Rational product development?
CBS researchers look into company practise
How does it work in big business product development? Is it as rational and thought out as it looks on paper? New case studies show that decisions about product development are not always rational and systematic. Professor John K Christiansen and Assistant Professor Claus Varnes have been the first to be allowed to observe at a decision-making meeting in a big company. They say that the “gate-systems” do not always work in reality. Power games, politics and emotions play into the decision made by management.
Often there is not enough knowledge about the projects, and when there is, it is often not used fully. So what are supposed to be rational decisions often are not. The “Gates-systems” that were started in the 80’ies and 90’ies work differently than previously assumed,” John K. Christensen says.
Claus Varnes adds that management in a large international company has found the analyses to be useful and has asked CBS to do a benchmark analysis of the company’s management as a follow-up on the first investigation.
John K. Christensen and Claus Varnes’ investigation is the latest published with the title ”The Ignorance of Information at Gate Meetings", and has just won a prize at the 13th international Product Development Management Conference in Milan.
Product development is an important area of research at CBS, especially at “Department of Production and Business Economics” where the prize winners work.
International Product Development Management Conference is the leading international conference on product development. Dean and Professor Christer Karlsson was one of the initiators of this annual conference, which was just held for the 13th time. Both Christer Karlsson and John K. Christiansen have been involved in setting up the program at the Milan-conference as well as several previous conferences. 200 researchers from all over the world participate, and there are always more new countries being added. At the conference next year in Portugal the goal will also be to focus on innovation and product development in Portugal.