How do you monitor and evaluate the outcomes and impacts of your innovation projects and activities?

1 Define your innovation goals and indicators

Before you start any innovation project or activity, you need to have a clear idea of what you want to achieve and how you will measure it. This means setting specific, measurable, achievable, relevant, and time-bound (SMART) goals and indicators for your innovation efforts. For example, if you want to improve customer satisfaction, you might set a goal of increasing your Net Promoter Score (NPS) by 10% in six months, and use surveys and feedback forms as indicators. Or, if you want to reduce costs, you might set a goal of saving 15% on your inventory expenses in a year, and use financial reports and audits as indicators.

2 Track your innovation progress and performance

Once you have your innovation goals and indicators, you need to track them regularly and consistently. This means collecting and analyzing data on your innovation outputs, outcomes, and impacts. Outputs are the tangible products or services that result from your innovation activities, such as a new menu item or a new app. Outcomes are the changes or benefits that your innovation outputs create for your customers, employees, or partners, such as increased loyalty, satisfaction, or productivity. Impacts are the long-term effects or value that your innovation outcomes generate for your franchise, such as higher revenue, market share, or reputation.

3 Compare your innovation results and benchmarks

To evaluate the effectiveness and efficiency of your innovation projects and activities, you need to compare your results with your goals and indicators, as well as with relevant benchmarks. This means assessing how well you have met or exceeded your expectations, and how you have performed against your competitors or industry standards. For example, if you have achieved your goal of increasing your NPS by 10%, you might compare it with the average NPS of your peers or sector, and identify your strengths and weaknesses. Or, if you have saved 15% on your inventory expenses, you might compare it with the best practices or trends in your field, and explore new opportunities or challenges.

4 Learn from your innovation feedback and findings

To improve your innovation capabilities and outcomes, you need to learn from your feedback and findings. This means identifying and understanding the factors that contributed to your success or failure, and the lessons that you can apply to your future innovation projects and activities. For example, if you have improved customer satisfaction with a new menu item, you might learn what features or attributes appealed to your customers, and how you can replicate or enhance them. Or, if you have reduced costs with a new app, you might learn what challenges or risks you faced, and how you can avoid or mitigate them.

5 Communicate your innovation stories and impacts

To showcase your innovation achievements and impacts, you need to communicate them effectively and persuasively. This means creating and sharing stories that highlight your innovation outputs, outcomes, and impacts, and how they have added value to your franchise, customers, employees, or partners. For example, if you have increased your revenue with a new service, you might create a case study or a testimonial that demonstrates how you have solved a customer problem or need, and how you have differentiated yourself from your competitors. Or, if you have enhanced your reputation with a new partnership, you might create a press release or a blog post that shows how you have collaborated with a strategic ally, and how you have contributed to a social or environmental cause.

6 Celebrate your innovation successes and failures

To foster a culture of innovation in your franchise, you need to celebrate your successes and failures. This means recognizing and rewarding your innovation efforts and achievements, and encouraging and supporting your innovation experiments and learnings. For example, if you have met or exceeded your innovation goals and indicators, you might celebrate with a party or a bonus for your team, and share your best practices or tips with your network. Or, if you have missed or fallen short of your innovation goals and indicators, you might celebrate with a feedback session or a coaching session for your team, and share your challenges or mistakes with your network.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?