How does Design fit into an Agile process?

Design is not a linear process, and fitting design into an agile process can lead to shortsighted design decisions. Focusing on addressing the immediate needs of particular user stories within the limits of a sprint can lead to neglect of larger design questions, or 'looking at the big picture' that can come back to haunt teams later.

What's the best way to solve some of these questions, and which approaches work?

Hoping we can get a good representation of designers/PMs and developers to come to this session.