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# Innovation KPIs: Six Categories to Measure Success S14 Ep5
- URL: https://www.philmckinney.com/innovation-kpis-six-categories-to-measure-success/
- Published: 2018-04-10T12:42:43.000Z
- Updated: 2026-04-01T14:08:24.000Z
- Author: Phil McKinney
- Tags: Past Shows, Studio Sessions, customer impact, financial impact, idea commercialization, idea funnel, Idea Management System, Innovation KPIs, Innovation success, KPI Building Blocks, KPIs, organizational impact, pure innovation KPIs, raw ideas, #wp, #wp-post, #Import 2026-03-26 05:08

Download [Innovation\_KPIs\_Six\_Categories\_to\_Measure\_Success\_S14\_Ep5.mp3](http://traffic.libsyn.com/philmckinney/Innovation%5FKPIs%5FSix%5FCategories%5Fto%5FMeasure%5FSuccess%5FS14%5FEp5.mp3?ref=philmckinney.com)

Today’s show addresses questions from listeners on innovation KPIs. I’m back in Colorado after clocking 12,000 miles in the [mobile Innovators Studio](https://www.facebook.com/TheInnovatorStudioLLC/). On the road, I talked with [interesting innovators](https://www.philmckinney.com/in-real-time-live-streaming-innovation/) and [analysts](https://www.philmckinney.com/innovation-standouts-ces-2018/). Taking a break from interviews, I’d like to answer your questions on measuring innovation success.

There are hundreds of Key Performance Indicators (KPIs) to [measure innovation success](http://philmckinney.com/6-ways-to-measure-innovation-success-that-every-company-should-put-in-place/?ref=philmckinney.com#more-7788). *What are the right innovation KPIs to use?* *What KPIs will give insight into the innovation process?* KPIs should be unique to your organization. Think through what KPIs will measure and how that can guide innovations and your organization.

## KPI Building Blocks

I’ve broken innovation KPIs into categories, like building blocks. Build up the blocks to get a complete perspective on your innovation effort.

Six categories for Innovation KPIs:

1. **Idea [process](http://philmckinney.com/5-steps-implementing-killer-innovation-process/?ref=philmckinney.com#more-15097)/managing the idea funnel**  
  - What’s done to get ideas, put them in a funnel, review, manage and analyze them?  
    - Raw ideas
    - Raw ideas validated
    - Ideas prototyped
    - Age of ideas
2. **Idea commercialization**  
  - Innovation idea brought to market.  
    - Innovations that became a product
    - Innovations that make a profit
    - Are early customers willing to pay a margin premium?
    - Innovations purchased
    - Are resources in organization aligning to make product a reality?
3. **[Financial impact](http://philmckinney.com/can-you-measure-the-impact-from-innovation/?ref=philmckinney.com#more-2994)**  
  - Tough to measure - long lag from time of investment to product launch in market  
    - Revenue from new innovations
    - Profit from innovations
    - Revenue protected by patents
    - Revenue from patent licensing
4. **Customer impact**  
  - Customer success compared from old product to new innovation

    - What has new product allowed customers to achieve?
    - How many customers have shifted to new?
    - Market share trend for innovation - grabbing from competitors?
5. **Organizational impact**  
  - New products/services have an impact
  - Can pull organization into [new category or focus](https://www.philmckinney.com/refocusing-innovation-future-s13-ep53/)  
    - Ratio of sales from old versus new - sales ramping up for new/declining for old?
    - Ratio of profit from old versus new
    - Investments – is investment shifting from old to new?
    - Rate of return on innovation investment
    - Has it driven *brand awareness*?
6. **Pure Innovation KPIs**  
  - Catch-all  
    - Staff trained for innovation
    - Use of formal [creativity tools](https://innovation.tools/?ref=philmckinney.com)
    - Implementation and use of Idea Management System
    - Structured problem-solving tools
    - Committed resources to innovation
    - Patents/year

\[callout\]

## Guidance

1. Pick three to five KPIs from each category that work for your organization.
2. Ensure you have the ability to measure them.
3. Validate KPIs *drive the right behavior* and *achieve the desired outcome*.
4. Test/adjust KPIs as needed.
5. Share with the community.

\[/callout\]

We’d love your feedback. What do you think about the five-minute focus in the last segment of today’s show?

Like what you hear? Leave us a comment or review where you listen to the show.

Check out the show notes on [Killerinnovations.com](https://killerinnovations.com/?ref=philmckinney.com). We post on Facebook, LinkedIn, Twitter. Follow us on your favorite social media site.