Open the door to success for your projects using the Stage-Gate method

Stage-Gate, a project management and new product development process, has been tried and tested for many years now.

But some project managers think it's outdated, and decry its old-fashioned sequential approach, reminiscent of traditional methods. And yet, Stage-Gate is not incompatible with Agile, and can be a real boon to your success!

How do we do it? We'll explain how a simple "gate" can help you create value and minimize risk in your projects.

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What is Stage-Gate?

The Stage-Gate method was first introduced in 1988 by Robert G. Cooper.

It applies primarily to the new product development process. Its aim is to provide an effective framework for the various operations involved, and to create maximum value. Stage-Gate is still particularly used in the industrial sector, although it has now been adopted by various types of company for their project portfolio management.

To understand how it works, we need only look at its name:

• Stage,
• Gate.

Stage-Gate is structured around a series of successive stages, likened to deliverables. These stages are separated by Gates, materializing the decision-making meetings that enable (or prevent) the project to move on to the next phase.

How does the Stage-Gate project management method work?

The 5 stages of Stage-Gate...

In most cases, the Stage-Gate process comprises 5 stages. Let's take a closer look at what they are.

Example of a Stage-Gate process :

Stage 1: Ideation

In the beginning, ideas emerge from the minds of your collaborators. Then it's time to assess their feasibility and relevance, based on various criteria (market, consumer value, competition, etc.).

At this stage, you decide whether or not to embark on a particular project, and prioritize the various projects among themselves.

Stage 2: the concept

At this point, it's time to go into a little more detail, to determine how you're going to carry out the project you've selected and validated.

In short, this is the scoping phase, during which you :

• define more precisely the product to be created,
• analyze its profitability,
• plan the project.

Stage 3: Development

At this stage, the teams involved get down to the nitty-gritty of developing the new product, testing it and so on.

This is also the stage in which we draw up :

• the production plan: to ensure that production runs smoothly, and to anticipate anything that might have an impact on it (resource availability in particular);
• the launch plan: to frame the market launch of the new product.

Stage 4: Testing

Tests and validations are carried out to ensure the quality of the deliverable.

For this exercise, we recommend that you ask your potential customers for their feedback.

Step 5: Launch

The process comes to an end, and the new product is actually launched on the market.

This is usually accompanied by the implementation of :

• a production strategy and process (determining the volume to be produced, for example),
• a marketing strategy to ensure your new baby meets its target.

... and the 4 doors

Between the 5 stages described above, we find the famous gates. More concretely, these are meetings (sometimes called Gate Reviews) at which you take stock of what has just been achieved, and trigger the next phase by taking into account :

• the quality of the deliverables supplied,
• all factors relating to costs, deadlines, resources, risks... Is the project still a priority?

In short, Gates can be likened to decision-making milestones, with the aim of arbitrating the various projects contained in the organization's portfolio.

To achieve this, 4 types of decision are taken at these meetings:

• Go: the project is maintained, we must move on to the next stage and mobilize the necessary resources.
• Hold: the stage has not been validated, work remains to be done to trigger the next phase.
• Recycle: to continue, it is necessary to return to an earlier stage.
• Kill: the project or product deployment is halted for various reasons (the original need has changed, other projects have become higher priority, etc.).

💡 Note: it is possible to adapt the model described above and reduce the project lifecycle (and therefore decision-making milestones) by grouping several phases together. Take the Stage and Gate Express process, for example. It comprises just 3 stages (Stage 1 is grouped with Stage 2, Stage 3 with Stage 4), and is therefore ideally suited to low-risk projects.

Stage and Gate tools

To monitor the progress of project and product development, project managers, product managers and PMOs need tools such as project management software and PPMs.

This way :

• they get a real-time view of the progress of each stage ;
• they structure and validate operations more easily;
• Communicate smoothly with all stakeholders.

🛠️ Not all software supports the Stage-Gate methodology. If you're looking for a suitable solution, consider Planisware Orchestra project portfolio management software. Among other things, this tool enables you to launch Gate Reviews to monitor project progress, and includes a Stage & Gate module to more easily validate or invalidate passage to the next stage. All this while integrating all the essential project management functionalities (resource management, budget, planning, etc.) as well as an agile approach if you plan to mix methodologies.

Advantages of the Stage-Gate method

Better project structure

Stage-Gate's 5-phase structure makes it easier to structure your projects. A real roadmap for teams, the method helps them to know where they are in the process and what the next steps are.

What's more, with Gates established at key points in the project, you can frame the next stage perfectly, based on objective, measurable criteria:

• tasks to be carried out,
• planning and deadlines,
• resource allocation,
• responsibilities and roles.

You perfectly manage risks

Stage-Gate offers better risk management, and this is undoubtedly one of its key strengths.

Already, we're relying once again on the famous Gates, a validation process that's proving to be an excellent way of countering risk: you don't go any further if everything that's been done previously isn't ok, and you structure and adjust future operations as best you can.

Stage-Gate also implies an idea of progression, of a funnel. You start from a first stage where everything seems a little fuzzy (ideation), but the further you go, the clearer the objectives to be achieved and the tasks to be carried out.

You benefit from a flexible model

While the Stage-Gate model is particularly well-suited to industry, it can also be used to launch other types of product or service, such as software development. Similarly, the process can be adapted to different sizes and types of organization.

Secondly, we have seen that Stage-Gate is modular. Depending on your needs and the nature of the project, you can reduce the number of stages and gates.

Last but not least, its funnel system offers a degree of flexibility. Indeed, while the product to be produced is defined early in the process, the associated components, such as deadlines or budget, are specified along the way.

You create value

With Stage-Gate, you focus on products that really add value. In fact, the project can simply stop if the need has changed (or disappeared), or if it is no longer a priority.

In short, every move to the next phase requires a rethink, to ensure that value and product innovation are maintained.

You foster communication and collaboration

The framework provided by Stage-Gate facilitates communication. Where are we now? What have we produced? Where are we going and how? This visibility fosters collaboration both internally between teams, and externally with various service providers and partners.

All with a process that's easy to understand and implement.

Differences and compatibility with Agile?

The differences between Stage-Gate and the Agile method

A succession of stages... sound familiar? Of course, you're thinking of good old-fashioned project management methods, such as the V-cycle or the waterfall model.

Doesn't Stage-Gate seem a little outdated compared to Agile? Indeed, agile methods, with their iterative and incremental approach, are more adaptable to changes that occur during product development (changing customer expectations, for example).

Differences between Stage-Gate and Agile according to the Lx Sim website :

Towards compatibility? The Next Gen Stage-Gate approach

The good news is that it is entirely possible to combine the two methodologies, by implementing agility at each of the 5 major stages. In other words, the deliverables of each phase are achieved through sprints, allowing for feedback.

This is the approach advocated by the Next Gen Stage-Gate process.

So the two methodologies are not incompatible, and it's possible to benefit from the best of both worlds: visibility with Stage-Gate and flexibility with Agile.

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In short, should you choose Stage-Gate?

As you can see, each project management method brings its own advantages, so it's up to you to choose according to your needs and the structure of your organization.

Thanks to its step-by-step construction and the validations required between each step, Stage-Gate is suitable for all types of project, especially new product launches. The benefits? Better risk management and a focus on the value delivered.

But if you're looking for greater flexibility, integrate agile best practices into each Stage. In this way, you benefit from the flexibility of Agile, while gaining visibility and solid arbitration of priority projects.