Developing new products is a complex and risky decision making process which involves a search of the environment for opportunities, the generation of project options, and the evaluation by different experts of multiple attributes, both qualitative and quantitative. To perceive and to measure effectively the capability of new product development (NPD) remains a real challenging task for business managers. The present study aims to improve the accuracy of decision-making in evaluating performance of innovative product development (IPD) practices under uncertainty. To provide fresh insight to fill some of the knowledge gaps in this area with particular focus on evaluating IPD performance from an organization perspective combined Analytical Hierarchy Process (AHP) and Performance Value Analysis (PVA) methodology is proposed. In this method, the AHP and PVA algorithms are combined where AHP is used to prioritize the elements and then using the prioritization value of elements along with key performance indices for each element, the performance of the system was evaluated by using PVA. To demonstrate the methodology to evaluate the organization’s IPD practices performance against the benchmarking organizations, the case study is considered.