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Transcript: - an Agile method MacCormack. A. (2012) Do You Need a New Product-Development Strategy? Benefits and problems with Agile Scrum includes 3 repetitive stages, iterating • Product backlog development - Alternative to business case or demand specification. • Main sprint – works from sprint backlog, which describe the set of priority features to be developed in the current sprint. While the sprint is on the way the backlog may not be changed. The main sprint can be broken down to sub activities. The sub activities are described on sticky notes on a scrum board. • Daily sprints – Every 24 hour a 15 minute stand-up meeting every team member briefly states what he/she has done since the last meeting, or he/she will do by the next meeting and what problems he/she is having. Following the daily sprint, the problems identifies in the meeting may change the scheduled sub activities to accommodate them. Karlström. D. and Runesson. P. (2006) Integrating agile software development into stage-gate managed product development Participating project managers indicate the major advantages and disadvantaged of the hybrid system, including: Advantages: • Increased flexibility. • Improved communication. • Better fit between process and tools. Disadvantages, challenges in implementing such system: • Projects were still delayed by hiccups in resource distribution. • Lack of fit between reward systems and methods. • Lack of an agile culture to support the implementation in their organizations. Study of 7 companies: 5 implemented Stage-Gate/Agile hybrid and 2 improved their existing Stag-Gate model. The companies that only improved their stage-gate model experienced little or no measurable change. Those implemented hybrids experienced major improvements. Interviewees at those companies implementing hybrids reported positive effects from the changes. A cross-case analysis suggest that these improvements may be correlated to: • Increased knowledge sharing and communication. • Improved resource coordination. • Increased visibility. • Team empowerment. Räisänen. C. and Linde. A. (2004) Technologizing discourse to standardize projects in multi-project organizations: Hegemony by consensus The Product Development Solution Framework Based on the findings an industrial scrum model is proposed, which is divided into 3 hierarchical planning levels: • Strategic project management - Project portfolio management and steering committee. - The company specific stage-gate model is maintained. • Value chain/project portfolio coordination - Is the tactical planning level, between product development teams and the operational organization. - Managing using a visual method, in which stakeholders from across the organization periodically meet at a physical board to coordinate resources. • Project execution - Managed using scrum methods and supported by a project manager. The Scrum Framework MacCormack. A. (2012) Do You Need a New Product-Development Strategy? * We seem to have forgotten that sometimes a practice can be good in one situation but ineffective or worse in another,one size doesn’t fit all. Different business contexts demand different product development processes and firms must strive to ensure that their product development approaches are better aligned with their business needs. The agile manifesto: 1. Individuals and interactions over processes and tools. 2. Working product over comprehensive documentation. 3. Customer collaboration over contract negotiation. 4. Responding to change over following a plan. The stage-gate system has transformed into an irreversible culture – specific praxis that becomes very difficult to question or contest. Conclusion: • Face-to-face meetings is a more powerful communication than written documents. • The Stage-Gate model in turn gives agile methods means to coordinate with other development teams and communicate with functions such as marketing and senior management. • The agile team must be prepared to interface with the gate model. • When combining agile with stage-gate, the need for documentation will always be there. In some cases the documentation can be eliminated, in others, it can be automatically generated. It should be treated as a development task. • Management sometimes fear the agile methods. • Universal acceptance is important for success – by making changes in small steps over a longer period of time • Integrating agile methods with stage-gate and thereby improving cost control, product functionality and on-time delivery. Advantages with Stage-Gate: Increased speed Better quality Greater discipline Better overall performance The traditional project model defines structures, roles and responsibilities, but do not answer the question how. This allows new methods and technologies to be explored within the organization. The agile methods must be able to exist within environments structured using gate oriented project models. Therefore Agile methods and Stage-Gate don´t have to be

Stage Gate #1

Transcript: Feasibility of Tier 3 Crops Source: Soil Properties Challenge Market Queens Local Markets Transportation Storage Processing plants Colorado School of Mines Human Centered Design Chemical Solutions and Processing Secure Feasibility Source: Value to end user Transportation Source: Source: All crops Prolonged storage Large investment (help select few) Culture conflicts Tier 3 Culture Enabling farmers in Northern Ghana and Burkina Faso to improve dry season horticulture methods by harnessing natural resources to maximize farming abilities and profitability. Cooling Capacity Sustainability Local vendor participation Low investment cost Already use grain cellars Prolong Storage Life of Potatoes Onions Okra Cabbage Labor No tomatoes or peppers Require space/land Security Power generation Educational opportunity Potatoes Cassava Cabbage Peppers Okra Onions Tomatoes Worldview Desirability Service options Northern Ghana Burkina Faso Tier 1 Rainy Season Few Rivers and Lakes Aquifers for Dry Season 6m at the end of rainy season 25m as the dry season ends Source: Water Storage Lower Temperature Watermill Constant, steady wind Reduce irrigation labor Prolong growing season Energy source Attachments Economic feasibility Crops IDE-Ghana Field Survey for IDE Program Development November 1-12, 2009 Viability Kitchen utensils Grain processing Underground Tubes Pressure Head Cost of goods estimate Water circulation Mill attachments Eliminates Cross Contamination Climate/Geography Market Sources Tier 2 Shea processing Windmill Calculations Fans in tubes Decrease Crop Spoilage Benefits Interests other than Farmers Sub-problem Market Impact Farmers IDE-Ghana Field Survey for IDE Program Development November 1-12, 2009 Source: Source:, Leslie Light Potatoes Okra Onions Cabbage Cassava source : Northern Star A.K.A. Pwalugu Steady Wind Rainy Season Hot and Dry Aquifers

Stage - Gate Process

Transcript: THANKS 4. Improve the effectiveness of Gates (Go/Kill decision points) 3. Revitalize fundamental research by making it more productive. Gates are the points where the team converges and where all new information is brought together. Effective gates are essential to the success of a new and accelerated product process, they are quality control check points with Go / Kill / Hold / Modify decisions. Gates provide the funnels, where mediocre projects are culled out at each successive gate, is where are managed the resources required by the project leader and the team for the next stage.. The Stage-Gate® product innovation process is an operational model for the management of a new product development (NPD) process from idea to launch. Its purpose is improve effectiveness and efficiency, by breaking down the effort into stages separated by management decision gates. Misconceptions About the Stage-Gate Process Currently best practices companies, replace their ideation process by a more proactive “Discovery Stage”, including: • An idea capture and handling system, where new ideas from inside and outside the company are provided to a focal person, the focal person brings these new ideas to gate 1 where they are analyzed, those that fit the company strategy will go to stage 1. This process enables the company to seek for differentiated and superior products with unique customer benefit. A good idea has a strong chance to yield a successful product. • Voice of the Customer Research to uncover new opportunities.” Big ideas are solution to solve big problems. Therefore, one way to begin is by focusing on your customer’s problems”. However, since customer rarely know exactly what they want, it is important to tackle their problems and their issues instead of asking about functionality and performance. One solution is to have the customer analyze a current product and determine all that is wrong with it, without being influencing by the company. • Ethno-graphic research, where the company observes the customer using the product at its limits, and experiencing their frustrations about them. • Establish valuable scenario of both present and future, and from them determine alternate scenario as well analyzing market change or market evolution that can partially or totally affect customer desires and therefore product requirements. Alternative scenarios should be assessed in term of best or worst one in the future, the different possible ones, and the type of technology they would require. Stages 1. Myths 2. Criticism about the Stage-Gate® process Criticism about the Stage-Gate® process Best Practices for Implementation Why so many companies implementing Stage-Gate® complain later that their products are not successful and put the blame on the process? The main issue is that their gates are not really a business decision point. These companies use the process as a tunnel and not as a funnel, like it should be the case. They rarely kill projects at gates, which results in too many projects and not enough resources and time to allow for a particular project coming from an outstanding idea. Following are some solutions that could reinforce gates and make them more profitable and useful in the process. • Incorporate tough gates. Insert “gates with teeth”, which means gates with tough criteria where the product capability and suitability to the business orientation is strongly assessed. • Make real decisions at gates. Often the criteria are correctly assessed and a Go decision is made, but the resources are not committed on time to the team. It happens when senior management doesn’t really understand that a go decision at a gate means that a commitment to make resources available had been taken. • Engage senior management. Senior management must be engaged in the NPD process and give visible and meaningful leadership support. Stages are where the action occurs. They are defined by the activities within them, and there is usually a prescribed list of actions for each stage. Stages are designed to gather information in order to reduce project uncertainties and risks, and to allow management to make a decision at the end of the stage and move forward with the project. Therefore, information requirements define the purpose of each stage in the process. 2. Harnessing the creative ability of your entire organization People complain that: Stage-Gate® slows projects and has high overhead. It seems like gates are put in place to slow projects, because a review is required at different steps during the process. And preparing information for these reviews requires working on large amount of paperwork, which disturbs the entire work schedule of team members. It emphasizes more form than substance in discussion and decisions. They report that the process is more focused on the flow of activities than their contents, and that decisions relate only to the stages outputs and not on the process details. They kill innovation. The process does not

Stage Gate Process

Transcript: Consumer's do not always know exactly what they need. Stage and Gate Progess focal person Voice of Customer in Discovery Stage The 3 U's #1: Undirected #2: Unfocused #3: Unproductive "A project management technique in which an initiative or project (e.g., new product development, process improvement, business change) is divided into stages or phases, separated by gates." 2 ROUNDS TO OUTCOME= usually 4-5 major ideas gate 1: initial screen Capturing and Handling Ideas FROM HOLD Average customer = Average idea Portfolio Management ????? idea vault Goal: By the end of day 2 / 3 find an MRG. FIND RIGHT BALANCE OF PROJECTS foundation If there is no Breakthrough..... 4 IDEAS Score Cards Are you working on the right problems? 3/4 of people are not... DISCOVERY STAGE ideas SELECT HIGH VALUE PROJECTS THIS score card "How do we say no to an idea?" 1) Idenify major trends or needs of customers and marketplace trends. 2) Identify relevent technological changes that will impact your market. periodic review and update SELECT RIGHT AMOUNT OF PROJECTS GO MRG Event Off-site company event made to generate mass profits. Stage-Gate Process "Where are our bosses?" Emerging technologies Clarity? Are goals defined? people in company By observing inneficiencies... to harness the creativity or a whole organization Like Googling:"The main idea of IT" ACCEPTED STRATEGIC ALIGNMENT Camping out with your Customers When it comes to products... The to success is... Effectiveness Phoenix Case "but we HAVE to do this" 1 How...? workshop 3 Branches to Improve in the Product Process: 1) Add a discovery stage to the front of your product process. 2) Make key research more productive 3) Improve effectiveness of Go / Kill decisions. -PRODUCTS -FEATURES -FUNCTIONALITY -PERFORMANCE IS IT CREATED? THIS KILL "How do we know an idea is good?" EURIKA!! "fly on the wall": ethnographic research / "a day in the life of" Definition: We are looking for LEADERS GOAL: Rid projects with low value. Handling System 3) Being more effective in Go / Kill Decision Points lead users STAGE 1 -Is this strategically important to the company? - Is this feasible? - Is there a likely reward? - Is it likely to be a success commercially? OVERALL 2) Making Important Research more Productive 1) Adding a Discovery Stage 3 trends 2 Create -> Develop -> Launch Major Revenue Generator 10/10 KILL

Stage-Gate Process

Transcript: 5 Stages 5 Gates Identify a large number of ideas Kill them through the gates It is a funnel; not a tunnel... Goal: Collect ideas that fit with strategic objectives through ideation techniques Contextual design Product managers External and internal sources Various ideation techniques Innovation Champion receives all ideas Usually the Stage-Gate@ Process Manager Takes ideas to Gate 1 A preliminary investigation Most often done within one month 5-20 person-days Less than $5-10k total cost Mostly desk research Lack of customer input & insights No VoC No iterations with user or customer Missing skills & competencies Project should never have been approved in the first place Key people needed for longer term projects no longer in company No attempt to go outside - to seek partners, alliances 44% of firms’ product development projects fails to meet profit objectives 32% of firms rate their new product development speed and efficiency “very poor” Only 27% rate their new product development profitability relative-to-spending as “high” 28% of businesses don't even measure their new product development performance results! Some are doing things right... Should meet criteria (Scaled 1-5, L-M-H) Strategic fit Technical feasibility Market attractiveness Competitive advantage ... etc. Largely qualitative (non-financial) A lack of focus - putting too many projects into the pipeline Work in Process (WIP) - a lot of projects in the pipeline, but not much happening to anyone of them ... in a queue Distance - between project team members Processing waste and 'red tape‘ Deficient work & errors Changing direction - scope creep and unstable product specs Where time is wasted in new product development? What is the Stage-Gate process? Outcomes: Decision to move forward to Stage 1 or into Vault Unstable product specs & project scope creep Chasing moving goal-posts Often due to lack of front-end homework Gate presentation What is the idea? Summary of Stage 1 expected activities (e.g. validations) Request for resources (people and $) for Stage 1 Gates are approval by the Gatekeepers to move to the next stage It is a commitment to allocate resources for the next stage (people and $) Approval criteria should be defined An healty gate process is declining ideas at each stage No real project teams, functional silos Each function trying to do its piece of the project No cross-functional project team in place, no project leader with authority No team accountability Must meet criteria (Yes/No-knock-outs) Within Strategic Mandate Minimum Market Size No show-stoppers Too many "Me-too", "ho hum" or tired, trivial new products No quest for competitive advantage No compelling value proposition for the user or customer Too much emphasis on extensions, modifications & tweaks – no excitement A portfolio of 'low hanging fruit' projects with low pay-offs Gatekeepers are mid-management X-functional group Why some succeed and some don't at innovation? Far too many projects in the pipeline - no focus Every project under-resourced People spread too thin Take far too long to market, corners are cut Not enough front-end homework Many assumptions, but no facts Little effort to validate assumptions re: technology, source of supply, market demand and need Often due to no time, no money, people too busy

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