How can you manage what you don’t measure?
Innovation is a key aspect of an organizations competitiveness and overall performance. But while most organizations claim to be engaging in innovative activities, are they actually measuring these actions and their outcomes? In recent years, evidence has shown that organizations can effectively use metrics to improve their innovation performance and competitiveness, , optimize allocation of resources, and align corporate culture with business goals and strategies. Evidence also points to the importance of having corporate leaders actively involved in innovation activities, assuming accountability for the results. By using innovation metrics effectively, corporations can help to fine-tune their innovation activities, increase their innovation success rates, and contribute to firm-level productivity gains. So where can you start? There are overarching guiding principles to help organizations select a strategic, balanced portfolio of innovation metrics. By following key steps in designing, using, and adjusting these metrics, corporations can meet their innovation needs and, at the same time, help to ensure internal company accountability for innovation investments.
Developing and using metrics to manage innovation and competitive growth is a multi-stage process. Organizations can help meet their corporate needs by following some simple yet key steps in the design, use, and adjustment of innovation metrics to measure innovation performance elements, both quantitatively and qualitatively.
