Assessment of the innovation management system’s performance

The indicators, methods and criteria to follow during the evaluation are defined by the organization. As a minimum, it is necessary to have the followings:

  • innovation strategy,
  • specification of facilitating factors and obstacles,
  • innovation process and its results.

Regular evaluation needs to be carried out in order to gather the experiences regarding the different dimensions of innovation management and to serve as an input to ensure the constant development of the innovation management system. The optimal regularity of such assessment depends on the organization’s working environment and dynamics, furthermore on the organization’s innovation development goals.

Besides other assessments, it is required to implement timely internal evaluations regarding the innovation management system itself. 

In case the organization disposes of any other functioning management system (e.g. EN ISO 9001), then the IMS evaluation can take place under the same audit.

The management needs to examine the organization’s innovation management system in order to ensure its suitability, usefulness and efficiency. The scrutiny should focus on the following areas:

  • status of the previously accepted due measures from the former executive scrutiny,
  • internal and external changes relating to the innovation management system,
  • information about the efficiency of the innovation management system,
  • possibilities and ways of continuous development.

The executive scrutiny provides information and framework to take decisions regarding the system’s sustainability, development directions, and the necessary changes.

The organization needs to preserve the information and documentation from the executive scrutiny. Further to this, the assessment results should be shared internally in order to stimulate progress and enable the correction, anticipation of mistakes, and to avoid unnecessary reduplication of work.

Assessing the result of the innovation process:

Possible financial indicators:

  • Profit growth rate
  • Revenue growth rate
  • Cost reduction for the company or for the customers
  • Business margin growth
  • Return on innovation investment.

Non-financial indicators:

  • Number of ideas generated throughout the innovation process
  • Market share
  • Efficiency of processes, brand-awareness, reputation/goodwill
  • Number of employees (as a result of innovation activity)
  • Immaterial assets (intellectual property, human resource, know-how, networks and relations, etc.)
  • Eco-sustainability as a result of innovation (reduction of emission and energy consumption, utilization efficiency, development of the work environment and the work conditions, etc.).

These are the indicators suggested by the standard, however, the organization can use others according to its needs.

The evaluation of innovation results based on the above suggested indicators provides valuable feedback to the innovation management team about the project’s successfulness, errors, and experiences for the future.

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