How can you make your innovation metrics more meaningful?

Innovation metrics should include impact. As businesses, we are accustomed to financial metrics that have acronyms which are more recognized than the words behind them (e.g., ROI, AOV, etc.). For impact-related KPIs, which should be integrated with any innovation we are putting forward, we need to do the same thing. It needs to become second nature, and we should be rigorous about defining the outcomes we would like to achieve, identifying the right indicators to measure those outcomes, and analysing results to ensure we are achieving them. Metrics and strategy - especially in today's world with incoming legislation - cannot solely be financial. Innovative companies will measure on impact as well.

Innovation is Outlearning the Competition! An often-overlooked aspect is creating a culture of experimentation to fail faster and invest in initiatives that truly resonate with consumers.

Aligned Objectives with strategy: Ensure innovation metrics match business objectives, keeping efforts focused on strategic alignment and meaningful outcomes. Combine quantitative and qualitative metrics for a comprehensive assessment of innovation impact and effectiveness. Evaluate innovation metrics for sustainability and scalability, ensuring lasting impact beyond short-term gains.

Para inovar, é preciso entender as demandas e as necessidades do mercado, dos clientes e dos usuários. Assim, é possível realizar estudos e planejamentos que priorizem as solu??es mais viáveis e eficazes. Além disso, é importante definir uma estratégia de go to market, ou seja, como lan?ar e divulgar a inova??o para o público-alvo.

Innovation.... True innovation requires disruption, courage and change. Most organisations interchange the term innovation from incremental improvement. One tackles change from top down, one tackles change from bottom up. Both have benefits and risks. Problems arise when there is confusion in terms of the outcome sort. True investment in top down change could be measured on the % of qualified business ideas that turn into operations, and in addition the amount of BAU activities that are either commoditised, outsourced or retired. If the company's culture is built/developed on tha fact that change is constant, then its the improvement to the velocity of change could be the innovation metric to track.

In my experience, tailoring metrics to each innovation phase enhances clarity and focus. We call these metrics Key Learning Indicators in alignment with the popular term "KPI". Start with number of customer insights, diversity and volume of ideas in ideation and shift to more traditional KPIs the later you stand in the innovation process.

Innovation involves various stages like idea generation, testing, scaling, and implementation. Each stage has unique challenges and outcomes, needing specific metrics. For instance, measuring idea quantity and diversity matters in ideation, while adoption and retention rates are crucial in scaling. Choosing stage-specific metrics helps track and enhance the innovation process effectively.

Usually organizations define "lagging KPIs" which show you the past (for example: Revenue, Defects, etc.). A good practice is to use also "leading KPIs" so you can forecast how the results will be in the near future, for that purpose Pipeline as compliment of Revenue, Material check as compliment of Defects, etc. In that way you will be proactive, not reactive.

From experience, tailoring metrics to each innovation stage—ideation, experimentation, validation, scaling, and implementation—profoundly impacts success. In ideation, measuring idea quantity and diversity sparks creativity. Moving to experimentation and validation, the focus shifts to feasibility and impact, requiring different metrics like prototype effectiveness and user feedback. During scaling and implementation, adoption and retention rates become crucial. This strategic approach to metrics ensures each stage of innovation is efficiently guided and measured, directly contributing to the overall value delivered.

Metrics should be very different between upstream and downstream innovation. In downstream processes, traditional KPIs could be used (e.g., new products released per unit of time). Conversely, in upstream innovation, your goal should be to generate and test as many insights and business/product ideas as possible. In this phase, good metrics could be: - Number of ideas tested or insights per unit of time - Number of ideas killed (after testing) / number of ideas generated. - Resources saved by killing the bad ideas quickly.

Measure social fabric reinforced, not frayed. The obsession with Fordist efficiency metrics rests on a flawed industrial age premise - that people are machine components to be optimized through ruthless measurement. This dehumanizing view fueled inhuman practices like Taylorism. While statistics around productivity and yield seemed objective, they masked holistic costs in the name of "progress." True innovation depends on nurturing human potential, not squeezing it dry. Consider how Tennessee Valley Authority's rebuilding metrics balanced human development alongside infrastructure. Their projects measured lives improved through economic uplift and empowerment, not just kilowatts generated or dams built.

Measuring what you produce in execution output is almost always a bad idea, since in innovation, cranking out products and features that haven't been tested with customers wastes precious time, resources and organizational trust.

I once helped a customer crowdsource ideas within their supply chain. We followed a pretty simple process: 1) we encouraged people to share ideas in a STAR (situation, task, action, and result) format 2) the core team categorized the ideas in target baskets 3) the top five ideas for each basket were presented for employees to vote on While simple, the structure allowed for divergent and convergent thinking while enabling for the wisdom of crowds. Out of the effort, the customer discovered an opportunity to rationalize their plants in their supply chain resulting in cost savings that provided a 10x return on innovation campaign.

To enhance your innovation matrix, incorporate a triple bottom line perspective along with a gender lens. Evaluate innovations based on their environmental, social, and economic impacts, while also considering their implications for gender equality and inclusivity. This approach ensures a more comprehensive assessment that addresses sustainability and diversity goals simultaneously.

Input metrics track resources invested (e.g., time, money, talent), output metrics measure tangible results (e.g., number of new products launched), and outcome metrics assess the impact on stakeholders (e.g., customer satisfaction, market share growth). Balancing these metrics provides a comprehensive view of innovation performance and its implications.

The critical role of benchmarking innovation metrics against industry standards, competitors, and past performance to identify strengths and areas for improvement. This comparison fosters a culture of continuous learning and adaptation, essential for maintaining a competitive edge and driving sustainable growth.

Benchmarking and evaluating innovation metrics are crucial for assessing progress, identifying areas for improvement, and staying competitive. By benchmarking against industry standards and best practices, organizations can gauge their innovation performance relative to peers and market leaders. Evaluating innovation metrics allows for tracking the effectiveness of initiatives, identifying bottlenecks, and reallocating resources strategically. Regular assessment enables refinement of innovation strategies, fosters a culture of continuous improvement, and ensures that innovation efforts align with overarching business objectives and market dynamics.

Adopt a balanced scorecard approach to innovation metrics, considering multiple dimensions such as financial, client, internal processes, and learning and growth. This holistic view ensures that innovation efforts are evaluated comprehensively and contribute to overall organizational performance. Making innovation metrics more meaningful involves aligning them with strategic objectives, and also at the same time equally focusing on actionable insights.

Compare your innovation metrics against industry standards, competitors, or historical data to gauge performance and identify areas for improvement. Benchmarking helps contextualize your metrics and provides insights into where your organization stands relative to others.

Innovation metrics should enable you to gauge your performance relative to competitors and industry norms. Benchmarking against reliable sources like market research or customer feedback helps identify trends and areas for improvement. Comparing metrics over time or across projects reveals patterns and opportunities for learning from successes and failures.

Modifying the innovation metrics is important so as to respond to ever-evolving needs of the customers. Nowadays the future of a company is in the hands of its customers. If the customers’ needs are unmet, those organizations are doomed. In a rapidly changing market, businesses need to stay ahead of the curve to remain competitive. Responding to evolving customer needs through innovation allows companies to differentiate themselves, capture new market opportunities, and stay relevant in the eyes of consumers.

To me the definition of innovation is very simple = Doing something that solves the problem better than existing solutions. Unfortunately, it seems like a lot of startups and VCs are focusing more on the tools rather than the solution. These tools are usually AI, blockchain, VR, AR & nanotechnology. In my eyes these are only examples of tools, not solutions in themselves.

Keeping our innovation metrics fresh and aligned with our evolving goals is like navigating a rapidly changing landscape—it requires constant adaptability. By personally committing to a regular review rhythm, whether it's monthly or quarterly, we ensure our strategies stay relevant and responsive. This hands-on approach allows us to swiftly pivot in response to new insights or shifts in the market.

J’ai l’habitude d’expliquer à mes clients que les tableaux de bord de pilotage sont vivants. Cela implique, qu’effectivement, les indicateurs sont susceptibles d’évoluer avec le temps. Ceci n’est pas sans conséquence car si l’indicateur évolue il devient difficile de suivre l’évolution, dans le temps de l’indicateur, ou d’indicateur voisin.

Innovation is dynamic, so your metrics should evolve accordingly. Regularly review your metrics to ensure they remain relevant, aligned with strategy, and capable of capturing progress accurately. Adjust metrics as needed to reflect changes in the business environment or strategic priorities.

KPIs are undoubtedly important. However, I can only warn against suffocating the area of innovation with too many KPIs. Innovations only work in a positive corporate culture in which innovations are expressly desired or demanded by the management or owners. This requires creativity and freedom. Innovations can only be successful outside of complete fixed processes. This is difficult for many managers to accept.

Innovation is about the future tense - not the past. Innovation often requires a long-term perspective, but some metrics might incentivize short-term gains at the expense of long-term innovation and growth. This can lead to a culture that prioritizes immediate outcomes over more substantial, impactful innovations. Layout clear exceptions for innovation and be both realistic, and brave. Taking a calculated approach to innovation is truly the best way forward.

Innovation's metrics are key ??, but sometimes the essence lies beyond mere metrics. Embracing uncertainty, innovation demands freedom to explore ?? without the constraints of rigid benchmarks. A focus on short-term outcomes ?? can overshadow long-term breakthroughs ??, while true progress stems from learning ??, not just results. Balancing qualitative insights with quantitative data ??, encouraging risk-taking ????, and valuing the innovation journey over instant success fosters a culture ripe for genuine breakthroughs. Let's measure what truly matters: growth ??, learning, and the courage to innovate!

As mentioned above, it's crucial to understand that tracking innovation performance extends beyond just observing the innovation funnel or stage-gate process, and encompasses different levels. Another key point to remember is that the best way to kill innovation is to measure it with financial KPIs. Company's financial accounting, which are perfectly designed for measuring core business performance, can't measure something that has not happened yet.

To make product metrics more meaningful for business, align the final goal with company strategy and brand mission. To make product metrics more meaningful for people, always do research. People learn, and expectations change all the time. The use meaning and purpose can vary.