Measuring international NPD projects: an evaluation process

Purpose – New product development (NPD) has become critical to the growth and future prosperity of organisations. This research therefore sought to determine the need for performance measurement during the NPD process and reveal measures currently used, where future requirements lie and where improvements can be made. Design/methodology/approach – First, a theoretical model was developed that sought to capture the major factors for measuring NPD performance. This meant reviewing the existing body of work and using a combination of quantitative and qualitative methods to collect information from practitioners. Questionnaires were sent to manufacturing organisations, and ten participants were selected for further investigation. The resulting model describes steps that a company should follow when introducing and managing a performance measurement system for NPD. Five years later, a follow‐up questionnaire was carried out with a similar group of companies, which allowed the authors to test and then refine the model. Findings – The results indicate useful guidelines for managers, including: ensure that transparency of measures at the individual project level is high; move product development performance up the corporate training agenda; and concentrate on the core processes first. Originality/value – The performance measurement model proposed here can be used as the basis for developing an NPD best practice audit across the company, with a view to benchmarking against suppliers, competitors and/or industry best practice.