As we studied those failures, a pattern became clear to us. The projects were all being planned as if they were incremental innovations in a predictable setting: The assumption was that the organizations launching them had a rich platform of experience and knowledge upon which to draw. The venture leaders made critical assumptions which were never tested. So, what was different about DDP than conventional planning methods? First, we forced venture leaders to articulate right up front what success for their businesses would have to look like to make it worth the risk and justify the resources and the effort. Then, we’d ask them to benchmark the key revenue and cost metrics in their business against the market and against firms offering the most comparable products. Next, we’d force them to articulate the specific operational activities their business needed to carry out in very concrete terms.
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