Tuesday, July 29, 2008

Measuring Design...To Improve Your Bottom Line

In the past decade, we've witnessed a sea change in the way the business world regards design. But even as leading brands embrace the "good design is good business" mantra, neither designers nor business leaders in the U.S. have been able to produce a measurement for calculating how investment in design actually translates into profits.

Design professionals in the U.K., however, are taking steps to connect the dots between design and profitability. The London-based Design Business Association is leading the way with its annual Design Effectiveness Awards, which recognize design work not on its visual merits, but on how it meets the client's business objectives. Founded in 1986,
Design Business Association, promotes good design as a business strategy and recognize, communicate and reward the integral role design plays in commercial success. They do that by fostering productive relationships between commerce and the design industry, and promoting professional excellence in the design industry.

The Design Effectiveness Awards recognize projects that can demonstrate the design's tangible effect on the client's business, by using commercial data as a key judging criteria. They ask entrants to present proof beyond any doubt that the client's business problem was solved by the design solution. Were sales targets outperformed? If so, by how much? Was company turnover affected? Did the company's share price go up after the design was complete? Did the new design cut print and production costs or otherwise impact profit margins? What are the numbers? Did the design have social implications? What are they? How long did it take for the design work to deliver a return on investment?

Here's a case study: Mann Investments saw a share price rise following the launch of hedge funds because the design of their communications materials was so clear that it made the topic more understandable to the market. In this case it's not about recycled paper or saving money on printing; it's about knowing what the client wants the takeaway to be. This requires design agencies to really understand their clients' needs and design to generate whatever outcomes the clients want.

Where we find a lot of design/business partnerships trip up is in basic communication—
For the designer to develop an effective solution Here are five helpful tips.
1.) Challenge your designer to solve your business problems.
2.) Specify to your designer the problem to be solved, and any parameters for measuring success.
3.) Know your targets the designer need to deliver on.
4.) Focus on your outcome.
5.) Keep the conversation on business goals.

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