Thermo Fisher · New operating model

Running the new-service portfolio

How we decided which new services to build, which to reshape, and which to stop before the big spend.

What I owned
Portfolio decisions, the PMO framework (with the PMO director), a team of five project managers
Role
Led the NPI portfolio; co-owned the PMO framework with the PMO director
Status
Operating model
  • $70Mnew revenue in four years
  • 50%less time to launch
  • 88/100employee engagement score
  • 5project managers

The problem with stage-gate

Stage-gate works when you know what you are building. New services rarely do. At the first gate, the customer, the price and sometimes the operating model are still guesses, and the process asks you to write them down as plans.

What we changed

With the PMO director, I co-owned a change to the framework: every project was filtered by how much was still unknown. Predictable projects kept the standard path. The uncertain ones, mostly new services, came into the NPI portfolio I ran.

The gates stayed. Next to them, each project ran discovery work: customer development and jobs-to-be-done interviews, a business model canvas, and small tests on the assumptions that would sink the project if they were wrong. The scope narrowed toward where the value was, or the project stopped before the large spend.

Business model canvas and test sprints running alongside stage-gate governance
Discovery sprints running alongside the stage-gate.

We put this in place with the product executives, so gate decisions were made on tested assumptions rather than forecasts.

The team

Five project managers ran the portfolio's projects. The employee engagement score was 88 out of 100.

What came out of it

Over four years the portfolio produced $70M of new revenue, and time to launch dropped by half. It included the adherence marketplace, just-in-time labeling, direct-to-patient (DTP) and the rental model.

Contact

Email is the fastest way to reach me.