Stage-Gate Process

Abstract

The Stage-Gate Process (also referred to as Phase-Gate Process) is a project management tool, dividing the time horizon of a project into several information-gathering stages. These stages are separated by so-called gates, which represent go/kill/recycle decisions for the project. The concept was introduced by Cooper (1986) in his book 'Winning At New Products'.

The central background of the Stage-Gate Process is rooted in the fact that companies have limited resources (e.g. time, money & capital goods). To make effective use of the available resources and to manage risks, a firm has to develop its project portfolio in a manner that only the most promising/beneficial projects are put through. Regular Stage-Gate Processes include 4 to 8 stages, which can be conducted in parallel or can be skipped depending on the preferences of the company . The evaluation criteria at each gate are discussed upfront with the project group and are acted upon by the gatekeeper during a gate meeting. Each gate decision should be a objective process; anybody in the organization should come to the same conclusion.

A Stage-Gate Process is complementary to project evaluation methods that, for example, analyze resource availability, project-related risks or costs and benefits of the project. The method is also frequently used in combination with other project management tools, like Gantt Charts or Concurrent Engineering theory The process can be used in most project-related contexts, but gained a lot attention in the field of new product development as a strategic pacing method

Basic Elements of the Stage-Gate Process

The basic idea of a Stage-Gate Process is that the whole project is divided in a predetermined set of stages. These stages consist of groups of related activities that end in so-called gates. Gates are characterized as containing a set of deliverables or inputs, a set of criteria, and an output .

Stages Stages often consist of activities that follow the trajectory