Innovation Performance Measurement

Measuring innovation performance effectively requires a comprehensive approach that captures both organizational impact and individual contributor behaviors and achievements while generating actionable insights for continuous improvement. This chapter presents a thorough framework for quantifying innovation performance across various dimensions, including culture, public perception, outputs, and outcomes. Central to this framework is the innovation funnel concept, which tracks the conversion of ideas into opportunities and then into in-market artifacts using well-defined conversion metrics that support strategic decision-making and can identify bottlenecks in the innovation pipeline. The chapter begins with a macro view, examining corporate-level innovation performance through data points regarding the supply of ideas, opportunity realization scores, market impact, and strategic alignment. It then shifts to a micro view, measuring individual contributions and behaviors. It details how to obtain a holistic view of innovation performance across the organization that enable leaders to visualize and track key metrics at both organizational and individual levels. The chapter concludes by describing how the innovation insights system aggregates performance data, generates actionable intelligence, and distributes insights across the organization to inform future innovation strategies, resource allocation decisions, and capability development priorities, ensuring that measurement efforts translate into continuous improvement and enhanced innovation outcomes.