Each project is unique and I adapt my process for thier specific circumstances, but here's my basic MO.
Good design grows from a wholistic understanding of the user and the product's context.
Ideate and Design
Ideas large and small! And translating them into functional designs for others to see and critique.
Testing ideas and getting feedback is critical to understanding their value and shortcomings.
Iterate and Refine
Armed with knowledge of what works well and what doesn't, it's time to edit, update, and sometims redesign completely.