Beyond advanced design management strategic value

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BEYOND ADVANCED DESIGN MANAGEMENT Strategic value Vision Prospective Change management Empowerment Knowledge learning process Imagination 4. GOOD DESIGN IS GOOD BUSINESS . THE HISTORIC DM ECONOMIC MODEL Financial & accounting value ROI Value for society Stock market value Socially responsible enterprise How will we sustain, through design, our ability to change and improve? To succeed financially, how should design appear to our shareholders? To satisfy our stakeholders, how can design help in the business processes we excel in? Figure 3. It is crucial to explain in any design brief, and to measure in any design project, how design creates value from the four perspectives of the Balanced Score Card model. Source: R. Kaplan and D. Norton, Linking the Balanced Scorecard to Strategy, California Management Review, vol. 39 (1996), no. 1. Design Management Review Spring 2006 47 The Four Powers of Design: A Value Model in Design Management 48 Design Management Review Spring 2006 Adding Value Through Design decision, design policy, or design project. But more important, the BSC tool is a causeand- effect model, in that each perspective has an impact on the other three. Employee quality, for
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example, drives customer value and financial value; process improvement affects financial value and customer value, and so on. Just as a designer working on a project is used to thinking holistically, the BSC indicators are meant systemically improving the quality of product design improves employee satisfaction and creates new knowledge that can generate better production process performance (and vice versa). In the same way, the BSC shows how each design discipline is linked with other design disciplines in a system based on a common, central vision. The cases starting on page 49 are examples of the implementation of this model in three companies, each of which focuses on a different design discipline: Attoma (information design); Decathlon (product design); and Steelcase (workspace design). The Balanced Score Card for Running a Design Department or a Consultancy Now, how shall we apply the Balanced Score Card to measure the performance of a design consultancy or a design department? Imagine that you are a design manager or a CEO.What issue faces you both when you come in to work each morning? Company performance. What is design s responsibility in improving this performance? What indicators should you measure on a continuing basis? How could that goal be expressed with the design value model or the four BSC perspectives? Figure 4 offers an example. For each of the four BSC perspectives, we chose indicators that are easy to measure and easy to link with company performance indicators. Some indicators are used by many functions of the organization; some are specific to the design function. It is important that design managers link their own indicators with the BSC indicators of the company s performance, as well as with design briefs, as a measure of the everyday performance of design staff.
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