The most important R&D performance metrics
January 17, 2011
Engineering utilization, productivity and throughput are among the most important metrics for measuring R&D performance. If you want to improve your R&D capability, focus on these three metrics.
Productivity and utilization directly determine throughput, and throughput is the most important of all R&D performance metrics. It measures the rate at which an R&D team develops production-ready products. The higher the productivity and utilization, the higher the R&D throughput. Higher throughput means the R&D team churns out more products in a given period of time. That usually translates to revenue and profits— assuming the rest of the enterprise pulls its weight. Big assumption, right?
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