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?When Sean Carney, the new Chief Design Officer at Royal Philips Electronics, walks into a boardroom with other C-suite executives, he likes to offer what he calls a sanity check. He defines this as plunking down an award-winning object such as a set of cushy, blood-red headphones, say, or a sleek-looking necklace hiding a sensor that detects when an elderly patient has fallen and alerts caregivers. First, you start these meetings with endless PowerPoint presentations and Excel files. So then Ill drag out a product and say, this is why were here; this is whats driving sales, says Carney, who is based in the Netherlands. ?Carney, 49, has a soft, even voice and, aside from neatly cropped salt-and-pepper hair and a few crows feet around his eyes, a baby face. This is the man with the considerable task of bringing Philips (PHG), Europes largest electronics maker, back to life. Philips grew into a global design powerhouse during the 1990s and 2000s, becoming one of the most coveted places for young creatives to work. Over the decades, the firm has made everything from flatscreen televisions to light bulbs to life-saving health equipment. In 2011, Philips celebrated a record-breaking number of international design awards. Thanks to the elegant, streamlined aesthetics of its products, in the most rarified design circles, Philips ranks with the likes of Apple (AAPL) and BMW.?Its business hasnt fared so well, however. The slow-down in Europe has disproportionately hurt the company. Its lighting and healthcare divisions have struggled as global construction slowed and consumers and governments alike cut back on spending. The firm swung to a fourth-quarter loss, posting a net loss of 160 million euros ($211 million) after a profit of 465 million euros ($615 million) a year earlier. Near-term prospects have been anything but bright, with analysts from Bank of America (BAC), Citi (C) and JPMorgan (JPM) all issuing stark warnings in the past weeks. We are cautious about 2012, giv