What to Do When Product Development is Behind & Over Budget

Editor's note: Mark Dohnalek is President & CEO of Pivot International, the Kansas-based global product development, engineering & manufacturing firm.

Running behind or being over-budget are the two most common issues facing product development teams. When one or both happen, too often manufacturing managers and supply chain supervisors try to fix this the same way they fix other problems. This might include changing materials and/or schedules to cut costs or introduce more structure and deadlines. And, while on paper this may appear to be all that is needed, it isn't.

And, unfortunately, these types of C-level fixes can often create frustration for product development managers lowering morale. That is why successful product development initiatives require an understanding of what is different in order to apply effective management strategies.

Below are three must-know touchpoints along with solutions to get back on track:

Freedom and flexibility are required for product development teams to thrive. Different from established assembly line production, creativity is necessary in product development.

This means supervisors and staffers must have a measure of freedom as they make discoveries. Until it is complete and proven, it will not be possible to follow a specific set of steps with checkpoints because everyone is still learning what works and what doesn't. Instead, developers need to be able to pivot if an idea isn't working, or to follow a promising idea as it emerges.

More resources will not always translate to faster results. If a project is in danger of falling behind schedule, many think the answer is more people. It isn't, especially if the project has lost focus. And, if there is a clear vision but other issues have sidelined the schedule, it's unlikely anyone will have time and energy available for getting a new team member up to speed for a valuable contribution. Instead of adding resources when a project isn't progressing, look at the existing team, workflow, organization, and management to figure out what needs to change. Many times, it will be more a matter of streamlining processes or realigning management than adding more resources.

The concept is there but not a process for achievement. The lack of a clear, documented vision for the product development team to follow will create problems from beginning to end. Competing ideas about what the end result should look and function like can spur creativity – but if these ideas don't quickly coalesce into a great product, they can easily drag out the schedule.

Even if the product is an add-on or extension to an existing series, your teams will work much better and more efficiently when they are on the same page and can point to next steps. Don't assume that everyone knows the vision for the product simply because they've been working on it together. Write out the vision that your team is working toward, keep it present and visible, and add changes or new directions as they become necessary.

Product development is a necessarily variable process, which requires a different set of management skills. Look at what is happening and listen for what needs to be done. Ultimately, success in product development for manufacturers and supply chain partners alike will never lie in “telling” teams what to do but rather “asking” them what they need to catch-up and improve.

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