How to implement an innovation accounting system

Corporate innovation efforts and investments should not be exempt from measuring and evaluation. How else should we know if they are producing the desired results? Further, measuring the right things allows us to improve innovation process and increase our odds of success in the market.

Innovation accounting system is one way to approach measuring innovation in a systemic and cohesive way. We look at innovation as an ecosystem of interlinked actors and activities, where each individual element influences the other.

In the past I have written on how to start with innovation accounting with a humble change management strategy of embrace, extend, enhance. Dan Toma shared his advice for the minimum viable innovation accounting system. Recently he also suggested implementing it through three phases: first build on the existing behaviour and indicators, then add broader performance metrics, and finally, shift towards ROI-oriented measures.

The above form a solid base for your own implementation of innovation accounting. Reach out should you need advice for your specific situation and needs.