One of the most challenging scenarios in agency Product work during the Discovery phase is having several stakeholders, each with their own agendas, who collaboratively want all features delivered at MVP. How does one successfully navigate that, gain stakeholder alignment, and define a prioritized list of features on an approved release schedule?
Enter the Buy A Feature prioritization technique.
This methodology of prioritization and phasing is best used when there are a lot of features or a lot of stakeholders or both, and alignment is needed to determine value, timeline, and long-term goals. The outcome of this exercise is a democratized, defined, prioritized list of features that can be shared as an artifact and from which a Product Roadmap can be developed.
Step 1 — Feature Generation
Objective: As a group, identify and define a list of features for the product.
The Product team works with stakeholders to build out a list of features that could be released.
Step 2 — Feature Review
Objective: Finalize the list and assign a cost for each feature.
The Product team reviews the various features with stakeholders and together they combine any duplicates. A “t-shirt size” level of effort (LOE) is assigned to each feature and prices are assigned to each t-shirt size.
Assigning an LOE-based value adds a dynamic dimension to the exercise: typically no individual stakeholder has enough resources to fund an XL (high value) feature by themselves, and therefore some agreement and collaboration with other stakeholders is required. Conversely, if any of the smaller features were very high on any individual’s list, they have the resources to independently fund that feature themselves.
Assigning pricing to the features also makes it abundantly clear to all participants that not all features will be completed because resources are limited.
Step 3 — Budget Assignment and Shopping
Objective: Determine the business value of each feature for the purpose of feature development prioritization.
Based on the total value (N) of all features combined, provide each stakeholder with an equal budget totaling 60% of N value, and have them allocate dollars to each feature (N*0.6 / participants).
Stakeholders must then shop with their allotted budget to pay for features. It is at their discretion how they spread out or consolidate their funds among the available list of features, but in order for a feature to be successfully considered for development, it must meet or exceed its minimum price tag.
This means that stakeholders may pay more than the price tag demands, which will result in that feature receiving a higher priority value at the end.
Step 4 — Final Review
Objective: Calculate the value of each feature and define a sorted list of prioritized features.
Add up the combined dollar totals for each feature and then organize the prioritized list, based on their values bid.
Any outstanding features that did not receive enough funding to satisfy their price tags may be placed in the backlog for future development!
When the prioritized list is complete, it can then be used to build out an informed production roadmap that accurately reflects the business needs of stakeholders.
Another way this method can be utilized is during user interviews! The perspective of how a user values a list of features can be very insightful in making market-driven decisions.
Visit https://tri.be/services/strategy to learn more about how we approach strategy and discovery at Tribe!