C A S E S T U DY Royal Building Products Grows Revenues from New Products by More than 50% New Product Development Case Study Royal Building Products, a division of Axiall Corporation (NYSE: AXLL, formerly known as Georgia Gulf Corporation, NYSE: GGC), is a leading manufacturer and distributor of materials for the home remodeling, building and municipal construction markets in North America. The company’s commitment to quality, innovation and customer relationships has attracted the loyalty of a growing number of building professionals, homeowners, architects, engineers and distributors to its products. Business Goal Three years ago, the executive team at Royal Building Products set a strong mandate for growth through innovation. The goals were to: Increase sales of new products from 2% to 16% of total sales within five years Improve the commercialization and success rates of new products Improve project execution with better cross-functional communication and activity coordination. New products from Royal Building Products: Top: Celect® Cellular Exteriors, a 100% recyclable exterior siding system with an innovative interlocking seam; Bottom: Royal Envelop®, a series of beautiful window and door surrounds that add a unique character to any home, has been a product winner at Royal Building Products. www.royalbuildingproducts.com Solution To accelerate performance results, Royal Building Products implemented Stage-Gate® using SG Navigator to help establish an effective and efficient process for bringing new products to market successfully. Robert Cooper, creator of Stage-Gate, was instrumental in introducing next generation new product development practices to the top leaders of the company. Ready-to-Implement Authentic Stage-Gate Model: SG Navigator contains 200+ innovation best practices compiled in an intuitive and interactive navigational guide that provides users with an effective roadmap for taking an idea from inception to launch. ® ® www.stage-gate.com +1-905-304-8797 C A S E S T U DY “We are well on our way to instilling a culture of innovation within the company. The Stage-Gate process has helped us overcome some of the obstacles we were facing and has allowed us to focus on meaningful new products to the market.” —Jennifer McGill Group Marketing Manager Royal Building Products Additionally, Stage-Gate International consultants and trainers worked closely with Royal Building Products’ Group Marketing Manager to support the implementation of key initiative milestones: • Implementation of SG Navigator for new product development (i.e., Three-Stage, Five Gate), for product improvements (i.e., Three-Stage, Three-Gate) and for technology developments (i.e., Three-Stage, Four-Gate) • Project team training to support the adoption of Stage-Gate and new innovation practices • Gatekeeper training to support executives in their leadership and management of Stage-Gate. Central to launching the organization-wide innovation initiative was preserving ‘Royal Building Products entrepreneurial culture’ while introducing a new level discipline to the new product development process. Results Within three years of implementing SG Navigator, Royal Building Products achieved and surpassed their ambitious goals: • Increased new product sales by more than 50% and tripled revenue from new products (as a percentage of total sales) • Successfully launched more than 2x as many new products • Reduced new product development cycle time by more than 50%. SG Navigator contains 50+ templates, proprietary methods, and illustrations to build an organization’s innovation capabilities, drive effective decision making, and focus effort on activities that produce results. www.stage-gate.com +1-905-304-8797