Product Development Field Notes

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Thursday, April 5, 2007

A3 Reports in Product Development

I don't believe that there are any silver bullets in product development. However, Toyota's A3 report is the closest thing I've ever found.

An A3 report is a document written on a single sheet of 11" x 17" paper. Writing one forces the writer to distill things down to the critical elements of the subject matter, and focuses the reader's attention on the most important information. The paper size is large enough to include a significant amount of information, but not so large that the reader cannot take it all in at a glance. Pictures, diagrams, charts and other visual models replace words wherever possible to enrich the communication.

A3 reports immediately improve communication in a product development team by making team members' thinking visible to others both inside and outside the team. When used as a substitute for traditional slideshow presentations, they streamline meetings and increase the ratio of useful discussion to reviews and updates. As a problem-solving tool, they help structure the team's approach, and as a decision-making tool, they provide the key stakeholders and decision-makers with the information needed to get good input and a decision that will stick.

There are three reasons why A3s are so effective. First, the format requires conciseness and focus. The author will not be able to fit every possible piece of information on the page and so the important information stands out. It is much less daunting to scan an A3 report prior to a meeting than it is to read a report or review a slide presentation. Second, A3 writers learn quickly that using pictures and other visuals increases the amount of information they can fit on a report. The side effect is that these visual models foster richer discussion than text descriptions. Finally, all of the important information stays in front during the discussion - unlike slide presentations where each slide covers the information from the previous slide.

These characteristics lead to richer discussion and faster decision-making. That leads to less time spent in meetings reviewing and revisiting decisions, and more time available to add customer value.

In my approach to A3 writing, there are only three requirements: each A3 report must include a title and theme statement that succinctly describe the A3's topic, the author's name and contact information, and a references section for citations. The author uses the rest of the page in any way that best conveys the message. i do have some templates available on my website in the NPD Resource Center but they are only a starting place.

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