Can design operate in a black box?

Not at all. Good design starts with a clear understanding of what is needed. This understanding has to be based on facts, and not on- feeling, assumptions, and interpretations.
Understanding the unit under consideration is required for the design to deliver value. A unit can be person, group, department, organization, etc. For E.g. - a person centered design is made by keeping the person’s need in mind; data is collected by observation of real user and things around him.
Similarly, improving organizational performance means that the design should create and deliver value for its stakeholders. For businesses, it means improved profits and more loyal customers; for nonprofits or governments, it means more effective ways to serve the people.