The FADE Cycle

Let’s focus on a simple methodology for problem/process review and improvement - The FADE Cycle.

Summary:

The FADE CYCLE is a quality performance model and a simple methodology for business improvement. I use it often with clients to help them grow their businesses or initiate a major change in their careers. Other business applications include:

Benefits:

In many instances, quick, off-the-cuff 'executive' decisions are made to solve endemic problems (upper management is notorious for doing this — they know better than you). The Fade Cycle is a powerful tool to help you stand back, analyze the issues with data, develop a solid solution, and execute with confidence.

History:

Duke University developed the FADE model, analyzing the acronym into four steps: Focus, Analyze, Develop, and Execute. The FADE cycle is part of QI (quality improvement) and Six Sigma and is used by many prominent organizations globally.

Applications:

The best way to perform the FADE Cycle is to have critical constituents in the room to assist in providing insight/data and developing the analysis. The problem might be as simple as a dysfunctional program that requires a deeper fix to create a new product line. The FADE Cycle is set in four stages:

FOCUS STAGE

Exploration starts with a belief or suspicion that there is a hidden problem or an opportunity for improvement.

1. Generate a list of problems (issues) — brainstorm with your team as many contributing areas you infer to be the dysfunction.

2. Select (vote) one problem — this is critical - building consensus and agreement at this point will guide you forward.

3. Verify and define the problem — check that this is the real issue, then confirm and clearly define what the issue is.

ANALYZE STAGE

Gather and analyze information, recognize the root cause, and establish solutions.

1. Decide what you need to know — go through the team and collect as many questions you’ll need to answer with data and info.

2. Collect data/baselines/patterns. This will help you when assembling organizational commitment. Use facts and data to convince them.

3. Determine influential patterns — a critical step - this is where things start coming together.

DEVELOP STAGE

From the gathered data, develop techniques for advancement, including enactment, communication, and observation.

1. Generate promising solutions — Bring everyone together and brainstorm possible solutions based on the Analyze stage.

2. Select the solution — Multi-vote with the team and decide on one plan of attack.

3. Develop an implementation plan — Don’t let the team out of the room before you assign roles, responsibilities, and deadlines.

EXECUTE STAGE

Implement the developed plans on a pilot basis and install a process control program that is in use for success.

1. Gain commitment—Ensure you have organizational commitment, signoff, budget, and backing (this is critical for success).

2. Execute plan—Now, run with the ball, keep an eye on all resources and deliverables, and follow a tight Gantt chart plan.

3. Monitor and measure impact — Once launched, measure the effect and make subtle adjustments along the way.

CASE STUDY

Here’s a fictional Case Study where the FADE Cycle was valuable:

Background: TechGadget Inc., a leading electronics manufacturer, observed a stagnation in sales of their flagship product, the X-200 SmartWatch. Market research indicated a shift in consumer preferences towards health-focused features. To regain market share and address consumer demands, TechGadget decided to leverage the FADE Cycle to develop an enhanced version of its smartwatch.

Focus: The initial phase involved assembling a cross-functional team to identify the key area for product innovation: integrating advanced health-monitoring features into the X-200 SmartWatch. This decision was driven by consumer feedback and a gap in the current market offerings.

Analyze: In the analysis phase, TechGadget conducted extensive research, including customer surveys, focus groups, and competitive analysis. The data revealed a strong market demand for features such as blood pressure monitoring, sleep tracking, and stress management. Additionally, the team analyzed technical feasibility and cost implications to ensure the new features could be implemented without significantly increasing the retail price.

Develop: The development phase kicked off with a clear understanding of consumer needs and technical possibilities. Engineers and designers collaborated to integrate the new health-monitoring features into the smartwatch while maintaining its sleek design and user-friendly interface. Simultaneously, the marketing team developed a strategy to highlight these new features, focusing on the benefits of comprehensive health monitoring.

Execute: The execution phase saw the launch of the X-300, featuring the newly developed health-monitoring capabilities. The launch was supported by a targeted marketing campaign emphasizing the smartwatch's ability to provide users with valuable health insights and wellness tracking. The product was made available through TechGadget's online store and retail partners, accompanied by promotional events and influencer partnerships to generate buzz.

Results: The introduction of the X-300 was met with positive consumer response, leading to a significant increase in sales and market share. Customer reviews praised the innovative health features, and TechGadget saw a notable improvement in brand perception as a leader in health-oriented technology. The successful application of the FADE Cycle in this product development project not only rejuvenated a flagship product but also positioned TechGadget as a forward-thinking company responsive to consumer needs.

Conclusion: TechGadget Inc.'s strategic use of the FADE Cycle in product development demonstrated how a structured approach to innovation could lead to significant business outcomes. By focusing on consumer needs, analyzing the market thoroughly, developing a compelling product, and executing a targeted launch, TechGadget successfully navigated the competitive landscape and achieved a winning product innovation.