The Innovation Measurement Trap
Measuring innovation can lead to unintended consequences. Here are eight ways to avoid the traps.
1. Measure innovation alternatives, not just the current program. When assessing the impact of an initiative, always ask, “compared to what?” Don’t fall into the trap of measuring only what the company is doing today. Rather, measure it against the next best alternative. For example, if you are using a ideation methodology like S.I.T., be sure to measure the effectiveness of using S.I.T. versus another ideation method. Understand why you are using one method over another by forecasting results from the alternative. This re-frames the question from “does this method work?” to “does this method work better than this alternative?”
2. Measure inputs, not just outputs. Companies are quick to judge innovation initiatives based on the yield of ideas. A better approach is to be mindful of what the company puts into innovation. Measure activity such as number of training sessions conducted, number of employees skilled at a methodology, and man hours used in innovation workshops. Benchmark these against competitors and other relevant companies to gauge whether you are investing enough.
3. Measure quality, not just quantity: People focus too much on quantitative measures because they’re easier to collect than qualitative ones. Quantitative data seems more objective. Simple measurements like “number of ideas generated” may seem valuable on the surface, but these can lead to the trap of “idea churning” just to hit big numbers. One way to avoid this trap is to assign a panel of independent reviewers to do a qualitative valuation of all ideas generated. Develop a standard rubric or use existing methods to evaluate the creativity of ideas on a qualitative basis.