WHAT IS DESIGN WORTH?
So how do companies deliver exceptional designs, launch after launch business value?
Despite the obvious commercial benefits of designing great products and services, consistently realizing this goal is getting harder. Only the very best designs now stand out from the crowd, given the rapid rise in consumer expectations. Companies need stronger design capabilities than ever before.
To answer these question, McKensey conducted a five-year research, uncovering the actions showing the greatest correlation with improved financial performance. The four themes of good design described below form the basis of the McKinsey Design Index (MDI), which rates companies by how strong they are at design and - for the first time - how that links up with the financial performance of each company. Read more here
"For companies that make it into the top quartile of MDI scorers, the prizes are as rich as doubling their revenue growth and shareholder returns over those of their industry counterparts."
THE 4 PILLARS OF SUCCESS
1. Adopt an analytical approach to design by measuring and leading your company’s performance in this area with the same rigor the company devotes to revenues and costs.
2. Put the user experience front and centre in the company’s culture by softening internal boundaries between physical products, services, and digital interactions.
3. Nurture your top design people and empower them in cross-functional teams that take collective accountability for improving the user experience while retaining the functional connections of their members.
4. Iterate, test, and learn rapidly, incorporating user insights from the first idea until long after the final launch.
More striking findings of the McKinsey study
McKinsey's most striking finding is the strong correlation between high MDI scores and superior business performance, increased business revenues and total returns to shareholders.
1 - No excuse!
Design excellence is within the grasp of every business, whether product, service, or digitally oriented.
2 - Don't delegate design!
The key drivers call for top company-level decisions and investments and often take years of leadership commitment to establish.
3 - Design needs to be everywhere!
The best performing companies combined design and business leadership through a bold, design-centric vision clearly embedded in the deliberations of their top teams.
4 - Think big!
Design-driven don’t limit themselves to their own ecosystems. The best businesses think more broadly.
5 - Seek the multi experienced creative!
Hybrid designers, with a multitude of different experiences, who works across functions, will be the employee most able to have a tangible impact through their work.
6 - Don't hide Design budgets!
Formal design allocations should be agreed to in partnership with design leaders instead of appearing as line items in the marketing or engineering budgets.
>> Want to find out more and get your enterprise in line with these latest findings? Contact me.