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.

We know this is easier said than done, especially for large teams spread across multiple locations. Over the years, IDEO has helped organizations around the globe develop the capacity to innovate, and that work has allowed us to gather data on the behaviors that have the greatest impact on a team’s ability to develop a successful solution.

Here are four insights into the ways today’s businesses innovate—and what you can learn from what they’ve learned.

1. Quick and dirty prototyping isn’t just for software

Though many executives dismiss MVP-style prototyping as a software-only approach, we've found it's actually more effective in other industries.

In fact, rough, low-fidelity prototyping is significantly more impactful when used in industries where it's currently least applied—particularly for companies with long development cycles and long product lifecycles.

When we looked at data from our research, we found that organizations with long development cycles and long product lifecycles saw their chance of successful launches increase by 109% compared to their more nimble counterparts.

Why? And how? Let’s consider a car company: For those teams, the cost and risk of investing in poorly thought-out ideas is much, much higher. Building a high-fidelity vehicle prototype can cost millions of dollars using traditional methods. Instead, low fidelity mock-ups (in this case, using foam core and tape to create a simulated car dashboard) can uncover critical flaws that can save millions of dollars and years of effort.

2. Don’t let your team become blinded by purpose

Purpose statements are incredibly valuable. We’ve seen that organizations without a sense of purpose find it difficult to innovate: They struggle to choose which opportunities to pursue, and they have a more difficult time getting employees excited about developing those ideas. Our data shows that organizations with a strong purpose are 12% more likely to launch new solutions successfully.

But purpose can have a downside. Our research has shown that it lowers the ability to listen objectively to the results of customer experimentation.

What does that mean? A benefit of a strong purpose is that it simplifies decision-making. However, at its extreme, this approach can lead to less flexible thinking, leaving organizations a little less likely to truly hear what a stakeholder or customer is telling them.

Does this mean you should crumple up your purpose statement and toss it in the trash? No, not at all. Purpose is fundamental to innovation: It energizes employees, speeds up decision-making, and leads to more productive collaboration. But beware the line where purpose turns into dogma and diminishes your team’s ability to truly listen to customers and interpret data.

3. Move fast—but not too fast

With the rise of lean startups, companies are feeling the pressure to get moving. But getting started without a plan and a clear idea of your objectives can end up being a drain on resources.

What’s the cost? First, skipping the steps of getting to know your customer and market causes teams to fail 180% more often. Also, organizations that evaluate multiple ways to solve a problem are much more likely to succeed—more than 42% more likely—and, on average, get to market faster.

We’ve seen two significant reasons for this: First, testing multiple ideas in parallel keeps the team’s mind flexible; and second, customers involved in research and testing during development provide more useful feedback when they are presented with multiple ideas.

If your guess is right from the start, great—you've saved a lot of time. But many startup or venture teams don’t have the right idea at the start. Teams that spend the time getting to know their customer early, then testing multiple ideas can take months off of the overall duration of their initiative.

4. Don’t underestimate the power of culture

When you're working to solve complicated problems, it’s natural to rely on process. Process feels tangible, comfortable. Nail that "innovation formula," and success will come.

But process isn’t—and can’t be—everything. Sure, certain methods are helpful for testing assumptions and getting to the right ideas, but it’s people—their spirit, their judgment, and their energy—that ultimately lead to the development of great ideas.

Organizations whose employees consistently state that they understand how to drive ideas forward and feel that they're making significant strides toward their organization’s goals are 16% more likely to have a successful launch.

One of the qualities we’ve measured is whether an organization’s team members describe their culture positively. Do they see their interactions with those in other organizational functions as productive and supportive? The teams who score each other in the top 5% are 30% less likely to fail than those under the 50th percentile.

Methodology and approach matter, but lean too hard on just those elements while neglecting culture and people will quickly lose their passion and energy, and resort to a paint-by-numbers approach that yields unspectacular results.

Countless more insights like these have yet to be uncovered, but one thing is already clear: Innovation leaders can’t fall back into old, stagnant patterns, but instead must continually find new edges for their teams to push.

Illustrations by Beena Mistry

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Creative solutions don’t happen by accident. They aren’t enacted by lone geniuses—they come from diverse teams that work well together and optimize the right methods and behaviors.

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I’m grateful for Chicago’s trains—even amid the crush of people jammed into the morning’s rush hour commute and the thought-clouding clatter and clank that pervades every metal car. It’s a marvel that these hulking workhorses of public transport coordinate at all, and are generally safe, on time, and comfortable. And yet I often notice fellow train-goers challenged, like myself, by something basic: What do we do with our stuff? In my time as a commuter, I’ve seen myriad workarounds. Legs became walls propping up clothes and bags; thighs became resting ports for big headphones. And then there was the man who transformed his suitcase handle into a coat rack. Human ingenuity: It’s one more thing I’m grateful for during my commute.

Human-centered design requires us to observe human behavior with beginner's eyes, so that we can spot the innate ways people interact with the world around them. We call these intuitive and unconscious reactions Thoughtless Acts, and IDEO designers collect photos of them to inspire their work.

Tim Brown, CEO of IDEO, shows how the techniques and strategies of design belong at every level of business.

The myth of innovation is that brilliant ideas leap fully formed from the minds of geniuses. The reality is that most innovations come from a process of rigorous examination through which great ideas are identified and developed before being realized as new offerings and capabilities.

In this revised and updated edition of Change By Design, Tim Brown reintroduces design thinking, the collaborative process by which the designer’s sensibilities and methods are employed to match people’s needs with what is technically feasible and a viable business strategy. In short, design thinking converts need into demand. It’s a human-centered approach to problem-solving that helps people and organizations become more innovative and creative.

Change by Design is not a book by designers for designers; it is a book for creative leaders seeking to infuse design thinking into every level of an organization, product, or service to drive new alternatives for business and society.

Purchase

Know someone who might love this book? Purchase Change By Design here.

Our checklist made all the difference when the Wellcome Trust tasked us with designing a way to cut down on unnecessary antibiotics use in middle-income countries. The world’s antibiotic misuse has staggering implications: By 2050, antimicrobial resistance is expected to kill 10 million people every year. That’s more people than we lose annually to cancer.

What became known as Project Marvelous took us to Kenya and India, where we encountered patients who self-diagnose and prescribe for themselves and their friends, community health workers with very little training, and pharmacies that dole out antibiotics without a prescription in order to make a sale.

As far as complex systems challenges go, it was an extreme one, but after testing several rounds of concepts rooted in behavior change, we found an intervention with real potential. Smart Prescriptions, as we called it, was an endpoint that varied drastically from where we began. The original hypothesis was that the intervention should be designed for pharmacists. But after following the checklist, we found we had to start with doctors.

Here are the five steps we followed to address this complex systems challenge:

1. Define your ecosystem

We can’t claim to have reached an understanding of the whole ecosystem by a longshot—the sheer number of stakeholders involved is what makes it such a complex problem. So at the outset, we defined our ecosystem, drawing a line at pharmaceutical companies, which seemed beyond the scope of the design challenge Wellcome had set. We then set out to interview antibiotic users, doctors, and pharmacists. In doing so, we realized there was a category we had overlooked: India’s tens of thousands of registered medical practitioners (RMPs). They typically aren’t licensed to prescribe antibiotics but have studied Ayurvedic medicine. Being willing to pivot and expand (or contract) the ecosystem is key: We began interviewing RMPs after realizing the huge impact their population has on antibiotics consumption.

2. Adopt a beginner’s mindset

In interviews, we positioned ourselves as people who didn’t know much about the topic. We were there to learn about them as people—their motivations, their struggles, their day-to-day. We listened. We made sure our questions were free of judgement and left our assumptions at the door. What we came to understand is that a primary motivator for doctors is to succeed as a business. They depend on patients coming back.

This insight made it through to the final design. Smart Prescriptions is, at its core, a tool to improve the doctor-patient relationship. Features like automated advice for patients and medication reminders increase the personal interactions doctors have with patients. The antibiotics recommendation is a Trojan horse, tucked inside the features doctors were really clamoring for.

3. Lead with empathy

Continually put yourself in your user’s shoes and make sure you’re seeing the situation from their perspective. We quickly came to understand, for instance, that many people working in pharmacies aren’t actually pharmacists, and that their financial motivations eclipse any duty of care. They dole out antibiotics without a prescription because refraining from doing so means sacrificing a sale and possibly losing a customer to a rival. Rather than slapping a “bad” behavior label on this, we accepted it as their reality and used it as a design constraint.

4. Consider your language

Systems challenges are often as sensitive as they are complex (consider homelessness or mental illness). As designers we are outsiders, so in designing Smart Prescriptions, we needed to make sure doctors were upheld as the experts. We weren’t creating a diagnostic tool, but rather an intervention that offers a recommendation based on their diagnosis. The tool doesn’t actually change the way they prescribe, it just offers guidance. It’s tough to remember every antibiotics guideline, especially as they update. The language that was used was consciously designed to be light and supportive of their expertise.

5. Generate unlimited ideas, then co-create

Don’t fall in love with your first good idea. Every assumption we made was challenged in our first trip, which ended up being more exploratory than we expected. We made a point to talk to every stakeholder and actor about our sacrificial concepts—early ideas we put in front of people to spark reactions. We gauged whether they had a positive or negative response, then iterated accordingly. After the discovery phase, we came up with seven concepts to test with participants and gauged their reactions. Smart Prescriptions was the clear standout, generating the most interest and excitement. We refined the concept back home, then returned to India and Kenya to gather more feedback. This allowed us to design something that spoke to doctors’ primary motivation, and to add features that the doctors felt would make it even more useful.

Unlike pilots, we don’t have the benefit of a known destination. Our checklist doesn’t just guarantee a smoother ride, it plays a major role in mapping the route itself. When the ecosystem is unfamiliar and the complexity is vast, it is a must.

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Every time we board an airplane, we assume our pilots aren’t going on instinct alone. They’ve worked their way through a checklist—fuel levels reviewed, the flap setting confirmed—to ensure the plane is ready for takeoff. They may be pros, but they’re human, and the complexity of the job makes it easy to forget a step.

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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.

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.