If you're new to collaborative design, this is Paula Mestre and Luke Burrows' description:
It is a methodology that includes involving stakeholders, designers and users on an equal footing in the design process in order to help ensure the product designed meets their needs and is usable.
An idea for a new service or solution is presented and the stakeholders are asked to participate during several stages of an innovation process: the initial exploration and problem definition both to help define the problem and to focus ideas for solution, and during development, they help evaluate proposed solutions.
So - a great way to achieve a common vision among your stakeholders at the start of a project. The presentation looked at techniques to involve everyone on an equal footing using methods that empowered everyone to contribute - prototyping and expressing the user journey.
I encounter quite a few projects in their later stages when this kind of thing hasn't happened. It's something we could definitely benefit from doing more of at the University. The techniques have certainly worked for me.
Collaborative design session outline and presenter info - User Vision website
Session slides on slideshare - Collaborative design by Paula Mestre and Luke Burrows, User Vision
Paula and Luke showed a couple of videos in their presentation. I particularly liked this one illustrating the customer experience vision for a business concept - the Greengrocer.