The DMI Design Value Index measured design-focused publicly traded companies’ performance against the larger stock market. For a company to be counted as a design-led, it must meet six design management criteria:
- The organisation must be publicly traded in the US for 10+ years.
- The scale of the design organisation and deployment is an integrated function.
- Growth in design-related investments and influence have increased overtime.
- Design is embedded within the organisational structure.
- Design leadership is present at senior and divisional levels.
- There is a senior-level commitment to design’s use as an innovation resource and integrative force.
These criteria assessed whether design was a long term strategic priority, built into the organisation’s structure, and well resourced through hiring practices, facilities, and technologies. Qualifying companies needed a design-focused C-level executive and CEO and leadership team publicly recognising the importance of design in their work and publicity.
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.The Design Management Institute
The DMI, funded by Microsoft, identified fifteen companies that meet all six criteria, including Apple, IBM, Nike, Procter & Gamble, and Starbucks. Results showed that design-led companies outperformed the S&P 500 index by 228% over ten years.
Motiv and DMI developed eight ways in which a company could improve its performance through design:
- The Wow factor
- Brand expression
- Solving unmet user needs
- Develop better customer experiences
- Rethinking strategy
- Hardware/software/service integration
- Market expansion through persona development and user understanding
- Cost reduction
If you want to know more, view the DMI’s Design Value Index and it’s Design value system that makes use of the Capabilities Maturity Model.