Touching upon and examining papers on the Stage-Gate system. (4) This is not an examination
What is the Stage-Gate system?
— Systematically organizing the purpose, functions, and background.
My own summary purpose.
1. What is the Stage-Gate system?
■ Definition
The Stage-Gate system is a management framework for new product and new business development
proposed by the Canadian management scholar
Robert G. Cooper.
■ Paper: Available (1990)
■ Title: “Stage-Gate Systems: A New Tool for
Managing New Products” (Business Horizons)
■ Overview: A process that divides new product development into multi-stage phases,
with decision-making points (gates) established at the end of each stage.
It was further systematized in subsequent books such as "Winning at New Products,"
and is now adopted by companies around the world.
■ Original text
■ Basic structure of the model
Stage: An activity phase for conducting hypothesis testing, market research, technical development, etc.
Gate: A decision-making point to evaluate the results and make judgments such as Go/Kill/Hold/Recycle.
What is important is that this system does not seem to be intended solely for
the purpose of "judging whether to continue investment."
In Cooper's explanation, gates are defined as "decision points to select high-quality projects and eliminate weak projects early." In other words,
Therefore, it is closer to the essence to understand the Stage-Gate system not as an "examination system," but as a
"decision-making framework that structures the development process".
■ Previous summaries can be found here
This time is a continuation of that.
6. Parallel Processing
Stage-Gate is not a serial type.
Cooper compares it to a relay race,
taking a critical stance on traditional development as a "baton-passing method."
Instead, he compares it to a rugby scrum,
stating that having multiple departments (R&D, marketing, manufacturing) move simultaneously
compresses time.
In other words, this is not just an examination system, but
cross-functional management design.
7. The content of Gate evaluation
1: The "Express Train" problem that won't stop
According to surveys,
37% of projects do not conduct business or financial analysis during the R&D stage, and
65% do not perform sufficient business analysis even just before commercialization.
Ideas start with limited information and vague criteria, and
once they start running, they become an "express train"
that does not stop until it reaches the final destination of market launch.
Feedback along the way is seen as an obstacle to be overcome.
2: The original function of the gate
In Stage-Gate, you cannot proceed to the next phase until the evaluation is complete.
Decisions are made consistently and fairly based on pre-set criteria, and a strong financial orientation is introduced in the latter stages.
If it functions properly, it can prevent the runaway of losing projects and concentrate resources on promising ones.
3: The role of the gatekeeper
Senior management must be able to make immediate decisions and quickly approve resources.
The gatekeeper is not just an examiner, but is considered to be someone who supports the direction of the project.
4: Thoughts after reading the paper
■ Do you want to strengthen the business, or do you want to persuade?
The checklist at the gate should be viewed as a tool for verifying business viability, but
many of the parties involved (especially salaryman-like planners tasked with verification)
often view the checklist and various points of feedback as "persuasion material to move to the next stage."
To put it bluntly, it is a management perspective versus an employee perspective.
This difference in perception leads to the system becoming a mere formality.
The reason for this perception might not be that the examinee's thinking is inherently like that
in the first place,
but because passing the gate check has become a KPI. (The means have become the end)
■ Responsibility for approving the premise
It is written that once the first gate is passed, senior management becomes a supporter.
In other words, as long as the premise does not collapse, support should continue.
So-called "pulling the rug out from under someone" should not happen.
I felt that the premise that it functions if evaluated properly is the core of the system.
Next time, I plan to read a critical paper on this Stage-Gate system.
Next time ↓↓