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The art of
business design

                                          Copyright Cultivar Consulting Limited 2010




an e-guide to authentic design thinking
Contents
                          ✤   introduction
                          ✤   significant moments in time
                          ✤   sustainability & CSR
                          ✤   the next step - authenticity
                          ✤   authentic leadership
                          ✤   a profound sense of purpose
                          ✤   thinking styles
                          ✤   design thinking
                          ✤   the design process
      the author          ✤   the art of business design
      James Rock
Chief Business Designer
 Cultivar Consulting
introduction   ✤   this e-guide is designed to quickly stimulate your
                   thoughts and encourage you to act further
               ✤   the booklet isn’t a how-to manual, but more of a
                   summary of my philosophy of invention as it
                   applies to designing innovative business models
               ✤   it introduces the concept of authenticity as a
                   central core element of the business - a culture
                   within a new type of business architecture
               ✤   it describes how creativity and innovation can be
                   linked to business experience to invent new and
                   more effective business models
               ✤   for established business leaders it explains why
                   now is the time to re-think, re-design and re-
                   build for the future
               ✤   for new start-ups it should stimulate you to think
                   differently and freshly, to seek inspiration in
                   designing a business that really fires your
                   passion and helps you to be more successful

               ✤
                   its all about - The   Art of Business Design
significant
                  ✤
                      sometimes events occur that give us a shock!
                  ✤   if they didn’t happen our life would continue pretty


moments in time
                      much as-is without the need to change - when they
                      do arise it usually leads to initial disbelief, followed
                      by realisation that the status-quo no longer applies
                  ✤   9/11 was one of those days... perceptions about
                      managing public safety and transportation changed
                      overnight, our world was turned upside down
                  ✤   2008 was one of those years... when consumerism
                      driven by easy credit suddenly unravelled
                  ✤   these events are often called “black swans” high-
                      impact, hard-to-predict, and rare occurrences, and
                      when these significant emotional events hit us we
                      need to reframe our world...
                  ✤   in 2009 there arose huge public distrust in capital
                      markets after the banking sector crash, and in public
                      institutions after the scandal of MP’s expenses
                  ✤   most of us now realise that greed isn’t good, and that
                      capitalism needs to be re-invented to provide both
                      economic and social development
                  ✤   we need to look at ourselves critically and determine
                      if we need to change - we need to fundamentally
                      address how we act in our life and in our business...
✤   though it often seems like it, sustainability isn’t just


sustainability &
                       about tree hugging environmentalists
                   ✤   it has become a wide-ranging term that encompases


CSR
                       taking a long-term perspective of our future

                   ✤   in business this covers three principal areas -
                        ✤   environmental sustainability
                        ✤   societal sustainability
                        ✤   economic sustainability
                   ✤   this holy trinity of sustainability is usually grouped
                       together to form a company’s corporate sociability
                       responsibility (CSR) policy - many firms are doing this

                   ✤   in the USA, CSR is often called the “Triple Bottom
                       Line” i.e. its focus is about using CSR to impact on
                       profitability and shareholder value - true capitalist
                       thinking

                   ✤   but isn’t focusing on bottom line profit inherently
                       unsustainable? doesn’t taking short term profits often
                       mean investment cutbacks? its well known that you
                       can’t save your way to sustainable long-term
                       prosperity

                   ✤   now there is a new trend to something more genuine -
                       a sustainable approach that works - the new term
                       being used for this is Authenticity...
✤       authenticity isn’t just a new management buzz-word
               ✤       its a set of values that guide individuals and

authenticity           organisations in facing the many tensions, forces,
                       pressures, and influences of everyday life with
                       honesty and integrity
               ✤       there are growing movements across the world that
                       are building knowledge and expertise in this field
               ✤       every day more individuals, organisations and
                       businesses are adopting authenticity as their way of
                       becoming truly sustainable
               ✤       authentic people, leaders and businesses display the
                       following attributes: -

                            P - they have a profound purpose beyond profit,
                            a purpose that is socially and/or
                            environmentally positive

                            I - they display integrity between
                            communication and action
                            R - they show respect for others
                            S - they display sensibility to exploitation of
                            resources and customers; and they have

                            U - they have a distinct and unique business
                            personality
                   ✤    are you a truly authentic leader?
authentic    ✤   being a leader is a difficult role - it requires many

leadership   ✤
                 qualities and skills

                 we know the ones who inspire us
                  ✤   they are full of life and passion
                  ✤   they believe in the greater power of a team
                      over an individual
                  ✤   they are ethical and act with integrity
                  ✤   they trust people to act responsibly
                  ✤   they respect the needs of others
                  ✤   they have the courage to follow their
                      convictions
             ✤   above all, authentic leaders have a deep and true
                 sense of purpose and deploy their energy in
                 pursuit of it
             ✤   people are always willing to follow inspiring and
                 authentic leaders
             ✤   so why not be the leader others choose to follow?
a profound sense
of purpose         ✤   do you know your own life purpose? it defines you
                       and helps you to know who you truly are
                   ✤   for most of us there is a gap between the life we are
                       leading and who we truly are - this gap causes
                       stress and the bigger the gap the more stress there is
                   ✤   when we know our life purpose and apply our
                       talents in pursuit of it we feel engaged, fulfilled and
                       much happier - we become passionate in our work
                   ✤   and if a group of people with a shared purpose
                       work together their energy rises dramatically - in a
                       business this energy can deliver amazing results
                   ✤   so do your employees know their purpose? do they
                       share your purpose? is everyone aligned? are you
                       all passionate about what you do?
                   ✤   authentic businesses focus on this shared sense of
                       profound purpose to constantly drive them forward
                       in pursuit of their goals
                   ✤   they usually outperform their peers too... resulting
                       in growth and profitability far above average
if you have decided that now is the time to re-

thinking
           ✤

               think then is now the time to change the way you
               do this too?


styles         it is well known that the brain has two distinct
           ✤

               halves - left brain and right brain - and thinking
               originates from either side
           ✤   left brain thinking is described as logical,
               sequential, rational, analytical, objective - it
               focuses on the parts
           ✤   right brain thinking is described as random,
               intuitive, holistic, synthesising, subjective - it
               focuses on the whole
           ✤   in business, people are predominantly left brain
               thinkers - they deal in reality, and are usually
               conventional and predictable - our education
               system is primarily designed to foster and help
               develop these left brain skills but doesn’t do
               enough to develop the right side of the brain
           ✤   but artists and designers are predominantly right
               brain people - they deal in creativity and
               innovation - often described as lateral thinking
           ✤   so why can’t these thinking styles can be
               combined?
           ✤   they can - and this is now being recognised...
design
           ✤   leading business leaders have said we need to re-
               think, re-design and re-build - but in ways that look
               not at the past... but by embracing the future


thinking   ✤   society is changing, technology is rapidly
               developing, competition is global and on-line
           ✤   the west can’t compete head-to-head with low-cost
               labour producers any longer, and is committed to
               creativity and innovation as a competitive response
           ✤   its recently been said that design schools are the
               new business schools - because it’s now apparent
               that old-school businesses are out of date and some
               lateral thinking is needed - Design Thinking
           ✤   so leading business schools are beginning to
               develop collaborative links with the best art schools
           ✤   and top-end design companies like IDEO are now
               being engaged in business and service design
           ✤   this is because creativity and innovation is needed
               to design the businesses of tomorrow - injecting a
               dose of right brain, abductive thinking - so start to
               ask yourself what might be?
           ✤   the design process can then be used to provide a
               framework that helps you design your business of
               the future...
the design
             ✤   designers manage the process of design in different
                 ways, but there are similarities in every approach,
                 typically covered by four common phases :-

process      ✤   discovery - the start of the project - beginning with
                 an initial idea or inspiration in which user needs are
                 identified
             ✤   define - in which interpretation and alignment of
                 these needs to business objectives is achieved
             ✤   develop - where design-led solutions are developed,
                 iterated and tested within the company
             ✤   deliver - where the resulting business model is
                 finalised and launched in the relevant market
             ✤   but whilst other design processes can deliver
                 innovative solutions, they don’t consider the crucial
                 aspect of embedding authenticity as a central key
                 element, nor the behavioural aspects of change that
                 are required to deliver this
             ✤   so you need a design process that integrates the
                 technical elements of change alongside those
                 behavioural ones that are so critical for authenticity
             ✤   this ensures that everyone understands, buys-in and
                 supports the business model as it is implemented...
the art of
                  ✤   so we know business tensions will hit us from
                      different directions, including economic cycles,
                      changing customer needs, competition, and ever
                      increasing shareholder expectations

business design   ✤   we understand that sometimes these tensions arise
                      at different times, but very often they will occur
                      simultaneously and require a bigger response
                  ✤   so businesses need to be amorphous structures
                      that will be flexible and responsive to change
                  ✤   the authentic business architecture is a flexible and
                      accommodating framework that interlinks the key
                      elements of the business whilst retaining
                      authenticity as the central culture at its heart
                  ✤   any tensions cause the whole to flex together, but
                      authentic values help every part to adjust
                      accordingly without suffering a critical failure
                  ✤   so while you are re-thinking, re-designing and re-
                      building you can invent a business of the future
                      that will cope with the tensions of tomorrow
                  ✤   you can inject creativity and innovation to deliver
                      excellence, engage your people, and display a
                      passion that will truly excite your customers

                  ✤
                      in short - The   Art of Business Design
contact us now




                 ✤   web: www.cultivar.co.uk

                 ✤   telephone : 44 (0) 121 443 5524

                 ✤   mobile : 44 (0) 7802 976806

    James Rock   ✤   email : james.rock@cultivar.co.uk

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The Art of Business Design 2.0

  • 1. The art of business design Copyright Cultivar Consulting Limited 2010 an e-guide to authentic design thinking
  • 2. Contents ✤ introduction ✤ significant moments in time ✤ sustainability & CSR ✤ the next step - authenticity ✤ authentic leadership ✤ a profound sense of purpose ✤ thinking styles ✤ design thinking ✤ the design process the author ✤ the art of business design James Rock Chief Business Designer Cultivar Consulting
  • 3. introduction ✤ this e-guide is designed to quickly stimulate your thoughts and encourage you to act further ✤ the booklet isn’t a how-to manual, but more of a summary of my philosophy of invention as it applies to designing innovative business models ✤ it introduces the concept of authenticity as a central core element of the business - a culture within a new type of business architecture ✤ it describes how creativity and innovation can be linked to business experience to invent new and more effective business models ✤ for established business leaders it explains why now is the time to re-think, re-design and re- build for the future ✤ for new start-ups it should stimulate you to think differently and freshly, to seek inspiration in designing a business that really fires your passion and helps you to be more successful ✤ its all about - The Art of Business Design
  • 4. significant ✤ sometimes events occur that give us a shock! ✤ if they didn’t happen our life would continue pretty moments in time much as-is without the need to change - when they do arise it usually leads to initial disbelief, followed by realisation that the status-quo no longer applies ✤ 9/11 was one of those days... perceptions about managing public safety and transportation changed overnight, our world was turned upside down ✤ 2008 was one of those years... when consumerism driven by easy credit suddenly unravelled ✤ these events are often called “black swans” high- impact, hard-to-predict, and rare occurrences, and when these significant emotional events hit us we need to reframe our world... ✤ in 2009 there arose huge public distrust in capital markets after the banking sector crash, and in public institutions after the scandal of MP’s expenses ✤ most of us now realise that greed isn’t good, and that capitalism needs to be re-invented to provide both economic and social development ✤ we need to look at ourselves critically and determine if we need to change - we need to fundamentally address how we act in our life and in our business...
  • 5. though it often seems like it, sustainability isn’t just sustainability & about tree hugging environmentalists ✤ it has become a wide-ranging term that encompases CSR taking a long-term perspective of our future ✤ in business this covers three principal areas - ✤ environmental sustainability ✤ societal sustainability ✤ economic sustainability ✤ this holy trinity of sustainability is usually grouped together to form a company’s corporate sociability responsibility (CSR) policy - many firms are doing this ✤ in the USA, CSR is often called the “Triple Bottom Line” i.e. its focus is about using CSR to impact on profitability and shareholder value - true capitalist thinking ✤ but isn’t focusing on bottom line profit inherently unsustainable? doesn’t taking short term profits often mean investment cutbacks? its well known that you can’t save your way to sustainable long-term prosperity ✤ now there is a new trend to something more genuine - a sustainable approach that works - the new term being used for this is Authenticity...
  • 6. authenticity isn’t just a new management buzz-word ✤ its a set of values that guide individuals and authenticity organisations in facing the many tensions, forces, pressures, and influences of everyday life with honesty and integrity ✤ there are growing movements across the world that are building knowledge and expertise in this field ✤ every day more individuals, organisations and businesses are adopting authenticity as their way of becoming truly sustainable ✤ authentic people, leaders and businesses display the following attributes: - P - they have a profound purpose beyond profit, a purpose that is socially and/or environmentally positive I - they display integrity between communication and action R - they show respect for others S - they display sensibility to exploitation of resources and customers; and they have U - they have a distinct and unique business personality ✤ are you a truly authentic leader?
  • 7. authentic ✤ being a leader is a difficult role - it requires many leadership ✤ qualities and skills we know the ones who inspire us ✤ they are full of life and passion ✤ they believe in the greater power of a team over an individual ✤ they are ethical and act with integrity ✤ they trust people to act responsibly ✤ they respect the needs of others ✤ they have the courage to follow their convictions ✤ above all, authentic leaders have a deep and true sense of purpose and deploy their energy in pursuit of it ✤ people are always willing to follow inspiring and authentic leaders ✤ so why not be the leader others choose to follow?
  • 8. a profound sense of purpose ✤ do you know your own life purpose? it defines you and helps you to know who you truly are ✤ for most of us there is a gap between the life we are leading and who we truly are - this gap causes stress and the bigger the gap the more stress there is ✤ when we know our life purpose and apply our talents in pursuit of it we feel engaged, fulfilled and much happier - we become passionate in our work ✤ and if a group of people with a shared purpose work together their energy rises dramatically - in a business this energy can deliver amazing results ✤ so do your employees know their purpose? do they share your purpose? is everyone aligned? are you all passionate about what you do? ✤ authentic businesses focus on this shared sense of profound purpose to constantly drive them forward in pursuit of their goals ✤ they usually outperform their peers too... resulting in growth and profitability far above average
  • 9. if you have decided that now is the time to re- thinking ✤ think then is now the time to change the way you do this too? styles it is well known that the brain has two distinct ✤ halves - left brain and right brain - and thinking originates from either side ✤ left brain thinking is described as logical, sequential, rational, analytical, objective - it focuses on the parts ✤ right brain thinking is described as random, intuitive, holistic, synthesising, subjective - it focuses on the whole ✤ in business, people are predominantly left brain thinkers - they deal in reality, and are usually conventional and predictable - our education system is primarily designed to foster and help develop these left brain skills but doesn’t do enough to develop the right side of the brain ✤ but artists and designers are predominantly right brain people - they deal in creativity and innovation - often described as lateral thinking ✤ so why can’t these thinking styles can be combined? ✤ they can - and this is now being recognised...
  • 10. design ✤ leading business leaders have said we need to re- think, re-design and re-build - but in ways that look not at the past... but by embracing the future thinking ✤ society is changing, technology is rapidly developing, competition is global and on-line ✤ the west can’t compete head-to-head with low-cost labour producers any longer, and is committed to creativity and innovation as a competitive response ✤ its recently been said that design schools are the new business schools - because it’s now apparent that old-school businesses are out of date and some lateral thinking is needed - Design Thinking ✤ so leading business schools are beginning to develop collaborative links with the best art schools ✤ and top-end design companies like IDEO are now being engaged in business and service design ✤ this is because creativity and innovation is needed to design the businesses of tomorrow - injecting a dose of right brain, abductive thinking - so start to ask yourself what might be? ✤ the design process can then be used to provide a framework that helps you design your business of the future...
  • 11. the design ✤ designers manage the process of design in different ways, but there are similarities in every approach, typically covered by four common phases :- process ✤ discovery - the start of the project - beginning with an initial idea or inspiration in which user needs are identified ✤ define - in which interpretation and alignment of these needs to business objectives is achieved ✤ develop - where design-led solutions are developed, iterated and tested within the company ✤ deliver - where the resulting business model is finalised and launched in the relevant market ✤ but whilst other design processes can deliver innovative solutions, they don’t consider the crucial aspect of embedding authenticity as a central key element, nor the behavioural aspects of change that are required to deliver this ✤ so you need a design process that integrates the technical elements of change alongside those behavioural ones that are so critical for authenticity ✤ this ensures that everyone understands, buys-in and supports the business model as it is implemented...
  • 12. the art of ✤ so we know business tensions will hit us from different directions, including economic cycles, changing customer needs, competition, and ever increasing shareholder expectations business design ✤ we understand that sometimes these tensions arise at different times, but very often they will occur simultaneously and require a bigger response ✤ so businesses need to be amorphous structures that will be flexible and responsive to change ✤ the authentic business architecture is a flexible and accommodating framework that interlinks the key elements of the business whilst retaining authenticity as the central culture at its heart ✤ any tensions cause the whole to flex together, but authentic values help every part to adjust accordingly without suffering a critical failure ✤ so while you are re-thinking, re-designing and re- building you can invent a business of the future that will cope with the tensions of tomorrow ✤ you can inject creativity and innovation to deliver excellence, engage your people, and display a passion that will truly excite your customers ✤ in short - The Art of Business Design
  • 13. contact us now ✤ web: www.cultivar.co.uk ✤ telephone : 44 (0) 121 443 5524 ✤ mobile : 44 (0) 7802 976806 James Rock ✤ email : james.rock@cultivar.co.uk