Addressing the right problems and coming up with the right solutions requires implementation of design-thinking practices.
Remember when Amazon was just the world's biggest bookseller? After broadening its products to include, well, everything and optimizing its fulfillment and delivery process in the late 1990s, Amazon became the world's biggest retailer.
And you may not be aware that the longtime children's plaything, Play-Doh, began its commercial life in the 1930s as an implement for removing coal residue from wallpaper. Another successful pivot, I'd say.
While some may say those evolutions were obvious, what is often overlooked is the detailed research, painstaking planning and nose-to-the-grindstone work behind the scenes that led to the decision and implementation of the pivot. In every case, these transformational changes could not be achieved without with asking all the right questions up front.
Asking the right questions requires building a diverse and highly competent team and employing one of the most vital techniques for managing any project: design thinking.
The power of the pivot
The design thinking concept has been a business staple for decades, but it has gained prominence in recent years as a powerful technique for organizations to deliver innovative solutions that please customers. It guides them to the truth quickly and hopefully faster than the competition.
Many successful entrepreneurs would say their most valuable resource is time. And it's true — in today's always-on, hyper-competitive business environment, time to market is critically important. The "new normal" of business is that "never normal" should be our guide; market conditions are constantly changing. Thus, business problems must be addressed right now, and design thinking provides a well-proven process for solving those conundrums, both pragmatically and creatively.
If you want to apply design thinking to your strategic planning process, here are a few key considerations to get you started:
Does your value proposition match a 'must-have' customer need?
Are you producing the product or service you want or simply have offered in the past? Or the one that your targeted customer base demands? If it's the former, you're not on a pathway to sustainable (or growing) success.
Identify and understand your most important customer. If there are a bunch of them, focus most of your attention on one. Learn why they buy, what they're willing to pay, what value they see in the product and when they will see it (also known as the "buying trigger"). Keen analysis and design thinking will give you the insights to determine the leading (or lagging) indicators that drive purchase decisions.
