0:00:12.044,0:00:16.044
(upbeat music)

0:00:22.261,0:00:25.131
[Ted Koppel] It used to be[br]that you deferred to the boss.

0:00:25.591,0:00:27.614
[Male Speaker] Is it the boss[br]that's always going to have

0:00:27.614,0:00:29.428
the best ideas?[br]Not likely.

0:00:29.986,0:00:32.034
[Archived Footage Male Speaker] [br]Here, nibble fingers,

0:00:32.034,0:00:33.750
alert minds, and[br]tireless machines...

0:00:34.007,0:00:36.257
[Ted Koppel] And it used[br]to be in most companies

0:00:36.257,0:00:38.836
that chaos was discouraged.

0:00:39.040,0:00:41.550
(mechanical noises)

0:00:41.550,0:00:43.410
[Dave Kelley] This is where[br]the crazies live.

0:00:43.410,0:00:45.631
This is where we do our work.[br]It's different.

0:00:45.754,0:00:47.681
[Female Speaker] Good[br]morning. Good Morning. Good...

0:00:47.681,0:00:49.771
[Ted Koppel] It used to be[br]you were supposed to climb

0:00:49.771,0:00:51.123
the corporate ladder.

0:00:51.523,0:00:53.593
[Dave Kelley] Status is[br]who comes up with

0:00:53.593,0:00:55.273
the best ideas,[br]not who's the oldest,

0:00:55.273,0:00:57.303
not who's been with[br]the company longest,

0:00:57.303,0:01:00.023
not who has that biggest title.

0:01:00.164,0:01:01.934
If you go into a culture

0:01:01.934,0:01:03.944
and there's a bunch of stiffs[br]going around, I can guarantee

0:01:03.944,0:01:06.158
they're not likely to invent anything.

0:01:06.291,0:01:07.161
(bell ringing)

0:01:07.161,0:01:09.651
[Male Worker] You can stack[br]this up big, as big as you want.

0:01:09.713,0:01:10.953
(machine whirring)

0:01:10.953,0:01:12.243
[Male Speaker 2] That's great.[br]Thanks a lot.

0:01:12.243,0:01:13.393
And we had a great time today.

0:01:13.393,0:01:16.342
[Ted Koppel] Well,[br]forget the way it used to be.

0:01:16.843,0:01:19.083
Tonight, the deep dive.

0:01:19.483,0:01:23.217
One company's secret [br]weapon for innovation.

0:01:23.217,0:01:24.317
(cuckoo clock)

0:01:25.378,0:01:28.388
(trumpeting intro)

0:01:40.391,0:01:43.491
[Ted Koppel] A lot further along[br]in this broadcast, near the end

0:01:43.491,0:01:45.231
as a matter of fact,[br]you will hear

0:01:45.231,0:01:49.165
one of the central characters[br]suggest that we look around.

0:01:49.165,0:01:53.020
The only thing that's not designed[br]by anybody, he will say, is nature.

0:01:53.020,0:01:55.783
Actually, you could say[br]the same thing by observing

0:01:55.783,0:01:59.783
that the only designs that don't[br]require a constant modification

0:01:59.783,0:02:02.053
are the ones we find in nature,

0:02:02.053,0:02:03.835
but the point is well taken.

0:02:03.835,0:02:06.005
From the buildings in which[br]we live and work

0:02:06.005,0:02:08.245
to the cars we drive[br]or the knives and forks

0:02:08.245,0:02:09.536
with which we eat,

0:02:09.536,0:02:13.288
everything we use was designed[br]to create some sort of marraige

0:02:13.288,0:02:15.484
between form and function.

0:02:15.484,0:02:19.194
Does it work and can we make[br]it look interesting or attractive?

0:02:19.694,0:02:22.841
What is truly amazing is how[br]long we tend to put up with things

0:02:22.841,0:02:26.671
that may not work particularly well,[br]or it may look especially

0:02:26.671,0:02:29.904
unattractive simply because[br]we're accustomed to them

0:02:29.904,0:02:32.415
and because no one has ever[br]suggested redesigning

0:02:32.415,0:02:33.787
those things.

0:02:33.943,0:02:38.090
There's an interesting distinction[br]between design and invention.

0:02:38.580,0:02:42.174
Whoever came up with the idea[br]of dental floss, for example,

0:02:42.174,0:02:44.394
was an inventor,[br]but the man or woman

0:02:44.394,0:02:47.394
who put it inside that clever[br]little plastic box

0:02:47.394,0:02:49.843
that lets you tear off[br]just the right length?

0:02:49.843,0:02:51.504
That was a designer.

0:02:52.097,0:02:55.692
Now, how does the process of[br]designing a better product work?

0:02:56.062,0:02:58.974
And would it be interesting[br]to watch that process?

0:02:59.394,0:03:02.452
When we first broadcast this[br]program back in February,

0:03:02.452,0:03:04.692
we weren't at all sure what[br]you would think,

0:03:04.692,0:03:08.342
but judging by the number of you[br]who ordered video cassettes

0:03:08.342,0:03:11.502
of the program and the number[br]of people who contacted

0:03:11.502,0:03:15.304
the industrial product design firm[br]that is featured in this program,

0:03:15.304,0:03:17.625
you liked it[br]a lot.

0:03:17.965,0:03:20.304
Here was the premise[br]of the program.

0:03:20.304,0:03:23.577
We went to IDEO,[br]the product design folk,

0:03:23.577,0:03:26.679
and said, take something old[br]and familiar, like say,

0:03:26.679,0:03:32.092
the shopping cart and completely[br]redesign it for us in just five days.

0:03:32.576,0:03:37.851
ABC news correspondent Jack[br]Smith tells us what happened next.

0:03:38.385,0:03:40.439
[Jack Smith] Nine[br]in the morning, day one,

0:03:40.439,0:03:43.079
and these people have[br]a deadline to meet.

0:03:43.079,0:03:47.469
[Dave Kelley] So welcome to the[br]kickoff of the shopping cart project.

0:03:47.469,0:03:50.889
[Smith] This is Palo Alto, California[br]in the heart of Silicon Valley,

0:03:50.889,0:03:55.209
and these are designers at IDEO,[br]probably the most influencial

0:03:55.209,0:03:57.346
product development firm[br]in the world.

0:03:57.955,0:04:01.185
Designers are the reason[br]TVs have square screens,

0:04:01.185,0:04:03.898
chairs four legs,[br]and toothbrushes nowadays

0:04:03.898,0:04:05.760
those squishy handles.

0:04:05.761,0:04:08.733
In fact, it was IDEO that[br]designed those squishy handles.

0:04:09.090,0:04:12.593
IDEO has designed everything[br]from high-tech medical equipment

0:04:12.593,0:04:15.857
to the 25-foot mechanical whale[br]in the movie Free Willy

0:04:15.857,0:04:18.040
and the first computer mouse[br]for Apple.

0:04:18.040,0:04:20.810
Smith ski goggles,[br]Nike sunglasses,

0:04:20.810,0:04:22.253
NEC computer screens.

0:04:22.253,0:04:24.763
Hundreds of products[br]we take for granted.

0:04:24.763,0:04:28.213
[Dave Kelley] This is [br]called the Neat Squeeze

0:04:28.213,0:04:29.353
toothpaste tube[br]which...

0:04:29.353,0:04:30.573
[Smith][br]You invented that?

0:04:30.573,0:04:32.691
[Smith] The man who runs[br]IDEO is Dave Kelley,

0:04:32.691,0:04:36.110
a Stanford engineering professor[br]which a Groucho Marx mustache,

0:04:36.110,0:04:39.600
a data genius, and an approach[br]to innovation that usually works.

0:04:39.600,0:04:41.040
[Dave Kelley] Well,[br]thank you, Fred.

0:04:41.040,0:04:42.252
[Smith] But not always.

0:04:42.252,0:04:43.300
[Kelley] Thanks a lot.

0:04:43.300,0:04:45.190
I can show you some[br]products that failed.

0:04:45.190,0:04:47.270
Came up with this idea[br]called Monster Shoes

0:04:47.270,0:04:49.900
where you take these little[br]monsters and lace them

0:04:49.900,0:04:51.767
into your shoes[br]like this,

0:04:51.767,0:04:55.280
and we built a bunch of them,[br]and they didn't want those, either.

0:04:55.280,0:04:58.392
[Smith] Mostly, what IDEO designs,[br]though, does work,

0:04:58.392,0:05:00.140
and it works very well.

0:05:00.140,0:05:03.963
Dave and his design teams create[br]about 90 new products every year.

0:05:03.963,0:05:09.003
[Kelley] The point is that we're not[br]actually experts at any given area,

0:05:09.003,0:05:11.583
you know, we're kind of experts[br]on the process of how

0:05:11.583,0:05:12.608
you design stuff,

0:05:12.608,0:05:15.934
so we don't care if you give us[br]a toothbrush, a toothpaste tube,

0:05:15.934,0:05:19.234
a tractor, a space shuttle,[br]you know, a chair.

0:05:19.234,0:05:20.584
It's all the same to us.

0:05:20.584,0:05:23.944
We, like, want to figure out[br]how to innovate in--in--

0:05:23.944,0:05:25.616
by using our process,[br]applying it.

0:05:25.616,0:05:27.352
[Smith] And so,[br]for the next five days,

0:05:27.352,0:05:30.172
the team will apply that process[br]to bringing the supermarket

0:05:30.172,0:05:32.622
shopping cart into the 21st century.

0:05:32.622,0:05:35.582
[Peter Skillman] I think first we[br]should maybe all acknowledge

0:05:35.582,0:05:38.222
that it's kind of insane[br]to do an entire project

0:05:38.222,0:05:39.015
in a week.

0:05:39.015,0:05:40.985
[Smith] Project leader [br]is Peter Skillman,

0:05:40.985,0:05:43.045
a 35-year old Stanford engineer,

0:05:43.045,0:05:45.359
project leader because[br]he's good with groups

0:05:45.359,0:05:46.923
not because of seniority.

0:05:46.923,0:05:48.976
He's only been[br]at IDEO for six years.

0:05:49.406,0:05:52.481
The rest of the team is eclectic,[br]but that's typical here.

0:05:52.661,0:05:54.626
Whitney Mortimer, Harvard MBA.

0:05:55.013,0:05:56.846
Peter Coughlin, linguist.

0:05:57.008,0:05:59.848
Tom Kelley, Dave's brother,[br]marketing expert.

0:05:59.848,0:06:02.272
Jane Fulton Surrey, psychologist.

0:06:02.272,0:06:06.998
Alex Cassacks, 26, a biology major[br]who's turned down medical school

0:06:06.998,0:06:10.449
three times because he's having[br]too much fun at IDEO.

0:06:10.449,0:06:11.262
(laughter)

0:06:11.262,0:06:13.639
[Skillman] It's climbing up[br]and doing this.

0:06:13.639,0:06:16.689
(indistinctive conversation)

0:06:16.689,0:06:19.566
[Smith] Safety emerges early[br]as an important issue.

0:06:19.566,0:06:22.176
[Surrey] 22,000[br]child injuries a year

0:06:22.176,0:06:24.902
which is--and so they're[br]hospitalized injuries,

0:06:24.902,0:06:26.637
and, I mean, there[br]are many others...

0:06:26.637,0:06:28.593
[Skillman] That's just reported[br]in the store, that's--

0:06:28.593,0:06:29.943
they actually have to[br]go to the emergency room.

0:06:29.943,0:06:31.735
[Surrey] No, no, no, no, no.[br]That's hospitalized. Right.

0:06:31.735,0:06:32.405
(multiple voices)[br]Wow.

0:06:32.405,0:06:35.185
[Smith] And theft. It turns out[br]a lot of carts are stolen.

0:06:35.185,0:06:37.315
[Blonde Man] You know,[br]what is the average life of a cart?

0:06:37.315,0:06:39.655
Does it last two years,[br]five years, ten years?

0:06:39.655,0:06:42.548
And how big is this theft thing?

0:06:42.548,0:06:43.488
[Smith] 10a.m.

0:06:43.488,0:06:45.298
As the team works,[br]it becomes clear

0:06:45.298,0:06:46.960
there are no titles here.

0:06:46.960,0:06:48.340
No permanent assignments.

0:06:48.340,0:06:51.040
[Kelley] And the other side[br]says-- it gives a lot of help--

0:06:51.040,0:06:52.128
says, "be safe."

0:06:52.128,0:06:53.778
(laughter)

0:06:53.778,0:06:56.918
[Smith] Everyone appears[br]to be equal, and they love to mock

0:06:56.918,0:06:58.252
Corporate America.

0:06:58.252,0:07:02.102
[Kelley] I'll give you status,[br]I'll give you a big, red ball

0:07:02.102,0:07:04.102
on a post, and that says,[br]you're a big guy.

0:07:04.102,0:07:06.594
If you've got a ball,[br]you're a senior vice president.

0:07:06.594,0:07:08.564
Pfft. You know, what do I care?[br]The desk, the red ball?

0:07:08.564,0:07:09.584
It's all the same.

0:07:09.588,0:07:10.708
(laughter)

0:07:10.708,0:07:14.118
[Kelley] In a very innovative culture,[br]you can have a kind of hierarchy

0:07:14.118,0:07:16.228
of, here's the boss and[br]the next person down,

0:07:16.228,0:07:18.248
the next person down,[br]the next person down

0:07:18.248,0:07:20.854
because it's impossible[br]that the boss is the one

0:07:20.854,0:07:23.524
who's had the insightful[br]experience with shopping carts.

0:07:23.524,0:07:24.824
It's just not possible.

0:07:24.824,0:07:27.581
[Smith] According to Kelley,[br]even employees who merely

0:07:27.581,0:07:29.963
listen to the boss, don't add[br]that much, either.

0:07:29.963,0:07:32.893
[Kelley] So you've got to hire[br]people who don't listen to you,

0:07:32.893,0:07:35.703
and that--I don't think Corporate[br]America wants to hear that

0:07:35.703,0:07:36.415
right yet.

0:07:36.415,0:07:39.198
[Skillman] And I think we ought[br]to start making those lists

0:07:39.198,0:07:41.429
about the kinds of questions[br]that we're going to ask.

0:07:41.429,0:07:44.239
[Smith] The team splits into[br]groups to find out first-hand

0:07:44.239,0:07:47.251
what the people who use,[br]make, and repair shopping carts

0:07:47.251,0:07:48.125
really think.

0:07:48.125,0:07:49.045
[Kelley] Okay, go.

0:07:49.045,0:07:50.678
[Cart Expert] The problem[br]with the plastic cart is

0:07:50.678,0:07:51.716
the wind catches it.

0:07:51.716,0:07:52.388
[Blonde Man] Yeah.

0:07:52.388,0:07:53.988
[Cart Expert] And these things[br]have been clocked at 35

0:07:53.988,0:07:55.083
across the parking lot.

0:07:55.083,0:07:55.783
(laughter)

0:07:55.783,0:07:58.229
[Cassacks] Man, that's actually[br]a pretty good point.

0:07:58.229,0:08:00.638
[Kelley] The trick is to find[br]these real experts,

0:08:00.638,0:08:03.489
and--so that you can learn[br]much more quickly than you could

0:08:03.489,0:08:05.419
by just kind of doing it[br]the normal way,

0:08:05.419,0:08:07.319
and trying to learn about it yourself.

0:08:07.319,0:08:10.709
[Customer] From everything I read,[br]these things aren't that safe either.

0:08:10.709,0:08:11.542
You know.

0:08:11.542,0:08:15.068
So, probably the seat itself [br]is going to have to be redesigned.

0:08:15.068,0:08:18.228
[Kelley] What you're seeing here[br]is kind of the social science

0:08:18.228,0:08:21.298
like anthropologists - you know,[br]like you go and study tribes.

0:08:21.298,0:08:23.488
What is it that they do[br]that we can learn from

0:08:23.488,0:08:25.293
that will help us[br]design a better cart?

0:08:25.293,0:08:27.998
[Surrey] One of the interesting[br]things for me is looking at how

0:08:27.998,0:08:30.938
people really don't like to let go of[br]the cart, except for the professional

0:08:30.938,0:08:33.886
shopper whose strategy is to leave[br]the cart at various places.

0:08:33.886,0:08:37.366
[Kelley] In Corporate America,[br]many bosses, like, measure

0:08:37.366,0:08:40.446
whether their people are,[br]you know, who the good people

0:08:40.446,0:08:43.646
or the people who are performing,[br]the one's they see at their desks

0:08:43.646,0:08:44.356
all the time.

0:08:44.356,0:08:46.266
That couldn't be further[br]from the truth.

0:08:46.266,0:08:49.016
The people who are really getting[br]the information are out here

0:08:49.016,0:08:52.029
talking to the Buzz's of the world,[br]going to meet other experts.

0:08:52.029,0:08:54.085
Much more useful than[br]sitting at your desk.

0:08:54.085,0:08:58.085
[Smith] 3:30 in the afternoon,[br]and the group is back at IDEO.

0:08:58.085,0:08:59.197
There is no let up.

0:08:59.477,0:09:01.880
(drilling sound)

0:09:02.169,0:09:06.114
[Skillman] Each team is going[br]to demonstrate and communicate

0:09:06.114,0:09:08.414
and share everything that[br]they've learned today.

0:09:08.414,0:09:11.267
People went off into the[br]four corners of the Earth,

0:09:11.267,0:09:13.457
and they're coming back[br]with the golden keys

0:09:13.457,0:09:14.467
to innovation.

0:09:14.467,0:09:18.109
[Cassacks] A shopping cart has[br]been clocked at 35 miles an hour

0:09:18.109,0:09:20.349
traveling through a[br]parking lot in the wind.

0:09:20.349,0:09:22.559
[IDEO Team Member] We were in[br]the store, what, two hours?

0:09:22.559,0:09:25.789
And it was truly frightening just[br]to see the kind of stuff going on.

0:09:25.789,0:09:28.309
[Kelley] You got to designate[br]some people to make damn sure

0:09:28.309,0:09:30.736
that the store owner's[br]point of view is represented.

0:09:30.736,0:09:33.618
[Smith] After nine straight hours,[br]the team is tired.

0:09:33.618,0:09:34.914
They call it a day.

0:09:34.914,0:09:35.920
[Skillman] So, um...

0:09:35.920,0:09:37.100
[Kelley] Everybody cool?

0:09:37.100,0:09:39.170
[Skillman] Well, uh, that's great.[br]Thanks a lot. We had a great time

0:09:39.170,0:09:40.547
today.

0:09:40.681,0:09:43.511
(clapping)

0:09:44.352,0:09:48.352
(transition music)

0:10:01.354,0:10:03.725
[Skillman] We want to get[br]together and start here.

0:10:03.725,0:10:06.785
[Smith] Day two at the start[br]of IDEO's unique brand

0:10:06.785,0:10:07.761
of brainstorming.

0:10:07.761,0:10:10.957
They call it a "deep dive."[br]A sort of total emersion

0:10:10.957,0:10:12.327
in the problem at hand.

0:10:12.327,0:10:15.545
IDEO's mantra for innovation[br]is written everywhere.

0:10:15.545,0:10:18.870
One conversation at a time.[br]Stay focused.

0:10:18.870,0:10:22.098
Encourage wild ideas.[br]Defer judgment.

0:10:22.098,0:10:23.947
Build on the ideas of others.

0:10:23.947,0:10:24.547
(bell chiming)

0:10:24.547,0:10:26.617
[Skillman] That's the hardest[br]thing for people to do

0:10:26.617,0:10:30.791
is to restrain themselves[br]from criticizing an idea,

0:10:30.791,0:10:33.612
so if anybody starts to nail[br]an idea, they get the bell.

0:10:33.612,0:10:34.598
(bell chiming)

0:10:35.138,0:10:37.988
[Smith] The deep dive begins,[br]and for the next few hours,

0:10:37.988,0:10:41.368
the ideas pour out[br]and are posted on the walls.

0:10:41.368,0:10:43.678
[Skillman] Oh, the blind,[br]the privacy blind.

0:10:43.678,0:10:45.977
Like when you're buying[br]six cases of condoms,

0:10:45.977,0:10:46.987
and no one sees.

0:10:46.987,0:10:47.647
(laughter)

0:10:47.647,0:10:50.057
[Skillman] Nesting is...[br]It sort of has to nest.

0:10:50.057,0:10:52.584
If it doesn't nest,[br]we don't have a solution.

0:10:52.824,0:10:56.704
[Cassacks] How about velcro pants[br]and velcro seats for the kids,

0:10:56.704,0:10:58.501
and you just drop them[br]down in there and...

0:10:58.501,0:11:01.531
[Smith] Velcro seats? [br]Velcro pants for kids?

0:11:01.531,0:11:03.970
[Kelley] Yeah, see, you have[br]to have some wild ideas,

0:11:03.970,0:11:06.120
if--then you build[br]on those wild ideas,

0:11:06.120,0:11:08.790
and they end up being [br]better ideas then if you said--

0:11:08.790,0:11:11.770
if you--if everybody only came up[br]with same things, you know,

0:11:11.770,0:11:16.385
kind of appropriate things, you'd[br]never have any points to take off,

0:11:16.385,0:11:19.075
to build a really innovative idea.

0:11:19.075,0:11:20.985
[Smith][br]It's organized chaos.

0:11:20.985,0:11:23.381
[Kelley] Organized chaos...?[br]It's not organized.

0:11:23.381,0:11:26.028
What it is is it's focused chaos.

0:11:26.028,0:11:28.995
[Smith] By 11 a.m., the group[br]begins narrowing down

0:11:28.995,0:11:32.656
the hundreds of ideas written[br]or drawn on the walls.

0:11:32.656,0:11:34.860
How? By voting for them.

0:11:34.860,0:11:38.020
[Skillman] Vote with your post-its,[br]not with an idea that's cool,

0:11:38.020,0:11:40.491
but with an idea that's cool[br]and buildable.

0:11:40.491,0:11:44.081
If it's too far out there, and [br]it can't be built in a day,

0:11:44.081,0:11:45.841
then I don't think[br]we should vote on it.

0:11:45.841,0:11:47.011
[Smith] Why not have[br]you be the judge?

0:11:47.011,0:11:47.861
You're the boss.

0:11:47.861,0:11:50.101
[Skillman] Because, because[br]I'm going to be wrong.

0:11:50.101,0:11:53.201
It's the team that's able to really[br]judge what the best idea is.

0:11:53.201,0:11:54.801
(tapping)

0:11:54.801,0:11:56.581
[Smith] Otherwise, ideas [br]wouldn't come out?

0:11:56.581,0:11:57.783
[Skillman] That's right.

0:11:57.783,0:12:00.373
Enlightened trial and error[br]succeeds over the planning

0:12:00.373,0:12:01.623
of the lone genius.

0:12:01.623,0:12:04.523
[Smith] Enlightened trial and error[br]succeeds over the planning

0:12:04.523,0:12:05.773
of the lone genius.

0:12:05.773,0:12:09.357
If anything sums up IDEOs[br]approach, that is it.

0:12:09.357,0:12:12.812
That and the focused chaos[br]that seems to go with it.

0:12:12.812,0:12:17.013
[Green-shirted Male] I took a view.[br]I call it the sport-utility vehicle cart.

0:12:17.013,0:12:20.270
[Smith] It is noon. Worried[br]that the team is drifting,

0:12:20.270,0:12:23.250
what can only be called[br]a group of self-appointed adults

0:12:23.250,0:12:26.360
under Dave Kelley holds[br]an informal side session.

0:12:26.360,0:12:27.960
[Skillman] We don't want[br]to tell them what to build

0:12:27.960,0:12:30.458
or else we take away the benefit[br]of the whole thing, right?

0:12:30.458,0:12:33.888
[Kelley] What needs should[br]they optimize their solution to?

0:12:33.888,0:12:36.990
[Smith] The purpose is[br]to refocus the deep dive.

0:12:36.990,0:12:39.765
[Skillman] Maybe we arbitrarily say,[br]three to five teams.

0:12:39.765,0:12:40.945
Four or five teams.

0:12:40.945,0:12:45.081
Four or five teams, and we [br]give each team a need area.

0:12:45.081,0:12:48.531
Hey, can we grab everybody[br]over to the wall here?

0:12:48.531,0:12:49.762
(bell ringing)

0:12:49.762,0:12:51.802
[Skillman] There has to be[br]a command decision.

0:12:51.802,0:12:54.732
It becomes very autocratic[br]for a very short period of time

0:12:54.732,0:12:57.561
in defining what things people[br]are going to work on.

0:12:57.561,0:12:59.825
[Smith] Like it or not,[br]the team is told

0:12:59.825,0:13:02.155
that we'll split into groups[br]to build mock-ups

0:13:02.155,0:13:05.355
covering four areas of concern[br]that have been identified.

0:13:05.355,0:13:06.385
(bell ringing)

0:13:06.385,0:13:10.207
[Smith] Shopping, safety, checkout,[br]and finding what you're looking for.

0:13:10.207,0:13:14.091
I noticed towards the end of [br]the process, the adults took over.

0:13:14.091,0:13:19.225
[Kelley] Yeah, that's because[br]we have no choice but to stop

0:13:19.225,0:13:20.764
that cycle.

0:13:20.764,0:13:24.114
I mean, if you don't work[br]under time constraints,

0:13:24.114,0:13:25.794
you could never get anything done

0:13:25.794,0:13:28.376
because it's a messy process[br]that can go on forever.

0:13:28.376,0:13:29.636
(machine whirling)

0:13:29.636,0:13:32.125
[Smith] While the team starts[br]building prototypes,

0:13:32.125,0:13:35.585
Dave Kelley takes me on[br]a tour of the rest of IDEO.

0:13:35.585,0:13:39.585
[Kelley] What's happening in [br]here is that's a client meeting.

0:13:39.585,0:13:41.758
That's a first client meeting.[br]That's the first time we've met

0:13:41.758,0:13:44.105
with the client, so we[br]haven't trained them yet.

0:13:44.105,0:13:45.081
(laughing)

0:13:45.081,0:13:47.771
[Kelley] If we took them straight[br]from there in to a room

0:13:47.771,0:13:50.381
where the music was blaring[br]and everybody was throwing

0:13:50.381,0:13:53.467
nerf darts at each other,[br]that would be a little hard to take.

0:13:53.467,0:13:55.567
You know, so we're[br]warming them up.

0:13:55.567,0:13:57.947
But this is, this is where[br]the crazies live.

0:13:57.947,0:14:00.087
This is where we do our work.[br]It's different.

0:14:00.087,0:14:02.807
You can tell whether a place[br]is playful in about the first

0:14:02.807,0:14:04.807
fifteen minutes as you walk[br]down the hall.

0:14:04.807,0:14:05.857
(gears unwinding)

0:14:05.857,0:14:08.987
[Kelley] Being playful is of huge[br]importance for being innovative.

0:14:08.987,0:14:11.573
I mean, if you go into a culture,[br]and there's a bunch of stiffs

0:14:11.573,0:14:14.063
going around, they're not--[br]I can guarantee they're a lot--

0:14:14.063,0:14:15.823
they're not likely to invent anything.

0:14:15.823,0:14:18.853
[Smith] Invent anything like this[br]futuristic-looking instrument

0:14:18.853,0:14:19.696
for kids.

0:14:19.696,0:14:20.866
(energetic music)

0:14:20.866,0:14:22.836
[Smith] So no matter what[br]you do with that thing,

0:14:22.836,0:14:23.656
you always sound--

0:14:23.656,0:14:24.443
[Kelley] You sound great.

0:14:24.443,0:14:25.471
[Smith] You always sound good.

0:14:25.471,0:14:28.105
[Kelley] You have to make it[br]so that this can happen.

0:14:28.105,0:14:29.038
(computer thuds)

0:14:29.038,0:14:30.747
[Smith] Woah. It didn't break?

0:14:30.747,0:14:32.147
[Kelley] No, it didn't break.

0:14:32.147,0:14:33.027
(cymbals clapping)

0:14:33.027,0:14:33.897
(bell ringing)

0:14:33.897,0:14:35.698
[Smith] There's a whole[br]department at IDEO

0:14:35.698,0:14:37.094
devoted to toys.

0:14:37.094,0:14:39.994
Turns out to be one of its[br]most profitable areas.

0:14:39.994,0:14:41.254
Fun, too.

0:14:41.254,0:14:44.447
[Kelley] So it's got these little wings[br]that no matter what you do...

0:14:44.447,0:14:45.807
If I get in trouble here...

0:14:45.807,0:14:47.567
It's always a spiral.

0:14:47.567,0:14:49.221
(cuckoo clock chiming)

0:14:49.221,0:14:52.588
[Smith] At IDEO, they've found[br]that fresh ideas come faster

0:14:52.588,0:14:53.902
in a fun place.

0:14:53.902,0:14:57.746
Not only is the furniture on wheels[br]to suit the needs of the moment,

0:14:57.746,0:15:00.736
the people are encouraged[br]to actually build their own

0:15:00.736,0:15:01.917
work areas.

0:15:01.917,0:15:03.797
[Kelley] They were designing[br]this space, and they said to me,

0:15:03.797,0:15:06.247
you know, we'd like to [br]have, you know, $4,000

0:15:06.247,0:15:08.621
extra in our budget[br]for a DC3 wing,

0:15:08.628,0:15:11.638
and I said, DC3--[br]you have to have that?

0:15:11.638,0:15:13.368
And they said, yeah,[br]they have to have it, so...

0:15:13.368,0:15:14.638
[Smith] That's a DC3 wing?

0:15:14.638,0:15:16.219
[Kelley] Piece of a DC3 wing, yeah.

0:15:16.219,0:15:17.442
[Smith] And that's just décor?

0:15:17.442,0:15:19.992
[Kelley] That's décor. That's[br]ambiance, you know,

0:15:19.992,0:15:22.427
that says, we're weird,[br]and we're proud of it.

0:15:22.427,0:15:25.197
[Smith] Umbrellas on the ceiling[br]to shade computer screens

0:15:25.197,0:15:26.251
from direct sunlight,

0:15:26.251,0:15:29.380
and bicycles on ropes[br]to prevent clutter.

0:15:29.380,0:15:31.680
[Kelley] The first guy who hung[br]a bike up on a thing,

0:15:31.680,0:15:33.160
he didn't come to me[br]and ask me.

0:15:33.160,0:15:35.816
He didn't ask some facilities[br]person if it was okay.

0:15:35.816,0:15:36.695
He tried it.

0:15:36.695,0:15:39.555
And then, like, he waited [br]and saw if anybody complained.

0:15:39.555,0:15:41.885
If nobody complained,[br]another guy hung a bike up.

0:15:41.885,0:15:43.845
And pretty soon everybody's got[br]their bikes up, and nobody's

0:15:43.845,0:15:46.722
complained, right, so it's [br]that whole thing of trying stuff

0:15:46.722,0:15:49.422
and ask forgiveness, you know,[br]instead of asking permission.

0:15:49.422,0:15:51.392
It's the way people come[br]up with new ideas.

0:15:51.392,0:15:54.135
[Smith] IDEO has such[br]a reputation for innovation

0:15:54.135,0:15:56.632
that client companies are[br]increasingly asking Dave

0:15:56.632,0:15:59.715
not just for new products,[br]but also to remake

0:15:59.715,0:16:01.061
their corporate cultures.

0:16:01.061,0:16:03.707
You may be looking at the[br]workplace of the future here.

0:16:03.707,0:16:06.867
[Kelley] It's one thing to be able[br]to do a product once in a while,

0:16:06.867,0:16:09.491
but if you can build a culture[br]and a process where you

0:16:09.491,0:16:12.157
routinely come up with great ideas,

0:16:12.157,0:16:13.977
that's what the[br]companies really want.

0:16:13.977,0:16:15.640
[Male Speaker] Okay,[br]Peter, we're done.

0:16:15.640,0:16:17.695
[Smith] Back at the shop,[br]it is six o'clock.

0:16:17.695,0:16:19.913
The four mock-ups are[br]ready for showing.

0:16:19.913,0:16:23.293
[Male Speaker] Baskets also can[br]be--If you think you will have

0:16:23.293,0:16:25.253
more volume, baskets[br]can be put in.

0:16:25.253,0:16:28.514
[Smith] A modular shopping cart.[br]You pile handbaskets onto.

0:16:28.514,0:16:31.774
A high-tech cart that gets you[br]through the traffic jam

0:16:31.774,0:16:32.790
at checkout.

0:16:32.790,0:16:36.060
[Tan-shirted Man] You could mount[br]a scanner on the shopping cart

0:16:36.060,0:16:39.686
so that you as the customer,[br]as you pull it off the shelf,

0:16:39.686,0:16:41.846
could scan each item.

0:16:41.846,0:16:44.508
[Smith] One that's built[br]around child safety.

0:16:44.508,0:16:48.378
And another that lets shoppers[br]talk to the supermarket staff

0:16:48.378,0:16:49.313
remotely.

0:16:49.313,0:16:51.331
[Black-shirted Man] Yeah,[br]where can I find the yogurt?

0:16:51.331,0:16:52.861
[Voice through speaker] The[br]yogurt's over in the dairy section.

0:16:52.861,0:16:55.731
[Smith] But the adults, again,[br]decide more work needs

0:16:55.731,0:16:58.461
to be done before the mock-ups[br]can be combined into one

0:16:58.461,0:16:59.971
last prototype.

0:16:59.971,0:17:02.061
[Skillman] Why don't we have[br]all the carts come up here

0:17:02.061,0:17:02.871
for a second.

0:17:02.871,0:17:05.140
[Kelley] I think you'd take a[br]piece of each one of these ideas

0:17:05.140,0:17:07.347
and kind of back it off[br]a little bit and then

0:17:07.347,0:17:08.886
put it in the design.

0:17:08.886,0:17:11.061
[Smith] The design is still not there.

0:17:11.061,0:17:13.279
But there's another[br]motto at IDEO:

0:17:13.279,0:17:15.679
fail often in order[br]to succeed sooner.

0:17:15.679,0:17:19.119
And some of the team will be up[br]half the night trying to put together

0:17:19.119,0:17:21.311
a design that finally does work.

0:17:27.541,0:17:31.541
(transition music)

0:17:33.833,0:17:36.373
[Smith] It is day five,[br]and Dave Kelley

0:17:36.373,0:17:38.913
has no idea what the final[br]cart looks like.

0:17:38.913,0:17:40.023
Only the team does.

0:17:40.023,0:17:42.521
[Kelley] If they kind of got their[br]heads down, they don't look at me,

0:17:42.521,0:17:43.674
I'm nervous, you know.

0:17:43.674,0:17:46.763
If they say, wait til you see it,[br]then I know we're in good shape.

0:17:46.763,0:17:50.074
So I'm getting, wait until you see it.[br]I think it's--that it'll be good.

0:17:50.074,0:17:51.478
[Team Members][br]There it is!

0:17:51.478,0:17:53.498
(clapping and cheering)

0:17:54.180,0:17:57.612
[Skillman] So we took the best[br]elements out of each prototype,

0:17:57.612,0:18:01.943
designed this entire cart[br]in a day, and then

0:18:01.943,0:18:06.683
this cart was fabricated in a day[br]with an amazing team of people

0:18:06.683,0:18:08.537
in our machine shop[br]pulling this off,

0:18:08.537,0:18:11.184
working in shifts[br]throughout the night.

0:18:11.184,0:18:12.825
[Smith] Wow, I'm impressed.

0:18:12.825,0:18:14.276
[Skillman] So are we.

0:18:14.472,0:18:15.639
(laughing)

0:18:15.727,0:18:18.497
[Smith] The cart, which is[br]designed to cost about the same

0:18:18.497,0:18:21.773
as today's carts is different[br]in every other way.

0:18:21.773,0:18:24.693
Hand baskets that stack[br]in a metal frame

0:18:24.693,0:18:26.924
and major improvements for all.

0:18:26.924,0:18:29.544
[Skillman] You just lift[br]the handle up, you drop the--

0:18:29.544,0:18:31.714
put the children in,[br]and then you can close

0:18:31.714,0:18:36.576
the handle right over them,[br]and they instantly have some

0:18:36.576,0:18:39.182
little bit of a work surface[br]that they can play with.

0:18:39.182,0:18:40.512
[Smith] What do you think?

0:18:40.512,0:18:44.512
[Kelley] I'm very proud[br]of the team. I think it's great.

0:18:44.512,0:18:46.064
[Smith] Does this work for you?

0:18:46.064,0:18:48.384
[Kelley] It works for me great.[br]It's also beautiful.

0:18:48.384,0:18:50.903
I mean, let's, you know,[br]take it over to a local supermarket

0:18:50.903,0:18:51.953
and see what they say.

0:18:51.953,0:18:53.567
[Smith] Yeah, works really well.

0:18:53.567,0:18:56.980
The carts wheels turn 90 degrees,[br]so it can move sideways.

0:18:56.980,0:18:59.312
No more lifting up the rear[br]in a tight spot.

0:18:59.312,0:19:02.553
And you shop in[br]a totally different way.

0:19:02.553,0:19:04.383
[British Man] Rather than taking[br]your cart everywhere you go

0:19:04.383,0:19:06.733
in the store, through[br]a crowded store like this,

0:19:06.733,0:19:09.461
it's much more efficient[br]to take a small basket,

0:19:09.461,0:19:12.191
rush around to where[br]the particular shelves are,

0:19:12.191,0:19:14.077
come back, and put them here.

0:19:14.077,0:19:16.462
And treat this as like a center[br]for your shopping.

0:19:16.462,0:19:18.312
[Smith] And with[br]a high-tech scanner,

0:19:18.312,0:19:21.646
so that in the future, you skip[br]the checkout traffic jam.

0:19:21.646,0:19:23.794
[Skillman] Here's how you[br]would scan an item.

0:19:23.794,0:19:27.241
You reach over and pick up[br]anything like this salad dressing,

0:19:27.241,0:19:30.131
and I would scan it,[br]and if I wanted to accept

0:19:30.131,0:19:32.239
that item, I would just press plus

0:19:32.239,0:19:33.693
and then drop it in my basket.

0:19:33.693,0:19:36.603
[Smith] Because stores don't[br]yet have those high-tech scanners

0:19:36.603,0:19:39.493
the team designed,[br]checking out today

0:19:39.493,0:19:41.228
means doing it[br]the old-fashioned way.

0:19:41.228,0:19:44.718
But the bags are hung on [br]hooks on the cart's frame.

0:19:44.718,0:19:46.990
Remember, there is[br]no basket here.

0:19:46.990,0:19:48.958
Why get rid of the big basket?

0:19:48.958,0:19:51.319
[Skillman] The basket[br]is tyranny.

0:19:51.319,0:19:55.443
The basket it tyranny because[br]it's not really needed if all your stuff

0:19:55.443,0:19:57.853
ends up in bags,[br]why need the basket

0:19:57.853,0:19:59.223
in the first place?

0:19:59.223,0:20:01.243
[Smith] Talk to me about theft.

0:20:01.243,0:20:05.243
[Skillman] There's no value[br]in this cart without the baskets

0:20:05.243,0:20:08.263
because you can't carry anything[br]in it; it's useless to anybody.

0:20:08.263,0:20:10.065
You can't use it as a barbeque.

0:20:10.065,0:20:11.215
[Smith] So it's not going[br]to get stolen.

0:20:11.215,0:20:12.203
[Skillman] That's right.

0:20:12.203,0:20:13.716
[Smith] So there's a lot of appeal [br]to store owners then.

0:20:13.716,0:20:14.585
[Skillman] Yes.

0:20:14.585,0:20:16.077
[Store Clerk 1] I love it. [br]I think it looks great.

0:20:16.077,0:20:18.332
[Store Clerk 2] Yeah. At first, [br]I was a little shocked,

0:20:18.332,0:20:21.757
but I think you have some[br]fantastic ideas here.

0:20:21.807,0:20:24.618
It needs a little refining, but [br]I think that it's great.

0:20:24.618,0:20:26.634
I mean, we would want them.

0:20:26.634,0:20:29.692
[Skillman] It makes us feel great. [br]And she also gave us some

0:20:29.692,0:20:32.757
really good comments about how[br]we can make this thing better.

0:20:32.757,0:20:34.829
[Kelley] Just wherever you[br]are, look around.

0:20:34.829,0:20:37.285
The only thing that's not designed[br]by somebody is, like, nature.

0:20:37.285,0:20:39.181
So the trees are not designed by us,

0:20:39.181,0:20:41.560
but everything you see... [br]everything you see.

0:20:41.560,0:20:46.114
Every light fitting, every flower vase,[br]every scale, every stand for fruit.

0:20:46.114,0:20:49.262
Everything is designed, has to go [br]through this kind of process.

0:20:49.262,0:20:54.242
And they can do a better or worse [br]job of innovating or improving,

0:20:54.242,0:20:56.295
but everything is designed.

0:20:56.295,0:20:58.135
It has to go through this process.

0:20:58.135,0:21:00.624
[Smith] It wasn't this [br]effortless, "oh, my god,

0:21:00.624,0:21:02.852
so that's how it works" [br]thing that I saw there.

0:21:02.852,0:21:04.773
It was actually hard work.

0:21:04.773,0:21:06.561
[Kelley] It's a lot of hard work.

0:21:06.561,0:21:08.857
We all love it, so it doesn't[br]look like it's hard work.

0:21:08.872,0:21:10.092
But it's a lot of hours.

0:21:10.092,0:21:11.336
[Smith] A lot of hours.

0:21:11.336,0:21:14.936
Also, an open mind, a boss [br]who demands fresh ideas

0:21:14.936,0:21:19.872
be quirky and clash with his, a belief[br]that chaos can be constructive,

0:21:19.873,0:21:23.211
and teamwork, a great[br]deal of teamwork.

0:21:23.211,0:21:27.475
And these are the recipe for[br]how innovation takes place.

0:21:27.475,0:21:29.078
[clapping and cheering]

0:21:29.078,0:21:32.400
This is Jack Smith for Nightline [br]in Palo Alto, California.

0:21:33.021,0:21:35.897
[Ted Koppel] I'll be back with a [br]brief update on our story

0:21:35.897,0:21:38.311
in just a moment.

0:21:38.630,0:21:43.095
Incidentally, the Nightline shopping [br]cart won a Silver award in the

0:21:43.095,0:21:45.240
Industrial Design Excellence Awards,

0:21:45.240,0:21:49.325
and there's talk now of [br]developing it commercially.

0:21:49.325,0:21:50.868
That's our report for tonight.

0:21:50.868,0:21:52.279
I'm Ted Koppel in Washington.

0:21:52.279,0:21:55.944
For all of us here at [br]ABC News, goodnight.

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[upbeat outro music]