Metrics that Matter
Tom Flaherty is a Senior Advisor to Strategy&, part of the PwC network, with over forty years of experience consulting to utilities. Most recently, he has focused on disruptive technologies and innovation models.
Every day utilities focus on their innovation models to master the fundamentals of standing-up and sustaining something never formally existing in their companies. Executives are shaping their innovation purpose, establishing expectations, aligning employees, launching models, and identifying resources to drive outcomes, both tangible and intangible.
Most companies are not far enough along to point to specific tangible operational and commercial success. Nonetheless, they understand that measuring how they are progressing and succeeding with innovation is important.
Traditional metrics to measure business performance are insufficient for innovation. Results-oriented metrics remain important, but activity, participation and accomplishment have even higher relevance in the near-term.
Utilities with either formative or existing innovation models, can consider metrics in four key areas: engagement, ideation, operationalization, and commercialization. These metrics provide an end-to-end view from adoption, to accomplishment, to impact.
Engagement: with utilities still in early stages of innovation stand-up, some companies consider targeted metrics as premature. But measurement is most critical when trying to build internal acceptance and momentum.