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Writer's pictureLuigi Liguori

My secret formula for feature prioritization



Ever found yourself drowning in the sea of feature possibilities, unsure which one to prioritize? Ever toiled away, only to realize later that your efforts were misplaced? I've certainly been there, and let me tell you, it's far from a joyride. But fear not, for over time, I've crafted my method, a personal compass, if you will, guiding me and my team to greater heights and accomplishments.

So, where do you begin this journey of prioritization enlightenment?

Step 1: The KPIs.

Picture this - your team's Key Performance Indicators (KPIs). Don't make them overly complex; just pinpoint what truly moves the needle. Narrow it down to a fab five. To check if you've hit the jackpot, link 2-3 different features to each KPI. If the connection sings, you're golden. If not, the quest continues.

Now, how do you grade these KPIs? I've got a nifty 5-point scale, embracing financial returns or feature consumption metrics tailored to your product. Adjust it to your product's dance moves, for financial outcomes and feature appetites waltz differently in each business.

Let's take a peek at an example:

Priority Size

Financial Return KPI

Consumption increase KPIS

0

You can use it when the value (monetary or consumption) is not applicable or not directly related to the KPI

You can use it when the value (monetary or consumption) is not applicable or not directly related to the KPI

1

< 5 K EUR

>1%

2

Between 5-10K EUR

Between 1%-2%

3

Between 10-50K EUR

Between 2%-3%

4

Between 50-100K EUR

Between 3%-5%

5

> 100K EUR

>5%

Onward to Step 2: Your strategy.

Time to dust off those strategy books or not. Dive into the essence of the feature and see if it twirls seamlessly with your strategy. Despite the challenge, navigate the unexpected with your data.


Assess two vital elements at scale:

  1. The risk of not doing it, as seen as a missed opportunity, and how this will impact your business. For instance, let’s assume you are Sony and you are in the TV business. 15 years ago the product manager had to evaluate if putting or not a LED TV screen as a new standard vs the cathodic tube. If you were that PM you had to evaluate the potential missed opportunity of not producing LED TV screens while other players like Samsung and LG were aggressively on the market.

  2. The overall company strategic fit, as seen as how well that product fits your company in terms of brand, natural development, and also what investors might expect from you. For instance, let’s assume you are working for Apple and suddenly a Product Manager comes up with the idea of selling Apple-branded couches, for sure the strategic fit is not there considering the core business of the company. 

Priority Size

Risk of not doing it

Contribution to Company Strategy

0

You can use it when the value (monetary or consumption) is not applicable or not directly related to the KPI

You can use it when the value (monetary or consumption) is not applicable or not directly related to the KPI

1

Game changer

No fit

2

Managable next year

Maintain

3

Competition gap

Improve

4

Need this year

Boost

5

High, needed

Game Changer


On to Step 3: Your team, your (possible) win.

Know your team like your pockets. This intel is crucial, for the next step hinges on them. Gauge two elements: the team's ability to win (realizing the feature within the assigned timeframe) and consumer relevance (the insights gathered). This isn't a solo act; you're counting on your team to shine.

How do you grade your team's prowess?

Priority Sizing

Chance of success

Consumer relevance

0

You can use it when the value (monetary or consumption) is not applicable or not directly related to the KPI

You can use it when the value (monetary or consumption) is not applicable or not directly related to the KPI

1

Very uncertain

No insights

2

Uncertain

Internal definition

3

Positive expectation

Customer needs

4

Certain

Confident in meeting consumer needs

5

High Confidence

Validated (either via MI, UX, Data Analytics, Beta)

Finally, Step 4: Your specific business bonus point.

Every business has its quirks, its unique flavor. So, I've set aside 5+5 points for your business specifics. Maybe it's your support for new products or your top-notch security features. Let your business shine through.


Now, the grand finale - The Final Count for feature prioritization.

This 55-point system unveils the feature's priority like a curtain rising on a stage. Decode it like this:

- Scoring 39-55: Must do

- Scoring 30-38: Do

- Scoring 15-30: We should do

- Scoring 0-15: Do not do


Feeling intrigued? Download the template and let this framework orchestrate the priorities for your Product Team. Prioritization just got a whole lot more interesting, didn't it?




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