One of the key objectives of the corporate innovation function is to build and manage the innovation funnel of ideas that will eventually become Horizon 2 & Horizon 3 products. How do you measure success of corporate innovation especially when your organization’s planning process is extremely outcome-based, and most ideas are not going to move forward by design? McKinsey’s “3 Horizons of Growth” model states that each horizon calls for different success metrics. Mature products (Horizon 1) are measured with profit, margins, and costs. Growth products (Horizon 2) are measured with market share growth. Incubation products (Horizon 3) are measured by reaching certain milestones.
