The RICE scoring model helps product managers evaluate product ideas, features and initiatives.

It is a simplified version of a cost-benefit analysis and provides consistency and objectivity.

Reach, Impact, Confidence and Effort are the four factors it considers.

A final score is determined for each product idea, which then helps with prioritization.

Here are the steps for using a RICE scoring model:

➡️ Reach – How many users will the initiative impact in a given timeframe?

For example, 1500 people will visit a website in the first 30 days.

➡️ Impact – How much will the users be impacted during the given timeframe?

Massive impact = 3, High impact = 2, Medium impact = 1, Low impact = .5, Minimal impact = .25

➡️ Confidence – How confident are you in your estimates for Reach and Impact?

High confidence = 100%, Medium confidence = 80% and Low confidence = 50%

➡️ Effort – How many people will it take to complete this initiative? How long will it take them?

For example, costs can be determined if it will take four people seven months to complete the initiative.

The overall RICE score is determined by multiplying the benefits and then dividing the costs:

➡️ (Reach X Impact X Confidence) / Effort = RICE Score

Have you used the RICE scoring model? How was it useful?

How do product managers prioritize?

One way is to use a weighted scoring model.

It helps to rank features or initiatives based on an overall score.

This ranking can then be used for feature prioritization on a product roadmap.

Here are the steps for using a weighted scoring model:

➡️ List the features – Which features are you considering for your product roadmap?

➡️ Define the key criteria – Which criteria are important to weigh the options?

➡️ Assign the weight for each criteria – Set the percentage for the criteria, based on importance.

➡️ Assign a value for each feature – Set a value between 0 and 5 for each feature

➡️ Determine the score – Multiply the assigned weighted score by the number assigned to the criteria.

➡️ Prioritize the features – Make the priority list based on the ranked total score

Features with a high score are prioritized for the roadmap and those with the lowest score are moved to the backlog.

Have you used the weighted scoring model? How was it useful?

Are you designing or rethinking your business model?

Industries and old models are facing disruption these days.

New industries and innovative business models are emerging.

How do you create a sustainable business model in this competitive landscape?

The Business Model Canvas may be helpful.

It was introduced in the book Business Model Generation by Alexander Osterwalder and Yves Pigneur.

I keep this book handy on my bookshelf, because I like all things visual, actionable, simplified and that can be distilled into a 1-pager.

The Business Model Canvas may be helpful if you’re doing the following:

👉🏾 Introducing a new product

👉🏾 Creating a new business model

👉🏾 Redesigning an old business model

👉🏾 Building an enterprise for the future

👉🏾 Undergoing digital transformation

Have you used the business model canvas? How was it useful? Let me know in the comments.