At Issue Vol4 No2

7/28/2019 At Issue Vol4 No2

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Volume 4, No.2The Journal of Business and DesignPublisherCorporate Design FoundationSponsored by Potlatch CorporationEditorDelphine HirasunaDesignPentagramKit Hinrichs, Design DirectorAmy Chan, DesignerContributing WritersDelphine HirasunaNoreen O'LearyPeter LawrenceCover IllustrationHugh KretschmerMajor Illustration and PhotographyMark UlriksenSteve UnderwoodEditorial Advisory BoardPeter LawrenceCorporate Design FoundationSara BeckmanHaas School of BusinessUniversity of California at BerkeleyAgnes BourneAgnes Bourne Inc.Kit HinrichsPentagramDelphine HirasunaHirasuna EditorialPeter LaundyDoblin GroupJames PatellGraduate School of BusinessStanford UniversityChristopher PullmanWGBH Educational FoundationFor more informationCorporate Design Foundation20 Park Plaza, Suite 321Boston, MA 02116Telephone: 617-350-7097Fax: 617-45 1-635 5E-mail: [email protected] Wide Web site:h t tp : / /www.cd f .o rg
mailto:[email protected]://www.cdf.org/http://www.cdf.org/mailto:[email protected]


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ome of t h e m o s t e x c i t i n g d e s i g n t o d a yi s e m e r g i n g f ro m f a m i l i a r b u tunexpec ted p l aces . In th i s ed i t i onof @Issue, C E O S i r J o h n E g a n

transforming airports intolike to linger awhile.

' business s t r a t e g y ,products and a reem-d e s i g n h a v e restored

luster. Donor recognit ionu s u a l l y t h o u g h t o f a s

a re now be ing tu rned in to

tel ls us how BAA isplaces where you'dA t I B M , a n e wn e w c o n c e p tp h a s i s o n ABigwalls that arestaid and boringa r c h i t e c t u r a l a s s e t sb y d e s i g n e r s w i l l in g to go b e y o n d t h e o b v i o u s .Our shape quiz points out that t radit ion is often a

shopping a id when i t comes ^L t o p r o d u c t- *m n g . A n d fo r t h o s e ^ ^ J w h o t h i n k

3 : 1 ren't m a d e ^ ^ ^ P as wel l as~^m they used to b e , Restora t ion Hardware offers


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B A A 's S i r J o h n E g a n o n D e s i g nAs chief execut ive of BAA, S i r John Egan has changed theglobal perce ption of airport environm ents by ado pting an "ex perie n c e management" m e n t a l i t y t h a t r e s p o n d s t o c o n s u m e rn e e d s . In the process , he has bui l t BAA into the world 's mostsuccessful a i rpor t company. Here he i s in terviewed by PeterLawrence , cha i rman of Corpora te Des ign Foundat ion .

P articularly for our American readers,please describe BAA's business scope.I n t h e U K w e o w n s e v e n a i r p o r t s ,i n c l u d i n g H e a t h r o w , G a t w i c k a n dS t a n s t e d , a n d o v e r s e a s w e o w n a s m a n yairp or ts or, a t lea s t , have s ignif ic ant long-t e r m m a n a g e m e n t c o n t r a c t s r u n n i n ga i r p o r t s in N a p l e s , I t a l y ; M e l b o u r n e ,A us t r a l i a ; and the A i r Mall i n P i t t s b u r g h ,U S A . We ' r e nego t i a t ing w i th a number o fgov ernm en ts for the pu rc ha s e o f o the r a i r po r t s tha t have a mind to p r iva t i ze . O ur airp o r t - r e l a t e d b u s i n e s s e s i n c l u d e b o t h p r o p e r t y d e v e l o p m e n t a n d r e t a i l , w i t h a n n u a ltu rnover o f 1 .25 b i l l ion more than ha l fo f w h i c h c o m e s fr om r e t a i l .Why design?Becaus e i t i s abs o lu te ly a t the cen te r o fach iev ing ou r s t r a t eg ic in ten t o f be ing the bes t in theb u s i n e s s . D e s i g n h e l p s t o s h a p e e x p e r i e n c e , a n d t h equa l i ty o f exper i ence tha t peop le have o f any companyi s the mos t in f luenc ing f ac to r in s hap ing the i r a t t i tudetoward i t . I t af fects loyal ty , repeat purchase and the waypeople ta lk about the company to col leagues and f r iends .What are some operatingobjectives addressed by design?A s an a i rpo r t ope ra to r , w e mus t be capab le o f mov ingmi l l ions o f peo p le e f f i c ien t ly , b u t w e mus t do m ore

BAA's chief executive since1 9 9 0 , Sir John Egan isresponsible for the world'sleading international airportgroup, owning and operatingseven airports in the UKand as many airports in othercountries. Prior to joiningBAA, Sir John was chairmanand CEO of Jaguar pic.Currently, he is also presidentof the London Tourist Board,chairman of the CentralLondon Partnership, vicechairman of London First andchairman of the ConstructionTask Force in the UK.

t h a n j u s t m o v e p e o p l e . W e m u s t b e e x p e r i e n c e m a n a g e r s . I n o t h e r w o r d s , w e m u s tc r e a t e t h e m o s t a p p r o p r i a t e e x p e r i e n c e f o re v e r y o n e u s i n g o u r a i r p o r t . A t t h e s a m et i m e , w e m u s t e n s u r e t h a t o u r f a c i l i t i e sa r e d e s i g n e d s o t h e y a r e e a s y to b u i l d ,ef f ic ient to run and af forda ble .For BAA, does design extendbeyond architecture and d ecor?D e s ign o f an a i rpo r t i s abo u t more tha np a i n t i n g a n d d e c o r a t i n g . It i s m u c h m o r et h a n v i s u a l , a l t h o u g h v i s u a l m a t t e r s m o r ethan you migh t f i r s t t h ink . Crea t ing ther igh t cus tom er expe r i en ce i s a func t ion o fthe f ac i l i ty ' s s i ze and s hape , i t s ambiance ,t h e q u a l i t y of l i g h t , v i s u a l c h a r a c t e r i s t i c s ,t h e b e h a v i o r o f t h e staff, h o w w e c o m m u n i c a t e w i t h p e o p l e - t h e m e s s a g e , t h e

m e d i u m , a n d p e r h a p s m o s t i m p o r t a n t , t h e t o n e o fv o i c e . D e s i g n i s a p r i m a r y m e a n s b y w h i c h w e g i v ec u s t o m e r s w h a t t h e y w a n t .What do BAA custom ers want?BA A cus to me rs w an t qua l i ty f ac i l i ti e s tha t p rov idet h e m w i t h a c o n t i n u i t y o f q u a l i t y e x p e r i e n c e a s t h e yj o u r n e y t h r o u g h o u r a i r p o r t s . I n a n i n d u s t r y l i k e o u r stha t has a p ro jec t cu l tu r e , it i s too eas y to fo rge t th a tany one p ro jec t i s on ly one e lemen t o f a cus tomer ' sexp er i e nce o f tha t compan y . P ro jec t s m us t be s ee n in


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@ I S S U E :

the context of the cus tomer . What is i t l ike for them topas s f rom one s pace , o r exper i ence , to ano the r? I s theexper ience they have in one s pace app rop r ia t e to tha tpo in t in the i r jou rne y? D oe s i t p rov ide the n ece s s a r ycont inui ty to the next s tep on their journey?What elemen ts go intoa customer's experience in an airport?At an a i rpor t , there are a var ie ty of s teps that you got h r o u g h f rom where you leave your motorcar , or getof f the t ra in , to when you board the a i rp lane. I t i s cr i t i ca l tha t cus tomers have the exper i ence mos t app rop r i a te to wh ere they are on their journey . Wh ile w ai t ingfor a f l ight , re ta i l shops and enter ta inment that exci teand s u rp r i s e may be w e lcome . Bu t a t the baggage d ropor check- in , that ' s the las t th ing you want . There , youprobably want a sense of order and calm and a feel ingtha t s omeone i s in con t ro l . D ef in ing the exper i encetha t cus tomers w an t becomes a c r i t e r ion by w h ich youcan judge the des ign w ork you commis s ion .You have stated that you learnedmore from Disney World than from othertransport fac ilities. Could you explain.The bas ic r equ i r emen t o f ou r bus ines s i s to be peop lemovers , but our v is ion is to be a company of exper t"experience managers ." In these areas , Disney is one ofthe bes t . Af ter a l l , they manage mil l ions of people everyyear - as we do - but in such a way that minimizes hassle. This a s pec t o f exper i ence managemen t i s r e l evan tto u s . We have had many d i s cus s ions w i th D is ney tound er s t a nd how they go abou t exper i ence ma nage me n t .

W" i t h i n manycompanies,design investmentis the largest single sum ofmoney that their boardsknow the least about."

Is BAA using design as a market differentiator?Design is a s t ra tegic resource, and so mus t be organ ized and man aged to p rov ide the c ruc ia l l ink be tw eenb u s i n e s s s t r a t e g y a n d p r o j e c t a c t i v i t y . T h o u g h t f u ldes ign dec i s ions s ay c lea r ly w here a company w an t s tobe in i t s marke tp lace . Tha t s t r a t eg ic in ten t may beconcerned w i th innova t ion as a t S ony o r P h i l ip s , o rvalue for money as a t Marks & Spencer or Ford Motor ,o r i m p e c c a b l e s e r v i c e a s a t o u r v e r y o w n H e a t h r o wE x p r e s s [ B AA 's n e w h i g h - s p e e d t r a i n t h a t r u n sb e t w e e n L o n d o n a n d H e a t h r o w i n 1 5 m i n u t e s ] . A llcompan ies ope ra te in h igh ly compe t i t ive env i ronmen tswhere their products or serv ices are d i f ferent ia ted onlyby des ign. As Rodney F i tch , one of the four outs idea d v i s o r s o n o u r d e s i g n b o a r d , o n c e r e m a r k e d , " O n l yone company can be the cheapes t , t he o the r s have tou s e d e s i g n . "In most companies is designinvestment managed from the top down?With in many compan ies , des ign inves tmen t i s thelarges t s ingle sum of money that their boards know theleas t abou t . D es p i t e i t s impor tance , r e s pons ib i l i ty fo r i ti s of ten d ive s ted to jun ior peo ple acro ss d iverse p ar tso f the bus in es s . Cons equen t ly , s pend on des ign r e s id esin coun t l e s s budge t s and s imp ly moun ts up that ' s i fyou can ever f ind it all! Lots of people in lots of positionsa re s pend ing money on des ign w i th no s t r a t eg ic d i r ec t ion g iven by the company as to what i t wants f rom theeffor t . As a resul t , des ign is seen as something opt ionaland of tact ical use only . Unfor tunate ly , I am convincedthat many people involved in commiss ioning des ign areunaw are o f the s ign i f i cance o f the i r r e s pons ib i l i t i e s .How can senior managers takebetter advantage of design opportunities?Firs t , they have to recognize that there ' s a c lear connec t ion be tw een des ign ac t iv i ty and how the companyi s man i f es t to each o f i t s aud iences o r s t akeho lde rg roups . They have to r ea l i ze tha t eve ry s ing le pounds pen t on des ign s hou ld he lp the company r ea l i ze i t sv is ion or s t ra tegic in tent . I t i s therefore cr i t ica l thatdes ign be l ed from the ce n te r o f the bus in es s and ma naged in a coordinated and coherent way. This does notmean tha t on ly one pe r s on s hou ld have r e s pons ib i l i tyfo r des ign s pend o r des ign dec i s ions . I t does mean ,however , that one person should be respons ib le forens ur in g that des ign inves t me nt is work ing ef fectively


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I S S U ED fining the experiencethat customers wantbecomes a c riterion by whichyou can judge thedesign work youcommission.non the strategic intent of the business. At BAA, we notonly have design managers in al l our key businesses,we have a Group Design Director whose job i t is tomaximize return on our investment, part icularly withrespect to design focus and appropriate quality. I alsoget d i rec t ly involved in the process by cha i r ing adesign board that meets quarterly to review all projects.How does a company determinethe size and form of its design investment?First, it 's important to clarify your vision. Understandthe distinction between vision and mission. BAA's mission is to be the world 's most successful airport company. Our vision, however, is to at tain and maintainthe high ground implici t in that mission. That meansalways giving the customer a) what he wants and b)what he doesn' t real ize he wants, but what he f indswill be a great benefit.

Second, understand "the context for design" - wheredesign touches the company. Until we have a clear context for design, we can't analyze individual design projects or manage and direct them in a way that will helpus achieve our vision. From this, a budget can be drawnup and organizat ional responsibi l i t ies agreed upon.At what point should the CEO andsenior management play the strongest role?Designing involves a complex process of decisioni te ra t ions , which must take p lace dur ing the pro jec t ' sdevelopment s tages whi le the cos t of the change i sminimal . The drawing board i s the p lace to makechange and experiment . The longer you spend prepar

ing for production, the less likely that costs will get outof hand on the factory floor or building site. The ruleof thumb is to keep your options open as long as youcan and while it costs little to do so. After that, closeeverything down to the option that you are going to runwith. The design teams should ensure that projectsare fully designed before they leave their office. Oncethey do leave, the CEO should stay at arm's length.Keeping management atarm's length is easier said than done.Yes, for this to happen, senior managers must be educated in how the design process works and when it isappropriate to make their input and changes. BAA'sdesign board meets quarter ly to review al l majorprojects . We are never al lowed to forget when i t ispossible to make changes and when we cannot .If CEOs or managers don't understand the designprocess, how do they learn to ask the right questions?The designer's responsibility is to make it clear howthe design process works. Designers need to help thecl ient f ix the brief and understand what decisionswil l be needed and when.With seven airports in the UK and as many overseas, doyou attempt to standardize design in all your locations?In managing cus tomer exper ience , we t ry to under s tand what ought to be common among our a i rpor t sand what can be unique. For instance, whenever thereis an int imate customer/company interface, say in theprovision of information through a signage system,there is value in a high level of commonality. But forthe shell of a building, standardization from its passengers' perspective is not so important. However, it certainly is if you are trying to reduce costs of design andcons t ruc t ion . Wherever poss ib le , we come up wi thsolutions that we can use time and again. The issue ofstandardization is important to us in terms of customerexperience and procurement strategem.In the airport business is theresuch a thing as a "global" customer?Yes. The expectations of people who use our airportsand travel on airlines are rising because, as individuals,they are becoming global by nature. Our products andservices must respond. We recognize that unless thequali ty of experience people have of us is commensurate with our strategic objective of being an industryleader, our reputation will suffer and so will our profits.


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T h e W r i t i n g o n t h e W a l lAs pu bl i c funding sh r ink s and nonprofi tinst i tut ions turn to private donors for f inanc ia l suppor t , donor recogni t ion wal l s havebecome a f ami l i a r s i gh t i n hosp i t a l s , un i v e r s i t i e s , c h u r c h e s , e l d e r - c a r e f a c i l i t i e s ,l i b ra r i e s , museums , symphony ha l l s , comm u n i t y c e n t e r s a n d e v e n p r e - s c h o o l s .Unfor tuna te ly , many donor wal l s g ive thei m p r e s s i o n of h a v i n g b e e n d e s i g n e d b yfund- ra i s i ng commi t t ees de t e rmined t o cu tcosts. Showing l i t t le regard for the archi tecture or interior decor, such wal ls look l ike

an obl igatory af ter thou ght ,a n a e s t h e t i c a s s a u l t o nthe very envi ronment tha t

apt metaphor for recogniz- h o n o r s c o n t r i b u t e d s o g e n -ing donors to this Christian e rous ly t o enhance . Tha t

Project: Robert TeglerCollege Student Centre,Edmonton, A lbertaDesign: Studio 3 Graphics,EdmontonThe Tree of Life provided an

college. Donor levels arerepresented by the "fourseasons" of foliage, made do es n ' t ha v e tO b e t h efrom powder-coated enam-eled steel, with acid-etched c a g e > W n e n treate(J a g a nnames. in tegral par t of the bui ld

ing design, donor wal l sbecome works o f a r t t ha te n t i c e p a s se r sb y t o p a u seand apprec i a t e t he peop l ewho made i t a l l possible .

Project: National ScienceCenter, Augusta, GADesign: Lorenc Design,Atlanta, GAAs part of a signage programfor the renovation of theNational Science Center,Lorenc Design was asked todevelop a donor wall thatwould include about 200names. The design firmcreated a "solar system" thatwould double as artworkfor the ticket area. Made ofground aluminum that isspray-painted a gradatedblue-green, the solar systemfeatures black "planets"illuminated with fiber opticl ights. The lights changecolor to suggest movement.Each planet states the donation category, with donornames appearing betweenthe rings like stellar objectsfloating in space.


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Project: New York UniversityMedical Center, New York, NYDesign: Poulin + Morris, New YorkGill Sans was the typeface chosen byPoulin + Morris for the NYU MedicalCenter signage and donor wall program.Primary donors were honored withgold-leaf lettering on horizontal glasspanels in the main lobby. The lobby'sglass wall overlooking an interiorcourtyard (shown below) features asecond tier of donor names.

RSHALL G ACHRIS M A R D E N PAT AND THE M A G L I O C C O F A M I L

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Project: Mary Baker Russell Music Center,Pacific Lutheran U niversity, Tacoma, WADesign:Mayer/Reed, Portland, ORAs part of an overall signage program forthe Music Center, Mayer/Reed created donordisplays for 600 names using a music staffframework supported by bass clef-shapedbrackets. Fabricated from polished aluminumand etched glass, the design was intendedto impart a sense of quiet restraint andpermanence. Directional signs and floordirectories also feature a musical theme.


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Project: Art Center College ofDesign, Pasadena , CADesign: Dennis Scott Juett& Associates, PasadenaAssigned to design a hypotheticaldonor wall for a 7th-semester project, then-student Dennis Scott Juettsubmitted a pencil theme ideabecause "it represented the fundamental tool of every student at ArtCenter." The college picked Juett'sdesign and asked him to overseefabrication and installation as an8th-semester project. Each pencilbody is machined out of V2'1 hexagonal aluminum and anodized blackwith the donor name etched on thesurface. Matching color-coded endcap and wax-pigment lead signifythe donation category. A replica ofthe pencil was given to each donorin a custom wooden box.

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Project: Strathcona CareCentre, Edm onton, AlbertaDesign: Studio 3 Graphics,EdmontonThe Strathcona Care Centre forthe elderly was built on a formerwheat field - hence the ideaof creating a fanciful "whea tgarden" of donor names. Visibleto passersby on the street aswell as to residents inside, thedonor garden features 800wheat stalks, made of weather-resistant steel and silkscreenedwith 3,200 names on the"grains." Animated withoutbeing mechanical, the wheatstalks are angled so the grainstremble in the wind. Color, stalkheight and number of nameson each stalk help to denotelevels of contribution. Top-leveldonors received a glass wheatsheaf art object as a memento.


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I S S U E :

Project:San Francisco Food BankDesign: Skidmore, Owings &Merrill, San Francisco, CABuilt largely through donatedin-kind services, the FoodBank was keenly sensitive tominimizing costs for a donorwall. The can concept waskind of an "ah ha!" moment,says Lonny Israel of Skidmore,Owings & Merrill. "When theFood Bank said this wouldbe a warehouse full of cans,the flashbulb went off."Donated soup-size tin canswere treated with acrylicand sandblasted on top toimprove the legibility of thetype. The first vertical row isin a different color to identifycategory of donation. Althoughthe client didn't think it wouldbe a living wall, Israel saysthe design left blank cans forthe addition of more nameslater on.

Ten Donor Wall TipsPlan early. The t ime to th ink about a donor wa l l i sn ' t when you ' rep lanning the ce lebra t ion par ty . Inc lude wal l cos t s in your to ta lfundra i s ing e f for t and be sure to in tegra te the wa l l des ign in to youra r c h i t e c t u r a l a nd s i gna ge p rog ra m.Don't make promises you can't keep. In the throes of ra i s ing funds ,different promises are often made to different peoplesome imposs ib leto keep . Begin by se t t ing guide l ines on how gi f t s wi l l be recognized .Head off anomalies, but design for variables. H o s p i t a l s , c h u r c h e sand care faci l i t ies of ten receive " in loving memory of" gi f ts . To cont ro l the va r i ab i l i ty of these l i s t ings , provide c r i t e r i a for how suchgi f t s can be s t a t ed . At the same t ime , p lan typography for thel onge s t a nd s ho r t e s t na mi ng s c e na r i o s .Decide between a single campaign or living wall. D e s i gne r s ne e d t oknow t he ma x i mum numbe r o f donor na me s t ha t w i l l l i ke l y a ppe a rbefore beginning concept deve lopment . I f the wa l l i s for a s inglec a p i t a l c a m pa i g n , s e t a f irm de a d l i ne for i nc l u s i on , s o na m e s c a nbe a lphabe t i zed and p laced in to dona t ion ca tegor ies . Des ign l iv ingwal l s to remain aes the t i ca l ly p leas ing a t any s t age and be sure toplace them in locat ions that wi l l a l low for growth.Allocate a percentage of the budget. Set as ide a pe rcentage of thetota l bui ld ing bud get for the donor wal l cons t ruct ion. Avoid the a ppe arance of overspending , bu t keep in mind tha t a t t rac t ive wa l l s makedonors fee l apprec ia ted and encourage o thers to g ive in the fu ture .Complement the architecture. Even when a donor wa l l i s t rea ted ass tand-a lone a r t , des igners need to work c lose ly wi th the a rch i t ec t ,l i gh t i ng e ng i ne e r a nd s i gna ge de s i gne r s . T he f i n i s he d p i e c e s hou l dfe el i n t e g ra l t o t he e nv i ronm e n t a nd c om pl e m e n t t he p ropor t i ons ,m ate r i a l s , f in i shes an d co lors of the s pa ce .Maintain type consistency. Don' t t ry to l i s t names in type s i zese qu i va l e n t t o t he s i z e o f t he dona t i ons . C o l o r - c od i ng i s a c ommonw a y o f p ro t e c t i ng t ypog ra ph i c c ons i s t e n c y .Consider future fabrication. Make sure tha t mate r i a l s and c ra f t s ma ns h i p a r e a va i l a b l e a nd c a n be m a t c he d f i ve, 10 , 15 ye a r s h e n c e .Consider daily upkeep. T a ke w e a t h e r r e s i s t a n c e , v a n d a l i s m a n dma i n t e na nc e i n t o a c c oun t be fo re a pp rov i ng t he de s i gn a nd l oc a t i on .Proofread, then proofread again. Ima g i ne e t c h i ng 1000 na me s on as ingle shee t of g las s and f inding a typo tha t wi l l remain in to pe rpetu i ty . Check wi th donors about unusua l name spe l l ings , then as s ignsevera l people to proof read a t every s t age of the process .


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W h a t ' s I n s i d e ?Whether form follows function or tradition dictates form, shapeis a common identifier of product category - so much so that wecan picture a cereal box without recalling a brand. That's not tosay that consumers don't welcome shape innovations that offergreater convenience, safety and ease of handling. But changesimply to be different - packaging a soft drink in a "w ine " bottle,J L spring water

gasolinechampagnelaundry detergentwinesoft drink (2-liter)bleachmilkliquid cleanserketchuppancake syrupdish detergentice creambeer (bottle)soft drink (can)eggshoneyhand lotionmustardtoothpasteyogurthot sauceaspirinperfumebaby foodinknail polishfilm

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B ig B lu e R e i n v e n t s I t s e l fAf te r a ne a r -d i sa s t r ou s a t t em pt to pu r s u e a d ive r s i f i edopera t ing s t ra tegy in the '80s and ea r ly '90s , B ig Blue hascome back s t rong by pos i t ion ing i t se l f a s the p reeminen tprovider of in tegra ted network technology solut ions . Designhas been cr i t ica l for communicat ing the company's revi tali zed image and un i fy ing i t s p roduc ts , t echnolog ies ands e r v i c e s u n d e r t h e I B M b r a n d .

Lee D. GreenDirector, Corporate Identity & DesignA 20-year veteran of IBM, Lee Green is responsiblefor IBM's worldwide identity programs and graphic,Internet and product design.

Bob E. Dies General Manager, Network and Personal Computers

Bob Dies, who joined IBM in 1969, spearheads thetechnology, strategy and development of IBM's networkand personal computers.

T hink of the des ign g iants of the 20th century , andthe re i s o f t en a l ink to IBM . P au l Rand c r ea tedI B M ' s e n d u r i n g b l u e - s t r i p e d l o g o . C h a r l e s a n dR ay Eames made the company ' s f i lms , exh ib i t ions andm u s e u m i n s t a l l a t i o n s . A r c h i t e c t s l i k e M i e s v a n d e rR o h e , M a r c e l B r e u e r a n d E r i c S a a r i n e n p r o v i d e d t h ev i s ion fo r i t s bu i ld ings a round the w or ld . A nd E l io tN o y e s s h e p h e r d e d e a r l y I B M p r o d u c t d e s i g n .

H i s t o r i c a l l y , I B M c o n s i d e r e d c o r p o r a t e i m a g es o v i t a l t o i n s p i r i n g p u b l i c c o n f i d e n c e t h a t i t e v e nen fo rced s t r i c t employee g rooming and d res s codes .F or dec ad es , the image o f the IBM s a les m an , s ha rp lyun i fo rmed in s u i t and t i e , s ymbo l ized p ro fes s iona l i s mand co rpo ra te p r ide .

F o u n d e d i n 1 8 8 8 , I B Mdef ined w orkp lace t echno logyin the 20 th cen tu ry , f rom thef i r s t l a rge vacuum- tube compu te r in 1952 th rough s ucces s ive advances l ead ing to thef ir st pe r s ona l com pu te r in 197 1 .The company s tood fo r cu t t ing -e d g e i n n o v a t i o n , u n e q u a l l e d

I B M C O R P O R A TYear Founded: 1 8 8 8Business Line: Information technology softwarehardware and servicesPrincipal Officer: Louis V. Gerstner, Jr.Chairman and CEORevenues: $7 8. 5 bi l l ion, f iscal 1 99 7Employees: 270 , 000 wor ldw ideIn-house Industrial Designers: 25 wor ldwide

s e r v i c e a n d s m a r t m a n a g e m e n t . S m a l l w o n d e r t h a ti t be ca m e the da r l in g of Wal l S t r ee t , a f f ec t iona te lyk n o w n a s " B i g B l u e . "

S o i t w as a l l t he more s tunn ing w hen IBM s tumbledin the 1 980 s , appea r in g in dang er of be ing topp ledby hungry young compan ies n ipp ing a t i t s hee l s . M orea g i l e a n d f l e x i b l e i n m a r k e t p l a c e r e s p o n s e , c l o n ema nufac tu re r s cu t in roads in to IBM ' s ma rke t s , ma k ingi t l o o k l i k e a l u m b e r i n g g i a n t . A d i v e r s i f i c a t i o ns t r a t egy tha t l e t IBM d iv i s ions opera te a s au tonomousun i t s r e s u l t ed in a jum ble o f p rodu c t s and b ran d inga p p r o a c h e s . I B M ' s i d e n t i t y b e c a m e m u d d l e d . D e s i g nimpera t ives w ere lo s t in bu reaucra t i c ma la i s e .

Then , in the da rkes t hou r ,t h e s l e e k h a n d s o m e T h i n k P a da p p e a r e d . I ts l a u n c h i n 1 9 9 3was the only hopeful s ign ina y e a r w h e r e I B M p o s t e d aloss of $8 b i l l ion , cut i t s d iv idends fo r the f i r s t t ime eve rand s aw the r e s igna t ion o fc h i e f e x e c u t i v e J o h n A k e r s .The new CEO Lou is G er s tne r ,

C T . S H E E

17


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brought i n f rom R JR Na bi sc o , move d qu i c k l y t o bu i l don IB M's s t r e ng t hs - i t s s i z e a nd bre a d t h , whi c h , hea rgue d , woul d a l l ow t he c ompa ny t o o f fe r c ompl e t es o l u t i o n s r a t h e r t h a n i n d i v i d u a l h a r d w a r e a n d s o f t w a r e p r o d u c t s .

es ign 's been a big par t of the reposi t ioning of theI IB M bra nd , " sa ys Le e Gre e n , who c o i nc i de n t a l l ybe c a me d i re c t or o f c orpora t e i de n t i t y a nd de s i gn

t h e s a m e d a y G e r s t n e r j o i n e d t h e c o m p a n y . " L o uGe rs t ne r ' s a ppre c i a t i on fo r a s t rong bra nd va l ue a ndwhat des ign cont r ibutes to tha t i s qui te c lear . He 's verymuc h e l e va t e d t he ro l e we c a n p l a y a t IB M." Gre e n ' s

pre de c e ssor Tom Ha rdy ha d

DIBM's "Concept Cars"Borrowing a term from the autoindustry, IBM explores new forms andapplications of emerging networktechnologies by creating "conceptcar" designs. Although many of theconcepts will never reach the marketplace, they influence the directionof products in development. Personal Banking TerminalMeant to be supplied free fromthe bank to major customers,

this concept network terminalwould let users do their bankinfrom their own desktop.

ThinkPad 60 0Designed by con

sultant RichardSapper, the firstThinkPad presented a thin

black silhouetteand a red track-

point. More recentmodels are even

thinner, with designsfeaturing a distinctivewedge-shaped basethat makes the product easier to pick up.This fall IBM unveiledits new ThinkPad

i Series, loadedwith user-friendly

features and priced forthe consumer market.

Aptiva Desktop PCDesigned to look attractive fromany angle, IBM's new Aptiva desktoppresents a dynamic profile.

e a r l i e r i n s t i g a t e d d e s i g nrevitalization efforts, but washa mpe re d by t he a u t onomyof e a c h op e ra t i ng d i v i s i on .W i t h G e r s t n e r ' s e n d o r s e me nt , Gre e n ha d a s t rongma nda t e t o move forwa rd .

"If IBM was going tosurvive and thr ive , we knewi t would have to ac t andlook as one company," saysG r e e n . T h a t m e a n t t o t a la n a l y s i s of I B M ' s b r a n di m a g e a c r o s s t h e b o a r d .Wi th marke t research show

i ng t ha t a s i gn i fi c a n t num be r o f pe op l e who b uy t heThinkPad choose i t for i t s des ign, i t was c lear tha t oneo f t h e c o m p a n y ' s m o s t p e r v a s i v e i n d i c a t o r s o f c o r p o r a t e i d e n t i t y w a s t h e l o o k of i t s p r o d u c t s . G r e e nre v i e w e d a l l o f IB M 's d i sp a ra t e o f fe ri ngs a s we l la s t h o s e f ro m c o m p e t i t o r s . E t h n o g r a p h i c r e s e a r c hre ve a l e d i n t e re s t i ng fe e dba c k . Empl oye e s a t ba nki nga nd i nsura nc e c ompa ni e s , fo r i ns t a nc e , c ompl a i ne dtha t the i r cus tomers ' view of IBM was the una t t rac t iveback of a computer tha t of ten impeded eye contac t .Green s taged "A Week in the Li fe of a PCso IB M de s i gne rs c ou l d obse rve t hec o m p l e t e m a n u f a c t u r i n g a n d d e l i v e r y p r o c e s s , s t a r t i n g o n t h e a s s e m b l yl i n e , a n d c o m m i s s i o n e d a n o u t s i d e b e n c h m a r kstudy to ga in ins ight into the programs of compet i tors .

Ove r t he pa s t t h re e ye a rs , IB M de s i gne rs ha ve use dtha t input to coordina te a more integra ted look across

Whimsical RebusPaul Rand's famous "eyebe e m" rebus, designed

about 15 years ago,was resurrected as thedefault screensaver for

the new Aptiva.


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lightweight, portable CD-drive has detachable stereoand supports multi-

discs.

Portable Entertainment CenterIBM's design lab in Japan createdthis digital video center withswing-out speakers and two redantennae-like microphones forimpromptu karaoke sessions.

Personal e-Newspaper777/s network device lets usersdownload customized news,email and other content ontolightweight tablets from thisred docking station.

Network Computer77?/s f lat pan el prototype is afull-function desktop system thatis networked to access applications and processing power.

ScrollPoint MouseEliminating the need to locate your cursorin a fixed place, the ScrollPoint Mouseallows multidirectional scrolling.


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New Corporate HeadquartersDesigned by Swanke HaydenConnell Architects and KohnPedersen Fox Associates, IBM'snew 280,000-square-foot corporate headquarters in Armonk,Ne w York, features an openoffice design and extensivecustomer interaction. Discreetlytucked into a forested valley,the S-shaped building with itsstainless steel, reflective glassand polished granite exteriorcurves around trees and rocks in


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p r o d u c t s , p a c k a g i n g a n d o n - s c r e e n t u t o r i a l s . I B M ' sa r r ay of bu lky nond es c r ip t be ige boxes , enm es h ed ina s pag he t t i - l ike tw is t of w i r e s , gave w ay to sexy b lackm a c h i n e s o f fe r in g n e w e a s e - o f - u s e i n t e r f a c e s a n du l t r a - t h i n m o n i t o r s . F i e r y r e d a n d l i m e - g r e e n a c c e n t sg lo w a g a i n s t th e m a c h i n e s ' b l a c k s u r f a c e s .

I B M ' s n e w A p t i v a S E 7 c o d e n a m e d C o b r a h a sb e e n d e s c r i b e d i n a n I n t e r n e t r e v i e w a s h a v i n g " as l e e k , b l a c k s t y l e f r o m t h e D a r t h V a d e r s c h o o l o fdes ign." From a compet i t ive point of v iew, the reviewernoted , " I t looks l ike i t would beat up the cuddly iMacbefore school and take i tsl u n c h m o n e y . "

Bob D ies , IBM ' s genera lm a n a g e r of n e t w o r k a n dp e r s o n a l c o m p u t e r s , g o e sone s t ep fu r the r , des c r ib i n g t h e c o m p a n y ' s n e wd e s i g n s e n s i b i l i t y a s o n etha t emula tes the look o fthe S teal th bomber . Futuris t ic a l lus ions to bat t le areapprop r ia t e . IBM ' s A p t ival i n e i s n o w N o . 3 i n t h ew or ldw ide P C marke t , l ag g i n g b e h i n d u p s t a r t s D e l l

NetfinityIBM's newest PC server, calledNetfinity, is designed to be freestanding or form modular components that can be configured into arack solution. Previously, there wasno conformity among IBM serverunits. Now the minimalist blackmachines with bright color accentsare recognizable as IBM productseven without seeing the logo.

a n d C o m p a q . " W e u s e d t o a p p r o a c h o u r p r o d u c tdes ign as e i ther the way to invent a product or modifyi t , " s a y s D i e s . " W e n e v e r p a i d m u c h a t t e n t i o n t odes ign , and in h inds igh t , t ha t w as a b ig mis take . " A f te rh e a d i n g u p a c o u p l e of I B M d i v i s i o n s , i n c l u d i n gA S \ 4 0 0 w o r l d w i d e , w h e r e r e c e n t p r o d u c t r e d e s i g nm a d e a n i m m e d i a t e i m p a c t , D i e s e x c l a i m s , " W e w o nsome awards , got lo ts of press , lo ts of consumer react ion . I t was amazing and i t d idn ' t cos t us any more."

While the overal l look of such machines is vas t lyimproved, funct ional i ty was a lso a major push for IBMdes igner s . "The bes t w ay to d i s t ingu i s h your s e l f in ac o m m o d i t y m a r k e t i s t o m a k e t h i n g s l i k e i n t e r f a c e ,

c o n t r o l s , b u t t o n s a n d k e y b o a r d s m o r e i n t u i t i v e t o t h e u s e r , " G r e e n s a y s . " I t ' s n o tj u s t a b o u t c o s m e t i c e n h a n c e m e n t s , i t ' sa l s o a b o u t i m p r o v i n g t h e t o t a l u s e r

e x p e r i e n c e . "Tha t a t t i tude has been ex tended to thos e

w ho in s ta l l and s e rv ice the mach ines . N ew


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fe a t ure s i nc l ude re p l a c i ng bo l t s wi t h s i mpl e - t o - re movetabs a l lowing easy access to c i rcui t s . Previously bol tedme di a ba ys a re now de s i gne d t o swi ng up .L ongt i me IB M de s i gn c onsu l t a n t R i c ha rd Sa ppe r -t h e M i l a n - b a s e d f a t h e r o f t h e T h i n k P a d - i sw o r k i n g w it h t h e c o m p a n y ' s i n - h o u s e d e s i g ng r o u p o n r e v a m p i n g I B M ' s p r o d u c t s .

I B M h a s a l s o h o o k e d u p w i t h s c h o o l s l i k e M I Ta nd M i l a n Po l y t e c hn i c to de ve l o p ne w i n t e r fa c e s a ndproduc t a pp l i c a t i ons . Gre e n , bor rowi ng a t e rm f romt he a u t omot i ve i ndus t ry , c a l l s t h i s e xpe r i me nt a l workh is "concept c a rs . " The y ma y we l l be c ome t he ve h i c l e s to d r i ve Ge rs t ne r ' s r e de f i n i t i on of IB M 's m i s s i on .Some of t he ne w pro duc t s e xp l ore func t i on-spe c i f i c

c onsume r a pp l i c a t i ons , l i ke t he l i gh t we i gh t pe r sona le l e c t ron i c ne wspa pe r pa ne l . Ot he r e xe c u t i ons i nc l udea c ompa c t de sk t op a t -home ba nki ng un i t . "These a rej us t some of t he po t e n t i a l a dva nt a ge s o f a ne t worke dwo r l d , " r e f l ec t s G re e n .

Whi c h i s e xa c t l y wha t Ge rs t ne r ha s i n mi nd i n pur su i ng a "network-centric c omput i ng" s t r a t e gy , whe reIB M's l a rge ma i nf ra me se rve rs ma na ge a nd d i s t r i bu t eda t a ne t works a nd t he In t e rne t t o c omput e r s o f a nyki nd . "We ' re r e a c h i ng a n i n t e re s t i ng i n f l e c t i on po i n t , "Ge rs t ne r sa ys , "one whe re i n forma t i on t e c hnol ogyb e c o m e s m u c h m o r e t h a n a c o m p u t e r o n a d e s k t o ptha t forces you to type in order to inte rac t wi th i t .The technology i s c ross ing into t rue ubiqui ty, f inding

Logo EvolutionFounded in 1888 toproduce mechanicaltime recorders, thecompany went byseveral names beforebecoming IBM in 1924.

w1 9 2 4The logo communicates the company'sglobal presence,using sans-serif type,which was then considered ultramodern.

1 9 4 6After 22 years, thecompany replacedthe familiar "globe"with simple outlineletters rendered inBeton Bold typeface.

IBM1 9 5 6Designer Paul Rmade a subtle shiby choosing CityMedium for the lotype, which gavea m ore solid feel.

Print AdvertisingDeparting from its traditional use of Bodoni for

headlines, IBM uses aclean sans-serif typeface

to match the sleek contemporary look of its prod

uct designs. Created byOgilvy & Mather, the print

ads leave ample whitespace around the product

to focus attention onits aesthetic qualities.

Annual ReportTitled "the new blue," IBM's 199 7 annualreport comm unicates the company's lessuptight culture with photos of young employeesdressed for the '90s workplace. Report coverswere produced in alternate male/female versions for added interest. Visuals and text wereadapted for posting on IBM's website. \HMH\vVMSs s s s s s s
http://hmh/vVhttp://hmh/vV


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i t s w ay in to eve ry th ing f rom au tomob i le s to mach inetoo ls and hous eh o ld app l i anc es - in e f fec t, d i s ap pea r ing in to the fabr ic of our day- to-day l ives . As today ' sno t ion o f ' compu te r s ' i s r ep laced by thes e pe rvas ive'computing dev ices ' t he re ' s a new p remium on des ignas an as pec t of com pe t i t ive a dva n tag e . "T ha t a t t i tude abou t IBM ' s fu tu re b r ings the company back to the great des ign legacies of i t s pas t .Over 35 years ago, IBM chief Thomas Watson J r .- s on o f the com pan y ' s founder - a rgued h i s comm i t men t to des ign . "I n the IBM company, we do not th inktha t good des ign can make a p roduc t good , w he the r thep roduc t be a mach ine o r a bu i ld ing o r a p romot iona lb rochure o r a bus ines s man . Bu t w e a r e conv inced tha t

good des ign can ma te r i a l ly he lp make a good p roduc treach i ts fu l l potent ia l . In shor t , we th ink that gooddes ign i s good bus ines s . "

O n e o f t h e c o m p a n y ' s b i g g e s t r e c e n t i n i t i a t i v e s i st h e c r e a t i o n of t h e n e w e - b u s i n e s s p r o g r a m , I B M ' sf i r s t new iden t i ty s ince Rand ' s o r ig ina l co rpo ra te mark .A l t h o u g h I B M i s a d o m i n a n t p l a y e r i n I n t e r n e t s o l u t ions , the company found i t had low s ha re o f mindamong N e t u s e r s . Th i s w as a ma jo r conce rn s ince IBMis s eek ing to expand i t s image beyond i t s pe rcep t ionas a ha rdw are manufac tu re r . E qua l ly im por tan t i s thecompany ' s p r es ence in the exp lod ing a r ea o f s o f tw areand In te rne t s e rv ice . Lau nch ed a yea r ago , e -bus ine s s ' sa s s oc ia t ion w i th IBM cus tomer w ebs i t e s i s d r aw ing

1972To suggest "speedan d dynamism," PaulRand replaced thesolid letters of hisoriginal logo withhorizontal stripes.

Stripe ExtensionsThe blue stripe pattern hasbecome so associated withIBM that today the company uses it as a signaturegraphic on packaging andpromotional materials.

m

Direct Marketing ManualRather than define rigid grap hic guidelines,

IBM's m anual presents design principlesfor developing direct marketing

materials, explaining whatwould be considered"on brand" and

"off brand.'

U GH T OU T ,ATCHEDE n .

Urban Wall AdsSlapped next to a promotion for a hip-hop

group, this IBM poster catches the attentionof young passersby on the street. Thoughthe ad itself is conservative in tone, its loca

tion communicates a certain urban cool.

0 6 0 0 .


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Tthe w orld is ready fore-business

s w i f t r e s p o n s e . D e v e l o p m e n t a l r e s e a r c h s h o w e d t h a tmore t ha n 42% of t hose po l l e d sa i d t he y a re morei nc l i ne d t o do In t e rne t t r a nsa c t i ons on a n IB M bra nde de - b u s i n e s s s i t e .

Ihis p r o g r a m t u r n e d o u t t o b e s u c c e s s f u l f a s t e rt ha n we e ve n gue sse d i t woul d be . I t ' s a g re a te x a m p l e of h o w d e s i g n c a n p r o v i d e v a l u e - a d d e d

se rv i c e s , " s a ys Gre e n . " I t a l so shows t he be ne f i t s o fo u r n e w c o l l a b o r a t i v e a p p r o a c h b e t w e e n m a r k e t i n g ,m u l t i p l e a d a g e n c i e s , I n t e r n e t d i v i s i o n s , r e s e a r c ht e a m s a n d d e s i g n . "

I B M u s e d t h e S u m m e r O l y m p i c s i n A t l a n t a t ounve i l i t s bo l d g ra phi c a pproa c h . Pos t e r - l i ke i ma ge so f a t h l e t e s a n d t h e O l y m p i ct orc h a re supe r i mpose d a ga i ns tR a nd ' s b l ue ba r s . Tha t ' s no t t heo n l y a l l u s i o n to R a n d . I B Mproduct sc reensavers a re a playful recre a t ion of the d es ig ne r ' sre bus o f t he c ompa ny na me . " I tp r e s e n t s u s a s m o r e h u m a n ,more whi ms i c a l, more a ppro a c ha b l e , " s a y s G r e e n .

In some of i t s new black-and-w h i t e p r i n t a d v e r t i s i n g I B Meven comes off as the computeri ndus t ry ' s e qu i va l e n t o f a h i pfashion marke ter . For i t s Inte l l i s ta t ion Tower PC andnew f la t pane l moni tor , the ads use s t r iking, minimal i s tp roduc t sho t s . Eve n a d p l a c e me nt sugge s t s a ne w k i ndof downtown cool for the company, wi th outdoor poste rss lapped on urban wal l s next to ads for the la tes t hip-h o p g r o u p o r c u t t i n g - e d g e c l u b . " T h e s e a d s h a v e a na t t i tude and edge consi s tent wi th the personal i ty oft he ne w produc t de s i gn , " sa ys Gre e n .

Eve n t he c ompa ny ' s pa c ka gi ng a nd gra phi c s s i gna la ne w a ggre ss i ve a t t i t ude t h rough bo l d c o l or . Gone i st he c ompa ny ' s wa n whi t e pa c ka gi ng wi t h a n i nd i s t i nc tI B M l o g o a n d c l u t t e r e d b l a c k t y p e d e s c r i b i n g p r o d u c tfea tures . New blue s t r ipes - which play off of the logo- work on s tore she lves f rom a di s tance .

For the f i rs t t ime, IBM has integra ted a consi s tent ,uni f ied re ta i l look across a l l of the com pan y's Perso nalS y s t e m s G r o u p ' s p r o d u c t l i n e s a n d i n a l l g e o g r a p h i cm a r k e t s . " W e f e e l s t r o n g l y a b o u t l e v e r a g i n g b r a n de l e me nt s f i r s t i n t roduc e d wi t h t he Ol ympi c s , " e xp l a i ns

e-busincss (g

e-business WebsiteInstead of just offering individual hardware and softwareproducts, IBM is building on its traditional strengths byaggressively marketing integrated Internet solutions fore-business. Its website, which serves as a demonstrationof e-business, shows how the company maintains a consistent design and tonality that plays across all of itse-business marketing initiatives.

G r e e n . " W e i n c o r p o r a t e d t h e I B M l o g o b e c a u s e w eknow we ha ve so muc h e qu i t y i n t he ba r s . I t ' s i mme di a t e l y i de n t i f i a b l e t o c us t ome rs . "

Thi s i s i nc re a s i ng l y i mpor t a n t t o how t he ma rke t place i s changing. "As we ge t more into a commodi t izedbus i ne ss , i t ' s i mpor t a n t t o r a t c he t up t he de s i gn e l e ment to di f fe rent ia te yourself," he says . "At some pointt he se t h i ngs a re go i ng t o be so l d i n supe rma rke t s . "

"De s i gn ha s a c t e d a s bo t h d i f fe re n t i a t o r a nd me a nsof c orpora t e i n t e gra t or , " obse rve s Gre e n . "Our d i s t i nc t i ve l ook a l l ows us t o s t a nd ou t f rom c ompe t i t o r s .At t he sa me t i me , our un i f i e d a pproa c h ha s be c ome ahuge a dva nt a ge ove r c ompa ni e s who don ' t ha ve suc h

a s i ng l e -mi nde d v i s i on . "Tha t a dva nt a ge ha s qu i c k l y

b e c o m e a p p a r e n t . I n e a c hof t he pa s t t h re e ye a rs , IB Mp o s t e d r e c o r d r e v e n u e a n di n c r e a s e d p r o f i t s . I t s s h a r epr i c e ha s more t ha n doubl e d .Long gone i s t he de s i gn obsc ur i ty of the ear ly '90s . Ear l ie rthi s year , the company sweptt he Indus t r i e Forum ( i F ) i nH a n o v e r , G e r m a n y , t a k i n ga w a y 1 3 a w a r d s . R e c o g n i t i o ni n t h e r i g o r o u s c o m p e t i t i o n

p u t I B M in t h e r a n k s of p r e v i o u s w i n n e r s l i k eMe rc e de s -B e nz , B ra un a nd Sony .

T hi s ye a r ' s IB M a nnua l r e por t he ra l ds t he c ompa ny ' s r e ne we d a ppre c i a t i on of de s i gn . Unde r t hehe a d l i ne "T he En d of t he C omput e r , " t he re por tshows c onc e p t s t ha t l ook more l i ke a t t r a c t i ve c onsume rprod uc t s t ha n c omp ut e r s . Ins t e a d of t he usu a l d i sc u s s i on of ke yboa rds a nd moni t o r s , t he re por t de sc r i be s af u t u r e b a s e d o n " e m b e d d e d i n t e l l i g e n c e " w h i c h c o n sume rs wi l l e nc ount e r i n a numbe r o f wa ys . IB M use di t s report to vi sua l ly depic t a l ess upt ight corpora teident i ty as wel l . In s ta rk cont ras t to the dark-suitedIB M sa l e sma n of ye s t e rye a r , young , c a sua l l y d re s se de m p l o y e e s " m u g " p l a y f u l l y f o r t h e c a m e r awi th not a business sui t or br ie fcase in s ight .P roc l a i mi ng t h i s op t i mi s t i c i ma ge " t he ne wb l u e , " I B M h a s o n c e a g a i n r e t u r n e d t o ac ourse whe re de s i gn i s t he e mbl e m of i t ss t r a t e gy of i nnova t i on .


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e-business LogoIBM not only coined the phrase"e-business" to describe theInternet solutions it provic'tomers, it created an apt symbolthat stylistically echoes theInternet's ubiquitous @ sign.Appearing on customer websites,the logo has significantly raise dIBM's brand recognition.

i


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@ I S S U E

although Restoration Hardware's retail concept:enters around fixtures and furnishings for the

home-improvement market, its huge successcan be attributed to responding to America's

nostalgia for a time when everyday objects Awere built to last, with no pre-planned

storati

L

Ente r Res to ra t ion H ardw are , and youfeel an exci tement and sense of d is covery evocat ive of v is i t ing a wonderfu l es ta te sa le excep t tha t a l l t he

items here are new. As you stroll from room to room, youare s t ruck by the exquis i te bui l t - in cabinetry , the s i lvers age pa in ted w a l l s t r immed in w h i t e and beech , thegraceful whi te columns and the natural qual i ty of l ight .

Then you begin to not ice the objects for sa le inevery room. Craftsman-style w o o d e n f u r n i t u r e , h a n d -rubbed to a lus t rous f in ish . A Beaux Arts table lampand to rch ie r e . A n A r t D eco- in s p i r ed cha i r . V ic to r i ang las s doo rknobs . P ew te r f ix tu res . A nd much to yourde l igh t , s ca t t e r ed he re and the re on ches t s o f d r aw er s

BM and end tables , are toys you haveA J , J A no t s een in yea r s - a t in s pe ed -^ J L J L w boa t , a w in d -up A tomic Robo t

M an , a s ock monkey and the l ike .Wis tfu l ly , you th ink back on s imp le r t imes w hen qua l i ty and p r ideo f c r a f t s mans h ip , even in the making o f hou s eh o ld too l s , cou n tedfo r s ometh ing .

billion w asspent on consumer remodeling endeavorsin 1995.Source: NAHB

HOME FACT No. 25.5Tha t yea rn ing fo r au then t i c i ty i st u r n i n g R e s t o r a t i o n H a r d w a r e i n t oone of the hot tes t re ta i l concepts inthe coun t ry . Today i t ope ra tes 65s t o r e s i n 2 5 s t a t e s a n d B r i t i s hCo lumbia and en joys annua l s a le sof n e a r l y $ 1 0 0 m i l l i o n . W h i l eR e s t o r a t i o n H a r d w a r e i s c a p i t a l i z i n g on t h e g r o w t h of t h e h o m ei m p r o v e m e n t m a r k e t , i t u n d e r s t ands tha t ups ca le baby boomersa re n ' t l ook ing s o m uc h fo r u l t r a m o d e r n s t y l e a s t h e y a r e f o r w e l lm a d e a n d c l a s s i c a l l y d e s i g n e d f i x t u r e s a n d f u r n i s h i n g s .

F ounder and CEO S tephen G ordon under s t ands th i sdes i r e w e l l , s ince the r e t a i l concep t g r ew ou t o f h i sown personal search for such th ings . At the t ime, theidea of s tar t ing a re ta i l bus iness was the far thes t th ingf ro m h i s m i n d . T h e o d y s s e y t o w h a t R e s t o r a t i o nH a r d w a r e i s t o d a y b e g a n i n 1 9 7 9 w h e n G o r d o n , j u s ta w a r d e d a m a s t e r ' s d e g r e e i n p s y c h o l o g y , a c c e p t e dhis f i r s t job as a counselor in Eureka, Cal i fornia . He

years: On average, Americansare living intheir homes 572years longerthan they did 10years ago, making them morew illing to investin remodeling.Source: Wall Street Journal


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I S S U E :

assumption of obsolescence. From hammers to door knobs, industrialclocks to bookcases, the company celebrates enduring design. Its

primary stock-in-trade is authenticity - functional objects that arefinely crafted, beautiful to look at and emotionally satisfying to own.

For sophisticated baby boomers, Restoration Hardware satisfies adesire for things rich in history and style.

H a r d w a r equ ick ly r ea l i zed tha t h i s pas s ion fo r the human ps ychewas on a more abs tract level , and one day whi le l i s tening to a c l i en t des c r ibe he r dec i s ion to murder he rne ighbor , he r e s o lved to qu i t h i s job an d open a bed -and-breakfas t es tabl ishment in the scenic coas ta l town.

P urch as ing a d i l ap id a ted s ix -bed room Q ue en A nneVictor ian , he se t out to res tore i t to i t s or ig inal e legance , bu t d i s covered tha t au then t i c pe r iod ha rdw are ,l igh t ing f ix tu res and o the r f in i s h ing touches w ereextrem ely ha rd to f ind . In fact , he spent long ho urscon tac t ing obs cu re s ou rces th roughou t the coun t ry toloca te w ha t he needed . O nce he found them, ne ighbor sbegan as k ing w here they cou ld ge t them too . Tha t gaveGordon the idea of buying two and keeping one a n dlo and behold , what was to be the f ront room of theB&B became Res to ra t ion H ardw are ' s f i r s t r e t a i l s pace .

Over the next decade, cus tomers came f rom al l overno r the rn Ca l i fo rn ia to buy Res to ra t ion H ard w a re ' shard- to-f ind i tems , and f inal ly in 1989, Gordon decided h i s r e t a i l concep t w ou ld appea l to a w ide r marke t ."If w e c o u l d m a k e i t i n E u r e k a , w h e r e d i s p o s a b l eincome is not k ing, I knew there was oppor tuni ty , " hesa y s . The enthus ias t ic recept ion of i t s f i r s t few s tores

in Cal i fornia gave the company the conf idence toexpand in to marke t s ac ros s the coun t ry . I n J une 1998 ,Res to ra t ion H ardw are becam e a pub l i c ly t r aded company on the N A S D A Q .

"Restoration H ardw are has evo lved in to a homefurnishings s tore wi th a hardware soul or, at least, aha rdw are genes i s , " s ays G ordon . Indeed , i t s t i l l ca r r i e shammers , f l a s h l igh t s , t oo l k i t s and o the r t r ad i t iona lh a r d w a r e g o o d s , a n d s u c h m e r c h a n d i s e m a y e x p l a i nw hy i t a t t r ac t s more ma le s hopper s than t r ad i t iona lhome furnishing s tores . However , Res torat ion Hardwarepr imar i ly targets cus tomers who are drawn to the in t r ins ic beauty of objects as wel l as their funct ional i ty .

N o t a th r ea t to H ome D epo t o r the ne ighborhoodhardw are s to re , Res to ra t ion H ardw are appea l s to thos eBBBBWiWffli | seek ing i tems with a one-o f-a-kind

I feel ing , a lbe i t a door knoc ker orQ J l / 0 a r o c k i n g c h a i r . A r c h i t e c t u r a l l y

des igned to evoke the feel ing of as pac ious home , the s to r e env i ron men t inv i t e s l e i s u re ly b row s ing ,w i th cus tomers pas s ing th rough afoyer- l ike area to enter a "great

r0of all homessold in the U.S.have been previously occ upied.Source: U.S. Census Bureau

27


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@ S S U ECut NailsAlthough Restoration Hardwareha s evolved into a home furnishings store, it still carriessuchhard-to-find hardware itemsas cut na ils.

LightingSimple, classic designsthat often represent the

best of their periodmake up the selectionof lighting and lamps.

Room-like SettingsArranged to give customers thesense that they are strolling fromroom to room, merchandise isoften displayed as itwould beseen in a home.

1950s TimepieceOnce a familiar

sight in Britishschools and govern

ment houses, theNewgate electric clock

is now appreciated for itssimple, functional design.

Custom SignageCustomers can have classicsignage personalized with theirown name.

LeZig-Zag HCorkscrewRestorationHardware delightsin rediscoveringold favorites like France'sZig-Zag corkscrew.

wmmNIts post war in the U.K., die fifties.The Brits watchedthe clock care ully the prior decade their empire unraveling,while a new face on the wal surfaced: the Newgate Electric.Simple yet substantial, gracing government offices and shopkeepers'back counters,the lulls of girl and boyhood SCIKJOISalike.A generation grew up minding their ^time with the Newgate. And then, Ithe queens authority, it disappearet

the Newgatei London.The clock'-I stole the first swe received for my kitchenlarge in diameter, at IXi",


31/38

I S S U E

For Hearth and HomeRestoration Hardware's merchandiseselection isn't about high-designand precious antiques, nor does itspecialize in any one design styleor period. Rather it focuses on reintroducing commonplace objectswith intrinsic design value. "Welove products that surprise us, thatspeak to the heart, to our favoritememories, things that inspire laughter as well as thought," explainsfounder and CEO Stephen Gordon,whose uniquely personal visionhas struck a responsive chordwith consumers.

Natural LightWherever possible,Restoration Hardwaretakes advantage ofnatural light to givethe store interiora less commercialatmosphere.

Store PlacardsEvocative of the days

when the store proprietor jwould personally tell cus

tomers where he found the Iitem and why he liked it,placards written b y CEO I

Stephen G ordon himselftell shoppers about \the product in a friendlyconversational tone.

HOBNAI L CAKE PLATEThe LE. Smith Glass Company has been producing traditional Americanglass serving pieces for generations. Your grandmother had Smith glass...gosh, actually your great great grandmom's pantry probably sported apiece or two. LE Smith stopped making the Hobnail Collection probablyabout 25 years ago. They guessed correctly that w e were too groovy forthis hobnail stuff in the early 70*s. But. fortunately, good things have away of returning, coming our way again. And an understanding tha t acake made for a celebration, beautifully presented, enhan cing any occasion.is again the utmost of vogue. The L.E. Smith Hobnail cake plate... a cakepedestal, quite at home in your home . 5" heigh t. 11" diameter.USA made. O Q -

^ - ESTpMTrojsl

Vintage ToysThe revival of much-loved vintage toysreminds us of ourindividual pasts and

makes shoppingat RestorationHardware an enter

taining experience.

T T T T I

A R E

Check-out CounterJars filled with impulseitems, such as brande d

keychains, sit on thecheck-out counter, whilea lamp and framed pic

ture carry through theresidential atmosphereof the store - and give

customers a last chanceto view merchandise.

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Architectural DetailsThe fine architectural details of thestore exteriors and interior shelvingand fixtures reinforce the kind ofcraftsmanship found in Victorianhomes and comm unicate the company's appreciation for quality.

Pre-Bic LighterOnce taken for granted,

inexpensive objects like thisstainless-steel cigarette lighter

are seen for their design value.29


32/38

I S S U E

%of consumersare planningsome form ofhome improvement this year.Source: American Express1997 Retail Index

room." O the r s to r e s ec t ions t h eb a t h r o o m , t h e b e d r o o m a re

J J / Q d e l i n e a t e d b y d i s t i n c t i v e w h i t ec o l u m n s . L a m p s a n d d e c o r a t i v ei t ems fo r s a le a r e o f t en d i s p layedind iv idua l ly on app rop r ia t e fu rn i ture, allowing shoppers to view themas they migh t be u s ed a t home .

The ef fect a lso creates a senseof surpr ise . Shoppers del ight in the

fact that they never know what to expect around thecorner or on the next shelf. A $6 gyroscope toy mayb e d i s p l a y e d n e x t t o a $ 2 0 0 0l e a t h e r c l u b c h a i r a n d o t t o m a n .P r ices r ange f rom $5 to upw ardso f $5 , 000 , a t t r ac t ing bo th impu ls egif t shoppers and people in purs u i t o f s e r i o u s f u r n i t u r e . " W edon ' t buy p roduc t s fo r pa r t i cu la rp r i ce po in t s . We don ' t make pe r cep t ions abou t cus tomers w ho do ,or do not , f i t a g iven pr ice point , "s ays G ordon . "The t ouchs tone fo rus is the que s t ion , 'Would you wantt h i s i n y o u r h o m e ? ' "

G o r d o n c o n t i n u e s , " A t t i m e s ,w e 've added i t ems ju s t to be p lay fu l . I 'm no t s u re w e even have afo rmula , bu t w e have a po in t o fv i e w . " A m i n e r ' s l u n c h b o x , abook of labor-savings hints fromthe 1920s , a "H ome Improvemen t"s t a r T im A l len s igna tu re hammer , a boo t s c rape s hapedl ike a hedgehog a l l make s hopp ing an en te r t a in inge x p e r i e n c e a n d o n e t h a t s u m m o n s m e m o r i e s .

W h i l e m o s t of R e s t o r a ti o n H a r d w a r e ' s m e r c h a n d i s e ,G ordon acknow ledges , i s r oo ted in the pas t , he adds ," I t ' s not about nos ta lg ia . I t ' s an in tu i t ive process tounder s t and w ha t an egg bea te r can mean to peop le , topackage a se t of sa l t ce l lars so they evoke a whole se tof memories...We apprec ia te t r ad i t ion and h i s to ry , bu twe stay away from ye-old."

G o r d o n h a s c o n c l u d e d t h a t c u s t o m e r s w a n t t r a d i t ion that i sn ' t s todgy, a re t ro out look that apprecia testhe des ign values in common objects f rom the f i r s t halfo f the cen tu ry , bu t doe s n ' t s m ack o f t r e nd ine s s . "A s

Garden RoomRestoration Hardware doesn't strive to carrythe broadest selection of any single item, onlyexamples of the best. Along with offering flowerpots, clipping shears and garden ornaments,Restoration Hardware draws attention to theaesthetic beauty of industrial-era items such asa galvanized-metal barn lamp. It also createsexclusive improved versions of familiar favoritessuch as the potting bench.

t echn o logy b eco m es pa r t o f eve ry min u te o f ou r day ,w e ' r e h a r k e n i n g b a c k t o a s i m p l e r , p r e - i n f o r m a t i o na g e , w h e r e w e c a n r e c r e a t e w h a t w e o n c e h a d , o rc r e a t e w h a t w e w i s h h a d b e e n . "

H e s t r e s s es , "What t i e s eve ry th ing toge the r fo r u sis authent ic i ty , qual i ty , funct ional i ty and, f inal ly , someth ing you can te l l a s tory about ."

S to r i e s , w r i t t en by G ordon , a r e an impor tan t meansof e n h a n c i n g a p p r e c i a t i o n a n d u n d e r s t a n d i n g ofRes to ra t ion H ardw are ' s ec lec t i c p roduc t mix . In f ac t ,Gordon says he "s tar ted wr i t ing s ignage as a jus t i f icat i o n f or h a v i n g c e r t a i n i t e m s i n t h e s t o r e . " T h e s e

a n e c d o t a l p l a c a r d s t e l l c u s t o m e r s w h y G o r d o n f o u n d e a c hp r o d u c t so a p p e a l i n g , a n ds o m e t i m e s e v e n r e c o u n t a p e r s ona l me mo ry of hav ing on ejus t l ike i t w ay back w hen . Theper s o na l tone of thes e des c r ip t ions r e in fo rces the impres s iontha t Res to ra t ion H ardw are w an t sto s ha re i ts w onder fu l " f i nd s "w i th s hopper s r a the r than mere lyp r o m o t e m e r c h a n d i s e . T h e s es tor ies have a lso found their wayi n t o R e s t o r a t i o n H a r d w a r e ' snew ca ta log , w h ich debu ted inA u g u s t 1 9 9 8 .

Th i s fa ll Res to ra t ion H ardw arei s open ing a new s to re in theF la t i ron d i s t r i c t o f M anha t t an .A t 10 , 000 s quare f ee t , i t i s the

company ' s l a rges t s to r e to da te t hous ands o f f ee tlarger and tho usa nds of mile s rem oved f rom Res to rat ionH a r d w a r e ' s o r i g i n a l 3 , 0 0 0 - s q u a r e - f o o t s t o re i n t h eq u i e t t o w n o f E u r e k a .

T h e c o m p a n y ' s d r a m a t i c s u c c e s ss t e m s f ro m it s d e t e r m i n a t i o n t ob u c k m a n y r e t a i l t r a d i t i o n s , c o n cen t r a t ing in s tead on a s imp le ye tu n i q u e s t r a t e g y of a u t h e n t i c i t y ."F rom the beg inn ing , I had my ow nfocus ," Gordon says . "Cal l i t in tui t ion , igno rance o r na ive te , I neverw o r r i e d t o o m u c h a b o u t a c c e p t e dt e c h n i q u e s . "

HOME FACT Nc

5 1 %of the femalegeneral population say it w illbe at least20 years untilthey move.Source: Traditional HomeRenovation Style


33/38

MlkBy the year 2 0 0 0 thU.S. home w ill be 3 2a prime time for homeow nersto embark upon serious renovtion and remodeling upgra

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Hardw are DisplayA hand-painted illustrationof early hardware toolsreinforces the craftsmanlike quality of addressnumbe rs, door knockers,mail slots and similarhardware. The displayforms an interesting backdrop for the hom e furnishing products nearby.


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D E S I G N A N D B U S I N E S S C L A S S I C P L A N T E R S ' M R P E A N U T

IFred Astaire were reincarnated as a nut, he'd definitely be the Planters' Mr. Peanut. Charming and dapper, Mr. Peanut is the kind of nut that you'd be proudto take to any party. Just from looking at him, you knowhe's in a different class from the "rowdy" peanuts thatvendors toss out in paper bags at ball games.The trademark of Planters Nut, now a divisionof RJR Nabisco, Mr. Peanut was the brainchild ofa thirteen-year-old Virginia schoolboy namedAntonio Gentile. In a logo contest sponsored byPlanters in 1916, young Antonio submitted adrawing of a peanut person with arms andcrossed legs, which he labeled "Mr.Peanut." Planters awarded Antonio the grandprize of $5. Later, a professional i l lustratorreinforced the impression that Planters nutswere a cut above the ordinary by giving

Antonio's crude peanut person a top h at, monocle, w hitegloves and cane.

As dashing and charismatic as ever, the 82-year-old Mr.Peanut has become a celebrity in his own right, appearing inthe San Francisco stage show "Beach Blanket Babylon" and

honored with a statue and a small museumin his home town of Suffolk, Virginia, whichtouts itself as the Peanut Capital of theWorld. Fourteen cast-iron statues of the nutthat made Planters famous also line thefence of the company's new processing facility

in town. A plethora of Mr. Peanut objects,ranging from salt-and-pepper shakers to

toys, has also spawned a collectiblescategory all its own. No mere corporatelogo, Mr. Peanut has become an Americanicon, beloved by millions around the world.


35/38

Potlatch CorporationThe sponsor of @lssue, Potlatch Corporation has long been a proponent of the use of quality design to enhance corporate identity, promote products, and establish credibility and distinction among keyconsumer and business audiences. Its broad line of high-performancecoated printing papers - including Potlatch McCoy, Vintage,Vintage Velvet Creme, Northwest, Karma, Mountie, and Makers- are available in a choice of versatile finishes and shades, with bothrecycled and virgin fiber content. Potlatch's manufacturing systems inMinnesota are also recognized for quality by the InternationalStandards Organization (ISO) 9002. For Potlatch, paper is just thebeginning of the partnership.

Corporate Design FoundationCorporate Design Foundation is a nonprofit educational and researchorganization whose mission is to improve the quality of life and effectiveness of organizations. The Foundation conducts research, developsteaching material, and collaborates with business school faculty tointroduce product design, communication design, and office designinto the business school curriculum.

Issue: The Journal of Business an d Design is specificallypublished for business leaders and business school students tocommunicate examples of how and why design contributes tobusiness success.Board of AdvisorsDavid Brown, President,Art Center College of DesignPeter Clarke, Professor, AnnenbergSchool for Communication, USCPaul Cook, Chairman,SRI InternationalNiels Diffrient, Industrial DesignerGeorge Gendron, Editor-in-Chief,Inc. MagazineArthur Gensler, President, GenslerJoline Godfrey, Founder and CEO,Independent Means, Inc.Paul Hawken, Author and Chairman,The N atural StepJerry Hirshberg, President,Nissan Design InternationalDonald Jacobs, Dean, Kellogg Schoolof Management, Northwestern Univ.David Kelley, CEO,I DEO Product DevelopmentRoger Mandle, President,Rhode Island School of Design

John Massey, President,John Massey, Inc.Inabeth M iller, VP for AcademicAffairs, Massachusetts College ofCommunicationsPatricia Moore, President,Guynes Design, Inc.Dianne Pilgrim, Director, Cooper-Hewitt National Museum of DesignJohn Rosenblum, Dean, JepsonSchool of Leadership Studies,University of RichmondPaul Saffo, Director,Institute for the FutureGordon Segal, CEO, Crate & BarrelRich Silverstein, Co-CreativeDirector and Partner,Goodby, Silverstein & PartnersSara Little Turn bull, Director,Process of Change Laboratory,Stanford UniversityRichard Saul Wurman,TED Conferences Inc.

Printed on Vintage Gloss Cover, 100 lb.;Vintage Gloss Text, 100 lb. and Mountie Cover, 65 lb.


36/38


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Volume 4, No. 2, Fall 1998

BAA's Sir John Egan on DesignCEO Sir John Egan explains how BAA

is using design to enhance the experience oftravelers passing through its airports.

The Writing on the WallWhen designed well, donor recognitionwalls add to the aesthetics of a building

and even become a piece of art.

What's Inside?Can you tell what's inside a

package just by looking at its shape?Take this quiz and find out.

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Big Blue Reinvents ItselfDesign has played a pivotal role in

repositioning the IBM brandand giving a cohesive identity to its

broad-based technologies.sIE O

Restorat ion Hardw areRestoration Hardware's exquisitely

crafted home improvement tools and fixturesmake even upscale consumers

want to do a little work around the house.

Design and Business Classic

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Documents

At Issue Vol4 No2