Change decisions in product development projects

Abstract

In dynamic business environments, product development projects rarely proceed according to the original plan. It is likely that some changes must be made and plans or goals be redefined to adapt to changes in the business environment. Which changes should the project approve and implement, which ones to reject, and why? Earlier product development literature has largely covered planned decisions and go/no-go decision criteria in line with a phased product development process. Project management literature, in turn, suggests change management processes and practices during the project. Earlier research has not sufficiently covered criteria for change decisions that are needed between product development gates, nor a holistic approach for making such decisions in complex product development projects.This paper explores decision criteria and change management in complex product development projects. In a qualitative, multiple-case setting we characterize change management practices, decision criteria, and managers’ experiences with change management in seven complex product development projects within one firm. The results report multiple parallel change management approaches differing in terms of business context maturity, type of change, and IT system use. Operative criteria dominated in the change decisions of the case projects, as opposed to more long-term oriented strategic criteria. The paper concludes with propositions concerning more holistic change management frameworks that would account for contextual contingencies.