TVP – Metric 47 R&D Climate

Resource Type
Tool
Authors
Alan Fusfeld, Innovation Research Interchange
Topics
Innovation Metrics, Stage-Gate, Tools and Techniques
Associated Event
Publication

Background | User Guide | Program Contents | Stakeholders | List of Metrics

1. Metric Definition

An evaluation of overall climate in an R&D organization, especially the extent to which it is characterized by “Third Generation R&D” principles.
This metric provides a way to score the overall climate in an R&D organization, especially to see the extent to which it is characterized by “Third Generation R&D.” If the index is put into four stages similar to other metrics stage one indicates the climate as lacking explicit strategic framework for technology management; R&D is isolated and the R&D strategy is not linked to the division strategy. Management is not tolerant of failure and business planning does not include R&D. Funding of programs varies with earning forecasts, and priorities are set according to near-term business conditions. Performance is measured according to product successes, while projects are poorly defined, and progress is only evaluated when things go wrong. (ref. 1)

Stage four encompasses a corporate-wide strategic framework for technology management. Partnerships exist between R&D and all other areas of the business, with R&D fully integrated. Funding varies with technological maturity and competitive impact; while priorities are set according to contribution to division or corporate strategic objectives. Projects are well defined and progress is regularly evaluated. Large complex projects are managed by multi-functional teams, and projects are evaluated as part of a portfolio. 

2. Advantages and Limitations

This metric allows for a quantitative comparison between R&D organizations. Some aspects may indeed by subjective.

3. How to use the metric

The scoring is probably best done by a number of different individuals within the organization.

4. Options and Variations

This scoring system was developed by A. D. Little in the 1990’s.  An assessment scheme for R&D decision making has also been developed by Strategic Decisions Group and could be used instead.  And most recently, though not yielding a simple set of metrics, an ROR team has developed a survey for assessment of the climate for innovation, the “Value Innovation Assessment Tool” which can be applied and tracked over time to measure nine different organizational factors that enable or inhibit innovation.

5. Champions and Contacts

6. References

Roussel, P. A., Saad, K. N., and Erickson, T. J. 1991. Third Generation R&D, Harvard Business School Press, ISBN 0-87584-252-6.

Balsano, T., Goodrich, N. E., Lee, R. K., Miley, J. W., Morse, T. F., and Roberts, D. A., 2008, Identify Your Innovation Enablers and Inhibitors, Research-Technology Management, Vol. 51 (6), 23-33.