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The Difference Between Design Thinking, Lean Startup, and Agile

The Difference Between Design Thinking, Lean Startup, and Agile
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As more large companies begin to embark upon audacious transformation plans and set up innovation teams, more corporate professionals are being introduced to a world in which terms like design thinking, lean, agile, pivot, experiment, fail, adapt and so on are used almost interchangeably.

Many fall victim to the law of the instrument bias and after attending a one day design thinking workshop, load all of their eggs into that one basket, maintaining a firm belief that design thinking is the silver bullet solution for their innovation woes, but as I detailed in a previous blog post, design thinking is only one step in the process.

With that, I often get asked by professionals new to the space what the difference between design thinking, the lean startup and agile is and the answer forms the basis for this article.  

Design thinking refers to creative strategies designers use during the process of identifying problems designing solutions.

Brainstorming in its traditional sense is perhaps one of the worst ways to come up with ideas.

Usually, ideas come to us when we give our minds space - while going for a long nature walk, while working out, while in the shower - they tend not to come to us while in a high intensity groupthink environment surrounded by peers, superiors and having been given just one hour to come up with ‘breakthrough’ ideas that will save the company from disruption.

However, by bringing together the right people, creating the right environment and using the right tools, we can drastically improve the outcomes of such initiatives.

That’s where design thinking comes in - as it walks participants through proven pathways for inspiration, problem definition, idea generation, prototyping and testing.

According to Tim Brown, author and CEO of world renowned design consultancy, IDEO, “design thinking is a human-centered approach 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.”

The lean startup is used to turn these proposed solutions into business models, underpinned by assumptions that are rapidly tested with actual customers to separate truth from fiction, learn and iterate towards product market fit.

Globally, about 95% of startups fail and the number one reason is market failure - building what nobody knows exists, nobody wants to buy or nobody wants to pay more for than it costs you to get it in their hands.

The lean startup methodology was born out of Silicon Valley in the late noughties, however owes its roots to Toyota’s lean production system and the US Department of Defence’s OODA philosophy (observe, orient, decide, act, which is also fundamental in agile). But while Toyota’s system teaches us how to builds things efficiently, it doesn’t teach us what to build in the first place.

The lean startup is used to rapidly experiment across problem, solution, customer segment, distribution channels, marketing channels, revenue models, cost structures, messaging and so on in order to complete the puzzle that underpins any idea for as Michael Dell put it, ideas are a commodity, execution of them is not.

Workflow Podcast

The WorkFlow podcast is hosted by Steve Glaveski with a mission to help you unlock your potential to do more great work in far less time, whether you're working as part of a team or flying solo, and to set you up for a richer life.

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To help you avoid stepping into these all too common pitfalls, we’ve reflected on our five years as an organization working on corporate innovation programs across the globe, and have prepared 100 DOs and DON’Ts.

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Steve Glaveski

Steve Glaveski is the co-founder of Collective Campus, author of Time Rich, Employee to Entrepreneur and host of the Future Squared podcast. He’s a chronic autodidact, and he’s into everything from 80s metal and high-intensity workouts to attempting to surf and do standup comedy.

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