The objective of this study was to develop a theoretical framework tailored for managers of small and medium-sized businesses, as well as project managers. Design thinking is human centered approach that involves stakeholders at different levels of its application in the development of innovations. Originally as an engineering method, it has been applied in diverse fields, including entrepreneurship. This paper presents an extended version of the double diamond framework used in design thinking. The double diamond framework was developed in 2005 as a graphical approach for achieving project design process. The author’s in-depth analysis of the model indicates that it can be applied to formulating business strategic objectives, a use case not previously discussed in the literature. Therefore, this paper aims contribute to the scientific body of knowledge by extending the double diamond model for strategic objective formulation. A normative conceptual methodology was used to develop this framework. The development of a monitoring and evaluation plan for businesses or projects, based on a traditional literature review methodology, illustrates how design thinking can offer a new perspective on these processes, helping to address key challenges. This paper demonstrates how each of the five stages in the design thinking process can be employed during the development of a monitoring and evaluation plan. Although this development process can be tedious and complicated, applying the design thinking approach can simplify and streamline it, ensuring active involvement from all stakeholders through the introduced extended framework. Recommendations for future research include applying the proposed extended framework in empirical studies involving large organizations. For practical implications, managers of small and medium businesses are encouraged to apply this model when developing strategies or incorporate it into project management to enhance the development of a project's monitoring and evaluation plan.