Stage-Gate is a blueprint for organizations to move a new product from an idea to launch and beyond. The model primarily functions to provide a solution for firms to manage and control their product development process as well as improve their effectiveness and efficiency. Stage-Gate helps to divide the effort into various distinct and manageable stages which are separated by decision points called ‘gates’. In simpler terms, each project stage will be evaluated by the project sponsors to see if it should proceed to the next stage. 

• Stage-Gates provide a systematic process from idea to launch and help ensure quality throughout the product development process.

• Stage-Gates help establish a framework for making effective go-or-kill decisions in time to ensure that the company’s resources are being allocated to the best ideas and projects.

• Stage-Gates help to maximize opportunities for your new products in the market

• Stage-Gates help to reduce the development time for new products from concept to launch by reducing the number of rework that needs to be done. 

• Stage-Gates create transparency in the company’s portfolio of ideas and development projects.

• Stage-Gates help to promote effective communication between cross-functioning teams as well as external stakeholders such as customers and suppliers.

Stages

Similar to how a project is broken down into various phases, the Stage-Gate model breaks the new product development process into a series of manageable and simple stages with increasing resource requirements. These stages are where the project team undertakes the work, obtains the needed information, and does the subsequent data integration and analysis. Note that a Stage-Gate is not a relay race where one department completes their task and hands the project over to another department to continue but it is a cross-functional effort where team members from different departments work together to achieve the deliverables for each stage. 

Gates

The transitions between the different stages in the Stage-Gate process are monitored by the gates mentioned earlier. Gates are where the gatekeepers evaluate the current stage of the project in order to determine if the project should continue to be invested in. Gate reviews are usually conducted in the form of a review meeting where the gatekeepers would make the Go/Kill/Hold/Recycle decision at the end of the session. Another function of these gates is to put a stop to the development of weak projects in order to prevent unnecessary work. Each gate would have its own set of metrics and criteria for passing similar to a quality-control check in production. 

Gatekeepers consist of the cross-functional Leadership Team. For example, in ViTrox, the gatekeepers for IPD projects would be the Executive Review Board (ERB) members and would consist of top management as well as the respective BU heads. Gatekeepers are those that make the gate decision and decide if the project should continue. During a gate review meeting, the gatekeepers would independently recommend a gate decision and reach a consensus at the end of the meeting. 

There are commonly four types of gate decisions that would be made by the gatekeepers at the end of each stage. They include the following:-

Go

• The ‘Go’ decision authorizes the movement of the project to the next stage.

No Go

• The ‘No Go’ decision shows that the gatekeepers do not authorize the movement of the project to the next stage and eliminate it from further review. This means that the project is closed and the resources are to be moved to other projects. 

Hold

• Places the project on hold pending technical, marketing, or environmental changes. In some cases, the project may be on hold to allocate resources to other critical projects and resume at a later date. 

Recycle

• In certain cases, gatekeepers may end up sending the team back to the previous stage for further refinement prior to going for gate approval again. In other words, the project may be good enough to be developed further as long as certain improvements are made. 

According to ‘Winning At New Products (Creating Value Through Innovation)‘ by Robert G. Cooper, there are three types of Stage-Gates models. Depending on the scale of the project and product nature, a simpler model may be more suited for the project. The three types of Stage-Gate model include:-

Stage-Gate Full

Stage-Gate full projects are typically larger in nature,  with more uncertainty, and have somewhat higher risks associated with it. As such the project should go through all 5 full stages. Generally, Stage-Gate Full projects are designed for genuine new-product projects

Stage-Gate XPress 

In a Stage-Gate XPress, the Stage-Gate system would usually be reduced to three stages and three gate processes. The three stages in the Stage-Gate XPress would consist of the ‘Scope and Business Case’, ‘Development and Testing’, and ‘Launch’. Generally, the Stage-Gate XPress would be suitable for projects with moderate risks, such as product improvements, modifications, and extensions. 

Stage-Gate Lite

Stage-Gate Lite is the shortest model with only two stages which are the ‘Scope and Business Case’ and “Execute: Develop, Test and Launch’. The Stage-Gate Lite model is designed for very small projects, such as simple customer requests or salespeople’s submissions. Generally, these projects represent minor modifications to existing products, and though they may be small, collectively they often consume a substantial percentage of the company’s R&D resources.

• Clearly defined stages and activities within each stage.

• Clearly defined Go/Kill gates and Go/No Go criteria at gates.

• The deliverables are clearly defined for each gate.

• All necessary gatekeepers are designated for each gate.

• The process is visible and well documented.

• The process is adaptable and scalable.