How Good Design Practice Can Really Benefit Your Business
Global management consulting firm McKinsey & Company has launched The Business Value of Design, a key five-year study that looks at the correlation between good design practice and profitability.
Conducted by the company’s McKinsey Design division, the study tracked the design practices of 300 publicly listed global companies in industries ranging from consumer goods to retail banking and medical technology.
“This is the first time that there has been a rigorous quantification of the business value of design, and the first time individual design actions have been tied back to business performance,” said Ben Sheppard, a partner at McKinsey Design, at a launch event in New York.
The team collected more than two million pieces of financial data and recorded over 100,000 design actions. McKinsey explains that an example of an ‘action’ could be putting someone on the executive board with a responsibility for design, user experience, or both. Or tying management bonuses to design quality or customer-satisfaction metrics – not just sales.
Its new McKinsey Design Index (MDI) also gives each of the companies a single score based on hundreds of these design actions taken.
Companies in the top quarter had 32% more revenue and 56% higher total returns to shareholders compared with industry peers, and were also the ones who made user-centric design everyone’s responsibility by implementing cross-functional teams.
From November 9, any company can take a 30-minute MDI online assessment to understand where its design performance sits on the MDI and uncover where potential opportunities might lie.