The article examines the necessity of forming a mechanism of sustainable management regarding the innovative potential of industrial enterprises while taking into account the changes in life cycle phases, the influence intensity of the external and internal environment factors, and the decisions of the owners. The authors substantiate the need for focusing the management's attention on the innovation component of an industrial enterprise potential that should be presented in the form of a balanced key performance indicator system. Special attention is to be paid to the unconditional maintenance of the functioning sustainability. It is expedient to transform the manifestation of sustainability reserve in the form of innovative potential into the accelerated development of the industrial enterprise.