The CIRCLES Method : A Framework for Product Design Thinking

CIRCLES Method

The CIRCLES Method is a step-by-step process for product design thinking. It helps product managers solve problems in a structured and continuous way, rather than jumping straight to solutions.

CIRCLES is a seven-step acronym:

C — Comprehend the Situation: Ask clarifying questions and fully understand the context.

I — Identify the Customer: Understand user behavior, needs, and demographics.

R — Report Customer Needs: What do users actually want?

C — Cut Through Prioritization: Which needs are most critical to solve? What should be addressed first?

L — List Solutions: List possible approaches to solve the user’s problem.

E — Evaluate Trade-offs: Measure the effectiveness, cost, and impact of each approach.

S — Summarize: Provide a clear final recommendation.

Applying the CIRCLES Method to a Real-Life Problem

Scenario:

Users are complaining that drivers cancel rides too often after accepting requests, especially during peak hours.

1. C — Comprehend the Situation

What’s going on?

• Drivers cancel rides after accepting requests
• Users face delays and frustration
• Happens more during rush hours

Clarifying Questions:

• Who is affected? → Riders
• Where? → High-demand areas
• Why? → Possibly better fares elsewhere or long pickup distances

2. I — Identify the Customer

Users:

• Riders
• Drivers

3. R — Report Customer Needs

Riders want:

• Reliable rides (no cancellations)
• Fast pickups
• Predictable experience

Drivers want:

• Maximum earnings
• Efficient trips (short pickup distance, higher fares)

4. C — Cut Through Prioritization

Focus on the most critical problem: Reduce driver cancellations after accepting a ride

5. L — List Solutions

• Penalize drivers for frequent cancellations
• Offer bonuses for completed rides
• Restrict drivers from seeing other ride requests after accepting one
• Show pickup distance and trip details before accepting
• Improve driver-rider matching
• Introduce performance-based ratings

6. E — Evaluate Trade-offs

• Penalties → may frustrate drivers
• Bonuses → increase operational costs
• Driver restrictions → balanced but may reduce flexibility
• Transparency → improves decision-making (strong option)
• Better matching → requires a strong algorithm
• Ratings → encourages accountability (balanced option)

7. S — Summarize

I would focus on reducing driver cancellations by improving the matching algorithm and increasing transparency before drivers accept rides. Additionally, performance-based ratings can encourage better behavior.

This approach aligns incentives for both riders and drivers while minimizing negative side effects like dissatisfaction or increased costs.