For a firm to succeed, it is imperative for its management to formulate tailor-made strategies that would enable it to realize its future objectives and goals. However, having well cut out strategies in place is not enough as the firm should go ahead and ensure that the plans are well executed so as to get the expected results (Dessler, 2012). Therefore, for a company to realize a successful execution of its strategies, it needs to integrate learning and growth perspective. Learning and growth perspective helps the firm to know how it can quench customers’ needs, better business operations and how it can appreciate pecuniary goals. There are four primary measures of learning and growth perspective namely: customer, internal, innovation and financial. This paper will concentrate on innovation. It will try to show, although innovation being pivotal for a firm, it is equally difficult to quantify its performance (Dessler, 2012).
Innovation, Learning, and Growth Perspective
Among the four learning and growth perspectives, innovation is the most important perspective in any firm (Dessler, 2012). Innovation entails the process in which a company evaluates, chooses, improves, and implements new or improved commodities, services, or programs. Although it is very crucial for any business, innovation is tough to quantify. For instance, it is very hard to measure creativity as an output of innovation since its nature is unpredictable (Werner, 2012). Most firms use Key Performance Indicators (KPIs) system to measure performance and monitor innovation. However, some find it not reliable since they cannot get systematic and dependable information for yardstick organizations. Managers more often than not, have a hard time to come across indicators that are pragmatic and can explicitly quantify what is imperative.
Additionally, they find it cumbersome to interpret and implement the results of innovation measurement. However, there is a formula that the managers could adopt to overcome these difficulties. Firstly, the company should design input, processing and output Innovation Key Performance Indicators framework which is business orientated. Additionally, the Key Performance Indicators outline should be integrated throughout the firm in the day to day operations. Secondly, the firm should retain a continuous sequence of interpreting calculated performance into successful processes using Key Performance Indicators dashboards (Werner, 2012). Lastly, for the company to realize the desired up shots in respect to measuring innovation, Key Performance Indicators outline should be entrenched in the entire organization everyday operations from the executive level to the implementation level. This will enable the management of the firm to propel innovation and organization performance in the present and later in the future (Werner, 2012).
In conclusion, it is clear that innovation is an important aspect although tough to manage and quantify its performance (Dessler, 2012). For this reason, managers should come up with innovation Key Performance Indicators that are tailor-made specifically for their firms. These indicators must be easy to manage, interpret and also to implement. Finally, managers should make it one of their strategies to fund adequately processes that need innovation.
Dessler, G. (2012). Human resource management. Boston: Prentice Hall.
Werner, M. L., & Xu, F. (2012). Executing strategy with the balanced scorecard. International Journal of Financial Research, 3(1), 88.