Metrics for the emerging Creative Economy

Abstract

Purpose

Among the most important challenges for leaders is how metrics and analytic tools will help or hinder the transition to the Creative Economy. This paper aims to address this issue.

Design/methodology/approach

Many authors argue that commonly used financial metrics cause corporations to forgo crucial invests in market making innovation. Such indictments of the current system of metrics raise an overarching question: Does success in the Creative Economy require new analytic tools, or rather the application of different management mindsets?

Findings

The author believes the evidence indicates that success in the Creative Economy depends on a combination of different management mindsets and an improved deployment of existing tools.

Practical implications

In the emerging Creative Economy, making money and corporate survival depend not merely on pushing products at customers but rather on delighting them with continuous innovation so that they want to keep on buying. Financial metrics must not be allowed to subvert this goal.

Originality/value

The article suggests how a number of metrics and tools, if employed in the proper context, could promote a corporation’s success in the coming Creative Economy, a valuable lesson for leaders who must in turn educate shareholders and other stakeholders.

Citation

Denning, S. (2014), "Metrics for the emerging Creative Economy", Strategy & Leadership, Vol. 42 No. 5, pp. 18-27. https://doi.org/10.1108/SL-08-2014-0057