Have you ever had that gnawing feeling, just as you’re sitting down to your computer at work, that you’ve left the central heating on at home? You’re not alone. Rising concern about wasted energy and the financial cost of unregulated thermostats, as well as the convenience of a connected and cozy home, all point to the rise of the smart thermostat. Berg Insights projects it’ll grow 64.7 percent over the next five years.

Founded in Munich in 2011, tado° is Europe’s biggest maker of smart thermostats and air-conditioning controls. Looking to grow, tado° approached IDEO, a longtime collaborator, with a late-stage prototype for a new, wall-mounted gadget to connect any air-conditioning unit to the web so it could be controlled remotely through a smartphone app.

Dubbed tado° Cooling, the device recognizes when people leave their house and heats or cools the house upon their return. The brand tasked IDEO with a three-fold goal: gauge interest in the device, raise brand awareness, and work out product/market fit.

After stakeholder interviews, research, and prototyping, IDEO supported tado°’s team in refreshing the industrial design of the hardware and creating a distinctive yet unified user-interface language for the brand’s existing and future products.

To work out what potential customers thought of tado° Cooling, tado° turned to a novel research medium: Kickstarter. Its ultimate goal? Knowing whether people would part with their money for one. The IDEO team provided an overarching crowdfunding strategy, including funding goals, giving tiers, and marketing, and shot the brand’s Kickstarter campaign video.

As a result, the campaign burst through its $150,000 funding goal to $200,000, and scored coverage in a raft of tech media outlets including TechCrunch, GigaOm, TheNextWeb, Engadget, and PC Magazine. After hitting its “stretch goal,” tado° is adding non-A/C device controls, a Windows Phone app, and IFTTT and Jawbone Up integration.

In addition to media coverage, and showing the public’s appetite for the device, the Kickstarter community’s conversation unearthed further user insights that fed into product development, according to tado° head of design, Jens Pohl.

Buoyed by that success, tado° enlisted IDEO to translate user insights and a big-picture overview of the connected home sector into new services to enhance the device’s UX, and introduced new business models to strengthen its European brand strategy. Early visual concepts, learnings, and evidence from this exploration supported the brand’s investor pitch, securing a further round of $15 million venture capital.

Dr. Reddy’s, a 36-year-old global pharmaceutical company headquartered in India, was growing at a rapid pace. Over the years, the company’s main focus had been on producing affordable generic medication. But with more than 24,000 employees and seven distinct business units operating in 100 countries, there was an urgent need to identify a core, unifying purpose—one that would articulate a set of shared values and align leaders on key business decisions and goals.

G.V. Prasad, the company’s Co-Chairman and Managing Director, knew that the vision had to be simple and elegant–an emotional drive that every employee across the company could relate to and act upon.

Prasad partnered with IDEO to distill the focus that would align the company. Over the course of several months, Dr. Reddy’s team worked with IDEO to learn about the needs of everyone, from shop floor workers to scientists, external partners and investors. Together, they defined and distilled the essence of the company, paring it down to four simple words that center on the patient: Good health can’t wait.

The simplicity of these words belie their power. According to Prasad, the newly articulated purpose has resonated across the company, changing the whole culture of the organization. The idea of infusing a sense of urgency and nimbleness to their systems as a means of serving their customers has had a direct application in almost every corner of the business. Employees connect the message to their own experience, and each of the different business units are now moving towards a common goal.

A Shift Inside

“Good health can’t wait” has become a powerful recruitment tool and employee rallying cry. It makes clear that the company is in the business of serving patients, not just creating products, no matter how innovative or affordable. This has given a new sense of meaning to all personnel, from frontline sales representatives to senior leaders to scientists. Many key decision-makers, including new CEO Erez Israeli, share that the purpose statement inspired them to join the company.

Articulating Dr. Reddy’s purpose has empowered these employees to take risks, experiment, and work together. For example, the marketing department has refocused its efforts on finding solutions that improve patients’ consistent use of their medications. And motivated by the idea that patients can no longer wait for a cure, employees from different disciplines are coming together to find inventive ways of bringing new products to market in record time.

“The website medznat.ru required immense collaboration between various teams—medical, information technology, marketing, and analytics,” says Mvsma Raja, Head of Strategy and Marketing for Emerging Markets. “This served as a platform to bring the latest happenings in the area of pain management to doctors in Russia, who we learned are looking for the latest medical updates on the go.” Building on this cross-functional collaboration and momentum, Dr. Reddy’s established an internal design studio dedicated to using consumer insights and rapid prototyping to drive innovation.

New Offerings

“Our brand belief has inspired how we’ve thought about our future growth,” says CEO Erez Israeli. The new purpose unlocked a series of initiatives, including the aforementioned website for Russian physicians and innovative pill packaging that helps patients better understand their instructions.

Purple Pack is a new type of pill package that ensures that vital information like the expiration date is not torn off and thrown away. Born out of Dr. Reddy’s in-house design studio, Purple Pack allows the pharmacist or patient to mark their daily dosage and reminders on the packaging itself, as paper prescriptions are often misplaced.

A Business Boost

“Good health can’t wait” has not only attracted and unified talent and inspired new offerings, it’s boosted both sales and profit. For example, Dr. Reddy’s generic oral diabetes medication, Metsmall, has become the fourth largest brand in India based on the number of pills sold. The medication is distinct from competitors’ versions in that the pill is smaller and easier to swallow—a clear embodiment of product development oriented around the patient. With its signature Purple Pack convenience packaging, the medication has been one of the fast-growing Indian pharmaceutical brands over the last two years.

Looking ahead, both Prasad and Israeli hope to continue building a purpose-led culture that influences the business from the inside out, inspiring employees to be empathetic and responsive and realizing its mission to deliver good health to all.

In 2006, the MacArthur Foundation made what became a big bet about the future of education, shifting its attention away from the traditional school-based model of reform toward a more youth-centered approach.

By 2014, the bet was starting to pay off, but for it to really succeed, it needed an innovative path to scale and an entrepreneurial approach to sustainability. That’s when MacArthur came to IDEO for help in designing a new organization.

Together, IDEO and MacArthur set out to transform the foundation’s efforts into a self-sustaining enterprise that could balance the social responsibilities of a nonprofit with the lasting viability of a business—an opportunity that was as much about designing a new infrastructure as it was about creating a new culture.

Using a novel prototyping process, IDEO created three illustrated scenarios to tell different versions of LRNG’s possible future, each with an alternative portraiture of its purpose, vision, operating structure, product portfolio, and business model. Through a playful, modular storytelling structure, the stakeholders considered the potential trade-offs of the different approaches and how to prioritize their organizational goals with clear definitions of success.

These different future-forward scenarios helped funders and partners grasp a radical organizational vision, as well as a clear operational model that was go-to-market-ready.

In October 2015, the MacArthur Foundation launched Collective Shift, the organization behind LRNG, with $25 million in seed funding and 30 partners, including Arizona State University, Gap Foundation, the Boys & Girls Clubs, Electronic Arts, and musical artist John Legend.

Based on the scenarios created by IDEO, LRNG is dedicated to creating a “learning as a lifestyle” movement that will transform the learning landscape and close the equity and opportunity gap for young people.

Hundreds of millions of people, from excitable teens driving their first hatchback, to new parents going in for a minivan, have driven Fords off lots around the world since the first Ford Model A was produced in 1903. And cars have changed how we shop, travel, and work; they’ve reshaped our homes, towns, and the world’s infrastructure.

Today, Ford, along with the entire industry, is at an inflection point. As millions around the world move into gridlocked, polluted cities, the allure of owning a shiny new car has dulled. In some places, young people are driving less, and getting their licenses later or not at all. Lightening their load, city dwellers are relying on ride-sharing services and other alternatives to individual ownership.

Technology underpins that shift from ownership to usership. Smartphones, sensors, and open data have enabled new ways of getting from point A to B: from car-sharing services like Zipcar to taxi services like Uber or clever transport apps like Citymapper that help people skip effortlessly between the bus, a shared bike scheme, and renting a car.

While the owner of the very first commercially available Model A—Chicagoan dentist, Ernest Pfennig—couldn’t see more than a century ago how cars would change the world, Ford is squinting into its future by prototyping it now. Building on a longstanding relationship with IDEO, the carmaker approached us, along with a number of other partners, to undertake two of 25 experiments exploring a car company’s place in the changing world of mobility.

The first, Data-Driven Insurance, investigates a new pay-as-you-go insurance offer based on people’s driving behavior, as measured by a small adapter plugged into the car. The second, Infocycle, plots a snapshot of how bikes traverse the city and interact with cars and public transport by using Ford’s open source API, Open XC, to track cyclists around San Francisco.

Tackling the tangled ecosystems of bike sharing, private cars, and open city data proved an international effort. The two projects brought together a multidisciplinary team of researchers, hardware and software developers, data scientists, and interaction, industrial, and business designers from IDEO’s San Francisco, Palo Alto, Chicago, and London studios.

Have we cracked the future of mobility? Probably not. And that’s okay, says Fields. Smart mobility is simply part of Ford’s journey of evolution. Along with global competitions, collaborations with universities, and opening up their hardware and software platform Open XC, these experiments help Ford meet the needs of a fast-changing mobile world. “As we drive innovation in every part of our business,” Fields said, “we are determined to learn, to take risks, to challenge custom and question tradition, and to change our business going forward.”

More information on Ford’s Smart Mobility projects can be found here.

What should a passenger’s experience feel like? How much space should be allocated to each passenger? What were the tradeoffs? The folks in marketing had one idea, while the folks in engineering had another. Spreadsheets were involved, but we weren’t making much progress.

Our project team didn’t have all of the answers either, but we thought of one way that we could help. We took over a section of our San Francisco studio and spent a week building a full-scale shell of a plane out of wood, foam core, and cardboard. Our intention was to create a dynamic space for physical and digital experimentation. We then invited our clients to host their next meeting inside the “plane.”

Once inside, the trade-offs were clearer. The team could picture what different seat configurations might feel like; they could move things around as they visualized various options. Prototyping revealed a level of granularity and specificity the team simply couldn’t access over Zoom or through conversation. What started out as a series of abstract questions suddenly became tangible.

When you work in the mobility space, the projects you work on are big—literally. It’s not just the size of a car, but the size of a train, an airport, even a city. While creating low-fidelity prototypes of products and systems of this magnitude might seem impossible, prototypes are a tried-and-true tool for learning about your customers and refining your product design. They are also equally valuable for learning, aligning, and collaborating as an organization. When it comes to larger-than-life challenges in the mobility space, here are three ways prototyping can help.

Prototyping breaks down barriers

Many established mobility companies have spent decades developing processes that have allowed them to build safe, high-quality products at scale. But those methods don’t always work when adapting to a rapidly shifting market. When it came time for our team to work with a leading automaker to rethink the future of the commercial van, we all knew it would demand new ways of working. Together with their team, we built a new collaboration space in the heart of their engineering building to shake people out of their usual workflow. The walls were covered with pictures of vans in action, quotes from potential users, and in-progress work. In the middle of the space sat “the rig,” a purposefully unfinished prototype van made from modular aluminum and hand-cut cardboard parts. This was far from the polished models of car shows.

Instead of putting this space under lock and key, the team put up posters throughout the engineering building inviting folks to join them. When that effort didn’t get much traction, a member of the team proposed an idea. He simply wedged the door open and posted a sign that declared: “open door policy.” The message was simple. We wanted people to build with us. And the people, and the ideas, followed.

Unfamiliar faces started to pop into the space and populate the prototype van with new mirrors, door handles, and smart sensors while other groups debated strategy across the room. What started with a single project space grew, eventually morphing into a dedicated innovation lab that is collaborating across the organization to tackle the future of mobility.

Prototyping challenges assumptions

Several years ago, IDEO worked with Toronto Pearson International Airport to revitalize the airport’s operations from the passenger experience to the baggage handling process. Baggage handling operations are particularly important, as they’re a key metric for measuring airport efficiency, service quality, and performance. They’re also very complicated. Baggage handling involves multiple organizations, thousands of contract workers, and even more suitcases, moving between planes and carousels all around the world.

As contractors, baggage handlers aren’t often brought into the process to help redesign operations. But their perspective is invaluable. So together, IDEO and Toronto Pearson decided to hold a “baggage olympics” for operations employees, passengers, and baggage handlers to test, build, and improve prototypes of early baggage handling ideas. They landed on a simple but effective solution: color-coded signs, clear iconography, and guidance on where baggage should be placed. Not only did the exercise streamline airport operations, but it also changed everyone’s idea of how different groups of people could work together and how operations should work in the future.

As Darin Juby, Director of Baggage Services, told IDEO: “The work to reimagine baggage handling taught us how to prototype and collaborate—it reprogrammed us with a new mindset and way of working. When the pandemic hit two years later, because we had laid the groundwork, we were able to pivot quickly and cost-effectively in the midst of an unforeseen crisis."

Prototyping reveals unexpected needs

Bringing in potential customers to test out prototypes is a pretty common practice among design teams. But often in the automotive space, users do not have a chance to interact with prototypes until much later in the design process. Even then, they are often restricted to testing out highly refined models in tightly controlled sessions.

It’s far more rare to bring parents and children into your design space and invite a range of stakeholders with different perspectives, hypotheses, and critical questions to watch them play in an early prototype firsthand. But that’s exactly what we did with our partners at one of the world’s largest automobile manufacturers.

While we had been talking about bringing people into the lab, it wasn’t until families were engaging with our designs that we realized just how eye-opening it was. In one session, we watched alongside marketing, design, strategy, and product development leaders as a family played a game in the front of the car. Halfway through the game, a child pulled her mom to the back for some one-on-one time, pretending they were looking out at stars.That seemingly simple interaction inspired our team.

The team renamed the prototype Stargazer, and it helped changed the conversation about these vehicles. Decision-makers for this vehicle portfolio were bringing an empathy for the lives of these users into meetings, and talking more about how to foster quality family time than vehicle features and functions. Seeing our prototype in action extended customer empathy and understanding beyond marketing execs, ensuring that teams across the multinational organization were considering user needs from the outset.

Prototyping unlocks possibilities

Throughout my work on mobility projects at IDEO, prototyping has been the best tool for shaking up entrenched thoughts about how teams should work together. It not only provides teams with an opportunity to test assumptions and generate radically new ideas, but it also helps spark alignment and build confidence across disparate stakeholders. In some projects, embracing prototyping has even led to the development of new ways of working and labs that live on far beyond the launch of a product.

For those tackling challenges within the mobility space, and are eager to experiment with prototyping, start small. Take over a conference room, invite different voices in, construct a cardboard model, and watch your organization transform.

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Late last year, we sat on a Zoom call with executives at an organization redefining commercial aviation. They had some critical decisions to make about their first commercial aircraft.

“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.

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.