RICE Scoring Framework
Why Prioritization framework:
For a product manager, at any given time, product backlogs are always highly populated with new product ideas, extensions, suggestions, requests, demands etc. But resources are always limited and product team can work only few initiatives simultaneously. Team cannot choose items on random basis or cannot prioritize the demands of the strongest voice of the team or most vocal customer. Product managers prioritize the projects that support the product vision and most strategically beneficial initiatives for the organization.
RICE Scoring model for prioritization:
RICE is a prioritization framework approaches quantitative measure and designed to help product development teams to determine which products, features, and other initiatives to put on their product roadmaps by scoring these features and initiatives according to four factors. These factors are Reach, Impact, Confidence, Effort (RICE).
RICE scoring model can offer product team below benefits:
i) Enables product managers to make better informed decision.
ii) Eliminates or minimize personal bias in decision making,
iii) Help them to defend their priorities to other stockholders for example the executive staffs.
History of the RICE scoring model:
Intercom, a renowned Software development company has developed and formulated the RICE roadmap prioritization model to improve their own decision process. The RICE score formula applied consistently across even the most disparate types of ideas, giving the team an objective way to determine which initiatives to prioritize on their product roadmap.
Working model of RICE scoring:
The completive product ideas such as New product, Product extensions, new right features etc. are evaluated by RICE model by scoring them according to RICE formula given below:
Reach: Reach represents the number of users or paying customers that would be directly affected by this feature during a set of period of time over which want to measure month/quarter. Such as, customer per month, Transaction per month, actions per month, free trail signups or how many existing users try new features.
For Example: if project estimates to deliver 1200 new prospects to download to trial download page within next month and that 30% of those prospects will sign up the Reach score is 360.
Impact:
Impact is defined by the overall contribution of a certain feature or initiative to product, reflected by the benefit users will get from the said feature or initiatives. This reflects how many new conversions of project will result in, when users encounter it or a more qualitative objective for example customer delight. Impact scale involves on estimation. So, Necessary questions to ask-
Will this feature improve conversion rate?
Will it help retain users?
Does it improve the ease of use significantly?
Impact is difficult to measure precisely. So, Intercom developed five tiered scoring system for estimating project impact. 3 for “MASSIVE” impact, 2 for “HIGH”, 1 for “MEDIUM”, 0.5 is for “LOW”, and 0.25 is for” MINIMUL”
For Example: For each user who see this will have a huge impact. The impact score is 3.
Confidence:
The metric accounts for the confidence our product team have in the estimations they made. RICE helps control projects in which team has data to support one factor of score but relying more on intuition for other factor. The Reach score having data but impact score represents more anecdotal evidence. Questions to be asked: How extensively can data support our estimates?
For Example, Confidence score is measured for a given project, Options are 100% for “HIGH”, 80% for “MEDIUM”, 50% for “LOW” confidence.
Effort:
Effort represents the amount of work that are required from product team to build a feature or finish a project. RICE as a cost benefit analysis, the other three components are benefits while effort that represent costs, Value types are, Person- Months, Project – Hours etc. Questions to ask: How much time will a feature require from all our team members?
To finish onboarding example Planning this projects with several weeks with at least 6 persons one month of design time roughly 186 days.
For Example: New On Boarding flow project, Reach = 2000, Impact =10, Confidence = 90%, effort: 186 days
For this example, RICE Score = (Reach x Impact x Confidence) / Effort = (2000x10x90%)/ 186 = 96.77. The product team select the best score among all RICE scores.
Conclusion: The RICE is a popular framework for product management team enabling confidence to prioritize strategically most impactful, beneficial features and initiatives. Also, RICE helps team quickly create a consistent prioritization framework to ship better products to stay competitive in the market.