the Brooklyn Academy of Music PC | November 2007 A Stage-Gate Process for
Dec 14, 2015
A little bit about BAM
Located in Brooklyn, NY
BAM is a not-for-profit organization
First performance in 1861
Facilities include Opera House, Theater, BAM Rose Cinemas (including BAMcinématek), BAMcafé and BAMshop
Recognized internationally as a preeminent, progressive cultural center with a ticket buying database of 250,000 people and an average atendance capacity of 85%
BAM faces some challenges
Audience overall is getting older
Location is removed from the main theater circuit
New entertainment competitors
Fundraising no longer in vogue
BAM embraces innovation
Renaissance started in 1967 under Harvey Lichtenstein
Lichtenstein installed the Next Wave Festival 25 years ago – a festival that brings together New York City’s most adventurous performers (music, theater and dance) and most curious audiences every year
But what is innovation?
“One way to arrive at a useful definition is to rule out what innovation is not. It is not invention. (...) These days much innovation happens in process and services.”
The Economist, October 13th, 2007
BAM needs innovation to
Attract newer and wider audiences
Promote their performances more effectively
Assist customers in buying tickets and getting to the venue
Convince customers to come back
…and become lifetime BAM members
BAM needs a process for innovation
The average ROI for successful new products is 96.9 percent, with average payback period of 2.49 years.
Sounds good?
For every seven new product ideas, about 4 enter development, 1.5 are launched, and only 1 succeeds.
Winning at New Product, Robert G. Cooper
BAM needs to shoot for the winning idea every time.
The Stage-Gate process
A process to support the selection and development of the best products for BAM to achieve its goals(right now and in years to come)
Objective is to create products that
Provide unique features for our audience
Beat competition
Confirm high quality of delivery
Reduce audience’s obstacles in joining BAM
Confirm BAM’s legacy of innovation and novelty
The Stage-Gate process contributorsExecutive ManagementBAM StaffBoard of TrusteesPatrons“Friends of BAM”General AudienceArtists, ProducersCommunity, Neighbors
The Stage-Gate process evaluators
Executive Management: Managing DirectorBAM Staff: Creative DirectorBoard of Trustees: Head of Marketing Committee
The Stages and Gates
Set-UpOrganizational Goals
Business Unit Goals
Strategic Direction
Establish Criteria
IDEA BANK
Stage 1
DiscoveryInternal Assessment
Stakeholder interviews
Board discussion
Survey of active members
}Gate 1Filter ideas through ourpre-establish broad criteria(items that define the
mission,vision, goals and objective for this product)
Stage 1
“Firms have too many ideas and too much emphasis on creativity—more ideas merely choke the funnel even
more.”
Harold Sirkin, Boston Consulting Group, co-author of “Payback” (book on innovation strategy)
Stage 2
Research & StrategySurveys, focus groups
In-venue questionnaire
Competitor analysis
Community, neighborhood
}Gate 2Filter ideas through asurface evaluation(a gentle scan against specific criteria: potential, risk, legal,compatibility, fit, barriers,
etc.)
Stage 2
“Firms need really harsh discipline to weed out ideas quite quickly.”
Niklas Savander, Nokia
Stage 3
ScopeAction Plan
Recommendations
Timeline, budget, staff
Funding options
}Gate 3Detailed evaluation(in-depth review of ideasand commitment needed)
ONE idea is selected
Stage 4
DevelopmentFundraising, sponsor recruit
Engage vendors, consultants
“Friends of BAM”
Brainstorm, mission, tactics
}Gate 4Review of development(In line with vision, mission and goals? Did we developthe product that passedthe in-depth analysis?)
Stage 4
“Like a dog with a bone, people don’t want to give them up.”
Mark Little, GE’s head of research
Stage 5
TestingFocus groups
VIP members/Board dry run
Soft launch }Gate 5Validation of Testing(Right questions, design?Skewed? Neutral referees?)
Stage 5
“Innovation is a loser’s game, as we know most initiatives fail. But the truly innovative companies
know how to deal with losing.”
Ron Adner, INSEAD
Stage 6
Production StageFull production
Launch
Promote }Post-Mortem StageReview of what’s been
learned(Did we fulfill the originalcriteria? Costs? Profit?
Team?Strengths/Weaknesses?)
Stage-Gate Recap
A process to Formalize a new system
Consider different viewpoints
Evaluate financial commitment
Speed up decisions
To result inQuality products
Direct dialogue with customers
Overcome competition
Increase donations