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What is design thinking
and why should
the BPO industry care?
GBS/SSC/BPO | PROCESS
By 2017, IBM had trained 50 000 of its employees in design thinking. Big players across all in-
dustries are bringing the design mindset and design thinking tools into their ranks. They are
motivated by the challenge of gaining competitive advantage and looking for sustainable models
to innovate. Creative sales pitches from marketing wizards will make design thinking sound very
easy, but that is one of the many misconceptions in this field. However, starting with the right
expectations and following tested implementation tips can help bring very tangible benefits to
BPO organizations.
Sandra Subel, Creative Change Maker
Sandra Subel
Sandra Subel is a design thinking coach and facilitator who helps organizations embrace human-centered
design, a designer’s mindset and empower their people for innovation. She has been active in the BPO industry
since 2010. She believes that empathy, focus on users’ needs and diversity will shape the future of the business.
In her work, Sandra focuses on building a culture of innovation and developing the design thinking capabilities
within her organization. She designs and facilitates design thinking projects, workshops, and training programs.
Sandra holds an MA degree in Political Sciences and a BA degree in Spanish Philology. Currently, she is comple-
ting an Executive MBA program.
17
GBS/SSC/BPO | PROCESS
As more and more industries are getting
disrupted, forward-looking executives are
searching for ways to make their companies
future-proof. Dennis Gabor once said, “We
cannot predict the future, but we can invent
it”. That thought leads to the conclusion that
possessing innovation capabilities should de-
crease the likelihood of becoming obsolete.
In this pursuit, many companies are plac-
ing their hopes in design thinking. They are
spending millions to teach their workforce to
think like designers. Bigger businesses have
already trained tens of thousands of people.
[Tab 1.]
To accelerate the process of building design-
driven organizations they are also acquiring
design studios. By 2016, Accenture alone
made 6 such acquisitions, Deloitte made 5,
and McKinsey is not far behind. [Tab 2.]
What is design thinking?
“Design thinking is a human-centered ap-
proach to innovation that draws from the
designer’s toolkit to integrate the needs of
people, the possibilities of technology, and
the requirements for business success.” This
comprehensive definition was proposed by
Tim Brown, one of the biggest promoters of
design thinking and CEO of IDEO. This expla-
nation is often supported by a simple Venn
diagram that shows where design innovation
origins. It sits at the intersection of human
needs (desirability), technology (feasibility),
and business (viability) overlap. It may seem
easy and straightforward. However, it is a real
challenge to incorporate these three ingredi-
ents always starting with human needs. De-
sign is not only about making objects pretty.
Design is the process of understanding hu-
man needs and then creating a product or
service that addresses their unmet needs.
It sounds simple, but it is actually a high bar.
Design thinking provides a comprehensive
approach to solving complex problems by
applying a defined process.
Although innovation almost never follows
a linear progression, it is still helpful to under-
stand the approach by breaking it down into
distinct phases (Illustration 1.).
1.	Empathize is not only the first step but also
the core concept in human-centered design.
Itisawaytobuildadeepunderstandingofthe
peoplewhoarewithinthescopeofthedesign
challenge by analyzing their actions, needs,
motivations, feelings, and mental concepts.
2.	Define is aimed at bringing clarity and fo-
cus to the challenge by making sense of the
information gathered during the previous
phase and crafting a very specific and ac-
tionable problem statement.
3.	Ideate marks the transition from the prob-
lem space to the solution space and focus-
es on generating the widest range of pos-
sible ideas by actively striving for quantity
and variety.
4.	Prototype & Test is a step in which risky
assumptions of ideas are validated by run-
ning cheap and quick experiments.
Benefits of applying design
thinking
Undeniably, applying the process and mind-
set outlined above is not the only way to
solve complex problems. Companies have
had successes in the past by relying on other
methods. Training an organization on how to
apply design thinking is definitely a significant
investment, so what results can be expected?
Looking at the value of practicing design
thinking in a business environment, it is
worth to consider two sources of insights –
facts and practitioner’s experience.
Facts
1. Design Value Index
The Design Management Institute and Motiv
Strategies created the Design Value Index
to measure the value of implementing best-
in-class design management practices. The
2015 results show that over the previous
10  years, design-led organizations main-
tained a significant stock market advantage,
outperforming the S&P 500 companies by an
extraordinary 211%
2. IBM Report
Forrester, in their study for IBM published
in February 2018, interviewed 4 of IBM’s
design thinking clients and surveyed an ad-
ditional 60 executives who employed design
thinking in their organizations. The results
suggest that organizations that are using
design thinking to solve their and their cli-
ents’ problems are achieving very tangible
results. Some of them can have a direct im-
pact on the company’s top or bottom line
(faster product/service development cycles,
improved productivity), while others have
a more indirect and long-term effect (in-
creased customer engagement).
Experience
My experience confirms the findings men-
tioned above and I believe that when ap-
plied correctly and in the right context,
Table 1. Scaling design thinking through training.
Company Number of Employees Trained in design thinking (as at 2017)
Intuit 8000 (all the employees)
IBM 50 000
SAP 20 000
Kaiser Permanente 15 000
GE Healthcare 8000
Deutsche Telecom 8000
Philips 5000
Source: „Innovation by Design”, Thomas Lockwood and Edgar Papke, 2018.
Table 2. Examples of Design Studios acquisitions
Company Design/Creative Agency Acquisitions
Accenture Fjord, Altitude, Karmarama, Reactive, Chaotic Moon, Pacific Link,
Designaffairs (2018)
Deloitte Doblin, Uselab, Banyan Ranch, Mobiento, Heat
McKinsey Lunar, Everyday, Carbon 12
Capgemini Adaptive Labs, Idean
Source: „Innovation by Design”, Thomas Lockwood and Edgar Papke, 2018.
18
GBS/SSC/BPO | PROCESS
design thinking definitely brings tangible
benefits. Forrester’s study mentions those
which seem to be a direct result of applying
human-centered design. However, I have also
observed side-effects which impact not just
the products or services but the organization
itself. Although they are much more difficult
to measure, they are undoubtedly positive.
#1. Better Team Alignment, because eve-
ryone is clear about which problem is
being solved and operates on the same
amount of information accessible to each
team member.
#2. Democracy, because innovative ideas are
sourced from all levels of the hierarchy
and not only from those with the highest
salary.
#3. Promotion of diversity, because radi-
cal collaboration principle insists that
the best performing teams leverage the
diversity of backgrounds, ethnicity, edu-
cation, age, experience, and of course
gender.
#4. Creative Confidence, because the design
thinking approach helps people unleash
their creative confidence which they
might have lost when growing up and go-
ing through the educational system.
Design thinking and BPO
The BPO industry is based on human capital.
Although more and more tasks are shifted
to machines through the use of RPA or AI,
there is still a significant amount of work that
requires human judgment. Together with the
development of technology, people will work
with software or machines more and more
often. This might be a source of fear, stress,
or unnecessary frustration. These issues can
be addressed by applying design thinking.
It can also help identify new opportunities for
improvement and automation.
As mentioned already, design thinking is
perfect to solve complex problems. They are
often called wicked problems, which are par-
ticularly challenging for the following reasons:
co-dependency on other problems, lack or
contradictory information, number of people
and point of views involved, and large finan-
cial impact. Every larger organization, includ-
ing a BPO one, is facing this type of problems.
Building design thinking
capabilities
There is a strong trend to focus on train-
ing employees to become more creative in
problem-solving. For many, design thinking
appears to be a great means to achieve this
aspiration. However, scaling design thinking,
19
GBS/SSC/BPO | PROCESS
like any other new way of working or mindset,
is not easy and straightforward. Companies
planning to bring design thinking into their
ranks should consider these tips.
1. Small group > Scale
My suggestion is to find a group of people in-
terested in design thinking, problem-solving,
or innovation, and train them. When I was
looking for people for my initial group, we
used Gallup StrengthsFinder 2.0, an assess-
ment that helps discover people’s strengths.
It  consists of 34 themes/strengths in 4 do-
mains. I was looking for people with the fol-
lowing strengths: restorative (problem-solv-
ing), communication, woo (ability to build new
relations), empathy and/or ideation. Particular
strengths of future team members should not
be seen as requirements for entry, but just
as initial signs of potential. This approach can
pay off in large organizations, in which not all
members have had the chance to work to-
gether in the past. What is most important,
however, is to build a diverse group with com-
plementary predispositions and perspectives.
2. Focus on Learning > Over Delivery
In the initial phase, learning is critical and
therefore the focus should be on building the
momentum by running a pilot project. It is im-
portant to give people a “sandbox”. They will
use it to play with the knowledge they have
just recently gained. Encouraging the team
to run creative experiments, test, fail, learn
and iterate is essential. The sandbox will of-
fer boundaries to fail in a safe way. From this
perspective tackling an internal challenge
may be better than a client-facing one.
3. Empower > Control
To successfully build a design-driven or-
ganization, employees need to feel em-
powered to change. They need to feel the
ownership and the responsibility. People
need to have the willingness to change
their mindset and stay open-minded. This
can only happen in an environment which
values trust over control.
4. Strategy > illusion of change
Initiating large-scale training programs
just to quickly get to a high number of peo-
ple with yet another skill/certificate might
not be the investment which will bring
expected returns. For some companies,
a better strategy could be hiring talents
from the market who will not only bring
the know-how but also a fresh mindset.
They could act as catalysts for change on
a cultural level.
Design thinking myths
The pressure to maintain or gain competi-
tive advantage makes some executives sus-
ceptible to sales pitches from imaginative
marketing wizards praising wonderful meth-
odologies or frameworks. Unrealistic prom-
ises lead to unrealistic expectations, which
lead to frustration and disappointment.
Some of the misconceptions are pretty com-
mon and surface again and again.
1. Design thinking is just a toolkit
Newcomers to design thinking often focus
completely on specific tools, which are the
most tangible and pragmatic elements of
this approach. They are easy to understand
and adopt, but when they are applied with-
out regard for their purpose, the overall
mindset, and the process, they lose the in-
tended impact.
2. Design thinking is just a fun workshop
Workshops and other design thinking ac-
tivities should be fun because it is proven
that play activates the same areas of the
human brain which are crucial for creativ-
ity. But the fun or even the workshop is not
the ultimate goal. A workshop setting is a
pragmatic way to facilitate collaboration
and co-creation without the impediments
of working across different schedules or
physical locations.
3. Design thinking is a ”one size fits all”
process
There is a common belief that design thinking
is a plug and play approach. Unfortunately,
there is no single set of tools or one process
scenario that fit all the cases. Human-centered
design offers a large selection of options, and
many important and impactful decisions need
to be taken when designing a process.
4. Using Post-It® notes is design thinking
Many people are convinced that to practice
design thinking it is enough to have a set of
colorful sticky notes and a marker. However,
design thinkers are using sticky notes for very
pragmatic reasons. They are easy to move
and rearrange, they make ideas tangible and
visible, and they force people to write with
precision instead of just talking.
Summary
The rising popularity of design thinking
correlates with the increasing demand for
building sustainable problem-solving capa-
bilities. That in itself is not an easy problem
to solve. Design thinking is not a simple so-
lution. But, if one is willing to look beneath
the surface and understand the deeper
philosophy behind it, embrace the mindset,
and have the patience and perseverance to
apply it in a conscious way, it can enhance
customer/employee experience, efficiency,
and culture.

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What is design thinking and why should the BPO industry care?

  • 1. 16 What is design thinking and why should the BPO industry care? GBS/SSC/BPO | PROCESS By 2017, IBM had trained 50 000 of its employees in design thinking. Big players across all in- dustries are bringing the design mindset and design thinking tools into their ranks. They are motivated by the challenge of gaining competitive advantage and looking for sustainable models to innovate. Creative sales pitches from marketing wizards will make design thinking sound very easy, but that is one of the many misconceptions in this field. However, starting with the right expectations and following tested implementation tips can help bring very tangible benefits to BPO organizations. Sandra Subel, Creative Change Maker Sandra Subel Sandra Subel is a design thinking coach and facilitator who helps organizations embrace human-centered design, a designer’s mindset and empower their people for innovation. She has been active in the BPO industry since 2010. She believes that empathy, focus on users’ needs and diversity will shape the future of the business. In her work, Sandra focuses on building a culture of innovation and developing the design thinking capabilities within her organization. She designs and facilitates design thinking projects, workshops, and training programs. Sandra holds an MA degree in Political Sciences and a BA degree in Spanish Philology. Currently, she is comple- ting an Executive MBA program.
  • 2. 17 GBS/SSC/BPO | PROCESS As more and more industries are getting disrupted, forward-looking executives are searching for ways to make their companies future-proof. Dennis Gabor once said, “We cannot predict the future, but we can invent it”. That thought leads to the conclusion that possessing innovation capabilities should de- crease the likelihood of becoming obsolete. In this pursuit, many companies are plac- ing their hopes in design thinking. They are spending millions to teach their workforce to think like designers. Bigger businesses have already trained tens of thousands of people. [Tab 1.] To accelerate the process of building design- driven organizations they are also acquiring design studios. By 2016, Accenture alone made 6 such acquisitions, Deloitte made 5, and McKinsey is not far behind. [Tab 2.] What is design thinking? “Design thinking is a human-centered ap- proach to innovation that draws from the designer’s toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.” This comprehensive definition was proposed by Tim Brown, one of the biggest promoters of design thinking and CEO of IDEO. This expla- nation is often supported by a simple Venn diagram that shows where design innovation origins. It sits at the intersection of human needs (desirability), technology (feasibility), and business (viability) overlap. It may seem easy and straightforward. However, it is a real challenge to incorporate these three ingredi- ents always starting with human needs. De- sign is not only about making objects pretty. Design is the process of understanding hu- man needs and then creating a product or service that addresses their unmet needs. It sounds simple, but it is actually a high bar. Design thinking provides a comprehensive approach to solving complex problems by applying a defined process. Although innovation almost never follows a linear progression, it is still helpful to under- stand the approach by breaking it down into distinct phases (Illustration 1.). 1. Empathize is not only the first step but also the core concept in human-centered design. Itisawaytobuildadeepunderstandingofthe peoplewhoarewithinthescopeofthedesign challenge by analyzing their actions, needs, motivations, feelings, and mental concepts. 2. Define is aimed at bringing clarity and fo- cus to the challenge by making sense of the information gathered during the previous phase and crafting a very specific and ac- tionable problem statement. 3. Ideate marks the transition from the prob- lem space to the solution space and focus- es on generating the widest range of pos- sible ideas by actively striving for quantity and variety. 4. Prototype & Test is a step in which risky assumptions of ideas are validated by run- ning cheap and quick experiments. Benefits of applying design thinking Undeniably, applying the process and mind- set outlined above is not the only way to solve complex problems. Companies have had successes in the past by relying on other methods. Training an organization on how to apply design thinking is definitely a significant investment, so what results can be expected? Looking at the value of practicing design thinking in a business environment, it is worth to consider two sources of insights – facts and practitioner’s experience. Facts 1. Design Value Index The Design Management Institute and Motiv Strategies created the Design Value Index to measure the value of implementing best- in-class design management practices. The 2015 results show that over the previous 10  years, design-led organizations main- tained a significant stock market advantage, outperforming the S&P 500 companies by an extraordinary 211% 2. IBM Report Forrester, in their study for IBM published in February 2018, interviewed 4 of IBM’s design thinking clients and surveyed an ad- ditional 60 executives who employed design thinking in their organizations. The results suggest that organizations that are using design thinking to solve their and their cli- ents’ problems are achieving very tangible results. Some of them can have a direct im- pact on the company’s top or bottom line (faster product/service development cycles, improved productivity), while others have a more indirect and long-term effect (in- creased customer engagement). Experience My experience confirms the findings men- tioned above and I believe that when ap- plied correctly and in the right context, Table 1. Scaling design thinking through training. Company Number of Employees Trained in design thinking (as at 2017) Intuit 8000 (all the employees) IBM 50 000 SAP 20 000 Kaiser Permanente 15 000 GE Healthcare 8000 Deutsche Telecom 8000 Philips 5000 Source: „Innovation by Design”, Thomas Lockwood and Edgar Papke, 2018. Table 2. Examples of Design Studios acquisitions Company Design/Creative Agency Acquisitions Accenture Fjord, Altitude, Karmarama, Reactive, Chaotic Moon, Pacific Link, Designaffairs (2018) Deloitte Doblin, Uselab, Banyan Ranch, Mobiento, Heat McKinsey Lunar, Everyday, Carbon 12 Capgemini Adaptive Labs, Idean Source: „Innovation by Design”, Thomas Lockwood and Edgar Papke, 2018.
  • 3. 18 GBS/SSC/BPO | PROCESS design thinking definitely brings tangible benefits. Forrester’s study mentions those which seem to be a direct result of applying human-centered design. However, I have also observed side-effects which impact not just the products or services but the organization itself. Although they are much more difficult to measure, they are undoubtedly positive. #1. Better Team Alignment, because eve- ryone is clear about which problem is being solved and operates on the same amount of information accessible to each team member. #2. Democracy, because innovative ideas are sourced from all levels of the hierarchy and not only from those with the highest salary. #3. Promotion of diversity, because radi- cal collaboration principle insists that the best performing teams leverage the diversity of backgrounds, ethnicity, edu- cation, age, experience, and of course gender. #4. Creative Confidence, because the design thinking approach helps people unleash their creative confidence which they might have lost when growing up and go- ing through the educational system. Design thinking and BPO The BPO industry is based on human capital. Although more and more tasks are shifted to machines through the use of RPA or AI, there is still a significant amount of work that requires human judgment. Together with the development of technology, people will work with software or machines more and more often. This might be a source of fear, stress, or unnecessary frustration. These issues can be addressed by applying design thinking. It can also help identify new opportunities for improvement and automation. As mentioned already, design thinking is perfect to solve complex problems. They are often called wicked problems, which are par- ticularly challenging for the following reasons: co-dependency on other problems, lack or contradictory information, number of people and point of views involved, and large finan- cial impact. Every larger organization, includ- ing a BPO one, is facing this type of problems. Building design thinking capabilities There is a strong trend to focus on train- ing employees to become more creative in problem-solving. For many, design thinking appears to be a great means to achieve this aspiration. However, scaling design thinking,
  • 4. 19 GBS/SSC/BPO | PROCESS like any other new way of working or mindset, is not easy and straightforward. Companies planning to bring design thinking into their ranks should consider these tips. 1. Small group > Scale My suggestion is to find a group of people in- terested in design thinking, problem-solving, or innovation, and train them. When I was looking for people for my initial group, we used Gallup StrengthsFinder 2.0, an assess- ment that helps discover people’s strengths. It  consists of 34 themes/strengths in 4 do- mains. I was looking for people with the fol- lowing strengths: restorative (problem-solv- ing), communication, woo (ability to build new relations), empathy and/or ideation. Particular strengths of future team members should not be seen as requirements for entry, but just as initial signs of potential. This approach can pay off in large organizations, in which not all members have had the chance to work to- gether in the past. What is most important, however, is to build a diverse group with com- plementary predispositions and perspectives. 2. Focus on Learning > Over Delivery In the initial phase, learning is critical and therefore the focus should be on building the momentum by running a pilot project. It is im- portant to give people a “sandbox”. They will use it to play with the knowledge they have just recently gained. Encouraging the team to run creative experiments, test, fail, learn and iterate is essential. The sandbox will of- fer boundaries to fail in a safe way. From this perspective tackling an internal challenge may be better than a client-facing one. 3. Empower > Control To successfully build a design-driven or- ganization, employees need to feel em- powered to change. They need to feel the ownership and the responsibility. People need to have the willingness to change their mindset and stay open-minded. This can only happen in an environment which values trust over control. 4. Strategy > illusion of change Initiating large-scale training programs just to quickly get to a high number of peo- ple with yet another skill/certificate might not be the investment which will bring expected returns. For some companies, a better strategy could be hiring talents from the market who will not only bring the know-how but also a fresh mindset. They could act as catalysts for change on a cultural level. Design thinking myths The pressure to maintain or gain competi- tive advantage makes some executives sus- ceptible to sales pitches from imaginative marketing wizards praising wonderful meth- odologies or frameworks. Unrealistic prom- ises lead to unrealistic expectations, which lead to frustration and disappointment. Some of the misconceptions are pretty com- mon and surface again and again. 1. Design thinking is just a toolkit Newcomers to design thinking often focus completely on specific tools, which are the most tangible and pragmatic elements of this approach. They are easy to understand and adopt, but when they are applied with- out regard for their purpose, the overall mindset, and the process, they lose the in- tended impact. 2. Design thinking is just a fun workshop Workshops and other design thinking ac- tivities should be fun because it is proven that play activates the same areas of the human brain which are crucial for creativ- ity. But the fun or even the workshop is not the ultimate goal. A workshop setting is a pragmatic way to facilitate collaboration and co-creation without the impediments of working across different schedules or physical locations. 3. Design thinking is a ”one size fits all” process There is a common belief that design thinking is a plug and play approach. Unfortunately, there is no single set of tools or one process scenario that fit all the cases. Human-centered design offers a large selection of options, and many important and impactful decisions need to be taken when designing a process. 4. Using Post-It® notes is design thinking Many people are convinced that to practice design thinking it is enough to have a set of colorful sticky notes and a marker. However, design thinkers are using sticky notes for very pragmatic reasons. They are easy to move and rearrange, they make ideas tangible and visible, and they force people to write with precision instead of just talking. Summary The rising popularity of design thinking correlates with the increasing demand for building sustainable problem-solving capa- bilities. That in itself is not an easy problem to solve. Design thinking is not a simple so- lution. But, if one is willing to look beneath the surface and understand the deeper philosophy behind it, embrace the mindset, and have the patience and perseverance to apply it in a conscious way, it can enhance customer/employee experience, efficiency, and culture.