
Embedding Design-Driven Innovation in Local Government: A Case Study on the City of Carlsbad, California USA
INTRODUCTION
In an era of declining public trust and increasingly complex societal challenges, the City of Carlsbad, California, presents a compelling model for how design innovation, data, and economic development can converge to build more responsive, resilient, and inclusive local governance.
This case study is part of the Democratizing Design broader project, a collaborative initiative led by the UC San Diego Design Lab, in partnership with The Design Academy, Inc. and CETYS University. Democratizing Design is a mindset and practice that makes design understandable, accessible, and inclusive—shaped through meaningful community participation.The initiative seeks to integrate design into public policy to elevate community well-being, foster economic growth, build creative problem-solving skills through education, and strengthen the design sector itself.
Grounded in Don Norman’s framework of Humanity-Centered Design, which emphasizes a people-centered approach, this methodology involves collaborative efforts that engage citizens, systematic analysis, and co-design of simple, small interventions that facilitate incremental progress.
Focusing on the civic sector, this case study examines how human-centered design innovation can inform and transform public policy and systems to improve quality of life. By tracing Carlsbad’s multi-year journey—from conventional municipal management to national recognition for digital innovation and community engagement—we distill key strategies and lessons for policymakers, civic technologists, and educators working to modernize government from within.
While systems, structures, and technology all played important roles, Carlsbad’s most enduring achievement was a shift in mindset: Human-Centered Design–driven innovation was no longer a special initiative— over 5 years it became embedded in how the city worked. This evolution reflects the core of democratized design: making innovation participatory, practical, and built to last.
This case study offers a powerful reminder: when human-centered design becomes part of a government’s DNA, it outlasts departments, job titles, and political cycles. Today, that cultural shift is at a crossroads. With the formal Innovation & Technology Department phased out, Carlsbad must now decide whether to continue investing in the intentional practice of design and innovation—or risk letting hard-won progress erode. A legacy of mindset change though may be Carlsbad’s greatest innovation of all.
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Located along the scenic Pacific coast in northern San Diego County, California, USA, Carlsbad has had a rich history of civic innovation going back to when it was a whistle stop along the California Southern Railroad in the 1880’s. In 1882, Captain John Frazier, a former ship’s captain, discovered an artesian well with alkaline water that later led to the naming of the City. Carlsbad was also well known for its technology, including one of the first connected traffic signal systems.
The City continued to innovate and progress over the years, but it was between 2019-2024 that they saw rapid growth in its strategic planning, data-driven government, operational excellence, innovation, economic development, and digital transformation efforts.
Today it is a vibrant coastal city known for its strong sense of community, beautiful beaches, and innovative spirit. With a population of just over 115,000 residents, the city balances small-town charm with forward-thinking infrastructure, world-class business parks, and a thriving tourism and technology sector.
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In 2017 Scott Chadwick, former COO of the City of San Diego, CA was appointed City Manager. Scott changed the course for the City by instituting the key focus areas of Data-Driven Decision-Making and Strategic Planning. He passed a Citywide Data policy, hired the City’s first Chief Data Officer and launched a program to democratize data analytics. He also worked with the City Council identifying gaps in staffing and programs leading to internal reforms.
In 2019, the digital age was accelerating, and residents were demanding more from their government—faster services, smarter infrastructure, and greater transparency. Recognizing the need for a bold new direction and a transformative approach, the City made a pivotal decision to hire its first Chief Innovation Officer (CIO).
David Graham, —a nationally recognized civic leader with a unique background in storytelling, policy development, and urban innovation—was the ideal choice to chart this new course. With experience as Deputy Chief Officer for the City of San Diego and a passion for design-led governance, Graham’s appointment signaled a clear commitment to embedding innovation into the city’s DNA, not as a side project, but as a core strategy for governance and a new way of working across the city.
STRATEGIC RESPONSE
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Graham arrived with a clear vision. Innovation should not be siloed or a buzzword; it should be embedded into the DNA of government. That vision came to life in the form of "Connected Carlsbad," a community wide digital transformation roadmap grounded in human-centered design behaviors, agile problem-solving, data analytics and economic development. Rather than starting with technology, Graham’s team began with people (a human-centered approach) — the residents, City staff, and small business owners who interacted with City systems every day. There were 34 initiatives identified in the Connected Carlsbad strategy, such as an app to engage residents and businesses, aligning on communications between Mainstreet and the Chamber of Commerce during Covid, a business economic dashboard, to improved fire response times. In less than five years all of them were either accomplished or underway. From the outset, the innovation team worked across departments internally, and with the Community, to understand real-world pain points.
Using a human-centered approach - They listened. They learned. And then they built.
Rooted in the lived experiences, needs, and aspirations of residents, staff, and community stakeholders, Human-Centered Design Driven Innovation is an approach that values inclusive participation, integrates data and technology as enablers, and relies on iteration to refine solutions. In government, this people-first mindset builds trust, improves service delivery, and drives meaningful, efficient outcomes that communities can see and feel.
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Carlsbad’s design-driven innovation gained significant momentum with the adoption of a new five-year Strategic Plan in 2022 and an updated Economic Development Strategy in 2023. These plans prioritized placemaking, entrepreneurship, and collaboration with startups—positioning innovation as a core driver of the city’s economic and civic evolution.
To ensure consistency and impact, the City aligned its innovation efforts with five overarching strategic goals outlined in their Strategic Plan - all nested under a broader commitment to Digital Transformation;
Safety & Emergency Preparedness: Tools like the Fire Operations Dashboard improved response times and resource allocation.
Community Engagement & Trust: Platforms like Carlsbad Connects and ZenCity gave residents direct input into city decisions.
Organizational Excellence: Internal process improvement sprints eliminated inefficiencies and automated systems like HR forms.
Environmental Sustainability: Smart sensors and GIS mapping informed mobility and climate-related planning.
Economic Vitality: Programs like Gift Carlsbad and the economic dashboard supported small businesses during the pandemic and beyond.
This alignment enabled Carlsbad to turn strategy into action through targeted, measurable innovation projects. “It used to take a year to get data back from consultants,” their Data analyst said. “Now we see trends in real time and can make operational changes immediately. That’s innovation.”
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The formal structure of Design Innovation was established through the creation of the Innovation & Economic Development Department, reporting up through the Deputy City Manager of Administrative Services to the Assistant City Manager and, ultimately, the City Manager. Led by a small, cross-functional, and high-performing team—including a Chief Innovation Officer, Sr. Program Manager, Chief Data Officer, and an Economic Development Lead—the new department became the nexus where innovation, design, and technology converged to drive citywide digital transformation.
While data-related activities were happening across the city, it was this team that connected the dots, creating a unified strategy through the Connected Carlsbad framework.
Key milestones included the adoption of a citywide data policy, the appointment of a dedicated Chief Data Officer, and a deliberate shift from siloed IT initiatives to embedded innovation across city operations. They introduced inclusive processes that empowered employees —from firefighters and city planners to human resource employees—to identify challenges and receive structured support.These efforts improved cross-departmental collaboration, increased visibility for leadership, and laid the groundwork for a culture of continuous improvement. Data became democratized, digital tools replaced outdated paper systems, and citywide training enabled staff to confidently use platforms like Tableau and GIS to make data-informed decisions.
IMPACT OF DESIGN-DRIVEN INNOVATION
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The City of Carlsbad’s new design-driven innovation process combined multiple disciplines and frameworks which became inclusive to both creative and analytical mindsets.
Human-Centered Design Thinking: They used empathy interviews, journey mapping, persona development, and iterative prototyping to ground each initiative in residents and employee experiences. A key component was to empathize and gather insights whereby public input was collected through community workshops, digital surveys, and interactive platforms such as Carlsbad Connects. This ensured that every project was rooted in a deep understanding of residents’ needs and community values.
Lean Six Sigma is a continuous improvement model that combines the principles of Lean manufacturing and Six Sigma with data driven decision making for root cause analysis to eliminate waste, reduce variation, and improve efficiency in organizational processes. The team, trained in process optimization, applied value stream mapping and root cause analysis to streamline workflows and eliminate waste.
Agile and Scrum: Using 2-week innovation sprints, they isolated the challenge, developed a Minimal Viable Product (MVP) quickly tested hypotheses, iterated on solutions, and delivered improvements.
Data Analytics: GIS visualization and open Tableau dashboards made Strategic Plan Key Performance Indicators (KPIs) transparent and trackable. Platforms like ZenCity allowed the city to analyze sentiment and feedback from residents across digital channels. This qualitative data provided leadership with real-time insights, ensuring that city decisions were grounded in community needs rather than internal assumptions. All helped to create an inclusive community.
Innovation sprints became their ‘secret sauce’ to improve internal processes. These structured, but flexible engagements blended Human-Centered Design Thinking, Lean Six Sigma, and Agile delivery. Departments identified a problem, the innovation team helped reframe it, and together they co-designed potential solutions—testing quickly, failing fast, and pivoting often.
Staff who never saw themselves as innovators or designers were now contributing to systems change. Tableau dashboards replaced manual spreadsheets. GIS tools visualized emergency response times. Human-Centered Design Thinking was no longer just a term—The sprints helped democratize design, it was becoming a practice.
The Sr. Program Manager recalls, “Once people saw how the sprints helped solve actual problems—like pothole tracking or 311 response times—they were hooked. They started bringing their own ideas forward.”
A Culture of Community Collaboration Fostered a Shared Purpose
The cultural shift sparked by Carlsbad’s innovation efforts reached far beyond city staff—it transformed how residents engaged with their local government. The people of Carlsbad were not passive recipients of innovation; they became co-creators of change.At the core of this transformation was a move away from top-down decision-making toward inclusive, community-centered design. Local organizations, small business owners, and neighborhood leaders weren’t just asked for input—they were welcomed as active partners in shaping the city’s future.
This participatory model redefined the relationship between residents and City Hall. From faster emergency response times to reimagined public spaces, community members experienced real improvements in city services—alongside a renewed sense of connection, ownership, and belonging. The result: a more resilient, engaged, and trusting community built through collaboration and shared purpose.
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Community-Informed Placemaking
In collaboration with community partners such as the Carlsbad Village Association, the City reimagined public spaces through a community-driven lens. Initiatives like redesigned city banners, seasonal lighting, and creative outdoor dining solutions were co-developed with local input—resulting in more cost-effective, impactful, and inclusive outcomes. By embedding community feedback into the design process, these efforts not only enhanced neighborhood identity but also fostered a deeper sense of ownership and belonging among residents.The Director of the Carlsbad Village Association, reflects on this period as “the most impactful years,” noting the collaboration transformed how downtown worked with City Hall.
Smarter City: Better Access and Response
The Carlsbad Connects app, a revamped 311 system, gave residents a simple and effective tool to report issues and track updates. Engagement quadrupled, resolution times dropped significantly, and the user experience was fully redesigned to promote transparency and responsiveness. This shift not only built trust—it made residents feel heard.Improved Emergency Services
Perhaps most critically, innovations in the Fire Department helped save lives. The development of a Fire Operations Intelligence System, using live data feeds from ESRI, enabled smarter decisions about ambulance placement and emergency response. As the Assistant Fire Chief noted, this data-driven approach led to the addition of two new ambulances and measurable reductions in response times. The system’s success gained attention beyond Carlsbad, leading to collaboration with nearby cities such as Oceanside, and other North Zone cities (ie: Vista, Encinitas, Escondido, etc) through technical rescue efforts, standards of cover updates, and shared governance plans on emergency response. The system received national recognition from the Center for Digital Government, suggesting its visibility and potential influence on peers.Support for Small Businesses
During the pandemic, the innovation team supported the business community by helping to: create a joint crisis response between Carlsbad Chamber of Commerce and the Carlsbad Village Association, launched initiatives like Gift Carlsbad, a shop local program designed to provide further economic stimulus to businesses deeply affected by Covid, and developed a small business economic revitalization package. These initiatives encouraged community-centered purchasing at a time when it was needed most and helped sustain the local economy.Educational Access and Transparency
Open dashboards and GIS visualizations made performance data—like pothole repairs, emergency services KPIs, and strategic goal progress—accessible and easy to understand. Residents gained not just information, but actionable insight into city priorities. -
Carlsbad’s innovation did not go unnoticed. The city earned a Bloomberg What Works Cities Certification, joining a prestigious network of data-driven governments. The certification is a standard of excellence for data-driven and well-managed local government. It evaluates cities based on their use of data to inform policy, allocate funding, improve services, and engage residents. Through this certification, Carlsbad accessed policy evaluation frameworks, tools to strengthen procurement, and a vibrant peer-learning network.
Participation in What Works Cities gave Carlsbad a framework to measure and improve data governance and public engagement. The Sr Program Manager noted that it “gave us language and standards. It made our work more credible and connected us with others doing the same thing.”
Carlsbad also became a Top Digital City in 2023 as recognized by the Center for Digital Government. Awards like these signaled national validation and brought visibility to the city’s work, making it easier to attract grant funding, pilot new technologies, and recruit civic-minded talent.
The impact of these partnerships was tangible. Carlsbad was able to transform its open data portal, establish citywide data standards, and build capacity through workshops with peer cities. Participation in networks like Innovate78 (cities located along the 78 freeway corridor) and Results for America expanded the city’s access to best practices and helped scale internal innovation practices.
Lessons Learned
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In July 2024, after five years of progress, the City Council voted not to reauthorize the CIO position, as well as 11 other positions: Stated in the CIty’s 2024-225 budget, “In response to City Council feedback requesting staff identify additional ways to contain ongoing operational costs, the department absorbed the Data Services Manager, Strategic Plan Analyst and five GIS positions that previously resided in the former Innovation & Economic Development Department.”
Despite widespread praise, including from elected officials, the department fell victim to competing budget priorities. “vocal fiscal minded residents” questioned the need for a CIO, arguing it was not a core function of government. David Graham left the city. The innovation department was dismantled. Staff were absorbed into IT and Economic Development. It was a difficult moment.
And yet, the story does not end there.
The departure of the Chief Innovation Officer changed the structure—but not the culture. Innovation sprints continued. Data practices lived on. Tools like the Carlsbad Connects app and the Fire Department’s ESRI dashboard remain active and useful.
The Economic Development Lead described it this way: “Innovation is still happening. The foundation we built lets us keep moving forward—even without the department.” They continue to support the start-up ecosystem with Startup Week, other networking events while their Smart City"Connected Carlsbad" roadmap guides their investment in information and communication technologies to improve services and connectivity for residents and businesses.
Others noted that departments were still using human-centered design innovation to tackle operational issues. The data analyst is now part of IT and sees innovation as still 20% of his time—and that colleagues regularly come to him for help improving systems.
The true success of Carlsbad’s innovation journey was not in a title. It was in a mindset. A shift in how people approached problems, designed solutions, and measured impact.
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Carlsbad’s transformation offers practical, field-tested guidance for other cities looking to embed innovation and design thinking into the fabric of local government. The city’s experience shows that success is not just about launching new tools or technologies—it’s about cultivating the right mindset, systems, and structures that make innovation sustainable over time. Here's what other civic leaders can learn from Carlsbad’s journey:
1. Build Resilience Across Political Cycles
Institutionalize innovation: Make design and innovation part of everyday governance — not a side initiative—by embedding practices into policies, budgets, and departmental routines. Empower someone with a cross-departmental mandate to bridge insights, organizational values, and community priorities.
Start from an end vision: Focus on building a sustainable mindset and culture—not just delivering projects. Tie innovation to strategy.
Focus on outcomes and operational efficiencies that appeal to a broad range of stakeholders thereby developing a coalition of champions. Create a portfolio of projects at different levels of engagement.
2. Manage Resources Strategically
Diversify funding streams: Combine grants, internal reallocation, and innovation funds to maintain momentum.
Pilot first, scale later: Start with proof-of-concept projects that show value and build the case for sustained investment.
3. Overcome Internal Resistance
Start small, build trust: Launch quick-win projects that demonstrate immediate value.
Foster a learning culture: Normalize experimentation and position failure as a necessary path to insight.
4. Shape Both Public and Internal Perception with Intention
Communicate openly and often: Maintain two-way engagement with residents to build understanding and trust. Create a ‘Rhythm of News’ to continually communicate the successes and illustrate the value tailored to internal and external stakeholders
Focus on Impact by using data and storytelling: Turn abstract goals into real improvements people can see and feel, celebrating trust, equity and transparency.
5. Lead with Vision, Accountability and People First
Start with people, not tools: Train frontline staff early and establish 2 way communications with residents to build ownership and trust.
Build systems, not silos: Leverage Data and Technology. Continue to integrate real-time data analytics and GIS platforms in decision-making. Train all levels of staff how to use data analytics to their benefit.
Use design driven innovation sprints: Quick, focused innovation cycles generate momentum, clarity, and measurable outcomes.
Institutionalize the work: Document processes, decisions, and lessons learned to build organizational memory and muscle.
Leverage external networks: Certifications, collaborations, and cross-sector partnerships expand capacity and bring credibility.

CONCLUSION: looking ahead
Today, Carlsbad stands at a crossroads. With the formal Innovation & Technology department phased out, the city faces a pivotal moment: will it continue to evolve as a design-driven, data-informed government, or risk losing momentum without dedicated innovation infrastructure?
The influence of past innovation efforts is still visible—from procurement to planning, Carlsbad now reflects a more strategic, human-centered approach to governance. As one city leader put it, “Innovation isn’t a department. It’s how we work now.”
Yet we must recognize that meaningful innovation doesn’t sustain itself by accident. It requires intentionality and investment in professional expertise, continuous education, and the time to build trust—both within government and with the communities it serves. Carlsbad’s success stemmed not only from adopting data and technology, but from embracing inclusive, collaborative processes rooted in human-centered design.
This case study serves as a reminder that democratizing design—making design accessible, understandable, and embedded in civic life—is not just a theory. In Carlsbad, it became a lived practice. By embedding design into policy, infrastructure, and community engagement, the city created the conditions for shared problem-solving and collective ownership of civic change.
Carlsbad’s journey shows what’s possible when design driven innovation is not reserved for specialists but embraced as a shared civic capacity. That is the true promise of democratizing design—and the legacy this city now has the opportunity to sustain and scale.
REFERENCES
Bloomberg What Works Cities Certification – Carlsbad Profile
Democratizing Design interviews with internal staff, internal partners and community leader (2024)
Credits
Declaration of Generative AI and AI-assisted technologies in the writing process
This publication was developed using a combination of human-led research and AI-assisted tools. Author Joan Gregor employed generative AI technologies to support analysis, synthesis, and refinement of content—particularly in organizing categories and surfacing themes from interview transcripts and secondary research.
Prior to engaging AI tools, Joan Gregor and the Democratizing Design team conducted a human-led review of all interviews and relevant contextual research. The generative AI tools were then used interactively—guided by carefully constructed prompts and reviewed iteratively to ensure accuracy, clarity, and alignment with the project’s goals. All outputs generated by AI were reviewed, edited, and restructured by the author.
Democratizing Design Team members participating in the case study
Joan Gregor Conceptualization, Methodology, Investigation, Analysis, Supervision, Writing original draft, Writing review & editing
Diana Robinson Trapaga Conceptualization, Methodology, Writing review & editing
Michèle Morris Conceptualization, Investigation, Resources, Funding acquisition
Michelle Woodhouse Conceptualization, Writing review & editing
Elaine Martel Data Curation, Investigation
David Graham Conceptualization, Investigation, Supervision
Elysia Mac Project administration
Zach Johnson Resources, Visualization
Camille Van Bruaene, Investigation
Cole Biehle Investigation
Oliva Gale Writing review & editing
Final editorial oversight and content review were conducted by Diana Robinson Trápaga, Michelle Woodhouse, and Michelle Morris, who take full responsibility for the integrity and accuracy of the published work.