The Stage - Gate Idea - to - Launch Process – Update , What ’ s New and NexGen Systems

Stage-Gate has become a popular system for driving new products to market; but there are many misconceptions and challenges in using Stage-Gate. Challenges faced in employing Stage-Gate are identified including governance issues, over-bureaucratizing the process, and mis-applying cost cutting measures such as Six Sigma and Lean Manufacturing in product innovation. Solutions are offered, including better governance methods: “gates with teeth”, clearly defined gatekeepers and gatekeeper rules of engagement; and ways to deal with bureaucracy, including leaner gates. Additionally some of the misconceptions about StageGate – it is not a linear process, nor is it a rigid system – are debunked. Next generation versions of StageGate are introduced including a scalable system (to handle many different types and sizes of projects) as well as even more flexible and adaptable versions of Stage-Gate achieved via spiral development and simultaneous execution. Additionally, Stage-Gate now incorporates better decision-making practices including scorecards, success criteria, self managed gates, electronic and virtual gates, and integration with portfolio management. Finally, progressive companies are reinventing Stage-Gate for use with “open innovation”, while others are applying the principles of value stream analysis to yield a leaner version of StageGate. These pages contain copyright information of Product Development Institute inc. and member company Stage-Gate International, including logos, tag lines, trademarks and the content of this article. Reproducing in whole or any part of this document is strictly forbidden without written permission from Product Development Institute Inc. or Stage-Gate International. INTRODUCTION Most best-practice companies have implemented a robust idea-to-launch system, such as Stage-Gate (Griffin, 1997; Cooper, Edgett & Kleinschmidt, 2002b, 2005). The benefits of such a process have been well documented; indeed many well-managed companies, such as P&G, Emerson Electric, ITT and 3M, have prospered and profited from using StageGate. But benchmarking studies reveal that just as many companies have got it wrong – they missed key facets, principles and methods in the system. So it’s time to get back to the basics, to have a look at what Stage-Gate is and what it is NOT! That’s the major theme of this article: ensuring that users really do understand the Stage-Gate system and its principles, debunking some of the myths and misconceptions surrounding Stage-Gate, and at the same time, dealing with some of the problems and challenges that users face. The final part of the article shows what leading firms have done as they have moved beyond the traditional Stage-Gate process and evolved to the next-generation idea-to-launch system. Dr. Robert G. Cooper The Author: Dr Robert G Cooper is Professor of Marketing, McMaster University, Canada; ISBM Distinguished Research Fellow, Penn Stage University, USA; and President of the Product Development Institute. He is also the developer of the popular Stage-Gate system, used by hundreds of major firms globally. He is a prolific researcher and author in the field of new product management, and has published over 100 articles and six books on the topic. © 2000-2012 Product Development Institute Inc. Product Development Institute Inc. and Stage-Gate International are registered trademarks. www.stage-gate.com 3 Stage-Gate, in simplest format, consists of (Exhibit 1): • a series of stages – where the project team undertakes the work, obtains the needed information, and does the subsequent data integration and analysis • followed by gates – where Go/Kill decisions are made to continue to invest in the project. The model is very similar to that of buying a series of options on an investment. Initially, one purchases an option for a small amount of money, then does some due diligence, and finally decides whether or not one wishes to continue to invest. A series of these rounds of “due-diligence-and-buy-options” stage constitutes a Stage-Gate framework. A standard Stage-Gate system designed for major product developments is shown in Exhibit 2 (Cooper 2001). The process begins with an ideation stage, called Discovery, and ends with the Post-Launch review. Note that there are three stages – Discovery plus two homework phases – before serious financial commitments are made at the Go-to-Development gate. While the model in Exhibit 2 is for larger development projects, shorter versions exist for lower risk projects. What is Stage-Gate? A Stage-Gate process is a conceptual and operational map for moving new product projects from idea to launch and beyond – a blueprint for managing the new product development (NPD) process to improve effectiveness and efficiency. Stage-Gate is a system or process not unlike a playbook for a North American football team: it maps out what needs to be done, play by play, huddle by huddle – as well as how to do it – in order to win the game. Stage-Gate is based on the premise that some projects and project-teams really understand how to win – they get it! Indeed Stage-Gate was originally developed from research that modeled what these winners do (Cooper, 2004). But too many projects and teams miss the mark – they simply fail to perform. A closer inspection often reveals that these projects are plagued by missing steps and activities, poor organizational design and leadership, inadequate quality of execution, unreliable data, and missed timelines. So they need help – help in the form of a playbook based on what winning teams do. Stage-Gate is simply that playbook. Perspective: The Stage-Gate Idea-to-Launch Process – Update, What’s New and NexGen Systems Exhibit 1: Stage-Gate Consists of a Set of Information-Gathering Stages Followed by Go/Kill Decision Gates