How can you effectively measure innovation?

1 Define your innovation goals and metrics

Before you can measure innovation, you need to have a clear vision of what you want to achieve and how you will track your progress. Depending on your industry, market, and strategy, your innovation goals and metrics may vary. For example, you may want to measure innovation in terms of revenue growth, customer satisfaction, market share, cost reduction, or social impact. You may also want to align your innovation goals and metrics with your overall organizational objectives and values. To define your innovation goals and metrics, you can use frameworks such as the Balanced Scorecard, the Innovation Radar, or the OKR (Objectives and Key Results) method.

2 Collect and analyze relevant data

Once you have defined your innovation goals and metrics, you need to collect and analyze the data that will help you evaluate your performance and outcomes. You can use various sources and methods to gather data, such as surveys, interviews, focus groups, observations, experiments, or analytics. You can also use tools such as dashboards, scorecards, or reports to visualize and communicate your data. The key is to collect and analyze data that is relevant, reliable, and timely for your innovation goals and metrics.

3 Compare and benchmark your results

To measure innovation, you also need to have a point of reference or comparison for your results. You can compare your results with your own past performance, your competitors, your industry standards, or your best practices. You can also benchmark your results with external sources, such as innovation rankings, awards, or ratings. Comparing and benchmarking your results will help you identify your strengths, weaknesses, opportunities, and threats, as well as your competitive advantage and differentiation.

4 Learn and improve from your feedback

The final step to measure innovation is to learn and improve from your feedback . Feedback is the information that you receive from your data, your comparisons, your benchmarks, and your stakeholders. Feedback will help you understand what works and what doesn't, what needs to be changed or improved, and what actions to take next. To learn and improve from your feedback, you need to have a culture of learning, experimentation, and adaptation in your organization. You also need to have a process of reviewing, reflecting, and implementing your feedback.

5 Adjust and update your innovation goals and metrics

As you measure innovation, you may find that your innovation goals and metrics need to be adjusted or updated over time. This is because innovation is not a static or linear process, but a dynamic and iterative one. Your innovation goals and metrics may change as you discover new insights, face new challenges, or encounter new opportunities. To adjust and update your innovation goals and metrics, you need to have a flexible and agile approach to innovation measurement. You also need to involve your stakeholders and communicate your changes clearly and transparently.

6 Celebrate and reward your innovation achievements

The last tip to measure innovation is to celebrate and reward your innovation achievements. Measuring innovation is not only about tracking and evaluating your performance and outcomes, but also about recognizing and appreciating your efforts and contributions. Celebrating and rewarding your innovation achievements will help you motivate and engage your team, your partners, and your customers. It will also help you create a positive and supportive environment for innovation in your organization. You can celebrate and reward your innovation achievements in various ways, such as sharing your success stories, giving feedback, offering incentives, or hosting events.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?