Using a Value Score Matrix for Prioritisation

In a previous post, I described the Product Radar as a way to visualise and communicate your product strategy and priorities. This post outlines a way to use a Value Score Matrix to aid prioritisation of potential roadmap items according to their business value vs. their estimated complexity and risk.

• What is a Value Score Matrix?

• How do I create a Value Score Matrix?

• How do I use the Value Score Matrix for Prioritisation?

What is a Value Score Matrix?

A Value Score Matrix is a way to objectively prioritise items on your product roadmap by scoring them in terms of potential value vs. the effort and/or risk involved in building them.

It is most useful during the Discovery phase, just after ideation, when you may have a high volume of ideas and need to prioritise them quickly to "sort the wheat from the chaff".

How do I create a Value Score Matrix?

1. Assign each item a value score from high (3) to low (1)

• When doing this:

• Think about the extent to which the item contributes towards your current product or business strategy, objectives, KPIs, or vision.

• Consider the risks of not doing it e.g. regulatory or competitive risks.
  

2. Assign each item an effort or complexity score of low (3) to high (1)

• If you already have t-shirt estimates, use Small (3), Medium (2) & Large (1).

• If you have XS and XL sizes, you can score from 1-5 but this will increase the size of your scoring bands in the table at the end.

• If you don't yet have estimates, use your experience to estimate the likely complexity.
  

3. Assign each item a risk score (optional) from low (3) to high (1)

• This is the hardest but I find Marty Cagan's risk analysis model helpful.

1. Value: will customers buy it or choose to use it?

2. Usability: will users be able to figure out how to use it?

3. Feasibility: can we build it with the time, skills, and tech available?

4. Business viability: could it have a negative impact?

• Value & Feasibility are covered by points 1 & 2 above so they are greyed out.

• If there's a risk of poor adoption or a result not aligned with your current goals, score it as a 2 or a 1.

• If the idea doesn't have any negative associated risk, score it as a 3.

Tip: as it can be counterintuitive to score value from high (3) to low (1) but complexity and risk from low (3) to high (1), I tend to map them in an Excel template like the one below:

Value Score Matrix Template.xlsx

Download XLSX • 30KB

4. Multiply the scores

• You then multiply your scores to arrive at a total between 1-27 if using risk and 1-9 if only assessing on value and complexity.

• Finally, sort the items by Total Score from high to low to arrive at a ranked list.

How do I use the Value Score Matrix for Prioritisation?

• Items with the maximum score of 9 or 27 (if using risk) are your "quick wins" or "Must Haves": high value items with no down side. You should consider doing these immediately, potentially while performing more detailed cost benefit analysis on the next highest scoring items.

• Those with a score of 4-6 or 12-18 are your "Should Haves". Things you should look to do after the quick wins. You may need to decide on a case-by-case basis if these are worth doing, depending on the nature of the risk or complexity involved.

• Items scoring 2-3 or 6-9 are of lower priority and can be revisited later.

• Items with a score of 1 or 3 are probably not worth doing, or at least not unless there is a change in the level of risk or complexity involved, or they become more urgent or valuable e.g. due to competitor activity or regulation. In MoSCoW terms (Must, Should, Could and Won't), these are your "Won't Haves".

Summary

The Value Score Matrix allows you to objectively prioritise a high volume of ideas based on their potential business value relative to their complexity and / or risk.

The highest scoring items are those that should be at the core of your Product Radar and on your Product Roadmap for the next 1-3 months. Those lower down the list might be worthy of further analysis to determine the priority. Those at the very bottom are likely not worth doing and should be relegated to the outer limits of your radar.

Be sure to revisit your value score matrix regularly to ensure that the value, complexity and risk are still accurate and valid.