A practical framework for evaluating innovation projects
Organizations have increased the search for innovation to promote the sustainability and to enjoy the benefits that it can bring. At the same time, characteristics inherent to innovation, such as being intrinsically risky and more erratic than other initiatives, require exceptional fault tolerance since it can bring exceptional results and great profits as well as it can lead to major failures or a return far below expectations. Additionally, there is a relationship between innovation and sustainability in the sense that innovation can generate value in the financial sphere, but also in social and environmental spheres. However, the decision makers normally consider only financial criteria to select and invest in innovation projects while it is not trivial to consider also social and environmental aspects in these decisions. In that context, this research presents a novel practical framework for evaluating innovation projects using sustainability criteria in order to support organizations in assessing and directing corporate resources for innovation projects. For that, financial, social, and environmental indicators were identified and combined with innovative ones, resulting in a total of 12 different indicators. All these indicators were organized in automatic and electronic worksheets developed with Microsoft Excel®. Then, when the data of an innovative project are inserted in these worksheets, the results are normalized and summarized in a sustainability score as well as are used to build a commented report. The practical framework is user-friendly and can contribute to increase innovation for sustainability practices in organizations.