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 regarding the project. 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 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 [1]
The concept was introduced by Cooper (1986) in his book 'Winning At New Products'. Cooper's idea was to optimize the project portfolio management capabilities of companies, by using a formalized decision-making approach regarding go/kill decisions [2]. The central background of the Stage-Gate Process is rooted in the concept of 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 includes 4 to 8 stages, which can be done in parallel or can be skipped depending on the scenario [3]. The evaluation criteria at each gate are discussed upfront with the project group and are acted upon by the gatekeeper during a gate meeting.
In the last 30 years Cooper invested a lot time in developing the Stage-Gate concept. His research created a huge support from both the academic as well as the industrial world regarding the Stage-Gate Process. Big companies, like Procter & Gamble (P&G) and 3M, have adopted the Stage-Gate Process to formalize their projects and have positively experienced the benefits of adopting the method [4]. One of the most recent developments is the definition of the concept called The Agile-Stage-Gate Hybrid Model, which combines the concepts of the Stage-Gate Process with elements introduced in Agile Project Management[5]
References
- ↑ Sharma, A. (1999). Central Dilemmas In Managing Innovation in Large Firms. California Management Review. Vol 41. No 3. pp 146-164
- ↑ Cooper, R.G. (1986). Winning At New Products. Addison-Wesley, ISBN 0201136651
- ↑ O'Connor, P. (1994). From Experience; Implementing Stage-Gate Process: A Multi-Company Perspective. Journal of Product innovation Management. Vol 11. pp 183-200
- ↑ Cooper, R.G. (2008). Perspective: The Stage-Gate Idea-to-Launch Process — Update What’s New, and NexGen Systems, Product Development & Management Association, Journal of Product Innovation Management. Vol. 25. pp 213–232
- ↑ Cooper, R.G. (2016). From Experience: The Agile–Stage-Gate Hybrid Model: A Promising New Approach and a New Research Opportunity. Journal of Product Innovation Management. Vol 33. No 5. pp 513–526
