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Creating Better Innovation Measurement Practices

Richtnér, Anders; Brattström, Anna LU ; Frishammar, Johan; Björk, Jennie and Magnusson, Mats (2017) In MIT Sloan Management Review 59(1). p.45-53
Abstract
For most companies, innovation is a top managerial priority. Business executives look at successful innovators such as Apple and Google with envy, wishing their companies could be half as innovative. To boost and benchmark innovation, managers often use quantitative performance indicators, but they struggle with identifying the right metric. Yet, our research suggests that the key managerial challenge is not identifying metrics — there is no shortage of measures to choose from. Nor should the goal be to find the perfect metric, since that quest is often futile. Rather, the crux of effective innovation measurement is to understand the problem that measurement should solve for the organization and, based on that insight, to design and... (More)
For most companies, innovation is a top managerial priority. Business executives look at successful innovators such as Apple and Google with envy, wishing their companies could be half as innovative. To boost and benchmark innovation, managers often use quantitative performance indicators, but they struggle with identifying the right metric. Yet, our research suggests that the key managerial challenge is not identifying metrics — there is no shortage of measures to choose from. Nor should the goal be to find the perfect metric, since that quest is often futile. Rather, the crux of effective innovation measurement is to understand the problem that measurement should solve for the organization and, based on that insight, to design and implement a useful and usable innovation measurement framework appropriate to the organization’s needs. The aim of this article is to help managers ask the right questions about how to measure innovation and translate their insights into effective innovation measurement practices. We have developed a practical, step-by-step framework that helps managers identify whether their current innovation measurement practices need to change and, if so, how to go about measuring innovation more effectively. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
innovation process, metrics, performance assessment, problem solving
in
MIT Sloan Management Review
volume
59
issue
1
pages
9 pages
publisher
Massachusetts Institute of Technology
external identifiers
  • scopus:85047009787
ISSN
1532-9194
language
English
LU publication?
yes
id
9c866dcf-b08f-4312-9d7d-b56bba5d8c65
alternative location
http://sloanreview.mit.edu/article/creating-better-innovation-measurement-practices/
date added to LUP
2017-09-15 15:15:39
date last changed
2018-09-02 04:41:30
@article{9c866dcf-b08f-4312-9d7d-b56bba5d8c65,
  abstract     = {For most companies, innovation is a top managerial priority. Business executives look at successful innovators such as Apple and Google with envy, wishing their companies could be half as innovative. To boost and benchmark innovation, managers often use quantitative performance indicators, but they struggle with identifying the right metric. Yet, our research suggests that the key managerial challenge is not identifying metrics — there is no shortage of measures to choose from. Nor should the goal be to find the perfect metric, since that quest is often futile. Rather, the crux of effective innovation measurement is to understand the problem that measurement should solve for the organization and, based on that insight, to design and implement a useful and usable innovation measurement framework appropriate to the organization’s needs. The aim of this article is to help managers ask the right questions about how to measure innovation and translate their insights into effective innovation measurement practices. We have developed a practical, step-by-step framework that helps managers identify whether their current innovation measurement practices need to change and, if so, how to go about measuring innovation more effectively.},
  author       = {Richtnér, Anders and Brattström, Anna and Frishammar, Johan and Björk, Jennie and Magnusson, Mats},
  issn         = {1532-9194},
  keyword      = {innovation process,metrics,performance assessment,problem solving},
  language     = {eng},
  number       = {1},
  pages        = {45--53},
  publisher    = {Massachusetts Institute of Technology},
  series       = {MIT Sloan Management Review},
  title        = {Creating Better Innovation Measurement Practices},
  volume       = {59},
  year         = {2017},
}