Abstract -- Improving 'Go / No Go' Decisions - Product-Development Executives Speak Out

Are you working on the right new-product priorities? It's a decision that shouldn't be left to chance. Yet studies have determined that as many as 88 percent of initial screening decisions made on new-product projects are deficient. It's a primary reason why the typical company wastes 46 percent of its product development dollars on ideas and products that either never make it to market or fail after commercialization.

We asked several Product Development executives to share some of their insights on ways to improve product development decision-making. Here's what they had to say.

"Keep Gate meetings focused on decision making, and avoid having them turn into impromptu design and project reviews, recommends Dennis Annarelli, R&D Director for Millipore. Millipore is a multinational bioscience company that provides technologies, tools and services for the discovery, development and production of new therapeutic drugs. When executives start drilling into the nuts and bolts of the project at hand, engineers often feel it necessary to reveal great detail about the project in order to satisfy senior level questions, Annarelli comments. This can take the meeting into a design and project review, and steal time from discussions on the value of continuing the project and the overall decision making process. Providing Gate Keepers with detailed project information for their review a week or more before the Gate meeting could preclude much of this diversion."

"A 'kill' decision is complicated with financial, marketing and even cultural implications," according to Lynn Lentino, Engineering Director and Process Owner at Black & Decker, a global manufacturer and marketer of quality power tools and accessories, hardware and home improvement products, and technology-based fastening systems. "The decision to keep going should not be made lightly, even though it is relatively easy to do this when you are a part of a multi-project company. Effective decision-making starts at the top, by installing experienced leaders in positions where their understanding of the business strategically will help in their decisions about an individual project in light of the whole business. Their perspective helps them see downstream toward what will happen later in the project or even as the product is produced."

Steve Monroe, manager of PDM systems for Baker Atlas / Baker Hughes INTEQ, a leader in oilfield services, providing practical technology to find, develop, produce and manage petroleum reservoirs, offers these three recommendations. "First, make sure the right person (or team) is making the decision. The decision maker(s) must have access to all of the data (such as strategic plan, technology road map, current development plans, etc.) to make an informed decision," Monroe advises. "Second, all decisions must be based on an objective evaluation. This includes validating alignment with strategic goals (long term view), assessing impact on current projects (tactical short term view), discerning mitigating factors (such as customer demand or perspective), and understanding the return on investment (financial view). If it doesnt meet the thresholds for your company, dont do it! Third, set time goals for making a decision. Procrastination is an art form in decision-making, and without accountability no decision is the easiest decision to make."

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