Too often, in the public sector and elsewhere, “design” is mistaken for “how it looks.” As a result, design is dismissed as ancillary to an initiative, something extra to be added in the rare event of spare time or budget. In reality, design is “how it works.” For a program,
product, policy or service to be effective, many factors come into play: the context in which it operates; the value that potential clients perceive to their lives; daily processes and workflows; staff skills and perspectives; clarity of communications; and, physical environments, among them.
Yeah why do people just associate the way things look with design. Guess it is natural for humans to abstract and simplify.
Source: Civic Service Design - preview edition | New York City Government - pdf 224 KB
It is a real challenge to educate stakeholders that design is a process. Mike Monteiro also covers this really well in his awesome book Design is a job.