Meaning
Project management checkpoints divide a complex development process into discrete phases followed by a formal review. The stage gate system requires a team to meet specific criteria before they are allowed to move to the next level of investment. It acts as a filter that prevents the waste of resources on projects that are no longer viable.
Decision Point
Senior leaders evaluate the progress and the business case at the end of each work period. At every stage gate, the project is either approved to continue, sent back for more work or terminated entirely. This ensures that only the most promising ideas reach the production phase.
The review board focuses on the technical feasibility and the market potential of the product at every one of these junctures to protect the capital of the firm.
Deliverable Requirement
Documentation and technical results must be submitted in a specific format for the review board to consider. The requirements for a stage gate become more demanding as the project moves from the initial concept to the final launch. Early gates might only require a market survey, while later gates demand a working prototype and a manufacturing plan.
Risk Mitigation
Forcing a pause in the workflow allows the company to adjust to changes in the market or the technology. A stage gate prevents the momentum of a project from carrying it past the point where it still makes financial sense. It provides the discipline needed to stop a failing effort before the costs become excessive.
