Design = Business Catalyst or Financial Drain?
Sunday, March 18, 2007 at 5:43AM
Alphachimp in ROI, design

Stretching back in time before the era of the printing press or the pyramids, there has been a war raging within the human race--a war between accountants and designers.

From the FastCompany blog:

No Accounting for Design

Is market share a meaningful measure of design's financial performance? You'd think so, judging by the number of design consultancies that use increases in sales and market share to trumpet the "success" of their redesigns. The Industrial Designers Society of America even uses market share and sales as two important metrics for its prestigious Design & Business Catalyst award, which recognizes "market and financial performance" so as to demonstrate to executives "the value of design."

But while market share might be meaningful to designers, it has far less resonance with CFOs, the ultimate arbiters of design investments. Julie Hertenstein and Marjorie Platt, two Northeastern University accounting professors who've attempted to quantify the contribution that design makes to the bottom line, argue that market share, by itself, doesn't really mean much. "Market share is just that, a share˜it's measured as a percentage," says Hertenstein. "If you can't measure it in dollars, it doesn't show up on the accounting statement." read full post>>


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