Proving ROI to Exco
Communicating venturing ROI to an executive committee: balancing financial returns with strategic value, and quantifying the soft stuff.
Which KPIs keep an executive team funding innovation when the results it wants are still years away?
The group dissected how to articulate the ROI of venturing to an executive committee: when to start measuring, how to frame strategic returns beside financial ones, and how to keep stakeholders on board through the uncertain early stages.
Five key insights
- 01Balance immediate returns with strategic value
Longer-term benefits of innovation are real but intangible, and the balance has to be made explicit.
- 02Quantify early-stage innovation carefully
Forecasts and market research reassure stakeholders, as long as they are framed as estimates.
- 03Align innovation with corporate strategy
Linking venture activity to strategic objectives is what demonstrates its value.
- 04Set and align ROI expectations at the outset
Clear definitions up front prevent misalignment and premature shutdowns.
- 05Quantify soft metrics
Talent morale, idea generation and investable concepts can be translated into potential financial impact with stories and scenarios.
Where to start on Monday
Write down the financial and the strategic ROI expectations for each venture before the next executive review.
Establish a regular reporting rhythm covering progress, risks and changes to anticipated ROI.
Pick one soft metric that matters to your programme and translate it into potential financial impact.
In members’ own words
“Regular updates and reports should be provided to stakeholders informing them about the venture's progress and any changes in the anticipated ROI.”
Be in the room for the next one.
400+ senior innovation and growth leaders, a roundtable every month, and a recap like this one after each.
Invite-only and complimentary for senior leaders in corporate innovation and growth.