Wall Street analysts and investors should use the current earnings season to start asking CEOs and other leaders better, tougher questions about their innovation efforts and approaches to organic growth, according to James P. Andrew and Harold L. Sirkin, Boston Consulting Group (BCG) senior vice presidents and co-authors of the just-released Payback: Reaping the Rewards of Innovation (Harvard Business School Press, January 2007), which explores why innovation is top priority at virtually all companies, and is also a source of mounting frustration.

Mr. Andrew and Mr. Sirkin also believe that analysts and the investment community often ask corporate leaders the wrong questions about their innovation efforts — and fail to ask questions that could provide insight into why half of all leaders are disappointed by the returns on their innovation investments. Asking the right questions could prompt new thinking that leads to solutions and better innovation success, according to the authors.

James P. Andrew is a Senior Vice President and Director of The Boston Consulting Group, and heads the firm's global innovation practice. He has been with BCG for 20 years, in both the US and Asia. Mr. Andrew leads BCG's annual global Senior Executive Survey on Innovation (conducted with BusinessWeek), and works with leading companies around the world and across industries on their innovation strategies and related organizational issues. He regularly counsels senior executives on innovation culture, performance, and leadership.

Harold L. Sirkin is a Senior Vice President and Director of The Boston Consulting Group, and leads the firm's global Operations Practice. He has been with BCG for 25 years. Under his leadership, the firm has emerged as the foremost driver of client results in two areas critical to profitable growth-innovation and globalization. Mr. Sirkin previously led BCG's E-commerce and IT practices. He regularly counsels senior executives on innovation, globalization, operational capabilities, change management and leadership.

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