Design thinking – a new mental model of value innovation

Purpose – As value innovation becomes a core top management concern, there is a growing recognition that “design thinking,” or the creative principles long associated with the design function, may now have something very significant to offer when applied more broadly to business management and strategy development. This paper aims to investigate this issue. Design/methodology/approach – The paper analyzes the techniques of Roger Martin, one of design thinking's most widely recognized advocates. Martin introduces a set of concepts that are not familiar to most managers: the knowledge funnel, the distinction between reliability and validity, and abductive reasoning. Findings – Using case examples of leading companies such as Proctor & Gamble, the paper shows how they have developed a capacity for design thinking. Research limitations/implications – The paper presents case reports. Practical implications – The paper provides a detailed description of how Proctor & Gamble and its CEO A.G.Lafley introduced and implemented design thinking. Originality/value – This is a unique exploration of value innovation in general and how design thinking can be a key capability for company leaders.