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'[1].
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 [2]. 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 proejct management tools, like Gantt Charts or Concurrent Engineering theory [3] 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 [4]
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. 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 [5]. 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[6]
References
- ↑ 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
- ↑ Thamhain, H. (1996). Applying stage-gate processes in concurrent engineering. Wescon/96. pp 2-7
- ↑ Sharma, A. (1999). Central Dilemmas In Managing Innovation in Large Firms. California Management Review. Vol 41. No 3. pp 146-164
- ↑ 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
