The value/effort matrix is a feature prioritization model used to build effective product roadmaps. The value/effort matrix allows product managers to prioritize their product backlog using a confident, structured approach. The product team learns how to plan an effective roadmap, identify boundaries of work, and differentiate between needs and wants.
Task/Activity
Description
Analysis
Implications
Examples
High Value, Low Effort
Tasks with significant value and minimal effort needed.
These tasks offer high ROI with little resource investment.
Prioritize and complete these tasks quickly to maximize benefits.
Implementing quick process improvements, optimizing email marketing campaigns.
High Value, High Effort
Tasks with significant value but requiring substantial effort.
These tasks offer high ROI but require careful planning and resources.
Allocate resources wisely, plan meticulously, and monitor progress closely.
Launching a new product, conducting a comprehensive market research study.
Low Value, Low Effort
Tasks with limited value and minimal effort needed.
These tasks have low impact, but they don’t consume significant resources.
Consider completing these tasks if they align with other priorities.
Tasks with limited value and requiring significant effort.
These tasks offer minimal returns and may not be worth the effort.
Carefully evaluate whether these tasks are worth pursuing.
Engaging in lengthy administrative processes for minor benefits.
Table of Contents
Understanding the value/effort matrix
Prioritization is a vital component of product management and the product development lifecycle.
However, many product managers tend to prioritize minor customer complaints or some shiny new idea they thought of yesterday. Many managers are also ill-equipped to make important decisions – whether through a lack of experience or access to appropriate tools or processes. As a result, the product backlog can quickly become a recess for hundreds of unnecessary features or bugs.
Ultimately, effective prioritization means striking a balance between delivering value and the resources available.
The next section will detail how this balance might be achieved.
Effort on the x-axis, defined as the resources needed to complete a task. That is, how difficult will the task be to complete?
Value on the y-axis, defined as the business or product value a feature will bring. Value can be defined in several ways. How will the feature help gain new customers? How many customers will the feature impact? How does the feature help the business make money? Does the feature increase product virality?
For both value and effort, the team should create a scoring system and rank each feature accordingly. A sample scoring system is provided below:
The team can then plot each feature on the matrix according to its value and effort score, landing in one of four quadrants:
Time sinks (low value/high effort) – or tasks that should be left until last or abandoned altogether.
Fill-ins (low value/low effort) – this describes features that can be completed during periods of low activity between other project tasks.
Quick wins (high value/low effort) – these tasks should be prioritized to build momentum and boost team morale.
Big projects (high value/high effort) – or valuable features that are complex and resource-intensive. These often long-term projects must be backed by detailed plans.
Lastly, the value/effort matrix must be revisited periodically. Information derived from customer feedback, analytics, and A/B testing should be fed back into the matrix to reassess each feature.
Key takeaways:
The value/effort matrix is a feature prioritization model used in product development.
The value/effort matrix helps product managers make structured and confident feature prioritization decisions. This ensures the product backlog does not become overwhelmed with low-value initiatives.
The value/effort matrix evaluates features on a matrix consisting of four quadrants: time sinks, fill-ins, quick wins, and big projects. The evaluation process should be repeated periodically as new insights come to hand.
Key Highlights:
Value/Effort Matrix Concept: The value/effort matrix is a tool used for prioritizing features in product development. It helps product managers make informed decisions about what features to prioritize on their product roadmap.
Balancing Value and Effort: Effective prioritization involves balancing the value a feature brings to the product or business with the effort required to implement it. Striking this balance ensures that resources are allocated efficiently.
Matrix Structure:
The matrix is a 2×2 grid with “Effort” on the x-axis and “Value” on the y-axis.
“Effort” represents the level of resources needed to complete a task, while “Value” indicates the business or product value the feature will provide.
Scoring System:
A scoring system is established for both “Value” and “Effort,” typically on a scale of 1 to 20.
Each feature is assigned a score for value and effort based on the defined scoring system.
Quadrants:
Based on their value and effort scores, features are plotted into four quadrants on the matrix:
Time Sinks (low value/high effort): Tasks that should be left for later or abandoned.
Fill-ins (low value/low effort): Features that can be completed during periods of low activity.
Quick Wins (high value/low effort): Prioritized to build momentum and enhance morale.
Big Projects (high value/high effort): Valuable but complex and resource-intensive, requiring detailed planning.
Iterative Process:
The matrix is a dynamic tool that should be revisited periodically.
Customer feedback, analytics, and A/B testing data should be incorporated into the matrix to reassess the value and effort of each feature.
Benefits:
The value/effort matrix provides a structured approach to prioritizing features.
It prevents the product backlog from being cluttered with low-value initiatives.
It guides product managers in making informed decisions, optimizing resource allocation.
Key Takeaways:
The value/effort matrix balances the value of a feature with the effort required to implement it.
Features are categorized into quadrants based on value and effort scores: time sinks, fill-ins, quick wins, and big projects.
Regular updates to the matrix based on new insights ensure ongoing effective prioritization.
The SFA matrix is a framework that helps businesses evaluate strategic options. Gerry Johnson and Kevan Scholes created the SFA matrix to help businesses evaluate their strategic options before committing. Evaluation of strategic opportunities is performed by considering three criteria that make up the SFA acronym: suitability, feasibility, and acceptability.
The Hoshin Kanri X-Matrix is a strategy deployment tool that helps businesses achieve goals over the short and long term. Hoshin Kanri is a method that seeks to bridge the gap between strategy and execution. Strategic objectives are clearly defined and the goals of every level of the organization are aligned. With everyone moving in the same direction, process coordination and decision-making ability are strengthened.
The Kepner-Tregoe matrix was created by management consultants Charles H. Kepner and Benjamin B. Tregoe in the 1960s, developed to help businesses navigate the decisions they make daily, the Kepner-Tregoe matrix is a root cause analysis used in organizational decision making.
The Eisenhower Matrix is a tool that helps businesses prioritize tasks based on their urgency and importance, named after Dwight D. Eisenhower, President of the United States from 1953 to 1961, the matrix helps businesses and individuals differentiate between the urgent and important to prevent urgent things (seemingly useful in the short-term) cannibalize important things (critical for long-term success).
An action priority matrix is a productivity tool that helps businesses prioritize certain tasks and objectives over others. The matrix itself is represented by four quadrants on a typical cartesian graph. These quadrants are plotted against the effort required to complete a task (x-axis) and the impact (benefit) that each task brings once completed (y-axis). This matrix helps assess what projects need to be undertaken and the potential impact for each.
The TOWS Matrix is an acronym for Threats, Opportunities, Weaknesses, and Strengths. The matrix is a variation on the SWOT Analysis, and it seeks to address criticisms of the SWOT Analysis regarding its inability to show relationships between the various categories.
The GE McKinsey Matrix was developed in the 1970s after General Electric asked its consultant McKinsey to develop a portfolio management model. This matrix is a strategy tool that provides guidance on how a corporation should prioritize its investments among its business units, leading to three possible scenarios: invest, protect, harvest, and divest.
In the 1970s, Bruce D. Henderson, founder of the Boston Consulting Group, came up with The Product Portfolio (aka BCG Matrix, or Growth-share Matrix), which would look at a successful business product portfolio based on potential growth and market shares. It divided products into four main categories: cash cows, pets (dogs), question marks, and stars.
In the FourWeekMBA growth matrix, you can apply growth for existing customers by tackling the same problems (gain mode). Or by tackling existing problems, for new customers (expand mode). Or by tackling new problems for existing customers (extend mode). Or perhaps by tackling whole new problems for new customers (reinvent mode).
You can use the Ansoff Matrix as a strategic framework to understand what growthstrategy is more suited based on the market context. Developed by mathematician and business manager Igor Ansoff, it assumes a growthstrategy can be derived by whether the market is new or existing, and the product is new or existing.
The Kraljic matrix is a framework that analyzes and classifies a company’s supplier base.
Kraljic’s matrix is used by purchasers to maximize supply security/minimize supply risk and reduce costs. In so doing, it encourages them to see procurement as a strategic activity and not one that is simply transactional.
The Kraljic matrix is divided into four quadrants based on varying degrees of supply risk and profit impact. Each quadrant defines a type of supply item and a strategy that reduces risk and cost. The quadrants encompass leverage items, bottleneck items, non-critical items, and strategic items.
The product-process matrix was introduced in two articles published in the Harvard Business Review in 1979. Developed by Robert H. Hayes and Steven C. Wheelwright, the matrix assesses the relationship between The stages of the product life cycle (from ideation to growth or decline) and The stages of the process (technological) life cycle.
The Mendelow stakeholder matrix is a framework used to analyze stakeholder attitudes and expectations and their potential impact on business decisions.
A requirements traceability matrix (RTM) is a vital part of the lifecycle of any embedded system, helping organizations ensure their products are safe and meet intended standards. While the matrix has long been associated with medicine, technology, and engineering, the approach works well for any project regardless of industry. A requirements traceability matrix is a tool used to identify and maintain the status of project requirements and deliverables.
The value/effort matrix is a feature prioritization model used to build effective product roadmaps. The value/effort matrix allows product managers to prioritize their product backlog using a confident, structured approach. The product team learns how to plan an effective roadmap, identify boundaries of work, and differentiate between needs and wants.
A decision matrix is a decision-making tool that evaluates and prioritizes a list of options. Decision matrices are useful when: A list of options must be trimmed to a single choice. A decision must be made based on several criteria. A list of criteria has been made manageable through the process of elimination.
The grand strategy matrix was created by American business theorist Paul Joseph DiMaggio in 1980. The matrix, which first appeared in the Strategic Management Journal, was initially used as a strategic option tool for managers. The grand strategy matrix helps organizations develop feasible alternative strategies based on their competitive position and the growth of their industry.
A Blockchain Business Model according to the FourWeekMBA framework is made of four main components: Value Model (Core Philosophy, Core Values and Value Propositions for the key stakeholders), Blockchain Model (Protocol Rules, Network Shape and Applications Layer/Ecosystem), Distribution Model (the key channels amplifying the protocol and its communities), and the Economic Model (the dynamics/incentives through which protocol players make money). Those elements coming together can serve as the basis to build and analyze a solid Blockchain Business Model.
In an asymmetric business model, the organization doesn’t monetize the user directly, but it leverages the data users provide coupled with technology, thus have a key customer pay to sustain the core asset. For example, Google makes money by leveraging users’ data, combined with its algorithms sold to advertisers for visibility.
In a business world driven by technology and digitalization, competition is much more fluid, as innovation becomes a bottom-up approach that can come from anywhere. Thus, making it much harder to define the boundaries of existing markets. Therefore, a proper business competition analysis looks at customer, technology, distribution, and financial model overlaps. While at the same time looking at future potential intersections among industries that in the short-term seem unrelated.
Technological modeling is a discipline to provide the basis for companies to sustain innovation, thus developing incremental products. While also looking at breakthrough innovative products that can pave the way for long-term success. In a sort of Barbell Strategy, technological modeling suggests having a two-sided approach, on the one hand, to keep sustaining continuous innovation as a core part of the business model. On the other hand, it places bets on future developments that have the potential to break through and take a leap forward.
A transitional business model is used by companies to enter a market (usually a niche) to gain initial traction and prove the idea is sound. The transitional business model helps the company secure the needed capital while having a reality check. It helps shape the long-term vision and a scalable business model.
The minimum viable audience (MVA) represents the smallest possible audience that can sustain your business as you get it started from a microniche (the smallest subset of a market). The main aspect of the MVA is to zoom into existing markets to find those people which needs are unmet by existing players.
Business scaling is the process of transformation of a business as the product is validated by wider and wider market segments. Business scaling is about creating traction for a product that fits a small market segment. As the product is validated it becomes critical to build a viable business model. And as the product is offered at wider and wider market segments, it’s important to align product, business model, and organizational design, to enable wider and wider scale.
The market expansion consists in providing a product or service to a broader portion of an existing market or perhaps expanding that market. Or yet, market expansions can be about creating a whole new market. At each step, as a result, a company scales together with the market covered.
In the FourWeekMBA growth matrix, you can apply growth for existing customers by tackling the same problems (gain mode). Or by tackling existing problems, for new customers (expand mode). Or by tackling new problems for existing customers (extend mode). Or perhaps by tackling whole new problems for new customers (reinvent mode).
In the FourWeekMBA Revenue Streams Matrix, revenue streams are classified according to the kind of interactions the business has with its key customers. The first dimension is the “Frequency” of interaction with the key customer. As the second dimension, there is the “Ownership” of the interaction with the key customer.
Revenue model patterns are a way for companies to monetize their business models. A revenue model pattern is a crucial building block of a business model because it informs how the company will generate short-term financial resources to invest back into the business. Thus, the way a company makes money will also influence its overall business model.
A pricing strategy or model helps companies find the pricing formula in fit with their business models. Thus aligning the customer needs with the product type while trying to enable profitability for the company. A good pricing strategy aligns the customer with the company’s long term financial sustainability to build a solid business model.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
