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Which comes first, the org chart or the development process?
Freedom from Project Surprises Newsletter - Issue #52 August 2009
In This Issue
News
Development Process Focus
Priority on Development
How can I Help?
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Which came first - the org chart or the development process? I am certain that just about everyone would indicate the org chart came first. Organizational structure first and then the processes are defined and mapped into that structure. Think about that and what it means - is that really the best approach for an ideal development process, one where the objective is generating profitable revenue? This month's newsletter will challenge your thinking about creation of the development process.

Be open minded, consider alternatives and dream of new possibilities.

Jeff Jorvig, The IC Coach
News of Interest to New Product Development Teams
  • Review all the DAC chatter and article/blog links by searching for the #46DAC tag on twitter.
  • New blog post: The Big Secret - Cost of Inefficiencies
  • Is synchronization of register information between firmware, design, verification and documentation a huge headache? I have a solution that will remove the pain - contact me for details.
  • In need of a simple yet effective way to develop, manage and monitor your new product workflow? Check out this web based solution to managing your NPD/NPI process here and be in control of your development activities.
  • Check out our quick start instant downloads for managing design projects.
Leadership Quote of the month:
"A leader is best when people barely know he exists, not so good when people obey and acclaim him, worse when they despise him....But of a good leader who talks little when his work is done, his aim fulfilled, they will say, 'We did it ourselves'"
  
-- Lao Tzu
What is the Focus of your Development Process?
Consider the development process you use today and how it was derived. Was it a broad-spectrum view of what needs to happen to generate new product revenue or was it a set of processes derived by each of the organizational entities within your business? Taking an honest, unbiased assessment will most likely yield the latter approach as the most correct answer.

Assuming the processes were created in each of the organizational towers, what do you believe the focus for each process was? Honestly, it depends on the function of each. In design the focus was on a tapeout. In product engineering it was product qualification. In test it was development of characterization and final test programs and hardware. For project management it is the development of a timeline, cost analysis, a business case and the steps to synchronize everyone. Marketing is paying attention to customer requirements and what it takes to secure the socket win. And of course business/operations is paying attention to revenue, margin and the timeline.

Now consider the process deliverables and interactions for each organizational entity. Are they really aligned to the only objective that matters - profitable revenue? So now I would ask - Is the development processes actually focused on the business requirements? In reality a few members of the development team are focused on revenue while the majority are paying attention to their more localized goals and objectives.

Enable Images to View this GraphicHere's a key question to reflect upon for your organization - Is the development process supporting the organizational structure or is the organizational structure supporting the development process? In an organization where the development process is primary, the project decisions, risk analysis, objectives and communications will be based on the big picture - business revenue priorities. Where the organizational silos are foremost, the development processes will be fragmented and disjointed with objective success not consistently supporting and enabling the business revenue goals.
Development Process First - Organization Second
Is your development process supporting the needs of the business or the needs of the organization? If there are many success stories, celebrations and goal achievements in organizational silos while the product misses on revenue objectives, the development process is supporting the organizational needs, not the business. Ouch!

An ideal development process is one that is derived to fully serve the needs of the business model as the primary objective. Accomplishing this can only be achieved by minimizing the organizational silo influence through a hierarchical top down approach, yielding a top-level process that is independent of any organizational structure influence. Please read on to learn about an approach that will enable a development process that focuses solely on supporting the business strategy.

Start off by identifying a core team that can fully represent all disciplines within the organization. Next I would suggest a establishing a dedicated room with large sheets of paper on one wall and an ample supply of blank sticky notes that will be used to represent the process steps. At the far left is a new opportunity and at the far right is volume production.

Enable Images to View this GraphicNow with the full core team, fill in the steps between opportunity and production using a sticky note for each, leaving any consideration of organization out of the diagram. Place the sticky notes in order from a flow standpoint and once agreement is reached, fill in the flow with lines and arrows.

This activity may span a several week period through multiple sessions. I would suggest others outside the core team to have "read" access to the room. However, any changes proposed from outside the core team must be handled through a core team member during a regular session.

Once this activity is completed and consensus is reached the final top level process can be captured and farmed out into the individual organizational entities for detailed process development, again using the same approach. The next level of the process must fully support the top-level process within each of the silos, paying particular attention to areas where cross-organizational flow is required.
How I can Help
"Providing solutions to the systemic project challenges that quietly steal early revenue opportunity"
  • 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 services provide the results you need.
  • Are you short on resources? I can provide Design Engineering, IC Design Team Leadership, Process Improvement Leadership and Project Management services.
  • Process streamlining - Is something in your new product workflow troubling you? Does your development process need an improved focus on revenue generation? I will work with your organization to engineer a solution.
  • Requirements workshops - I will facilitate the timely closure of a high quality set of requirements for a specific product. If you have a complicated project where requirements closure is critical, this would be an ideal candidate for a workshop. More information can be found here.
  • NPD team one day workshop to improve planning, execution and monitoring skills for design projects.
  • Web based NPD workflow management.
  • Ready made downloads: schedule, checklist, analog design guide.
  • Increase management bandwidth via Virtual Design Manager.
  • Full listing of common services here.
Contact me today via email, 480-895-0478 or 877-895-0478
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?
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  • 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.