Continuing the thoughts on metrics..
3) The Three F’s – When beginning to consider innovation metrics – there are three main “F”’s that you need to measure – Form, Flow, and Function.
- Form – Form is your ability to perform each part of the innovation process.
- Flow – Flow is your efficiency at both passing stuff through the individual elements of the process as well as the overall process itself.
- Function – Function looks at the program as a whole and its ability to achieve organizational goals, and the organization’s innovation capacity as a whole.
Taking the innovation process you’ve developed in section 2 (see last week’s post) above, you then go through the process figuring out what metrics are most appropriate taking into account the 3 F’s. For most companies, the metrics will be broadly split into two sections – the form and flow of the pipeline itself – and the function of the program as a whole (Innovation Metrics Worksheet – Form and Flow):
Some good examples of Form and Flow metrics:
- Problem Identification and Definition stage:
- Number of Problems submitted for consideration (form)
- Number of individual event sponsors recruited (form)
- Number of Event Charters defined (form)
- Number of Events accepted and set up (flow)
- Number of Events in each of the key corporate strategic areas (flow)
- Idea Collection, Building and Management
- Number of ideas/builds collected (form)
- Number of Event Visitors / Contributors (form)
- Number of Idea/Build Authors (form)
- Number of ideas reviewed and concluded (flow)
- Number of Ideas passed through to concept development (flow)
- Concept/Opportunity Development
- Number of Prototypes developed (form)
- Number of ideas going into Project Management (flow)
- Potential value of ideas going to Project Management (flow)
- Average time idea spends in Concept Development (flow)
- Project Management
- Average time to project completion (form)
- Number of projects completed versus target (function)
- Number of projects currently in the pipeline versus target (function)
- Effective capacity versus capability (function)
- Initial Launch
- Target sales/cost reduction/process improvement versus actual (form)
- Customer satisfaction (form)
- Customer uptake versus local competitor/alternative (form)
- Number of Launches proceeding to Expanded Launch (function)
- Number of Launches failed (function)
- Revise, Expand, and Re-Launch
- Contribution to profit margin from innovations
And an Innovation Metrics Worksheet for Function:
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Boris Pluskowski is the Founder of The Complete Innovator where he regularly shares new ideas and best practices on how big companies can harness Innovation, Collaboration and Social Media to drive new sources of value throughout the enterprise.
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