Business Development Metrics

We are working with the definition af KPI’s in my department. We find it difficult to find good and well functioning, practical, KPI’s related to inovation and process improvement in banking.

I would include some (or all) of the following:

1. SPEED TO MARKET: measuring the total cycle time and time between decision gates; looking at specific projects and indeed at average STM times for the organisation as a whole.
2. RESOURCE EFFICIENCY & UTILISATION: what percentage of the organisation’s available Innovation Resources [need to carefully define who falls into this category] are committed to individual projects, specific technology platforms (encompassing multiple projects) and in which phases of the Innovation process the resources are committed e.g. Ideation, Exploration, Development, Execution, Launch.
3. ROI - measured specifically by NEW BUSINESS WON + EXISTING BUSINESS RETAINED over total INNOVATION COSTS. There can be no absolute benchmarking of this number as it involves variables such as how many years worth of new business should you include; what discount rate should you use to get back to NPV, etc. Thus for some organisations this factor may be less than 1.0 and still be regarded as highly successful and for others it would need to be a large positive number to regard Innovation as successful. The ROI measure has to be relative, relevant and robust for your organisation and its strategic goals.
4. PROJECT KILL RATE: A positive measure of the Innovation Process; critical resource consuming projects that are not going to succeed must be quickly stopped and hence it is important to encourage KILLING projects as a positive step.
5. ORGANISATIONAL LEARNING. Not a number but a measured list of the key strategic learnings that are developed as a consequence of the organisation’s Innovation Process. These may be about competitor activities, team development, technology evolution or simple process improvements that can benefit the rest of the organisation. This is an area that I feel is overlooked by many organisations such that they continue to reinvent the same old wheel or fail to spot the opportunity for improvement outside the drive for new-to-the-world innovation.

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