What is PACE® methodology?

PACE® stands for Product And Cycle-time Excellence®. It is a gated methodology for streamlining the development of new products and services. The process was first outlined by Michael McGrath, an expert and thought leader on product development and strategy.

McGrath founded PRTM, a management-consulting firm in the technology industry which is now a subsidiary of PwC. In the late 1980s, he created PRTM’s product development practice and began developing what would later be known as the PACE® process.

The principles of PACE® are outlined in McGrath’s book, Setting the PACE in Product Development (1996), considered the definitive original text on the process. The aim of the book is to show “efficiently organize people, resources and processes to dramatically improve financial results, strategic positions, internal morale and customer satisfaction.”

The various techniques espoused by PACE® aim to “integrate vital company-wide functions, engaging the entire company and focusing its collective energy on strategically and financially important goals”.

Features of the PACE® model include integrated, cross-functional teams and a structured, gated process for NPD. The objective is to encourage collaboration, identify bottlenecks and inefficiencies, streamline resource use, and enhance product quality.

These ideas were elaborated on and refined in a later book by McGrath, Next Generation Product Development (2004), which provides further insights on reducing cycle times and boosting R&D productivity.

PACE® has since been adopted by some of the largest technology companies as a method of improving R&D processes and accelerating time-to-market.

Note: The acronym PACE is also often used to refer to various other methodologies, but they should not be confused. Examples include Prepare, Analyze, Communicate, Execute (a communication methodology) and Primary, Alternate, Contingency, Emergency (a data management methodology).

The 7 elements in PACE® methodology

PACE® methodology is a structured, phase-based approach that relies on seven interrelated elements to ensure project success and minimize time-to-market. The elements in the methodology can be divided into two groups—four elements at the project management level, which include a:

  • Gated NPD process
  • Small cross-functional Core Team, empowered to make all decisions about the project
  • Structured development process, ensuring consistency
  • Efficient use of development tools and techniques

And three elements at the program/portfolio level, which involve a:

  • Product strategy process that guides product development decisions
  • Comprehensive approach to technology management, including planning, oversight, and alignment with business goals
  • Pipeline management framework for project prioritization, resource management, and aligning capabilities with project needs

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