Measuring Innovation to Drive Business Growth
By Soren Kaplan, Founder of InnovationPoint; Writer for FastCompany
How do you measure innovation? One of the reasons that only about 1/3 of all Fortune 1000 companies have formal innovation metrics is because this simple question does not have a simple answer.
Metrics can be important levers of innovation – for driving behavior, as well as evaluating the results of specific initiatives. Companies like 3M and Google have had innovation metrics for years – the most noteworthy that 10% of employees’ time is dedicated for experimentation with new opportunities. Some companies like 3M have tried to mandate that 35% of the corporations’ revenues should come from products introduced within the past four years.
Defining the right metrics for your business can be tricky. There’s generally no one right answer and agreeing on what to measure can feel more like art than science.