The value of innovation : knowing, proving, and showing the value of innovation and creativity : a step by step guide to impact and ROI measurement

著者

• Phillips, Jack J.
• Phillips, Patricia Pulliam

書誌事項

The value of innovation : knowing, proving, and showing the value of innovation and creativity : a step by step guide to impact and ROI measurement

Jack J. Phillips and Patricia Pulliam Phillips

Scrivener Publishing , Wiley, 2018

注記

Includes bibliographical references (p. 343-350) and index

内容説明・目次

内容説明

Innovation is the life blood of practically every organization. Innovation drives growth, development, and prosperity for many organizations and geographical areas. Sometimes, innovation thrives within a certain geographical location or in certain organizations that are known for their innovative approaches. This outstanding new volume will demonstrate how to measure the success of innovation in all types of organizations. In the last decade, there have been tremendous investments in creativity and innovations sponsored by companies, cities, states, countries, universities, NGO's, and even non-profits. With the magnitude of emphasis on creativity and innovation, the sponsors and key stakeholders will demand to know the value of these programs. The Value of Innovation: Measuring the Impact and ROI in Creativity and Innovation Programs will show step-by-step how to measure the impact and the ROI of innovation and creativity programs. The process collects six types of data: reaction, learning, application, impact, ROI, and intangibles. Data are collected analyzed and reported using a systematic, logic model. Conservative standards create results that are both CEO and CFO friendly. This proven process has been used now in 5000 organizations and this new book adapts the method directly to this critical area of innovation, showing examples and case studies.

目次

Preface xix Acknowledgements xxiii About the Authors xxv 1 The Importance and Challenges of Innovation 1 Innovation Hype 2 Articles 2 Books 2 Jobs 3 Speeches 3 Experience 3 The Realities of Innovation 4 Innovation is Not New 4 Innovation is Necessary for Survival 5 Innovation is Equated with Success 5 Innovation is Truly Global 6 Consumers and Investors Expect Innovation 6 Innovation is Often Disruptive 6 Innovation is Not a Single Event 7 Little Ideas Often Make a Big Difference 7 Innovation Comes in Many Types and Forms 8 Innovation Spans Many Different Horizons 8 Trouble in Paradise: The Misconceptions 9 Misconception 1: Small Companies are More Innovative 10 Misconception 2: Uncontested Markets are Good for Innovation 10 Misconception 3: Spending More on R&D Increases Innovation 10 Misconception 4: Companies Need More Radical Innovation 10 Misconception 5: Open Innovation Turbocharges R&D 11 Misconception 6: R&D Needs to be More Relevant 11 Misconception 7: Wall Street Rewards Innovation 11 Innovation Challenges 12 Innovation is Expensive 12 Managing Innovation is Difficult 13 An Innovation Culture is Necessary for Success 13 Innovation Requires Many Personas 14 Innovation Success Rates Need to Improve 16 The Value of Innovation is Unclear 16 Final Thoughts 17 2 Status and Concerns about Innovation Measurement 19 Innovation: Definition, Models, and Measures 20 Sources of Innovation 21 Measurement Shifts 23 Measurement Shifts are Common 23 Value Perception. 24 The Search for Money 24 Hoping, Knowing, Proving, and Showing Value 25 Innovation is Systematic 25 Macro View of Measurement 27 Industry Level Measures 29 Company Level 30 Concerns about Company Level Measures 30 Micro View of Measurement 32 Final Thoughts 34 3 The Case for a New System 35 Innovation: A Cost or an Investment? 36 The Value of Innovation: A Summary 38 Intangibles and the Fear of not Investing 38 Relationship Between Variables 39 ROI Studies 41 Types of Data 41 Inputs 41 Reaction and Planned Action 42 Learning 43 Application and Implementation 43 Impact 44 Return on Investment 44 How Does Your Current System Stack Up? 45 Focus of Use 45 Standards 47 Contents vii Types of Data 47 Dynamic Adjustments 47 Connectivity 48 Approach 48 Conservative Nature 48 Simplicity 48 Theoretical Foundation 49 Acceptance 49 Using Design Thinking to Deliver and Measure Results 49 Start with Why: Aligning Projects with the Business 50 Make it Feasible: Selecting the Right Solution 51 Expect Success: Designing for Results 52 Make it Matter: Designing for Input, Reaction, and Learning 52 Make it Stick: Designing for Application and Impact 53 Make it Credible: Measuring Results and Calculating ROI 53 Tell the Story. Communicating Results to Key Stakeholders 54 Optimize the Results: Using Black Box Thinking to Increase Funding 54 Requirements for the Value of Innovation: A Measurement Process 55 ROI Measurement Methodology 56 Terminology: Projects, Solutions, Participants . . . 57 Final Thoughts 57 4 Introducing the ROI Methodology 59 The ROI Methodology 60 Types of Data 60 The Initial Analysis 63 The ROI Process Model 65 Planning the Evaluation 66 Evaluation Purpose 66 Feasibility 67 Data Collection Plan 68 ROI Analysis Plan 68 Project Plan 71 Collecting Data 71 Isolating the Effects of the Project 72 Converting Data to Monetary Values 72 Identifying Intangible Benefits 73 Tabulating Project Costs 74 Calculating the Return on Investment 74 Reporting 75 Operating Standards and Philosophy 75 Implementing and Sustaining the Process 76 Benefits of This Approach 76 Aligning with Business 77 Validating the Value Proposition 77 Improving Processes 77 Enhancing the Image and Building Respect 78 Improving Support 78 Justifying or Enhancing Budgets 78 Building a Partnership with Key Executives 79 Earning a Seat at the Table 79 Final Thoughts 79 5 Aligning Innovation Projects to the Organization 81 Creating Business Alignment 83 The Purpose of Alignment 83 Disciplined Analysis 84 Determining the Potential Payoff 86 Obvious Versus not-so-obvious Payoff 87 The Cost of a Problem 89 The Value of an Opportunity 90 To Forecast or not to Forecast? 90 Determining Business Needs 90 The Opportunity 91 Hard Data Measures 91 Soft Data Measures 92 Tangible versus Intangible Benefits: A Better Approach 93 Impact Data Sources 94 Determining Performance Needs 95 Analysis Techniques 95 A Sensible Approach 95 Determining Learning Needs 96 Determining Preference Needs 97 Case Study: Southeast Corridor Bank 98 Payoff Needs 98 Business Needs 99 Performance Needs 99 The Solution 100 Learning Needs 101 Preference Needs 102 Developing Objectives for Innovation Projects 102 Reaction Objectives 102 Learning Objectives 103 Application and Implementation Objectives 103 Impact Objectives 104 ROI Objectives 105 Final Thoughts 106 6 Collecting Data Along Chain of Impact with a Toolbox of Methods 107 Questionnaires and Surveys 109 Types of Questions and Statements 109 Design Issues 110 A Detailed Example 111 Improving the Response Rate for Questionnaires and Surveys 113 Using Interviews 120 Types of Interviews 121 Interview Guidelines 121 Using Focus Groups 122 Applications for Evaluation 122 Guidelines 123 Measuring with Tests 124 Measuring with Simulation 124 Task Simulation 124 Role-Playing/Skill Practice 125 Using Observation 125 Guidelines for Effective Observation 125 Observation Methods 127 Using Action Plans 128 Using Action Plans Successfully 129 Advantages/Disadvantages of Action Plans 132 Using Performance Contracts 133 Monitoring Business Performance Data 134 Existing Measures 134 Developing New Measures 135 Selecting the Appropriate Method for Each Level 135 Type of Data 135 Participants' Time for Data Input 136 Manager Time for Data Input 136 Cost of Method 137 Disruption of Normal Work Activities 137 Accuracy of Method 137 Utility of an Additional Method 137 Cultural Bias for Data Collection Method 138 Final Thoughts 138 7 Measuring Reaction and Perceived Value 139 Why Measure Reaction and Perceived Value? 140 Customer Satisfaction 141 Immediate Adjustments 141 Predictive Capability 141 Important but not Exclusive 142 Sources of Data 143 Participants 143 Participant Managers 143 Other Team Members 143 Internal or External Customers 144 Project Leaders and Team Members 144 Sponsors and Senior Managers 144 Records and Previous Studies 144 Areas of Feedback 145 Data Collection Timing 146 Data Collection Methods 146 Questionnaires and Surveys 146 Interviews 147 Focus Groups 147 Using Reaction Data 147 Final Thoughts 148 8 Measuring Learning 149 Why Measure Learning and Confidence? 150 The Importance of Intellectual Capital 151 The Learning Organization 152 The Compliance Issue 152 The Use and Development of Competencies 152 The Role of Learning in Innovation Projects 153 The Challenges and Benefits of Measuring Learning 153 Challenges 154 The Benefits of Measuring Learning 154 Measurement Issues 155 Project Objectives 155 Typical Measures 155 Timing 156 Data Collection Methods 157 Questionnaires and Surveys 157 Performance Tests 157 Technology and Task Simulations 158 Case Studies 159 Role-Playing and Skill Practice 159 Informal Assessments 159 Administrative Issues 160 Reliability and Validity 160 Consistency 161 Pilot Testing 161 Scoring and Reporting 161 Using Learning Data 162 Final Thoughts 162 9 Measuring Application and Implementation 163 Why Measure Application and Implementation? 165 Information Value 165 Project Focus 166 Problems and Opportunities 166 Reward Effectiveness 167 Challenges 167 Linking with Learning 168 Building Data Collection into the Project 168 Ensuring a Sufficient Amount of Data 168 Addressing Application Needs at the Outset 169 Measurement Issues 169 Methods 169 Objectives 170 Areas of Coverage 170 Data Sources 170 Timing 170 Responsibilities 171 Data Collection Methods 171 Using Questionnaires to Measure Application and Implementation 172 Using Interviews, Focus Groups, and Observation 172 Using Action Plans 172 Barriers to Application 174 Application Data Use 174 Final Thoughts 175 10 Measuring Impact 177 Why Measure Business Impact? 178 Higher-Level Data 178 A Business Driver for Projects 179 "The Money" for Sponsors 179 Easy to Measure 180 Collecting Effective Impact Measures 180 Data Categories 180 Metric Fundamentals 181 Identifying Specific Measures Linked to Projects 182 Business Performance Data Monitoring 183 Identify Appropriate Measures 184 Convert Current Measures to Usable Ones 184 Develop New Measures 184 Data Collection Methods 185 Using Action Plans to Develop Business Impact Data 185 Using Performance Contracts to Measure Business Impact 187 Using Questionnaires to Collect Business Impact Measures 189 Measuring the Hard to Measure 190 Everything Can Be Measured 190 Perceptions are Important 191 Every Measure Can Be Converted to Money, but not Every Measure Should Be 191 Special Emphasis on Intangibles 192 Final Thoughts 192 11 Isolating the Effects of Innovation 193 Why the Concern over this Issue? 196 Reality 196 Myths 196 Preliminary Issues 198 Chain of Impact 198 Identify other Factors: A First Step 199 Isolation Methods 200 Control Groups 200 Trend Line Analysis 203 Mathematical Modeling 205 Estimates 206 Participants' Estimate of Impact 206 Manager's Estimate of Impact 209 Customer Estimates of Project Impact 209 Internal or External Expert Estimates 210 Estimate Credibility: The Wisdom of Crowds 210 Calculate the Impact of other Factors 212 Select the Technique 213 Final Thoughts 214 12 Converting Data to Money 215 Why Convert Data to Monetary Values? 217 Value Equals Money 217 Impact is More Understandable 217 Converting to Monetary Values is Similar to Budgeting 218 Monetary Value is Vital to Organizational Operations 218 Monetary Values are Necessary to Understand Problems and Cost Data 219 Key Steps in Converting Data to Money 219 Standard Monetary Values 222 Converting output Data to Money 222 Calculating the Cost of Quality 223 Converting Employee Time Using Compensation 227 Finding Standard Values 228 When Standard Values are not Available 229 Using Historical Costs from Records 229 Time 229 Availability 230 Access 230 Accuracy 230 Using Input from Experts 230 Using Values from External Databases 231 Linking with other Measures 232 Using Estimates from Participants 233 Using Estimates from the Management Team 233 Using Project Staff Estimates 234 Technique Selection and Finalizing Value 234 Choose a Technique Appropriate for the Type of Data 235 Move from Most Accurate to Least Accurate 235 Consider Source Availability 235 Use the Source with the Broadest Perspective on the Issue 236 Use Multiple Techniques When Feasible 236 Apply the Credibility Test 236 Consider the Possibility of Management Adjustment 238 Consider the Short-Term/Long-Term Issue 238 Consider an Adjustment for the Time Value of Money 239 Final Thoughts 239 13 Addressing Intangibles 241 Why Intangibles are Important 244 Intangibles are the Invisible Advantage 244 We are Entering the Intangible Economy 245 More Intangibles are Converted to Tangibles 245 Intangibles Drive Innovation Projects 246 The Magnitude of the Investment 246 Measuring and Analyzing Intangibles 246 Measuring the Intangibles 247 Converting to Money 249 Identifying and Collecting Intangibles 251 Analyzing Intangibles 252 Final Thoughts 253 14 Measuring ROI 255 Why Monitor Costs and Measure ROI? 258 Fundamental Cost Issues 259 Fully Loaded Costs 259 Costs Reported without Benefits 260 Develop and Use Cost Guidelines 261 Sources of Costs 262 Prorated versus Direct Costs 262 Employee Benefits Factor 263 Specific Costs to Include 263 Initial Analysis and Assessment 264 Development of Project Solutions 264 Acquisition Costs 264 Implementation Costs 264 Maintenance and Monitoring 265 Support and Overhead 265 Evaluation and Reporting 265 The ROI Calculation 265 Benefits/Costs Ratio 266 ROI Formula 267 ROI Objective 269 Other ROI Measures 270 Payback Period (Breakeven Analysis) 270 Discounted Cash Flow 271 Internal Rate of Return 271 Final Thoughts 272 15 Forecasting Value, Including ROI 273 Why Forecast ROI? 278 Expensive Projects 279 High Risks and Uncertainty 279 Postproject Comparison 279 Compliance 280 The Trade-offs of Forecasting 280 Preproject ROI Forecasting 282 Basic Model 282 Basic Steps to Forecast ROI 283 Sources of Expert Input 287 Securing Input 287 Conversion to Money 288 Estimate Project Costs 288 Case Study 289 Forecasting with a Pilot Program 293 Forecasting with Reaction Data 293 Case Study: Forecasting ROI from Reaction Data 294 Use of the Data 295 Forecasting Guidelines 296 Final Thoughts 299 16 Reporting Results 301 The Importance of Communicating Results? 303 Communication is Necessary to Make Improvements 303 Communication is Necessary to Explain the Contribution 303 Communication is a Politically Sensitive Issue 304 Different Audiences Need Different Information 304 Principles of Communicating Results 304 Communication Must Be Timely 305 Communication Should Be Targeted to Specific Audiences 305 Media Should Be Carefully Selected 305 Communication Should Be Unbiased and Modest in Tone 305 Communication Must Be Consistent 306 Make the Message Clear 306 Testimonials Must Come from Respected Individuals 306 The Audience's Bias of the Project Will Influence the Communication Strategy 306 Storytelling is Essential 307 The Process for Communicating Results 307 The Need for Communication 308 The Communication Plan 309 The Audience for Communications 309 Basis for Selecting the Audience 311 Information Development: The Impact Study 312 Media Selection 312 Meetings 312 Interim and Progress Reports 314 Routine Communication Tools 315 E-mail and Electronic Media 316 Project Brochures and Pamphlets 316 Case Studies 316 Delivering the Message 316 Routine Feedback on Project Progress 317 Storytelling 319 Presentation of Results to Senior Management 320 Reactions to Communication 322 Final Thoughts 322 17 Implementing and Sustaining ROI 323 Why is this Important? 324 Resistance is Always Present 326 Implementation is the Key to Success 326 Consistency is Needed 326 Efficiency 326 Value is Maximized 326 Implementing the Process: Overcoming Resistance 327 Review Current Results 328 Developing Roles and Responsibilities 328 Identifying a Champion 329 Developing the ROI Leader 329 Establishing a Task Force 329 Assigning Responsibilities 330 Establishing Goals and Plans 331 Setting Evaluation Targets 331 Developing a Plan for Implementation 332 Revising or Developing Policies and Guidelines 332 Preparing the Project Team 334 Involving the Project Team 334 Using ROI as a Learning and Project Improvement Tool 334 Teaching the Team 334 Initiating ROI Studies 335 Selecting the Initial Project 335 Developing the Planning Documents 335 Reporting Progress 336 Establishing Discussion Groups 336 Preparing the Sponsors and Management Team 336 Removing Obstacles 337 Dispelling Myths 337 Delivering Bad News 338 Using the Data 338 Monitoring Progress 339 Final Thoughts 340 References 343 Index 351

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詳細情報

• NII書誌ID(NCID): BB26403590
• ISBN:
  • 9781119242376
• LCCN: 2017056930
• 出版国コード: us
• タイトル言語コード: eng
• 本文言語コード: eng
• 出版地: Beverly, Mass.,Hoboken, N.J.
• ページ数/冊数: xxvii, 359 p.
• 大きさ: 24 cm
• 分類:
  • LCC : HD53
  • DC23 : 658.4/063
• 件名:
  • LCSH : Creative ability in business -- Management
  • LCSH : Technological innovations -- Management
  • LCSH : Organizational change
  • LCSH : Performance -- Measurement