Merging Design Thinking and Lean Startup

The recent events have put a spotlight on the digital transformation efforts of many companies. The increased focus on innovation, new ways of working and new technologies highlights innovation methodologies that are being used to fuel the transformation. With more and more professionals being introduced to terms such as Design Thinking, Lean Startup, MVP, pivot, agile and others, there is a risk to use these terms interchangeably and fall victim to a methodology bias. 

In this article I want to focus on the difference between Design Thinking and Lean Startup and answer the question of when to apply which methodology and why.

Recap: What is Design Thinking?

Design thinking is a set of creative strategies that designers use during the process of identifying problems and designing solutions. The methodology revolves around a deep interest in understanding the needs of the user, challenging assumptions and redefining problems. 

While there are many variants of design thinking processes in use today, they all embody similar principles that were described by Nobel Prize winner Herbert Simon in 1969. The model shown above is a five-phase model proposed by the Hasso-Plattner Institute of Design at Stanford which is at the forefront of applying and teaching Design Thinking today.

The value of Design Thinking lays in empathizing with the user and defining their problems as an initial step. The development and consideration of a large number of relevant solutions, before deciding what to build, greatly reduces the risk associated with bringing new ideas to market.

Recap: What is Lean Startup?

The lean startup methodology was first proposed by Eric Ries in 2008 but the core ideas date back on Toyota’s lean production system. The lean startup is essentially an approach to rapidly test ideas with the aim to achieve product market fit for a Minimum Viable Product (MVP). The core of the methodology is formed by a build-measure-learn feedback loop which facilitates the process of turning assumptions into validated learnings. 

The first step of the model is to develop a MVP to kick-start the process of validated learning. Once a MVP is established, teams test the assumptions they made about the MVP and gather evidence and data they acquire from running various experiments. The data gathered supports evidence-based decision making and validated learning which ultimately informs the next build-measure-learn cycle. The idea is to repeat this cycle until the product/service has reached a maturity in which it adequately addresses the needs of the target market.

While both methodologies address the building of potential solutions through MVPs (Lean Startup) or Prototypes (Design Thinking), the Lean Startup provides additional value in this step of the process. Its focus on rapidly turning proposed solutions into business models, backed by user tested assumptions greatly improves the ability to learn from mistakes and iterate towards product market fit.

Merging Design Thinking and Lean Startup

Design Thinking and Lean startup do not contrast each other but are in fact interconnected parts in the innovation process. While Design Thinking focuses on user empathy and problem understanding, the Lean Startup builds on these insights and turns them into functioning business models.

Dan Olsen has introduced a further differentiation by defining a “Problem Space” and a “Solution Space” which connect the two methodologies as part of a larger innovation strategy rather than isolated methodologies.

The Problem space focuses solely on the needs of the user that require addressing. The best and most successful innovations all solve a unique user problem, with a strong focus on user empathy and problem understanding, Design Thinking plays mostly in this space.

The Solution space addresses the specific implementation or design to address a user need. The Lean Startup, which focuses on rapid value capture, lives in this space, along with other methodologies such as Agile.

Final Thoughts

The combination of Design Thinking and Lean Startup is a powerful approach that does offer considerable flexibility. Using the strengths of both methodologies, you can increase your likelihood of developing problems into valuable solutions. It is however important to keep the problem/solution space in mind to determine the most suitable methodology for every step of the process and avoid a premature move into the Lean Startup approach.

Additionally, Design Thinking and Lean Startup do not only support the development of better products but they also unlock people’s potential to create impact, be creative and provide their own ideas and thoughts. As employee retention and experience are gaining importance, companies might be well inclined to start experimenting with these methodologies to set themselves apart from their competition.

It is important to mention that any views or opinions represented in this article are personal and do not necessarily represent those of people, institutions or organizations that I may or may not be associated with in personal or professional capacity, unless explicitly stated.