The link between design and better business performance
The headline
There is a link between design and better business performance. Our research helps to prove it.
For example, it shows that:
- Businesses that increased their investment in design over the past three years also increased their chances of turnover growth.
- Businesses that see design as integral are more than twice as likely as others to see rapid growth.
This section indicates nine ways in which businesses are using design for better business performance.
How we got this evidence
In order to find out how design impacts on business performance, we had to isolate design from other business factors.
We built statistical models to find relationships between design and businesses’ performance. We measured a number of indicators that characterise business growth. These included turnover, profit and employment growth. Then we measured the effect that businesses believe design has on their growth.
You can find out more about our methodology here.
What can a business do to increase turnover growth?
Increase investment in design. Turnover growth was more likely in businesses that had increased their investment in design over the past three years. Conversely, those businesses that decreased their investment cut their chances of growth.
What can a business do to rapidly increase turnover growth?
Invest in design, then measure the return on design investment (RODI) in terms of the time it takes to recoup the investment. Businesses that take design seriously are more likely to measure its impact. Rapid turnover growth was four times more likely for businesses that did this.
‘On average, it takes 20 months for design projects to pay back the investment.’
Develop new products and services. This also nearly doubled the chances of rapid growth, which increased by a factor of 1.9.
How can a business use design to increase turnover growth?
If you’re designing new products and services, use design to lead and guide the process. The chances of design contributing to turnover growth rose more than threefold (by 3.3) when this happened.
Use design in all stages of developing new products and services. Businesses that did were twice as likely to see design contributing to growth (by 2.1).
Use design in business planning. Doing so doubled the chances of design contributing to turnover and profit growth in the businesses we surveyed.
Use design in internally facing functions (such as workplace interior and internal communications). This increased the chances of design contributing to turnover growth by 1.8 times.
What can a business do to increase design’s contribution to employment?
Use design in internally facing functions (such as workplace interior and internal communications). This increased the chances of design contributing to employment growth by 1.8 times.
What can a business do to increase design’s contribution to turnover and profit?
Use design in business planning. This increased the chances of design contributing to turnover growth and profit growth by 1.9 times.