Six Execution Issues that will Hold Back your Organization in
2010
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| Freedom from
Project Surprises Newsletter - Issue #57 |
January 2010 |
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Welcome
to 2010! The last
year was one of survival, where many businesses failed or were on the
brink of
failure. All attention was focused on making ends meet, where cost
reduction
was the primary objective. The news of a 2010 recovery for the
semiconductor
industry has been increasingly positive and the focus will be turning
from
survival to "profitable" growth. What's on your agenda for contributing
to the efficiencies necessary for this goal? To stir your thoughts for
2010 objectives this newsletter will share my observations of the
high-level execution barriers semiconductor new product development
teams are facing.
Jeff Jorvig, IC NPD Coach
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News of Interest to New Product
Development Teams
Leadership Quote of the month:
"If
I had to sum up in a word what makes a good manager, I'd say
decisiveness. You can use the fanciest computers to gather the numbers,
but in the end you have to set a timetable and act."
-- Lee Iacocca |
Six Issues that will Inhibit Profitable
Growth in 2010 - Be Ready
Over the years I have learned a great deal about the
challenges that many organizations face in new product development.
Interestingly, there are far more similarities than there are
differences
within the numerous companies I am in routine contact with. Below you
will find a
synopsis of the six most common execution barriers I see in product
development
organizations as of the end of 2009. As you read, honestly look for
similarities to your organization and decide what you will be doing
about them in 2010, the year of "profitable" growth. Some organizations
are aware of these systemic issues and are taking
action, some are just painfully aware with limited action towards a
solution
and others are blissfully unaware; where is yours?
Focusing on Cost
more than Revenue Generation
 Every decision
about making improvements to project
execution comes down to incremental cost, seldom about increased
revenue
potential. Issues that are constantly disrupting projects are rarely
put in
terms of
prospective income that is left on the table; a figure that I assure
you
will command attention. Building a pure incremental cost case to make a
decision leaves out one of the greatest motivators there is, the cost
of doing
nothing. Consider
not
the
cost of fixing something, but
the
cost of not
fixing something.
A revenue based case (investment) will always provide the best decision
and measurement base for any proposed change. If an improvement can't
be aligned to revenue generation, then it truly has no value.
Who Owns the NPD
Process?
Organizations of today are extremely compartmentalized by
functional area, creating artificial boundaries of responsibility and
ownership. Problems with
product development execution are often solved in a localized manner,
limiting true cross functional solutions to the full New Product
Development (NPD) cycle, from concept to revenue. The
net result is that improvements may have limited positive impact on
revenue,
even though they appear as significant improvements from a lower level
view.
Where does ownership of the entire NPD process reside? If your answer
is
project managers, that may not be a valid assumption. I have seen many
cases
where project managers have boundaries of reach into functional areas
and
across the full development process. Is the owner of
your total development process implied or explicitly identified?
Make sure the keeper of your NPD process
is crisp about ownership, responsibility, objectives and empowerment.
This individual must
remain vigilant at identifying roadblocks and providing solutions for
the
overall process, from concept to revenue. "Not my problem" is a phrase
the properly armed process
owner will never be heard saying!
Limited
Organizational Learning
 Organizational
learning is defined as the open minded ability to explore
and adapt to new and fresh approaches to project execution. Learning
also
includes the capacity to improve the current project work flows by
uncovering
barriers, discovering root cause and developing solutions to remove
execution
roadblocks as a continuing source of disruption. Many organizations
simply do not
have the time, motivation or expertise to develop into a learning
organization.
A learning deficiency firmly promotes the status quo, further expanding
the
incestuous pool of same thinkers that stymie organizational growth. Learn to
learn and prosper, or fail to learn and "try" to catch up later.
Proactive or reactive; it really is a choice.
Overdependence on
Tools and Methods as the Solution
There is a preponderance of emphasis on tools and
methodologies to fix everything that ails NPD
execution. Although tools and methodologies are a significant enabler
of
success, they become a band-aid for underlying people interaction
issues. Tools
are
no
substitute
for promoting member participation in solving the issues
that
personally impact them, an area often glossed over and ignored as tool
solutions take center stage. Learn to learn from those that are
in the trenches
working on new products, listen to what they have to say. Most
execution issues
are people issues - lack of clarity, lack of expectations, lack of
communication and a lack of involvement. It's a people thing!
Acceptance of
Schedule Failures
Schedule
Failure defined: Not meeting revenue
projections (timeline or amount).
I am very firm on this definition and no other description is valid.
Anything less and your organization will lose the proper focus! The
pressure to meet schedules
is intense, yet most projects slip and the common belief is that the
project
must not have been properly planned, or the team did not live up to
their
"commitment". That's typically the end of the story. The truth is that
the
reasons for a schedule failure are rarely analyzed, although there
would be a
wealth of information to be gained in doing so. Reality - schedule
failures are both
expected and accepted, though no one would dare speak that truth in
public. Tolerance
will
always
breed
inaction; either a schedule is gold or it is coal - what's
it
to be?
Living in the
Problem, not the Solution
 Many
organizations will talk about known problems for months
or years, never taking the next step towards a solution. This extended
period
of time wallowing in the problem usually comes down to a lack of
ownership, an unrealistic focus on cost, or a
belief that the origin of the problem is elsewhere, further
strengthening
inaction. To put it in simple terms - If the problem is affecting you,
it's
your problem and what are you going to do about getting it solved? Why isn't
now the perfect time to move from an incessant discussion about the
problem to
getting it solved?
Fear of change allows the problem to prosper. Understand the sources of
the fear, face them head on and put them behind you. Step up to the
plate and hit the problem out of the ballpark!
There you have it, my observations of the
most common afflictions I see in product development organizations.
2009 saw
many businesses either failing or on the brink of failure, small local
businesses as well as large corporations. What brought them there? If
you
believe it was the downturn, you are likely one who lives in the
problem. If
you believe they contributed to their own demise, then you may be one
who
strives for solutions. In 2010 "profitable" growth will definitely mean
things
will need to be different than 2009. What are your plans?
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| How I
can Help
"Providing solutions to the systemic project challenges that
quietly steal early revenue opportunity"
- Solutions to
Problems
- Discovery
& Solution - Do
you need to find and remove the the barriers to a predictable and
streamlined new product flow? Maybe you need to understand the history
of past failed project activities. Our Discovery & Solution
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- Requirements
workshops
- I will facilitate the timely closure of a high quality set of
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Contact me today via email, 480-895-0478 or
877-895-0478 |
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Feedback
To increase the value of this newsletter for you I would like
to hear your comments.
- What do you like or not like about this
newsletter?
- What subjects would you like to see covered in
the future?
- How is the format?
- Ask me a question related to new product
development and I will anonymously post and answer it here in this
section.
Please email me here with any questions,
comments or suggestions that will help me better serve my readers. I
would enjoy hearing from you.
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