Overview: Few companies and organizations remain innovative for long periods of time, and despite high ambitions, many innovation initiatives fail to yield the desired results. Identifying how best to measure the effectiveness of innovation initiatives is key to ensuring that those efforts actually help an organization achieve its overall goals. This article offers organizations and their leaders practical advice for measuring innovation effectively. Specifically, it defines innovation measurement and its importance in precise terms and summarizes six years of our research on innovation measurement in multiple firms and industries. We articulate nine critical lessons for improving innovation measurement in real-world practice clustered into three overarching themes: Strategy, Organization, and Measurement Design. Each of the nine lessons elucidates a problem, identifies potential consequences, and proposes concrete solutions that organizations can implement as they strive to better measure and, ultimately, improve their innovation management initiatives.
QC 20230329