This is the fifth and final posting in my series of “Five Steps to Technology Commercialization.” Earlier, I introduced a commercialization framework for new and innovative business development (click here to read it). The key objectives of Monitor phase are:
- Keeping an eye on how your business is performing
As the old management adage goes, you only improve what you measure. The success or failure of your business depends on what KPIs you monitor and what you do with them. Too many KPIs and you will be stiffled with analysis paralysis, too few KPIs and you will be shooting in the dark due to insufficient information. Finding the right balance and monitoring it regularly gives you the deep insight you need to manage your business.
- Responding quickly and effectively to what matters, and ignore all else
In contrast to the old management adage mentioned above, E.W. Deming says “you can only measure 3% of what matters.” So, you need to pick your KPIs carefully. The next step is creating a responsive culture, where ownerships and accountabilities are clearly defined, and response plans are articulated. Reactionary responses usually do more damage than what they fix, so plan out response thresholds and maintain a culture where accountability is king.
- Update and modify KPIs as market/business conditions change
Just like taxes and death, change happens whether you like it or not. Regularly review your KPIs and response plans to ensure that you are monitoring and taking action on what is relevant to your business.
Here is how you achieve these objectives:
Define key performance indicators and response plans
Define accountabilities and responsibilities
Create dashboards and monitor performance
Establish a rapid-response culture
Reward action, punish inaction
This posting concludes my series titled Five Steps to Technology Commercialization. I tried to give you a glimpse of a process that I have developed and have applied in a variety of cases. Naturally, devil is in the details. I hope the overview of the process helps you successfully deploy your own commercialization initiatives.
I welcome your comments on my blog. Please share this posting if you find it helpful. If you have any questions, comments or thoughts, I would love to hear from you.