Why Designers Struggle to Communicate Their Value to Leadership
For years, designers have fought for a seat at the table, arguing that design is strategically important for businesses. And yet, when budget cuts come, design teams are often among the first to go. Why?
As our Principal Designer Juha Kronqvist explains, it’s not because design isn’t valuable – it’s because we fail to communicate that value in business terms.
The Hard Numbers on Design’s Business Impact
Studies show that design is not just an aesthetic exercise—it’s a major business driver. McKinsey’s landmark Business Value of Design study found that companies with strong design practices grow revenues 32% faster and deliver 56% higher total shareholder returns compared to competitors.
The same study identified four key themes that set high-performing design organizations apart: measuring design’s business impact, embedding design into company culture, continuous iteration with users, and cross-functional collaboration.
Yet despite this, design teams often fail to secure their place when businesses tighten their budgets. Why?
The Gap Between Design and Business Thinking
One of the biggest challenges is that designers often lack business literacy. We don't always speak the language of finance, operations, or strategy. When organizations analyze cost-cutting, they ask: Where is the measurable impact? How does this contribute to the bottom line? What’s the ROI?
When design leaders can’t answer these questions clearly, their teams become vulnerable. In the 2022–2024 tech downturn, reports suggest some companies cut design headcount by 50%, with some eliminating their design teams entirely. This happened not because design was unnecessary, but because it wasn’t tied to measurable business outcomes. Even the most well-known design firms have faced setbacks due to weak business justification. In 2023, IDEO—a company synonymous with human-centered design—in a move that shocked the design world laid off 32% of its workforce.
Similarly, many startups that embraced design early on struggled when the economy shifted. Without concrete numbers demonstrating how design impacted conversion rates, customer retention, or revenue, design was among the first areas executives trimmed.
Success Stories: How Design Teams Prove Their Worth
On the other hand, companies that effectively integrate design with business strategy thrive. IBM’s design thinking transformation resulted in faster product cycles, achieving $9.2M in process savings over three years and a 301% ROI, reinforcing why it maintained design as a core function. Similarly, PepsiCo’s revenue grew 80% under Indra Nooyi’s leadership, during which she championed design as a key driver of innovation, branding, and product development—contributing to the company’s overall growth
In financial services, Capital One and Intuit have successfully embedded design into their corporate strategy, linking CX/UX improvements to metrics like Net Promoter Scores (NPS), conversion rates, and customer retention. By quantifying the impact of design, these companies have ensured that design remains central to decision-making.
How Designers Can Strengthen Their Business Case
Learn the KPIs – Every business has key performance indicators (KPIs) that drive decision-making. Understand them, align your projects to them, and report on them.
Measure Impact – Not every design decision has an immediate financial return, but we can build hypotheses. How much time does a new process save? How does a better experience reduce churn? What’s the impact on sales or efficiency?
Communicate in Business Terms – Instead of saying “We redesigned the interface”, say “We improved the user experience, reducing drop-offs by 20%, which translates to X in potential revenue”.
Follow Up – Many internal design teams don’t track their impact over time. What if a year later, you checked the numbers and showed how your work delivered results? That’s what leadership listens to.
The Opportunity Ahead
If we want to thrive as designers, we need to shift the narrative. Instead of demanding a seat at the table, let’s show up with data, strategy, and clear business alignment.
The opportunity is there. Are we ready to take it?
About the Author
Juha Kronqvist has spent his career bridging the gap between human-centered design and hard business results. Whether guiding Fortune 500 leaders on strategic design or simplifying complex services, he’s on a mission to prove that good design isn’t just beautiful—it’s profitable.
JUHA KRONQVIST
Principal Designer, Hellon