Across industries, companies that invest in design consistently outperform those that don’t. Studies show that every dollar put into design can generate many times its value. For example, a UK Design Council report found that “on average, every $1 invested in design returns $20 in revenue”[1]. In the US, design-focused firms (as measured by the Design Management Institute) “outperformed the market by 228%” over ten years[1]. McKinsey & Company’s research confirms this trend: top-quartile design-led companies grew revenue 32% faster and total shareholder return 56% faster than peers[2]. Notably, these gains hold across sectors — whether medical devices, consumer goods, banking, or software — indicating that strong design drives success in physical products, digital services, or any combination[3]. In short, when design is treated as a strategic investment, businesses win; when it’s sidelined, they risk falling behind.
Yet many organisations still misunderstand or undervalue design. Common misconceptions paint design as merely “decoration” or an expense with intangible benefits. In practice, design actually weaves user empathy, aesthetics, and business goals together into better products and services. But without the right framing, stakeholders often fixate on superficial aspects. A typical refrain — “Can you make it pop?” — reduces hours of research and prototyping to “a matter of colours and icons”[4]. This trivialisation reflects a gap: design work is invisible when done well[5] and most people only notice it when it fails. As one designer explains, “To many, design feels invisible when it works well. People notice design when it fails … Most don’t see the hours of research, iterations, and testing behind a clean interface”[5].
Evidence that design drives success
The data is clear: companies that take design seriously tend to succeed. Design-intensive organisations not only see better products, but also significantly stronger business performance. For instance, the McKinsey Design Index (MDI) tracked 300 public companies and found that high-MDI companies achieved far higher growth than industry peers[2]. A high score meant design was embedded at the leadership level, quantified like revenues, and integrated across physical, digital, and service offerings. These top performers doubled the growth rates of competitors. Even in traditionally conservative sectors (e.g. healthcare or banking), leaders with strong design programs — listening to users, iterating continually, and unifying UX across platforms — saw outsized gains[2][6].
Other research confirms this. Across Europe and the US, industry surveys report that design-led companies grow faster and with higher profitability. Danish firms investing in design grew ~22% faster than peers[1], and Finnish studies link design investment to specific business KPIs. Leading tech companies (Apple, Google, IBM, etc.) have internalized this: they hire Chief Design Officers, include designers in strategy meetings, and tie executive bonuses to user satisfaction. (As McKinsey notes, even putting a design leader on the executive board is now seen as a “design action”[7].) These practices reinforce that design can be measured and managed like any other business function.
By contrast, firms that treat design as an afterthought often struggle. The McKinsey survey found 40% of companies never involve end-users in development, and over half have no way to measure design output[8]. Without metrics, executives find it easy to cut design budgets. One analysis observes that “with no clear way to link design to business health, senior leaders are often reluctant to divert scarce resources to design functions”[8]. In practice this means many designers remain “second-class citizens” inside organisations[6], stuck in middle management without a voice in strategic decisions.
Why design is often misunderstood
Several factors contribute to these misunderstandings:
Language and Communication Gap. Business leaders and designers often speak different languages. Vitaly Friedman notes that corporate boardrooms are full of aggressive metaphors — “capture mindshare, conquer the market, target customers”[9] — while designers talk about empathy, reducing friction, and meeting user needs. These vocabularies can clash. Executives may struggle to see how “improving consistency” translates into sales or ROI, and designers may seem vague or idealistic. As Friedman summarises: “UX language is overloaded with ambiguous terms… Business can’t support confusing initiatives”[10]. Unless designers translate their ideas into business terms, their proposals can sound ungrounded.
Invisibility of Good Design. When a design works smoothly, it goes unnoticed; when it fails, everyone notices the glitch. This “design feels invisible when it works” dynamic[5] means stakeholders often assume the product would have been fine without much design effort. They only see errors (“the UX is confusing”) and blame designers, or conversely praise a product’s success but credit engineering or marketing instead. Over time, companies may internalise the myth that design is “nice-to-have” rather than critical.
Ambiguity of “Design” as a Term. Unlike the well-defined realms of engineering or finance, “design” covers a lot of ground. Is it graphic design, industrial design, UX design, strategic design thinking, brand strategy? This ambiguity can confuse non-experts. A CEO might think hiring a graphic artist covers “design,” not realising that design can include user research, prototyping, and systems thinking. The multiple meanings of design (from how it looks to how it works to what problem it solves) create gaps in understanding.
Historical Youth and Culture. Compared to engineering or marketing, design management as a formal corporate discipline is relatively new. Only in the past 20 years have many large companies established dedicated UX or design teams. In many business schools and executive training programs, engineering- and finance-first mindsets still dominate. As a result, many managers grew up thinking of design mainly as styling or advertising. This historical lag means design often lacks its own language of ROI in corporate culture. (As the design strategist David Kelley puts it, “Most business people… don’t perceive [design’s] value”[11].)
Difficulty of Measuring ROI. Design’s benefits — better user satisfaction, brand reputation, lower support costs — can be harder to quantify than, say, a new sales funnel or a cost-cutting automation. Many designers admit they have not embraced rigorous metrics, making it hard to show hard numbers[12]. Without concrete data, businesses default to counting only the design fees as “investment” and overlook the long-term gains.
These issues exist across product types. In digital product development, companies often adopt agile and UX methods, but design can still be squeezed by tight deadlines or by managers who underestimate user testing. In industrial design (physical goods), cost concerns can swamp innovation, leading to conservative, “safe” designs or deferring design to late stages. Yet the core misunderstanding — that design is “soft” or optional — crops up in both realms. McKinsey’s cross-industry study suggests that whether a company makes smartphones or software or surgical tools, undervaluing design leads to missed opportunities[3].
How designers can bridge the gap
If the problem is one of communication and alignment, designers have clear steps to improve their influence:
Frame Design in Business Terms. Before talking about pixels or prototypes, clarify what business problem is being solved. Start each project by asking: What are the company’s goals (revenue, market share, efficiency)?and how can design initiatives translate to those goals?[13]. In meetings, ditch jargon: talk about increasing conversion, reducing support calls, expanding user base — not just “improving consistency.” As one design leader advises, “Leave UX language and jargon at the door” and instead “visualise how our work helps the business,” telling stories of efficiency or sales lift[10][9].
Define and Measure Success. Treat design as an investment with clear ROI. That means agree on metrics up front. For example, if you redesign a signup flow, set a target (e.g. “30% faster completion time” or “increase signups by 10%”) and measure after launch[14]. Good practice (the Finnish Design ROI model) is to mix hard data (sales, time savings) with soft data (customer satisfaction surveys)[14]. Maintaining a “before and after” data set helps demonstrate real impact, which can be used in proposals and pitches[15]. When businesses see design tied to numbers, they’re far likelier to fund it.
Educate and Involve Stakeholders. Instead of reacting defensively (“it’s not my job”), designers can proactively teach stakeholders about the design process. Show rough sketches and prototypes early. Walk non-designers through user research findings so they feel empathy. (One tip: ask executives what problem they think needs solving, then confirm or challenge those assumptions with design research.) By calmly explaining the why behind decisions, designers build trust. As one writer suggests, “stay calm, show your process, invite feedback… align” rather than just arguing[16].
Advocate for Design Leadership. Push for design representation in strategy. The most successful companies “understood that design is a top-management issue”[6]. If possible, influence the formation of a Chief Design Officer role or design council, and get senior buy-in to objectives like “customer-centricity.” Even small moves — like involving a UX lead in product planning — can signal that design matters. The key is to move design discussions out of isolation: when designers speak in executive forums with business acumen, others start treating design as a core function, not just an afterthought[6][17].
Leverage Success Stories. Highlight case studies or industry benchmarks. For example, point out that Apple’s design-driven turnaround is well-documented, or share the McKinsey index findings that show design focus boosting shareholder returns[2]. Use such data to build a narrative that design produces tangible results. This reframes design investment as a wise business decision rather than a creative whim.
An ongoing cultural shift
Is the concern over design real? All signs point to yes. Surveys and interviews with executives reveal a persistent gap in understanding. In one design CEO interview, IDEO’s David Kelley admitted flatly that “design’s value in general is not perceived by most business people… We [designers] are paid a fraction of what they pay their lawyers and management consultants”[11]. Yet Kelley also acknowledged progress: design thinking has gained visibility, and thought leaders are “turning the tide” on this perception[11]. Indeed, over the last decade many companies have started C-level design initiatives. But McKinsey’s finding that 40% of companies still ignore users and 50% lack design metrics suggests plenty of room to improve[18].
It’s also worth noting that some of the critique comes from designers themselves: many admit they could do better at quantifying impact. As McKinsey put it, designers have “not always embraced design metrics or actively shown management how their designs tie to meeting business goals”[12]. This is a valid self-critique that points the way forward: the more design teams partner with analysts and marketers to speak in the language of ROI and risk, the harder it becomes for business to dismiss their role.
Conclusion
In sum, design is not a mystical frill — it’s a discipline of decision-making that can transform products and services. The evidence shows that companies succeed when design is valued and integrated: higher growth, stronger brands, and happier customers[1][2]. Yet too often design gets misunderstood as just aesthetic polish or an expensive experiment. This misunderstanding is real, rooted in communication gaps, cultural biases, and the challenge of measuring creativity. But it can be overcome. By speaking in the language of business outcomes, setting clear metrics, and embedding user perspective into strategy, designers can shift perceptions. Business professionals who recognize design’s true value — turning empathy into earnings — will find themselves outpacing those who don’t. After all, as one industry voice puts it: “Design isn’t decoration. It’s decision-making”[19]. By changing how we talk about and manage design, we can ensure it is no longer the overlooked pillar of product development, but the strategic advantage it truly is.
Sources
Focused on industry research and expert commentary on design’s ROI and perception:
[1] [13] [14] [15] Proving a return on design investment:
Proving a return on design investment
Return on design investment. Australian businesses can lift productivity and profits by investing in design that's tied…
[2] [3] [6] [7] [8] [12] [17] [18] The business value of design | McKinsey:
The business value of design
How do the best performers increase their revenues and shareholder returns at nearly twice the rate of their industry…
[4] [5] [16] [19] Why Design Is Often Misunderstood (And How to Respond Without Burning Out) | by Asnandyx | Medium:
Why Design Is Often Misunderstood (And How to Respond Without Burning Out)
It always starts with: “Can you make it pop?”
[9] [10] Why Designers Aren’t Understood — Smart Interface Design Patterns:
Why Designers Aren't Understood - Smart Interface Design Patterns
How do we conduct UX research when there is no or only limited access to users? Here are some workarounds to run UX…
smart-interface-design-patterns.com
[11] Kelley, David — Tom Peters:
Kelley, David - Tom Peters
Founder and CEO of IDEO, one of America's premier design firms.
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