Innovation Metrics

Why should you use this method?

To be able to measure and compare the success of innovation projects by applying 12 selected internal, external, and people metrics.

What are Innovation Metrics?

Key performance indicators are targeted towards various stakeholders and are linked to strategic objectives and goals. They indicate whether or not innovation success is possible in the long term.

• Key: A major contributor to success or failure
• Performance: Measurable, quantifiable, adjustable, and controllable elements
• Indicator: Reasonable representation of present and future performance

Relevant attributes when identifying and selecting the KPIs:

• Predictive
• Measurable
• Actionable
• Relevant
• Automated
• Few in number

Innovation metrics are a set of tools and techniques that fulfill the requirements of KPIs and measure the innovation efforts of a company or organization. Below, we suggest a few values and their measurement.

External metrics:

1. Impact on brand: acquisition rate of new customer per year

2. Impact on image: brand image surveys, customer feedback, or analysts' rankings

3. Impact on eco-system: number of external partnerships with universities, suppliers, complementors, and customers.

Internal metrics:

4. Increase of investment opportunities: Number of new innovation projects management can choose from

5. Increased value of investment portfolio: Financial valuation, revenue attributable to innovation

6. Increased value of capital invested: Net portfolio valuation over capital invested

7. Organizational learning curve: % of high-quality projects compared to previous periods

8. Non- incremental projects: Number of disruptive or breakthrough projects and new business model innovations

9. Non-incremental innovations to market: Number of non-incremental projects delivered as innovations to the market

People metrics — impact on culture

10. Speed of innovation: Time to innovation project completion compared to previous periods

11. Involvement: Number of people participating in innovation projects

12. Increase Quality: Quality of contribution by each employee compared to previous periods

How can you apply this method?

0. Before you start

Have the table open that is listed as template

1. Set Goals

Invite your team members and set project goals based on the innovation metrics mentioned in the table

2. State current metrics

State the current status of the project based on the innovation metrics mentioned in the table

3. Compare the metrics

Now compare the two numbers and figure out a strategy to reach the desired numbers set by your team