Planning unplanned design iterations using risk management and learning strategies

Abstract

Unplanned design iterations are considered one of the reasons for the high failure rate of new product development (NPD) projects. Generally, organisations employ ‘proactive risk management’ (PRM) and ‘reactive fast learning’ (RFL) to manage unplanned design iterations. This paper aims to explore how organisations employ PRM and RFL approaches to manage unplanned design iterations in the NPD process. To that end, a cross-sectional interview study was conducted in eight organisations. The interview transcripts were analysed as a primary data source using thematic qualitative text analysis technique. For PRM approach, results demonstrate that the design teams were more active in risk monitoring in the design phase as compared to risk identification in the concept development phase. Generally, design teams reduced the likelihood of unplanned design iteration risks by employing learning methods in addition to risk mitigation strategies. For RFL approach, results reveal that organisations lacked a structured approach to select suitable learning methods for fast resolution of unplanned design iterations and to convert new knowledge into organisational learning. We conclude that PRM is more established as compared to RFL in managing unplanned design iterations. We develop recommendations of how organisations can use RFL approaches more efficiently alongside PRM approaches.