Metrics Simple definition: Metrics are a set of measurements that quantify results. Metrics are used to establish benchmarks, make comparisons, and evaluate performance. For our purposes: Metrics quantify innovation unit performance, project team performance, financial performance of products, and evaluate success of product performance against organizational goals. Source: Management section of About.com. Available from generalmanagement/g/metrics.htm.

Metrics 1.Process Metrics - Measured against expected performance with the formal innovation process 2.Project Metrics – Measured against expectations of innovation project teams 3.Business/Financial Metrics – Measured against the expectations of the business unit in supporting innovation and new product development 4.Decision Metrics – Measured against the strategic plan and goals of the organization (Cooper, 2011; Crawford and DiBenedetto, 2010)

Metrics Type of Performance Metric & Benchmarks Example of Metrics Measurement Plan & Reported By Process Metrics Number of ideas generated Number of ideation events Average days to complete each Phase Number of ideas killed by Phase Number of projects approved to move to Phase 3 Process Manager Quarterly Report on Phases and Gates Meetings. Others? Reported by Process Manager Project Metrics VOC research / Customer visits conducted /qualitative and quantitative data Quality and completeness of project plan Project plan accuracy in comparison to final scope, budget, schedule Quality of Deliverables Forecasts in Comparison to actual data Accuracy and completeness of market data/research Average days to complete a project Was the product/service launched on schedule Success of project in terms of percentage of target market captured by new product after 6 months and 12 months Total work hours to complete project. Total cost of resourcing project. Program Return Map with Breakeven Point Others? Reported by Project/ Program Managers Reported on project completion and annually

Metrics Type of Performance Metric & Benchmarks Example of Metrics Measurement Plan & Reported By Business /Financial Metrics Did we meet profit objectives – ROI, IRR, Breakeven Point for each product Did we meet sales goals – Number of units sold, market share for each product Percentage of annual revenue from new products/services Percentage of revenue from product/service improvements Cycle time Cost per unit to develop – Cost per unit to manufacture – Cost per unit to deliver to customer Market share acquired after 12 month Percent of repeat customers by product and/or service Percentage of sales coming from new products and services Reported quarterly by project manager and Innovation Officer Decision MetricsSuccess ratio of successes to failures Customer satisfaction metrics Employee satisfaction metrics Cost of innovation in relationship to revenue Percent of repeat customers by product and/or service Revenue verses forecasted sales and revenue Profitability ratings by product and service New product performance to budget Number of launches per year Number of successful products and services launched per year Three year performance indicators for Innovation Reported quarterly by Innovation Officer

Best vs Worst: (Edgett, 2011) Source: Performance Metric Results. Edgett et al (2011) as noted in: New Product Development: Process Benchmarks and Performance Metrics Report.

Benchmarking A measurement of the quality of an organization's policies, products, programs, strategies, etc., and their comparison with standard measurements, or similar measurements of its peers. The objectives of benchmarking include: – Analyzing how other organizations achieve high performance levels – Determining what and where improvements are needed Source: Business Dictionary. Available from