I have got not a lot of experience on metrics, I just believe they are extremely important if not fundamental to the growth of any organization. I’ve recently been studying a bit the matter and then came across quite an interesting book I’d like to share with you. It proposes a dynamic approach to performance measurement, referred as “socialization of measurements”. This is claimed to be a breakthrough in the field.

Here you go the details, then:
Transforming Performance Measurement: Rethinking the Way We Measure and Drive Organizational Success.
By Dean R. Spitzer

Regards,
Floriano Bonfigli.

In my experience, J&J has it right. The first focus on metrics needs to be about building skills, excitement and activities around innovation. The second focus as the innovation program matures should be on activities and the pipeline. Finally, as ideas come to fruition as new products and services, the metrics need to be about return, share or differentiation.

The challenge is that most firms are comfortable measuring the ROI only (quantifiable) and are impatient to measure those things. They start measuring quantifiable things when there’s really not much to measure and ignore the qualitative concepts. Then they are upset when there’s no measurable output.

It takes time – often years – for a good idea to be realized as a new product or service. If the innovation program is new, ROI may not be realized for a year or more in many industries, so measure the excitement, activities and engagement until the ideas can develop.