Is the Services Industry Ready for a Detour with Design Thinking?

Design Thinking, when applied effectively, provides a continuous method to discover, define, rethink and address business problems. If that business problem, however, is a company not ready to embrace change and break from “the way it is,” then Design Thinking is not the answer. It is not the means by which to change the culture of an enterprise, the behavior or mindset of an individual. An enterprise needs to have a culture that embraces a learning approach—a willingness to take risks and experiment, and a leader that encourages it. Participants need to be students, willing to share, observe, and listen. Learning is the underlying theme.

We at HfS believe that Design Thinking can provide an effective means by which service buyers and service providers can work together to define and achieve common goals and outcomes tapping into the resources of both parties. However, both the buyers and providers need to already be willing to engage in a Design Thinking exercise—it can’t be done by or for one to the other. It’s not about bringing consultants into an outsourcing engagement, for example, as a way to “add” expertise.

In a Design Thinking exercise, anyone who wants to be viewed as an expert in their field needs to leave their ego at the door. It’s not about being an expert. There is, however, a role for a change agent, an executive who leads by inclusion—using active listening and putting hierarchies aside—and keeps the process moving forward. The premise of Design Thinking is centered on continuous questions, and through experimentation and trial and “error,” the process may uncover new problem statements or opportunities. Design Thinking is frequently about detours. So, the effort needs transformational leaders to facilitate, create the momentum, and foster the “learning environment.”

When we asked ~180 service buyers in our Ideals of As-a-Service Survey what actions would help them achieve an As-a-Service end-state, over 40% said Design Thinking could have a significant impact, and just under 40% said it would take a change agent or transformational leader. At HfS, we believe it will take the combination of the two to be effective. 

Source: HfS Research, Ideals of As-a-Service Survey, 2015

For example, in our POV, Design Thinking Can Save the Services Industry From Obsolescence, we described how Infosys and RWE participated in a design thinking workshop together. It was about defining issues and opportunities in the energy industry. Working through the project together is what also shaped a new type of interaction between the service buyer RWE and the service provider Infosys. It started, though, with leaders on both sides being interested and willing to engage in this way.

As corporate leaders voice their support for asking questions, experimenting, and taking risks, and provide tools and opportunities to do so, design thinking champions will emerge. Companies need the culture, and people the mindset for being students; Design Thinking is then the means by which to find and solve problems. We are not changed into Design Thinkers; rather, we need opportunities to use the principles of Design Thinking to cultivate a capability that is already inherent in many employees.

The Bottom Line: Design Thinking can transform the service partnership paradigm, but only when both the service buyer and provider are inherently willing to work together in this way when they walk in the door. Putting egos and hierarchies aside to explore new ideas and ways of working is critical if Design Thinking is going to be worth the time and investment, and drive new business outcomes.

Service providers have to be prepared to invest in rethinking their relationships, even if that taking greater risks with their clients, if they are truly serious about embracing the potential of redesigning how they work with their clients today to safeguard their relationships in the future. The service providers that “get it” will displace many of those who fail to evolve away from the legacy mindset of protecting old business models, obsolete processes and working attitudes, as opposed to continually realigning services with achieving the outcomes that clients really need to meet to be successful with their own customers.