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How to Measure “Innovation” - Balanced Scorecard Institute

How to Measure Innovation . By Mark Malinoski Senior Associate And Gail S. Perry Co-Author of The Institute Way Performance measures provide information to monitor strategy execution. But some things are inherently easier to Measure than others. For example, an objective such as Improve Revenue is fairly easy to Measure . But other strategic objectives, especially those in the Internal Business Process and Learning & Growth programs. And the intended results of this perspectives have been historically more difficult objective are: to Measure . 1. Increased number of new ideas One seemingly difficult-to- Measure objective is 2. Improved quality of ideas Innovation . We typically see innovation 3. More efficient implementation of quality strategic objective in the Internal Process ideas perspective on the organization-wide strategy 4.

• Can the measure be used as a drill-down measure from Tier 1 to Tier 2? • Can we establish meaningful targets (and thresholds) for this measure? After a measure is selected, further data definition work will need to be performed and sometimes an organization gets “stuck” when attempting to define targets and thresholds for a measure.

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