This paper presents a goal-centered, participative approach for the development of R&D metrics that reflect the strategic goals of the company, helping to align the R&D efforts with corporate strategy. The approach combines two popular methods: the balanced scorecard from strategic management; and the goal question metric paradigm from software engineering. The approach uses the balanced scorecard as a framework for aligning the goals to corporate strategy. GQM is applied to each perspective, defining the goals, and deriving the associated questions and metrics. Benefits of the approach are that we get a balanced set of metrics, which is linked to corporate strategic goals, making strategy visible at multiple organizational levels. The participative nature of the approach increases commitment, and enhances organizational learning. The paper concludes with the authors' first experiences in applying this approach to the product development organizations of several Finnish companies.
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