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    Ideo layoffs and the end of design thinking

    enNovember 22, 2023

    Podcast Summary

    • Design Thinking: Putting Users at the Center of InnovationDesign Thinking is a problem-solving methodology that prioritizes deep empathy with users and keeping them at the center of the innovation process.

      Design thinking is a problem-solving methodology focused on empathy and understanding the end user to create innovative solutions. Originating as a buzzword in the corporate world a few years ago, it emphasizes deep empathy with users, contrasting the traditional closed-room approach to design. IDEO, a global design firm, recently announced layoffs, and Fast Company senior editor Liz Stinson joined the show to discuss the past and present of design thinking. She explained that while the term has evolved, its core principle remains: putting the user at the center of the innovation process. Despite its widespread use, design thinking requires time and effort to truly understand users' needs, making it a valuable yet complex approach to problem-solving.

    • Understanding Users for Innovative SolutionsDesign thinking is a valuable problem-solving approach, but it's essential to remember that it doesn't guarantee a foolproof solution. It encourages empathizing with users, ideating potential solutions, and testing them, but real-world complexities can make implementation challenging.

      Design thinking, a problem-solving approach popularized by IDEO in the 1990s, encourages understanding the end user to generate innovative solutions. The process typically involves six steps: empathizing with users, defining the problem, ideating potential solutions, prototyping, testing, and implementing. However, criticisms suggest that design thinking can be oversimplified, leading to unrealistic or unimplementable ideas. The complexities of the real world, such as cost and unforeseen challenges, can make implementation difficult. Design thinking is evolving, and organizations have their unique approaches. It's essential to remember that while design thinking can lead to innovative ideas, it doesn't guarantee a foolproof solution. Instead, it's a valuable tool to better understand users and generate potential solutions, but it should be combined with other problem-solving methods and a deep understanding of the real-world context.

    • Design Thinking's Evolution to Address Ethical ComplexitiesDesign Thinking is evolving to focus on ethics and prepare designers for ethical dilemmas, as demand for traditional services decreases due to online learning.

      While design thinking has been a popular problem-solving approach for innovation, it has faced criticism for being surface-level and neglecting the complexities and ethical considerations involved. Institutions like Stanford Design School are evolving their programs to address these concerns, focusing more on ethics and preparing students for the ethical dilemmas they'll face as designers. IDEO, a pioneer in design thinking, has experienced decreased demand for its traditional services as companies have been able to learn the methodology through IDEO's online offerings. This has led to layoffs at the company. The future of design thinking lies in its evolution to address the complexities and ethical considerations of innovation.

    • IDEO facing significant layoffs, indicating shift in design thinking industryCompanies are increasingly doing design thinking in-house, leading to decreased demand for external agencies like IDEO, resulting in significant layoffs

      The demand for design thinking services provided by companies like IDEO has decreased due to the increasing ability of organizations to do this work in-house. IDEO, specifically, is undergoing significant layoffs, with a reported reduction of staff by 32% by the end of the year. This affects all levels of the company, indicating a significant shift in the industry. IDEO's CEO, Derek Robson, has mentioned that the company might be transitioning into a media agency, adding to the uncertainty about its future direction. The trend of companies doing design thinking themselves, along with the high price point of outsourcing to agencies like IDEO, has led to the shrinking of these organizations. While not everyone can be a designer, the importance of having a solid methodology for idea generation cannot be overlooked, especially in critical areas like healthcare. Organizations are increasingly holding their own design sprints and adapting design thinking methodologies to suit their needs. The layoffs at IDEO and other similar companies highlight this trend.

    • Design thinking for all: Overcoming barriers with ownership cultureDesign thinking is valuable but exclusive, but embracing ownership culture can foster collaboration and inclusivity, empowering everyone to contribute their best ideas

      While organizations like IDEO have made significant strides in design thinking, the high cost of their services creates a barrier for smaller companies and communities in need. However, there are other design organizations doing valuable work, and the next generation of designers is pushing for more inclusive and equitable approaches. Miguel Leao, a design leader, shares his experience of learning ownership culture at KIND, which he brought to SOMOS to foster a collaborative and innovative environment. By embracing a culture of ownership, everyone feels empowered to contribute their best ideas, regardless of their role or background.

    • Bringing Authentic Mexican Food to ConsumersSOMOS, founded in response to Americans' lack of homemade Mexican food, aims to provide convenient, high-quality Mexican products, prioritizing ethical supply chain practices.

      SOMOS was founded based on the observation that while Americans consume large amounts of Mexican food, they rarely make it at home. This trend is unique to Mexican food, with 82% of it coming from restaurants, compared to other ethnic cuisines. Daniel Lubetzky and Rodrigo Vázquez saw an opportunity to bring authentic, high-quality Mexican food to consumers in a convenient and cost-effective way. They drew inspiration from the evolution of Mexican food in restaurants, from taco trucks to Michelin-starred establishments, but noticed that the grocery store shelves remained stagnant. SOMOS aimed to become the "spaghetti and sauce" of Mexican food, with products like rice and sauces that could be easily prepared in under 10 minutes. The founders prioritized ethical supply chain practices, sourcing ingredients from the best growers in the Napa Valley of peppers in Mexico and developing relationships with local chefs to cook the products close to the source.

    • Authentic Mexican food through relationships and technologySOMOS Foods grew by focusing on authentic Mexican cooking methods, high-quality ingredients, and building relationships with farmers. They saw takeout restaurants as competition and offered an authentic alternative, now suppliers are eager to partner. Innovative AI and AR Abuela AI provides recipe suggestions, setting SOMOS apart.

      SOMOS Foods' success comes from their commitment to authentic Mexican cooking methods, high-quality ingredients, and building relationships with farmers. At the beginning, they faced skepticism from suppliers who saw no value in their vision of providing restaurant-quality Mexican food for home cooking. However, SOMOS didn't see other brands on the shelf as competition but rather takeout restaurants. By focusing on offering an authentic and delicious alternative, they have grown significantly, and now suppliers are eager to partner with them. Another unique aspect of their business is Abuela AI, a digital representation of a Mexican grandmother. The idea was to provide a resource for those without a Mexican grandmother to consult for cooking advice. While the initial plan involved hiring 200 Mexican grandmas, the execution proved challenging. Instead, they partnered with technology expert Yvonne Kinser and developed an AI and AR version of a Mexican grandmother, allowing users to text and take pictures of shelves for recipe suggestions. This innovative approach sets SOMOS apart and adds value to their brand.

    • Exploring the future of Mexican cooking with AI and traditionAI-powered Abuela offers quick recipe tips while maintaining authenticity, focusing on easy, quick, and affordable Mexican meals, inspiring brands like Jing, Omsom, Carbone, and Rao's to bring high-quality Mexican food to the masses, and simplifying Mexican meal preparation with marketing strategies and customizable options.

      The future of cooking and connecting with culture may involve a blend of technology and tradition. The use of AI, such as an AI version of a grandma, can provide quick and convenient recipe tips, while still maintaining a personal and authentic connection. One specific goal is to create Mexican meals that are easy, quick, and affordable, with a focus on 5 ingredients, 10 minutes, and under $15. Brands like Jing by Fly by Jing, Omsom, Carbone, and Rao's are inspiring this mission to bring high-quality Mexican food to the masses. The ultimate goal is to encourage more people to cook at home instead of ordering out. To achieve this, SOMOS is exploring marketing strategies that make Mexican meals as simple and customizable as building with Legos. The Abuela AI is just one step in making Mexican meals more accessible and convenient.

    • Exploring new uses for productsCompanies innovate by discovering new ways to utilize their offerings, unlocking fresh possibilities for customers.

      Companies are constantly finding new ways to utilize their products, expanding the possibilities for customers. Miguel from Somos Foods discussed how they've taken their enchilada sauce and used it to create chilaquiles, unlocking a new recipe for their customers. Similarly, LEGO continues to launch new kits, allowing users to mix and match pieces to create various projects. Liz, on the other hand, shared her fascination with the media's focus on the challenges of securing reservations at popular restaurants in New York City. Despite the difficulty, she encouraged supporting local neighborhood restaurants, which offer unique dining experiences and contribute to the vibrant food scene in the city.

    • The closure of Jezebel marks the loss of a unique voice in journalismThree millennials shared their fondness for Jezebel's coverage of controversial figures and issues, reminiscing about its influence on their personalities and mainstream perspectives, emphasizing the importance of investigative reporting and the role of snark in shedding light on important issues.

      The closure of Jezebel, a media company known for its snarky and investigative reporting, is lamented by some as a loss of a unique voice and perspective in journalism. During the discussion, three millennials shared their fondness for Jezebel's coverage of controversial figures and issues, which they felt influenced mainstream perspectives. They also reminisced about how Gawker, another media company known for its snarky reporting, shaped their own personalities. Despite the controversies and flaws associated with these companies, their impact on popular culture and journalism is undeniable. The loss of Jezebel is a reminder of the importance of investigative reporting and the role of snark in shedding light on important issues.

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