Ms. Kathleen Papageorgiou, old GE colleague passes along a HBR blog post on "How to really measure a company's innovation prowess" by Mr. Scott Anthony.
A fanscinating subject indeed! Creativity driven innovation remains an art. Artists are the least understood among human capital. In our drive to understand the "artist", we are incrementalizing innovation so it can be made generic, and all can feel they are innovators. Just as leaders are born, and circumstances enable them to emerge such as George Washington and Ghandi, similarly, innovators like Mr. Steve Jobs of Apple and Dr. Gordon Moore, founder of Intel, are born to be one.
Mr. Anthony highlights the reality of innovators below:
"Until they do, at least be wary of the next company that graces a magazine cover. After all, half of the top 20 companies traded on U.S. equity markets* on BusinessWeek's 2008 list ended up underperforming broader market indices between March 2008 and March 2013. While strong performance by Amazon.com and Apple meant an investment in those 20 companies beat an investment in the S&P 500, Blackberry (see Research in Motion), General Motors, Nokia, Sony, and Toyota certainly have had their share of difficulties over that time period."
Read the complete article here.