The website is designed here at an abstract level. The process is sometimes called wire-framing. We're basically providing a blueprint for the site - a flow-chart, almost, of how the pages / site sections will interlock with each other.
We then create a 'mockup' for all of us to review. We typically only produce one design initially for review - it is used as a key starting point, as it helps in the generation, elimination and refinement of ideas before we begin the actual coding of the website.
Coding / Production
Once a layout has been agreen upon through the process of mockups and their editing, we code the website into a series of templates. These templates then go on to form the basis of your site.
The testing process ensures that the site meets all the previously agreed criteria - that it functions in the ways that we agreed upon and that, most importantly, you're happy with it's functionality.