CPI Innovation Metrics & Performance Measurement Flashcards

Which framework categorizes innovation projects by horizon to help allocate measurement resources?

Answer: McKinsey Three Horizons

McKinsey's Three Horizons framework separates core, emerging, and transformational innovation so teams can apply appropriate metrics to each horizon.

What is 'innovation batting average' used to measure?

Answer: The ratio of successful launches to total innovation attempts

Innovation batting average is a metaphor for the success rate — how many innovation attempts result in commercially viable outcomes.

Which leading indicator best predicts future innovation output in a US firm?

Answer: Number of cross-functional collaboration sessions

Cross-functional collaboration frequency is a leading indicator because diverse team interaction drives idea generation and problem-solving before results appear.

A CPI professional wants to benchmark their innovation performance against industry peers. Which data source is most appropriate?

Answer: Industry innovation benchmarking reports (e.g., Booz/PwC Global Innovation 1000)

Published benchmarking studies like the PwC Global Innovation 1000 provide normalized industry data for comparing R&D investment and output across companies.

What does a 'discovery-driven planning' approach add to traditional innovation measurement?

Answer: It replaces financial forecasts with assumption tracking and milestone-based learning

Discovery-driven planning treats key assumptions as checkpoints, measuring whether assumptions prove true rather than tracking fixed forecasts.

Which metric measures the degree to which an organization's innovation output aligns with its stated strategy?

Answer: Strategic alignment index

A strategic alignment index scores whether active innovation projects map to defined strategic priorities, ensuring resources support the right goals.