The recipe for portfolio growth
So what distinguishes companies that achieve growth from innovation and those that don’t? One factor is implementing more disciplined governance.
We identified 12 key governance rituals companies are practicing to effectively govern innovation.
Companies that govern innovation extensively delivered 2x revenue growth compared to those following a haphazard approach
We found that the 12% of companies that already adopt six or more rituals are achieving double the revenue growth of companies using fewer rituals.
In fact, when companies that aren’t governing innovation as extensively increase to six or more rituals, they expect to see their revenue growth catch up to those currently in the lead.
REVENUE GROWTH AND COMMITMENT TO INNOVATION GOVERNANCE
Revenue Trajectory (Past: 2013-2018 and Future: 2019 to 2023 Estimated)
It takes the right mix of innovation and governance
Some people fear that governance will stifle innovation. But in reality a systematic approach to managing innovation is key to greater financial impact.
When leaders align their future innovation investment strategy to the desired portfolio mix, they gain the power to turn innovation into a real advantage.
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