1st Edition

The Performance Management Systems Playbook Integrating the ISO 56002 and 56004 Standards Into Your Business Operations

By H. James Harrington, Frank Voehl Copyright 2024
    292 Pages 69 B/W Illustrations
    by Productivity Press

    292 Pages 69 B/W Illustrations
    by Productivity Press

    292 Pages 69 B/W Illustrations
    by Productivity Press

    The objective of the ISO 56002 standard is to provide a framework on how to build an innovation ecosystem that can be sustained over time. Similar to the quality management system that ISO established decades ago, this standard provides instructions related to best practices on how to establish an Innovative Management System within an organization. However, it does not provide guidance on how to implement and/or use the standard.

    The ISO Standard 56004 Innovation Management Assessment was designed to define the maturity level of an organization's Innovation Management System. The primary purpose of most Innovative Management Systems is to process a continuous flow of new and highly creative outputs that will meet external customers’ needs and expectations.

    The users of ISO 56002 and 56004 know that they are "what to do" documents. This book, however, shows you how to do it!

    Both ISO Standard 56002 and 56004 are focused on improving the organization's innovative management system. This book focuses on how to train employees on how to use the system to add value to the organization’s stakeholders. There are no books out on the subject – this book greatly assists managers, business leaders, entrepreneurs, and consultants seeking help in using the innovation management system effectively and efficiently. Essentially, this book presents an effective marriage between the innovative management system and how it will operate when it becomes part of the operating procedures.


    The Performance Management Systems Playbook




    Chapter 1: Why Innovate?.

    In a Nutshell


    Managing Change and Innovation.

    Introduction to Innovation and Open Development

    The Role of the Creative Commons.

    Today’s Dilemma.

    Addressing the “Unaddressable”.

    Factors Affecting Innovation.

    The Five Types of Innovation.

    The Three Subcategories of Innovation.

    TRIZ Five Levels of Innovation.

    The Doblin Periodic Table of Innovation Elements.

    Part 1: Four Elements Aligning with the ISC Creation Cycle.

    Parts 2 and 3: Preparation and Production + Delivery.

    Conclusions Related to Types of Innovations.

    Common Creativity Innovation Killers.

    Your Creative and Innovative Powers.

    The 10 S’s.

    Knowledge Management as a System..

    Introduction to Value-Added or Useful Versus Harmful.


    Orientation of Innovation Management to Future Consumers.

    The Rebirth of the Citizen-Scientist

    The Eight Fundamental Principles of Innovation Management

    Ensuring a Balance of Routine and Innovative Management.

    Barriers to Innovation Change Management.

    Innovative Change Management Introduction (ICM)

    Different Approaches to ICM...

    Five Types of Change Assessment  

    Why Businesses Should Care About ISO 56000.

    How Does ISO 56000 Help Businesses?.

    The Opportunity Center.

    Typical Objectives of the Opportunity Center

    Reinforcing the Opportunity Environment

    Opportunity Center Summary.  


    The Innovator’s Dilemma 1.1: Crossing the River and Back Again …..

    The Innovator’s Dilemma 1.2: Is the Glass Half Full or Half Empty?.

    The Innovator’s Dilemma 1.3: Nuts & Bolts Will Drive You Nuts …..

    The Innovator’s Dilemma 1.4: Cutting the Cake …..

    The Innovator’s Dilemma 1.5: Heads or Tails …..

    The Innovator’s Dilemma 1.6: The Prisoner’s Dilemma …..

    Chapter 2: The Innovation Systems Cycle (ISC)

    In a Nutshell:


    Levels of Innovation Complexity.

    The Innovation Systems Cycle (ISC) Explained.

    Phase I – Creation Phase.  

    Innovative Improvement Opportunities.

    Process Grouping 1 – Opportunity Identification.

    Inputs to Process Grouping 1.

    Team Roles and Responsibilities

    Ways to Identify Improvement Opportunities.

    Application to Your Organization.

    The Potential IMS Improvement Identification.


    Process Grouping 2 – Opportunity Development.

    Process Grouping 2: Opportunity Development Activities for Apparent or Minor Opportunities.

    Process Grouping 2: Opportunity Development Activity Block Diagram for Major Opportunities.

    Process Grouping 2. Opportunity Development Activity Block Diagram for New Paradigms and Discovery Opportunities 

    Summary of Opportunity Development

    Process Grouping 3 – Value Proposition.

    Inputs to Process Grouping 3: Value Proposition.

    Tollgate II: Concepts Approval.

    Process Grouping 4 – Concept Validation.

    Process Grouping 4 – Concept Validation – Activity

    Summary of Phase I – Creation.

    Phase II: Preparation and Producing.

    Tollgate III: Project Approval Supports the Business Case Analysis.

    Process Grouping 5 – Business Case Analysis.

    Inputs, Activities and Outputs of Process Grouping 5 – Business Case Analysis:

    Business Case Validation.

    Document Performance and Project Resource Requirements for Each Project/Program..

    Summary of Process Grouping 5 – Business Case Analysis and Tollgate III

    Process Grouping 6 - Resource Management.

    Inputs to Process Grouping 6 – Resource Management

    Process Grouping 6 – Human Resource Staffing Activity Block Diagram..

    Process Grouping 6 – Facilities Resource Management Activity Block Diagram..

    Equipment Resource Management Activity Block Diagram..

    Process Grouping 6 – Financial Resources Management Activity Block Diagram..

    Process Grouping 7 – Documentation.

    Summary Process Grouping 7 – Documentation.

    Tollgate IV: Customer Ship Approval.

    Process Grouping 8 – Production.

    Process Grouping 9 – Marketing, Sales, and Delivery.

    Typical Marketing Plan Table of Contents

    Summary of Process Grouping 9 – Marketing, Sales, and Delivery.

    Process Grouping 10 – After-Sales Service Activities.

    Process Grouping 11 – Performance Analysis.

    Tollgate V: Project Evaluation.

    Top Five Positive/Negative Innovation Change Impact Measurements.

    Process Grouping 12 – Transformation.

    The Innovator’s Dilemma 2.1: The Case of the Mayor & the Farmer’s Daughter

    The Innovator’s Dilemma 2.2:  Saving the Pills …..

    The Innovator’s Dilemma 2.3: Switching on the Lights …..

    Chapter 3: The ISO 56002 Innovation Management Systems Standard and KPIs.  

    In a Nutshell.

    Introduction to ISO 56002 Innovative Management Systems.

    Standard and KPIs.

    KPIs and ISO Systems.

    Front-line KPIs.

    Relationship of TIME and ISO 56000 Innovative Management Series.

    Some IMS Definitions.

    The 10S Model.  

    More about the ISO 56002 Innovation System Standard.

    Construction of ISO 56002 – Innovation Management System..

    Clause 4.0 – Context of the Organization.

    Clause 5.0 – Leadership.

    Overview of Clause 5.0 Leadership

    Clause 6.0 – Planning.

    Clause 7.0 – Support.

    Overview Clause 7.0 – Support

    Clause 8.0 – Operations. 

    Purpose Clause 8.0 – Operations.

    Overview Clause 8.0 – Operations.

    Clause 9.0 – Performance Evaluation.

    Purpose Clause 9.0 – Performance Evaluation.

    The Two Types of Performance Evaluation.

    Area Activity Analysis Methodology.

    Overview of AAA.

    Summary Performance Evaluation.

    Management Reviews.

    Clause 10.0 – Improvement.

    ISO 56002 Subclause 10.3 Continual Improvement

    Chapter 4- What Is Total Innovation Management Excellence (TIME)?.

    In a Nutshell

    Introduction: The Imperative for Innovation.

    Introduction to TIME.

    Tier I – Value to Stakeholders.

    Tier II – Setting the Direction.

    Tier III – Basic Concepts.

    Tier IV – The Delivery Processes.

    Tier V – Organizational Impact.

    Tier VI – Rewards and Recognition (Shared Value)

    The TIME Building Blocks.

    BB1: Building Block 1 – The Foundation.

    BB2: Building Block 2 – Innovative Organizational Assessment

    BB3: Building Block 3 – Innovative Executive Leadership.

    BB4: Building Block 4 – Performance & Cultural Change Management Plan.

    BB5: Building Block 5 – Commitment to Stakeholders’ Expectations.

    BB6: Building Block 6 – Innovative Project Management Systems.

    BB7: Building Block 7 –  Innovative Management Participation.

    BB8: Building Block 8 - Innovative Team Development

    BB9: Building Block 9 – Individual Creativity, Innovation and Excellence.

    BB10: Building Block 10 - Innovative Supply Chain Management

    BB11: Building Block 11 – Innovative Design.

    BB12: Building Block 12 – Innovative Robotics/Artificial Intelligence.

    BB13: Building Block 13 – Knowledge Assets Management  

    The Six Phases to Install a KMS

    BB14: Building Block 14 – Comprehensive Measurement Systems.

    BB15: Building Block 15 – Innovative Organizational Structure.


    The Advantages of a Good IMS.

    A Word of Caution.

    The Future of Innovation.

    Chapter 5: ISO 56004 Innovative Management Assessment.

    In a Nutshell:

    Introduction to ISO 56004.

    Seven Basic Principles that Guide Innovation Activities.

    Eight Basic Principles for an IMS Summarized.

    Clause 1.0 – Scope.

    Clause 2.0 –Normative References.

    Clause 3.0 – Terms and Definitions.

    Clause 4.0-- Reasons for Carrying Out an Innovation Management Assessment.

    Major Omission.

    Clause 5.0 Choosing the Innovation Management Assessment Approach.

    Selecting Assessment Approaches.

    Prepare with Purpose.

    Assessment Approaches.

    Selecting the Most Suitable IMA Approach.

    Assessment Objectives.

    The Breath and the Extent of the Assessment

    Assessment Focus.

    Expertise Involved in Assessment

    Clause 6.0 – The Innovation Management Assessment Process.

    The Innovation Management Assessment Cycle.

    Clause 7.0 – Prepare the Innovation Management Assessment.

    Clause 8.0 – Conduct the Innovation Management Assessment.

    Subclause 8.1 Set Up the Tool(s)

    Subclause 8.2 Data Collection (Qualitative and Quantitative) and Data Collection Tools.

    Subclause 8.3 Data analysis.

    Reference and Comparison.

    Data Interpretation.

    Clause 9.0 – Conclude the Innovation Management Assessment.

    Subclause 9.1 Document Findings.

    Innovation Management Assessment  Check List Based on 56004: 2019.

    Clause 10.0 – Improvement of the Innovation Management Assessment.

    Subclause 10.1 Recommendations for Improving the Innovative Management Assessment Should Be Recorded After Each IMA.

    Subclause 10.2 Determine the Roadmap to Enhance Future Innovation Management Assessments.

    Subclause 10.3 Implement Roadmap Actions.

    Summary Conclusions.

    Closing Thoughts.

    Some Final Thoughts Worth Thinking by H. James Harrington & Frank Voehl.

    Appendix A: Course Exercises for a TIME Workshop.

    Appendix B: Answers to The Innovator’s Dilemma.

    Appendix C: List of the Most Used and/or Most Effective Innovative Tools and Methodologies in alphabetical Order.

    Appendix D. Glossary.



    Dr. H. James Harrington is a very successful entrepreneur and performance improvement specialist

    Background: 40 years project manager with IBM, 10 years plus principal with Ernst & Young, member of 14 different boards of directors of successful and not successful organizations.

    Typical accomplishments:

    ■ Served in the US Navy, serial number 785-92-27

    ■ CEO of Harrington Hurd, and Rieker until it was (sold to Ernst & Young)

    ■ CEO, Systemcorp, Montréal Canada project software developers (sold the company to IBM)

    ■ CEO, Harrington Middle East (retired from a successful running business)

    ■ CEO, Define Property designed and constructed 30–50 story buildings until (sold to a competitor)

    ■ Led the redesign of the operating systems for the African Capacity Building Foundation in association with the World Bank

    ■ Appointed in 1984 as the first honorary official advisor to the Chinese

    government on quality.

    ■ William Clinton, Past President of the United States, assigned him to serve as The Investigator of Goodwill.

    ■ Led the redesign of City Gov. for Dubai to make it more customercentric.

    ■ Over 20 programs on YouTube

    ■ Author of over 60 books on performance improvement and innovation

    ■ Past President and Chairman of the Board of the American Society for

    Quality and the International Academy for Quality. Lifetime Honorary

    President of the Asian Pacific Quality Organization.

    ■ Chairman of the Board and President of the Walter L. Hurd Foundation

    ■ Seven performance improvement and/or student grants are named after him.


    Frank Voehl, President, Strategy Associates

    Brief Bio:

    ■ Certified as a Grand Master Black Belt in Lean Six Sigma and Innovation Excellence; has been an innovation coach since 2008.

    ■ Senior Counselor in Process & Innovation Management, Lean Six Sigma, Design for Six Sigma, Lean Manufacturing, Problem Solving, Accelerated Performance Improvement, and Policy Deployment.

    ■ Thirty-five years of practical experience in leadership for process enhancement, change management, and program development and operations leadership at FPL’s QualTec as COO, Strategy Associates CEO/President, 20-20 Innovation CEO, and COO/Chancellor of the Harrington Institute.

    ■ Chairman and Administrator for the US ISO TAG for Innovation Management called TC 279 from 2017 through 2022 year-end

    ■ Trained and coached thousands of teams in Lean Six Sigma, Problem Solving, Innovation Management, TQM, and Process Management. Teams generated over $100 million in savings and averaged over $250,000 each annually

    ■ Noted author and series editor of over 45 books and hundreds of articles and technical papers in the fields of innovation, business management, Lean Six Sigma, change management, and process improvement

    ■ Provided input on the original design of the Malcolm Baldrige National Quality Award and facilitated its crossover to other nations and regions, including the Bahamas, Japan, South America, Europe, and the Czech Republic.