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By Luciana Paulise

Covid-19 has caused an economic crisis. According to a Mckinsey study, more than 20.5 million jobs have been lost in the United States since the start of the pandemic. In some cases, however, a crisis can present new opportunities. Design thinking can help you develop a disruption mindset.

Design thinking is a method of creative problem-solving that focuses on customer empathy. While it is usually applied to develop new products and services or make current products more appealing, the ideation process can be used to solve any problem. In the current unpredictable climate, design thinking can help companies address the financial crisis in a more empathetic and collaborative way.

There are many tools to create solutions, but the keys of design thinking are the focus on:

1) People: design thinking prioritizes empathy and the human aspect of the solution; it is a human-centered approach.

2) Processes: Making sure the idea is technically feasible

3) Business: financially viable.

Through a continuous trial-and-error process, ideas are tested quickly to ensure these three aspects are covered.

There are different ways to approach design thinking. The most simple is to divide the process into three stages: exploration, ideation, and implementation.

Exploration phase: observe and listen

A multidisciplinary team made up of people from varied backgrounds, such as designers, accountants, engineers or psychologists, observes human behaviour, considers a problem they have, and mulls a solution.

The team should have no more than ten members; the more diverse, the better: different backgrounds, ages, cultures, and seniority. Define together the major challenge facing the company; from high costs to employee engagement or a product that is now obsolete in the post-pandemic world. Then investigate what’s behind the problem. Explore the suppliers, the customers, the processes. Look at the details. For example, look into how the customer has changed their behaviour. Are they buying another product? Are they buying it differently? Ask questions. Take pictures, record answers and meet with the team to analyse the findings.

Ideation Phase: brainstorm multiple ideas

In the second phase, ideation or creation, think of how the team could solve the problem. Here is where the tool SCAMPER is very useful. As per The Innovation Answer Book by Teresa Jurgens-Kowal, SCAMPER is an acronym used to trigger alternate associations of existing solutions in addressing a problem. Use it to find different approaches to the problem. It can be like a virtual brainstorming.

Substitute: can you substitute or exchange parts, material or components of the existing solution? Many companies, for example, are replacing permanent human resources and employee development departments with consultants to reduce fixed costs and improve training quality. Other companies are taking the opposite approach and using current employees to do jobs that would otherwise go to a contractor in order to reduce project costs.

Combine: can you combine different steps or processes? Telehealth is a solution that is combining experts, new technologies like Zoom or Facetime and apps to make health checks more affordable and accessible. Another combination in manufacturing is TPM (total productive maintenance), which combines the skills of the maintenance department and operators to prevent problems and reduce idle hours.

Adapt: can you adjust a specific task or product for better output? Many ideas in a company were ideated during informal conversations. Working remotely that kind of interaction is less frequent or not possible. Many companies have created virtual spaces where employees can meet. From an informal breakfast on Zoom to Slack channels, or specific tools like StarMeUP, these intimate connections can still be promoted only by making small adjustments to the current communication process.

Modify, minimize, or magnify: how can you adjust the whole process? Two-hour meetings online are more disengaging than face-to-face gatherings. Can you minimize them to a 30-minutes meeting? Or can you turn 4-hour learning modules to 15-minutes smaller pieces that can be delivered online?

Put to another use: use products for another purpose, recycle waste or choose a different target market. Let’s take Airbnb. It has a booking system that is now almost obsolete because nobody can travel. Can Airbnb pivot their system to provide home-office spaces for parents that need to focus? Can single people rent rooms or desks during the day through the same app?

Eliminate: this is my favourite, so simple and still so hard to accept. Can you remove parts or eliminate unneeded resources to improve a process? How many things were you keeping that now seem irrelevant? Have you found yourself noting you didn’t need broken tools, old-fashion clothes or duplicated steps? Use the 5S method to sort needed from unneeded. Now not only booking rentals but also a doctor or coaching appointments have gone online, eliminating the process of waiting or various emails back and forth discussing the best time for a meeting.

Reverse: rearrange parts or reverse the process. The command and control process would require the C-suite to come up with solutions for problems. Now, agile teams require that solutions come from the bottom-up. The ones that know the processes better are the employees, why not let them figure it out? It is the first change to a successful design thinking.

Implementation: iterate until you solve the problem

And the last stage is implementation. At this point, you should have tons of ideas. Ten team members by 7 Scampers, that’s around 70 ideas minimum! Prioritize and test these ideas quickly. Use pilot teams or focus groups to try them out and see what works best. Contact a coach to help you facilitate meetings to make them more effective if needed. Iteration is part of the process, so implement them right away and make adjustments as needed.

In Japanese, to write the word crisis they use two signs: danger and opportunity. Maybe, this is the time for your company to fight the threat and find creative ways to unleash this opportunity.

Feature Image Credit: BY MIGUEL Á. PADRIÑÁN FROM PEXELS

By Luciana Paulise

I am Lu Paulise, culture coach, speaker and author. I am an MBA, Quality Engineer and Certified Scrum Master. As a passionate book writer, I regularly contribute to Forbes as well as other multiple international media outlets such as ThriveGlobal.com, Medium and Infobae in Latin America. As the founder of Biztorming Training & Consulting LLC and TheWeCulture.com, I have helped a wide range of companies, from small businesses to Fortune 100 companies, to transform their culture to become more agile, engaged and innovative. I also enjoy giving back to the community participating in non-profits. I am currently Regional Deputy Director for the ASQ and VP of Innovation for the Argentina-Texas Chamber of Commerce. I live in Texas, and I also speak and write in Spanish.

Sourced from Forbes

By Megan Graham

KEY POINTS
  • Though advertising spending has struggled in recent months as a result of the coronavirus pandemic, a new forecast says the impact won’t be quite as dire as it was during the financial crisis.
  • In a new report released Tuesday, GroupM said it expects U.S advertising to decline 13% during 2020 (excluding political advertising, which varies greatly on election years), compared to the 16% drop seen during the 2009 financial crisis.
  • “That we ‘only’ expect a 13% decline is surprising,” the report says. “We might normally expect that because the 2020 economic decline is so much worse than 2009, advertising should be much weaker.”

Though advertising spending has struggled in recent months as a result of the coronavirus pandemic, a new forecast says the impact won’t be quite as dire as it was during the 2009 financial crisis.

A new U.S. mid-year report released Tuesday from GroupM, advertising holding company WPP’s media agency arm, shows how the outbreak of Covid-19 changed the group’s expectations, originally forecasted advertising to grow 4% this year. GroupM now expects U.S advertising to decline 13% during 2020 (excluding political advertising, which varies greatly on election years), compared with the 16% drop seen during the 2009 financial crisis.

Brian Wieser, GroupM’s global president for business intelligence, said the ad market’s decline is abating after an “initial freefall” that impacted ad spending beginning in March.

“That we ‘only’ expect a 13% decline is surprising,” the report says. “We might normally expect that because the 2020 economic decline is so much worse than 2009, advertising should be much weaker.”

But, it says, there are differences between the two situations. In 2009, declines played out over months and a wider range of businesses were gradually and severely impacted. In 2020, the stoppage in March of conventional in-store retail activity “ground to a halt, as did tourism, hospitality and place-based entertainment industries.”

Most other economic activity continued, however, and retail companies worked out strategies for pickup or delivery.

“Going back to mid-March, it was absolutely the case that if you could cut your spending, you did,” Wieser told CNBC. But shortly after, marketers figured out how to adapt.

“As we’ve seen, so many parts of life have just continued differently,” he said. “We’re still buying our food, we’re just doing it in higher concentrations and from fewer places, and buying more products online. Instead of taking a road trip vacation, we’re buying 72-inch flat-screen TVs. The bulk of the economy has continued to operate, not normally, just differently.”

Wieser also pointed out that where impact has been most profound has been concentrated in areas of the economy that aren’t as intense in advertising, giving restaurants and bars as an example.

“It’s not that they don’t spend money in advertising, just less than other categories,” he said.

Wieser said that declines in global ad revenue from Google and Facebook were also more modest than expected in April. Plus, the group expects businesses of all sizes will transition online more aggressively, leading the group to forecast digital advertising to decline only by 3% during 2020, or to be flat including political advertising.

GroupM expects total TV advertising to decline by 7% in 2020, with national TV declining around 11% in 2020. Local TV will see an estimated decline of 34% because of the weakness in local retail and automotive advertising, though it will grow 1% when including political advertising.

It expects the segment of players like Roku and Disney-owned Hulu that offer primarily professionally produced TV in digital form to fare “much better,” with only a 3% decline in 2020.

But the report said that much uncertainty persists and that though markets and corporate decision makers are showing improving confidence compared with mid-March, we’re still in what’s considered to be the “first wave.”

IPG Mediabrands’ Magna, which is part of Interpublic Group, also released an updated forecast Monday. The group said it estimates global ad revenues will decrease by an estimated 7% in 2020 as a 16% decline in linear ad sales is aided by a 1% growth in digital.

Magna expects the global economy will recover in 2021 after the “pandemic leads to the worst economic downturn ever” in 2020, while major sporting events like the Summer Olympics and UEFA Football Championship will help spur a recovery in marketing budgets and ad spending.

Feature Image Credit: Angela Weiss | AFP | Getty Images

By Megan Graham

Sourced from CNBC