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Proving the case for design

Why investing in design makes commercial sense for big business thanks to McKinsey's latest report 'The business value of design'.

McKinsey’s report ‘The business value of design’ makes an empirical case for why design makes commercial sense for big businesses.

The McKinsey Design Index (MDI) draws on qualitative and quantitative research from across industry verticals.

Although it uses some self-reported data, it seems to make a strong case for a link between business commitment to design and financial performance. 

In essence, the report suggests that design-led companies enjoy a third more revenue and over 50% higher total shareholder returns compared with other companies failing to invest in design.

It’s a valuable contribution to the debate about the value of design.

For many design practitioners (including Foolproof) it has long been an article of faith that iterative, customer-centred design pointed at measurable outcomes is the key to winning in digital.

We can all point to cases and stories which show the dramatic business effect of great design, but to have a comprehensive body of data adds new weight to old arguments. Thanks McKinsey. 

The long and the short of it

If your organisation thinks, leads and delivers through design, using modern methods and to measured outcomes, you will perform better financially. Period.

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Design Value - FAQs

Design is a strategic business capability that influences how customers interact with products, services, and brands. Effective design helps organizations understand user needs, simplify experiences, and create solutions that deliver meaningful value. Research highlighted in the article demonstrates that businesses committed to design often outperform competitors financially. Rather than focusing solely on aesthetics, modern design improves usability, accessibility, efficiency, and customer satisfaction. Organizations that invest in design create stronger relationships with customers because their products are easier to use and more aligned with real-world needs.

The McKinsey research referenced in the article found a strong correlation between design maturity and financial performance. Design-led organizations often achieve higher revenue growth and stronger shareholder returns compared to businesses that underinvest in design. These results occur because effective design reduces friction, improves customer experiences, and increases adoption of products and services. When customers can accomplish their goals more easily, organizations typically benefit from greater loyalty, advocacy, and long-term profitability. Design therefore becomes a critical driver of business value rather than simply a creative discipline.

Customer-centered design is an approach that prioritizes the needs, goals, and behaviors of users throughout the design process. Organizations use research, testing, and feedback to ensure solutions address real problems rather than assumptions or internal preferences.This methodology improves decision-making because design choices are grounded in evidence. Organizations gain deeper insights into customer expectations and can develop products that are more useful, intuitive, and effective. As a result, customer-centered design significantly increases the likelihood of market success.

Design-led companies place customer understanding at the center of strategy, innovation, and delivery. They continuously measure outcomes, gather feedback, and improve experiences based on data and observation. This enables them to adapt quickly to market changes and evolving customer needs. Rather than viewing design as a final stage of development, these organizations integrate design throughout the business lifecycle. This holistic approach improves product quality, reduces risk, and strengthens customer relationships, contributing to superior financial performance over time.

Creating a design-driven culture begins with leadership commitment and organizational alignment around customer needs. Design should influence strategy, product development, customer experience, and innovation initiatives rather than operating in isolation. rganizations should encourage collaboration between designers, researchers, product managers, and business stakeholders. They should also invest in customer research and establish measurable outcomes to guide decision-making. When design becomes embedded across the organization, it creates a culture focused on solving problems and delivering customer value.

In increasingly crowded markets, products and services are often similar in functionality and price. Design helps organizations differentiate themselves by creating experiences that are simpler, more engaging, and more valuable for customers. Businesses that prioritize design are better positioned to innovate, build trust, and respond to changing customer expectations. As technology continues to evolve, customer experience will remain a critical competitive factor. Organizations that invest in design today are likely to gain long-term advantages through stronger customer loyalty, improved business performance, and sustained market relevance.