8 Metrics for Managing Innovation: Lessons From Growth Leaders ^Top $3.6 billion of the $19 billion in revenue in 2011 came from their innovation areas. This has been an enduring change. In 2018, Whirlpool’s annual report announced the launching of 100 new products and in early 2019 the company reported 16 International Forum Design awards and five Consumer Electronic Show awards.  Why Is Innovation Performance So Hard to Measure? T here are four answers to this question: (1) Innovation is risky, (2) Innovation payoffs are in the future, and create real options that are hard to value, (3) Innovation metrics are imperfect, and (4) Innovation follows many pathways, including innovations in the value proposition and the business model. Each of these measurement challenges is rooted in the difference between ordinary capabilities (OC) and dynamic capabilities (DC). Ordinary capabil- ities are used to perform well-defined tasks and routines. They enable the efficient performance of core processes for production, supply chain man- agement, financial control and so on. They enable a firm to achieve “best practices.” Most performance metrics measure the short-term achievement of meeting goals for efficiency in these OC. Such metrics are inherently static and backward-looking. Dynamic capabilities represent the, “capability of an organization to purpose- fully create, extend or modify the resource base.”8 These capabilities enable organizations to sense opportunities sooner than rivals, seize them more 8 Constance F. Helfat (editor), Dynamic Capabilities: Understanding Strategic Change in Organizations, Malden MA: Blackwell, 2007; David J. Teece, "Explicating dynamic capabilities: The nature and mi- cro-foundations of (sustainable) enterprise performance," Strategic Management Journal, 28 (2007), 1319-1350 and David J. Teece, "The foundations of enterprise performance dynamic and ordinary capa- bilities in an (economic) theory of firms," The Academy of Management Perspective, 28 (2014), 328-352.