Why our univenture metrics are broken, and how we can achieve better success by replacing them
As quality guru H. James Harrington said, “If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.”
But while many universities measure their success in venture creation, all but a few elite universities have achieved only modest impact. Given this gap, the authors suggest that universities, as well as their key stakeholders, should re-evaluate the prevailing metrics used to evaluate univenture. After all, using the wrong yardstick is certain to lead to wrong results.
To date, many universities have utilized a profit-oriented framework, focusing solely on two parameters:
- The number of new firms formed
- The amount of licensing revenue
Only evaluating these two measures limits universities and is not conducive to them effectively managing stakeholders.
To address these limitations, the authors develop a complementary hybrid framework that incorporates more diverse performance metrics, reflecting the needs of a wider variety of stakeholders, including faculty, administrators, entrepreneurs, politicians, existing firms, and stewards of the natural environment.
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About the Authors:
|Prof. Peter T. Gianiodis – Merle E. Gilliand Professor of Entrepreneurial Finance, Palumbo Donahue School of Business at Duquesne University;|
Associate Professor of Strategy and Entrepreneurship, College of Business and Behavioral Science at Clemson University
|Prof. William R. Meek – Associate Professor of Entrepreneurship, School of Business Administration at the University of Dayton|