How to Establish Innovation Metrics

An article from Sensaco GmbH partner and innovation consultant, Dr. George Fankhauser, explores the difficulties of finding and applying the right innovation metrics and indicators. Drawing on over 20 years of innovation management research, Dr. Fankhauser discusses the abundance of metrics and KPIs that have been classified by the process phase, measurement area, and expression in qualitative or quantitative terms. The article recommends using a few simple metrics across the stages of the innovation process that connect investments to outcomes, measuring throughput by focusing on the value metric, and assessing the maturity of an organization in order to determine which drivers are most important. The paper concludes that, while selecting the right metrics can be challenging, it is vital for continuously monitoring and improving innovation processes.