ABSTRACT

The Innovation Stage-Gate is concerned with innovation capability. It is focused on creating an innovation engine that is productive and that fits in the corporate setting. Innovation disrupts the performance engine and makes it harder for the people in the functions to keep the core business running. There is therefore an inherent conflict between the innovation team and the performance engine. The basis for graduated engagement is the Innovation Stage-Gate. Graduated engagement is a more sustainable practice than escalation and one that encourages collaboration, not conflict. Watchdog games, which revolve around the organizational risks functions face in helping the innovation team, can be managed via graduated engagement and risk-sharing. Game theory can be used to design approaches that increase internal collaboration and permit the experiments to proceed.