How Does Design Thinking Crush VUCA Problems?

What is VUCA? 🤷🏻♂️🤷🏻♂️

Design Thinking deals with COMPLEX problems called VUCA Problems.. 

First, we need to understand traditional problem-solving (non-VUCA): 

Deals with a very specific problem

Get a very specific answer

Using a specific formula

But know that 99.9% of all real-life problems do not deal with this (way of problem-solving)! 🤯🤯

Complex problems are VUCA in nature:

It is volatile.

It is uncertain.

It is complex.

It is ambiguous. 

VUCA has to be solved by Design Thinking because:

Volatility require an adaptable mindset to align rapidly changing demands.

Uncertainty require a spirit of learning and experimentation.

Complexity require a critical thinker that focus on the root of the problem. 

Ambiguity require empathy and deep insight of the situation and context.

Let's build on VUCA over the next few posts! Like this post to look forward! 

How do we crush VUCA problems? - Volatility (V) PART 1 🌪️🌪️

Volatility require an adaptable mindset to align rapidly changing demands. 

Teams employing Design Thinking understand that solutions must evolve rapidly in volatile environments. 

Especially in the financial or the e-commerce tech industry that I am in, things move pretty fast with the times. Financial institutions are paced with different macro-factors to move fast:

Digitalisation

Evolving Customer Demands

Competition From Non-Traditional Banks

Rise of Micro Business Models

Rise of Data and AI Personalisation

We need embrace change rather than resisting it, allowing for quick adjustments based on new information or shifting circumstances.

For example, in a volatile market where consumer preferences fluctuate frequently, the Design Thinking approach would mean that we need to continuously gather feedback and iterate on products and services to stay aligned with changing demands.

Design Teams navigate through volatility have frequent meetings to discuss changing demands and requirements while having an adaptable mindset. 

How do we crush VUCA problems? - Uncertainty (U) PART 2 🌩️🌩️

Uncertainty require a spirit of learning and experimentation.

Design Thinking thrives in uncertain environments by encouraging experimentation and learning through iteration- which will help you and I navigate through uncertainty.

Let's be real, nobody can predict the future. 

Instead of being paralyzed by uncertainty, we can actually use Design Thinking take small, manageable steps to explore potential solutions. 

They prototype ideas quickly, gather feedback, and refine their approach based on what they learn. By doing so, we take less risk and yet have multiple options. 

For instance, in an uncertain regulatory landscape, a company might employ Design Thinking approach to develop multiple prototypes for compliance strategies, testing each one iteratively until they find an approach that balances legal requirements with business objectives.

NTUC Income cultivate a spirit of testing and experimentation in their pursuit of innovation and digitalisation by ensuring the Prototype and Test Phase seriously.

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How do we crush VUCA problems? - Complexity (C) PART 3 🛠️🛠️

Complexity require a critical thinker that focus on the root of the problem. 

Design Thinking allow us to tackle complexity by breaking down problems into smaller, more manageable components. We think from the users point of view in a structured manner and make informed decisions.

Rather than trying to solve everything at once, we harness Design Thinking focus on understanding the root of the problem by asking really critical question techniques and to challenge status quo. We employ tools like Design Brief, HMW and Journey Mapping to break down and focus the problem. 

Be curious.

Gather and work together.

Look at the problem as a team.

Bring in your perspectives. 

Ask the layers of WHY.

Trust me, you will get to 'simplify' your complexity. 

For example, in a complex supply chain affected by pain points at couple of touchpoints, Design Thinking would involve mapping out the customer journey, identifying the pain points and collaboratively design resilient strategies to mitigate risks one at a time- in order to resolve the complexity of a big problem.

NTUC Income navigate through complexity by working together and look at the problem as a team.

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How do we crush VUCA problems? - Ambiguity (A) PART 4 💨💨

Ambiguity require empathy and deep insight of the situation and context.

Design Thinking confronts ambiguity by focusing on our customers and to reframe problems creatively. 

Remember the time when you feel ambiguous? 

It is because you don't know the users.

You don't know their needs.

You are unsure of their pain points or delighters. 

You can't make out what is the problem to solve. 

Instead of seeking clear-cut answers in ambiguous situations, we use Design Thinking approach to challenge with curiosity, be empathetic and be open to diverse perspectives. It presents opportunities for innovation and discovery. 

For instance, in an ambiguous competitive micro-insurance landscape where market trends are unclear, the Design Thinking approach might involve conducting ethnographic research to uncover unmet needs or latent opportunities, leading to the development of breakthrough in really good insurance business models.

Have you talked to your customers yet? 👨🌾👨🌾

NTUC Income navigate through ambiguity through talking to customers and understanding them.

Last Words

I will be adding more articles on Design Thinking, Strategy and Innovation throughout the year. Articles of these 5 Step Action Plan and Modern Soft Skills will be added periodically to give my readers a broader insights to how to crush complex problems, overcome future challenges and spot AI opportunities.

Check out more articles via my blog:https://www.emerge-creatives.com/blog-1

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About the Author

Daniel Ling is a regional ex-Design Leader turned educator, and business owner of Emerge Creatives, an registered SSG training provider (RTP) to deliver modern soft skills to professionals through Design Thinking, Business Strategy, and AI Innovation.

With over 15 years of experience in the financial and e-commerce tech industries- including key leadership roles at Lazada, NTUC Income, OCBC, and DBS- Daniel has led cross-regional design teams, built design functions from the ground up, and spearheaded large-scale transformation initiatives. But beyond industry success,

Daniel has reinvented himself as a “designer in a business suit”- equally fluent in creative strategy and commercial impact.

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https://www.emerge-creatives.com/entrepreneurship-business-planning

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https://www.emerge-creatives.com/wsq-ai-business-innovation-management

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