Metrics can be designed to measure performance in each of the model’s four interdependent elements:
- Stakeholder Strategies. How well are we achieving the strategies designed to address the needs of each group of stakeholders? Are we doing the right things?
- Process. How good are our critical innovation processes? Are we doing things right?
- Resources. How appropriate are our internal resources and how effectively have we tapped external resources? Do we have access to the right resources?
- Organization and Culture. Do we have the appropriate organizational structures, culture, and reward systems to drive innovation? Are we getting the best from our resources?
Answering these four questions at any given moment will provide a comprehensive snapshot of innovation, but it won’t provide any early warning of emerging problems within the innovation system. To get a complete picture, you need to understand the innovation trajectory, or rate, by adding a time dimension within a continuum represented by four phases:
- Lagging indicators provide information on past performance, answering the question, “HOW well did we do yesterday”
- Real-time indicators provide information on current performance, answering the question, “How well are we doing today?”
- Leading indicators provide information on likely future performance, answering the question, “How well are we likely to do tomorrow?”
- Learning indicators provide information on the rate at which the organization is improving its performance, answering the question, “How well will we do in the longer term?”
Innovation Metrics: A Framework to Accelerate Growth
by John Collins