Page 132 - Fundamentals of Management Myths Debunked (2017)_Flat

CHAPTER 4 • Foundations of Decision Making 131
design thinking
try it! Approaching management problems as designers
If your professor has assigned this, go to the Assignments section of mymanagementlab.com to approach design problems
complete the Simulation: Decision Making.

Prisma Bildagentur AG/Alamy Apple—a great example of how design thinking

benefits an organization.

undErSTAndIng dESIgn ThInkIng. The way managers approach decision making—
using a rational and analytical mindset in identifying problems, coming up with alterna-
tives, evaluating alternatives, and choosing one of those alternatives—may not be the best
and certainly not the only choice in today’s environment. That’s where design thinking
comes in. Design thinking has been described as “approaching management problems as
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designers approach design problems.” More organizations are beginning to recognize
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how design thinking can benefit them. For instance, Apple has long been celebrated for
its design thinking. The company’s lead designer, Jonathan “Jony” Ive (who was behind
some of Apple’s most successful products including the iPod and iPhone) had this to say
about Apple’s design approach, “We try to develop products that seem somehow inevitable.
That leave you with the sense that that’s the only possible solution that makes sense.” 50
While many managers don’t deal specifically with product or process design decisions,
they still make decisions about work issues that arise, and design thinking can help them be
better decision makers. What can the design thinking approach teach managers about making
better decisions? Well, it begins with (1) the first step in the decision-making process of iden-
tifying problems. Design thinking says that managers should look at problem identification
collaboratively and integratively with the goal of gaining a deep understanding of the situ-
ation. They should look not only at the rational aspects, but also at the emotional elements.
Then invariably, of course, design thinking would (2) influence how managers identify
and evaluate alternatives—steps 2 through 5 in the decision-making process. A traditional
manager (educated in a business school, of course) would look at the alternatives, rationally
evaluate them, and select the one with the highest payoff. However, using design thinking, a
manager would say, “What is something completely new that would be lovely if it existed but
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doesn’t now?” Design thinking means opening up your perspective and gaining insights by Design thinking leads the strategic decisions
of Jack Dorsey, co-founder of Twitter and
using observation and inquiry skills, and not relying simply on rational analysis. We’re not CEO of Square, a mobile payments processor
saying that rational analysis isn’t needed; we are saying that there’s more needed in making for smartphones and tablets. Dorsey used
effective decisions, especially in today’s world. observation and inquiry in deciding to
start a company based on the idea that
people needed an easy way to make
payments in person.
Big data is changing the way
managers make decisions.

Big Data Understood.
• Amazon.com, Earth’s biggest online retailer, earns
billions of dollars of revenue each year—estimat-
ed at one-third of sales—from its “personalization
technologies” such as product recommendations
and computer-generated e-mails. 52
• At AutoZone, decision makers are using new soft-
ware that gleans information from a variety of
databases and allows its 5,000-plus local stores to
target deals and hopefully reduce the chance that
customers will walk away without making a pur-
chase. AutoZone’s chief information officer says,
“We think this is the direction of the future.” 53
Bloomberg/Getty Images