Introduction to Design

Management
Author:
Arlene Gould, MBA, FRSA
Department of Design,
York University
asgould@yorku.ca
 Design Management: Definition
Design Management is the practice of
managing design resources effectively at
all levels of company activity…

Design Management connects design

objectives, with business, environmental
and social (user-driven) objectives to help
companies to achieve strategic goals and
to contribute to the quality of life.
Slide 2
 A Tipping Point for Design…

“Organizations can no longer count on quality, performance, or

price alone to sustain leadership in the global marketplace.

Design has emerged as a new competitive weapon and key

driver of innovation.”

Roger Martin, Dean

Rotman School of Management
University of Toronto

Slide 3
 History of Design Management
• The benefits of Design Management
practices to line managers in
manufacturing companies were promoted
by Peter Gorb, at London Business School
in London, UK in the early 1980s.

Slide 4
 History of Design Management
• At the Dutch conglomerate, Philips, Robert
Blaich’s early use of design management
practices became a model for other
manufacturers. By managing design at all
levels, Blaich improved product quality,
established unity across product lines and
helped Philips to challenge international
competitors like Sony.

Slide 5
 Basic Principles
• The strategic management of design resources
is a core competency and key differentiator for
manufacturing companies.

• Managing design in manufacturing involves

mobilizing the creativity and problem-solving
skills of designers to:
– expand innovation,
– reduce environmental impacts and
– improve commercialization success.

Slide 6
 Basic Principles
• To connect design to sustainable business
success, manufacturers need to involve designers
in R&D and in the early stages of product
production.

• Design Management integrates design capability

with engineering and other strategic competencies
in product development and production.

• Manufacturers should encourage closer

collaboration between engineers and designers.
Slide 7
 Canada’s Design Capability
• Canada is strong in design capability, with
a high number of expertly-trained
designers in the labour force.

• A recent study by the Design Industry

Advisory Committee (DIAC) showed that
Ontario, (the country’s manufacturing hub),
has the highest concentration of designers.
www.diac.on.ca
Slide 8
 TOP 15 NORTH AMERICAN CITIES
(POPULATION: 1 MILLION+)
Design Design
Employment Index
1 New York San Francisco
2 Boston Boston
3 Toronto New York
4 Chicago Toronto
5 Los Angeles Montréal
6 Montréal Seattle
7 San Francisco Vancouver
8 Detroit Columbus
9 Philadelphia Milwaukee
10 Seattle Portland
11 Minneapolis-St. Paul Ottawa-Hull
12 Dallas Minneapolis-St. Paul
13 Atlanta Detroit
14 Washington West Palm Beach
15 Phoenix Denver
Note: Excludes self-employed individuals. Source: Statistics Canada, 2001.
Slide 9
Census of Population; Bureau of Labour Statistics, 2001. Occupational Employment Statistics Program.
 Best Practices
• Design Leadership from the Top
– CEO should be the company design champion.
• Put Someone in Charge
– Appoint a Design Manager to lead the design team
and to connect all design activities (product,
communications, facilities) to strategic objectives in
the company.
• Allocate reasonable resources to design
– timelines and budgets should be generous enough to
encourage breakthrough results.

Slide 10
 Best Practices (cont’d)
• Invest in designers, not just design
– even the best design solution can be quickly copied.
Building long-term relationships with designers helps
companies to keep ahead of the competition.
• Focus on the process, not just end products
– designers can help to revise or to reinvent production
processes to cut time and costs and to mitigate
environmental impacts.
• Train employees in design-awareness
– design management practices:
• empower and motivate employees
• help to attract and keep the best talent

Slide 11
 Building the Company Brand
• Managing design strategically involves
connecting the work of product designers with
communications design, architecture and
facilities design.
• An integrated approach to design helps
companies to project a strong, unified brand to
the world.
• Strong brands build customer loyalty and expand
export success.
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 Design for Sustainability (DfS)
• Designers can help manufacturers to reduce
environmental impacts of production while
increasing competitiveness.
• Design decisions on materials sourcing, new
production processes, distribution and
communications systems can all impact on
reducing the environmental footprint of
manufacturing activities.
• Manufacturers can get ahead of the curve on
environmental performance by working with
designers to make critical improvements at every
step in their process.
Slide 13
 Design for Sustainability (cont’d)
• Even small steps, like a materials reduction
program to minimize waste or reducing
packaging content, can make a big difference.

• Small and medium-sized enterprises (SMEs) can

be more innovative in using design strategies to
capture a business advantage while also
improving their environmental performance.

Slide 14
 Case Studies for DfS
• A case study research project started by the
Schulich School of Business at York University
has been documenting these small business
success stories.
• Graduate students in business, environmental
studies and design management have done the
research.
• Cases can be viewed at:
www.design4sustainability.org

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 Benefits of Design Management
Companies that use design strategically can:

• Develop and commercialize more customized,

unique and compelling products and services
for domestic and global markets.
• Develop more user-centred products.
• Reduce costs in product development,
implementation and distribution.
• Minimize environmental impacts in every step
in the manufacturing process.

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 Benefits of Design Management
• Expand brand awareness.
• Reflect and integrate company vision and
values through all products, services and
communications.
• Increase employee engagement and
motivation.

Slide 17
 Design and Business Success
Industry Canada’s Strategis website states:
“Effective, innovative design is a critical factor for
economic growth. Through the application of
sound design practices, design practitioners are
able to increase the value of products, services,
communications and physical spaces, while at
the same time reduce costs, improve efficiency
and increase productivity.”
http://strategis.ic.gc.ca/epic/internet/indsib-
dsib.nsf/en/Home

Slide 18
 Economic Value of Design
• UK Design Council analyzed the stock
market performance of design-led
companies versus their peers over a 10
year period.
• They demonstrated that companies
investing in design were more competitive
at all stages in the business cycle.
Design Council (2004)
www.designcouncil.org.uk
Slide 19