We just finished an innovation metrics project with a consortium of three multinational companies and a mid-sized enterprise company. In this post I wanted to share an insight into the four key performance indicators (KPIs) we’ve started to put forward to track innovation projects.
The image above is a prototype of what you need to track during an innovation project. We’ll explain in more detail in subsequent blog posts and our new book project. For now, let me highlight the four KPIs every innovation project should track:
- Risk & Uncertainty: How much have we de-risked an idea so far? How much risk remains?
- Potential Profitability: How big might the idea be in financial terms?
- Learning Velocity & Time Spent: How much time have we spent so far? How much have you learned during the this time?
- Cost: How much have we spent?
If you measure this for one project, or all of your projects, then you have an amazing overview of your progress. Now you’re getting closer to innovation accounting.