Title Creating Better Innovation Measurement Practices Richtnér, Anders

Edition 1st edition Published MIT Sloan Management Review, 2017

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Description 1 online resource (9 pages) Summary At most companies, innovation is a top managerial priority. Many managers look at successful innovators such as Apple Inc. and Google Inc. with envy, wishing that their companies could be half as innovative. To boost and benchmark innovation, managers often use quantitative performance indicators. Some measure innovation as results or outcomes, such as sales from new products; others measure innovation as a process, using metrics such as the number of innovation projects; some rely on input metrics; and still others focus on the innovation portfolio by looking at factors such as the percentage of investments in breakthrough projects versus line extensions. The key managerial challenge, the authors argue, does not lie in identifying metrics; there is no shortage to choose from. Rather, they say, it is understanding the problem that measurement should solve for the company and, based on that insight, designing and implementing a useful innovation measurement framework that is appropriate to the organization's needs. To do this, managers need to understand the innovation challenges the company faces, how innovation is currently measured, and the extent to which current measurement practices help or hinder efforts to achieve innovation goals. Only then will they be able to steer clear of common innovation measurement mistakes, such as placing too much value on data at the expense of meaning, or getting bogged down with too many measures that provide contradictory advice and incentivize employees to do the wrong things. The article contains a step-by-step framework that allows managers to identify whether their current innovation measurement practices need to change and, if so, how to go about measuring innovation more effectively. The framework is also aimed at companies that do not currently measure innovation but would like to start. The authors build their framework around three phases designed to help companies improve their innovation management practices: (A) assess current innovation measurement practices, (B) improve core innovation measurement practices, and (C) deploy the improved innovation measurement practices. Each phase involves distinct steps that companies should take. The authors write that their framework "is designed to help both individual executives and companies take control of their innovation measurement and understand the critical decisions, traps, and trade-offs involved - thereby allowing organizations to realize t .. Notes Copyright © 2017 MIT Sloan Management Review 2017 Issuing Body Made available through: Safari, an O'Reilly Media Company Notes Online resource; Title from title page (viewed October 1, 2017) Form Electronic book Author Brattström, Anna, author Frishammar, Johan, author Björk, Jennie, author Magnusson, Mats, author O'Reilly, Tim, author Rometty, Ginni, author Davenport, Thomas, author Moore, Andrew, author Hoffman, Reid, author Agrawal, Ajay, author Gans, Joshua, author Goldfarb, Avi, author Tapscott, Alex, author Tapscott, Don, author McGrath, Rita, author Iyer, Bala, author Tarafdar, Monideepa, author Turco, Catherine, author Parmar, Bidhan, author Freeman, R., author Westerman, George, author Wilson, H., author Daugherty, Paul, author Bianzino, Nicola, author Winston, Andrew, author Ross, Jeanne, author Sebastian, Ina M., author. Beath, Cynthia, author Andriole, Stephen, author Palmer, Doug, author Phillips, Anh, author Bonnet, Didier, author Maulik, Pete, author Wixom, Barbara, author Short, James, author Todd, Steve, author Baesens, Bart, author De Winne, Sophie, author Sels, Luc, author Brady, Chris, author Forde, Mike, author Chadwick, Simon, author Mulani, Narendra, author Alter, Allan, author Lacity, Mary, author Willcocks, Leslie, author Kapoor, Rahul, author Klueter, Thomas, author Svahn, Fredrik, author Mathiassen, Lars, author Lindgren, Rikard, author Roberts, Deborah, author Piller, Frank, author Byrum, Joseph, author Bingham, Alpheus, author Cebrian, Manuel, author Rahwan, Iyad, author Cervellon, Marie-Cécile, author Lirio, Pamela, author Safari, an O'Reilly Media Company

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