This is a talk I gave to the IASA follow-the-sun community. It deals with the combination of the design thinking, architecture thinking and agile thinking disciplines into a combined discipline needed to create the a responsive organisation.

1. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 1
Building Coherent
Organizations
Mixing Design, Architecture and
Agile to Deliver more value
IASA FOLLOW THE SUN PRESENTATION

2. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 2
Speaker Introduction
The Name The Current Roles The Past RolesThe Mug
Craig Martin
Melbourne
Australia

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CHALLENGES: A HISTORY OF FAILURE
An imperfect planning
& execution cycle
One-third of firms fail
to achieve expected
results from annual
strategic plans.
More than half of all
business projects fail.
Forty-six percent of
business failures stem
from misguided strategies.
*Research: Corporate Executive Board
• Insight, strategy and planning
disciplines are often misaligned
• Support functions are often
misaligned
• Planning and Execution
disciplines are misaligned

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CHALLENGES: BUSINESS ALIGNMENT
The value creation engine
of the business is often
misaligned
• Coherence produces greater
returns;
• There is inconsistency in the
understanding of the value and
how its created;
• Misaligned planning and
execution disciplines don't speak
the same language;
• Agile has exacerbated the
challenge since the loss of
coherency occurs at a faster pace;

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CHALLENGES: CONTINUAL IMPROVEMENT
Reducing errors and
improving insight
• Due to discipline incoherency, the
feedback of results, to facilitate decision
making, is also unreliable, disparate,
and itself fragmented;
• StratOps is needed to help reduce the
delay in the feedback cycle;
• This improves business performance
and decision making by:
− Increasing the number of coherent
insights
− Reducing errors that occur across
silos

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CHALLENGES: DISCIPLINE ALIGNMENT
Misalignment across the
business disciplines
• Multiple roles support the business in
pursuing its outcomes.
• Each role produces and consumes
business related information;
• Each role uses its own set of disciplines,
tools and techniques;
• There is very little alignment between
these disciplines, which often results in
poorly aligned organizations and
ultimately failed benefits realization.

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CHALLENGES: DELIVERY ALIGNMENT
Shifting the burden, and
cost down the lifecycle
• Inconsistent design of the business, results in a
shifting the burden culture, where just enough
work is done in the planning disciplines to be
useful for strategic insight but not for delivery
of outcomes into the development and
operations layers;
• The ”ownership” of fixing it is passed down the
lifecycle, increasing cost as it moves
downwards;
• It is left to the technology disciplines to try and
provide coherency at the technology level.
• This costs 8x more in integration costs and up
to 12x more in development fees;

8. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 8
Discipline Confusion CHALLENGES
STRATEGIC
PLAN
MARKETING
PLAN
OPERATIONAL
PLAN
DELIVERY &
EXECUTION
OPERATIONS
Planning Delivering Operating
PORTFOLIO, PROGRAM AND PROJECT
MANAGEMENT
BUSINESS ARCHITECTURE
ENTERPRISE ARCHITECTUREPRODUCT & SERVICE DESIGN
BUSINESS PLANNING SOLUTIONS ARCHITECTURE
SOLUTIONS DEVELOPMENT
ENTERPRISE DESIGN
BUSINESS ANALYSIS
Environment analysis / SWOT,
competitor / Business motivation /
Product and portfolio analysis /
Strategic Options
Market analysis and forecasting Model the business / Evaluate and
select strategy / Risk and funding
analysis
Project, portfolio and program
management, solutions delivery
Daily operations, run the business
There is often confusion around which disciplines are used for what
situations

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Shifting Ages CHALLENGES
Six Senses
Design
Story
Symphony
Empathy
Play
Meaning

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Accelerating from mystery to algorithm HOW ARE PROBLEMS SOLVED?
Unresolved Business
Challenges
Rules of thumb
Robust, repeatable
and replicable
formulas & processes
* From Roger Martin (2009) The Design of Business
MYSTERY
HEURISTIC
ALGORITHM
T h e K n o w l e d g e F u n n e l
This is the lean start-up space
This is the exploitation and
industrialization space
GOAL: Exploitation;
Reliability
Produce consistent,
predictable outcomes
A reliable system will
produce the same test
results every time
GOAL:
Exploration; Validity
Produce outcomes that
meet an objective
A valid system will
produce a result that is
shown, through the
passage of time, to be
correct

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THE KNOWLEDGE
FUNNEL
Non-core but complex -
Outsource
Innovation, chaos &
unresolved mysteries
HIGH
HIGH
LOW
LOW
Must be done but adds little value to
product or services
Very important to success, high value added to
products and services
STRATEGIC IMPORTANCE & VALUE
COMPLEXITYANDDYNAMICS
Complex negotiation, design,
or decision process
Many business rules;
expertise involved
Some business rules
Procedure or simple
algorithm
Non -Core
Capabilities
Core Differentiating
Capabilities
Everyday, highly
repeatable and
automated
Make repeatable and
reliable to gain efficiency
Core Competitive
Capabilities
Industrializing at speed HOW ARE PROBLEMS SOLVED?
Source: Adapted from “Business Process
Change” by Paul Harmon
GOAL: Reliably produce
consistent, predictable
outcomes
GOAL: Validity- Produce
outcomes
that meet desired
objectives
People Dominance
Process Dominance
Technology Dominance
The Challenge is reducing the time it takes to move from the unresolved business challenges space to the repeatable
formulas space.

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Growing or Shrinking? HOW ARE PROBLEMS SOLVED?
Non-core but complex -
Outsource
Innovation, chaos &
unresolved mysteries
HIGH
HIGH
LOW
LOW
Must be done but adds little value to
product or services
Very important to success, high value added
to products and services
STRATEGIC IMPORTANCE & VALUE
COMPLEXITYANDDYNAMICS
Complex negotiation,
design, or decision process
Many business rules;
expertise involved
Some business rules
Procedure or simple
algorithm
Non -Core
Competencies
Core Differentiating
Competencies
Everyday, highly
repeatable and automated
Make repeatable and
reliable to gain efficiency
Core Competitive
Competencies
Non-core but complex - Outsource
Innovation, chaos &
unresolved
mysteries
HIGH
HIGH
LOW
LOW
Must be done but adds little value to
product or services
Very important to success, high value added
to products and services
STRATEGIC IMPORTANCE & VALUE
COMPLEXITYANDDYNAMICS
Complex negotiation,
design, or decision process
Many business rules;
expertise involved
Some business rules
Procedure or simple
algorithm
Non -Core Competencies
Core Differentiating
Competencies
Everyday, highly repeatable and
automated
Make repeatable
and reliable to gain
efficiency
Core Competitive
Competencies
OPPORTUNITY
OR THREAT?
Democratisation of knowledge
the commodity space is growing, making the differentiation space more
competitive

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Moving through the funnel across and problem and solution landscape HOW ARE PROBLEMS SOLVED?
Unknowable:
The relationship between cause
and effect is impossible to determine
as they constantly shift. In chaos, it is
necessary to act first and then sense
through the result of action how to
further respond. Understanding the
problem comes later. This is the
domain of rapid response.
Example: Natural disasters
Unknown Problems:
The problem is in constant flux as a
change to the situation causes ripple
effects and unpredictability
in other aspects. Information is often
incomplete. Rather than
implementing a solution, devising a
concept, testing, iterating and then
responding is needed. Problems often
become complex when human
behavior is a significant factor. This is
the domain of emergence.
Example: Schooling experiences,
organizational change management,
traffic management
Known unknowns:
A complicated problem can have multiple
right solutions. Complicated problems are
understood, analyzed and then responded to.
It often requires expertise to solve and is
largely process driven. Solving a complicated
problem often requires the right expertise
along with the right tools. In this realm you
may know you have a problem but may not be
able to solve it alone. This is the domain of
expertise.
Example: Fixing a car, constructing an airplane.
Known knowns
A simple problem is one of cause and effect.
The solution is rarely disputed. The problem
can be categorized, understood and a response
devised based on the information. This is the
domain of best practice.
Example: 1+1 = 2, solving a jigsaw puzzle.
The Knowledge /
Innovation funnel
* ‘A Leader’s Framework for Decision Making’ David Snowden & Mary Boone

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A Multi-Disciplinary Journey HOW ARE PROBLEMS SOLVED?
* From Roger Martin (2009) The Design of Business
MYSTERY
HEURISTIC
ALGORITHM
T h e K n o w l e d g e F u n n e l
Design Thinking
Architecture Thinking
Agile TM Thinking
No single discipline can
traverse the funnel, it is a
multi-disciplinary journey.
THEAGILEORGANIZATION

15. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 15
Utility
(Foundation)
Innovate
Build
Advantages
Assemble
Prolong
Advantages
Mix
Reduce
Disadvantages
Find the super mixers HOW ARE PROBLEMS SOLVED?
Mixing thinking becomes essential

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Creating a Blend of Thinking. The origins of Design Thinking HOW ARE PROBLEMS SOLVED?
Analytical
Thinking
Intuitive
Thinking
100% Reliability 100% Validity
Design
Thinking
From: ‘The Design of Business’, Roger Martin (2009)

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Design
Thinking
Put the person in the
center
Architecture
Thinking
Put the business in
the center
Hybrid thinking focusses on a blended approach to the problem space HYBRID THINKING
Agile
Thinking
Put delivery in the
center
Coherency
(Hybrid thinking)

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Business Planning
Project Management
Agile Delivery
Design Thinking
Human Centered Design
Psychology and
behavioral analysis
Strategic Planning
Business Design
Business Model Innovation
Hybrid thinking focusses on utilizing the strengths from multiple disciplines HYBRID THINKING
Desirability
What is valuable to
people?
Viability
What can you sell?
Feasibility
What can you
implement?
Starts
Here
Starts
Here
Business Architecture
Business
Design
Service
Design
Capability
Design
The three lenses must be aligned at a business
model level, marketing mix level, products
and service model level and operating model
level

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When is Design Thinking Appropriate? DESIGN VS ANALYTICAL METHODS

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Start with Desirability:
A Design Process : Double Diamond Extended
Discover Define
Understanding Solutioning
1
Planning &
Preparation
2
Exploration &
Understanding
4
Concept Generation
& Early Prototyping
5
Evaluation
Refinement &
Production
6
Launch &
Monitoring
Synthesis & Design
Implications
3
Develop DeliverPrepare Launch
Point of
View

21. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 21
Four Orders of Design
Graphic Design
Visual Design
Communications Design
Product Design
Industrial Design
Engineering
Architecture
Fashion Design
Service Design
UX Design
Instructional Design
Process Design
System Design
Business Design
Organisational Design
Culture Design
Capability Design
4th
systems
3rd
interactions,
experiences
2nd
objects,
artefacts
1st
signs,
symbols
Low
complexity
High
complexity
*Richard Buchanan 1992: Wicked Problems and Design Thinking

22. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 22
Merging design with architecture and agile DESIGNING BUSINESSES OF THE FUTURE
Read more here

23. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 23
Cycling through the Problem Synthesis Model HYBRID THINKING APPROACH
Proved
Concept
Opportunity
Evidence of
the problem
Insight
Abstract
Concrete
Problem
Solution
Problem
framing
Researchand
synthesis
Ideation
Prototyping
This is the approach
you would follow to
identify the sweet spot
within desirability,
viability and feasibility

24. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 24
Iteration through the Synthesis Model HYBRID THINKING APPROACH
DI Design Iterations
(Across all Orders)
Desirability Driven: Customer and human
outcomes.
SP
Strategic Planning Iterations
(Across all Orders)
Viability Driven: Business and Market
outcomes.
BP
Business Planning Iterations
(Across all Orders)
Feasibility Driven: Organization and financial
outcomes.
BA Business Architecture Iterations
(Across all Orders)
Coherency Driven: Capability and resource
outcomes
Hybrid thinkers merge
the thinking from the
various disciplines to
create coherent
outcomes

25. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 25
Proved
Concept
Opportunity
Evidence of
the problem
Insight
Problem Synthesis Model SIMPLE SECOND ORDER EXAMPLE
Abstract
Concrete
Problem
Solution
”I need a hole”
Paint
the
wall
“Drill a hole to hang a
picture”
“ I am
embarrassed of
my home when
entertaining”
Buy new
furniture
Hang
the
picture
Move

26. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 26
Proved
Concept
Opportunity
Evidence of
the problem
Insight
Problem Synthesis Model COMPLICATED THIRD ORDER EXAMPLE
Abstract
Concrete
Problem
Solution
Month End
reporting
timelines and
decisions
Penalties
Develop EDW and BI
capability
80% of the delay
was in the
executives
“fixing” the
numbers Focus on
time not
accuracy
EIS
Gamify
Executive
Leader board
Frame problem around time not
accuracy. Human centred approach as
opposed data centred approach

27. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 27
Proved
Concept
Opportunity
Evidence of
the problem
Insight
Problem Synthesis Model COMPLEX FOURTH ORDER EXAMPLE
Abstract
Concrete
Problem
Solution
”The Crime rate
is too high”
Implement
1am lockout
“Put more police on the
streets”
“5% of all violent
crime, is alcohol
fuelled and from
pint glasses being
used as weapons”
Ban Alcohol
in high
crime areas
Reduce injuries
from using glass
as a weapon
The ultimate
pint Glass

28. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 28
Using Hybrid Thinking to Develop Services SUPER MIXERS FOR SERVICE DESIGN
C O S T
V A L U E
5%
15%
80%
LEADING PRACTICE RESEARCH, 2011/2012
THE
ENVIRONMENT
BUSINESS MODEL
Markets
Industries
Customers
Market Segment
Channels
Customer Relationships
Value Proposition
Offering: Services/Products
Processes/ Value Chains
Capabilities
Business Service
Functions
Data
Applications
Technology
MARKET
MODEL
OPERATING
MODEL
PRODUCTS &
SERVICES
MODEL
Person Centred
HCD

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Aligning Service and Experience Design with the Business Model SERVICE DESIGN OUTCOMES
Value System
BUSINESS MODEL
Markets
Industries
Customers
Market Segment
Channels
Customer Relationships
Value Proposition
Offering: Services/Products
Processes/ Value Chains
Capabilities
Business Service
Functions
Data
Applications
Technology
MARKET
MODEL
OPERATING
MODEL
PRODUCTS &
SERVICES
MODEL
CAPABILITY
TECHNOLOGY
BUSINESS
VALUE
VALUABLE
MEANING
PROCESSEMPLOYEES INFORMATION
APPLICATIONS DATA TECHNOLOGY
CUSTOMER
PERFORMANCE
EXPERIENCE
PROBLEMS PAINS / GAINS
SERVICE/S
VALUES
- Duration
- Breadth
- Interaction
- Intensity
- Triggers
- Significance
PRICE to
EXCHANGE
PLACE to
EVERYPLACE
PROMOTION to
EVANGELISM
PRODUCT/S
Human
Centred
Combining business design with
experience design, service design
and capability modelling

30. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 30
Designing for Growth THE DESIGNCHAIN APPROACH
ü DESIREABLE FOR
CUSTOMERS
ü FINANCIALLY VIABILE FOR
THE BUSINESS
ü FEASIBLE TO DELIVER
Business Model
Innovation
“What's possible?”
Business
Strategy
“What will we do?”
Operating
Response
“What's the Blueprint
to for the fastest
delivery with the least
amount of effort?”
Business Model
“What does it look like”
Understanding
value
“What value can we
create for our customers
and capture for our
business?”
Creating growth through innovative
business models
Testing viability of business models
against the industry patterns and your
own organization
Understanding the right
levers to pull to create and
capture value
Building and planning the
engine of delivery

31. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 31
10:20:70 Principle DESIGNCHAIN SERVICE OFFERING: TRAINING
Design in Business
Course
(Using design thinking to
complement the other disciplines
of analysis, architecture and
planning, to help them be more
human centred in their approach)
Business By Design
Course
(Blending design thinking with architecture and
agile thinking to support disruption and business
model innovation situations.)
*Richard Buchanan
www.designchain.co
Designing with
AgileTM
(Using design thinking to be more
human centred in thinking and
approach. Blended with AgileTM to
be more efficient and delivery
centred)
DesignChain follows a blended
approach to training with
clients. We support the 10:20:70
approach to building capability
and improving learning
outcomes

32. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 32
Decide, adapt and grow faster
INSIGHT
What we do: We provide insight into customers,
disruptive and emerging trends, and how they
might affect your customers and your
organization.
How we do it: We use human centered design
and market analysis tools to surface new
insights and growth opportunities.
Outcome: You will have greater insight into
hidden opportunity areas. You will have
identified, and tested, growth and improvement
areas. You and your organization will become
smarter. You will be able to determine whether
or not change is needed.
DESIGN
What we do: We help you determine the most
appropriate responses to change. We show you
how best to mix your business resources to
deliver the right value to your customers and
your shareholders.
How we do it: We play out disruptive, strategic,
tactical and operational prototypes across your
business landscape, and test them against the
right outcomes
Outcome: You will choose the strategic option
that is best for your customer and organization,
and reduce failure from misguided strategies.
DELIVERY
What we do: We help more of your
projects succeed and deliver tangible
business outcomes.
How we do it: We do this by closing the
gap between planning and results, and
results and corrective action.
Outcome: This means that designed and
planned results are more likely to be
achieved, and the organization can make
corrective changes sooner rather than
later, preventing cost overruns and costly
repeat decisions.
CHANGE
What we do: We help you and your
customers adapt to change more
effectively.
How we do it: We influence the habits of
your customers and staff through
advanced behavioural methods and
technologies.
Outcome: Improved employee
engagement. Increased customer
advocacy & lifetime value. Reduced cost-
to-serve.
What we do DESIGNCHAIN

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Q&A