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The Use of Discovery Driven Planning to Manage High Uncertainty Projects
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The Use of Discovery Driven Planning to Manage High Uncertainty Projects

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Discovery Driven Planning is a process for the management of innovation and development with high levels of uncertainty, new product projects and game changers.

Discovery Driven Planning is a process for the management of innovation and development with high levels of uncertainty, new product projects and game changers.

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The Use of Discovery Driven Planning to Manage High Uncertainty Projects Presentation Transcript

  • 1. DISCOVERY DRIVEN PLANNING AND HIGH UNCERTAINTY PROJECTS #INNOCHAT MAY 27, 2010 Jose A. Briones, Ph.D. Twitter: @Brioneja
  • 2. DISCOVERY DRIVEN PLANNING BACKGROUND
    • Process for management of innovation and development projects with high levels of uncertainty such as disruptive innovations, new product/new market projects or game changers
      • 1995: First Publication by  Rita Gunther McGrath and Ian C. MacMillan (1)
      • 2000: Popularity increases with publication of book “The Entrepreneurial Mindset” (2)
      • 2008: Endorsed by Clayton M. Christensen as an alternative to Stage Gate for high uncertainty projects (3)
      • 2009: Publication of book Discovery Driven Growth (4)
  • 3. DESCRIPTION
    • Discovery Driven Planning turns the basic project map on its head
      • Discovery Driven Planning is a plan to learn, not to show that you had all the answers when you wrote the plan
        • “ Learn as you go”
      • Instead of estimating the market demand and calculating the potential revenue/profit, DDP starts by defining the desired financial target that will meet the company’s targets and strategy
      • The method then defines the set of assumptions, technical and commercial that MUST be proven true in order for the project to succeed
      • A plan is put in place with specific milestones to test and verify the assumptions.
  • 4.
    • Method provides discipline and framework to the discovery process but at the same time provides the flexibility necessary for the project to change direction or iterate as needed
    • DDP uses four basic documents (5)
      • ‘ Reverse Income Statement’ models the business economics.
      • ‘ Pro-Forma Operations Specs’ defines operations needed to run the business.
      • ‘ Key Assumptions Checklist’ identifies the business hurdles and assumptions for the initiative.
      • ‘ Milestone Planning Chart’ specifies when the assumption needs to be tested.
  • 5.
    • DDP has been successfully used by oil and pharmaceutical companies to tackle high uncertainty projects
    • More companies are adapting the method, but there is still strong resistance to leave Stage Gate behind.
      • Stage Gate can be used after the results of DDP have defined the project and reduced the level of uncertainty
  • 6. INNOCHAT QUESTIONS
    • How does your company manage innovation projects with high levels of uncertainty?
    • Do you believe that there is a need for a different process for incremental vs. disruptive innovations?
    • Have you or do you know someone who has had success implementing Discovery Driven Planning?
    • Do you know of alternative innovation management processes for high uncertainty projects?
  • 7. REFERENCES
    • Discovery Driven Planning, 1995, http://hbr.org/1995/07/discovery-driven-planning/ar/1
    • The Entrepreneurial Mindset, 2000, http://www.amazon.com/Entrepreneurial-Mindset-Continuously-Opportunity-Uncertainty/dp/0875848346/ref=sr_1_1?ie=UTF8&s=books&qid=1274888243&sr=1-1
    • Innovation Killers, 2008, http://hbr.org/product/innovation-killers-how-financial-tools-destroy-you/an/R0801F-PDF-ENG?Ntt=innoation%2520killers
    • Discovery-Driven Growth, 2009, http://www.amazon.com/Discovery-Driven-Growth-Breakthrough-Process-Opportunity/dp/1591396859/ref=sr_1_3?ie=UTF8&s=books&qid=1274887263&sr=8-3
    • Discovery Driven Planning http://faculty.msb.edu/homak/homahelpsite/webhelp/Discovery_Driven_Planning.htm