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Sunday, March 21, 2010

Innovation Metrics - A Whole Brain Strategy

by Mike Brown

Innovation Metrics - A Whole Brain StrategyMetrics strategy is a vital topic relative to innovation. Depsite how important metrics strategy is, it's a challenging one for many businesses when it comes to innovation. Going back through my own experiences and secondary research on innovation metrics, here are a few starting thoughts on developing your metrics strategy:

Begin developing your innovation metrics strategy by determining what factors drive ROI. Specifically identify which factors increase positive business returns and which reduce necessary investment. Starting with the end result in mind will better align the overall innovation effort toward delivering a positive return on investment.

Adopt a "whole-brain metrics" orientation. This means consciously trying to capture both quantitative (left brain) and qualitative (right brain) metrics. Doing so, you satisfy the financial and performance-oriented need for numerical targets and tracking. Adding qualitative metrics into the equation, however, also provides the basis to match the numbers with stories, images, and other insights, providing a more complete performance picture.

Within the whole-brain approach, consider three distinct types of metrics related to innovation:
  • Culture Metrics - If your innovation efforts are part of an overall push to instill a more innovative approach to a department, business unit, or company, culture-based metrics help track how solidly the effort has taken hold. Quantitative metrics in this area may be more activity-oriented, i.e., how many people are participating in innovation efforts and what percent of employees have been trained in creative or strategic thinking disciplines. Qualitative metrics can tie to success stories on personal & professional development or other workplace-based changes.

  • Process Metrics - The second group of innovation metrics relate to systematic innovation activities. Quantitatively, it could be how many ideas have been developed or are in various parts of the innovation pipeline. Longer term, it could incorporate how many patents have been filed and received. Qualitative measures in this area might relate to process learnings or images / descriptions of prototypes developed through innovation efforts.

  • Return-Based Metrics - The third group includes ROI, ROC, new products/services as a percent of sales, etc. Here too though, it's important to augment the quantitative measures with qualitative elements, such as success stories, learnings (from both successes and mistakes), and customer comments (letters, email, online and social media-based responses, etc.).

Innovation Metrics Chart
This is hardly an exhaustive treatment on innovation metrics strategy, but it can be a good starter for expanding what you're doing now. If, however, you're doing more currently on innovation metrics strategy, then please share what's working for you.

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Mike BrownMike Brown is an award-winning innovator in strategy, communications, and experience marketing. He authors the Brainzooming TM blog, and serves as the company's chief Catalyst. He wrote the ebook "Taking the NO Out of InNOvation" and is a frequent keynote presenter.

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Anonymous Rajesh Hassija said...

I agree with your suggestions but the biggest problem i have come across is the human talent issue. In addition the need and recognition for innovation has to be driven from top to down in the organization. The metrics are a good way to measure the success but it’s more important first to sell the concept and have a buy in from all employees. Free and radical communication has to be encouraged and ambiguity has to be embraced. Overall i agree that these metrics can be a great start and we can periodically measure these and check if innovation trend in the organization.

8:07 AM  
Anonymous Lee Walko said...

Human talent is a key issue, and one of the items I have encountered is the different personalities (such as Myers Briggs) that come into play. Many of the creative individuals that prosper in the Innovation phase are not appreciated by upper management. When economic times get tough, like last year, these "Innovators" are often the first to go in my experience.

6:42 AM  

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