The Best Prioritization Models In Agile Development - Part Two

Welcome to Part 2 of Agile Prioritization Methods! Next, we will examine other methods for prioritizing tasks. In the first part, we talked about the necessity of using task prioritization and gave explanations about the RICE, MoSCoW, Kano model, and Eisenhower matrix methods. Join us to discover how Agile Prioritization Methods empower Product teams to navigate the complexities of product development and deliver success.

Opportunity Scoring

tools for Opportunity Scoring

Opportunity scoring is a smart way to decide what's important when making agile products. It uses feedback from users to understand what they really want. By focusing on what helps users achieve their goals, we can make products that people are willing to pay for. This method, known as Opportunity-Driven Innovation (ODI), looks at what customers need to get done and how satisfied they are with current solutions. By analyzing this, we can figure out where there's room for improvement and prioritize our efforts accordingly. The key measure here is the Opportunity Score, which tells us how big the gap is between what customers want and what they're currently getting. Once we understand what customers are trying to achieve, we can break it down into smaller steps and focus on delivering the outcomes that matter most to them.

The Opportunity Scoring Process

The Opportunity Scoring Process breaks down the main task into smaller steps, each with its own desired outcome. Let's take app development as an example. Building an app involves many small tasks like designing the interface and writing the code. These tasks aim to achieve specific outcomes, like offering light or dark interface options based on user preferences. To calculate the opportunity score for each outcome, we talk to clients and ask them how important achieving that outcome is and how satisfied they are with the current strategy. They rate these on a scale from 1 to 10.

Calculation of the opportunity score

We calculate the percentage of respondents who rated both importance and satisfaction as 9 or 10, meaning they're satisfied. Only outcomes with these high ratings are considered. Then, we use these percentages in the Opportunity Score formula.

Evaluation

In the evaluation phase, a chart is key. It displays how well current solutions meet customer needs, guiding strategic decisions.

Some parts of the chart indicate oversupply, suggesting little room for innovation except for cost reduction. However, underserved areas, typically found at the bottom right, offer ample opportunity for innovation. For instance, if a client desires cross-platform software meeting specific criteria not yet fulfilled, investing in that area could be advantageous.

Basic needs, well-served but vital for competitiveness, are depicted in the middle. This process not only highlights essential tasks but also facilitates product comparison. By calculating opportunity scores for different products, you can determine which better fulfills customer wishes.

Ultimately, opportunity scoring directs focus toward crucial functions, ensuring a customer-centric approach to development through continuous feedback loops.

Stack Ranking

Stack ranking is like lining up tasks from most to least important. It helps teams figure out what needs attention first and what can wait. In agile projects, it's all about understanding what customers want and focusing on those things. By comparing different features, teams can decide what matters most to customers and prioritize accordingly. This method simplifies the task of choosing which features to work on next, leading to better products in the end. Plus, it's versatile enough to be used in any kind of project, making it a handy tool for teams everywhere.

Priority Poker

Priority Poker, born from the concept of planning poker, offers a dynamic way to prioritize tasks collectively. James Grenning introduced it in 2002, aiming to streamline decision-making in agile teams. It's a game where goals, business objectives, usability issues, and more are put on the table for discussion.

In this agile method, real playing cards represent different items. Just like in poker, calculating priorities is key to success. The goal? To ensure the chosen tasks lead to significant victories in the market.

Involving all team members equally is crucial for effective prioritization. By removing bias and encouraging everyone's input, the team can make well-informed decisions. Stakeholders also play a vital role, bringing valuable insights from the end-user perspective.

Through priority planning, teams navigate complexities and align efforts towards impactful outcomes. With Priority Poker, agile teams can achieve success by strategically selecting tasks that drive product excellence and meet customer needs.

Cost of Delay

Cost of Delay is a vital concept in project management, helping teams understand the value and urgency of tasks. Simply put, it's about estimating how much a product's value would decrease if it's delayed. By calculating this, teams can prioritize tasks effectively, focusing on those with the highest impact and urgency.

This technique is especially crucial in backlog prioritization, where it helps identify the financial implications of delaying certain features. It's like a financial model that shows how much money could be lost if key features aren't delivered on time.

The key here is balancing profit and loss. By understanding the potential financial consequences of delays, teams can allocate resources wisely and make decisions that are both financially sound and aligned with the company's goals.

In essence, Cost of Delay is about making smart financial decisions in project management. By incorporating it into prioritization strategies, teams can ensure that their efforts are not only driven by passion but also justified by their impact on the bottom line.

100 Dollar Test

In this agile prioritization method, participants use a creative approach to assign value to items on a list. Imagine you have $100 to distribute among the items based on their importance. This concept of using cash grabs people's attention and keeps them engaged, unlike a traditional ranking system.

This method is perfect for group settings, where everyone can participate in the prioritization process. For instance, you can combine it with the MoSCoW model to categorize items based on their value.

Here's how it works: If a requirement or product is estimated to bring in $800, it's classified as a "Must-have" (Mo). If it's expected to generate between $300 and $400, it's a "Should-have" (S). For items bringing in $100 to $200, they're "Could-have" (Co), and those generating less than $100 are "Won't-have" (W).

This method not only demonstrates how the market functions but also helps manage stakeholders effectively. By analyzing the results and discussing them, teams can fine-tune their priorities to ensure alignment with business objectives.

In essence, using the concept of cash adds a fun and engaging element to the prioritization process, making it more effective and insightful for everyone involved.

?Relative Weighting method

The relative weighting method is a clever way to prioritize tasks in agile project management. It takes into account both the value and cost of each task, helping teams decide which ones to tackle first.?

To determine the value of a task, teams consider its benefits. This could vary depending on the organization and what they value most. It could be customer satisfaction, revenue generation, or any other relevant metric.

On the other hand, the cost of a task is estimated using the Fibonacci number sequence. This provides a relative proxy for how long it might take to develop the task. For instance, a task with a higher Fibonacci number would likely take longer to complete and thus incur a higher cost.

By weighing both the value and cost of each task, teams can assign a priority score to them. This score helps them decide which tasks to focus on first, ensuring they maximize value while managing costs effectively.

Overall, the relative weighting method provides a structured approach to prioritization, helping teams make informed decisions and achieve their project goals efficiently.

Conclusion?

In conclusion, agile prioritization methods play a crucial role in guiding product development teams towards success. By exploring various techniques like RICE, MoSCoW, Kano model, Eisenhower matrix, Opportunity Scoring, Stack Ranking, Priority Poker, Cost of Delay, 100 Dollar Test, and Relative Weighting, teams can effectively manage complexities and deliver products that meet customer needs. These methods empower teams to prioritize tasks, align efforts with business objectives, and maximize value while managing costs efficiently. With a customer-centric approach and continuous feedback loops, agile teams can navigate the challenges of product development and achieve strategic goals. By leveraging these diverse prioritization techniques, teams can ensure that their efforts are focused on delivering impactful outcomes that drive product excellence and customer satisfaction.