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| Innovation Metrics and Measures |
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It's an old adage: What gets measured, gets done. Innovation programs with measurable targets are better supported by executive leadership than initiatives without associated goals and targets. Moreover, the lack of metrics can imperil the very survival of innovation activities within an organization.
Innovation measures and metrics - organizational measurements that help classify the organization's ability to innovate and its record of success - are valuable for several reasons. They help to gain management support, allocate appropriate resources, motivate stakeholders, prove the benefits, and diagnose problems.
While there is no “one size fits all” single one innovation metric, there are many metrics that can be combined and tailored to gauge progress. The metrics you use will need to fit your business model, strategy, and new product development processes. Common metrics used by many companies today include revenue growth from new products, profitability from new products, R & D spend, patent submission, idea generation, employee participation in innovative projects, and innovation capacity.
While metrics may vary across companies, they need to become part of the daily routine of corporate innovators. Like it or not, innovation is an executive issue and executives want and need numbers to measure performance and make decisions.
Kalypso can help you to determine the right metrics for your organization, as well as the advantages and disadvantages of using certain metrics. Drawing upon of first-hand knowledge of innovation measurement best practices, we can help you to combine the appropriate metrics to attain a balanced view of innovation performance. Our team can also assist you with assessing historical innovation data points used by your organization, understanding how to measure progress from an accepted baseline, and using results to justify future innovation investments.
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