Measuring R&D in 2003

Abstract

OVERVIEW:As R&D executives cope with tight financial resources and demands for increasing new revenues, the pressure to measure their organizations increases. Metrics allow R&D leaders to optimize R&D's productivity and justify to the CFO and CEO their returns on continued funding. There are actually rich sources of appropriate R&D metrics for leaders to select from. By understanding the recent history of such metrics, leaders can use them to set the context for discussions with their CEO. Additionally, it has become evident that managing any form of intellectual capital utilizes common measurement elements. Consequently, R&D leaders are in an excellent position to help the leaders of other corporate functions develop metrics for their respective organizations.