This paper presents an approach to organizational research that aims to produce research results that are both relevant and rigorous. The research approach combines the designing of a management tool with the testing of the tool using an action research methodology. The lack of relevance in organizational research is a much debated issue in literature. A design approach has been proposed to help bridge the gap between research and practice. However, in organizational research, there is little empirical evidence how design-based research works in practice and it is unclear how this type of research is best structured. The purpose of the paper is to illustrate what a comprehensive methodology for design-based research can look like and how an action research methodology can be used to test the design in practice.