In the previous article in this series, we explained the Product Value Creation Tracker to measure product development performance delivering the product strategy. In this article, the last one in the series, we walk through the Strategic Value Matrix.
Using the Product VCP to prioritise
There are dozens of prioritisation techniques. While I have my preferences, the aim isn't to change which one you use. The aim is to ensure strategic value is prioritised and ad hoc distractions are purposefully chosen with a clear understanding of the lost opportunity.
Whatever framework or method you use to prioritise, there is an estimate of value. It is not always called value; for example, in RICE (Reach Impact, Confidence, Effort), Impact equates to value. How value or impact is estimated is typically not standardised. This causes many problems, which we will resolve with the Strategic Value Matrix. This tool is a scorecard to change impact or value to strategic impact or strategic value. There is a more complicated version which includes weightings for each value indicator, but for now, we will stick with this version. The scores for each item being reviewed will then be input into your existing prioritisation method.
Using the Strategic Value Matrix
The matrix has a row for each item to be evaluated, referred to as strategic bets and columns for each value indicator from your Product VCP. For each strategic bet, evaluate the size of the impact or value for each value indicator. We prefer to score out of 5, with 0 being no value created and 5 being a very large value. If you are unsure what large looks like, consider the Product Value Creation Plan Tracker, which has targets for each value indicator.
When you have scored each indicator for one strategic bet, add them together and put the answer in the total box. This figure is the number you will plug into your prioritisation framework.
Hungry for more?
This is the last article in this series. To learn more, look out for regular blog posts and videos.
If you want help building your product value creation plan, you can subscribe to the 10-part guide, How to execute your product strategy. We will send you the articles and a download containing the templates used throughout the guide.
To accelerate building your Product VCP, check out our hands-on coaching program or our 1:1 product leader coaching.