![]() Usually they want to know that: the project is in line with the brand strategy, the product will provide a compelling customer benefit, the project has a reasonable chance of success, the customer will buy the product, the product can be made reliably at an acceptable cost, the project risks are understood and appropriately managed, and most importantly, the product will hit short- and long-term financial targets. In most cases, management intuitively knows what matters in making a decision. Calculated risks should be rewarded, so long as learning occursĪ balanced measurement system ensures that new product development team members will work together toward a common goal and that they will consider both the short and long term in making decisions.Įstablish standardized decision-making criteria and review forums.How the product is developed (the right steps were taken, quality of decisions, etc.), not just the outcome.Meeting both short-term and long-term financial and sales targets.Focusing solely on the long term, however, leads to other equally problematic issues (e.g., not launching anything because it’s never perfect or not having any current income to fund long-term projects). The downsides of rewarding just the short term have already been described. Rewards should be used to align new product development team members toward a common goal and should include a balance of both the short and long term. First and foremost, an organization must clearly and consistently reward the behaviors and outcomes it seeks. How to Make Good Decisions in New Product Developmentįortunately, proven and effective solutions exist for all of the previously described causes. In this part, we learn how to make good decisions. In the first part of this article, we learned how important it is to make good decisions in new product development, as well as the leading causes of poor decisions.
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