Wondering how to measure the success of your company's innovation efforts? Which performance metrics make sense in the innovation equation?
Many of the fastest-growing U.S. private companies may be able to assist you in answering those questions, according to a recent Trendsetter Barometer survey from PricewaterhouseCoopers.
Nearly half of the 355 private-company CEOs queried make an effort to link innovation to metrics. They measure the success of their innovation effort by its impact on overall revenue growth (78%), customer satisfaction (76%), growth in revenue from new products or services (74%), increased productivity (71%) and earnings/profit margins (68%). Much smaller percentages examine its impact on recruitment and retention (34%) and market capitalization (17%).
"Companies are using multiple measures to track success," says Jay Mattie, PricewaterhouseCoopers' U.S. Private Company Services Assurance Services leader. "This practice enables cross-analysis as well as period-to-period comparisons."