Innovation in Sales

I've been reading more from Ron Baker on valuing the knowledge worker vs. mesuring what he or she does. This article is great: Broken Speedometers: Quantifying Knowledge Worker Effectiveness?

Instead of writing a blog on Innovation in Sales I will quote Ron here.

Innovation Sales "measures revenue from services introduced in recent years, and measures the firm’s innovation in offering additional services to its customers. It is an essential measurement to determine the lifetime value of the firm to the customer. For example, Hewlett–Packard wants 50 percent of its revenue from products that did not exist two years ago. Intel achieves 100 percent of its revenues from products developed within the last three years. 3M targets 30 percent from products that did not exist four years ago.
Firms spend an enormous amount of resources measuring billable hours, realization rates and other internal metrics, but we have found very few that measure innovation sales and make it a key component of its strategic vision. This is not to say firms are anti–innovation, it is more a matter of not being pro–innovation, by not having measurements and reward systems in place to encourage this behavior. Innovation is essential to creating new wealth."

For the full article click here