You get what your measure!

Do you want to improve competitiveness? So what should you measure?

In 2009 I was involved in an attempt to answer that question. It started as a challenge in the InnovationPioneers network. 26 companies contributed with what they did and Jan Sandqvist from GOOGOL read everything about metrics he could find. Then Karin K?llman put it all together in a thesis.

The result was a framework.

As usual, there are no simple answers to complex questions but the framework will help you organize your metrics enough to take on the challenge.

And who would not like to have better predictions and an overview of the innovation pipeline?

The framework:

So what is coming in (Inlet), what is happening inside (Throughput) and what comes out of your process (Output).

In those three "phases" separate in Tasks, Organisation, Financials, and Market.

Some examples:

• Tasks: Nr of ideas, valuation of approved ideas (Input)
• Organization: Average development time per project (Throughput)
• Financials: Time to break even (Throughput)
• Market: Time to market (Throughput).

Then consider if you measure Effectiveness? Efficiency? Balance? Or amount?

Remember to focus to get bare minimal of metric to give you the info you need.

Avoid selecting the metrics that are easy to measure unless they make sense.

Take a good look at the "picture" that emerged in front of you. 

1. Does it give you an idea of your innovation pipeline?

2. If needed see what metrics that could help.

If they are not available you need to see if you can make them available.

3. If redundant metrics, take them away.

Let me know if you like to take on this challenge in your organization.

It is not easy but it will give a lot of good insights that will improve your capability to create innovations even if you do not reach a perfect metrics system.

Klas Bertilsson / Innovation Advisor