Open the door wide to the success of your projects by using the Stage-Gate method

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

But some project managers think it's outdated, criticising its old-fashioned sequential approach, which is reminiscent of traditional methods. 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 minimise the risks involved in your projects.

See all software Project Management

What is Stage-Gate?

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

It primarily concerns the new product development process. Its aim is to provide an effective framework for the various operations, 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, which are treated as deliverables. These stages are separated by gates, which represent 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

Initially, ideas emerge from the minds of your employees. You then have to assess their feasibility and relevance using different criteria (market, value to the consumer, competition, etc.).

At this stage, you decide whether or not to embark on a particular project, and prioritise the different projects.

Stage 2: the concept

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

This is essentially a scoping phase, during which you :

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

Stage 3: Development

At this stage, the teams involved get down to the nitty-gritty: developing the new product, testing, etc.

This is also the stage at which :

• the production plan: to ensure that production runs smoothly and to anticipate any factors that may have an impact on it (availability of resources in particular) ;
• the launch plan: to provide a framework for 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.

Stage 5: Launch

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

This usually involves putting in place :

• a production strategy and process (determining the volume to be produced, for example),
• a marketing strategy to ensure your new baby hits 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 the factors relating to costs, deadlines, resources, risks, etc. Is the project still a priority?

In short, Gates can be likened to decision-making milestones, with the aim of arbitrating between the various projects in the organisation'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 mobilise the necessary resources.
• Hold: the Stage is not validated, work remains to be done to trigger the next phase.
• Recycle: to continue, it is necessary to go back to a previous stage.
• Kill: the project or deployment of the product is stopped for various reasons (the original need has changed, other projects have become a higher priority, etc.).

💡 Note: it is possible to adapt the model described above and reduce the project lifecycle (and therefore the decision-making milestones) by grouping several phases together. One example is the Stage and Gate Express process. 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 use tools such as project management software and PPMs.

This way :

• they obtain a real-time view of the progress of each stage ;
• They can structure and validate operations more easily;
• they can communicate seamlessly with the various stakeholders.

🛠️ Not all software supports the Stage-Gate methodology. If you want to use an adapted solution, opt for the Planisware Orchestra project portfolio management software, for example. Among other things, this tool enables you to launch Gate Reviews to monitor the progress of projects, and includes a Stage & Gate module to validate or invalidate the move to the next stage more easily. All this while incorporating all the essential project management functionalities (resource management, budget, planning, etc.) as well as an agile approach if you plan to mix methodologies.

The advantages of the Stage-Gate method

You structure your projects better

Thanks to its 5-phase structure, Stage-Gate encourages better project structuring. A genuine roadmap for teams, the method enables them to know where they are in the process and what the next steps are.

What's more, thanks to the Gates established at key points in the project, you can provide a perfect framework for the next stage based on objective, measurable criteria:

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

You manage the risks perfectly

Stage-Gate provides better risk management, and this is undoubtedly one of its main 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 an initial stage where everything seems a little vague (ideation), but the further you go, the more the objectives to be achieved and the tasks to be carried out become clearer.

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 organisation.

We have also 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.

Finally, its funnel system offers a degree of flexibility. While the product to be produced is defined early on in the process, the associated components, such as deadlines or budget, are specified along the way.

You create value

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

In short, every time you move on to the next phase, you need to rethink the way you deliver value and product innovation.

You encourage communication and collaboration

Thanks to the framework provided by Stage-Gate, communication is made easier. Where are we now? What have we produced? Where are we going and how? This visibility encourages collaboration, both internally between teams and externally with various service providers and partners.

All using a process that is simple 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 the good old classic project management methods, such as the V cycle or the waterfall model.

Doesn't Stage-Gate seem a bit old-fashioned compared to Agile? Agile methods, with their iterative and incremental approach, are more adaptable to changes that occur during product development (changes in 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 main 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.

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

See all software Project Management

In short, should you choose Stage-Gate?

As you will have realised, each project management method brings its own set of advantages, so it's up to you to choose according to your needs and the structure of your organisation.

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

But if you want greater flexibility, integrate agile best practices into each Stage. That way, you can take advantage of the flexibility offered by Agile, while at the same time gaining visibility and solid arbitration of priority projects.