Stage Gate. Go from “go-kill” to “what percentage?”.

Stage Gate. Go from “go-kill” to “what percentage”

Darrell Velegol, PhD

2024apr18

Most companies use a variant of the Stage-Gate process to allocate their innovation budgets among projects. At each gate there is a checklist, which is very helpful. “Go-Kill” is the usual decision, although “Hold” and “Pivot” and similar words are sometimes used. However, there’s a middle way that can be readily incorporated, with a great increase in Probabilistic Value (e.g., median increase in profits). By having just a few numbers about each project, one can RAPIDLY analyze ALL projects SIMULTANEOUSLY and get the optimal budget for each project.

RESULTS: Optimizing the entire portfolio in this way can easily make a difference of >10% in IRR, often within the first week of working with it. Want to learn more? See this doc:

https://drive.google.com/file/d/1ncLytfgq4OC_P1KPy7GDjfAfqjcr3MMd/view?usp=sharing