# Stage Gate® Process
- A systematic process (blueprint) for moving a [[product-development|new-product]] project through the various stages from idea to launch.
- Adopted by over 70% of companies (best practices)
- Risk managed
- Decision process is incrementalized
```mermaid
stateDiagram-v2
direction TB
%% common
state "Stage 0: Idea Generation" as s0
state "Stage 1: Scoping" as s1
state "Stage 5: Launch" as s5
s0 --> s1 : Gate 1
s0 --> s0 : Spiral/Iteration
%% full system
f: Full System
state f {
state "Stage 2: Business Case" as s2f
state "Stage 3: Development" as s3f
state "Stage 4: Testing" as s4f
}
note left of f
High Risk
end note
s1 --> s2f : Gate 2
s2f --> s3f : Gate 3
s3f --> s4f : Gate 4
s4f --> s5 : Gate 5
s1 --> s1 : Spiral/Iteration
s2f --> s2f : Spiral/Iteration
s3f --> s3f : Spiral/Iteration
s4f --> s4f : Spiral/Iteration
%% x-press
x: X-Press System
state x {
direction LR
s2x: Stage 2
s34x: Stage 3&4
}
note left of x
Moderate Risk
end note
s1 --> s2x
s2x --> s34x : Gate 3
s34x --> s5 : Gate 5
%% lite
l: Lite
state l {
s2l: Stage 2
s34l: Stage 3&4
}
note left of l
Low Risk
end note
s1 --> s2l
s2l --> s34l: Gate 3
s34l --> s5
```
[[agile|Agile]] Stage Gate® Hybrid Model
## Concepts
- Stages
- Teams of people (core team)
- Completing critical activities
- Followed by analysis
- Leading to an interim Decision
- Gates
- Between each stage
- The team huddles
- Review deliverables
- Staffed by senior leaders
- Make decision: Go/Kill/Hold/Recycle
- Gate Reviews
- Critical product and project characteristics reviewed
- Progress to schedule
- Product performance metrics
- Projected product cost, margin, revenue, life-cycle costs
- Development program budget and schedule
- Important market, competition, and industry information
- Make decisions
- Successful Gate Reviews
- Gates must have **teeth**! -- Some project must be **ended**.
- Provide a clear and consistent process for making major decisions.
- Empower and provide resources for project team to execute the project
- Gatekeepers
- Key leaders
- [[income-statement|P&L]] Leader (GM or VP etc.)
- Product Development
- Manufacturing
- Marketing and Sales
- Finance
- Activities
- Ensure that products fit the company's strategy
- Review status of project activities versus commitments
- Approve, Cancel or reprioritize projects for next stage
- Allocate product development resources
## Myths or Weaknesses?
- Not a relay race with hand-offs (and dropped batons) between functions
- Not a rigid set of rules …. It’s a roadmap with detours common
- Not a linear process …..spirals and loops are critical
- Not a project control system … although project management techniques are used when needed
- Not more bureaucracy … not intended to generate unneeded paper
- Not stagnant … Stage-Gate is constantly evolving
## Stage 0: Idea Generation
- Fundamental research (perhaps directed)
- Voice of Customer (VOC) inputs
- Competitive analysis
- Internal brainstorming/ idea development
- Open Innovation
- Market disruptions (disruptive technologies)
## Gate 1: Idea Screen
- First decision to commit resources -- Preliminary and tentative
- **Gentle** screen with typical criterion
- Is there strategic fit?
- Is the market attractive?
- Is the project technically feasible?
- Are there any showstoppers?
- ==Gatekeepers both business and technical==
- Commit to spend a little money for information
## Stage 1: Scoping
- Quick scoping of project
- Preliminary technical assessment
- Analyze market opportunity and strategic fit
- Preliminary business assessment
- Small team
- Product champion
- Marketing
- Engineering/Technology
- Short duration (10-20 person days)
## Gate 2: Second Screen
- Criterion similar to [[#Stage 1 Scoping|Gate 1]] but more rigorous
- Based on results of [[#Stage 1 Scoping|Stage 1]]
- Includes "simple" assessment of [[roi|financial return]]
- Decision: Do we commit additional resources (\$) for more in-depth analysis
## Stage 2: Business Case
> Critical homework!
- Clearly defined product
- Functional specifications
- Voice of the Client (VOC) defined benefits
- [[advantage|Competitive advantages]]
- Often includes a [[concept-testing|Concept Test]]
- Determine feasibility of development
- Confirm [[#Stage 1 Scoping|Stage 1]] estimates
- Product costs
- Selling price/revenue
- Quality/reliability
- Projected unit sales
- Detailed [[project-planning|project plan]] -- resources, schedule, costs
- Detailed financial analysis
- Completed by cross-functional team... the Core Team
## Gate 3: Go to Development
- Review of all [[#Stage 2 Business Case|Stage 2]] actions
- Sign-off on product specifications and project definition
- Approval of resource allocations and staffing
- Last point to "kill, hold or redirect" project before major expenditures -- **The "money gate"**
## Stage 3: Development
- Design the product
- The "money phase"
- Execute project plan... meet commitments
- Includes concurrent engineering
- Manufacturing/procurement
- Quality
- Environmental
- Product marketing and launch plans
- Customer service processes
- Continuous customer feedback
- Build-test-feedback-revise loops
- Many spirals
## Gate 4: Go to Testing
- [[#Stage 3 Development|Stage 3]] activities reviewed in detail
- Quality of work
- Is product consistent with definition approved at [[#Gate 3 Go to Development|Gate 3]]?
- Review of revised financial projections based on [[#Stage 3 Development|Stage 3]] work
- Review of current status of market, competitive offerings etc.
- Decision to go to test
## Stage 4: Testing and Evaluation
- Validate product, production processes, customer acceptance and financials
- In-house product tests
- Field trials
- Pilot production
- Test market
- Revised financials
- Prepare for volume production
## Gate 5: Go to Launch
- Opens the door to commercialization
- Focuses on test results from [[#Stage 4 Testing and Evaluation|Stage 4]]
- Are test results positive
- Are launch and start-up operations solid
- Are all commercial operations ready
- Makes decision to produce and market product
## Stage 5: Launch
- Logistics pipeline is filled -- Materials and products flow
- Broad scale selling and production efforts -- Market reaction to product benefits, price etc.
- After sale support and follow-up -- Feedback on product performance, market acceptance, product adjustments required etc.
- Post Launch Review
- Project ended
- Typically 1 - 6 months post launch; Team disbanded
- Product now part of "normal offerings"
- Project and Product Performance Review
- Revenues, project expenditures, product costs, profits and timing versus commitments
- Strengths and weaknesses of project
- Lessons learned
- Project leader and team responsible
- Sometimes two reviews
- Right after launch
- 12 to 18 months after launch