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SIX PRODUCT PRIORITIZATION FRAMEWORKS AND HOW TO PICK THE RIGHT ONE

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TRY JIRA PRODUCT DISCOVERY FOR FREE

Capture and prioritize ideas and align everyone with roadmaps

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Prioritization is crucial during the product development process because it’s
impossible to execute every idea in any given sprint. This makes it important to
choose the concepts that will have the most impact on the business and
customers.

Use free prioritization matrix template

A prioritization framework simplifies a product team’s decision-making process
when choosing which opportunities to pursue. This guide examines six
prioritization frameworks and explains how to select one that will help a
product manager make better, more informed decisions. This, in turn, will make
product roadmaps stronger.


WHAT IS A PRIORITIZATION FRAMEWORK?

A product prioritization framework is a methodology that helps teams weigh their
opportunities against various constraints, such as business goals, customer
value, product requirements, and available resources. It provides a set of
consistent principles and strategies that help teams decide what to work on
next. 

By removing guesswork from the product management decision-making process, a
product manager can make informed decisions instead of instinctive ones.
Prioritized decisions balance customer needs with long-term business objectives.


WHY ARE PRIORITIZATION FRAMEWORKS IMPORTANT?

Prioritization frameworks are an effective tool for product managers. They help
align teams and resources during the product development process. Some benefits
include: 

 * Better resource management: Using a framework helps determine the best use of
   available resources. 
 * Alignment with stakeholders: Prioritization ensures that roadmapping stays
   true to business goals and objectives.

 * Enhanced customer value: Frameworks keep the team focused on tasks that
   satisfy customer needs.


COMMON PRODUCT PRIORITIZATION FRAMEWORKS

Out of dozens of frameworks available, here are six of the most popular options,
along with the advantages and disadvantages of each. All of these frameworks
have their merits, but the one you use should depend on your team and project
needs. Let’s dive in.


RICE FRAMEWORK

Reach, impact, confidence, and effort (RICE) are the four factors used to
evaluate a product idea: 

 * Reach: Identify the number of people or events over time, such as
   transactions per quarter or conversions per month.
 * Impact: Determine whether an idea achieves business goals or meets customer
   needs. 
 * Confidence: Measure the team’s confidence level in executing ideas with a
   percentage scale of high (100%), medium (80%), and low (50%).

 * Effort: Calculate the time it will take the team to execute the idea.

Reach x Impact x Confidence

--------------------------------------------------------------------------------

Effort

=

RICE
SCORE

You can use the RICE method in Jira Product Discovery, a prioritization and
roadmapping tool for your product team. As a project manager, you’ll be able to
assess the impact of your projects with ease.


PROS OF THE RICE FRAMEWORK

The RICE framework enables product managers to gauge whether items are feasible.
Data gathered from this calculation helps justify decisions to stakeholders.


DRAWBACKS OF THE RICE FRAMEWORK

RICE can be time-consuming and cumbersome to apply, particularly if multiple
items require data and validation from multiple sources. Methods for determining
each evaluation factor can change, making this method subjective, inconsistent,
and potentially misleading. 


KANO MODEL

The Kano Model is a customer satisfaction-based prioritization framework.
Researcher Noraki Kano developed the model to help product managers prioritize
features and updates based on customer needs. It has three parts:  

 * Basic features: Customers expect these essential functions in your product’s
   performance, such as the ability to share a post on a social network. 
 * Performance features: These features increase customer satisfaction and make
   your product more enjoyable to use, like faster load times.

 * Delighters: Unexpected features make customers happy. Examples of delighters
   include whimsical in-app messaging or the ability to use GIFs in posts.


PROS OF THE KANO MODEL

The Kano model prevents a team from building features that won’t appeal to
customers. It also identifies areas where the product may need improvement.
Increased customer engagement and satisfaction is the most significant advantage
of this method because it puts customer needs first.


DRAWBACKS OF THE KANO MODEL

The model is highly quantitative and potentially time-consuming, requiring heavy
data research and analysis. It can also be a very manual process with the use of
surveys. Tools such as Jira Product Discovery can help you aggregate, process,
and manage the required data.


MOSCOW METHOD

The MosCow Method is a four-step process for prioritizing product requirements
around their return on investment (ROI). It stands for “must haves,” “should
haves,” “could haves,” and “will not haves.” Apply this method company-wide to
help frame discussions around what will increase revenue.

Here’s a breakdown of the model: 

 * Must Have (M): These are the requirements needed for the project's success.
 * Should Have (S): These are important requirements for the project but not
   necessary.
 * Could Have (C ):  These requirements are “nice to have.” But don’t have as
   much impact as the others. 

 * Will Not Have (W): These requirements aren’t a priority for the project.


PROS OF THE MOSCOW METHOD

MoSCoW is easy to implement and practice. Project managers can use it to help
resolve disputes with stakeholders. This method also ensures that the team
builds a minimum viable product (MVP). It can help you prioritize your product
roadmap as well (start with this product roadmap template). 


DRAWBACKS OF THE MOSCOW METHOD

The lack of clarity in the “will not have” requirements is a flaw in the method,
especially around whether they should be part of the backlog. Criteria for a
“must have” or a “should have” can also be hard to determine. If there is no
consensus among stakeholders, then prioritization becomes ineffective and
subjective.


VALUE VS. EFFECT

Value vs. effect, or the value vs. effort matrix, prioritizes features based on
their probable value and the effort necessary to implement them. A 2x2 matrix,
measuring value on one axis and effort on the other, helps with the
decision-making process. 

To determine value, consider how it affects users and impacts the bottom line.
Effort is the complexity of implementation. Jira Product Discovery keeps track
of customer pain points and product ideas, which the team can use to create a
value vs. effort matrix. You can use effort ratings to determine how much labor
an idea requires. 

You can use a prioritization matrix where the vertical axis measures value (low
to high). The horizontal axis measures effort (low to high). It’s then divided
into four quadrants: 

 * Do first (upper right quadrant): This is high value, low effort, and a
   guaranteed quick win. 
 * Do second (upper left quadrant): High value, high effort. 
 * Do last (lower right quadrant): This is low value, low effort. It’s best to
   wait until the value increases before tackling this. 

 * Avoid (lower left quadrant): Low value, high effort. It’s not worth your
   team’s time.


PROS OF THE VALUE VS. EFFECT FRAMEWORK

This framework involves no complicated calculations, which makes decisions
easier. The framework is clear and lets the team focus on customer value tasks.
Because it’s visual, the team can quickly see which tasks bring high value for
the lowest effort.


DRAWBACKS OF THE VALUE VS. EFFECT FRAMEWORK

Values can be imprecise with this method, which primarily uses instinct. The
same goes for estimates, where a team might think they have more resources than
they do. Another drawback is effort-sizing, which will vary from team to team.
That makes planning more difficult with cross-functional teams that have
different resources.


OPPORTUNITY SCORING

Opportunity scoring identifies features that are important to customers but
underperform. Customers rate both a feature's importance and their satisfaction.

Use the opportunity algorithm to calculate the score on a five or ten-point
scale. This equation goes beyond normal gap analysis, giving twice as much
weight to importance scores as satisfaction scores.

Here’s the weighted equation: 

Importance + Max (Importance - Satisfaction, 0) = Opportunity 

Here is the opportunity algorithm formula, where customers use a 1-to-10 to
quantify the importance and satisfaction of an outcome:  

Importance + (Importance - Satisfaction) = Opportunity 

Features with high importance but low satisfaction are an opportunity for
improvement. Opportunity scoring is great for backlog grooming, which you can do
in Jira Software. Bonus: Jira Software has native integration with Jira Product
Discovery, so everyone can work within the same platform throughout the entire
process.


PROS OF THE OPPORTUNITY SCORING FRAMEWORK

The ROI outweighs the development costs. This allows a project manager to
identify accessible opportunities regarding customer satisfaction, helping teams
be more strategic with resource allocation.


DRAWBACKS OF THE OPPORTUNITY SCORING FRAMEWORK

Scoring models aren’t perfect. They don’t always work for every situation
because they only provide a limited view of each idea’s scope. Scoring can be
rigid, especially when quantifying an abstract concept. But mostly, scoring
can't forecast how the market will respond to any changes in the product.


COST OF DELAY

Cost of delay is another calculation that prioritizes projects based on their
economic value. This method determines the ongoing costs that result from
postponing items on the backlog. 

To calculate: 

 * Estimate a new project’s ROI in revenue per unit of time (monthly recurring
   revenue, for example).
 * Estimate the time it will take to implement the project.

 * Divide the profit number by the time estimate.

The final number is the cost to the company for not pursuing the project. 


PROS OF THE COST OF DELAY APPROACH

Using the cost of delay method results in more accurate value and cost
estimates. This is because it doesn’t focus on negative reasons for
postponement. Knowing what has better ROI also eases the burden of resource
allocation.


DRAWBACKS OF THE COST OF DELAY APPROACH

If a project manager underestimates the project size, the calculations could be
inaccurate. Estimated time requirements may be incorrect as well.


HOW TO CHOOSE THE RIGHT PRIORITIZATION FRAMEWORK

Choosing the proper prioritization framework for a team depends on several
factors. Consider the project’s goals, the complexity of the product, the team’s
expertise, and the available data. 

For instance, if the project aims to improve customer satisfaction, opportunity
scoring may work well. But if the team is relatively new and still building
their skills, value vs. effort might be a better choice.


USE JIRA PRODUCT DISCOVERY FOR EFFECTIVE PRODUCT PRIORITIZATION

Whatever framework you choose, Jira Product Discovery can help with project
prioritization and presenting project roadmaps. It can help you gather and
organize your product ideas, opportunities, features, and solutions in one
centralized tool. There’s even a product roadmap template and product
requirements template to get you started.  

With Jira Product Discovery, you’ll bring structure to your product management.
And that’ll keep your team and stakeholders aligned on strategic goals. You can
also seamlessly connect your ideas to epics in Jira Software, which makes it
easier to provide project context and visibility from discovery to delivery.


PRIORITIZATION FRAMEWORK: FREQUENTLY ASKED QUESTIONS


WHAT ARE THE STEPS INVOLVED IN USING A PRIORITIZATION FRAMEWORK?

Prioritization frameworks help you and your team determine what to work on next.
To do that, you need to follow a few general steps: 

 * Identify tasks: Identify and prioritize tasks based on a few criteria, such
   as customer value and business needs. 
 * Define criteria: These criteria will help you determine which tasks are
   feasible to pursue. 
 * Assign scores: Scoring uncovers features that are underperforming but
   necessary for customers. 

 * Rank items: Ranking lets you order tasks based on urgency and highest
   impact. 

All these make it easier to decide which tasks your team should tackle.


HOW OFTEN SHOULD YOU REVIEW YOUR PRIORITIZATION FRAMEWORK?

Your team should review its priorities regularly. The cadence of that review
depends on your team’s needs. You should also re-evaluate your prioritization
framework if business objectives change. A different framework might work better
than the one you’ve been using.


CAN A PRIORITIZATION FRAMEWORK IMPROVE TEAM COLLABORATION?

Prioritization frameworks are great to get everyone on the same page. You and
your team can work with stakeholders to clarify goals. You can also use
prioritization frameworks to make more informed decisions on which tasks to
prioritize.

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Discover the essentials of product development: from ideation to launch. Learn
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or alert you about these cookies, but some parts of the site will not then work.
These cookies do not store any personally identifiable information.

TARGETING COOKIES

Targeting Cookies

These cookies may be set through our site by our advertising partners. They may
be used by those companies to build a profile of your interests and show you
relevant adverts on other sites. They are based on uniquely identifying your
browser and internet device. If you do not allow these cookies, you will
experience less targeted advertising.

FUNCTIONAL COOKIES

Functional Cookies

These cookies enable the website to provide enhanced functionality and
personalisation. They may be set by us or by third party providers whose
services we have added to our pages. If you do not allow these cookies then some
or all of these services may not function properly.

PERFORMANCE COOKIES

Performance Cookies

These cookies allow us to count visits and traffic sources so we can measure and
improve the performance of our site. They help us to know which pages are the
most and least popular and see how visitors move around the site. If you do not
allow these cookies we will not know when you have visited our site, and will
not be able to monitor its performance.

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