Innovation Accounting: What It Is and How to Get Started - Deepstash
Use IA in the early game

Innovation Accounting is a way of evaluating progress when all the metrics typically used in an established company (revenue, customers, ROI, market share) are effectively zero.

Innovation A...

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Recently learned about Innovation Accounting that's been recommended as the practice to adopt until thinking about metrics relevant to product-market fit.

Innovation Accounting: What It Is and How to Get Started

ideou.com

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What does IA help with
  • It provides a framework of chained leading indicators, each of which predicts success. Each link in the chain is essential and, when broken, demands immediate attention.
  • It’...

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  1. Use a simple dashboard of metrics that allows the team to track progress over time at the start of a project. It gives a basic sense of what’s working and what’s not. If customers won’t even t...

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1. Come up with some initial metrics. These should be simple and actionable and should not have to be related to one another.

For example, a number of customers interviewed and their rating ...

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ERIC RIES

“To truly transform our organizations and our way of working, we need to change our accounting systems, too.”

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A simple Level 1 dashboard

Here’s an example of a Level 1 dashboard looking at the first experiment done by a team building a lemonade stand and hoping for hypergrowth through the use of drone delivery and premium ingredient...

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Accountability is Key

Use the dashboard to hold your team accountable. Simply ask this question: Which metrics are improving over time?

For example, a team that’s trying to prove they can charge a price premium fo...

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