In this chapter, we outline the importance of getting KPI’s right to drive successful innovation. We reinforce the lab-based approach to the innovation required, using tests to prove or disprove hypotheses. We look at tests in more detail and run through some examples of tests to use to debunk or prove hypotheses. We break the suggested KPI’s down into Customer, Pipeline, Financial and Commercial.
- Innovation KPIs can act as a substantial enabler of Agile Innovation when structured, implemented and monitored properly. Our suggested areas for KPIs are the following.
- Customer metrics that help the Agile innovator develop a high-class set of product concepts in the first part of the funnel.
- Pipeline metrics that ensure robust, consistent and rapid decision-making is used to develop an efficient, impactful pipeline of product concepts.
- Commercial metrics that monitor the individual impact of products once on the shelf.
- Financial metrics that help the innovator and business understand the incremental impact of innovation on a category, division and company.
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