Tools · Innovation Capability Assessment

Build your organization's innovation capability.

Even the best-performing companies stall. Sustaining momentum, while remaining a great growth company, takes a system. See where your organisation is strong, where innovation gets stuck and what your management team could work on first.

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01 / Why

Where does innovation fall short?

Close the growth gap

The aim is to deliver your strategy and move the business from today to its desired future. The growth gap is the difference between that ambition and what today’s business is expected to deliver if its current trajectory continues.

Closing this gap requires a portfolio of different types of innovation, spanning efficiency, sustaining and market-creating innovation. The strength of the four components we discuss below, and how well they work together, determines whether that portfolio can deliver.

Growth plan

Efficiency, sustaining and market-creating innovation bridge the gap between the projected contribution of today’s business and the desired future.
Note: The innovation typology can be replaced, for example for: Core, Adjacent, New

Portfolio by innovation type

Illustrative initiatives across efficiency, sustaining and market-creating innovation, plotted by time to market from one to five years. The size of the circle indicates financial potential.

Time to market (years)

Each circle is an initiative. The size of the circle indicates financial potential.

Typical symptoms

  • Too few promising ideas, or weak links between strategy and which ideas get developed.
  • Innovation efforts deliver uneven results or fall short of what the business needs.
  • The gap between growth ambitions and what the current portfolio can deliver is widening.
Growth Blueprint at the centre of a pyramid connecting Governance and Controls, Production Systems, and Leadership, Talent and Culture

The underlying problem

Growth through innovation depends on four connected components. If one is underdeveloped, the system stalls.

  • The growth blueprint sets direction.
  • Production systems turn ideas into new offerings and businesses.
  • Governance and controls guide decisions and resources.
  • Leadership, talent and culture shape how people do the work.

What the assessment helps you do

Assess current practice, identify strengths and gaps, and agree which actions could make a difference soon while building longer-term capability.

Framework and underlying competencies draw on Scott D. Anthony and David S. Duncan’s Building a Growth Factory (Harvard Business Review Press, 2012).

02 / Assessment

Assess your innovation capabilities

Choose one answer per question based on current practice. Use ↑ and ↓ to move between questions, ← and → to choose an answer, and Space to select it.

Growth Blueprint

The plan for innovation-driven growth, including objectives and targets, the opportunities and tactics we will pursue or rule out, and where to look for attractive future growth.

Growth Types

The distinct types of growth we pursue and manage within the overall innovation portfolio.

What good looks like

Growth in and beyond the core is clearly defined. Leaders and practitioners understand the types, use them in management decisions, and regularly discuss examples from the company to reinforce their meaning.

1. Have we clearly defined the types of growth we want to pursue?
2. Does at least one type focus on growth beyond today’s core business?
3. Do leaders and innovation practitioners understand, agree on and use the growth types?
4. Do our management systems reflect the different growth types?

Growth Goals

The quantitative and qualitative goals for each type of growth and for the overall innovation portfolio.

What good looks like

Growth goals are agreed through long-term strategic planning and translated into unit commitments. The target portfolio specifies the desired mix and contribution of each growth type. Long-term innovation domains set priorities, assessed under Growth Guidelines and Boundaries.

1. Do leaders agree on our near- and long-term growth goals?
2. Have we defined what success looks like for each type of growth?
3. Do we know how much growth we expect from the core and from other growth types?
4. Do business units use the goals to guide their plans and decisions?
5. Do we check whether our current portfolio can deliver those goals?

Growth Guidelines and Boundaries

Guidelines and boundaries define what is desired, what is off the table and what is open for discussion. They steer innovation in the right direction and help teams avoid unfruitful paths. These constraints create a clear sandbox that encourages creativity and experimentation.

What good looks like

Leaders and teams agree on long-term innovation priorities, clear limits and which opportunities need discussion. These are documented and used in opportunity development, funding and review decisions. Teams have freedom to explore within the agreed sandbox. The guidelines are revisited as the company and its industry change.

1. Have we agreed where to look for future growth?
2. Have we defined what makes an opportunity attractive and what is outside scope?
3. Are the guidelines built into innovation decisions and processes?
4. Do we revisit the guidelines as conditions change?

Production Systems

The processes, structures and resources that turn ideas into new offerings and growing businesses.

Innovation Processes

The processes, milestones and decision points that take each type of growth from spotting opportunities through designing solutions, testing and learning, and scaling.

What good looks like

Processes cover all four stages and are routinely used. They vary by growth type, allow iteration and justified exceptions, and anticipate later-stage needs. Customer evidence, business model choices and experiments guide decisions about whether and how to scale.

Process design

1. Do teams use an innovation process suited to the type of growth?
2. Do we know what evidence we need at each stage?

Spot opportunities

3. Do we understand the problems customers and potential customers are trying to solve?

Design solutions

4. Do we design around the whole customer experience and the trade-offs customers will make?
5. Do we explore different solutions and business models before committing?

Test and learn

6. Do we identify and prioritise the assumptions that could make an opportunity fail?
7. Do test results change the solution and guide learning across teams?

Scale

8. Do we have evidence that an opportunity is ready to scale, and expand at an appropriate pace?
9. Before expanding, have we secured an organisational home, a suitable team and the capacity to deliver?

Production Structures

The structures and resources supporting specific stages of innovation, including idea sourcing, incubation, experimentation and external partnerships.

What good looks like

Teams can access support appropriate to the opportunity and stage. Idea sourcing reaches beyond existing markets, incubation has a clear mandate and links to the core, experiments receive resources quickly, and partnerships or acquisitions fill capability gaps.

1. How systematically do we find and capture promising ideas?
2. Can we give uncertain ideas room to develop?
3. Can teams run experiments that inform decisions?
4. Can we work with external partners when they bring something we need?

Governance and Controls

The mechanisms for managing individual innovation initiatives, the overall growth portfolio and resource allocation, and for improving the innovation system over time.

Idea Management

The governance mechanisms for reviewing individual initiatives, judging progress and making decisions on the next stage.

What good looks like

Criteria and deliverables reflect each growth type and stage, moving from early qualitative evidence to quantitative measures as uncertainty falls. Reviewers bring relevant expertise and perspectives. Dedicated resources and clear funding routes support different growth types, assessed under Resource Allocation.

1. Do we judge ideas by criteria appropriate to their growth type and stage?
2. Can teams get a timely decision on what happens next?
3. Do innovation reviewers bring the experience and perspectives needed to judge opportunities?

Portfolio Management

The systems for tracking and reviewing the innovation portfolio and updating priorities as performance and strategy change.

What good looks like

Leaders have a current portfolio view, manage towards financial and strategic goals and the desired growth mix, and link reviews with strategy. Regular external scanning informs decisions. There is a clear route to stop, exit or divest work that no longer fits.

1. Do we have a shared view of the innovation portfolio?
2. Do portfolio reviews lead to changes in priorities?
3. Do we examine emerging trends, disruptive threats and opportunities and use them to update our strategy and portfolio?

Resource Allocation

The systems for tracking, reviewing and rebalancing people, funding and shared capacity across innovation opportunities.

What good looks like

Different growth types have dedicated resources and clear routes to access them. Portfolio priorities guide allocation, and leaders monitor the use of shared capabilities so bottlenecks can be addressed as needs change.

1. Can teams access people and funding to test promising ideas?
2. Can we move resources when evidence or priorities change?
3. Do we know which shared capabilities constrain innovation, and how much capacity is available?

Continuous Improvement

The systems for assessing and improving the organisation’s ability to deliver innovation-driven growth over time.

What good looks like

Someone regularly assesses the ability to provide resources and support across initiatives. The organisation invests proactively in removing bottlenecks and follows a funded capability-development plan with actions and milestones.

1. Do we identify recurring bottlenecks across initiatives?
2. Do we test changes and share what works?
3. Do we have a funded plan, with milestones, for improving our innovation capabilities?

Leadership, Talent and Culture

The roles, skills, behaviours and ways of working that support innovation, together with the development, performance and reward practices that sustain them.

Leadership Behaviours

The actions leaders take to advance innovation and shape how people approach uncertain work.

What good looks like

Leaders give innovation sustained attention, connect it to purpose, support intelligent risk-taking and recognise success and learning. They observe customers, help resolve uncertainty, remove barriers and challenge assumptions while maintaining appropriate oversight.

1. Do leaders spend meaningful time on growth and innovation?
2. Do leaders model the behaviours they expect?
3. Do leaders directly observe and speak with customers about their needs?
4. Do leaders help resolve uncertainty and remove barriers that teams cannot address themselves?
5. Do leaders challenge established assumptions while setting appropriate limits for experimentation?

Innovation Talent

The skills, experience, attitudes and working habits people bring to innovation, and how teams are assembled.

What good looks like

Teams have the relevant experience, skills and size for their growth type and stage. People make time for innovation, take considered risks, learn from setbacks, question established approaches and seek different perspectives.

1. Do we staff innovation teams for the work ahead?
2. Can we bring in experience we lack?
3. Do people have time allocated to innovation alongside their other responsibilities?
4. Do people seek different perspectives and challenge established ways of working?

Measurement and Rewards

The measures, performance practices and incentives that recognise people’s contribution to innovation.

What good looks like

Innovation skills and behaviours are reflected in hiring, reviews, staffing and career progression. Recognition values intelligent risk-taking, learning and outcomes appropriate to the stage. Development and communication reinforce these expectations.

1. Do hiring and performance conversations recognise innovation skills?
2. Do rewards recognise useful learning as well as results?

Development Programmes

Training and practical learning that develop innovation skills, mindsets, behaviours and a shared language.

What good looks like

A clearly responsible group develops innovation capability and spreads expertise across the company. Learning combines practice, feedback and common concepts, with programmes tailored to leaders, practitioners and their experience.

1. Do people have a shared language for innovation?
2. Can people build innovation skills through practice?
3. Is someone responsible for developing innovation capability and spreading expertise across the organisation?

Culture Awareness

How the organisation understands and develops the everyday culture supporting innovation-driven growth.

What good looks like

The organisation regularly assesses the conditions for innovation and acts on what it learns. Priorities, efforts and results are communicated widely, and useful contributions and successes are recognised. Leadership and reward practices reinforce the culture.

1. Do we examine what helps or hinders innovation in everyday work?
2. Do we act on what we learn about the culture?
3. Do we regularly share innovation priorities, progress, results and learning across the organisation?

03 / Discussion

What should your management team work on first?

Use your indicative maturity profile to identify strengths, examine gaps and agree which changes to try first.

Bring this to your next management meeting

Complete the assessment independently, then compare the examples behind your answers.