how can design thinking enable cultural change in organization
TRANSCRIPT
KINGSTON BUSINESS SCHOOL
MA CREATIVE INDUSTRIES & THE CREATIVE ECONOMY
2014/15
Personal Research Project
How Can Design Thinking Enable Cultural Change in Organisations:
An Analysis of Croydon Council
Author: Renzo D’Andrea (K1444909) Supervisor: Mark Passera Word count: 10754 This work is the copyright of the author
The new Croydon Council building in front of the old one dismantled – April
2015
1. Introduction
Generative research brings forward new patterns as it focuses on challenges and
opportunities that involve innovation. This kind of research explores the idea of
innovation linked with Leadership. Leaders of innovation foster environments
that embrace the right balance between the need for improvisation and the
realities of performance (Linda A. Hill et al. 2014).
Evaluative or formative design research is about strengthening confidence by
raising questions and uncertainties as they occur. It is not a formal and objective
test as it unfolds engagement with participants in a spirit of co-‐discovery as
much as of co-‐design. Unforeseen insights could help to bring new input to the
concept development.
!"#$%&'()*%'+,-%&.'
!"#$%&'()*+,'-./%#)01'
%/)(('*+'0+'12"&+"&'&2'20+3'&/+45''26'%/)(('*+'+"7+)82$6'&2')4+"7'&/+4!
)"7''20+3'&/+4'$"9(''
*+'/)8+'%$11++7+7!26'
'%/)(('*+'&6)"%:6+%%'&/+4')&'2"1+';''
Predictive design research concerns the research activities that evaluate
potential views for ideas and their feasibility. Undeniably, pressure to deliver
estimates of viable business avenues is towering.
According to IDEO, design research encompasses three different areas of
innovation through the following approaches as it was described above:
generative, evaluative or formative, predictive.
This project entails to conduct a design research focusing on Cultural Change and
Design Thinking methodologies in the organisations. By testing approaches and
methodologies during the work experience at Croydon Council between
February and June 2015, the researcher observed and was involved with the
organisation development team.
Predominantly design research requires commitment as much as creativity from
innovators. This is the case for design researchers. The direction is to reach new
horizons of understanding about what could facilitate connections between
people, especially in the work environment, to spur collaboration and
engagement.
Local councils are committed by statute to deliver a variety of public services for
their customers. These comprise services that everyone can access, such as
environmental, roads and cultural provision, to those accessed only by those in
need of that service, such as social care or housing.
The Coalition’s Open Public Services White Paper (2010) called for a wholesale
reform of all public services in the UK. The Localism Act was introduced in
November 2011.
The aim of the act was to transfer more decision-‐making power from central
government back into the hands of individuals, communities and councils. The
key points of the act can be outlined under the following priorities, such as new
freedoms and flexibilities for local government, new rights and powers for
communities and individuals, reform to make the planning system more
democratic and more effective, and reform to ensure decisions about housing are
taken locally.
The HM government states that localism agenda is driven by an essential vision
of changing the relationship between the state and the citizen from top-‐down to
bottom-‐up approach. It means rather than services being provided by the state,
leading to potential unaccountability and a lack of information and choice,
communities should express their ways allowing them more choice and control,
and a wider involvement in providing services in their area. This requires all
levels of government to reassess their role: “to become increasingly funders,
regulators and commissioners, whose task it is to secure quality and guarantee
fair access for all, instead of attempting to run the public services from a desk in
Whitehall, city hall or county hall” (HM government, 2011). Rather than being
rigid, the localism agenda has fostered to release both councils and communities
from the grip of centralisation, offering a toolkit of enabling powers for them to
act.
According to the 2013 report of Future of London Doing More with Less, the
government has enacted ‘localist’ reforms across a range of policy areas since the
government took office in 2010; these also have had a substantial impact on how
local authorities carry out the services. In the aftermath of the Localism Act,
councils nationwide, and of all political perspectives, must explore ways to
create growth with their new powers to strengthen the provision of services, or
risk those services collapsing. Interest in further innovation is increasing, with
more councils exploring the scope to enhance existing partnerships; nurture
efficiencies from sharing back-‐office functions or devolving budgets; or even
fully outsourcing selected services or departments to private sector or
community providers.
The main driving force of the service delivery reform is the endeavour from an
ideological commitment to redefining the relationship between the state and the
citizen. Additionally, the straightforward scenario with the deficit cut through
significant public-‐spending reductions, the dismantling of a range of public
bodies and a renewed emphasis on efficiency throughout the public sector.
Together, these drivers have provided councils with new freedoms, but fewer
resources and unforeseen challenges in the organisations.
Furthermore, in the context of pressure for rising costs and demands, councils
around the country are recognising that they cannot continue to deliver services
as before. Service cuts alone will be insufficient and will mean councils fail to
meet citizens’ expectations, risking political and legal challenges as well as
potential anxiety. The demands of meeting the needs of London’s diverse
population in particular could benefit from more localised, customised
responses. Whether gradual or radical, change in the way services are designed,
commissioned and delivered is undeniable.
Surrey Street Market in Croydon – March 2015
Croydon Council organisation plays the role of on-‐going cultural change, just as
other London Boroughs do. According to the Chair of the Croydon’s Local
!"#$$%&%'()$$*#)+,&&#-'.*,'/0#1$,2!!
!"#$%&'&( )*( +,(-,'&( .&/)01$&(-12&'( $,( $13&( )+( %1+.4( +,'(-,'&( .1+5&',6*( $,( 0,+.60$4( +,'( -,'&( .,6786/( )+( )$*(*600&**4($%1+($,(7&(1(/&1.&'()+($%&()+$',.609,+(,:(0%1+5&*#(;,'(%&(<%,( )++,=1$&*(<)//(%1=&( :,'(&+&-)&*(1//( $%,*&(<%,(1'&( <&//( ,>( 6+.&'( $%&( ,/.( ,'.&'( ,:( $%)+5*4( 1+.( ,+/?(/63&<1'-( *6@@,'$&'*( )+( $%,*&( <%,( -)5%$( 7&( 7&2&'( ,>(6+.&'($%&(+&<#!!
Strategic Partnership Croydon, the overarching Croydon vision for 2013 – 2018
comprises also “The Croydon challenge” which implies to save £100 million by
2018. In order to face this journey the organisation development team along
with the leader put in place a Leadership Development programme. The latter
offers the opportunity to investigate the scope of the cultural change in which
follows a transformational leadership style.
The Leadership is linked with innovation in the context of change management.
Bill Coughran worked as a senior vice president of engineering at Google from
2003 to 2011. When the company’s growth was boosting he was supposed to
implement a technical solution for Google's storage problems and guide his
group. To him, there was a bigger problem: how do I build an organization
capable of innovating continually over time? Coughran knew that the role of a
leader of innovation is not to set a vision and motivate others to follow it. It is to
create a community that is willing and able to generate new ideas.
Innovation often emerges when diverse people collaborate to generate a wide-‐
ranging portfolio of ideas, which they then craft and even evolve into new ideas
through give-‐and-‐take and often-‐heated debates. Therefore collaboration should
involve passionate disagreement. Yet the friction of clashing ideas may be hard
to handle. It can create tension and stress—particularly in groups of talented,
energetic individuals who may feel as if there are “too many cooks in the
kitchen.” (Linda Hill et al. 2014)
Methodology
3.1 Method and Philosophical Paradigm
The methodology is rooted in an experimental action research along with
Grounded Theory. Action Research relates to emerging or developing theory, but
with a focus on eventually proposing a change. Action Research is designed to
bridge the gap between research and practice. (Somekh, 1995)
The term ‘research’ recalls several views in the scope of innovation and design. It
is either a required step before bringing an idea to life or a filter that halts the
developing of ideas. Effective research concerns not only of objective evidence, it
is nourished with seeking for fresh patterns, analogies and case studies, empathy
as a channel that links with people’s motivations and behaviours. ‘Design
research’ is now considered as a new proposition that moves away from analytic
methods. According to Jane Fulton Suri (2013), design research can be the silver
shard for radical innovation that spurs new thriving opportunities for growth.
The Grounded Theory articulates the explanatory way of interpretive research
that looks beyond a merely descriptive or expressive style (Collins, H. 2010).
This originates abstract theoretical explanations of social processes with
predictive value. Also the theory aims for sharing fresh views, mainly in areas of
social life that has been outlined with quantitative or theoretical paradigms.
Abstract analytic concepts are discussed at the very early stage of the analysis
and to then further hone them until a ‘hallmark’ is crafted. (Strauss and Corbin,
1998)
During the research process the Grounded Theory, as a methodological
approach, was an appropriate method because it entails to explain actions
through analysis of data from participants. In Croydon Council the
measurements applied in the performance management have mainly been
Strengths Development Inventory (SDI), Myers Briggs Type Indicator (MBTI)
and 360° assessment. Such quantitative research tools enable the team involved
in the analysis to monitor the organisation’s climate periodically. The tools used
to identify the existing knowledge for the Croydon challenge includes surveys,
questionnaires. It implies large sample size assessment with statistical approach.
Therefore in the given work environment of Croydon Council the researcher
used qualitative research tools to gather a fresh perspective with a different
approach.
The goal of qualitative research is to build up an understanding of the form and
nature of phenomena, to unlock meanings and to attain new concepts and
theories. The purpose of the qualitative one was to listen to the participant’s
feelings in depth and notice the key words. The latest study of service
organisations (Kimbell, L. 2014) sees behavior as a visual consequence of
complex inter-‐relationships with other social peers sharing collective structures
and habits. According to Lucy Kimbell, behavior is significantly on the agenda of
policy-‐makers as something they intend to change, sometimes called the ‘nudge’.
The qualitative method aimed to explore, to prepare and generate ideas without
evaluation. Interviews were probing, subjective, interpretative. An Integrated
approach was used; qualitative data along with quantitative could help the
Croydon Council to identify new opportunities to grow. Identify latent or
emerging workers’ needs with emotional connection to combine the best of both
qualitative and quantitative data – hybrid insights lead with qualitative research
and subsequently integrate quantitative methods to develop a concept of
behavioral needs and a context in Croydon cultural change. Therefore this choice
is to underpin new information and use it in a practical way through a workshop
with the participants.
The qualitative research method was applied with the observation technique and
in-‐depth interviews. Ethnography includes various tools as well as supports the
understanding of the social world of people being studied through immersion in
their community. According to Jane Ritchie et al. (2014) by observing shared
behaviours, listening to the beliefs, values and meaningful insights, descriptions
of their culture can be produced in the later stages.
At the outset the researcher used ethnography spending two months working
within the Human Resource organisation department, specifically to liaise with
the Organisational Development team. This time was merely helpful to observe
other employees, sharing views and gather information and perspectives during
the workflow. Daily observations and reflections were collected in researcher’s
diary. Eleven in-‐depth interviews took place over five weeks with a sample of
eleven leaders across the organisation’s departments. They were undertaken to
let the researcher establish with the participant a reasonable climate, so he or
she might respond in a spontaneous way. Also the environment might help the
researcher to take non-‐verbal communication into account, such as a glance, a
hesitation, a frown. It permitted the explanatory research to provide a study
about an attitude or behaviour possible to identify patterns. The semi-‐structured
interviews lie in asking questions with the scope for the participant to explore
the themes guide with flexibility. This format allowed the researcher to delve
into the participants’ answers in terms of their values, past experience,
reasoning, feelings, opinions and beliefs. Also the language used by participant
was carefully considered as it contained meaning. The in-‐depth interview can be
generative to the extent to which the intensity of focus unfolds a space for
thought and reflection. All these features could equip the analytical potential to
deliver a valid argument. Interviewees were from senior to middle and front-‐line
roles.
The research philosophical perspective is influenced by ontology (Collins, H.
2010), it lies in the nature of reality. In this scenario the research utilises
assumptions to investigate how the world operates. This implies two aspects in
ontology: objectivism “portrays the position that social entities exist in reality
external to social actors concerned with their existence” (Saunders et. al., 2009);
subjectivism, also known as constructivism, can be defined as “ontological
position that asserts that social phenomena and their meanings are continually
being accomplished by social actors”. (Bryman, 2003, p.23) The subjectivist view
along with an interpretative stance enables the exploration of subjective
meanings by engaging social actors to understand them.
An interpretative paradigm was adopted in the research philosophy to create a
link with the qualitative research approach. The ‘interpretivism’ stems from the
school of thought that emphasizes the importance of interpretation and
observation in understanding the social world. (Jane Ritchie et al. 2014) In order
to enquiry the social world the researcher tapped into the Croydon Council
environment carrying out multiple methods: abductive and inductive. The
inductive logic considers creating knowledge from the bottom up through
observations of the world. According to Hilary Collins (2010), using an inductive
approach embodies the context in which the events are taking place. It takes in a
small sample that is more suitable than a large sample, it does not focus on a
cause-‐and-‐effect relationship. Jeanne Liedtka (2013, p.77) defines the abductive
reasoning as “..is the logic of what might be“. By starting out the research activity,
these methods seemed to be more appropriate. On the contrary, deductive
approach implies to explain casual relationship between variables. Feeling and
personal view should not get involved with the research. It requires emphasis on
quantitative data as well as moves from the theory to data. (Collins H., 2010)
Heather Fraser (2013) argues that six thinking skills are important catalysts for
the Business Design methodologies: emotional intelligence, system thinking,
visualisation, abductive reasoning, synthesis, intuition. The inductive along with
the abductive reasoning provides the researcher with multiple approaches.
However, while the research process was developing, the secondary data were
useful. Similar context was identified in other reports to compare and to deliver
a critical review of the existing work.
3.2. Variables and Questions
The chosen research question embraces two main topics: cultural change in
organisations and Design Thinking approach. These two main elements branch
out in the literature review. The latter embeds the interview plan investigation
with themes, such as risk and control, motivation, intuition, creativity, habits and
abductive reasoning. The matrix of topics was the backdrop of the interviews’
objectives. The relationship between the questions’ objectives and the literature
review is a starting point to discuss the findings further.
3.3 Sample, Data Collection, Data Entry Section
The data collection is comprised of face-‐to-‐face interviews of maximum 45
minutes. Throughout May 2015 all the interviews took place in the Croydon
Council building. The interviewees were invited amongst the 24 participants
being involved with the Leadership Development Programme within the
organisation. The material was collected with a digital voice recorder. For the
entry of the data the transcribing technique supported the stage to look for
patterns and mapping linkages.
3.4 Data Analysis
The researcher opted for the following five key steps in the analytical journey
suggested by Jane Ritchie et al.: design, sampling, data generation or collection,
analysis, reporting. Design: Miles and Huberman (1994) touched on the process
called ‘bounding and focusing’ at the beginning of the research project. At this
moment the questions were phrased by the researcher. Also, it was considered
how they would impact the study. The design questions mapped out the context
and the purpose of the further analysis. Sampling: to craft a sample design it
meant a set of assumptions related to existing empirical evidence and analytic
hunches.
During the process the researcher might need to rethink those assumptions.
Data generation or collection: it is worth to notice that the interactive methods
during the interviews generated implications of what happens during the
encounter.
For instance, asking why something happened or exploring personal motives, the
interviewer was determining the scope of the formal analysis to come. Formal
analysis: at this stage the researcher was aware of the analytic process, whether
to arrange ideas from the data or glean ideas in the literature. Nonetheless, if the
analysis has been evolving, the researcher should already have a solid perception
of how the data connect to the research question. Reporting: analysis does not
finish until the research report has been fully completed.
Table 1 Analytical Journey
3.5. Considerations, Reflections, Limitations
In terms of ethical implications, the interview process required to guarantee
anonymised references according to the requirements of the Data Protection Act
1998 as well as the confidentiality. When the participants were informed about
the research procedures then they gave their consent. Ryan (2011) stresses that
the accounts are not released by someone, but with someone. Therefore, the data
collected will be affected by cultural context besides the skill and methods used
by the researcher. The chances are high that the nature of data are unpredictable
as the participants are playing a role in shaping the meeting in terms of topic’s
direction, coverage and depth. Hence, as Bryman (2008) argues, the risk of
inadvertent disclosure or script deviation raises. The potential for bias has the
greatest chance in an in-‐depth interview if it is compared with other types of
interviews, such as a survey. It is likely to tend to please or impress, to create a
false personal image, or end the interview quickly.
Design Sampling Data
generation/collection
Analysis Reporting
Bounding and focusing Refinement Formal
Analysis Further
refinement
A pilot study with five in-‐depth interviews provided an earlier investigation to
test the research proposition. It led to a reduction in the number of questions.
Figure 10 Interview's Mapping: What, Why, How
WHAT Topics that will be investigated roughly for 5 min
WHY Case studies and its benefit for the interview and research
HOW Use of metaphors, analogies, storytelling and improvisation
Risk & Control To figure out how to minimize the risk (Pixar)
How do you seek challenge (for your team)?
Creativity IBM 2012 Global CEO study: creativity is the single most sought-‐after trait in leaders today
How can you help your team? Provide an example.
Motivation (Extrinsic & Intrinsic)
To grasp how to develop and create a culture of engagement & participation (Princess Margareth Hospital)
Insight from life experiences: How do you react when someone challenges you?
Abductive Reasoning – what could be
To stimulate that an original idea could be proved to be successful (FedEx, eBay, Google)
What steps do you take to seek out the unknown? What do you want to learn as you move forward?
Habits To value capabilities and resources, to look for holistic patterns (Nestlè confectionary story)
Strength, weaknesses. How are you willing to be wrong or right?
Intuition Challenge & values (P&G’s creation of the swiffer mop)
How does your development process inform what you/your team doing now?
Conclusion The research was brought forward considering how can Design Thinking
support organisational cultural change. Croydon Council work experience along
with the qualitative research questioned the perception of change in the
organisation. Change seemed to be seen as a hindrance to the usual smooth
running of the organisation, by its nature disruptive. Change is accepted when it
is disguised by the need to fix a problem. Consequently when someone proposes
some innovative change, they would first need to raise an awareness of a
problem. There is a culture of fear of engagement. A Design Thinking culture
does not champion failure. Instead its iterative design journey acknowledges that
it is unlikely to get things right in the beginning.
Recent studies from McKinsey on change programs show that (Benkert and Van
Dam, 2014) top organisations in any industry have already had to deal with
more constant change in this millennium than happened in the entire second half
of the last century.
Vast majority of the global companies have gone through more than one
technological and workforce rearrangement in the last ten years. The series of
change program one after another, it has pointed what they have had to
embrace. Automation and digitalisation, shared services and other
transformative innovations are the traits that business leaders must consider
constantly.
McKinsey research shows that two-‐thirds of business transformations do not
sufficiently meet their objectives. Programs show sometimes inconsistency in
meeting needs or are poorly executed. In most scenarios the sprain in the plan
has been capabilities. On the whole successful programs are those that output
needed capabilities.
Organisations make remarkable investments in learning and development, but
very little of it actually it focuses on behavioural change in the workplace. Like
change programs, learning and development challenges can lose sight of their
objectives for a variety of reasons, often in combination. The rationale of the
vision could have been misunderstood: key capabilities may have been
overlooked or the skills absorbed may have led to only a few on-‐the-‐job
applications. Participants may not be adequately informed of the reasons the
new skills are needed; the learning experience may be too abstract and unrelated
to the actual missions it is meant to serve. The effort, additionally, may not
identify the value of personal motivation or encourage a new attitude and mind-‐
set.
The cultural change is as much of a boundless concept as is present in our daily
life, especially in a work place. In the contemporary history, work organisations
and businesses stand in the popular imagination as the church or the military
once did. CEOs and entrepreneurs have conveyed as lighthouse of virtue. They
could mirror how to do well but also to point towards how to live a good life.
Thus organisations’ profiles are not just agents of what they make individuals do,
but also in terms of who they make people become.
Therefore, communication, as pointed out earlier in the literature review with
the Weber Shandwick report, needs to be embedded in context. We are moving
towards a world of context, it is not any longer just content. Multiple skills and
approaches might be required to assess this scenario within an emerging
collaborative culture in organisations.
In organisations currently there is not necessarily an expectation of loyalty.
Giampiero Petriglieri (Petriglieri, G., 2014), associate professor of Organisational
Behaviour at INSEAD, argues that “In today’s workplace two kinds of boundaries
have become less clear. First, it is the boundary between organizations and
sectors. People move around more than they used to. Second, the boundary
between what is personal and what is professional. People do not necessarily
expect or even desire to have their whole career in the same organization or
even country. That makes work more precarious. At the same time, people want
work to be an expression of who they are, of their true selves. This makes work
more personal.“
This personal research project intended to consider the Design Thinking toolkit
to support the initial stages of the organisational cultural change. At this stage it
might be difficult to have a clear direction, to create new teams and form a
budget. The research tested a Design Thinking approach as various methods.
They were investigated in the Croydon Council organisational change by creating
a workshop. The researcher specifically focused on questioning if some
methodologies were able to unlock intellectual agility. Storytelling, prototyping,
visualisation, co-‐creation were identified to reframe the problem in the
organisational cultural change.
Despite the absence of the workshop application along with its further insight,
this research urges to consider how the value of behavioural change can be a
driving force to create collaborative culture in the organisation. Design Thinking
is able to provide an inspiring journey to build a flux of ways of thinking and
doing. This practice can activate agility in the organisation to become nimble in
facing change.
Change is an agonistic process and the strategies that enable change, creativity
and innovation ought to be more aware of the socio-‐cultural context.
There are no universal prescriptions on how to handle change, creativity or
innovation. Finally, the research and the researcher strive for questioning how
today’s organisations need to become aware of a new paradigm in the work
environment.
Design Thinking can support cultural change in organisations. It shifts the
organisational focus on design that sheds light on authentic opportunities. These
can enlighten technology and evolve emotionally vibrant product and services.
This journey is not easy. Yet striving to help refine a workplace that people want
to be part of, one that enables responsive attitudes towards changing business
dynamics. Design is empathetic, it inherently drives a deeper thoughtful human
approach to the business world.
Park Lane, Croydon -‐ May 2015
!"#$%&'())%*+&,$-..%/)%&01&023&45%&(*&+0&,05%&26&7(+$&-&/%7&*8*+%5&01&-**%**5%/+&+$-+&+-9%*&,0..-'03-40/&*%3(02*.8!"&!!!"#$%&'()*%"+'(!&