Thought this was an informative and inspiring article by Steve Baty an industrial designer. Describing the process of design, relevant to our current packaging solution project.
Without an understanding of the underlying characteristics of Design,
 we restrict our ability to improvise and innovate the processes and 
methods we use to undertake our work as designers. A lack of discourse 
about Design quickly leads to stagnation, unless external sources 
provide a transformative—evolutionary or revolutionary—influence. It is a
 sign of a lack of reflection, self-awareness and critical analysis.
As designers looking to improve our Design work, such reflection 
plays an important role, for it allows us to look at several facets of 
Design at once:
» Quality of execution of our process and methods 
» Appropriateness of the process and methods to the challenge at hand
» Success of our designs
Project post-mortems tend to look at the first of these two; our 
customers (or lack) tell us the third. But in order to understand and 
answer questions of appropriateness, we must first understand the intent
 of a Design process and the methods therein. What is often discussed 
are the variants of overall process or variants of the individual 
methods. An articulation of the pros and cons of these variations 
focuses on a range of attributes such as efficiency or productivity, but
 rarely evaluates how the process or method satisfies the intent of the 
design activity. This omission is due to the fact that the intellectual 
discourse of design spends little time on articulating a deconstruction 
of the design process with respect to its intent, and instead looks 
primarily at its component tasks or methods. That intent is a 
realization of the characteristics of Design as a means of understanding
 and solving problems. 
Intent
The basic intent of a design activity is the creation of some 
'thing,' the specifics of which depend entirely on the problem being 
addressed. That 'thing' begins as an idea; it is extended, detailed, 
tested and refined. 
There are, then, several different considerations in operation during the design activity. The first is the 
origin of the idea
 or ideas, so as to maximise our chances of success. But more ideas do 
not immediately or necessarily lead to success. There is, then, the 
desire for many different ideas to be generated; a method by which these
 are evaluated and methods by which these are developed, refined and 
ultimately delivered.
A second consideration is that the 
refinement of ideas be directed. And directed towards the solution of the identified problem. 
Thirdly, there is the question of 
from whence such ideas are born. What are the triggers, the seeds and the form of each.
Finally, there is the question of 
how it is we arrive at our understanding of the problem we are serving. And how that understanding is both articulated and shared.
And so, in an attempt to address the various considerations, the design process seeks to:
» Understand the problem to generate and evaluate ideas
» Realise the best ideas from those generated
» Communicate a shared understanding of the problem, the solution and the process.
Understanding the Problem
At its heart, design seeks to purposefully improve the lot of some 
segment of humanity through the enablement or improvement of some human 
endeavour. To understand the gap or the current shortcomings of that 
human endeavour design undertakes direct, primary research with our 
'target' segment—along with whatever secondary to tertiary research is 
appropriate. More importantly, and philosophically, design seeks such 
understanding from the perspective of the people engaged in the end 
result—our target a.k.a. the people we are attempting to help. 
Our tool here, and the vehicle for such understanding, is empathy. 
Empathy should be employed with eyes wide open to our surroundings, and 
the broader activity or purpose within which our 'problem' resides. From
 this vantage we have access to culture, personal motivation, meaning 
and significance. We can see why someone chooses to do a thing and why 
they choose not to.
We have one more significant vehicle at our disposal in our efforts 
to understand the problem: a deconstructed worldview through which the 
designer identifies and critically appraises each constraint, real or 
perceived, within the problem area. This combination of empathy and 
deconstruction allow for a third vehicle or tool: that of reframing. 
Reframing a problem is the path through which we ask the question: "What
 problem are we really solving?"
All designers have the potential for hubris and arrogance that comes 
with the belief that we have answers to questions others don't; an 
arrogance borne of being correct some of the time and asking questions 
that most others don't think to ask. But the reality is that we can be 
wrong—wildly wrong—and we need self-awareness of this tendency. To 
temper this arrogance we involve a broad cross-section of people into 
the process of understanding the problem: people like customers and 
non-customers, the people who help them make decisions and the people 
within our organisation that make the products and services they 
purchase. Although it is ultimately our role to appropriately frame the 
problem, by engaging these people in the process of understanding, we 
increase our chances of success dramatically.
Generating & Evaluating Ideas
There is a critical step the designer must take in order to move from
 an understanding of the problem to a design idea. In many respects, 
analysis is crucial to realizing the value of our research since good 
analysis can salvage something from bad research, but the converse is 
not so true.
Analysis has many 
component techniques from deconstruction to abstraction and generalization.
 These provide us with tools to collate individual observations into 
more and more generalized knowledge about people and to identify 
patterns within our data.  During our research our aim is to learn as 
much as we can about the problem area. We capture photographs, stories, 
facts and trends. We dissect the foundations of the status quo and ask 
"Why?" and "What if?". 
This process of deconstruction provides the raw materials with which the designer works, not in form, but concept.
During this process of understanding we are able to say, explicitly, two things (Kolko, J):
1. I saw this
2. I know this
Together these provide an insight, a window of understanding into the
 problem. To this insight we can add a broad trend or design pattern, 
something that shapes our reaction to the world around us. Insight and 
pattern provide the spark for an idea. This is the process of 
synthesis,
 the act of joining two disconnected concepts or facts. With synthesis 
we have the generative engine of design. But if there is a strength and 
power to design, then it lies in the leap taken during synthesis. This 
leap can be shown and understood in hindsight, but not seen beforehand. 
This 
abductive thought process is the means by which the designer generates disruptive ideas.
The beauty of ideas is that they are a never-ending resource. With 
time and energy we can come up with an endless supply of them. When we 
capture many ideas, our emotional attachment to each is thereby 
diminished. This is an important characteristic of design: it allows the
 designer to more meaningfully and objectively assess the value of each 
idea. The designer not only generates a 
multitude of ideas,
 they maintain those ideas for the extent to which they demonstrate 
value. The multiplicity of the designer's approach allows them to be 
more exhaustive without sacrificing time. It is this characteristic of 
design, rather than iteration, that truly to leads to success.
With experience and practice designers can generate more ideas, more 
quickly, and of higher quality. Even so, not all ideas are good; some 
don't achieve the objectives for the solution. The designer has three 
methods at their disposal for evaluating the quality of an idea:
i) self-evaluation
ii) critique/review by others
iii) testing and evaluation by the target end 'customer'
Self-evaluation allows a designer to assess a design
 on the basis of intrinsic qualities. It is difficult for a designer to 
generate the objectivity necessary for a thorough evaluation of their 
own work.
During 
critique, the designer presents each of their
 concepts to the rest of the project team and receives feedback on the 
elements of the design that meet the objectives and those that require 
refinement in order to meet them. Critique provides an objective, 
time-efficient and effective method of winnowing out those concepts that
 least meet the objectives of the project. There are a few things to 
note about critique. Firstly, it's an implicit recognition on the part 
of the designer that they're fallible. This admission is an important 
one in maintaining the humility of the designer. Secondly, it is another
 example of how the involvement of other people in our design work can 
help to strengthen the quality of our designs. The review of our fellow 
designers provides numerous additional perspectives.
The third method of 
testing and evaluation is a 
further example of the participatory nature of the design activity. 
During these activities, customers representative of our intended 
audience are given access to a version of the design and asked to 
provide feedback. That feedback might be explicit, an 
evaluation—commentary or critique—or implicit—observations from a 
researcher/tester, the successful, or otherwise, completion of a task, 
facial expressions and gestures. In some cases the designer will use 
these sessions to trigger direct design input from the customer, asking 
them to provide new concepts and ideas. Such input, known as co-design, 
is another characteristic of Design.
Communicating a Shared Understanding
In order to communicate, share and evaluate concepts the designer 
must make them tangible. It is not enough to simply attempt a verbal or 
written description. Words can be evocative, but they can never do 
justice to the richness of a design concept. Instead, the designer gives
 their ideas form as a sketch or prototype, and removes the ambiguity 
that comes with the written and spoken word. Further, a sketch or 
prototype uses a language of its own—one which we all share regardless 
of cultural or ethnic background.
A sketch might be a quick drawing to communicate  a detail of the 
design or an abstract, conceptual map of the entire concept. Sketches 
come in a wide range of fidelity and quality, defined more by their 
purpose than their quality. Sketches are intended to be discarded, a 
sign-post along the way, not the destination.
A sketch can be shared with others, re-drawn, annotated, refined or 
discarded—all with little or no expense. The low cost of creation makes 
sketching an ideal tool to be used in early, exploratory phases of a 
design process. Regardless of method, the intention of a sketch is that 
it makes concrete and explicit an idea. A rough drawing, a theatre 
improv, an eraser tied to a marker—these are equally sketches.
As a concept develops, our use of the quality of tangibility shifts 
to an implementation (rather than conceptual) mode, and our needs move 
to the realm of understanding the mechanics of a concept. How will the 
pieces fit together? How will a person interact with the object? Does it
 still meet its intended purpose? Prototypes are still cheap relative to
 a production model, although only when we take into account the full 
cost of readying for production. Motor vehicle prototypes, for example, 
tend to be much more expensive on an individual basis than their 
production counterparts, but the prototype avoids the machining and 
configuration costs of an assembly line needed to make production 
versions. A prototype is the ultimate in "this is what I mean" when it 
comes to communicating, sharing and evaluating an idea.  As a means of 
rigorously testing a concept prior to the expense of manufacture or 
production, prototypes make a great deal of sense. 
Qualities of Design
These are the qualities of a Design process:
* Deconstructionist perspective
* Understanding born of empathy
* Abductive thinking and synthesis
* Multiplicity
* Critique
* Participatory and co-design
* Tangibility
Regardless of the overall process or the individual methods used, 
these qualities are what we strive for when conducting design 
activities. Combined, they provide a great deal of power in defining, 
framing and solving problems of any type, but they are particularly 
well-suited to problems of a more complex nature. Ensuring that your 
process and methods deliver on each of these qualities significantly 
increases your chances of success as you embark on your project.
source: http://www.core77.com/blog/articles/the_character_of_design_by_steve_baty_21975.asp#more