Prioritization: Value/Effort

The Prioritization Matrix is a simple tool designed to help Product Teams make informed decisions about where to focus their efforts to maximize impact.

Quickly evaluate and rank proposed new features and functionality relatively, based on two key dimensions: Value and Effort. By plotting items on the matrix, teams gain clarity on which features will deliver the greatest benefits with the most efficient use of resources, given what is known at the time.

• Customer Value: This axis measures the importance or benefit of a feature to the customer (or the business). It answers the question, "How much value does this feature add?"
• Effort: This axis assesses the amount of work, time, and resources required to deliver a new feature. It answers the question(s), "How much effort will it take to deliver this?" or "What don't we know, yet?"

1. List Out Tasks/Features: Begin by listing all the tasks or features that need prioritization.
2. Assess Value and Effort: For each item, assign a value for both its benefit and the effort required.
3. Plot on the Matrix: Place each task on the matrix based on its assigned value and effort scores.
4. Analyze and Prioritize: Use the matrix to identify high-value, low-effort items (quick wins) and high-value, high-effort items (major projects).

• Enhanced Focus: Clearly identify what to work on next, ensuring efforts are aligned with delivering the highest value.
• Resource Optimization: Make informed decisions about where to allocate time and resources for the best return on investment.
• Improved Decision Making: Offers a visual and objective way to discuss and decide on priorities, reducing biases, and subjective judgments.
• Strategic Alignment: Ensures that the team's work aligns with overall business goals and customer needs.

To illustrate the practical application of the Prioritization Matrix, consider the examples provided below:

1. User Authentication System: High in value due to its essential role in security, yet moderately high in effort.
2. Real-Time Data Analytics Dashboard: A high-value feature for decision-making but requires significant effort in development.
3. Mobile App Version of a Web Service: Moderately high in value with substantial development effort.
4. Automated Customer Support Chatbot: Balanced in both value and effort, enhancing customer support efficiently.

Use the matrix to continuously guide prioritization across your Portfolio or Product Backlog, opening dialogue with your Team for more collaborative and informed decision making.