Product prioritization is the artwork of selecting the best options to develop, within the appropriate order on the opportune time. It balances the significance of options alongside their complexity and the tip worth they may ship. The primary concept of prioritization in Product Administration is to maximise enterprise outcomes with the accessible assets. Product prioritization shouldn’t be restricted to solely CPO roles. It may very well be additionally lined by Product Advertising and marketing, Product Design, or engineering groups.
Whereas working as the Head of Advertising and marketing at a high-growth no-code startup, I led Product Advertising and marketing and oversaw Product Administration features. Each of the features have been extremely related with testing product hypotheses for our web site, customers’ and builders’ onboarding, and the product itself. In complete, we examined greater than 50 product concepts and elevated funnel conversion virtually 6x occasions throughout all levels of the shopper journey. Ruthless prioritization was the important thing to my staff’s success.
Prioritization as a startup superpower
There are tons of of includes a startup would possibly need to construct. In addition to tons of of UI enhancements to tweak, tens of millions of selling concepts to check, and dozens of development techniques to strive. Which of these concepts would transfer the needle to your startup? And which might take plenty of time and produce mediocre traction?
Excessive-growth startups function within the ocean of chaos and uncertainty. So well-thought-out prioritization of each exercise is the one solution to drive development for startups with a restricted time, consideration, and finances. Whereas this information is only targeted on product prioritization, you should use the identical frameworks for advertising, development, and design speculation.
As Lenny Rachitsky from Airbnb as soon as wrote, “unhealthy prioritization is a superb solution to kill your startup”. Don’t let it occur.
Characteristic prioritization at startups — Why it’s so onerous
Profitable corporations begin with the merchandise individuals love. Nonetheless, selecting the best options to develop is tough for thus many causes, particularly for startups. I’ve been working inside startups for the final 10 years and Product Growth has by no means been straightforward. So let’s discuss typical issues startups have when attempting to resolve what to construct: restricted assets, excessive likelihood to be biased, not sufficient knowledge, lack of alignment and absence of Product Technique.
Restricted assets
Startup founders don’t have the luxurious of calmly constructing a lot of small options, hoping that a few of them will enhance the product. Neither have they got an opportunity to wager on one enormous function and danger one yr of improvement. Startups ought to deal with the “pain-killer” options which is able to deliver the “AHA second” nearer and improve utilization metrics. If this doesn’t occur, the startup will run out of cash whereas the product will probably be ineffective. The much less funding a startup has, the less errors (iterations) it could afford to make when constructing an MVP or determining Product-Market Match.
Excessive likelihood of bias
If you happen to learn The Mother Take a look at guide, you in all probability know that individuals will lie about their expertise together with your product to make you are feeling comfy. Startup founders are usually very biased in the direction of options they consider in, particularly when “high-potential” customers bathe the product with compliments. Because of this product prioritization might be influenced by biased opinions, having “nice-to-have” options on the prime of the record. Most startup founders have their very own imaginative and prescient and “Product Instinct”, generally it really works however not all the time.
Not sufficient knowledge
Startups may not have sufficient knowledge to prioritize one function over one other, each from the affect or problem to construct perspective. Typically having somebody who can collect and interpret knowledge is a problem for startups. Even within the PM & PMM world, having a powerful data-driven staff is extra typically a dream fairly than a present actuality.
Lack of alignment
When a startup tries to maneuver on the velocity of sunshine, that motion may very well be in all method of instructions. Completely different groups can have various opinions as to what’s “essential”. Product prioritization turns into a struggle between what brings Product-Led Development, extra leads, greater Internet Promoter Rating, higher Person Expertise, greater retention, or decrease churn. Lack of alignment shouldn’t be the final problem startups face when prioritizing options.
Absence of Product Technique
Typically startups get too obsessive about constructing what opponents have fairly than what their customers want. In different circumstances, a Product Technique with a transparent roadmap doesn’t exist in any respect, so options will fill pressing wants fairly than assist obtain strategic objectives.
Characteristic prioritization frameworks
Regardless of all difficulties with function prioritization, you will get it proper utilizing one of many fashionable frameworks. Think about them a solution to construction your considering course of, hold focus and keep on track. The job of the Product Proprietor main this course of is to choose the correct framework for the startup’s wants.
Due to my expertise with these frameworks, I will share some sensible and fascinating use circumstances from my time at WeLoveNoCode, each from Product and Advertising and marketing views. Clearly, we didn’t use all of them on the similar time however examined how these prioritization frameworks will go well with us:
1. RICE Technique
2. Affect–Effort Matrix
3. Feasibility, Desirability, and Viability Scorecard
4. Weighted Scoring Prioritization
5. MoSCoW Evaluation
6. Value of Delay
RICE Technique
Let’s begin our deep dive into prioritization with a framework developed by the Intercom staff. It charges each function, speculation, or concept primarily based on 4 components — Attain, Affect, Confidence, and Effort. As a Product Proprietor in a startup, you’ll take into consideration every issue from a really pragmatic perspective:
- Attain
It is best to take into consideration what number of customers the function may affect in a particular timeframe. For instance, the variety of new engaged b2b prospects you possibly can acquire if you happen to launch this function. Or the quantity of recent no-code builders who can begin working by way of our market, if we implement a brand new builders’ onboarding. It’s regular to place estimates right here. - Affect
How essential will this function be for customers? Even when the function has a small attain however helps clear up the large drawback of the high-LTV shoppers, then its Affect could be excessive. Your staff ought to give you the chance to empathize with the shoppers’ pains to appropriately consider affect. - Confidence
Can this product concept deliver vital attain and affect? The Confidence issue comes from 0 to 100% the place 100% is a complete confidence, and 0% is an entire insecurity. Product Homeowners in startups are evaluating possibilities. So when my staff works on a brand new speculation, we go away ourselves area to be improper and it’s completely high quality. - Effort
When your assets are very restricted, the time it takes to develop options is crucial. Ultimately, it comes right down to the complexity of the function and measurement of your tech staff. So the Effort issue is scored as “the required variety of individuals per 30 days” worth. The decrease, the higher.
Often, the Product Proprietor will rating all options within the spreadsheet like this primarily based on the Attain, Affect, Confidence, and Effort. Then talk about scoring with the staff. All scores go into the system. The primary three parts are multiplied collectively after which this complete is split by “Effort” to offer a remaining rating for every function. Product concepts with the largest rating go into the event backlog.
Once we used RICE for WeLoveNoCode builders’ onboarding, we had a speculation that if we lower steps in builders’ onboarding from 4 to 2 it’ll improve the variety of builders’ registrations.
Let’s say that the Attain for us was round 3,000 new devs/per 30 days. The Affect was huge, with a rating of three. Our sign-up type abandonment charge was 66%! The Confidence was 90%, as we had knowledge on how comparable modifications influenced prospects’ onboarding, on prime of suggestions from builders.
The Effort was low, as we had a powerful Bubble developer to construct it. On the finish of prioritizing all product hypotheses, this one had the best rating and went into improvement first. The RICE framework is appropriate for some circumstances but in addition has some downsides:
- Professionals of utilizing this framework
Its spreadsheet format and data-base method are superior for data-focused groups. This technique additionally filters out guesswork and the “loudest voice” issue due to the arrogance metric. Usually, we examined 10-15 product hypotheses per week at WeLoveNoCode, so having a spreadsheet format is definitely excellent.
- Cons of utilizing this framework
The RICE format may be onerous to digest in case your startup staff consists primarily of visible thinkers. While you transfer quick, it’s important to make use of a format that everybody will discover comfy. Typically it’s a prioritization for 30+ doable options for complicated merchandise, let’s say a brand new animation editor. So it turns into an extended spreadsheet to digest.
Affect–Effort Matrix
In case your staff is filled with visible thinkers, the affect–effort matrix will go well with you. This 2-D matrix plots the “worth” (affect) of a function to the person vs the complexity of improvement, in any other case referred to as the “effort”. When utilizing the affect–effort matrix, the Product Proprietor firstly provides all options, or product hypotheses. Then the staff who executes on these product hypotheses votes on the place to position the options on the affect and energy dimensions. So each all the things goes into one in all 4 quadrants:
- Fast wins
Low effort and excessive affect are options or concepts that may deliver development. For WeLoveNoCode, fast wins have been optimization of touchdown pages’ design/content material for Google Adverts campaigns. This considerably boosted advert efficiency, introduced us extra leads and made the expertise higher for these pages. Whereas it was a speculation in between paid and Product Advertising and marketing, it labored very effectively and required simply minor modifications on our Tilda web sites. - Massive bets
Excessive effort however excessive affect. These have the potential to make a giant distinction however should be effectively deliberate. In case your speculation fails right here, you simply waste plenty of improvement time. As yet one more real-life instance, our massive wager was redesigning shoppers’ dashboard and making a funnel to steer customers to purchase trials with out calls with gross sales managers. Consider it as designing a self-serve mannequin for a sales-led product. In consequence, in the course of the first week we applied it, we achieved 4 trials (with the potential of a $4000 month-to-month subscription) per week with out gross sales touches. - Fill-ins
Low worth but in addition low effort. Fill-ins may not take a lot time however can solely be justified if different extra essential duties are full. It’s not “quick wins” however fairly backlog gadgets that you simply would possibly need to construct. As fill-ins, we redesigned the animation on our touchdown web page header. It didn’t have a excessive affect and didn’t take time, as we made animations quite simple and proper in Tilda. On the similar time, it appeared extra per the remainder of the touchdown web page design.
- Cash pit
Low worth and excessive effort. These are the options that may kill a startup if time is wasted on them. In 2015 I used to be engaged on my startup known as Flawless App. Again then we spent 12 months constructing a fully-functional MVP with three plugins, an internet model, and an internet site. Too many options, not sufficient analysis, and no prioritization resulted within the failure of the primary model. Ultimately, we constructed options which customers wished, getting 17,000+ designers & builders from massive corporations to make use of our merchandise. Afterward Flawless App was acquired by Summary, so my startup story had a cheerful ending.
Affect–effort matrix can reside inside your staff’s Miro or Mural board. This method is good when you may have many contributors and wish to decide on between a number of key options/product concepts. Like some other framework, the affect–effort matrix has its professionals and cons:
- Professionals of utilizing affect–effort matrix
It permits fast prioritization and works effectively when the variety of options is small. It is extremely visible, excellent for design-led corporations. Additionally, it may be shared throughout the entire startup staff, because it’s straightforward to know from the primary look.
- Cons of utilizing affect–effort matrix
It doesn’t work effectively when you may have plenty of options, concepts, and gadgets to debate. It’s onerous to visually prioritize many concepts with a excessive stage of accuracy. For instance, if two product hypotheses are “fast wins”, which ought to go first? Additionally, generally “fill-ins” take way more time and assets than anticipated and create lack of focus, which may be very harmful for startups.
Feasibility, Desirability, and Viability scorecard
Developed by IDEO within the early 2000s, this scorecard takes three core standards — feasibility, desirability, and viability. It scores every criterion for each function and takes a complete to resolve on the precedence. Scoring work from 1 to 10. Primarily based on my expertise, it’s a great framework for evaluating high-level options for future merchandise (but it surely’s not purely for PM). We used it throughout dialogue at my startup Flawless App. Listed here are what each dimension means:
- Feasibility
Can we construct this function with expertise and assets accessible? Is it doable to make this explicit product speculation quick and with out hiring additional individuals? Do you may have an accessible tech stack/instruments/cloud storage to do it? - Desirability
Does this clear up the ache for the shoppers? Do they actually need this function? Will they be able to pay for it? - Viability
Will customers really pay for it and the way a lot? Is it price investing in it (ROI)? Is there any unit economic system behind this function?
Utilizing this framework, your staff creates a spreadsheet with product options and places a rating for every parameter. One other manner to make use of this framework is to guage MVP concepts for feasibility, desirability, and viability by way of a staff dialogue. Concepts which have probably the most assist from the staff on these parameters can go proper into the design dash. Use the related individuals to assist the evaluating, for instance, builders to have a look at feasibility or Product Advertising and marketing Managers to debate desirability. This scorecard is fairly simple with clear professionals and cons:
- Professionals of utilizing a feasibility, desirability, and viability scorecard
It’s versatile and might be custom-made to work for the precise necessities of the startup. For instance, feasibility, desirability, and viability scorecards can be utilized for evaluating advertising initiatives, hypotheses for buyer success groups, or MVP ideas. As some startups don’t work effectively with inflexible frameworks, this mannequin generally is a good choice.
- Cons of utilizing a feasibility, desirability, and viability scorecard
This method depends lots on information of what the shopper needs and the way complicated new options are. That isn’t all the time knowledge {that a} startup has. Additionally, it’s extra appropriate for a workshop, or dialogue on the chief stage. For Product Advertising and marketing or Product Administration groups, it’s not a day-to-day software (I could also be biased, so be at liberty to share your opinions right here).
Weighted Scoring Prioritization
This technique follows the same sample to different frameworks on this record however with the numerous addition of weighting how a lot of every class counts in the direction of the ultimate complete.
The method begins by choosing the standards/classes you’ll be utilizing to charge the options. For instance, you would possibly choose “person expertise”, “gross sales worth”, “strategic affect”, “person adoption” or any of the Acquisition, Activation, Retention, Referral, Income (AARRR) metrics if you wish to deal with person conduct.
Subsequent, it is advisable to resolve what significance you give to every class, including a share worth to every criterion (as much as 100%). For instance, in the course of the early levels, you would possibly deal with person expertise to make an MVP usable, or if in case you have a product with a Product-Market Suit you would possibly must suppose extra about retention. Every function can have a rating on these classes, from 1 (min affect) – 100 (max affect). Then now you can calculate the ultimate rating for every function.
This technique has the potential to be very helpful within the startup the place you possibly can customise the weighting to suit the altering priorities of the enterprise:
- Professionals of utilizing weighted scoring prioritization
The framework is customizable, whereas many others on this record are extra inflexible of their implementation. This lets you make the most of the framework over an extended time period by altering the emphasis to suit the place you’re in your journey.
- Cons of utilizing weighted scoring prioritization
Typically the weighting percentages might be onerous to place. If you happen to’re a founder who can perceive how every function will affect person adoption throughout the entire product ecosystem, then it would work. Nonetheless, PMMs & PMs may not all the time have such a “bird-eye” view in a startup.
MoSCoW evaluation
This can be a fashionable framework throughout the agile world that speaks the easy language of how you’ll describe the function to a buddy. In keeping with MoSCoW, all of the options go into one in all 4 classes:
- Should Have
These are the options that may make or break the product. With out them, the person will be unable to get worth from the product or gained’t have the ability to use it. The “must-have” options are the the explanation why customers pays to your product. For collaboration-based merchandise these are the flexibility to ask team-members to the workspace/mission and work collectively. - Ought to Have
These are essential options however not very important to have instantly. Consider them as your “second priorities”. It may very well be enhanced choices to collaborate higher on some typical use-cases. It may very well be collaboration templates, much like Miro Templates Library or Airtable Templates. - May Have
Usually seen as good to have gadgets, not crucial however could be welcomed. One thing much like “vitamin” options however not “ache killers”. That may be integrations and extensions, including your product to the everyday customers’ workflow. - Will Not Have
These are options or product hypotheses that aren’t required and must be dropped. It’s much like the “cash pit” within the affect–effort matrix framework.
The MoSCoW framework can be utilized in a Miro board, so your staff can prioritize options visually there. It may be a sensible choice at the beginning when it is advisable to outline options to incorporate.
- Professionals of utilizing this framework
That is excellent when in search of a simplified method that may contain the much less technical members of the corporate and one that may simply categorize a very powerful options.
- Cons of utilizing this framework
It’s tough to set the precise variety of must-have options. Your Product Backlog can have an excessive amount of must-have options which places strain on the event staff.
Value of Delay
Distinctive on this record, as this framework focuses solely on the financial worth because the measurement. The framework is designed to calculate the price to the startup of not producing the function instantly. It’s comparatively simple to know, though the calculation itself does require vital thought out of your groups. The calculation is as follows:
- Estimated income per unit of time, for instance, how a lot may very well be billed over a month interval if the function existed.
- Estimated time it’ll take to finish the event of the function.
- Divide the estimated income by the estimated time to offer you the price of delay.
Let’s discuss yet one more instance. WeLoveNoCode had a gross sales funnel when the shopper jumps on the decision with the no-code professional earlier than beginning the trial. One of many advertising objectives was to steer MQLs to the decision. By growing the variety of calls, we improve the variety of offers. So all the things that slows down this course of prices us income. Once we have been prioritizing a brand new set of product hypotheses primarily based on the Value of Delay framework, we had one clear “winner”. This was a speculation about lowering the quantity of friction throughout reserving the decision buyer journey. One level of friction was an extended gross sales screening questionnaire inside reserving a name software program (Calendly). We estimated the Value of Delay within the misplaced offers alternatives.
This can be a good framework when a startup is concentrated on working by means of a function record fairly than constructing an preliminary MVP:
- Professionals of utilizing this framework
You possibly can instantly calculate the worth of manufacturing a function, so it’s a extremely efficient manner of prioritizing function backlogs. It is usually helpful in serving to staff members perceive the worth of options they may not have appreciated.
- Cons of utilizing this framework
For startups with no secure enterprise mannequin, the income estimate may be very a lot primarily based on a intestine really feel and consequently, can typically contain inner arguments in regards to the remaining determine.
Prioritization inside a startup is (sensible) guesswork
Prioritization in a startup is about laser deal with issues that matter probably the most. You want a framework in place that ensures you’re constructing the precise options, selecting the best speculation to check, operating a promising advertising marketing campaign, and designing essential person interfaces.
Nonetheless, it’s nonetheless sensible guesswork. The choices it is advisable to make can have a component of intuition as effectively. So it is advisable to be agile in your method. Belief your self, take heed to customers, and don’t be afraid to vary priorities if wanted.
