Design delivers
for business

A summary of evidence from the
Design Council’s Design Leadership Programme
September 2012

A boost to
business growth
Improved capability
and confidence
Lasting impact

The difference
is design.
www.designcouncil.org.uk/leadership

Design delivers for business

2Design boosts
business growth

Design improves
business capabilities

Business results

The programme aims to make British
businesses (in particular SMEs with potential
for growth) more aware of the strategic valueof design and how to manage it for effective
long term results. Businesses overwhelmingly(over 96%) stated that the Design Leadership
Programme was strategically important intackling issues not previously dealt with.

── Design increases turnover: For every £1
invested in design, businesses can expect
over £20 in increased revenues── Design is linked to profit: For every £1
invested in design, businesses can expect
over £4 increase in net operating profit── Design boosts exports: For every £1
invested in design, businesses can expect
a return of over £5 in increased exports“During the process,we re-energised
our staff, leading
to an increase inturnover of around25%, and the creationof eight new jobs. I
firmly believe thatwithout the support
our growth would
have been severelyhampered”.
Service business, South East

The Design Leadership Programme hashelped businesses to identify their biggest
strategic challenges and create newopportunities to overcome them by using
design effectively. By identifying design
opportunities to drive innovation andgrowth, businesses have then invested inand commissioned design projects withongoing coaching support to ensure they areimplemented successfully.

In addition to the tangible business impacts,
the programme has been changing the way
businesses work, which in turn has improved
organisational culture and performance.
72% of businesses surveyed felt the Design
Leadership Programme had changed theculture of their organisation into one that wasmore design-focused.

Business areas strengthened
through design── Stronger and more compelling brands
that stand out in the market── Accelerating new ideas to market
── Creation of new products and services
that have transformed existing markets oropened up new ones── Establishing improved or new processes for
product and service development to more
effectively support innovation activity£20+

For every £1 invested in design,businesses can expect over
£20 in increased revenues

Design increases
turnover“... we are (now) better at finding
the solutions to some of our issues
and are consistent in our approachto design and brand.”Food and drink manufacturer, South West£4+

For every £1 invested in design,businesses can expect over £4
increase in net operating profit

Design leads to profit£5+

For every £1 invested in design,businesses can expect a return ofover £5 in increased exports

Design boosts exports

Design delivers for business“The DesignLeadership
Programme madea significant
contribution to
the growth of ourbusiness … it provided
a fantastic boost
to morale at a time
when it was muchneeded and raised ourteam confidence andexternal perceptionsof our capabilities.
It inspired us togo forwards withconfidence andconsequently
transformed us froman average firm to amarket leader.”3Design increases
business confidence

Good design practicehas a lasting impact

The programme’s supportive coachingapproach and exposure to working withdesigners has meant that businesses become
more knowledgeable about the value of designand how to make design deliver for them.

Businesses went on to procure design beyond
the programme, showing that once they havebeen exposed to design tools and good design
management practice, they are equipped todo it again themselves. 48% of businesses
surveyed have invested in further design
projects since completing the programme.

63% of those surveyed were not confident
about working with design before participatingin the Design Leadership Programme. As
a result of the coaching received on theprogramme this figure rose to 100%.
In addition, businesses are clearer that design
has an integral role to play and should not beside-lined for other strategic requirements.
Before the programme 55% viewed design
as integral to business, compared with 98%
after the programme.

During the programme just under £4.7m
was invested by the respondents in procuringexternal design agencies to undertakeprojects identified. This equates to a national
average net investment made directly by eachcompany of just under £11.5k per project.
After the programme participants plan toinvest an additional £7.8m in design projects
between 2011 and 2014. The evaluation
has found that this spend can be attributed
directly to the influence of the Design
Leadership Programme.

“… the legacy has been to makedesign an integral part of thebusiness going forward.”
Start-up aerospace business, South East

Service business, Yorkshire

BEFORE

55%

AFTER

98%

Before the programme 55% viewed design as integral tobusiness, compared with 98% after the programme.

Design delivers for business

4Evaluation methodology

About the Design
Leadership ProgrammeThis independent study by Eden Partners isthe first national picture of the impact overtime of the Design Leadership Programmefor business.

The Design Council’s Design Leadership
Programme is a national coaching
programme that promotes the value ofstrategic design to business to help boost
their commercial performance. The DesignLeadership Programme for Business– Designing Demand – was previously
delivered on a regional basis, and has
supported over 2000 SMEs and coached over
700 to use design as a business development
tool since 2007. From 2012 the programme
has been delivered directly by the Design
Council. The programme aims to foster agreater understanding of the strategic role
design can play in business and embed design
tools, techniques and management withinbusiness to build skills and capability.

Business impacts measured── Pounds return for every pound investedby the business in design as a result of
the programme, including increased
operating profit, revenues and exports── Strategic Added Value such as impacts onorganisational culture and capabilities
Government impacts measured── Gross Value Added and Net Value Added
for every pound of public investment
── FTE jobs created and safeguarded── Additional exports generated
The evaluation methodology involved theamalgamation of findings from three previous
regional evaluations of the programme which
captured detailed data from 130 businesses,with additional primary research in 2012
capturing detailed data from a further 119
companies. The study calculated up to dateeconomic impacts on businesses, in this caseprimarily SMEs and high-tech start-ups.
In addition, qualitative research wasundertaken with a sample of design agencies
providing support to businesses to understandthe impacts on their businesses and totriangulate evidence from the business survey.
The evaluation methodology uses deadweight,
leakage, substitution, and multiplier effects
where applicable to accurately reflect theadditional impacts of the programme.

For further information including casestudies from the evaluation, go to
www.designcouncil.org.uk/leadership
Email: leadership@designcouncil.org.uk