`Innovation' has been the `perceived safety valve' for organizations to offset fierce competition in the market and to gain sustainable competitive advantage. However, it becomes very critical to evaluate innovation in terms of its fructification into key results for the organization. This article addresses the issue of drawing a correlation between innovation(s) delivered and performance achieved which may involve several critical decisions. The suggested model tries to address the risks involved in an innovation for obtaining a predictable and desired organizational performance resulting from innovation.

Innovation acts as a lifebuoy for all firms - big, middle and small. Every firm likes to develop certain ideas which may be perceived as unique by the stakeholders, namely employees and customers who contribute to the performance of the organization, provided the idea is not only accepted, but also drives the relevant action that precipitates the quantified and qualified results in favor of the organization. However, the phenomenon does not end here.

Proper evaluation of derived results against the desired ones are required to be done by the management team which must justify the innovation concerned, otherwise the material, financial and intellectual resources involved in the entire innovation process become futile. Such a crisis not only affects the financial stability, but may also influence the future performance of the organization due to the setback to the morale of employees.

This article recommends an `innovation audit', which defines a series of activities for every firm irrespective of its size, financial strength and even the existence of the so called `culture of innovation' with an objective to evaluate innovation directly with respect to the company's performance in terms of certain preset Key Result Areas (KRAs). The entire process at its highest dynamism is required to be assimilated as an inevitable activity that will bear the fruits of profitability and stability which the company is able to retain in the long run. This strong process intensive framework is thus essential to bridge the relation between innovation and company performance. Otherwise, the term `innovation' will just remain a fanciful affair, instead of being an effective instrument for organizational growth and glory.

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