My approach to prioritising better in product

Each day, we as product managers are tasked with the intricate and often challenging job of prioritizing product features and solutions. For each client, their request is of utmost importance and wants to be treated as a number one priority. But it is our responsibility to sift through these demands and identify the true priorities that will provide the most value to the product and its users. 

Prioritization is far from a simple task; it requires mastery! Some might assume that it’s merely a matter of picking and choosing features to deliver, so what’s the harm? I say, if the features are not properly evaluated and timed, the consequences can be severe if nothing else. Consider an Ad Tech product running marketing campaigns; imagine randomly prioritizing and implementing a Halloween-themed feature in the middle of summer. It would not only be out of context but could also lead to wasted resources and missed opportunities.

The importance of understanding each feature request cannot be overstated. We must be able to prioritize and sequence them correctly for optimal delivery. This involves a deep understanding of the business goals, user needs, market trends, and product roadmap. It also requires the ability to balance short-term gains with long-term strategy. Moreover, a key part of our role is the ability to say “no” when necessary. This doesn't mean simply rejecting requests, but rather providing a clear and reasoned explanation for why certain features are prioritized over others. This ability to communicate effectively and manage stakeholder expectations is crucial. It ensures that clients understand the rationale behind decisions and helps to maintain trust and transparency.

Over the years, I have honed a prioritization technique that has consistently guided me through the complex landscape of product management. This method, which I like to call my "secret recipe," is a numeric point-based formula that is both straightforward and effective. It encompasses the most crucial parameters needed to gain a high-level understanding of priorities. Here, I will walk you through the main components of this formula, illustrated with examples to help you apply it in your own work.

The formula revolves around three main pillars: Value, Impact, and Ease. These pillars form the foundation of the pointing system that helps you create a prioritized list of features and solutions.

The first pillar, Value, focuses on the benefits that a feature or solution will bring. It answers questions such as: What business gains can be expected? What outcomes are we aiming for? Essentially, it measures the potential return on investment.

Example: If a feature is expected to improve operational efficiency by 20% or significantly boost the Net Promoter Score (NPS), it receives a high-value rating.

The second pillar, Impact, assesses the consequences of delaying or not delivering a feature on time. This pillar helps quantify the urgency and importance of a feature.

Example: If not implementing a feature could result in a 10% loss in revenue, it gets a high impact rating.

The final pillar, Ease, evaluates how simple or complex it is to implement a feature. This includes considering whether the required expertise and technology are readily available within the organization.

Example: A solution that requires only a few lines of coding and can be implemented quickly scores high on ease. Conversely, a feature that demands extensive design work and new components would score lower.

Applying this prioritization method has been instrumental in my career. To illustrate its effectiveness, let me share a specific example from my own experience involving an Identity Management product.

This product consolidates fragmented customer data into a single, unique identity, providing a 360-degree view of each customer. Imagine that the product currently manages half a million identities and includes basic features such as loading more identities, matching identities using predefined rules, and performing searches using a single method. Now, we aim to enhance this MVP (Minimum Viable Product) by adding new features to make it more robust and expandable. Below is a list of features we need to prioritize, and we'll use our pointing system to rate and prioritize them.

The first feature listed in the above table involves standardizing postal addresses from various formats received in the address field. This standardization will help the product easily compare and match records since they will be in a consistent format. The primary business value here is an improved matching rate. However, there is no significant business impact if this feature is delivered later because the product can still produce matching results using other key attributes. The implementation requires a medium level of technical development.

The second feature is highly requested by the business. It enables a demographic search for an identity using a different method than the one currently available. This feature is crucial because, without it, we may not be able to onboard new identities into the product. The impact of not delivering this feature on time is significant due to a contractual obligation for an end-of-year launch. Hence, this feature is high value and high impact, although it involves a moderate degree of complexity to implement.

The third feature involves adding new fields such as referential identifiers (passport, driver’s license, state license) as well as indicators for “known not duplicate”. This feature will greatly help in resolving multi-match and multi-birth scenarios, thereby improving the matching rate and reducing underlinking. While there is no hard deadline, the sooner this feature is added, the better the results, especially before onboarding new identities. However, this task is complex as it affects various components of the product and matching rules.

Now, let's apply the pointing system to these features, rating each out of five for value, impact, and ease:

Prioritized List

Based on the total scores, the features are prioritized as follows:

This prioritization technique effectively captures and quantifies the essential parameters to produce a definitive prioritized list. This approach not only simplifies the prioritization process but also provides a transparent rationale that can be communicated to stakeholders, fostering trust and clarity in the product development journey.

In summary, prioritization is a complex and essential task that requires a strategic mindset, excellent communication skills, and a deep understanding of both the product and the market. It involves more than just picking and choosing features; it's about making informed decisions that drive the product forward and deliver the most value to users and clients alike. This is where the pointing system comes in handy; the three pillars of Value, Impact, and Ease provide a robust framework for prioritization. By systematically applying this approach, you can ensure that your product decisions are strategic, balanced, and aligned with business goals.