Design Thinking diagram

This great image (click on it for a larger version) and explanation of Design Thinking comes from Stanford University's K-12 Lab Wiki (see link below)

UNDERSTAND

Understanding is the first phase of the design thinking process. During this phase, students immerse themselves in learning. They talk to experts and conduct research. The goal is to develop background knowledge through these experiences. They use their developing understandings as a springboard as they begin to address design challenges.

OBSERVE

Students become keen people watchers in the observation phase of the design thinking process. They watch how people behave and interact and they observe physical spaces and places. They talk to people about what they are doing, ask questions and reflect on what they see. The understanding and observation phases of design thinking help students develop a sense of empathy.

Visit the Wiki site for the rest of the explanation - really clear and a good introduction to an important concept.
link: Steps in a Design Thinking Process