Innovation Accounting - The Anti-Procrustean Approach To Key Performance Indicators

Large enterprises often rely on standardized KPIs appropriate for mature businesses to evaluate the success of their innovation departments. However, this practice has led to frustration and disruption by more nimble startups. Instead, companies should separate their innovation activity from their core business and use specific KPIs for each. Reporting, governance, and global KPIs focus on progress, investment justification, and overall growth. This approach to innovation accounting will allow companies to avoid Procrustean KPIs and support sustainable business models.