Growing by design Human-centered design has long been about more than just the creation of smart, effective goods and services. It is about developing the collaborative skill sets that businesses need to build services and experiences for customers. Companies seeking to drive growth and competitive advantage are increas- ingly committing to design as a core aspect of their approach. Indeed, many companies treat corporate strategy development as an exercise in design to help navigate the extraordinary levels of complexity faced today. Such an approach has the potential to generate tremendous value, but even as design becomes integral to the business strategy, there remains a need to justify the spend. Traditional metrics provide a way to gauge possible returns, but the rigid application of ROI measures can kill radical ideas in favor of oppor- tunities closer to the core business. Yet, it is the radical ideas that can transform a company and set it on a new trajectory. So how can companies get beyond a “way things are done here” mindset and make space for radical ideas? First, there is a need to understand the power of design. It should be applied in situations where innovation is required, to cut through complexity or to imagine the future. Design offers a different set of tools than those for optimizing, rationalizing and streamlining a business, so it cannot be measured in exactly the same manner. Second, it needs to be understood that the system-level value that accumulates throughout a firm over many years is not easy to fit within basic ROI metrics. What value will an initiative ultimately bring if it provides a far better customer experience? How can you measure the value of a business transformation? Holistic initiatives that enhance multiple aspects of a business need broad measures that truly capture their value to the firm. While each company’s design initiatives will be unique, there are—as this Insights Paper reflects—a wealth of business metrics that effectively measure the business value of design. BUSINESS VALUE OF DESIGN frogdesign.com | 16