Another way for top management business teams to assess their ability to do business new business development projects is for them to use the Innovation Quotient Inventory developed by James M Higgins and Associates Incorporated in conjunction with the Center for Creative Leadership. The survey of 49 questions related to product and process development is completed by members of a company’s top management team in each functional area. For smaller companies the survey is also given to direct reports of the senior management team.
The results of the survey are segmented into the traditional seven “S’s” of building a corporation. These are strategy, structure, systems, style, staff, shared values, and resources. Typical graphic output for product and service innovation is shown in the “Product and Service Innovation” figure and for process innovation in the “Process Innovatio” figure.
For this example company the firm has a strong start on innovation both in product / service and process innovation. It has made substantial progress in four of the seven S’s. At first glance this firm, with all factors being equal, is probably innovative in the technology area and therefore probably competitive. Such a conclusion is however subject to the innovativeness of other firms in the industry. For example, this firm may need to improve its innovation areas outside technology, especially if other firms in this firm’s industry are already doing this.
The “Competitiveness Through Innovation Matrix” figure shows a Competitiveness Through Innovation chart. This chart plots as one point the combination of all product/service and process scores. It gives an organization a rough idea of its competitiveness competencies compared to other organizations that have taken such tests. The simple metric gives senior management teams a visual assessment of where they need to improve in order to be effective as a firm.