Design of Management

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    Introduction to DesignManagement

    Author:

    Arlene Gould, MBA, FRSA

    Department of Design,

    York University

    [email protected]

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    Design Management: DefinitionDesign Management is the practice of

    managing design resources effectively at

    all levels of company activity

    Design Management connects designobjectives, with business, environmental

    and social (user-driven) objectives to helpcompanies to achieve strategic goals andto contribute to the quality of life.

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    A Tipping Point forDesign

    Organizations can no longer count on quality, performance,

    or price alone to sustain leadership in the global

    marketplace.

    Design has emerged as a new competitive weapon and key

    driver of innovation.

    Roger Martin, Dean

    Rotman School of Management

    University of Toronto

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    History of Design Management The benefits of Design Management

    practices to line managers in

    manufacturing companies were promotedby Peter Gorb, at London Business School

    in London, UK in the early 1980s.

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    History of Design Management At the Dutch conglomerate, Philips, Robert

    Blaichs early use of design management

    practices became a model for othermanufacturers. By managing design at all

    levels, Blaich improved product quality,

    established unity across product lines and

    helped Philips to challenge international

    competitors like Sony.

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    Basic Principles The strategic management of design resources

    is a core competency and key differentiator formanufacturing companies.

    Managing design in manufacturing involvesmobilizing the creativity and problem-solvingskills of designers to:

    expand innovation, reduce environmental impacts and

    improve commercialization success.

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    Basic Principles To connect design to sustainable business

    success, manufacturers need to involvedesigners in R&D and in the early stages of

    product production.

    Design Management integrates design capabilitywith engineering and other strategiccompetencies in product development and

    production.

    Manufacturers should encourage closercollaboration between engineers and designers.

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    Canadas Design Capability Canada is strong in design capability, with

    a high number of expertly-trained

    designers in thelabour force.

    A recent study by the Design IndustryAdvisory Committee (DIAC) showed that

    Ontario, (the countrys manufacturing hub),has the highest concentration of designers.

    www.diac.on.ca

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    TOP 15 NORTH AMERICAN CITIES(POPULATION: 1 MILLION+)

    Design Design

    Employment Index

    1 New York San Francisco

    2 Boston Boston

    3 Toronto New York

    4 Chicago Toronto5 Los Angeles Montral

    6 Montral Seattle

    7 San Francisco Vancouver

    8 Detroit Columbus

    9 Philadelphia Milwaukee

    10 Seattle Portland11 Minneapolis-St. Paul Ottawa-Hull

    12 Dallas Minneapolis-St. Paul

    13 Atlanta Detroit

    14 Washington West Palm Beach

    15 Phoenix Denver Note: Excludes self-employed individuals.Source: Statistics Canada, 2001.

    Census of Population; Bureau of Labour

    Statistics, 2001. Occupationa

    lEmp

    loyment

    Statistics Program.

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    Best Practices Design Leadership from the Top

    CEO should be the company design champion.

    Put Someone in Charge Appoint a Design Manager to lead the design team

    and to connect all design activities (product,communications, facilities) to strategic objectives inthe company.

    Allocate reasonab

    le resources to design timelines and budgets should be generous enough to

    encourage breakthrough results.

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    Best Practices (contd) Invest in designers, not just design

    even the best design solution can be quicklycopied. Building long-term relationships with

    designers helps companies to keep ahead of thecompetition.

    Focus on the process, not just end products designers can help to revise or to reinvent

    production processes to cut time and costs and to

    mitigate environmental impacts. Train employees in design-awareness

    design management practices: empower and motivate employees

    help to attract and keep the best talent

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    Building the Company Brand

    Managing design strategically involves

    connecting the work of product designers with

    communications design, architecture andfacilities design.

    An integrated approach to design helps

    companies to project a strong, unified brand to

    the world.

    Strong brands build customerloyalty and expand

    export success.

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    Design forSustainability (DfS) Designers can help manufacturers to reduce

    environmental impacts of production whileincreasing competitiveness.

    Design decisions on materials sourcing, newproduction processes, distribution andcommunications systems can all impact onreducing the environmental footprint ofmanufacturing activities.

    Manufacturers can get ahead of the curve onenvironmental performance by working withdesigners to make critical improvements at everystep in their process.

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    Design forSustainability (contd) Even small steps, like a materials reduction

    program to minimize waste or reducingpackaging content, can make a big difference.

    Small and medium-sized enterprises (SMEs) canbe more innovative in using design strategies tocapture a business advantage while also

    improving their environmentalperformance.

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    Case Studies for DfS A case study research project started by the

    Schulich School of Business at York University

    has been documenting these small business

    success stories.

    Graduate students in business, environmental

    studies and design management have done the

    research. Cases can be viewed at:

    www.design4sustainability.org

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    Benefits of Design Management

    Companies that use design strategically can:

    Develop and commercialize more customized,unique and compelling products and servicesfor domestic and global markets.

    Develop more user-centred products.

    Reduce costs in product development,implementation and distribution.

    Minimize environmental impacts in every stepin the manufacturing process.

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    Benefits of Design Management Expand brand awareness.

    Ref lect and integrate company vision and

    values through all products, services andcommunications.

    Increase employee engagement and

    motivation.

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    Design and Business SuccessIndustry Canadas Strategis website states:

    Effective, innovative design is a critical factor foreconomic growth. Through the application ofsound design practices, design practitioners areable to increase the value of products, services,communications and physical spaces, while atthe same time reduce costs, improve efficiency

    and increase productivity.http://strategis.ic.gc.ca/epic/internet/indsib-

    dsib.nsf/en/Home

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    Economic Value of Design UK Design Council analyzed the stock

    market performance of design-led

    companies versus their peers over a 10year period.

    They demonstrated that companiesinvesting in design were more competitive

    at all stages in the business cycle.Design Council (2004)

    www.designcouncil.org.uk