Product - Feature Prioritization Scoring tool

The RICE framework is a prioritization method used by product managers to evaluate and prioritize different features, ideas, or projects. It helps in making data-driven decisions by scoring and ranking options based on specific criteria. In short, RICE helps product managers make informed and consistent decisions about what to work on next!

RICE stands for:

1. Reach:

   • This measures how many people a project or feature will impact within a given time period. For example, if a new feature is expected to reach 10,000 users per month, it has a high "Reach."

   • Example unit: number of users, customers, or actions in a given time frame (e.g., monthly).

2. Impact:

   • This estimates how much impact the feature or project will have on those users, typically on a scale from 0.25 (minimal impact) to 3 (massive impact). It’s a qualitative measure of how significant the change will be.

   • Example: If the feature boosts engagement, user retention, or revenue, the higher the impact score.

3. Confidence:

   • This measures how sure the team is about their estimates for Reach and Impact. Confidence is scored from 0 to 100%, where a lower confidence score means there’s more uncertainty about the expected outcome.

   • Example: If the team has high confidence due to data or past similar projects, they would give it a high score.

4. Effort:

   • This measures the amount of time, resources, and work required to complete the feature or project. It is usually scored in person-months, which is the number of months it would take for one person to complete the task.

   • Example: If a feature requires a lot of development time, the effort score will be high.

How the RICE score is calculated:

To calculate the overall RICE score, you use the formula:

RICE score= (Reach × Impact× Confidence) / Effort

The goal is to get a higher score, which means the feature or project is more valuable relative to the effort it takes to implement.

Example:

• Reach: 10,000 users per month

• Impact: 2 (on a scale of 0.25 to 3)

• Confidence: 80% (0.8)

• Effort: 5 person-months

RICE score= (10,000×2×0.8)/ 5= 3,200

Why product managers use the RICE framework:

• Objective decision-making: It helps product teams focus on initiatives that have the biggest impact relative to the effort required.

• Resource allocation: It allows product managers to allocate resources (time, effort, budget) effectively, especially when working on multiple initiatives.

• Prioritization: It provides a clear framework to compare different product ideas, features, or tasks, ensuring that the highest-value items are prioritized.