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Thursday, June 18
The Power of Design - Part 1: No Design, Thanks.

Much of the discussion about the role of design in companies is clouded by jargon and designer up selling. Most designers will tell you with a straight face that design is the most important factor for any business, which is obviously just not true. There's a more realistic battle for designers selling their services to corporations. That is to get design equal billing alongside the traditional C-level functions.

Design evangelists may be aghast at such a statement but it is possible that design is just not a real requirement for some companies. For example, a company may simply have much more pressing operational problems than design. For design to be effective, quality and cost must be under control, engineering, inventory and supply chain must be efficient and marketing and sales must be in working order. Design may also be considered fundamental to a company's functioning but it may simply not be the priority yet.

A company could be functioning effectively but be working in a utterly commoditized area. Should the manufacturer of the yellow triangles that cleaning staff around the world use to warn of slippery floors be looking for a design edge? There's no doubt that the most moribund industry (coffins anyone?) can be attacked with design. Indeed these are often the juiciest targets for an ambitious company daring to redefine an industry. The question is whether this is a sure-fire requirement for every dull, worthy market.

On the far end of the spectrum, highly sophisticated companies working in high technology areas could also see design as a less than strategic tool. Design thinker Steve Portigal noted the irony of Flextronics, the $18bn global ODM, being voted one of the Wired 40 based on it's design ambitions. In fact Flextronics caused a little seismic event amongst designers a few years ago when then CEO, Michael Marks announced to the world that design had become a commodity and was no longer a strategic advantage. This was shortly after the acquisition of Frog, the celebrated boutique shop and was followed by the shedding of Frog together with some other non-core businesses.  Only time will tell how prophetic Mark's words turn out to be.

In the case of defensible intellectual property devoid of design, the candidates are rare who can build a company on that basis as opposed to a single product. Most end up like Polaroid. There are also cases where some other advantage; massive scale, superior reach, hyper vertical integration and so on, confers an advantage that design simply can't match. However,  these advantages boil down to cost.

And cost is where the discussion winds up. For without design the reliable tools of quality and efficiency strive to lower the price without any hope of raising it sustainably. So there may be exceptions but for most companies another tool is required; one that can break the zero-sum game of cost-driven competition.

Next: Improving Style

The Power of Design by guest contributor Tasos Calantzis is a series in 5 parts looking at the different ways in which design can be used within a company, cutting away hyperbole in the typical design sales pitch and investigating the real benefits of design to customers,  the organization and its revenue. The 5 parts discuss incremental steps: no design, style, form & function, solving business problems and achieving leadership.



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