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Stage Systems
The CARE™ Process
Description and
Testing
Go/Kill
Go/Kill
Whether a company adheres strictly to the "stage-gate"
system or moves the development process along according to
other guidelines, it's important to build in a way to abort
what may be determined to be a failed enterprise. This veto
mechanism is often referred to as "Go/Kill."
"One reason so many new product ventures fail is that
no one does truly rigorous scrutiny along the way," Webb
notes. "Instead, misconceived or needlessly expensive
projects are allowed to go through the pipeline until it's
too late to stop them. Unfortunately, when these flawed products
fall short in the marketplace, the costs are even greater."
What criteria apply to the Go/Kill decision? These include:
| Positive |
|
The project demonstrates unique
strategic value to company. |
|
The complexity of the project is manageable
and not excessive. |
|
High profitability is anticipated. |
|
The new product will be cheap and fast
to produce. |
| Negative |
|
The project doesn't align
with business strategy. |
|
|
The project fails to meet customer needs
better than existing products. |
|
|
The project doesn't leverage company's
technological resources and expertise. |
Goozé says: "Most entrepreneurs think the new
product development process goes from A to B -- A being an
original idea and B being execution. Often they say to themselves,
'All my ideas are great!' The hard truth is, not all ideas
are great. A product development system that involves careful
planning and prioritization, followed by a strong commitment
to marketing, significantly increases the odds of success."
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