This chapter proposed a systematic way to measure innovation performance and develop innovation capability, while stressing that organizations will need to find their own particular way of achieving better performance. A full set of measures for innovation performance were collected, based on the input-output model but the advantages and the limitations of using these measures were identified. To go further than traditional performance measurement, the innovation audit approach was described, which can be an appropriate way to gauge innovation capability. An innovation audit identifies the areas of the Pentathlon Framework in which an organization is strong and those in which it is weak and it also generates ideas for improvement. Once all these are known, the change equation is an important tool for identifying where resistance may be encountered and how this can be overcome in a positive way. This chapter’s main case study describes Corning’s moves to build its innovation capability.
Interview with Magnus Schoeman
Select and use performance measures to understand and help communicate the innovation performance of your organization.
Use an innovation audit to determine the strengths and weaknesses of your organization in innovation management. Determine the priorities.
Develop an action plan to improve performance at both the project and organizational levels. Reserve enough top management time to take an active part in leading the implementation.
Use change management techniques to gain acceptance for your plan.
Be aware that there is no ‘silver bullet’ for building innovation capability and it is management’s responsibility to explore the best ways of achieving it in their own organizations.