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The KPI Compass - How to think about measuring Innovation Programs

A talk about Innovation metrics I gave to the Oregon SAIF Corporation. I outline a novel framework for thinking about innovation metrics across the entire lifecycle of a project. Bonus material for measuring innovation organizations.

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The KPI Compass - How to think about measuring Innovation Programs

  1. 1. The KPI Compass [How to think about measuring Innovation Programs]
  2. 2. Hey, I’m Shashi • 20 years @ Intel • associate Entrepreneur in Residence • Strategic Innovation Manager • Global Education Director, TiE Young Entrepreneurs Feel free to pics/share | @skjain2 @2019 Shashi Jain All Rights Reserved
  3. 3. Innovation is the ability to convert ideas into invoices. Lewis Duncan
  4. 4. Definitions @2019 Shashi Jain All Rights Reserved Metric – a tactical measure of a program (i.e. press mentions, downloads) KPI – a strategic measure of a program related to success in achieving business goals (i.e. market segment share) KPIs and Metrics are both measurable and quantifiable. Metrics support KPIs and KPIs provide a context of values by which metrics are measured.
  5. 5. Why Do Innovation Programs & Projects Die? • Lack of Money • Lack of Time / Runway • Lack of Resources / People • High hurdles • Others?
  6. 6. Why Do Innovation Programs / Projects Die? • Lack of Money • Lack of Time / Runway • Lack of Resources / People • High hurdles • Others? • Bad KPIs • Even worse Metrics
  7. 7. It’s easy to lose your way with poor Innovation KPIs & Metrics @2019 Shashi Jain All Rights Reserved
  8. 8. A Framework for Metrics @2019 Shashi Jain All Rights Reserved
  9. 9. A Sampling of Bad Metrics @2019 Shashi Jain All Rights Reserved ROI of research Revenue per student Measuring innovation against existing business model Number of stages completed ** Articles published ** Mentions by CEO onstage ** Social media impressions ** Speed to initial funding ** Net Promoter Score (NPS) Opportunity to invoice
  10. 10. Two Kinds of Metrics @2019 Shashi Jain All Rights Reserved • Easy to measure • Hard to Influence • Focused on Outputs • Hard to measure • Easy to Influence • Focused on Inputs
  11. 11. @2019 Shashi Jain All Rights Reserved ROI of research Revenue per student Measuring innovation against existing business model Number of stages completed ** Articles published ** Mentions by CEO onstage ** Social media impressions ** Speed to initial funding ** Net Promoter Score (NPS) Opportunity to invoice
  12. 12. @2019 Shashi Jain All Rights Reserved • Focus on Influence • Early • Values-first • Focus on Business Results • Scale • Project-dependent
  13. 13. @2019 Shashi Jain All Rights Reserved ROI of research Revenue per student Measuring innovation against existing business model Number of stages completed ** Articles published ** Mentions by CEO onstage ** Social media impressions ** Speed to initial funding ** Net Promoter Score (NPS) Opportunity to invoice
  14. 14. The KPI Compass @2019 Shashi Jain All Rights Reserved
  15. 15. @2019 Shashi Jain All Rights Reserved
  16. 16. Example: Losing Weight @2019 Shashi Jain All Rights Reserved -20lbs
  17. 17. Example: Losing Weight @2019 Shashi Jain All Rights Reserved -20lbs #IG posts #articles read
  18. 18. Example: Losing Weight @2019 Shashi Jain All Rights Reserved -20lbs #IG posts #articles read Who? What? How?
  19. 19. Example: Losing Weight @2019 Shashi Jain All Rights Reserved -20lbs #IG posts #articles read #Steps #Calories #PromisesKept
  20. 20. @2019 Shashi Jain All Rights Reserved Outputs Inputs Impactful Actions Sustaining
  21. 21. Quadrants Map to Project Lifecycle @2019 Shashi Jain All Rights Reserved On transitions, emphasize new metrics Clearly define the meaning of IMPACT TL can lead to IMPACTStart by measuring your action, but later measure customer action
  22. 22. @2019 Shashi Jain All Rights Reserved Projects that struggled to take off skipped the upper left quadrant entirely When you demand impact metrics too early, people revert to “what works.”
  23. 23. @2019 Shashi Jain All Rights Reserved To traverse the No Man’s Land measure customer action, rather than yours. IMPACT criteria must be clearly defined up front. It may be different than ”normal.”
  24. 24. Putting KPI Compass into Action 1. Creative conversation about what Impact means. 2. Lay out metrics that matter in all four quadrants. Source from OKRs. 3. Traversing the no-man’s land with your stakeholders. Find action- based metrics that lead to Impact. 4. Define KPIs based on metrics from all four quadrants. @2019 Shashi Jain All Rights Reserved
  25. 25. Don’t get lost when charting a new path. Carry a compass. @2019 Shashi Jain All Rights Reserved Contact: @skjain2
  26. 26. Backup @2019 Shashi Jain All Rights Reserved
  27. 27. Starting Emerging Advanced Measures Process Outlined process with executive buy-in and investment allocations Recurring process and selected follow-on investments Repeated success of ideas to companies and overall process iteration Seniority level of support Yield from stage Regular modifications to program People Outline of program (time allocations, team formation…) Steady flow of new applicants, clear skills development Acceleration of participants in/out of the program, high degree of skills training, rapid alignment of cross- functional teams and resources Overall applicants, moving to full time Skills training and mastery Ideas Central place for idea capture Structured ideas coming from many areas of the company, evolved decision gates Clear progression of ideas into formal “companies” with teams and success or joint projects with partners. Volume, quality and yield of ideas % of ideas from different groups Customer development Can identify key customer segments, end users. Can build personas Performs formal interviews with customers, users. Formal programs for engagement with top customers Ongoing engagement in development and ideation process Validation cycle time Engagement level of “customer council” Product development Outline of resources and approach for development Rapidly forming teams, regular shipping of prototypes Rapid prototyping for new ideas, methodical production shipping for mature ideas Sprint success Achievement of goals Decision Making Clear ownership of decision and discussion of tradeoffs. Defined process with buy-in from stakeholders; decision making is faster than “normal” Culture of decision quality embedded; data-driven decisions made quickly. Speed of decision making Quality- how often choose right course? Yield- does execution match effort Community Engagement (to affect ideas) Identified external resources Selected engagement of external mentors or experts Formal and programmatic inclusion of community with ideas and teams Mentors/partners engaged Quality and frequency of engagement (survey) Community Engagement (company engagement in local communities) Identify local groups. Sponsorship and cross-pollination of people. Bi-directional engagement with key community groups to share ideas and best practices # of events and level of engagement Cross-pollination of people External marketing Identify internal channels/build relationships Infrequent mentions Internal and external comms alignment Regular mentions Inbound PR interest Frequent high-value mentions Mentions (internal and external) Mentions in high-value outlets Corporate Innovation Program Metrics ©2019 Shashi Jain Infrastructure People Community @2019 Shashi Jain All Rights Reserved

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