The CEO's View On Measuring Research and Development

Corporations need fifteen plus metrics to measure themselves. It cannot be done with less without leaving some important ground uncovered. The corporate set of metrics is calculated by combining the top corporate measures with selected measures from organizations that support the corporate level such as R&D and product development.

In an analogous manner, each organization or function that supports the corporate level has a set of their own measures that are necessary and only a select few of these supporting metrics are part of the corporate set of metrics. Then within each of these organizations there are a number of departments and functions. Again, each of these component departments and functions also has a set of measures. In larger organizations, this tiered hierarchy may continue several more levels. These three levels are the focus of this audio session:

1. The few R&D and product development metrics that are part of the corporation's set of metrics.
2. The set of metrics necessary to direct and manage the R&D and product development activities.
3. The metrics that measure the functions and activities within R&D and product development.

The audio session will address 6 separate subject areas where CEOs look to make sure metrics are actively maintained and monitored. They are:

1. Business Results
2. Productivity & Return On Innovation
3. Capacity Management
4. Individual Investments In Technologies & Products/Projects
5. Core & Functional Competencies
6. Intellectual Property

By participating in this session, you will take away an understanding of how many metrics are prudent, the kinds of measures that are appropriate at each level in a hierarchy, and examples of specific metrics in each of the six areas along with the benchmarks where available. Some specific measures that will be discussed include: revenues and profits due to new products, Productivity, return on innovation and variants of it, project and pipeline portfolio metrics, R&D throughput metrics, project metrics, functional productivity measures, and intellectual property measures.


The question and answer session for this audioconference lasted approximately thirteen minutes and is contained in a separate file. Participants asked a number of worthwhile questions.