Identity design, for any organization containing more than three people, is the act of diplomatically negotiating personal egos, tastes, and aspirations of various invested individuals against their business needs, their pre-formed expectations, and the constraints of the market place. Making something formalistically beautiful, while desirable, is a more private part of the process, something that the designer needs to achieve incidentally, not something that can appear to be an overt motivating cause. (This is because form is subjective, and not an easily argued position when a designer is trying to get their client to feel comfortable assuming a new identity.)
Another must-read article by Paula Scher. Visit the link above for the whole article.