stagegate(ppt文档).ppt

Stage Gate Review Process1Stage GateReview Process 2010 Mark PolczynskiAll rights reservedStage Gate Review Process2Integrating project execution and review processOften,project execution and project review are two separate processes.It is desirable to integrate these two processes,because you get:-Better project results,-Better project review decisions,-Faster decisions projects move faster,-Happier people:-Everyone knows the rules of the game beforehand,-Everyone follows the rules all the time,-Everyones expectations are kept realistic.Stage Gate Review Process3What Problem We Are Trying To Solve?Example:Eaton Corporation-10,000,000,000$10 billion annual sales,Goal:10%increase in sales per year,Driven by stock market expectations,And stock market is“main customer”in capitalistic system.That equates to$1B in new products per year every year!(compounded!)Stage Gate Review Process4Whats The Problem We Are Trying To Solve?Need new products that can“move the needle”.Hard to get to$1B by adding$1M at a time.You need 1,000 new products!Significant growth in many small increments is difficult to manage.Many low-impact products are difficult to support.Solution:Fewer high-impact projects.Stage Gate Review Process5Possibly the biggest cause for failure of good projects:Under-funding Lack of adequate resources.Inability to ruthlessly focus on only the best opportunities.Inability to identify best opportunities early in life.Stage Gate Development ProcessStage Gate Review ProcessStage Gate Review Process6Whats the MAIN Problem We Are Trying To Solve?Many Small Projects InMany Low-Impact Products OutNew Product PipelineBefore:Difficult to manage many small projects.After:Difficult to support many small products.Stage Gate Review Process7Whats do we want to have?New Product PipelineMany Small Projects InFew High-Impact Products OutStage Gate Review Process8Total NUMBER of ProjectsOverall Goal:Maximize Bang-For-The-Buck.Averagee COST Per ProjectEarly Project Life LateKill losers before you spend lots of money on themFeed the winners wellStage Gate Review Process9We must kill many of these projects but how do we discover which are the best?Many Small Projects InFew High-Impact Products OutStage Gate Review Process10Total NUMBER of ProjectsOverall Goal:Weed out projects that have low impact.Average IMPACT Per ProjectEarly Project Life LateProblem:We dont know the winners at the start of their life.Goal:Survival of the best.Stage Gate Review Process11What about small businesses?It doesnt matter if you are one of10,000 engineers trying to add$1B in sales for Eaton Corporation.Or Joe of Joes Garage Shoptrying to add$1,000 in sales.Trying to grow by$1,000 in$10 increments is hard to manageand hard to support when you are done.Stage Gate Review Process12Product Development Stage Gate ProcessStage gate reviewsStage Gate Review Process13Technology Development Stage Gate ProcessStage gate reviewsWhere projectsget killed!Stage Gate Review Process14G1S1S2S3G2Stage Gate Development ProcessStage Gate Review ProcessStage Gate Concept is Quite SimplePut“Stage Gate Review”decision blocks in the process flowSo,how does a Gate work?Our topicStage Gate Review Process15ContinueSSRedirectKillHoldGAll the Gates work the same wayAt the end of each development stage,you hold a stage gate review to determine if you should:-Continue:Go to the next stage,-Redirect:Go back to the previous stage,-Hold:Put the project on hold,-Kill:Kill the project.Stage Gate Review Process16Purpose of ALL Gates is to create BOTH of these curves:GGGNumberSizeThis is very simple!So whats the Big Deal?!Stage Gate Review Process17Stage Gate Review Execution:Review is usually a meeting.So-How do you make decisions?Who should attend the meeting?How do you organize the meeting?Stage Gate Review Process18ContinueAARedirectKillHoldGHow do we decide what the decision will be?-Continue?-Redirect?-Hold?-Kill?Lets lookinside of a gateStage Gate Review Process19Is thisa“good”project?All information needed?YesNoKillHoldContinueRe-DirectWhatis itspriority?YesHighNoLowThree-Step Decision Process:Ask questions in this order.Does this project makebusiness sense:Strategically?Financially?Technically?Has the teamcompleted alloutputs in aquality fashion?What is the impact relative to other projects?Are people and money available?Stage Gate Review Process20Purpose of Stage Gate Review Meeting:Stage gate reviewsAre business decision meetingsAre not project reviewsAre not design reviewsAre not performance reviewsA key advantage of a well-deigned and well-executed stagegate process is that it makes the engineer/technologists anintegral contributor to business decisions.This is absolutely essential in technology-driven businesses.About picking the projects that will have the biggest impact on your businessStage Gate Review Process21Purpose of Gate Review Meeting:Picking“winner”projects and killing“losers”.For“winners”,this is about:Making an investment decision(where to put money),Allocating and committing resources(where to put people),Assessing potential of project(all info needed to make good decision),not quality of project or product,Assessing risk of project (but“winner”may be high or low).PetProjectsStage Gate Review Process22StageGateReviewExecutors(R):Running thecurrent projectExperts(R):Validating project deliverables Customers(V):Receiving next project outputsSuppliers(V):Asking for next projectInvestors(V):Paying*for next projectWho Should Attend the Review?R=RecommendV=Vote*=“Paying”means providing money and/or peopleNote:a particular individual may play more than one role.Stage Gate Review Process23Typical Stage Gate Review Agenda:20 min.Executor presentation and recommendation All participants Silent listening to presentationNo discussion,but clarifying questions allowed.15 min.General discussion All participants Led by non-voting facilitator.15 min.Voter deliberation Typically voters only Led by facilitator.10 min.Tem briefing on decision and action items All participants Led by facilitator.1 hourYes,this can,and must,be met!Stage Gate Review Process24Gatekeeper Rules of Order“Gatekeepers”are the voters at the stage gatereview meeting.If gate review meetings degenerate tovicious attacks by gatekeepers onproject teamsthen before long you wont have any new projects!To avoid having this happen,gatekeeper rules of order need to be established and enforced(by review meeting facilitator).Here are some rulesStage Gate Review Process25Gatekeeper Rules of Order Page 1Gatekeepers must attend review meeting in-person or virtually,or your vote defaults to“Continue”.A substitute may be sent.Gatekeepers must review team presentation before*the meeting.Serious concerns must be communicated to teams before the meeting.No“surprise attacks”allowed in the meeting.No“cross-examination”allowed during team presentations.You are not trying to“break down the witness”in a courtroom.*Typically the project team sends the gatekeepers a stage gateproject report one week before the stage gate review meeting.Stage Gate Review Process26Gatekeeper Rules of Order Page 2Gatekeepers cannot require information outside of the scope of the stage being reviewed(e.g.,cant require Stage B information at Stage A review).Decisions must be made in accordance with the criteria for the gate,not a gatekeepers opinion of the project-no“pet projects”.Final vote must be unanimous.Gatekeepers must be willing to negotiate with other gatekeepers to make a decision.Stage Gate Review Process27Gatekeeper Rules of Order Page 2You can“Hold”a project,but you cant“Hold”a decision.The decision must be given at the stage gate review meeting.“We will get back to you later”is not allowed.“Continue”decision means that money and resources are committed!This is a promise that the team can actually execute the project!Stage Gate Review Process28Stage GateCultural IssuesStage Gate Review Process29Impact on MoraleSo,Stage Gate review is about killing off projects.You start with many small projects and end up with few big projects.This means that you kill off many projects.This can lower the morale of the engineers.You are killing off their great ideas!Stage Gate Review Process30Hey!Wait a minute!I didnt come here to have some guy tell me how to kill off my projects!WellYou are much better off helping kill off your own bad projectsbefore they get out of controlThan to have someone else kill off your good projectsbecause they ran out of money.Its your choice!Stage Gate Review Process31The Six Realities of Stage Gate Reviews:Even when you try to do everything correctly,some things will go wrong.Here are six different things to worry about.These tend to be related to:Organizational culture,Human behavior.Stage Gate Review Process32The Six Realities of Stage Gate Reviews:1.You allow resources migrate to last-stage projects,So you cant start new projects.2.You dont kill as many projects as you need to,So you cant start new projects.3.You put too many projects on hold due to lack of resources,So your new product pipeline clogs.4.Stage gate processes slow individual projects down,So people abandon the system.5.Project teams overwhelm system with info to support project continuation,So excess resources are consumed needlessly.6.Culture cant tolerate“failure-driven system”,So project teams refuse to participate.Final note:There are no magic solutions to these problems!Stage Gate Review Process33Example:Three-Stage Technology Development ProjectNumber of ProjectsAverage COSTPer ProjectEarly Project LifeLateStageNumberCost Per Project($K)Total Cost($K)A60503,000B152003,000C410004,000$10,000 4:1 Attrition 4:1 AttritionHow to spend a$10M budgetABCStage Gate Review Process34Your boss thinks he is spending all his money on Stage C.But actually,you must balance spending across all three stages.Even though most of the projects will be killed!This takes significant managerial courage.StageProjectsKilledCost PerTotal CostCost of KilledA6045$50K$3M$2.25MB1511$200K$3M$2.20MC41$1M$4M$1M$10M$5MStage Gate Review Process35Number of ProjectsKill projects at 4:1 attrition rate.From the preceding exampleEarly Project Life Late60154Stage Gate Review Process36You never kill as many as you intend,soNumber of ProjectsEarly Project Life LateGoalYou always have more Stage B and C projects than you can support,soYou never have enough money or people to start as many Stage A projects as you intend.RealityStage Gate Review Process37Reality:You never kill as many as you intend,So you never start as many as you intend.Management Perception:Poor Stage Gate Review Process,and/orIncompetent reviewers.But Also:Educational system trains us to never raise our hand unless we have the right answer.There is significant unconscious pre-process screening by project initiators.Many of the small projects at the front end are really pretty good.Bottom Line:You will have to discipline yourself to kill relatively good projects.Stage Gate Review Process38You want to have a good balance among the various Stage Gate Review decisions.You do not want the system clogged up with projects on Hold.Heres a possible example of stage gate targetsDispositionTargetContinue25%Kill65%Redirect5%Hold5%4:1 attrition targetStage Gate Review Process39Excessive number of projects put on hold due to lack of resources.This clogs up system with things that you will probably never get around to anyway!This is“lottery ticket management”.DispositionTargetRealityContinue25%10%Kill65%65%Redirect5%5%Hold5%20%At some point,you must kill these!Stage Gate Review Process40Lottery Ticket Management:Hey!You never know!This this lottery ticket(or project)might be worth$100,000,000!But it probably isnt,So kill it already!If you want to play lottery ticket project management,Then use your product development funds to buy lottery tickets,The odds are better!Stage Gate Review Process41G1A1A2A3G2I1I2O2O1Stage Gate Development ProcessStage Gate Review ProcessAlways use the Stage Gate processfor every project.Stage Gate Review Process42Stage Gate Reviews will slow projects down!Reviews are sequential events scheduled at specific times and attended by particular individuals,usually very busy individuals.Reviews usually grouped in bunches to accommodate reviewers.There may be significant project delays while waiting for the projects next gate review.This does slow things down.But killing bad projects earlier in the project ultimately frees up resources that would have been wasted on weak projects.So,projects slow down,but overall throughput increases.If you dont believe this,read The Goal,by Eli.Goldratt.Stage Gate Review Process43Long-Term ImpactIf you are going to do Stage Gate,Then everyone has to play by the rules.If people start going around the system for personal advantage,The system will collapse.Some projects will suffer,But in the long run everyone benefits.Stage Gate Review Process44In Stage Gate,you provide exactly the information that you needexactly when you need it.Whole idea is to spend as little money and time as possible to make a good(not perfect)decision.Goal:Never spend one penny more than what you need to get through the gate.Never spend one second more than you need.This is the“survive and advance”mentality.You only need one more goal than your opponent to win.Stage Gate Review Process45Big mental shift:This goes against human nature,Especially for engineers,who are taught to be highly risk-adverse.Tendency on part of engineers is to overwhelm decision-makers with too much information to justify continuing with the project.But here,you provide exactly the information that you needexactly when you need it.This takes courage on the part of the project team!Stage Gate Review Process46Goal:Most projects are killed best are preservedNumber of ProjectsAverage COSTPer ProjectEarly Project LifeLateStageNumberCost Per Project($K)Total Cost($K)A60503,000B152003,000C410004,000 4:1 Attrition 4:1 AttritionABCStage Gate Review Process47The vast majority of projects will be killed.People will see this as:Personal failure My project was killed,I must be a bad engineer,Disruptive and unsatisfying-Constantly starting new projects never“finishing”anything.Threat at performance review time -What am I being judged on?-What is“success”?What is“failure”?-What is“excellence”?Threat to job security Constantly killing projects implies an insecure position.This is the ultimate cultural challenge of Stage Gate!