13/36 : Lean Prioritization Framework
13/36 : Lean Prioritization Framework
We determine our Destination by our priorities. - Keith K. Hilbig
Introducing Our First MVP: Future of Product Management Jobs with Us!
🎉 Looking for your dream job just got a whole lot easier! We're excited to announce the launch of our AI-powered job preference tool jobs.productmindset.io 🚀. Say goodbye to endless job searching and hello to personalized job recommendations tailored just for you 🙌 Try it now and take the first step toward your dream job! 💼
What is prioritization in product management?
Prioritization in product management is the disciplined process of evaluating the relative importance of work, ideas, and requests to eliminate wasteful practices and deliver customer value in the quickest possible way, given a variety of constraints.
The reality of building products is that you can never get everything done — priorities shift, resources are reallocated, funding is scarce. As product managers, it’s our job to make sure we’re working on the most important things first. We need to ruthlessly prioritize features before we run out of resources.
Why is prioritization in product management?
Product managers decide what to build next. But you do not do this important work in isolation. Plenty of voices weigh in — like sales and engineering teams, and company leaders. And customer feedback informs what to build next too. Strong opinions matter but should not overshadow product strategy.
Without a prioritization framework, you could spend all day sorting and resorting to features — potentially relying too much on subjectivity or failing to reach a consensus with stakeholders. Effective prioritization also provides transparency for the team and builds confidence in the planning process. Everyone wants to work on features that truly matter to customers and the business.
How does Lean Prioritization Matrix work?
The 2x2 prioritization matrix, or lean prioritization approach, is a tool that helps teams decide what to tackle next in their product backlog.
The method is a quick, efficient way for your team to focus on features most likely to be valuable to your customers versus the effort actually taken to deliver those features.
Any team applying lean start-up methodologies can also use this matrix to make decisions and figure out where to focus their efforts in relation to where the risk is, or where the most valuable opportunities are.
What is a 2x2 prioritization matrix?
This model is a priority matrix that can help product managers determine priorities, and is also suitable for anyone leading projects and initiatives who needs help deciding what their team should focus on. A 2x2 prioritization matrix typically has 4 segments representing varying levels of effort and value:
Big bets, aka “do it next”: product features or tasks that are valuable but difficult to implement
Quick wins, or “do it now”: product features or tasks that are valuable and easy to implement
Time sinks, aka “don’t do it”: product features or tasks that aren’t worth investing in right now
Maybes or “do if or when there’s time”: low-value tasks that can be returned to later on
The value parameter considers the business value of your product feature or idea. The effort parameter considers resources (like time, money, and people) that may be needed to finish the tasks outlined.
Wrong Prioritization Techniques
If you are using any of the following prioritization techniques, your organization has a serious problem, and the solution is not to prioritize better. The solution is to review the organizational structure and strategy and make sure the previous ten points are in place.
Here is the list of wrong prioritization techniques widely used still nowadays in many companies:
HIPPO (Highest Paid Person in the Office)
Intuition
Committee consensus
Analysts opinions
Requests from Support / Sales / Marketing / Management
Copy competitors
Cost (Story Points, …)
Improvisation
When to use the 2x2 prioritization matrix
Agile development teams can use the 2x2 prioritization matrix to decide which features, fixes, and upgrades to work on next. This framework can help you decide the least amount of features you need to launch an MVP or prioritize tasks for an upcoming sprint
Whether you’re a product manager or leading a new business initiative, it’s worth considering how each idea informs each of these elements:
Acquisition (gaining new customers)
Activation (when customers understand the value of the product or feature)
Reach (how many customers are impacted)
Revenue (the profitability of a product or feature)
Retention (returning, active customers)
Virality (influence or “stickiness” of the product or service)
Teams can also use the matrix to make business decisions such as:
New markets worth pursuing and prioritizing
Campaigns and messaging to invest in
Departments, functions, or capabilities worth building or expanding on next
Ideally, a 2x2 prioritization matrix helps your team create boundaries around what is realistic to tackle, and develop clarity and consensus around what’s most important for success, versus nice-to-have or unnecessary.
Create your own 2x2 prioritization matrix
Making your own 2x2 prioritization matrix is easy. Get started by selecting the 2x2 Prioritization Matrix Template, then take the following steps to make one of your own.
Define your business value. Ideally, tie the value of a product feature or initiative to how your organization drives value. Discuss with your team whether you’re looking at strategic, customer, or financial value. Edit the value parameter text as needed.
Define your risks. Risks usually come in the form of implementation (complexity, cost, or effort) and business-related (failure to adapt to change, compliance needs, or operational issues). Consider both. Discuss with your team which are more likely to impact plans. Edit the risks text as needed.
Edit your priority categories as needed You can also label the quadrants “Challenge,” “Implement,” “Reconsider,” and “Possible.” Brainstorm with your team about what action words best fit your product or initiative.
How to Use this Method
Sample Agenda & Prompts
Preparation: As a group, agree on 2 relevant prioritization criteria.
Examples: Impact vs. Likeliness, Value vs. Complexity, Risk vs. Ease of Mitigation
Create 2 perpendicular intersecting axes and label each axis with one of the chosen criteria.
Tip: Label the axes such that the top-right quadrant represents the most important/highest priority. This is a convention that will make it easier when using this practice repeatedly.
Start by selecting an option at random and place it near the center.
Choose another option and, as a group, position it relative to other options on the grid, vertically and horizontally.
Tip: Avoid placing any 2 options on the same row or column. Each option should be clearly placed in a unique horizontal and vertical position on each axis to avoid any ambiguity.
Repeat step 4 until every option is positioned on the grid. The highest priority options should be in the top-right quadrant.
Tip: If the options are weighted towards a particular half or quadrant, you can reposition the options so that roughly half are on either side of each axis. This will remove ambiguity and make it easier to make prioritization decisions.
Success/Expected Outcomes
You know you are done when your group has decided on an option (or options) to focus on.
If you’re finding this newsletter valuable, share it with a friend, and consider subscribing if you haven’t already.
🔥 Top three quotes from our Instagram page
Good marketing makes the company look smart. Great marketing makes the customer feel smart. - Joe Chernov
If people believe they share values with a company, they will stay loyal to the brand.
- Howard SchultzCustomer experience is not an expense, it's an investment. - Shep Hyken