Events arise at a higher rate than it is practical to re-plan in detail;

Environment changes devalue original project goals, requiring constant revision of goals;

Environment changes mean time is of the essence, and late delivery is an expensive lost opportunity; and

Resisting change compromises business benefits and misses opportunities.

Initially, a high-level plan is created:

• with a clearly articulated vision;
• broken into project stages as per Figure 3.3;
• with the smallest possible initial stage, to get feedback early;
• with each stage ending with a decision gate, as shown in Figure 3.2, requiring re-planning, revised business cases, and formal review; and
• with each stage including progressively lower levels of detail according to how far ahead one is looking, as shown in Figure 3.1.

As the project progresses, the project is constantly reviewed (especially at stage gates) to:

• add feedback from one stage, along with environment changes, and changes to business objectives, to the plan for the next stage; and
• decide whether to proceed or kill the project.

If possible, identify and plan known good “fall back” options as emergency fall backs early, before seeking more efficient or effective approaches;

Freeze design for static components early;

Start resolving details for dynamic components early with late design freeze just before execution;

Use competing experiments to resolve unknowns;

Focus on adaptability over predictability;

Build in maximum flexibility to facilitate adaptability in later stages;

Contract the parts of a project that won't change first using fixed-price contracts, and consider delayed or performance-based contracts for dynamic components.

Calculate the likely cost of lost opportunity versus the cost of inadequate quality.

Reduce dependence on planning as a control mechanism, in favor of “guideline” controls:

• input control (e.g., selecting the right staff for skills and experience, training; adding induction and training);
• output control (e.g., objectives, rewards, and recognition);
• diagnostic control (summarize activities to give a snapshot indicator of progress toward goals);
• interactive controls (reports are interpreted and discussed in a face-to-face meeting of experts; are we achieving goals?);
• boundary controls (standards, rules, codes of conduct, and regulations); and
• belief systems (articulate aspirational values that can be used in decision making in unplannable situations).

Focused on a vision with goals, not on strict processes;

Pragmatic – suitable and timely is more important than perfect;

Collaborative, not directive;

Egalitarian with a flat hierarchy;

The smallest possible team;

Organic, flexible, and adaptive;

Experimentation valued for its ability to eliminate dead ends; and

More informal processes complement formal ones.

Enable more regular communication of all types (colocate staff, have attractive lunch rooms, and social events);

Increased emphasis on fast, timely, and succinct communication over slow formal communication (e.g., bullet points over minutes);

Adjust communication rates according to needs;

Use rapid communication during periods of rapid change;

Timeliness over thoroughness; and

Facilitate direct communication channels that bypass organizational levels, if required.

Highly adaptable and flexible; deals with ambiguity and can trade off interim goals to achieve final goals and optimize benefits. Courage to say no, and be realistic;

Select stability that allows flexibility;

High levels of situational awareness developed through diagnostic and interactive controls (Chapter 4);

Ability to quickly mobilize responses (through authority, trust, and collaboration);

Leader enables rapid decision making through: (a) delegating decisions, (b) rapid feedback, (c) clear authority and accountability, (d) a focus on pragmatism, (e) researched alternatives, and (f) pre-planned responses;

Decisions are delegated by communicating vision and goals to an experienced trusted team;

Timely and reasonable decisions are facilitated by: (a) high levels of situational awareness (rapid, constant data collection), and (b) pre-planned responses;

Rewards experimentation as useful input.

Employ structured experimentation to resolve unknowns

Promote and allow innovation

Use competing parallel experiments to resolve unknowns, and to save time and money, or improve quality;

Set clear objectives and time limits with strict review points;

Attach small safe amounts of research work to existing robust projects;

Encourage experimentation and accept failures as constructive contributions;

Have the courage to kill dead ends, constantly redirecting resources to the most promising alternatives;

Develop separate career structures to encourage capability development in both innovation management and technology.