The advantages of investing in innovation have been demonstrated through various studies, so that today it is a term that is on everyone's lips. Now the discussion is not whether we should invest in innovation? but rather how to invest in innovation? and how to measure its impact on the company.
Based on our experience as consultants, we observe that the five most common mistakes (or some of them) that organizations make when measuring the impact and needs for innovation are:
1. It is measured too much
As organizations "bureaucratize", from the objective point of view of the word. If they get bigger, they integrate processes. Processes love measures and leaders often use indicators to evaluate process performance. What typically begins as the measurement of some processes, to reinforce the objectives and strategic plans, becomes an endless number of unnecessary calculations and processes. It becomes the person in charge of innovation, a 2 data collector », rather than a creator and promoter (See innovation audit).
2. What is to be measured is not measured
Typically, when organizations measure innovation, they measure results. Market share, starting point of benefits, number of new products introduced, number of patents, are common measures. It is understandable. Companies measure results.
However, what is also essential and is often lost are the elements of the process, what we call the path of innovation. For example, changes in the ideas we develop, the quality of our relationships with inventors, partners, or suppliers, the impact on our customers of innovation efforts, are just a few measures that help an organization understand the process that encourage innovation.
3. The fruit is measured and the tree is ignored
Like a fruit tree, what needs to be cultivated and cared for is what nourishes the roots, what needs to be observed is the environment that supports the tree. For a company, the roots are its leaders, its people, its teams and work groups, and the processes that guide its actions. The environment is the culture, the energy, the written and unwritten rules that guide the organization. Focusing on fruits without caring for the tree is dangerous if you want continuous innovation.
4. What is measured offers only part of the story
Organizations usually do surveys to get general impressions. For example, survey comments may suggest an overview of all departments, and is generally effective in supporting innovation projects. The leaders could move on to another topic, and the feeling is that each of the departments is doing well. But many times the details are unknown, the intangible.
Similarly, an overall rating of 3, on a scale of 1-5, may show that people may not pay attention in one way or another, but at a deeper level of analysis, two groups with very different opinions can be observed. polar. The key is to reach a level of information that allows you to understand the real issues, and be able to solve the real problem.
5. Indicators lose validity
Companies maintain indicators for long periods of time, without risking starting a measurement from scratch. The situation of the organization may have changed so much that certain indicators are not valid.
Like spring cleaning, there should be a periodic review per year of current indicators and see if they are still relevant. If they are not, they must be removed.
conclusion
In summary, some key points; First of all, what you measure is what you get. Carefully analyze what you want to measure, based on what the organization needs. Time and resources will be invested in this measurement.
Avoid focusing only on results. In the innovation process, it is important to feed "the way", "the roots", before judging by short-term results.
Finally, go to the bibliography. It is important to know, based on the available knowledge, what factors determine the success of the innovation and how to develop solutions.
To continue innovating
