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In the business marketplace, products and services are measured by the value add they bring to an organizations’ customers and the contribution towards meeting a business objective. Therefore, to measure innovation, we must look at activities and workflows that support and fuel the Innovation. It is this active component of innovation or creative processes that will be measured and quantified. Innovation, by definition, will involve components of action!

Taking a lesson from Project Management, when we take the time to break down the measurable action-steps and timelines for our organization to achieve a goal, we begin to realize the Return on Investment of Action (ROI-A) from our efforts and can begin to map out the most fruitful pathway for future endeavors, or innovation. Without a defined course of action with measurable performance objectives we are aimlessly engaging in endeavors with little or short-lived value.  The realization is that Innovation can be measured!

Using a Merger & Acquisitions as an example, an established corporation will likely rely upon most of its operational departments to facilitate and manage defined aspects of the acquisition.  Measurable activities with a defined timeline that will contribute to the overall innovation “to expand the business market share or offering a new service/product” are developed.  By defining the tasks necessary to accomplish the goal or innovation, metrics are applied to the process.

What actionable steps will lead you, your department and your organization to the desired innovative achievement?  By defining the actionable activities involved to reach a destination, measures are identified that can be assessed and monitored repeatedly for valuing achievement.   The Return of Investment of Action, by definition, is the profit (monetary or other) gained or lost on an innovation relative to the amount of time and personnel invested in achieving the activity.

Photo credits:  Mashvisor.com