Innovation Excellence

NOVEMBER 21, 2019

Far too many supposed innovation experts believe that measuring activities is critical to success. Innovation activities simply for the sake of doing something without context and insight from the measure may be in fact very misleading. Persistent growth, profit, ROI and NPV are the obvious measures, Maybe not so much.

NPV 99

NPV Innovation Metrics ROI 99

Harvard Business Review

APRIL 19, 2011

a Boston-based innovation management collaborative. We often ask executives to tell us about their biggest innovation failures. The CEO and CFO responded with, "A failure to hit ROI and NPV targets." The head of R&D remembered it as a failure to properly market the innovation. Simple answers don't count.

NPV 18

NPV ROI CFO Consensus 18

Harvard Business Review

AUGUST 4, 2014

Instead of focusing on innovation, as he did during his first tour as CEO of the world’s largest consumer packaged goods firm, Lafley is now innovating on focus. represent an innovation repudiation of Lafley 1.0? . represent an innovation repudiation of Lafley 1.0? innovation.

Brand 9

Brand DCF IRR NPV 9

Harvard Business Review

JANUARY 21, 2016

This is especially true in the commercial buildings market, specifically large commercial buildings, where well over 75 percent of existing buildings will still be in use in fifteen years’ time. Today large commercial buildings address only two percent per year of the NPV-positive investments in efficiency that are available to them.

NPV 8

NPV Energy Efficiency Technology 8

Strategy Driven

SEPTEMBER 9, 2011

Many people do not typically think of metrics and accounting as roadblocks to innovation, yet you call these out as potential problem areas. Net present value [NPV] is a case in point. The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital.

Innovation 50

Innovation NPV Business Model Constraint 50