McKinsey's Assessing Innovation Metrics Global Survey Results

Some interesting stats from this McKinsey survey (Assessing innovation metrics: McKinsey Global Survey Results) that deserve to be highlighted:

1. 65 percent rank innovation in their top 3 strategic initiatives in 2008 compared to 70 percent in 2007.
2. 16% of the respondents say that their companies don’t use any metrics to assess innovations.
3. Companies are much likelier to rely on metrics for outputs than for inputs.
4. Respondents say that their companies use about eight metrics, on average, to assess innovations.

Successful innovators take more of a portfolio approach and use metrics to help create a balanced portfolio.

So What?

From the H2FL perspective the relatively sparse use of metrics is interesting as it suggests a palette of 8 metrics can be sufficient to gain the necessary feedback and control across a portfolio of projects.

In my experience the portfolio concept much loved of VC’s is still not appreciated outside of some large corporates. I think there is more work we need to do to sell the idea of a balanced portfolio aligned with an innovation strategy and the metrics necessary to shape and monitor it. I’ll add that to the list for How To Farm Lightning: sustainable innovation 2009!