This article originally appeared on Forbes.

Innovation is the key to staying ahead of the competition and meeting the ever-changing needs of customers. To be successful, organizations must be able to effectively manage their innovation processes, from idea generation to commercialization. An Innovation Management Assessment (IMA) can help organizations identify gaps in their innovation capabilities and create an action plan for improvement.

An IMA based on ISO 56004 is a good starting point for organizations looking to assess their innovation strengths and weaknesses. This assessment should focus on the seven areas that an Innovation Management System (IMS) must evaluate to comply with ISO 56002; these include the Context of the Organization, Leadership, Planning, Support, Operation, Performance Evaluation and Improvement. Organizations that have not engaged in this process are highly encouraged to do so, especially if they are looking to become early adopters of the certification standard, ISO 56001, which will be available in 2024.

The process should entail a natural grading of your current innovation ranking. A good way of evaluating where you are in your innovation journey is using the Capability Maturity Model Integration (CMMI) approach. Organizations can gauge their maturity level in each of these areas, with level 1 being the lowest level of maturity and level 5 being the highest. The same thought process can be applied to the levels that highlight an organization’s innovation capability across the seven areas of concern with ISO 56001.

Photo: NASA

At level 1, organizations rely on the heroics of a few individuals to drive innovation. This is not a sustainable approach, as it creates a culture of dependence and hinders innovation scalability.

At level 2, innovation is mainly a departmental consideration, with mixed results that are not scaled across the organization. Unfortunately, 80% of organizations find themselves in these two levels, as per Study of Team Performance by Actuation Consulting LLC.

Level 3 is the ideal level for organizations to reach from an innovation management standard perspective in terms of compliance with ISO 56002 Guidelines and the upcoming ISO 56001 Requirements. At this level, they have established a Standard Operating Procedure (SOP) that has been implemented across the organization. This helps to create a consistent approach to innovation, with processes and procedures in place to support idea generation, evaluation and commercialization.

At level 4, organizations have achieved perfect alignment between their innovation investments and activities and the strategy of the organization. This helps to avoid innovation efforts that are later questioned or shortchanged by the leadership for not aligning with the company’s objectives.

At level 5, organizations have built feedback loops that drive self-improvement and continuously elevate their innovation capabilities.

As organizations gravitate towards building a functional unit for innovation, measuring and reviewing performance then become part and parcel of how innovation occurs.

It’s important to note that an IMA is not a one-and-done exercise. Instead, it should be viewed as a strategic undertaking that requires ongoing attention and improvement. Organizations can leverage other innovation management competency tests such as the innovation capability maturity model to continuously monitor and improve their innovation processes. With ISO 56001 right around the corner, organizations that take proactive steps to prepare themselves will be more capable of achieving and maintaining compliance, bringing them closer to being future-fit.

Sustainable innovation results and a solid return from innovation investments are critical to the ongoing and consistent success of any organization, but it requires a structured approach to be successful on an ongoing basis. An IMA is an effective tool for organizations to assess their innovation capabilities and identify areas for improvement. By using an innovation maturity model, organizations can gauge their level of innovation competency based on ISO 56001 and create an action plan to improve their innovation processes and achieve future-fit status. With a commitment to continuous improvement, organizations can develop a culture of innovation that drives growth and success in the long term.



Ludwig Melik

CEO at Planbox and author of the Future-Fit Manifesto. I help organizations build a sustainable culture of innovation. Follow me on Twitter or LinkedIn.