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ACCA Strategic Professional · Strategic Business Leader · Leading and managing projects

Orlin Health is running a project through defined phases: concept, definition, implementation, handover and closure. The steering group insists that funding for the implementation phase is released only after the definition phase deliverables have been reviewed and approved. What is the main advantage of this stage-gate approach?

The main advantage is that stage gates provide formal decision points where the project can be redirected or stopped if it no longer justifies investment, limiting financial exposure. They do not allow parallel phases, remove the need for a project manager or guarantee benefits.

  1. AIt gives decision points at which the project can be redirected or stopped if it no longer justifies investmentCorrect
  2. BIt ensures that all phases can run in parallel to save time
  3. CIt removes the need for a project manager during definition
  4. DIt guarantees that benefits will be realised in full

Explanation

Stage gates give formal review points where continued viability is assessed and resources are committed incrementally, limiting exposure. They do not make phases parallel, remove management roles or guarantee benefits.

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