Additional Innovation Metrics / Accounting

To increase the rewards from innovation, structure tasks into “ Layers “ and identify what needs to be measured –

Layer	What is Measured
Strategic Innovation	Measuring outcomes and the innovation ecosystem
Managing Innovation Processes	Measuring the innovation funnel
Innovation Competencies	Measuring the innovation team(s)
Culture, Leadership, Mindset	Measuring culture, skills and capabilities

…where each layer is measured by the following criteria –

Measuring the Innovation Ecosystem

1. Revenue
2. Portfolio distribution
3. Investment distribution
4. New product vitality index
5. Portfolio fade
6. Efficiency of innovation investment
7. Cost of innovation
8. New-to-existing profitability index
9. Innovation profitability ratio
10. Average funnel conversion rate
11. Average time to sustain

Measuring the Innovation Funnel

12. Number of ideas in stage
13. Number of ideas stopped per stage
14. Number of ideas progressed per stage
15. Average cost indicators
16. Average time spent per stage
17. Average estimated value-to-cost ratio

Measuring the Innovation Team(s)

18. Learning velocity
19. Maturity specific indicators
20. Confidence of key success factors
21. Holistic confidence in venture
22. Cost of the venture
23. Time spent in stage
24. Value-to-cost ratio
25. Risk-adjusted value-to-cost ratio

Measuring Culture, Capabilities, and Mindset

26. Culture traits measures
27. HR capability traits measures
28. Open minded, exploring, willingness to try, etc.
29. Entrepreneurial, collaborative environment
30. Rewards for successes and learnings

Next Step  –  To Increase the rewards from innovation :

1. Gain additional insights on innovation in other articles at www.cail.com/BI and other sources
2. Get the Innovation Accounting book to learn more about each measure, including practical tools and advice on how to create your own innovation accounting system
3. Contact CAIL at  info@cail.com to discuss innovation metrics, opportunities, developing the mindset to innovate for impact, strategies to meaningfully improve outcomes from innovation, etc.

Nov 2, 2021   –  by Bruno Pesec / CAIL           Innovation Insights                 info@cail.com            905-940-9000