Benchmarking Best NPD Practices—I

TLDR

This study reports on the most recent American Productivity and Quality Center investigation into performance and best practices in new product development. The article aims to report the APQC study results, focusing on team organization, winning characteristics, and senior management’s role in NPD. It examines how project teams are organized, their winning traits, and how senior management sets the stage for NPD. Performance on several NPD metrics is presented, showing best performers, common traits, differentiators, and identifying climate and culture for innovation as a key driver with specific actions outlined.

Abstract

OVERVIEW:This first of three articles reports the results of the most recent American Productivity and Quality Center study on performance and best practices in new product development. Performance results achieved on a number of NPD metrics are reported first, followed by a set of Best Performing businesses, what these businesses have in common and—most important—what differentiates them from the rest. This first article focuses on the "people side" of NPD—on how project teams are organized and on other winning characteristics of teams. The climate and culture for innovation within the business proves to be one of the strongest drivers of NPD performance, and the specifics of what the Best Performers have done to achieve this positive climate are outlined. Finally the role of senior management in setting the stage for the business's NPD effort is examined.