There's only two things wrong with Stage-Gate processes: the stages and the gates
...But they're the future of innovation
In my last post I talked about how LEGO used a Stage-Gate process to improve the efficiency of its innovation process, and how it led the company to its first loss in company history. LEGO ended up being very efficient at putting out products no one wanted.
What's wrong with stage-gate processes? There’s only two things wrong with stage-gate processes: (1) the stages and (2) the gates! First, the stages start as a reasonable set of checklists and approval signoffs that ensure that all key tasks are done at each stage in the process. But what starts as a reasonable set of tasks and checklists grows over time to ensure that the most complex projects are done to the satisfaction of all involved parties. But simpler incremental refinements have to go through the same complex process. The overall system gets more and more complex, projects get bogged down, teams get more inwardly focused, and the customer gets ignored.
The second problem is that the gates often turn into Kabuki theater - stylized rituals where no project fails. Rather than reading a description of this, watch the boardroom scene from the movie Big where a product manager expecting a traditional review meeting gets blindsided by someone who truly understands what the customer wants.
The best solution to this is to make the whole process more flexible and customer-focused. In other words, make each stage in the process a sprint. This is exactly what LEGO did when it revamped its process in 2003-4 - it made each step in the process a time-boxed sprint with customer feedback a necessity for any major review meeting. What did you build, who did you show it to, and what did they think? Every stage in a stage-gate process should have sprint-like finish to it where the team shows something to somebody. That’s not the only material reviewed at the gate - you still need to review all the other financial, manufacturing, marketing, and other preparations. But it ensures that you’re building something that customers really want. And you’re getting from each gate to the next using whatever process you want.
How does AI change all this? Many of the tasks that are required in a stage-gate process can be done by one or more AI agents. The AI agent does all the necessary checklists and forms for you, and the output is much more professional and standardized. You still have to review, verify, and endorse the results but it's a lot easier when you have standardized analyses with clear citations and well-formatted results. Try it for yourself at one of the three best innovation support systems: ProtoBoost.ai, manus.im or narratize.com. You'll be blown away by the speed, quality, and depth of analysis in the results.
So stage-gate processes are here to stay. Think about it - no company should ever commit major resources to a project without regular review points. And every team needs to make sure it's doing all the necessary work to prepare for a market launch. But the old fashioned 90s-style stage-gate processes are going to be replaced by a much different beast in the years to come.
More about how to do that in my next post.