Ask the average CEO when they use design and most will quickly get on the subject of annual reports and websites. Maybe company logos too. But the sharpest business leaders today know design has come off the page and is a core part of their business.

Welcome to the age of Smart Design: design as a guiding business philosophy and set of management tools. Design that can help rework internal company messaging or redesign reputation. In the toughest economic climate in decades, it could be the difference between success and struggle. Here’s a primer on the key principles:

Balance creativity with purpose. Creativity can attract customers, generate buzz and build reputation for your company in the short term, but without a singular business purpose it’s just a lot of color and passion. The core principle of Smart Design demands absolute balance between these two elements. One powerful example is the Target brand. It’s become synonymous with “cheap chic”. This perfect combination of creativity and purpose allows Target’s consumers to be price conscious while feeling stylish.

Gather knowledge to guide change. The first thing any Smart Design team should do is gather information about the problem they’re trying to solve. For most organizations, this begins with a deep, objective look at the company, brand, product and customers. It is from these insights that all strategy and design considerations should evolve. Detailed information from staff, board members, clients, competitors and the general marketplace will allow the team to accurately frame the emotional and rational equities of the brand before they ever put pen to paper.

Sharpen message focus. Smart Design often makes the complex seem simple. So, whether your brand is entering new territories or trying to stay relevant in a changing market, a tightly focused, consistent message is critical. Case in point: our Microsoft Office clients are seeing their historically B2B-oriented brand reaching an increasingly complex and diverse consumer marketplace. We’ve worked with them to translate the Office brand into relevant messages for the growing consumer segments. The resulting message allows Microsoft Office marketers around the world to create connections with consumers based on a focused set of brand truths told in a consistent way.

Design a system of accountability and measurement. Traditional design is relatively easy to measure: there are set criteria to be met and a visual end product that can be touched, critiqued and assessed. With Smart Design the product is often less tangible, but measurement and accountability are equally important. If, for example, a company hoped to create a significant cultural change, they could seek to answer questions such as, “Are your departments and project teams aligned behind a singular mission or purpose?” Only by setting meaningful benchmarks to chart progress and successes can an organization gain the confidence and insight necessary to create real change.

When it’s all said and done, these are simply the principles of design applied in new, smart ways. Try it out and you may well find that design can be a powerful strategic tool for shaping your business, as well.