AIM Archives - Tag: commercial confidence

Is it time to supplement your Vitality Index metric?

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Keep using the vitality index… new product revenue as % of total revenue. But understand three limitations: 1) It’s not predictive; it only tells you what has already happened. 2) It’s not prescriptive; it doesn’t suggest how to improve. 3) It’s not precise; is it a new product if we just change its color? Supplement the vitality index with 2 newer metrics: Growth Driver Index (GDI), and Commercial Confidence Index (CCI).

More in Leader’s Guide Videos Lesson 29, Employ leading growth metrics

A good innovation metric should satisfy 4 criteria

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1) It should be leading: Doing more of this will result in growth. 2) It should be actionable: Our employees can make this happen. 3) It should be benchmarkable: We can compare year-over-year and to our peers. 4) It should be high impact: If we improve these things, it will significantly impact growth. These two metrics pass all four tests: The Growth Driver Index (GDI) and the Commercial Confidence Index (CCI).

More in article, Beyond the Vitality Index: Two Metrics to Truly Assess Innovation Potential