Assessing innovation metrics
survey on innovation metrics
McKinsey Global Survey Results
Sixteen percent o the respondents say that their companies don’t use any metrics toassess innovations. Among those that do, most are satised overall, though the ndingssuggest they aren’t eectively using these metrics as well as they could. Most notably,companies are much likelier to rely on metrics or outputs than or inputs, so they aren’tassessing the whole process o innovation. Forty-ve percent don’t track the relation-ship between spending on innovation and shareholder value. Further, although manycompanies are satised with their use o innovation metrics in general, ar ewer aresatised with specic uses, such as aligning individual perormance incentives.
What gets measured and why
Innovation is a high strategic priority or most companies (Exhibit 1). However, thissurvey shows slightly ewer senior executives either selecting it as the top priorityor placing it among the top three than those who responded to a similar question
65 percent now, compared with 70 percent in 2007. This drop may refectthe act that the latest survey was in the eld ater the credit crunch and stock marketturmoil had begun to reorder many companies’ priorities.
A strategic priority
% of respondents,
n = 1,075
How important is innovation in products, services, processes, orbusiness models on your organization’s strategic agenda?
Respondents who answered “don’t know” are not shown.
The top priority142912169Among the top 3priorities5143495452Among the top 10priorities3024332535Not a priority54563
In September 2007, a McKinsey Global Survey asked, “Over the next three to ve years, how important will innovation asa major driver o growth be on your leadership team’s agenda?” See “How companies approach innovation: A McKinseyGlobal Survey,” mckinseyquarterly.com, October 2007.