Stage Gate - Project Management - Rochester Chapter
Stage Gate - Project ManagementLeadership vs. ManagementWhen Noah heard the weather forecast he orderedWhat is the Differencethe building of the ArkLeadership that betweenwas Leadershipand Management?Then he looked around and said, “Make sure theElephants don’t see what the rabbits are up to.” that was ManagementSal SorrentinoThe Trane CompanyIT Director – Global Product Management and Distribution Systems
Project Management – Stage GateAbout the topic:A move from Gantt charts to stage gates: Sal will provide an overview of how the projectmanagement of new product launches has evolved at Trane over the years. Originally, theprocess included a standard Gantt chart of a hierarchical process that might or might notsucceed. Currently, a series of stage gates are developed for each project with all the stakeholders signing off on each stage gate. This change in direction has resulted in greater buy infrom key stake holders and a higher completion rate of approved projects. Sal will discusshow this change has affected stake holders, project leaders and project team members.“Project Management isn't just a way to organize and prioritizetasks it is a commitment to a goal and managing the eventsthat contribute to that goal.”
Typical Waterfall Project – Gantt Chart
Stage Gate / Milestone Review
Stage Gate Representations
A Closer Look at the Stage Gate ProcessWhat is a Stage-Gate process:A Stage-Gate System is a conceptual and operational road map for moving a new-productor project from idea to launch. Stage-Gate divides the effort into distinct stages separatedby management decision gates (gate keeping). Cross-functional teams must successfullycomplete a prescribed set of related cross-functional activities in each stage prior toobtaining management approval to proceed to the next stage of product development.How Does the Stage-Gate Process Work?Stages are where the action occurs. The players on the project team undertake key activitiesto gather information needed to advance the project to the next gate or decision point.Stages are cross-functional (there is no research and development or marketing stage)and each activity is undertaken in parallel to enhance speed to market. To manage risk,the parallel activities in a certain stage must be designed to gather vital information technical, market, financial, operations - in order to drive down the technical and businessrisks. Each stage costs more than the preceding one, resulting in incrementalcommitments. As uncertainties decrease, expenditures are allowed to rise and risk ismanaged.
A Closer Look at the Stage Gate ProcessGates The structure of each gate is similar:Deliverables: What the project leader and team deliver to the meeting. These are defined inadvance and are the results of actions from the preceding stage. A standard menu ofdeliverables is specified for each gate.Criteria: What the project is judged against in order to make the go/kill and prioritization decisions.These criteria include both financial and qualitative criteria.Outputs: Gates must have clearly articulated outputs including: a decision (go/kill/hold/recycle)and a path forward (approved project plan, date and deliverables for the next gate agreed upon).What are the benefits of using Stage-Gate ? Accelerates speed-to-market Increases likelihood of product success Introduces discipline into an ordinarily chaotic process Reduces re-work and other forms of waste Improves focus via gates where poor projects are killed Achieves efficient and effective allocation of scarce resources Ensures a complete process – no critical steps are omittedThe results:A more effective, efficient, faster process that improves your product innovation results.
Stage Gates are Pass/Fail/Prioritize
How Stage Gate teams are organizedSponsors – Executive Leadership (Business and IT) Must attend all Stage Gate Meetings Signature required to pass Gate Eliminates roadblocks Mentors the Team Drives Team to consensusStakeholders – Those most affected by the outcome Provide Requirements Perform User acceptance Testing Attend Stage Gate meetings to support Project TeamCore Team Members – IT and Business Assigned/Perform tasks in the Project Plan Attend Stage Gate Meetings Support Project ManagerProject Manager – Manages all Business and IT work Leads Stage Gate Meeting Assigns tasks to team members Ensures all Gate evidence is complete Drives team to Consensus Asks for approval to move to the next StageSME – Subject Matter Experts Participate in Discovery and Planning activities as needed Validate Requirements Can be part of User acceptance Testing
Trane PMM
What Benefits I have Seen? Reduced ReworkImproved Team BuildingImproved integration with the Business/CustomersReduced/Eliminated Communications issuesManaged RiskImproved Financial ControlImproved ConfidenceImproved Project Forecasting
What do you think? What questions do you Have? How do you feel about Stage Gates now? What will you take away from this discussion?
Project Management – Stage Gate About the topic: A move from Gantt charts to stage gates: Sal will provide an overview of how the project management of new
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This represents the stage of time tracked, but does not help to track "gate" information Milestones Within the project plan, you can setup milestones for each stage gate approval Using OOTB baselines, you can track the baseline gate approval date and the actual stage signoff Often we see a milestone "type" for stage gate .
