A Governance Framework for the Idea-to-Launch Process: Development and Application of a Governance Framework for New Product Development

OVERVIEW:Many companies use some form of idea-to-launch process with staged gates for their new product development (NPD). This article reports the development of a governance framework for improving NPD decision making in complex product portfolios with short product life cycles. Refining governance Stage-Gate controls in six brand businesses in the footwear and apparel industry resulted in notable productivity improvement with management better able to find the “sweet spot” that balances creativity and control. A significant development is that cash profit growth is being planned from smaller product portfolios. The six brands reported an aggregate 49 percent increase in cash profit per product. Improving the level of governance controls in NPD can deliver improved portfolio cash margins and build greater confidence and conviction in product selection.