Many companies claim to be innovative, but few can claim innovation as their raison d’être. One such innovation machine is IDEO—a designer of products, services, and experiences ranging from Apple’s first mass-market computer mouse to aspects of Prada’s store in New York City to the patient-care delivery model at SSM DePaul Health Center, in St. Louis, Missouri.
IDEO’s single-minded focus makes it an intriguing port of call for executives seeking insights on innovation. The company’s deep experience collaborating with other businesses and with nonprofits and government agencies gives it valuable perspectives on what distinguishes winning from losing innovation efforts. Yet as CEO Tim Brown is quick to point out, what works at IDEO won’t work everywhere.
Brown has worked at IDEO since its formation, in 1991, when three established design firms came together. He became CEO in 2000, after stints heading IDEO Europe and the company’s San Francisco office. Over the years, Brown has stood for the development of ideas through action—observing customers, prototyping, testing, refining—rather than abstract thought.1
In this interview with McKinsey’s Lenny Mendonca and Stanford professor Hayagreeva Rao at IDEO’s offices in Palo Alto, California, Brown provides his perspective on innovation at IDEO and at other...