Stage-gate* systems have two explicit and two implicit goals: Explicitly, they are to kill undesirable projects early, and to ensure that those projects which survive are properly resourced. Implicitly, they force senior management to focus on NPD at least occasionally, and they force the NPD team to get their house in order for an inspection once in a while.
All of which are worthy goals, but it’s a very blunt instrument. OK, for NASA, who started the whole thing rolling, or for the Fortune 500 companies that Cooper developed Stage-Gate with, blunt instruments are what is necessary, but in a small-business environment, phase review systems don’t achieve any of the goals as effectively as might be, while wasting a pile of resource.
- The control loop is very long, as the stages are concentrated at either end of the process
- Forcing senior management involvement is unnecessary in a small business – people with decision-making authority are involved on a daily basis anyway
- It’s inherently a batch process, which slows things down and reduces flexibility. 3rd generation systems go some way to addressing this, but they also reduce the systems effectiveness in achieving the other objectives.
I’m going to talk at some later date about the special characteristics of small businesses and what I think that implies for management systems, but suffice it to say at this stage that stage-gate is anathema to my idea of what you need. If you’re interested in a contrary view read this, but as far as I’m concerned there has to be a better way, and that’s one of the things I’m going to work on.
* Or phase review, or whatever buzzword you like. With or without a “TM” beside them.
