2. 2AESC_BlueSteps Results to Participants vfBOS
Key findings of the Innovation Diagnostic Survey
• While two-thirds of companies make innovation a top 3 priority, less than a quarter of
executives feel they are very effective at it
• Companies struggle with many aspects of the innovation process, and thus there is no
simple fix
• High-performers in innovation show significantly higher revenue growth rates than
other companies (average annual revenue growth of 13% versus 5%)
• Likewise, innovation high-performers are massively advantaged in employee loyalty
(eNPS of +23 versus -56 for others), thus innovation success fosters employee
engagement, while failure leads to disillusionment
• Innovation high performers tend to perform well on the 12 innovation success factors.
Specifically, they have identified clear models of innovation, set goals well, and have
built a “culture” of innovation. They have both internal organizational alignment and
effective decision-making throughout the process
• Conversely, companies who are struggling with innovation tend to perform poorly on
all innovation success factors but are particularly weak on:
-Structure, roles, and decision making
-Culture of innovation
-Idea screening and development
-Portfolio management
• Overall, success in innovation appears to come from focusing the organization on the
problem, adhering to solid management practices, and making decisions effectively
3. 3AESC_BlueSteps Results to Participants vfBOS
0
20
40
60
80
100%
% believe their companies are effective on the
12 innovation success factors
Respondents
23
0
20
40
60
80
100%
% agree innovation is a top 3
corporate priority
Respondents
67
TWO THIRDS OF EXECUTIVES AGREE THAT
INNOVATION IS A TOP PRIORITY
LESS THAN A QUARTER THINK THEIR COMPANIES
ARE VERY EFFECTIVE AT INNOVATION
Innovation is critically important, but less than a
quarter think their companies are very effective at it
Source: Innovation diagnostic survey March 2012 (n=437)
4. 4AESC_BlueSteps Results to Participants vfBOS
-60
-40
-20
0
20
40%
Employee loyalty
(NPS score)
High
performer
23
Other
-56 0
20
40
60
80
100%
High
performer
72
Other
57
Org effectiveness score based on
quality, speed, yield and effort scores
0
20
40
60
80
100%
% of companies with
sales growth >5%
annually
High
performer
72
Other
41
13% 5%
Mean revenue
growth rates:
6% 3%
Mean annual
TSR:
HIGHER REVENUE GROWTH
BETTER DECISION-MAKING
EFFECTIVENESSHIGHER EMPLOYEE LOYALTY
Innovation high performers see higher sales growth,
employee NPS and decision-making effectiveness
Note: High = top quartile of ‘innovation average’ scores; Other = the rest; Org effectiveness score is equal to average of (quality DM score, speed DM score,
yield DM score, 1 – effort DM score) – where DM stands for Decision Multiplier; TSR data 2000-2010; Revenue growth rates 2008-2011
Source: Innovation diagnostic survey March 2012 (n=437)
5. 5AESC_BlueSteps Results to Participants vfBOS
Innovation
Strategy
Organization
Idea
Generation&
Development
ScalingPortfolio
2 3 41
Innovation high performers excel on all of the 12
innovation success factors
Weak Average Strong
Innovation goals and models1
Organizational alignment2
“BothBrain” talent: partnerships & mgmt.3
Structure, roles, and decision making4
Culture of innovation5
Idea generation6
Idea screening and development7
Prototyping and testing8
Portfolio management9
Project management1010
Scaling and launch strategy1111
Launch alignment and ongoing execution1212
Note: High = top quartile of ‘innovation average’ scores; Low =
bottom quartile; Average = all other; TSR data 2000-2010;
Revenue growth rates 2008-2011
Source: Innovation diagnostic survey March 2012 (n=437)
High performerAverage performerLow performer
Mean revenue
growth
3.7% 6.2% 13.0%
Mean annual TSR 1.5% 3.0% 6.1%
6. 6AESC_BlueSteps Results to Participants vfBOS
0
20
40
60
80
100%
Overall innovation performance (% strongly agree)
Innovation is one of
the top 3 priorities of
our company
80
31
12
We have defined our
innovation goals and
track our performance
against those targets
60
16
3
I believe we are
a best-in-class
innovation
organization in
our industry
57
10
1
We are innovative in
how we approach and
solve issues at all levels
of the organization
44
5
Our company’s overall
strategy is sufficiently
innovative and
forward-looking to
achieve success
72
9
2
Innovation high performers have better innovation
performance overall
Note: High = top quartile of ‘innovation average’ scores; Low = bottom quartile; Average = all other; TSR data 2000-2010; Revenue
growth rates 2008-2011
Source: Innovation diagnostic survey March 2012 (n=437)
Mean
revenue
growth
Mean
annual
TSR
High performer 13.0% 6.1%
Average performer 6.2% 3.0%
Low performer 3.7% 1.5%
7. 7AESC_BlueSteps Results to Participants vfBOS
We currently have projects
in the portfolio that will help
meet or exceed our future
innovation financial targets
Innovation performance is based on the average
scores of the following four questions
We have consistently met or
exceeded our innovation
goals
We invest adequately in
preparing for major market
disruptions through
innovation
Note: High = top quartile of ‘innovation average’ scores; Low = bottom quartile; Average = all other; Mean annual TSR data 2000-
2010; Revenue growth rates 2008-2011
Source: Innovation diagnostic survey March 2012 (n=437)
We have a winning
repeatable model for
innovation that we apply
consistently across
geographies and categories
+ ++MAINTAIN
STRONG PORTFOLIO
MEET
INNOVATION GOALS
PREPARE FOR
DISRUPTION
ACHIEVE
REPEATABLE MODEL
