Abstract
A study presents one firm's efforts to build capabilities for creating new products quickly and efficiently. Five key lessons learned during the change process are described: 1. Rather than viewing product development as a line function, a firm should view product development as a key executive area with responsibility for the company's competitive position. 2. Market issues are the responsibility not only of marketing, but also of product development and production. 3. To avoid corporate myopia, management control systems must consider not only time and money, but also achievement of goals. 4. Strategic planning flows more smoothly if the participants start by mapping the firm's past and present position before attempting to define the desired position. 5. Formulation of a product development strategy is the responsibility of a multifunctional team of executives.