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The Value of Design
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Design-driven companies outperform the
S&P 500
by 219%

 


The Value of Design

Much has been written lately about the strategic value that design can add to organizations of any scale and type.

"Take it From an Expert: Design is More Important Than Ever" 
Wired 3.17.2015
"Design InTech Report" John Maeda, Design Partner, KPCB 3.15.2015
"Design Gains Importance as Devices Get More Personal"  NYT 3.19.2015


But What is Design?

Simply put, design is a method of problem solving.  Whether it is an architectural blueprint, a brochure, the signage system at an airport, a chair, or a better way to streamline production on the factory floor – design helps solve a problem. 


Measuring the Value of Design

The value of design is difficult to define.   Design is hard to isolate as a function and the design function operates differently by industry.  That makes benchmarking to standardized measurement metrics difficult. 

 

Instead, DMI chose to look at the value of design-focused organizations as an aggregate.  In 2013, DMI and Motiv Strategies collaborated to develop a market index that could be used to track how design-focused companies perform relative to the S&P 500 over time. 15 publicly traded US companies made the criteria for inclusion. The results supported a growing body of findings that good design drives shareholder value.

Next Steps

DMI then undertook a series of studies, research programs, and symposia surveys to develop a system of tools and frameworks called The Design Value System (DVS) used to:

  • Communicate the value of investment in design
  • Assess the maturity of a design organization
  • Benchmark the areas in which design adds value

The Design Value System has three components: The Design Value Index, The Design Maturity Matrix and the Design Value Map. 



The Design Value Index

DMI and Motiv Strategies, funded by Microsoft, began analyzing the performance of US companies committed to design as an integral part of their business strategy. Completed in  2013 the dmi:Design Value Index tracked the value of 15 publicly held companies that met specific design management criteria, and monitored the impact of their investments in design on stock value over a ten-year period, relative to the overall S&P Index.

2014 results show that over the last 10 years design-led companies have maintained significant stock market advantage, outperforming the S&P by an extraordinary 219%.

 

Read the latest results of the Design Value Index, Good Design Drives Shareholder Value.

Read about the Index study here:  "The DMI Design Value Scorecard: A New Design Measurement and Management Model"
And "What is the Real Value of Design" that includes 8 topline ways design adds value

And the seminal work done by the UK Design Council  "The Value of Design Factfinder" UK Design Council 1.20.2007



The Design Maturity Matrix

The dmi:Design Maturity Matrix provides a simple mapping tool to measure the maturity of design in any organization. It can be used as a diagnostic and communications tool to:

- Understand the process maturity of the design organization
- Create a common language for strategic discussions with cross functional peers
- Align investments in design with business strategy

 

 

 




The Design Value Map

Based on the American Productivity and Quality Council (APQC) model used extensively in business and engineering, the Design Value Map pinpoints the functional areas in which design adds value across four parameters:
- Revenue
- Customer Experience
- Organizational Learning
- Process

 

Used in tandem or separately, the dmi:Design Value System provides valuable tools to communicate the value of investing in design, assessing the maturity of the design function in an organization, and benchmarking the functional areas in which design adds value. 

 

DMI Professional Education Workshops

DMI has shown that companies that put design at the core of their strategy outperform the market by a significant margin. Building design capability starts with professional education workshops that teach methodologies and frameworks that can be used immediately.  See the complete workshop schedule here.


 

 

Questions? Contact us.  

more Calendar

9/16/2015 » 9/17/2015
DMI Workshop: Integrating Design Strategy

9/17/2015 » 9/18/2015
INCLUDE 2015 – DISRUPTIVE INCLUSIVE

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