9 KPIs That Capture Innovation Performance
The 9 KPIs that we focus on measure "overall performance," above and across the details of individual investments and cost centers. These 9 KPIs are all strong candidates for innovation leader and manager dashboards. These 9 KPIs positively facilitate, and then come close to capturing, the business and financial performance of investments in R&D and product development.
With these 9 KPIs, you'll have a pretty good handle on your corporate innovation performance. For those metrics that you recognize from the list below, we will likely expand your knowledge of the metric and its benefits and drawbacks. For those metrics you do not recognize, we hope to introduce you to some useful performance indicators you may not yet be aware of.
The 9 KPIs
The 9 KPIs Quiz
Which 2 KPIs were New-To-The-World in 2015?
Which 2 KPIs were New-To-The-World in 2012?
Which 2 KPIs are the fastest KPIs to penetrate industry in the past five decades?
Which KPI is New-To-The-World and uses R&D Spending % to predict innovation performance?
Which KPI ties your research and advanced development expenditures to your revenues and profits?
Which KPI was recently made public for all to use by a large international high-tech company?
Which KPI is currently the de-facto standard for assessing absolute levels of innovation?
Which KPI has the highest correlation with corporation value and shareholder return?
This is an exciting time for KPIs. We'll give a brief mention of the tussle that is building between the accounting profession, the SEC, and the folks responsible for corporate annual reporting regarding your favorite KPIs.
Further Insight Into "9 KPIs That Capture Innovation Performance"
The number of metrics used across industries to measure R&D and product development number more than one thousand. There are metrics for projects, products, processes, technologies, functional and technical disciplines, degrees of innovation, and a dozen other R&D and product development innovation subjects. Then, industries and companies have their own adaptations of these seemingly common metrics.
KPIs At The Top
Our interest for this webinar is the sub-set of metrics, unique unto themselves, that only apply above and across all the activities within the organization. Their purpose is both to facilitate and to capture corporate performance across all activities and organizations. Many executives refer to this group as the "KPIs." There can be corporate-level KPIs that emanate from, or are held at, lower levels in the organization. But, most KPIs originate at the top.
KPIs Are A Hot Topic
Currently there is a fairly large tussle going on between the accounting profession, the SEC, and public corporations regarding Non-GAAP KPIs. CEOs and CFOs are displaying metrics such as "% New Product Sales" and "Return On Innovation" before they display required reporting metrics in their 10K and Annual Report, and related footnotes. Companies are also showing both GAAP metrics and then adjusted GAAP metrics that suit their needs. The SEC is arguing this selective placement and/or adjustment practice is misleading analysts and investors and obscuring the ability to get a clear picture of corporate performance.
Yet, these non-GAAP KPIs are the ones that most seasoned investors and analysts look at the hardest these days. Why? Because knowledge of GAAP performance is assumed by everyone. To get competitive advantage, one must look deeper and beyond. With the exception of the CEO and CFO, these Non-GAAP KPIs are also the KPIs that the rest of management across the company spends most of their time looking at and discussing in meetings.
Just 1 of the 9 KPIs we will discuss at this Webinar is a GAAP KPI, 8 are Non-GAAP KPIs.
It is a pretty exciting time right now if you contribute to what goes into the annual report and where the information will be placed. It is also exciting if you are responsible for the organizations and departments that have to produce the results captured by new KPIs that CEOs and CFOs have decided to include in the 10K and Annual Report.
Not The First Rodeo
GGI has been a pioneer of improved metrics and KPIs for product development organizations and technologies dating back to the 1980s, what we now refer to as "innovation." GGI has systematically researched industry usage of these metrics for years. As well, we've contributed to industry adoption of some great metrics such as the Vitality Index and ROInnovation, the two fastest penetrating metrics of the past five decades.
Bradford L. Goldense, President, GGI
Brad Goldense has been focusing on the strategies, tactics, and operations of product management, development, and manufacturing since the 1980s. He has authored over 300 publications and consulted to over 200 companies across the world. Some 500 companies have participated in his seminars and masterclasses. Mr. Goldense holds a BSCE from Brown University and an MBA from Cornell University; along with professional accreditations in new product development, engineering, manufacturing engineering, production and inventory management, and computing. Brad taught in the Executive Masters in Engineering Management program at the Gordon Institute of Tufts University for nineteen years. He has appeared on World Business Review, CNBC, and PBS.
Thursday, August 23, 2018 - 2:00 PM Eastern Time
Registration Is Open
Enhance your ability to truly capture overall innovation performance.