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entreVersity | Design Entrepreneurship – Lean Start-Up | Howard Frederick

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Friday, Aug 23, 2019
Return on investment

entreVersity writes: Design Thinkers often confront a skeptical management. So Forrester created a Total Economic Impact™ (TEI) model to empower design thinking practitioners with the tools and vernacular needed to quantify their efforts as well as to form a compelling business case for the practice. The synthesized results project a median per-project return on investment of 229%, with three-quarters of projects doubling their investment or more. Examined at an organizational level, a mature design thinking practice can achieve a return on investment ROI between 71% and 107%, based on a consistent series of inputs and outputs.

The model examines design thinking’s financial impact. While the return on investment for each organization will differ depending upon the efficiency of the practice, the project, and the specific use case, the model found that mature design thinking practices can generate substantial measurable returns and a broad range of auxiliary benefits.

The TEI model analyzes 25 benefit and cost drivers to analyze return on investment in design thinking that range from organizational costs such as leadership support, facilitators, designers, training, communications, and even professional services to project-specific costs or capital investments. The model also analyzed benefits that come from both changing the way that teams work and their ability to achieve better results.

Forrester. “Future Of Organizations: Rethinking Organizational Design.”

Research cited:

How can Design Thinking professionals justify their investment on the bottom line?

View source article www.forbes.com

(Return On Investment by Nick Youngson CC BY-SA 3.0 Alpha Stock Images http://www.thebluediamondgallery.com/handwriting/r/return-on-investment.html)

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