As the drumbeat of innovation grows louder, corporate leaders are feeling the need for stronger internal design. But before a company can even think about building an in-house design capability, it will need to address the problem that has plagued in-house designers since the days of the cave painters. This can be reduced to seven letters:

R—E—S—P—E—C—T. As soon as the department is established, its value starts to depreciate. Within months the new group is inundated with low-level tasks and excluded from high-level conversations.

What’s the cure for vanishing value? To reimagine the internal design department as an independent studio. Since respect comes from a combination of performance and proactivity, mimicking a successful design studio can trigger the same level of respect usually reserved for external firms.

How? Instead of expecting work to come in automatically, the internal team can adopt a more Darwinistic model by acquiring skills that rival those of external firms. It can develop its own engagement processes, seek interesting problems to solve, and make “pitches” to internal “clients.” Like an external firm, it can prove its competence through performance metrics and design competitions. It can even institute a charge-back system to attach a dollar value to the work it does.

Here’s a slide to share with your colleagues:

Most corporations generate a steady stream of designed artifacts—products, print communications, websites, advertising, manuals, financial reports, signage, retail environments, packaging, trade show exhibits—the “posters and toasters” of 20th-century commerce. When you add the growing list of emerging opportunities—customer experience, service planning, decision design, strategy mapping, and culture development—you begin to appreciate the need for strong design management.

“The Power of In-house,” our advice was to re-imagine the internal design department as an independent studio, fostering skills that rival those of external firms. Yet as valuable as design skills can be, the in-house team can make an even higher contribution—that of thought leadership.

In an age of nonstop innovation, winning companies will be those that establish a broad-based culture of innovation. How? By absorbing more about design thinking, aesthetic principles, communication theory, and brand strategy. While the role of the design leader is necessary to win the innovation game, the role of design coach will soon become crucial.