The Innovation Show Expected Value xV - Revolutionizing Innovation Metrics with Simon Hill
Sep 30, 2025
Simon Hill, author and innovation expert at Wazoku, shares insights on revolutionizing how businesses measure innovation. He introduces the Expected Value (xV) framework, designed to distill complex projects into finance-friendly metrics. Discover how to avoid "zombie projects" and the pitfalls of innovation theatre. Hill explains the importance of aligning innovation with strategic goals and demonstrates the role of AI in enhancing decision-making. Packed with real-world examples, this discussion is essential for anyone looking to prove the value of innovation.
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Financial Services Example Of Empty Metrics
- A global financial services firm invested millions across pilots but couldn't show bottom-line impact when pressured.
- The team had activity metrics and buzz but no system to translate work into P&L value.
Quantify Confidence With Evidence
- Confidence should be a quantified percent (0–100%) and based on empirical evidence, not gut feel.
- Prior experiments and learning can raise confidence via tradable 'credits' applied to new ideas.
Standardize Predicted Value Estimates
- Standardize predicted value over a set horizon (e.g., 3 years) and use t-shirt sizes when uncertain.
- Reverse-engineer value when you can't estimate it directly to create actionable PV figures.
