Metrics: Measure your productivity
Most executives believe that innovation will enable their company to stand out in the marketplace, especially in this economy. Yet, executives do not develop the strategies and execute the follow through necessary to create their innovation environment.
How do you measure that innovation has been optimized? Especially for use as a performance assessment tool? It is not as simple as the perecentage of sales from products introduced within the last five years. Each industry has its on uptake pattern for new products and each category of product has its own lifecycle.
Decisions on product development to proceed to market is based on getting the right information to the right persons at the right time. Optimum information flow requires open communication. One or two key metrics will provide focus, and other metrics help to define other areas that need help.
Using sports as an analogy, the final score of the game is what really matters as the focal point to measure performance, whereas other metrics can be used to illuminate areas needing improvement. In other situations, the obvious problems will arise without the use of metrics.
Clearly,innovation must be driven from the top executive on down throughout the organization. Where do you start? Start in a small part of the organization, assess, fine tune, and modify to optimize for the whole organization.
Leadership and management are often confused and used interchangeably by many executives. Both involve such an overlap of activities in many situations. Leadership is viewed as the soft stuff needed to build and maintain teams and to motivate everyone to follow the strategic plan, the outcome of management activity. From my experience leadership and management represents a continuum of actions and thinking that are interfaced and interactive. Without a strategic plan to follow and people motivated to follow it, an innovation environment will flounder and stagnate.
Leadership is often not about the leader but about those surrounding the leader.
Many technical environments are traditionally heirarchical in nature, so in many R&D organizations leadership styles are often the outcome of lord-serf relationships. This situation is an archetype of the academic environment from which so many technical professionals emanate. This leadership style fits well within the heirarchical corporate culture, yet how does one adapt their style to other types of cultures, namely, the market, clan, and adhocracy cultures.
What more natural a subject to first talk about than leadership, both personal and organizational. Everything flows from the top; this is true for our own lives and for the life of an organization.