Innovation Capability
Is improvement a system, or a lucky break?
What it measures
Presence of an idea pipeline, protected improvement capacity, staged review of bets, and measurable returns from improvement work.
Why it matters
Companies that only execute the current plan get overtaken by ones that also invest in the next plan. Innovation is the discipline of making improvement a routine.
What good looks like
- A simple way for employees to submit improvement ideas
- Protected capacity for improvement work
- Bets are sized and reviewed at stages
- A share of cost-savings or revenue traces back to internal improvements
How it evolves across levels
- L1 Foundation
An idea intake exists.
- L2 Structure
Improvement work has protected capacity.
- L3 Performance
Bets are reviewed and killed or scaled.
- L4 Excellence
Internal improvements are a meaningful P&L line.
- L5 Mastery
Innovation is part of the operating rhythm.