Product Owner

How can a Product Owner effectively prioritize the Product Backlog for maximum ROI?

L Asked by Laura Chen · 10-09-2024
0 upvotes 15,515 views 0 comments
The question

I'm a new Product Owner struggling to balance conflicting requests from sales, marketing, and engineering. What are the top three prioritization techniques I should use (beyond simple voting) to objectively order the Product Backlog and ensure the development team is always working on items that deliver the highest Return on Investment (ROI) and maximize business value?

3 answers

0
EL
Answered on 18-10-2024

To move beyond simple voting and prioritize objectively for maximum ROI, a Product Owner should utilize these three techniques: 1. Weighted Shortest Job First (WSJF): This technique prioritizes items with the highest value that can be completed quickly. It is calculated as: $WSJF = \text{Cost of Delay} / \text{Job Size}$. This ensures that low-effort, high-impact items move to the top, maximizing the flow of business value. 2. Kano Model: This technique helps prioritize requirements based on how much they satisfy the customer. It classifies features into: Basic (must-have), Performance (more is better), and Delight (unexpected bonus). This ensures you're building foundational features before surprise features. 3. MoSCoW Method: This method is excellent for managing scope expectations with stakeholders by classifying requirements into Must-Have, Should-Have, Could-Have, and Won't-Have this time. This is particularly useful for fixed-time releases, helping the Product Owner make clear trade-offs and manage stakeholder demands against available capacity. 

0
JA
Answered on 05-11-2024

That breakdown of WSJF is very helpful for quantifying ROI! I'm curious about the Kano Model. If a Product Owner has to choose between fixing a known, annoying Basic feature bug (like broken login) and developing a brand new Delight feature (that could bring in new customers), which does the Kano Model suggest should take priority, and why? 

LA 20-11-2024

Jason, the Kano Model strongly suggests fixing the Basic feature bug first (the broken login). Basic features are "must-haves"—if they are broken, they cause high dissatisfaction. Customers don't thank you for a working login, but they will leave if it's broken. Delight features only work well when the Basic and Performance foundations are solid. A good Product Owner knows that fixing a mandatory pain point is always the priority for retaining the current customer base and protecting the brand's integrity, even if the "Delight" feature promises higher short-term acquisition.

0
OL
Answered on 03-12-2024

To maximize ROI, the Product Owner must use WSJF to prioritize high-value, low-effort items. The Kano Model is key for understanding customer satisfaction (Basic features first!), and MoSCoW helps manage stakeholder expectations and scope trade-offs in the Product Backlog

EL 15-12-2024

I agree, Olivia. Ultimately, the Product Owner must maintain a deep understanding of customer needs and business value. These techniques are just tools to help formalize and communicate that value judgment to the development team and stakeholders.

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