As this Fast Company article reveals, more than 70% of corporate leaders tout innovation as a top three business priority, but only 22% set innovation performance metrics.
Author Soren Kaplan argues that measuring innovation is a combination of art and science, which is precisely why it’s tough to do. Companies either don’t do it enough, or they go too far. Kaplan cites the example of post-it note creator 3M, who applied the rigorous Six Sigma model to its creative process – leading to tension between innovation and efficiency.
Kaplan recommends that the value of the innovation is measurably tied to the output–not to some dreamy notion of “creativity.” Outputs such as:
- Percentage of revenue or profit coming from international versus domestic markets
- Revenues from new products or services introduced in the past X year(s)
- Revenues from products or services sold to new customer segments
- Percentage of existing customers that trade up to next-generation products or services
- Percentage of revenue coming from services versus products (or vice-versa)
- Royalty or licensing revenue from intellectual property
Kaplan finishes by suggesting a useful list of measurement options for leadership, employees and customers.
Read the full post:
Publisher: Fast Company
Author: Soren Kaplan
How to measure innovation (to get real results)
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