1. Stage Gate - Lecture 21 Stage Gate – Lecture 2 Review Process © 2009 ~ Mark Polczynski

2. Stage Gate - Lecture 22 Strategic Technology Planning Scenario Planning Voice of the Customer Intellectual Property Generation Ideation Technology Roadmapping Strategic Technology Planning Scenario Planning Voice of the Customer Intellectual Property Generation Ideation Technology Roadmapping Strategic Technology Development Stage Gate Development Stage Gate Review Strategic Technology Development Stage Gate Development Stage Gate Review This Course: Strategic Technology Management

3. Stage Gate - Lecture 23 Scope of This Lecture Set: We focus on technology development, But the same basic principles apply to product development. This is about technology development and project review. It is about a system where project review is an integral part of technology development.

4. Stage Gate - Lecture 24 Stage Gate Process: 1.What problem are we trying to solve? 2.Stage gate development process. 3.Stage gate review process. 4.Review process cultural issues.

5. Stage Gate - Lecture 25 What’s the MAIN Problem We Are Trying To Solve? Many Small Projects In Many Low-Impact Products Out New Product Pipeline Before: Difficult to manage many small projects. After: Difficult to support many small products.

6. Stage Gate - Lecture 26 What’s do we want to have? New Product Pipeline Many Small Projects In Few High-Impact Products Out Question: How do we figure out which projects to keep?

7. Stage Gate - Lecture 27 Product Development Stage Gate Process Stage gate reviews

8. Stage Gate - Lecture 28 Technology Development Stage Gate Process Stage gate reviews Where projects get killed! Stage gate reviews Where projects get killed!

9. Stage Gate - Lecture 29 G1G1 S1S1 S2S2 S3S3 G2G2 Stage Gate Development Process Stage Gate Review Process Stage Gate Concept is Quite Simple… Put “Stage Gate Review” decision blocks in the process flow… So, how does a Gate work? Our topic

10. Stage Gate - Lecture 210 Continue S S Redirect Kill Hold G All the Gates work the same way… At 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.

11. Stage Gate - Lecture 211 Purpose of ALL Gates is to create BOTH of these curves: G G G Number Size This is very simple! So what’s the Big Deal?!

12. Stage Gate - Lecture 212 Stage 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?

13. Stage Gate - Lecture 213 Continue A A Redirect Kill Hold G How do we decide what the decision will be? - Continue? - Redirect? - Hold? - Kill? Let’s look inside of a gate

14. Stage Gate - Lecture 214 Is this a “good” project? All information needed? Yes No Kill Hold Continue Re-Direct What is its priority? YesHigh NoLow Three-Step Decision Process: Ask questions in this order. Does this project make business sense: ~ Strategically? ~ Financially? ~ Technically? Has the team completed all outputs in a quality fashion? What is the impact relative to other projects? Are people and money available?

15. Stage Gate - Lecture 215 Purpose of Stage Gate Review Meeting: Stage gate reviews… Are business decision meetings Are not project reviews Are not design reviews Are not performance reviews A key advantage of a well-deigned and well-executed stage gate process is that it makes the engineer/technologists an integral contributor to business decisions. This is absolutely essential in technology-driven businesses. About picking the projects that will have the biggest impact on your business

16. Stage Gate - Lecture 216 Purpose 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). Pet Projects

17. Stage Gate - Lecture 217 Stage Gate Review Executors (R): Running the current project Experts (R): Validating project deliverables Customers (V): Receiving next project outputs Suppliers (V): Asking for next project Investors (V): Paying* for next project Who Should Attend the Review? R = Recommend V = Vote * = “Paying” means providing money and/or people Note: a particular individual may play more than one role.

18. Stage Gate - Lecture 218 Typical Stage Gate Review Agenda: 20 min.Executor presentation and recommendation – All participants – Silent listening to presentation No 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!

19. Stage Gate - Lecture 219 Gatekeeper Rules of Order “Gatekeepers” are the voters at the stage gate review meeting. If gate review meetings degenerate to vicious attacks by gatekeepers on project teams… …then before long you won’t 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 rules…

20. Stage Gate - Lecture 220 Gatekeeper Rules of Order – Page 1 Gatekeepers 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 gate project report one week before the stage gate review meeting.

21. Stage Gate - Lecture 221 Gatekeeper Rules of Order – Page 2 Gatekeepers cannot require information outside of the scope of the stage being reviewed (e.g., can’t require Stage B information at Stage A review). Decisions must be made in accordance with the criteria for the gate, not a gatekeeper’s 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.

22. Stage Gate - Lecture 222 Gatekeeper Rules of Order – Page 2 You can “Hold” a project, but you can’t “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!