The PDMA Handbook of New Product Development

21.4. Improving Gate Decisions

Recently, a study was undertaken on PDMA practitioners which asked them about gates and gate decisions in their respective organizations (Schmidt et al., 2003). Based on responses from more than 400 new product professionals, the following suggestions (and corresponding rationale) are offered for managing risk during NPD projects. This section of the chapter draws on the results of this study, as well as other related research.

• The PAC or gatekeeper team should consist of a different set of individuals than those actually conducting the NPD activities. Individuals that spend months or years working on a NPD project tend to get emotionally attached to it, making it difficult to view progress objectively. Additionally, individuals that have access to substantial resources are needed, typically higher-level managers, most of whom are not involved in the day-to-day NPD activities.

• Have clearly defined criteria (marketing, technical, and financial) that must be met, as well as those that should be met, at each stage. Agree on these, make them explicit (i.e., put them in writing) and available to others inside the organization but outside of the NPD team. Agreeing on them in advance and making them known to others help reduce runaway NPD projects (Bouldinget al., 1997).

• Have project continuation/termination decisions made by a cross-functional team rather than one person (such as the CEO). Teams generally make better decisions than individuals acting alone, ...