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27 innovation metrics you must measure

Systemic challenges require systemic measures.

Bruno Pešec
Bruno Pešec
2 min read
27 innovation metrics you must measure

For the last couple of years, I've been working with Dan Toma on cracking the code of measuring innovation in a meaningful way. Now, Dan and Esther have collected that knowledge—and more—in an innovation accounting system that consists of several layers:

Layer What is measured
Strategic innovation accounting Measuring innovation ecosystem
Managerial innovation accounting Measuring innovation funnel
Tacical innovation accounting Measuring innovation teams
Culture and leadership Measuring culture and capabilities

Each layer has its own set of measures, listed below.

Measuring 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 innovation funnel

  1. Number of ideas in stage
  2. Number of ideas stopped per stage
  3. Number of ideas progressed per stage
  4. Average cost indicators
  5. Average time spent per stage
  6. Average estimated value-to-cost ratio

Measuring innovation teams

  1. Learning velocity
  2. Maturity specific indicators
  3. Confidence of key success factors
  4. Holistic confidence in venture
  5. Cost of the venture
  6. Time spent in stage
  7. Value-to-cost ratio
  8. Risk-adjusted value-to-cost ratio

Measuring culture and capabilities

  1. Culture traits measures
  2. HR capability traits measures

Start your own journey

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:

Innovation Accounting - the new book by the authors of The Corporate Startup
Written as an add-on to The Corporate Startup, the Innovation Accounting book provides a practical guide for measuring your company’s innovation ecosystem

Alternatively, book a call with me to discuss implementing innovation accounting system in your organisation by clicking the button below:

InnovationStrategyLeadershipMetrics

Bruno Pešec

I turn corporate innovation into a viable investment.


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