R&D is the lifeblood of technology-based companies, but the relationship between R&D spend and R&D output is not well understand and rarely measured. Through years of practical application and experience, Accel has developed a direct, intuitive way to measure R&D productivity. Much of R&D behaves like a factory so that simple manufacturing measurement techniques can be applied. We use a combination of capacity utilization and efficiency to measure a company’s R&D productivity.
With this measure, our clients can:
- Determine their relative R&D productivity and compare it to previous years
- Determine and implement methods to make immediate improvements
- Evaluate future productivity assumptions based on the relative growth of R&D expense and revenue in the long-range plan
- Determine whether current engineering headcount is appropriate given the product development pipeline
- Help CFO’s determine whether R&D budget increases are justified