Measuring the value of design

In the 20th century the role of designers was majorly understood as that of shape-makers, skilled folks who refine the way objects look. Think car-styling, or how the fashion industry delivers new clothing styles every season. Beyond surface and form, design is a skill that creates new products or services. Design has been embraced by business schools, like Rotman School of Management, and even governments, like Singapore or South Korea have incorporated a design culture to improve on public services.

However styled, or invisible the outcomes of design might be, design has the ability to deliver financial value. For many years the Design Management Institute tracked how design-driven companies, like Apple, IBM, Nike, Starbucks, or Procter & Gamble outperformed others in the Standard & Poors 500 index by over 200% between 2005 and 2015. In their studies, designers have a seat at the C-level of these corporations and are able to consistently innovate across their industries.

Graph of Design Value Index 2005-2015
Design Value Index 2005-2015

 

How can designers demonstrate the value of the work they do?

Ultimately, designers can demonstrate value on a before-after basis, before and after a product re-design. For instance, increase in sales of a product, customer satisfaction, overall revenue growth.  The Design Management Institute has a tool to help frame how designers add value in four parameters: revenue, customer experience, organizational learning, and processes. 

In another project I was personally involved in (The Sustainable Design Standard), a cohort of designers created a framework for evaluating the value of design incling metrics beyond financial value. Based on the premise that designers can also create social, cultural, and environmental value, we created metrics to determine whether designers are helping create products that are healthy, that promote human rights, or that do a lesser damage to the environment. Spoiler alert: Virtually all products designed today are not sustainable.

Provenance is a good example of how designers can gauge the performance of the things they design. The Provenance tool enables both consumers and companies to trace who and how products were made. The tool visualizes the supply chain of participating products and is connected to a verifiable database that rates suppliers and materials.

Provenance app

Designers are known for their skills to create attractive products. As the design practice continues to evolve this century, we can expect the design industry to lead the way in making complex information easy-to-understand and actionable.

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