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Design Thinking and Organizational Development – Twin concepts enabling a

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Design Thinking and Organizational
Development – Twin concepts enabling a
reintroduction of democratic values in
organizational change?
Magnus Eneberg
Department of Design Sciences, Lund University, Sweden
[email protected]
Lisbeth Svengren Holm
The Swedish School of Textiles, Borås, Sweden
[email protected]

Abstract
Design Thinking is a rather new concept for increasing innovation capabilities in organizations.
Organizational Development is a concept from the 1950s aiming at modernizing organizations
through participatory methods. As organizations struggle with constant change and to become
more innovative we will compare and discuss design thinking and organizational development
and explore what we can learn from these concepts that have many similar aspects. Design is
argued to be moving into new territories, changing its focus towards the ideas that organizes a
system or environment (Buchanan, 2001). At the same time there are clear resemblances to new
organizational development not the least regarding participatory methods (Eneberg, 2012). In
this paper we describe the ontological and epistemological development of organizational theory,
change, and development with the aim to discuss the role of design thinking as an enabling
concept in the revitalization of organizational development that includes a reintroduction of
democratic values in organizational change.

KEYWORDS: organizational change, organizational development,

ambiguity, enabling design

Introduction
There is a struggle to ensure that Organizational Development (OD) is not considered a
management fad and a historical parenthesis. Organizational Development emerged as a

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movement in the 1950s based on participatory methods and active involvement of employees of
the organization. It was envisioned that OD would democratize life in organizations (Greiner and
Cummings, 2005). This would be achieved by implementing changes through action and
empowerment, which in turn would lead to economic return in the organizations applying it
(Werkman, 2010; Marshak and Grant, 2008; Bradford and Burke, 2005). OD diminished in
importance in the 1980s and 1990s when change management, which proposed change that was
planned and led by top management, grew in popularity (Argyris, 2005). New knowledge was to
be implemented in organizations rather than co-created. Today several researchers (see for
instance Clegg, 2005; Bradford and Burke, 2005; Marshak and Grant, 2008) mean that a new OD,
still based on its basic principles of democracy and empowerment, could provide a valuable
concept for the need of today’s companies.

Design thinking has become a popular concept in recent years not the least in business press
(Carmel-Gilfilen and Portillo, 2010; Martin, 2010; Leavy, 2010; Ungaretti et al., 2009; Brown,
2008; Boland et al., 2008). One reason for the increased interest in design thinking may be that it
is argued to be a powerful force for innovation (Verganti, 2009; Cooper and Press, 2001; Bruce
and Bessant, 2002). As organizations struggle with constant change and a need to become more
innovative it would be valuable to compare the two concepts and discuss whether both design
thinking and organization development could support democratic values and an innovative
development of companies facing new challenges.

Design is argued to move into territories focusing on the idea that organizes a system or
environment (Buchanan, 2001) and has certain resemblances with organization development. At
the same time, design thinking, just as organizational development is at risk to disappear as one
among other management fads (Johansson and Woodilla, 2010). Design thinking is an ambiguous
concept that can be used with different meanings and in different contexts. In this paper it is
defined as a human cantered approach to problem solving that is erasing the distinction between
thinking and action (Kimbell, 2011). The focus in this paper, which is based on a literature study,
is on the characteristics of design thinking and how it can be used as an organizational “resource”
in the context of organizational development. The purpose is to discuss theories and historical
development of organizational change and development. An initial discussion is presented on
design as an enabling concept and how this can be part of the revitalization of OD as a concept
with aspirations to democratize organizations. The arguments presented in this paper are
currently being explored in an empirical study.

Organization theories
Organization theories embrace different perspectives based on diverse epistemological and
ontological assumptions. Hence, the phenomenon we call “organization” or “the process of
organizing” is understood and explained in different ways. Hatch (2006) divides organizational
theory into modernist, symbolic interpretivist and post-modernist perspectives. This categorization should,

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of course, not be understood as an evolutionary process where different theories replace each
other; instead, these perspectives coexist in different contexts and combinations.

Modernist organizational theories consider the organizational environment as something that

exists outside the boundaries of the organization, providing it with input such as resources and
absorbing outputs such as products (Hatch, 2006). Nonaka (2004) argues that this leads to a view
of organizations as closed systems that process information and solves problems in a simple
input-process-output sequence. Based on these assumptions, uncertainty is solved by increasing
the amount of information about an objective reality that exists inside the organization but most
importantly, outside the boundaries of the organization. Rittel and Webber (1973) argue that
system analysts of the modernist era diagnostically tried to discover the true nature and hidden
character of a problem and then eliminate the roots that cause the problem.

Nonaka (2004) claims that individuals in an organization – and thus organizations – are co-
creators of not only the information that is used in problem solving but also the problems that
are to be solved. Hence, the information is not out there to be found but the reality of a situation
is the result of a negotiation among several perspectives of the participating actors. The symbolic
interpretivist epistemology behind this assumption, in contrast to modernism, considers the
environment as socially constructed (Hatch, 2006). According to a symbolic interpretivist
environmental analysis and institutional theory, organizations adapt and conform both to the
values in the internal group as well as the values in the external environment.

Weick (1995) on the other hand means that there are no organizations just organizing. With this
claim, he questions the notion of a stable organization that is to be managed from top-down and
argues that organizations are under constant change because organizational actors enact, co-
create and recreate the organization. In the interpretivist view there is a distinction between
“uncertainty” and “ambiguity”. Uncertainty derives from a state of limited knowledge and can
partly be solved by a search for more information. Ambiguity cannot be solved by collecting
additional information but requires an understanding that multiple interpretations exist
simultaneously (Ford and Ogilve, 1996:54).

In a post-modernist perspective, the grand narratives and myths of modernism, such as constant
growth and the existence of universal truths are questioned. Through a deconstruction of the
organizational reality that is co-created by participating organizational members, power aspects
are revealed and in this way radical change is possible (Hatch, 2006).

Organizational change
Managing change is one of the core tasks of leaders. Organizational change, as a subfield to
organizational theory, shifts attention from theories about stable organizations towards those of
dynamic organizations with theories focused on practice and reflection through action (Hatch,
2006).

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Two of the most prominent theories in the field of organizational change are Lewin’s model for
change through unfreezing – movement – refreezing and Weber’s theory of routinization of charisma (in
Hatch, 2006). Both theories have been of importance for more recent theories in the field. The
theory of change as proposed by Lewin (1946) aims at balancing forces driving and restraining
change. During the unfreezing phase, existing behavioral patterns of organizations are destabilized
to overcome resistance to change. The movement phase influences the direction of change. The
final refreezing phase institutionalizes new behavioral patterns. Hatch (2006) states that in Weber’s
theory of routinization of charisma, the leader has a prominent role in introducing new ideas.
Leadership is linked to what could be referred to as almost supernatural powers that the average
employee does not hold. The ideas that are introduced by the leader are connected to the power
structures that exist in the organization through a negotiation about how to interpret and
implement them. In this way cultural changes are routinized (ibid.). Weber and Lewin do not
necessarily imply that new knowledge is out there to find in the search for a universal truth. At
the same time, there is a risk with a positivistic perspective of perceiving individuals as passive
receivers that are to be changed rather than as interpreters of new situations and co-creators of
new knowledge.

In the 1950s new group-based methods of learning and change were introduced in a movement
called “organizational development” (OD) (Greiner and Cummings, 2005). The movement was
influenced by Levin’s participative methods and by Maslow who argued for the potential of
individuals to pursue self-actualization (ibid.). Classical OD has been criticized for its positivistic
social science methodology and epistemology (Marshak and Grant, 2008). Rittel and Webber
(1973:158) mean that the dominant idea during modernism was efficiency seen ‘as conditions in
which a specified task could be performed with low inputs of resources.’ This idea has ‘been
guiding the concept of civil engineering, the scientific management movement, much of
contemporary operations research; and it still pervades modern government and industry.’ The
notion in classical OD was that change is episodic and can be created and planned by collecting
and applying valid, often quantitative data. At the same time OD introduced democratic aspects
with the assumption that change cannot be successfully identified without the involvement of
organizational actors on all levels. OD was very much based on the values and language of
humanism and social psychology (Bradford and Burke, 2005).

In the 1980s and 1990s management consultants expanded their practices offering standardized
business process reengineering services and OD partly lost importance as organizational change
concept (Harvey, 2005). “Change management” is planned action led by managers who often use
consultants as agents (Marshak, 2005) and view that new knowledge should be implemented
through a controlled process. The values and language of change management are very much
based on the language of business with the aim to increase efficiency (Bradford and Burke, 2005).
From an OD perspective change management is incomplete in the sense that it is impossible to
engineer change in a situation and environment characterized by complexity without involving
organizational actors as active participants (Harvey, 2005).

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Hatch (2006) uses a matrix to describe the relation between information, complexity and rate of
change in an organization environment (see figure 1 below). According to the model there is a
correspondence between the rate of change and amount of information needed. In a situation of
high complexity, the model claims that organizations face an overload of information and in
combination with a high rate of change, it is problematic to define what information is needed.
One interpretation is that high complexity is connected to ambiguity rather than uncertainty
(Ford and Ogilve, 1996), which in turn can imply that several interpretations of a situation are
possible. This conclusion would suggest the need to have an interpretive perspective in solving
complex situations.

Figure 1: Links between conditions of complexity and rate of change in the perceived environment and need
for information (Hatch, 2006:79)

The revitalization of organizational development

Today several scholars call for a reinvention of organizational development and reintroducing
humanistic values into organizational change (Clegg, 2005; Bradford and Burke, 2005; Marshak
and Grant, 2008). As a field, OD is undergoing a change in its ontological view and the
methodologies used (Bradford and Burke, 2005; Marshak and Grant, 2008; Ford and Ogilvie,
1996). The claim by for instance Bradford and Burke (2005) is that through OD opportunities
for learning and development are created in the organization by pursuing collaboration rather
than imposing change which means that those affected by the change process should be involved
in designing and implementing it (Bradford and Burke, 2005).

Action based methods

Action based methods has always been an important part of OD. Ford and Ogilve (1996) claim
that ambiguous environments require interpretation and trial-and-error enactment processes.
They have an action-based perspective with the view that ‘understanding does not lead to action,
but rather action leads to understanding’ (Ford and Ogilve, 1996:54). This notion is consistent
with the claim by Weick (1995) that sensemaking always is preceded by action.

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Interaction
In “new” OD, (inter)action and facilitation of a sensemaking process (Weick, 1995) are at the
very centre of attention (Marshak and Grant, 2008; Werkman, 2010). Part of the change in OD is
the acknowledgement that multiple realities can exist simultaneously among different
organizational actors. New knowledge and change is co-created in inter(action) as organizational
actors negotiate different perspectives on organizational reality. This perspective is in line with
Dewey’s (1929) view of the internal and external world as something that is not complete but
created through the mediation of intentional operations. Ford and Ogilve (1996) argue that a
systems-structural view has been the dominant paradigm underlying organizational analyses;
instead, they call for an interpretive epistemology (see their comparison in Table 1 below).

Table 1. Organizational learning outcomes resulting from systems-structural and interpretivist epistemologies
(Ford and Ogilve, 1996:59).

Rittel and Webber (1973) argue in their analysis of wicked problems of social policy, which also
can be applied to OD, that:

The systems-approach “of the first generation” is inadequate for dealing with wicked-problems. Approaches
of the “second generation” should be based on a model of planning as an argumentative process in the
course of which an image of the problem and of the solution emerges gradually among the participants
(Rittel and Webber, 1973:162).

An open actor framework is necessary to understand all sorts of connections between

stakeholders in value creation (Petrella, 2005). The actors in a value network impose their
interpretive framework on the organization as they enact their interpretations on the
organization. An interpretive perspective has an explicit focus on the different actors as active
agents (Weick, 1995), and the patterns of sensemaking that take place on an individual level and
on intra- and inter-organizational levels.

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Creative action
As the organizational environment is under constant change, creative actions that facilitate
development and learning are necessary to provide variation and to enact shifting aspects of the
environment (Ford and Ogilve, 1996). Without creative actions experience only occurs from
unexpected external events, which makes the organization reactive. Actions that include an ability
to imagine multiple perspectives and interpretations of an ambiguous environment are highly
valued. This is due to a need to increase the ability to quickly redirect efforts when feedback from
actions indicates that a different interpretation is needed (ibid.).

We are in an interesting situation. We live in a world where organizations are struggling as never before to
make change. (…) Meanwhile we have a discipline supposedly centred on the issue of how to make change,
and we seem to have little influence. Something is wrong. Quinn (1996:4)

This quote from Quinn, describing the development of organizations, might as well have been a
quote from an industrial design consultancy today.

Enabling design
Buchanan (2001) argues that design thinking can be applied to different problems and that design
itself is expanding its meaning. Some scholars claim that the primary role of designers is that of
being a strategic resource of knowledge that rather proposes new ideas and stimuli than works
with style and form (see for instance Delléra et al., 2008), and that the aesthetic perspective is no
longer as obvious as it used to be (Ullmark, 2007). It is also argued that companies would gain
from applying design thinking to management problems (Dunne and Martin, 2006; Boland et al.,
2008; Ungaretti et al., 2009). This leads us to an interesting question regarding what is the basic
epistemology that design thinking brings to the table? In a previous study design thinking was
summarized as integrative, collaborative and experimental (Eneberg, 2011).

Integrative
Practice and thinking, two aspects of knowledge creation discussed by countless researchers.
Dewey (1929) argues that knowledge is created through what he calls experimental thinking.
Experimental thinking is based on interaction and on integrating practice and theory directed
towards new knowledge and change. The relation between thinking and practice is discussed
among others by Schön (1983). He argues that individuals understand a situation by trying to
change it and that actual reflection takes place in action. A central premise in Scion’s theory about
the reflective practitioner is the concept of “tacit knowledge” introduced by Polyani (1966), who
states that we as individuals know more than we can tell. Tacit knowledge becomes explicit
through action in practice. The practitioner becomes aware of the variety of available frames that
(s)he places on reality through action (Kinsella, 2007) and hence reflection can take place. What
Dewey, Schön and Polyani do is to propose an embodied dimension on reflection and criticize

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the Cartesian myth of a dualism between mind and body: The body, things and events belong to
the visible external world while the mind is internal. This perspective leads to an assumption that
intellectual operations always take place in our minds prior to action. The result of this can be
seen in scientific management where labour is divided into hands and thought.

Designers are claimed to integrate hands with thought or as Buchanan (1995:6) expresses it,
‘Designers, are exploring concrete integrations of knowledge that will combine theory with practice for new
productive purposes.’ Intuition occurs when thinking with the hands (Boland et al., 2008). As action
takes place, ideas can be shaped with the use of sketches, prototypes and other visual artefacts.
Design education is in most cases taught in action, that is, by doing (Rylander; 2009, Dunne and
Martin, 2006).

Collaborative
According to sensemaking theory, the individual forms the environment and the environment
with its different stakeholders forms the individual. Individuals make sense of experiences
through on-going inter- and intra-personal dialogues and enact their perspectives in the
environment (Weick, 1995).

The concept of affordance, as proposed by Normann (2002), refers to the perceived properties
of an artifact where the artifact acts as an intermediary between a sender and a receiver. Creating
an environment that allows individuals to perform actions help different thought networks to
merge and thus, new knowledge can emerge. The ability to facilitate an interaction between
different stakeholders is a necessity to generate new solutions. Different, often contradictory
perspectives are integrated during the design process such as limitations in production with the
communication requirements from marketing and branding as well as the needs of the end user.
Designers have the visualization skills that can promote a negotiation of perspectives among
different stakeholders and actors in the organizational environment.

Experimental

Design is described as an abductive mode of thinking (Dunne and Martin, 2006; Ungaretti et al.,
2009; Edeholt, 2004). This mode of thinking aims at finding possible explanations or hypotheses.
Abduction is argued to be the logic of what might be or as Pierce expresses it (1905 in Dunne
and Martin, 2006:518):

“the process of forming an explanatory hypothesis. It is the only logical operation which
introduces any new ideas.”

Lawson (2006) argue that designers are experimental often using a thought style called
“adventurous thinking”. Adventurous thinking is characterized by putting elements together that
normally are not related. Further on it is claimed that the designer is constantly switching
between an open and inclusive creativity and a critical review of various solutions and matching
patterns by relying on an intuitive ability (Ullmark, 2007).

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The challenge for organizations is to create conditions for a creative environment, inter-action
and meaning creation since organizations constantly struggle to become more innovative. The
designer seems to have competencies that can enhance this process.

Discussion
The positivistic epistemology and methodology of classical OD is aimed at implementing
objective knowledge often deriving from quantitative methods. It is based on positivistic social
science, which has focused on episodic change inside a stable organization. At the same time, the
OD movement introduced a democratic aspiration to involve organizational actors on all levels
of the organization. The OD movement was more or less replaced with change management in
the 1980s and 1990s. Change management was more focused on implementing change derived
and steered from top management.

Neither design nor more recent directions in OD deal with finding an objective knowledge that is
to be implemented in an organization. New OD regards change as an on-going process that takes
place in complex organizational environments. Through a negotiation of different stakeholder
perspectives, new knowledge is created. It is with an interpretative perspective on OD that design
serves as an enabling concept can be of use in the revitalization of OD by reintroducing
democratic values into organizational change.

Experimental thinking as proposed by Dewey integrates practice with theory, and hands with
thoughts, thus an embodied dimension on reflection through action. With the use of visualization
skills, the designer creates action not only to take advantage of the intuitive ability that occurs
when thinking with the hands but also to make tacit knowledge explicit. As knowledge becomes
explicit, interaction between actors in a value-creating network can take place.

Not only organizations but also whole value creating networks are under constant change and to
talk about organizations is rather useless as it would be more relevant to talk about the process of
organizing. Using the concept organizing rather than organization highlights the process of
constant change and how knowledge is co-create in inter(action) between active agents. This
process can rather be categorized by ambiguity than uncertainty and hence it is not enough to
increase the amount of information. Instead of using uncertainty to characterize the situation of
an organizing process, ambiguity is better as a term as it demands a higher level of interaction and
a participative style of organizing. Design is claimed to be a planning activity that is dictated by
commercial and political interests (Thackara, 1988). In this sense it is important for designers to
uncover and understand power structures and what is acceptable to say, and by whom, to be able
to succeed with their service. Design often resolves contradictions between different
perspectives, shifting the focus from action to interaction. In highlighting relational aspects and
different perspectives it is possible to dissolve the boundaries of the organization but also
between different subgroups in the organization to let different “thought” networks meet.
Organizational environments that are categorized as ambiguous call for an interpretive

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perspective where the designer can be seen as one of several active agents facilitating an intra-
and inter-personal dialogue and a negotiation process. Affordance created in this way is
facilitating development and learning through the enabling design service. Collaboration and co-
creation can thus take place rather than change being imposed.

To confront the wicked problems organizations are facing and the ever-increasing need to be
innovative, there is a need for trial-and-error rather than finding the one and only solution.
Designers are claimed to have an abductive mode of thinking, aimed at finding several alternative
hypotheses or explanations. Creative action can be developed as experiences are distributed both
intra- and inter-organizationally. When individuals, as active agents, enact their interpretation of
the organizational environment, multiple frames can meet and several new alternative paths of a
possible future can be generated.

Conclusions
Organizational environments are increasingly complex with rapid change resulting in a need to
become more innovative. Complex organizational environments can be categorized by ambiguity
rather than uncertainty and hence there is a need for an interpretive framework. This paper
proposes that an enabling design service can contribute in creating the conditions for such an
interpretive framework. The meaning of design is expanding and is applied today to what was
traditionally viewed as management problems. The revitalization of organizational development
and the reintroduction of democratic values in organizational change seem to benefit from the
integrative, cooperative and experimental competencies held by designers.

Acknowledgements
The author would like to express his thanks to VINNOVA (the Swedish Governmental Agency
for Innovation Systems) and PIEp (Product Innovation Engineering Program), both sponsors of
the research presented in this paper.

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