The average organisation uses 8 separate metrics to measure innovation

McKinsey Quarterly October 2008

Many organizations struggle to define what innovation means, let alone measure it. A recent study by the consulting firm McKinsey found that the average organization uses eight separate metrics to measure innovation. This includes measures such as the number of new products launched, the percentage of revenue from new products, and the number of patents filed. While these metrics can be helpful in gauging an organization's overall innovation performance, they often fail to capture the more intangible benefits of innovation, such as improved customer satisfaction or increased employee engagement. As a result, many organizations are now turning to more qualitative measures, such as surveys and focus groups, to get a better understanding of the impact of their innovation efforts.