelligence, ai strategy, learning, ideation, brainstorming, creativity

2020 Didn’t Go as Planned, but 2021 Is Coming Anyway

Here’s a tool to bring imagination to your annual planning process

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In 2020, everything has been turned upside-down, and all budgets are starting from scratch. Planning for the coming year will be more ambiguous and uncertain than ever. It’s time to ditch the carry-over mindset, which can’t solve the complex and often competing challenges faced by business leaders today. What we need now is to broaden our perspectives and use imagination to project into the future.

Back in the spring, when it became clear that coronavirus would reshape the entire world in short order, we began tracking principles to help us focus on understanding context as it evolves, having a clear vision for successful recovery, rebuilding for resilience, and designing through collaboration.

As we spoke to clients and business leaders within and outside of IDEO, we saw the opportunity to develop a tool that would help leaders plan with imagination for the tumultuous road ahead. We were inspired by the Early Recovery principles used by the United Nations to respond to crises or natural disasters. Early Recovery helps people and societies "build resilience and establish a sustainable process of recovery from crisis."

We’ve adapted this concept into a framework for organizations to use in planning the coming 12 months. The Build Back Bolder canvas offers a simple template for reflection, and a series of short exercises designed to help set strategic priorities and initiatives, and to uncover opportunities for growth and impact in the midst of fluctuating conditions. Build Back Bolder is a straightforward, two-page tool that business leaders can run alongside their own planning processes. It can help leaders and teams make sense of the present, get out of analysis-paralysis, and move towards action. Simply put, the Build Back Bolder canvas helps you think, and that helps you plan.

Circumstances don’t get much more ambiguous and uncertain than the ones we’re living through now. In moments of crisis, when markets are redefined, imagination rarely leads the day. But this instability calls for a more varied and experimental suite of tools. Change is inevitable, but using imagination is not. By choosing an imaginative approach, we can plan for a more resilient, bold, and sustainable 2021.

Download the Building Back a Bolder 2021 tool here.

Illustration by Charlota Blunarova

In typical years, there’s a continuity to the annual planning process. Changes are incremental. Many budgets that were approved the previous year are simply carried over. Not so this year.

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2020 didn't go as planned but 2021 is coming anyway

Capitalism Needs a Redesign, but Where Do We Start?

Leaders share what they're doing to address systemic challenges

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To fix big, systemic problems like inequality and climate change, many called for rethinking how companies generate value and who they generate it for—from shareholders, employees, and customers to partners and the planet itself. This wasn’t just a moral argument that business ought to “do the right thing.” The movement was anchored in an existential understanding that radical forces are changing not just the rules of the game for business, but the game itself.

The multilayered crises we face today offer a powerful moment of reckoning for purpose-led businesses and leaders: will we make good on this rallying cry for a reimagined capitalism or not? The pandemic put stakeholder capitalism to the test: a report funded by the Ford Foundation found that companies that had signed on to the “Statement on the Purpose of a Corporation” fared no better than other top companies in prioritizing worker rights. Though there is clearly the opportunity and will to rethink the purpose of business to address systemic problems, the way forward is often less apparent. Understanding where to begin can help us realize the more equitable promise of stakeholder capitalism.

I’ve long been curious about how forward-looking companies have jumped over this hurdle, so I’ve spent this year learning from dozens of movers and shakers already in the thick of tackling systemic changes, from professors and CEOs to founders and non-profit presidents working across sectors and industries. They’ve shared with me the first steps that helped them break the initial inertia of business-as-usual—and, importantly, the mindsets they’ve adopted to sustain new kinds of activity. I hope their wisdom will be as inspiring for you as it has been for me.

First steps

Set bold targets and innovate your way to reaching them
Even if they don’t know where to start, the changemakers I’ve talked with have put a stake in the ground and set bold targets. But they don’t rely on a big PR splash and then move on: alongside these bold goals is a commitment to a process of brave experimentation and innovation.

The Swedish furniture retailer IKEA, for example, has committed to becoming a fully circular company—one that is restorative and regenerative by design—by 2030. To make good on this future, they’ve invested in a range of experiments, prototyping smaller-format shops in city centers that rely on fewer resources, electric vehicles for home delivery, new products like home solar systems, and buyback and rental programs to reduce waste, among others. Taken together, these many activities are moving IKEA closer to their ambitious goal. But they’ve also enabled fast learning and iteration, so that when the company chooses to scale any of these solutions they have the greatest impact for their investment.

From this example and others, a common method is emerging for how companies can use their scale to unlock change at a systems level: commit boldly to an outcome, design a number of experiments, learn and iterate quickly, and scale what works. Spoiler alert: It’s not going to be one thing.

Create a coalition of partners around a tipping-point problem
From homelessness to climate injustice, our challenges demand unprecedented collaboration across sectors. The UN Sustainable Development Goals provide a powerful framework to rally around, but there are other emerging partnership models that leverage the capital investment, innovation muscle, and ability to scale that corporate partners often uniquely bring to the table.

Take the NextGen Consortium, for example. Managed by Closed Loop Partners and powered by OpenIDEO, some of the most powerful food and beverage companies (including Starbucks, McDonald’s, Wendy’s, the Coca-Cola Company, Yum! Brands, Nestlé, and WWF) are collaborating to create a new cup that will curb the 250 billion fiber cups piling up in landfills each year. The approach of this coalition has been to enable many breakthrough solutions, working directly with founders and stakeholders in the system, to take root in the market.

There are many other examples of convenings—whether official or unofficial—and the power of rallying partners around a shared challenge. Founded by Sam Polk, Everytable is on a mission to bring healthy, affordable food to communities that do not have readily available options. Polk grew Everytable to eight locations and delivered 160,000 meals just a few weeks after launching. Through a philanthropic initiative led by the California government, Everytable partnered with a hotel offering shelter and protection to the homeless during COVID to provide food, eventually facilitating additional partnerships with elder care homes. Everytable is now on track to deliver a million and a half meals, and they’ve added jobs along the way. As Jacqueline Novogratz, CEO of Acumen, shared with me, this is an example of business, government, philanthropy, and individual volunteers, leaders, and donors uniting and busting siloes to address hunger.

Define key performance indicators (KPIs) for stakeholder groups
Despite its recent buzziness, the stakeholder perspective—a fundamental commitment to all stakeholders, including customers, employees, suppliers, communities, and shareholders—is not a new idea. Many companies already consider multiple stakeholder interests in their decision-making. But the problem with stakeholder capitalism as it exists today is that it doesn’t offer a clear compass for how to make decisions in complex scenarios where win-win outcomes for all parties are rarely possible. This brings us to the elephant in the room: not all stakeholders are created equal. Leaders are often forced to pick favorites, and at the end of the day, we know who will always win.

To address this, companies like Airbnb are beginning to hold themselves accountable to new stakeholder-centric metrics. Airbnb sees their stakeholder community as made up of guests, hosts, communities, shareholders, and employees. Their design challenge—Rob Chestnut, Airbnb’s Chief Ethics Officer, told me—was to create a company that measures itself against the value it creates for each. Airbnb began by listening to these groups, establishing principles and metrics reflecting the needs of each. For example, they have committed to treating hosts like partners, and measure their delivery of this through survey data evaluating hosts’ satisfaction and earnings over time, among other things. Airbnb reports their progress and continues to update their corporate governance and compensation to reflect delivery against these KPIs.

This approach isn’t perfect. But doing the work of measuring the value you create with and for stakeholders and institutionalizing accountabilities for delivering that value is certainly a step in the right direction.

New mindsets

Allies over heroes
When it comes to business’ role in the big problems society faces, they are often cast as either heroes or villains. Some see capitalism as society’s savior, especially when governments have seemingly abdicated their responsibility to serve citizens’ best interests. Others see capitalism as society’s villain, the cause of many of its major problems like climate change and inequality.

The leaders I’ve interviewed reframe the discourse entirely. They know that systems change requires bringing together key actors—local communities, nonprofits, governments, businesses, donors, and others—to address unjust systems and solve social problems at scale. So, they see their organizations as meaningful allies in the work of change-making, adopting a partnership-as-leadership approach to their engagement in these issues.

“Greyston’s founder Bernie literally started pulling people off the streets to work for a small cake-baking business he had started to address the problems he saw in Southwest Yonkers...Just as the bakery started growing, [Greyston’s founder] Bernie met two guys named Ben and Jerry. Our relationship with Ben & Jerry’s started out as a serendipitous one, but it’s held steadfast as a strong partnership over the years and has enabled us to employ more folks who would normally be deemed excludable, non-employable.”
—Joseph Kenner, President and CEO, Greyston Bakery

“Cooperation among investors is a key to this progress. More than a third of the world’s invested capital—about $19 trillion—is controlled by the world’s hundred largest asset owners…In principle these investors have enormous power to move the entire economy in more sustainable directions. All they have to do is find a way to cooperate...The rumor is that they look at each other and say, “You go first.”
—Rebecca Henderson, Professor, Harvard Business School and author of Reimagining Capitalism in a World on Fire

Gardeners over architects
As the pandemic unevenly distributes pain and suffering across our society, it’s ever more clear: true systemic change requires a shift in power. That means that a top-down approach to change just won’t work to produce the equitable outcomes we need. We need new voices with new ideas to reimagine our economic system. Personally, I’m inspired by the small business owners who have reimagined the role businesses might play in neighborhoods through creative pivoting—like restaurants now offering CSA boxes and large family meals while their dining rooms are closed. Or Black communities that were forced to develop regenerative economic strategies decades ago, long before these concepts penetrated white-dominated corporate worlds.

These are the imagineers of a more resilient, inclusive, and sustainable society for everyone, and the leaders I’ve learned from believe this, too. Their job, as they see it, is to find the seeds of ideas and nurture them. They play the role of gardener, but instead of a green thumb they have a green ear, tuned to listen and learn.

“We were open to new ideas from anywhere and created new mechanisms to source them. Part of our mantra was the conviction that all the good thinking doesn't come only from people sitting on Fifth Avenue in New York City. We ran competitions, we did global innovation challenges, and we learned a lot from what was going on on the ground.”
—Judith Rodin, Former President, The Rockefeller Foundation

“Purpose is obviously about how a company acts, but it’s also about how they listen.”
—Maryam Banikarim, Chief Marketing Officer, Nextdoor

“And so it's going to be up to the rest of us in the conversation to hold those people’s feet to the fire—to make sure that as we are reimagining capitalism we are reimagining it to actually work for all. And part of that is by creating systems that are actually inclusive and equitable and regenerative because only those things will dismantle a version of capitalism that is just for the elite.”
—Andrew Kassoy, Co-founder and Global CEO, B Lab

An audacious question over an assumption about the answer
Rather than start with an assumption about the right solution, these leaders begin with an audacious question. What, for example, would it look like to be a fully carbon neutral company by 2030, asks IKEA? Melinda Gates’ Pivotal Ventures asks what would a future look like if women’s power and influence was equal to that of men?

By starting with a question instead of an answer, these individuals are searching for far more imaginative solutions. This is how radical breakthroughs happen.

“Business has a huge role to play in designing our future. They can do this by first, stepping back and asking, what are the problems that need to be solved? And how can we make that the purpose of our business? Start with that problem. Then, look at the different stakeholders you engage with and rethink how we might come together around that problem...This is moral imagination—the humility to see the world as it is and the audacity to imagine what it could be.”
—Jacqueline Novogratz, Acumen’s CEO

“For the big briefs we face, we need questions that open up new possibility. We don't need the obvious questions — we’ve got plenty of those. We need questions that reframe how we think about some of these systems, ones that change our perspective.”
—Tim Brown, Chair and former CEO, IDEO

The work of changing systems is hard. Taking any of these first steps might require you to flex new muscles, fit yourself into a mold that isn’t quite perfect, or develop new collaborations that might not go seamlessly. Likewise, adopting any of these mindsets might clash with your business-as-usual culture and process. It’s not for the faint of heart. And yet, we can’t move forward—on equity, on the environment, on social cohesion—unless we roll up our sleeves, start redesigning our organizations, and make room for the voices most affected by these systems. So let’s take some first steps, and prototype them together to help push this work forward.

Before the coronavirus pandemic, the promise of a reimagined purpose for business—one that serves a diverse set of stakeholders and society more broadly—had bubbled into mainstream industry discourse. From boardrooms to business schools, a growing chorus argued that our economic system is not only unable to respond to the world’s most urgent challenges, but has excluded many people from the prosperity capitalism promises.

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capitalism needs a redesign but where do we start, leadership, education, learning

The 3 Unexpected Secrets for Finding Common Ground Between Strangers

Looking to make a new friend? Try not telling them your name.

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Well, not complete strangers. They had shared an unusual experience, designed by IDEO, over the previous five weeks: The Department of Super Secrets.

When COVID-19 shut down elementary school buildings, it shut down opportunities for young students to build soft skills like empathy. It also severed personal contact between seniors and other human beings, leaving many confined and lonely.

Alongside teachers and students at Mineola Union Free School District in Mineola, New York, IDEO took on a project to design a program that would help 4th graders build empathy by connecting idle students with isolated seniors. We thought it would be a simple, playful opportunity, but in the end, we found a powerful tool for connection that might be scaled to bridge any number of social divides.

What’s the key? Well, that’s a secret.

Connections grown in isolation

The IDEO team decided that instead of trying to compensate for the limitations of quarantine, we would embrace those constraints and make them the centerpiece of the experience.

People can’t meet face-to-face? Perfect. We’ll beat quarantine at its own game. Neither partner will know anything about the other. No names, no ages. They’d have no clue about the other’s most basic biographical information, like age, race, gender; instead, this would simply be two human beings building a connection by sharing stories of their hopes and fears. A relationship built on meaning rather than appearance.

Thus, the Department of Super Secrets was born—an IDEO twist on the pen-pal relationship. Our heroes picked secret super aliases and we paired them up: one student with one senior citizen. Over five weeks, the partners were prompted to share five specific secrets designed to be low stakes, but highly personal, carefully crafted to spotlight character, values, and feelings. This was a delicate tightrope walk, asking them to offer up something meaningful without being invasive or uncomfortable. We designed the prompts to build on each other, gently establishing a bond through vulnerability and reflection.

Every secret was shared in two ways, with words and images. We wanted the partners to spend energy reflecting on their own lives so they could benefit as much from the telling as the receiving.

You know what was so wonderful about it—I had been cheated all these years not remembering that image of my brother and I playing under the table. I wouldn’t have [remembered it] if we didn’t do this.
MARVELOUS MUSEUM MAVEN, SUPER SECRET SENIOR

The secrets were exchanged through actual mail, not email. This slower method gave the partners time to explore their memories, express themselves deliberately, and—in a situation where days begin to blend—gave them something to look forward to. The tactility of cards filled with handwritten words and pictures turned them into a gift; it made the receiver a caretaker, safeguarding moments of someone else’s life.

Friendship across distance and decades

We wanted our participants to build a connection, not just exchange information. This was not about grown-ups humoring kids, or kids humoring grown-ups—this was about two experiences at either end of a spectrum, sharing a window into their point of view.

As part of the final exchange, each partner used what they’d learned about the other to create and send a gift to their anonymous pal: a superhero mask based on the shared secrets. And then the Department of Super Secrets hosted a reveal party. Partners came together on a video call, each wearing their newly gifted masks. Although they had been exchanging stories for weeks, this was the first time they saw the face behind the feelings. This was the first time Super Potato met Fantastic Fixer, and it was lovely.

Visit the Department of Super Secrets to meet the 4th graders and senior citizens behind the masks

Before and after their experience, we asked the partners to answer a few questions meant to gauge their empathy. Turns out the numbers support the anecdotes: Their time with the Department of Super Secrets seems to have genuinely increased their empathy scores, especially their ability to put themselves in someone else’s shoes.

So what went right? We built the Department of Super Secrets by combining three key elements:

1. Anonymity: character vs. characteristics

No one in the world is more perfect for you than the mysterious stranger sitting alone in the coffee shop. The less we know about someone, the easier it is to dress them up and see them exactly as we wish. That’s why we sidestepped the introductions, the descriptions of hair color, and the family history. We wanted each side to begin by speaking across the mysterious absence created by anonymity to someone they assumed was a kindred spirit, ready and excited to connect.

We’ve all seen enough awkward hugs and pinched cheeks between kids and elderly relatives to know these two groups don’t always dance to the same beat. If the relationship began with the mental shorthand of “old” and “young,” there would be silent assumptions on both sides. Confirmation bias would run wild.

We used the freedom of anonymity to create rapport so partners would speak their truth honestly without tailoring it to their audience.

2. Story: introductions from the inside out

My name Is Ben. I once had my heart broken.

Which of those two offerings is more likely to create a bond between us? Ironically, the things that shape us most distinctly—our stories—are also the things most of us have in common. At the very core, we all share the same stories, but told in our own unique ways. Your parents may not have named you Ben, but you probably know what it is to cry into your pillow.

We used story as a sneaky back door to help Super Secret partners appreciate each other's identities once we dropped the anonymity. By the reveal party, they had connected enough through the shared stories that when they discovered each other’s identity, it enriched their idea of who a young or old person could be.

3. Play: lighten the mood, deepen the conversation

As I’ve written elsewhere, play is powerful. It lowers the bar for self-judgment; it can function like oven mitts for handling sensitive subjects; it can encourage us to stretch our everyday thinking and see possibilities we might have otherwise missed. Fun is a fuel.

We could have said, Hey, this is a school project to build empathy. Bo-ring. Instead, we led with the language of secrets, superheroes, and surprise to elevate it to something memorable, meaningful, magical.

Play allowed the partners to share vulnerable stories in a safe way. One prompt—"Share the secret of your most embarrassing moment"—became a funny way of sharing values, fears, and anxieties. Because underneath the slipped bathing suits or milk-spewing nose is the nature of what you find embarrassing, and that tells a lot about a person. Is it failure? Public or individual? Loss of control? Misunderstanding? Fear itself?

Sharing a moment you wish had never happened is an act of trust and bravery. Receiving someone else’s story is a way to remember you are not alone in the world as a flawed human being.

Play allows you to do both with a smile.

The next adventure…?

While this began as a way to enrich the lives of kids and seniors, it turned out to be a powerful way of sneaking behind the unrecognized biases, the mental shortcuts that are the unacknowledged guardrails of our day-to-day thinking. What if we expanded the experience to bridge other divergent points of view related to politics, race, economics, gender, geography, or religion?

We’d love to find situations to use the Department of Super Secrets to help people hear each other in a new way. Our hope is that this combination of anonymity, story, and play can help any two strangers find common ground whether they be superdelegates or super potatoes.

*Names and details have been changed to protect secret identities

When Super Potato* met Fantastic Fixer* for the first time, she asked if Fantastic Fixer’s puppy was feeling better. Fantastic Fixer wanted to know about Super Potato’s recent birthday. There were no awkward silences, despite the fact that Super Potato was nine and Fantastic Fixer was closer to 79 and they were, until this very moment, strangers.

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the 3 unexpected secrets for finding common ground between strangers

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.
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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.
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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.
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How to use AI as an editor, not a writer

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Ed White shares how he uses AI as an editor—not a writer—to sharpen storytelling, rehearse ideas, and preserve the productive friction that makes creative work better.

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Ed White has a rule he's tested on his own writing: hold yourself as the writer, and let AI be your editor. Ed is a Senior Design Director at IDEO's London studio, where he co-leads the firm's AI portfolio across Europe. Before IDEO, he spent 12 years as a writer and editor at the Financial Times, Wired, and Contagious. So when he talks about when to use AI for storytelling and when not to, it comes from two decades of crafting his storytelling skills.

In this episode, Mina Seetharaman talks with Ed about two specific tools he uses to keep AI in an editor's seat: a "roasting agent" prompted to critique his drafts without any sugarcoating, and a simulated audience he rehearses pitches on before the real thing. They also get into what Ed is hearing from design leaders at Anthropic, Lovable, Shopify, and Google Creative Lab about how creative work is changing, and why he thinks the friction of writing something yourself is worth protecting rather than automating away.

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Building a personal AI for the messiness of life: Sida Li

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Becca Carroll talks with Cue co-founder Sida Li about designing a personal AI for the messiness of everyday life—not just work. They explore how Sida stays anchored to human needs while navigating fast-changing technology, product tradeoffs, business-model experimentation, and the realities of building an AI company today.

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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.

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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Designing GenAI for the emotional side of money: Johannes Seemann

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Designing financial tools around the feelings that shape money decisions.

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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.

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The curious leader's edge in uncertainty: Scott Shigeoka

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How genuine curiosity helps leaders navigate uncertainty with greater confidence.

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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.

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