CPI CPI Innovation Metrics & Performance Measurement 2 — Questions and Answers
Question 1: Which framework categorizes innovation projects by horizon to help allocate measurement resources?
- McKinsey Three Horizons (Correct answer)
- SWOT Analysis
- Porter's Five Forces
- BCG Growth-Share Matrix
Correct answer: McKinsey Three Horizons
McKinsey's Three Horizons framework separates core, emerging, and transformational innovation so teams can apply appropriate metrics to each horizon.
Question 2: What is 'innovation batting average' used to measure?
- The ratio of successful launches to total innovation attempts (Correct answer)
- The number of ideas generated per employee
- The speed of prototype development
- Customer adoption rate of new features
Correct answer: The ratio of successful launches to total innovation attempts
Innovation batting average is a metaphor for the success rate — how many innovation attempts result in commercially viable outcomes.
Question 3: Which leading indicator best predicts future innovation output in a US firm?
- Number of cross-functional collaboration sessions (Correct answer)
- Last quarter's net profit
- Current accounts receivable balance
- Facility square footage
Correct answer: Number of cross-functional collaboration sessions
Cross-functional collaboration frequency is a leading indicator because diverse team interaction drives idea generation and problem-solving before results appear.
Question 4: A CPI professional wants to benchmark their innovation performance against industry peers. Which data source is most appropriate?
- Internal employee surveys
- Industry innovation benchmarking reports (e.g., Booz/PwC Global Innovation 1000) (Correct answer)
- Company social media analytics
- Quarterly sales dashboards
Correct answer: Industry innovation benchmarking reports (e.g., Booz/PwC Global Innovation 1000)
Published benchmarking studies like the PwC Global Innovation 1000 provide normalized industry data for comparing R&D investment and output across companies.
Question 5: What does a 'discovery-driven planning' approach add to traditional innovation measurement?
- It replaces financial forecasts with assumption tracking and milestone-based learning (Correct answer)
- It eliminates the need for ROI calculations
- It focuses solely on cost reduction
- It requires government-approved forecasts
Correct answer: It replaces financial forecasts with assumption tracking and milestone-based learning
Discovery-driven planning treats key assumptions as checkpoints, measuring whether assumptions prove true rather than tracking fixed forecasts.
Question 6: Which metric measures the degree to which an organization's innovation output aligns with its stated strategy?
- Strategic alignment index (Correct answer)
- Patent citation index
- Employee turnover rate
- Accounts payable days
Correct answer: Strategic alignment index
A strategic alignment index scores whether active innovation projects map to defined strategic priorities, ensuring resources support the right goals.
CPI CPI Innovation Metrics & Performance Measurement 2
Which framework categorizes innovation projects by horizon to help allocate measurement resources?