Choose Wisely your innovation KPIs (hint: we help you)

KPI

So important for your activity, to track its performances and weaknesses, your KPIs must be wisely chosen to serve your strategy and objectives.

Let’s start at the beginning (it is much better).

What kind of KPI?

  • composite KPIs ==> helps to track complex activities within your company and aggregate different indicators to evaluate their performance
  • Measuring KPI ==> quants KPIs helping to follow the activities and performances of your company
  • Quality KPIs ==> Specific KPI to measure Quality, Clients satisfaction, emotions etc…

Choose them wisely

An error when casting your KPIs can have tremendous impact on your activity. here are some steps to help you find the right one for you.

  1. Set the Direction: Define clearly your objectives and strategy
    Yes, your employees and your company deserve clear objectives and strategy. It will definitely help later to chose the right one if you know where, when and how you want to drive your company.
  2. Chose your vessels: Define the tactic
    Lots of people misunderstood Strategy vs tactic. Tactic is how you get where your strategy is aiming you. Each tactic plan has a given objective (gaining clients, selling more, increase the revenue per client, developing more cutting edge technology, Patenting more etc…). It should give access to a quantified results and participate to the company strategy.
  3. Do it! Elaborate your action plan
    Your action plan is your daily reference document. It contains all actions and activities necessary to achieve your goals. Each line should have a given KPIs helping you to drive your actions and evaluate their results.
  4. Drive: Follow and adapt
    Build, Test, Learn, the magic words.
    Follow your performances, line by line, set targets and thresholds and even more important, learn why your actions have the given results, get feedback from customers or clients, and adapt your tactics. Your clients are not reacting the way you thought, learn why and adapt your actions. That’s the only way to be successful.

KPIs and Innovation

Oh yes, I couldn’t finish this article without having a word on Innovation. There are good KPIs for innovation. Depending of your targets, objectives, strategy and tactics of course. But there are bads any way, whatever you like to achieve. Here they are:

  • Number of patents…. So easy to write a patent. Is the company needing it?  Is there a market out there?  If yes, does the investment worth the sales? Answer those question (and some others incl do the owner get money when filing up?) to be sure patents are necessary but anyway it is so easily deviated…
  • Number of ideas per employees. First my personal opinion is that suggestion or idea boxes are killing innovation and collaborative innovation. Don’t start an idea box to innovate. Start it for continuous improvement, for employee engagements whatever you want but you will never innovate with an idea box. especially with a quantified « per employee » number of ideas. It kills the dynamic (if you managed to have one), overflow the process… If you had the chance to have one good idea, now you are sure to miss it.

Tell me if you have some more deadly KPIs for Innovation in the comments.

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