Abstract

Following evidence of its positive contribution to innovation and company performance, many firms are seeking to elevate design to a strategic level. However, little is known as to how this can be achieved. This study draws on the literatures concerned with elevating organizational functions and with organizational legitimacy, and aims to unravel and detail critical practices and potential tensions influencing the elevation of design's status in firms. To do so, 53 in‐depth interviews were undertaken with key informants, representing a range of functional specialisms, in 12 companies, including large multinational companies as well as small and medium‐sized enterprises (SMEs). Findings show how six practices—top management support, leadership of the design function, generating awareness of design's role and contribution, interfunctional coordination, evaluation of design, and formalization of product and service development processes—affect the design elevation process. In contrast with previous studies on raising the status of organizational functions, this research reveals that the same practice can play both positive and negative roles, and that there are fundamental tensions, which should be reconciled if design's status is to be elevated. Drawing on the concept of organizational legitimacy, we also examine how design moves beyond being seen as pragmatically useful, to being identified as a relevant, alternative way of operating, to being regarded as essential for success. The article concludes by articulating contributions to design and innovation management theory and practice, and to the body of scholarly work seeking to understand how to elevate the status of a function.

Highlights

  • Design is a primary driver of innovation in both manufacturing and services (Luchs, Swan, and Creusen, 2016; Ostrom, Parasuraman, Bowen, Patricio, and Voss, 2015; Verganti, 2009)

  • At Company C, the head of design asserted: “once we prove ourselves with multiple product launches, get great customer feedback, make lots of revenue off of those ... and the design around it becomes something that people talk about, all of a sudden, the message is a hell of a lot easier to sell throughout the group.”

  • This study explores the elevation of design within the firm and identifies six practices that underpin the enhancement of design’s status

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Summary

Introduction

Design is a primary driver of innovation in both manufacturing and services (Luchs, Swan, and Creusen, 2016; Ostrom, Parasuraman, Bowen, Patricio, and Voss, 2015; Verganti, 2009). The business press is rife with examples – from BMW to PepsiCo, from Herman Miller to Nike – of design’s significant role in achieving these outcomes, by elevating the design function to a strategic level within the firm (Bangle, 2001; Borja de Mozota, 2003; Brown, 2008; Verganti, 2009). [To do so] we worked hard to grow and develop the design team—gave them time to grow capabilities, gain experience, and prove their value to the product and brand teams.” “Historically, P&G was brand- and product-centric. [More recently] we have used design to take a different cut at strategy and organizational planning to do things differently and better. [To do so] we worked hard to grow and develop the design team—gave them time to grow capabilities, gain experience, and prove their value to the product and brand teams.” (Lafley, Norman, Brown, and Martin, 2013; p. 5)

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