Go/No-Go & Resource Decisions in Innovation & Process Improvement

Instructor: Saranya Ramachandran

Saranya has a Bachelors in Science focused on Electronics and Telecommunication and a Masters in Business Administration. She has 8 years of Project Management Experience and is PMP Certified.

Process improvement aims for efficiency by bettering organizational processes whereas innovation entails changing the process to stay competitive in the marketplace. This lesson will describe the decision making involved in innovation and process improvement projects.

Innovation and Process Improvement Projects

Soylent Corporation is a startup that is looking to improve their internal operations, so they can efficiently deliver web development services. Soylent Corporation has two choices to make their internal operations better. They can try process improvements or innovation. Improving existing processes, reducing waste and enhancing working systems are typically the activities included in process improvement projects. A stable organization that is in mature stages may benefit more from process improvement. On the other hand, innovation is needed to adapt to a highly dynamic market.

How to make a Go/No-Go decision

Soylent Corporation responds to public requests for proposals (RFP) as part of their sales process. Currently, they have realized that this process can be improved. They have started to look at how they will respond to this.

Typically, projects for which RFP is requested require the commitment of time and resources. Before undertaking such a project, certain factors might need to be considered to make a Go/No-Go decision. A meeting is used to decide if it is worth moving the project from planning into implementation. The meeting needs senior stakeholders as attendees to make the decision.

The outcome of such a meeting may be: Go which means the project can move into implementation. No-Go which means it is not worthwhile to move forward with this project. The third outcome involves moving forward with certain conditions and restrictions. An example of this situation may involve minimum resources and restricted budget to move forward.

The Go/No-Go meeting needs a specific set of criteria by which the project could be evaluated. These involve how the team judges the outcome of a project. The criteria can involve measuring the cost vs. benefit, risks involved, opportunities in the project, resources strength and availability to take on the project and so on. All these criteria must be sufficiently analyzed by the project lead to present to the senior stakeholders, so everyone can collectively make the go/no-go decision.

To efficiently run this process, a document can be created with all the criteria and a column to record the decision against each criterion.

During the Go/No-Go meeting, every criterion must be analyzed and discussed, and the decisions recorded in the document created.

Considering all these factors, Soylent Corporation has come up with the following process when an RFP comes in.

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