Investing in design makes a fundamental difference in the performance of a company, a new study by consulting firm McKinsey has found. The study looked at the design capabilities of 300 publicly listed companies across various industries over the last five years, and it's the first to quantify the business value of design, McKinsey says.
“It’s through mistakes that you actually can grow. You have to get bad in order to get good.”
To reach these conclusions, researchers first looked at how the companies were doing in terms of revenue, profits and overall value. They then analyzed all the design-oriented actions that the companies were taking during that period -- for example, nominating a design officer into an executive board or tying bonuses to the user experience, in addition to normal financial metrics
At the end, after McKinsey had accrued over 2 million financial data points and 110,000 design actions, it started looking for correlations, noting the link between design performance and financial performance.