The Success Rate together with other innovation KPI’s is designed to measure the ability of an organisation to deliver value from investments in NPD. The KPI is a backward looking, measuring the success rate of all projects in a period after they were supposed to have been launched. It is calculated as accumulated real profit, divided by accumulated profit targets for all NPD projects in one portfolio for a defined period of time after the original launch date. The Success Rate target fulfilment ensures that the NPD function delivers a committed profitable growth.
- Objectives/Key learning points
- Understand the purpose of the Success Rate
- Identify data that is required to calculate it
- Create a mindset of how to proactively influence the Success Rate to be as high as possible
- Teaching Methodology
- Short theoretical introduction followed by a facilitated discussion how to implement it in the client organisation
- Implementation Methodology
- Set up Success Rate challenge workshop and identify the current value. Analyse the root causes of deviation to a desired (target) Success Rate. Identify and prioritise actions to improve the Success Rate by elimination of systemic root causes of lower performance.
- Implement actions and monitor the Success Rate increase