6 Design Management Review Spring 2004

E D I T O R ’ S N O T E S

Managing Design to LeverageOrganizational Objectives

The goals can vary widely: to convey anorganization’s values and commitment;to respond more effectively to cus-tomer needs; to uncover the mostpromising frontiers in technology andconsumer products; to craft experi-ences and change customer percep-tions. Design is an important elementin all these achievements, and in thisquarter’s Review we want to articulatehow design delivers this strategic con-tribution to business success. To manyoutside the profession, design is aboutvisual issues and the making of arti-facts. The articles that follow are coun-terpoint to this thinking, demon-strating that design has critical roles toplay in the business enterprise.

Design and business strategy

This broad vision is immediatelyapparent in our keynote by RogerSametz, founder and president of theBoston-based strategic communica-tions firm Sametz Blackstone, and hiscolleague Andrew Maydoney, vice pres-ident of research and strategy. Theydiscuss communications, but the prin-ciples they delineate are obviouslymore inclusive. A central tenet is thatdesign solutions go beyond facilitatingsingle transactions to engaging peoplein relationships. Whether the focus isproducts, environments, buildings,services, Web sites, or print materials,the objective is to establish a meaning-ful and valued dialogue. Internally, thisdialogue takes place with employeeswho learn about and then convey anorganization’s culture. Beyond theseboundaries, effective design, in both itscontext and content, opens up path-

ways to the minds and souls of cus-tomers and constituents. It influencesbehavior. It nurtures a sense of com-mitment. All this depends on under-standing—understanding what abusiness is about, what its values are,and with whom it needs and wants toconnect. Designers can help clarifythese issues and follow up with strate-gies for generating the appropriate rela-tionships. It is a compelling messageand, to translate theory into practice,Sametz and Maydoney include a won-derful collection of case studies—workthey admire and work they have donefor organizations that range from cul-tural institutions and universities tobusinesses exploring the latest advancesin science and technology.

Complementing the Sametz-Maydoney essay, a team from frogdesign (sic) in San Francisco—AdamRichardson, strategy director, and JojoRoy, vice president of strategy—offersanother angle on the shift from a proj-ect to a strategy orientation. Their rec-ommendations have to do withconsultant/client relationships, whichthey analyze to show how long-termpartnerships yield the most effectivedesign outcomes. In these situations,frog design takes a proactive role in itsclients’ businesses. The company workswith executives and across multipledepartments to smooth and expeditethe development process, as well as toexpand creative options and the oppor-tunities for innovation. To support andencourage partnerships, frog design hasa group dedicated to strategic thinking.It presents ideas in both business anddesign terms. It provides big-picture

Thomas Walton, Ph.D.Editor, DesignManagement Review

scenarios and the tactical specifics needed toimplement them. It takes on projects that extendits expertise. And it accepts methods of compen-sation—for example, royalty payments—thatstrengthen the partnership by sharing client risk.Richardson and Roy cite specific projects toillustrate their points. In the case of an outdoorfurniture manufacturer, they determined thatrestructuring the sales force—rather than invest-ing in new pieces—was the first step to increas-ing market share. For a wireless productscompany, they created a high-tech “sandbox”that allows potential customers to test officetools before they buy. For Disney, they designedelectronic toys under an agreement that part oftheir return would be tied to sales. The storiesdetail a more comprehensive approach to con-sulting, a model frog design believes others canemulate.

An article by Chris Conley, principal of theGravity Tank design firm in Chicago, furthersthe examination of consultant/client partner-ships. Conley identifies seven competenciesdesigners bring to the arena of strategic research.

1. Framing problems in unique and insightful ways

2. Working at multiple levels of abstraction3. Modeling and visualizing outcomes

despite incomplete information4. Creating and evaluating multiple

alternatives5. Maintaining or even adding to value as

elements are brought together to form anintegrated solution

6. Establishing meaningful relationshipsamong elements and between a solution and its context

7. Using form and visual languages to embodyideas and to communicate

He then describes how his firm has successfullyapplied these special talents. One corporationwas interested in acquiring cutting-edge marinetechnology. After investigating the subject, how-ever, Gravity Tank concluded that the systemsthat excited boaters were those that maximizedboating time rather than those that were simplythe most advanced. Based on this finding, thecompany dramatically shifted its business planand design strategy to emphasize customerexperiences instead of technical innovation. Asecond corporation needed to expand its lower-

priced product line. Gravity Tank convened aworkshop and after two days of intensive collab-oration, the team had modeled nine new prod-uct architectures that competitively blendedvalue and price. The lesson is that designersintroduce a distinctive and essential vision to the dynamics of business decision making.

Three case studies

The ability of design to invigorate an organiza-tion is evident in the history of WallaceCameron, a first aid kit manufacturer based inGlasgow, Scotland. As told by Bruce Wood,director of the Centre for Creative Industries atGlasgow Caledonian University, when BenedettiInternational, a service and supply company,took over Wallace Cameron in 1994, the productline had not changed significantly for decades.The market was saturated, and competition wasalmost exclusively price-sensitive. Intriguingly,Benedetti saw this situation as a chance to breakaway from the crowd. After extensive research, itinitiated a design program that resulted in twomodular first aid kitsthat were no longerperceived as com-modities. They wereinstantly recognizable,became award-win-ning products, andhelped to lift WallaceCameron’s annualsales from $6.75 mil-lion to more than $30million. More signifi-cantly, the metamor-phosis went far beyond this one-time projectand its positive impact on the balance sheet. Thecompany now has its own in-house design team.It prides itself on being innovative and customerresponsive. It has constructed state-of-the-artoffice and production facilities. It sells and dis-tributes its lines internationally, and it is diversi-fying into businesses that can leverage its designand marketing experience. Truly, this is anorganization transformed by design.

A second case by Doug Beaudet, manager ofcorporate design and usability research for theEastman Kodak Company, in Rochester, NewYork, and his associate Carolyn Zacks, is aglimpse of how this renowned company is redis-

Managing Design to Leverage Organizational Objectives

Design Management Review Summer 2004 7

The ability of design

to invigorate

an organization

is evident

covering its innovative spirit. Steeped in the tra-ditions of film and the notion of preservingphotographs for generations, throughout the1990s Kodak was timid about stepping into theseemingly less permanent and ephemeral worldof digital imaging. At the same time, the compa-ny understood it had to move—and moveaggressively—if it wanted to reclaim its leader-ship position. To this end, in 2001, Beaudet’scenter decided that by integrating several inde-pendent wireless research programs it couldmore comprehensively and creatively exploitcontemporary technology. His team, whichincludes anthropologists, psychologists, andhuman factors specialists, as well as designers,was excited by the possibilities of mergingmobile devices, imaging, and personal interac-tion. It christened its effort Share Life on the Go,

and members gathereda constant stream ofdata on global technol-ogy trends and userneeds. They exploredmore than 100 productideas, assessing howeach aligned withKodak’s plans for long-term growth, and ulti-mately honed the list to11 concepts that thecompany sees as

renewing its reputation for innovation with ahuman touch. The concepts have names such asInstant Private Communication, InteractiveBillboard, and Personal Profile Vacation Guide,and Beaudet and Zacks include an array of pho-tos to stimulate the imagination. Theirs is a taleof the nexus between design and business strate-gy, and it will be fascinating, as the months pass,to see how it plays out.

The venue for the third case is Ireland. Abread company, Irish Pride, had been expandingthrough acquisitions and needed an identity thatwould give it a competitive national profile anda new brand that would “build an emotionalrelationship with the consumer.” Pat Kinsley,director and founder of the Neworld Groupdesign consultants in Dublin, tells how his firm’saudit yielded several interrelated findings. First,quality had to be improved. As it grew, IrishPride had to make sure its products were consis-

tent across the country. Second, delivery had torespond to retailer needs rather than to IrishPride’s distribution schedule. For some stores,this might require multiple stops each day.Third, the corporate culture had to be unified.Across various plants and employee groups,there had to be one mission, one set of valuesand standards. Finally, all these changes had tobe communicated with a new identity and pack-aging. With this agenda, everybody had a job todo. For its part, Neworld held a workshop toascertain Irish Pride’s core values:

• Touching the community• Delivering consistency• Sparking passion• Inspiring fresh, bold ideas• Building loyalty through integrity

These, in turn, became the foundation for a newvisual identity that, along with an advertisingand branding program, helped boost slicedwhite bread sales by 300 percent, doubledorders, and increased market share by 2.8 per-cent. All judged design and the designers’ contri-butions a major success.

Methodologies that enhance the value of thedesign process

The remaining articles in this quarter’s Reviewdeal with analytical techniques that augmentdesign quality. Michael Eckersley, principal ofthe HumanCentered consumer and designresearch consultants in Salt Lake City, Utah, asksthe question, “Why do so many brands fail tobreak through to earn a place in people’sminds?” Eckersley admits the reasons are manyand subtle but posits an information deficit asthe factor that matters most. He admonishesmanagers, “Know your customer!” Without thisunderstanding, the results are too often confu-sion, faulty assumptions, and bad design deci-sions. His recommends “deep-dive intelligence,”a periodic immersion into the customer’s world.This involves interdisciplinary reconnaissance, inwhich teams spend anywhere from a day to amonth with customers. They emerge with awealth of fine-grained data that is authentic, andrevealing of how human beings interact withothers and with their environment. It is a cross-section of a consumer culture, and it is a power-ful gateway to customer-relevant design andbranding. Illustrating this thesis, fellow consult-

Delivering Value Through Design

8 Design Management Review Summer 2004

“Why do so many brands

fail to

break through

to earn a place

in people’s minds?”

Managing Design to Leverage Organizational Objectives

Design Management Review Summer 2004 9

ant Bill O’Connor at Source/Inc. in Chicago,used deep-dive research for a client that wantedto extend its company’s presence in the upscalehome hardware and fixtures market. As a side-bar to the Eckersley piece, O’Connor commentsthat the customer archetypes, constructs, andmodels that emerged became the invaluablefoundation for a prestigious new brand andmerchandising strategy that will be introducedearly in 2005.

Continuing this look at discerning customerdesires and priorities, Dev Patnaik, founder ofJump Associates, a design strategy firm in SanMateo, California, outlines a framework thatorders the vast panorama of user needs.Extrapolating from the premise that all needs arenot created equal, he distinguishes four types.Qualifier Needs are immediate concerns—look-ing for a way to carry a hot cup of coffee. Thesefrequently have straightforward solutions—pick-ing up a cardboard sleeve. Activity Needs arethings people want to do—finding a cup of cof-fee. These are satisfied by specific actions—stop-ping at a 7-Eleven. Context Needs are richer andmore complex. They are about the experiencespeople desire—having a leisurely chat over acappuccino. These are encounters that blendactions and emotions. They are about meaningand being fulfilled as a person—taking a break ata local coffee shop for a drink and a conversa-tion. Common Needs are about being humanand living in the twenty-first century—socializ-ing and sharing with others. They are gratifiedover the long-term with multiple experiences—having and keeping in touch with close friends.Taking advantage of what Patnaik calls systemlogic, businesses can interpret and target needswith this hierarchy and then design and choreo-graph their offerings and behavior to meetContent Needs and Common Needs in ways thatdifferentiate them from competitors. Starbucks,Harley-Davidson, and Apple are companies thathave done this well. The challenge is that, whilecore values remain constant, the items or servicesa business sells and how it looks and feels canand will change. The design process never ends.Within the system logic, the analysis of needs isrefined, new offerings are developed, and oldones are refreshed. Some corporations do thiswell and others, as Patnaik notes with specificexamples, take missteps or fail.

Designers always search for tools that addbreadth and value to their endeavors. In thisvein, Craig DeLarge, a marketing manager forJohnson & Johnson, in Norristown,Pennsylvania, highlights storytelling as anapproach to expressing lessons and ideas thatotherwise might be missed or go unheeded. Hedefines a range ofstorytelling typesfrom tales of heroesto rites and physicalobjects and explainshow they can servemany purposes. As astrategic resource,they can convey tra-ditions, present thecontext of problems,and test future sce-narios. In reinforcingan organizational cul-ture and cohesion, they are useful in directingand building teams, transferring memories andknowledge, and defining processes, rules, androles. In client relationships, they can breakdown barriers, nurture interaction, and translatestatistics and abstract facts into realities thatengage people and their thinking. On the onehand, storytelling is not about content andmight easily be ignored. On the other hand, it isabout delivering content in a form that greatlyamplifies its impact—and that’s important inthe corporate world, where design is regularlymisunderstood and underutilized.

In this volume, the articles and case studiesdemonstrate that design matters—that it can bea significant support to the enterprise. Authorsalso share methods for analyzing and leveragingdesign resources. We hope these are contribu-tions that make a difference in your business.

Reprint #04153WAL06

Designers always search

for tools

that add breadth

and value

to their endeavors