What: An article explaining how design-thinking can help companies thrives even during recessions.

Why it is important: Since we live in a VUCA world, new approaches to problem solving are needed, often coming out of the box.

The article discusses the significance of design thinking and how it can help organizations navigate through challenging times. The authors argue that design should join finance, strategy, and talent on the CEO’s agenda, and they outline five main areas where design can be instrumental:

1. Preserve cash flow: When budget cuts are necessary, companies are advised not to pause all product design and development. Instead, they should prioritize one or two products based on user and business impact, and allow for new user-centric digital marketing. An example provided is a bank that switched from pushing products to educating consumers on finance, which increased sales by 25%.
2. Elevate scenario planning in strategy: In the face of uncertainty, design can complement the analytical approach to scenario planning. By integrating user-centric insights, a broader range of possibilities can be considered. A building materials and products company, for instance, identified three 15-year trends that could shift significant value across the construction value chain by using this method.
3. Manage supply chain risk: Design can help mitigate supply chain disruptions by redesigning products based on user needs, removing difficult-to-source parts, and accommodating a wider range of parts. An example given is an industrial-equipment manufacturer that removed an underused sensor and introduced a better-designed dipstick, leading to more accurate oil readings.
4. Build agility and resilience: Design can help organizations pivot quickly and effectively in response to changes in the market. This is achieved by integrating customer insights into the design process, building more flexible design capabilities, and fostering a culture of experimentation and learning. However, the specifics of this point were not fully covered in the text available.
5. Energize and care for the team: During periods of uncertainty, it's important to maintain a positive and engaging work environment to keep employee morale high. Design thinking can help here, but the specifics of this point were also not fully covered.

The article emphasizes that these unique approaches to problem-solving, driven by design, can provide significant value and boost an organization’s resilience, particularly during challenging times.

Designing out of difficult times