Prioritization Techniques in Project Management

Posted in management by Christopher R. Wirz on Fri Mar 27 2015

Effective prioritization is essential for maximizing value delivery, managing constraints, and ensuring stakeholder satisfaction. Various prioritization techniques help project teams make informed decisions about which requirements, features, or work items to address first. These methods range from simple ranking to sophisticated models considering multiple factors.

Kano Model

The Kano Model categorizes features based on their relationship to customer satisfaction, helping teams understand which features create delight versus which are merely expected.

Five Feature Categories:

1. Basic (Must-Be) Requirements

  • Customers expect these as fundamental
  • Absence causes extreme dissatisfaction
  • Presence does not increase satisfaction (taken for granted)
  • Example: Hotel room has a bed, bathroom has running water
  • Strategy: Must include; table stakes for market entry

2. Performance (One-Dimensional) Requirements

  • Satisfaction increases linearly with performance
  • More is better; less causes dissatisfaction
  • Explicitly requested by customers
  • Example: Faster processing speed, longer battery life, better fuel economy
  • Strategy: Competitive differentiator; invest proportionally

3. Excitement (Delighter) Requirements

  • Customers do not expect these
  • Presence creates delight and high satisfaction
  • Absence does not cause dissatisfaction (unknown need)
  • Example: First smartphone touchscreen, unexpected free upgrade, innovative feature
  • Strategy: Creates competitive advantage and loyalty

4. Indifferent Requirements

  • Customers do not care either way
  • No impact on satisfaction whether present or absent
  • Example: Features users never notice or use
  • Strategy: Avoid investing; waste of resources

5. Reverse Requirements

  • Some customers want it, others are dissatisfied by it
  • Presence pleases some but annoys others
  • Example: Automatic software updates, highly technical advanced features
  • Strategy: Make optional or customizable

Kano Analysis Process:

  1. Identify potential features
  2. Create functional/dysfunctional question pairs for each feature
  3. Survey customers asking both questions
  4. Categorize responses using Kano evaluation table
  5. Analyze results and prioritize accordingly

Key Insight - Features Evolve:

  • Excitement features become Performance features over time
  • Performance features become Basic requirements
  • Yesterday's delighter is today's expectation
  • Example: Internet access in hotels (excitement → performance → basic)

Application:

  • Ensure all Basic requirements are met first
  • Balance Performance features for competitiveness
  • Include some Excitement features for differentiation
  • Eliminate or minimize Indifferent features
  • Consider making Reverse features optional

MoSCoW Method

MoSCoW is a simple, consensus-based prioritization technique that categorizes requirements into four priority levels.

Four Categories:

Must Have (M)

  • Critical to current delivery
  • Project fails without these
  • Non-negotiable requirements
  • Legal, safety, or core business requirements
  • Typical allocation: 60% of effort

Should Have (S)

  • Important but not vital
  • Painful to leave out but project succeeds without
  • Workarounds exist
  • Can be delivered in later release if necessary
  • Typical allocation: 20% of effort

Could Have (C)

  • Desirable but not necessary
  • Nice to have if time and resources permit
  • Minimal impact if excluded
  • First to be removed if constraints tighten
  • Typical allocation: 20% of effort

Won't Have (This Time) (W)

  • Explicitly excluded from current scope
  • May be considered for future releases
  • Manages expectations
  • Prevents scope creep
  • Documents what's out of scope

MoSCoW Process:

  1. List all requirements
  2. Collaborate with stakeholders to categorize
  3. Ensure no more than 60% are "Must Have"
  4. Document rationale for categories
  5. Revisit if constraints change

Benefits:

  • Simple and easy to understand
  • Facilitates stakeholder discussion
  • Makes trade-offs explicit
  • Flexible for changing priorities
  • Works well in Agile environments

Limitations:

  • Subjective without clear criteria
  • Tendency to mark everything "Must Have"
  • does not prioritize within categories
  • May oversimplify complex decisions

Cost of Delay

Cost of Delay quantifies the economic impact of delaying a feature or project, enabling value-based prioritization.

Formula: Cost of Delay = Value - Time Decay - Opportunity Cost

Key Concepts:

  • Peak Value: Maximum value feature can deliver
  • Decay Rate: How quickly value decreases over time
  • Urgency: Time sensitivity of the value

Cost of Delay Patterns:

1. Standard (Linear Decay)

  • Value decreases steadily over time
  • Most common pattern
  • Example: General feature improvements

2. Fixed Date

  • Full value until deadline, then zero
  • Sharp cliff
  • Example: Tax software before April 15, Olympic Games app

3. Intangible

  • Enables future value but little immediate value
  • Infrastructure, technical debt reduction
  • Example: Platform upgrades, architecture improvements

Weighted Shortest Job First (WSJF):

  • Formula: WSJF = Cost of Delay / Duration
  • Prioritizes high-value, short-duration items
  • Maximizes economic benefit
  • Used in SAFe (Scaled Agile Framework)

CD3 (Cost of Delay Divided by Duration):

  • Another term for WSJF
  • Ranks items by economic efficiency
  • Highest score gets priority

Application:

  • Calculate or estimate Cost of Delay for each item
  • Divide by implementation duration
  • Prioritize highest WSJF scores first
  • Regularly reassess as conditions change

Value vs. Effort/Complexity Matrix

2×2 Matrix plotting value against effort to guide prioritization decisions.

Four Quadrants:

1. Quick Wins (High Value, Low Effort)

  • Top priority
  • Maximum ROI
  • Implement immediately
  • Example: Simple bug fixes with big impact

2. Major Projects (High Value, High Effort)

  • Strategic initiatives
  • Schedule carefully
  • Significant resource commitment
  • Example: Core platform redesign

3. Fill-Ins (Low Value, Low Effort)

  • Do when resources available
  • Good for training or slack time
  • do not overinvest
  • Example: Minor UI tweaks

4. Time Wasters (Low Value, High Effort)

  • Avoid or eliminate
  • Question why these exist
  • Reconsider if truly necessary
  • Example: Over-engineered features nobody uses

Prioritization Strategy:

  1. Quick Wins first
  2. Major Projects scheduled strategically
  3. Fill-Ins during downtime
  4. Time Wasters eliminated or deferred indefinitely

Variations:

  • Value vs. Risk
  • Value vs. Cost
  • Impact vs. Effort
  • Benefit vs. Risk

Buy-a-Feature

Buy-a-Feature is a collaborative game where stakeholders "purchase" features with limited budgets, revealing true priorities.

Process:

  1. Assign realistic costs to features
  2. Give stakeholders limited budgets (e.g., $100)
  3. Allow individual or group purchasing
  4. Features cost more than individual budgets (forces collaboration)
  5. Tally purchases to see what's valued most

Benefits:

  • Makes trade-offs tangible and real
  • Forces difficult prioritization conversations
  • Reveals hidden priorities
  • Engages stakeholders actively
  • Creates consensus through game mechanics

Use Cases:

  • Multiple stakeholder groups
  • Contentious priorities
  • Need for transparent decision-making
  • Agile release planning

100-Point Method (Cumulative Voting)

Stakeholders distribute 100 points across features based on importance, revealing relative priorities.

Process:

  1. List all features/requirements
  2. Give each stakeholder 100 points
  3. Allow distribution across features (no limits per feature)
  4. Aggregate scores across stakeholders
  5. Prioritize by total points

Variations:

  • Dot Voting: Limited number of votes (dots/stickers) per person
  • Multi-Voting: Multiple rounds of voting to narrow options
  • Weighted Voting: Different stakeholder votes weighted by authority/expertise

Benefits:

  • Democratic and inclusive
  • Simple to execute
  • Visual and engaging
  • Forces trade-offs (limited points)

Challenges:

  • May not reflect true business value
  • Political dynamics can influence
  • does not account for effort/cost
  • Can be manipulated by vote coordination

Risk-Value Matrix

Combines business value with implementation risk to balance opportunity and threat.

Four Quadrants:

1. High Value, Low Risk

  • Best opportunities
  • Prioritize first
  • Quick, safe wins

2. High Value, High Risk

  • Evaluate carefully
  • May need risk mitigation
  • Potentially high reward

3. Low Value, Low Risk

  • Safe but limited benefit
  • Deprioritize or defer

4. Low Value, High Risk

  • Avoid entirely
  • Worst combination
  • Eliminate from consideration

Risk Factors:

  • Technical complexity
  • Dependencies
  • Uncertainty
  • Resource availability
  • Stakeholder alignment

RICE Scoring

RICE quantifies priority using four factors: Reach, Impact, Confidence, and Effort.

Formula: RICE Score = (Reach × Impact × Confidence) / Effort

Components:

Reach (Number of users affected)

  • Users per time period (e.g., per quarter)
  • Quantitative measure
  • Example: 1,000 users per month

Impact (Degree of effect per user)

  • Scale: 3 = Massive, 2 = High, 1 = Medium, 0.5 = Low, 0.25 = Minimal
  • Qualitative to quantitative
  • Example: 2 (High impact)

Confidence (Certainty level)

  • Percentage: 100% = High, 80% = Medium, 50% = Low
  • Addresses uncertainty
  • Example: 80% confident

Effort (Person-months required)

  • Total team time needed
  • Includes all roles
  • Example: 2 person-months

Calculation Example:

  • RICE = (1,000 × 2 × 80%) / 2 = 1,600 / 2 = 800

Higher scores = Higher priority

Benefits:

  • Comprehensive multi-factor analysis
  • Reduces bias through quantification
  • Accounts for uncertainty
  • Standardized comparison

Opportunity Scoring

Identifies gaps between importance and satisfaction to find biggest improvement opportunities.

Process:

  1. Survey customers on feature importance (1-10)
  2. Survey customers on current satisfaction (1-10)
  3. Calculate Opportunity Score = Importance + (Importance - Satisfaction)
  4. Prioritize highest opportunity scores

Interpretation:

  • High Importance, Low Satisfaction = Biggest opportunity
  • High Importance, High Satisfaction = Maintain
  • Low Importance, Low Satisfaction = Low priority
  • Low Importance, High Satisfaction = Over-served

Example:

  • Feature A: Importance = 9, Satisfaction = 4
  • Opportunity = 9 + (9 - 4) = 9 + 5 = 14 (High priority)

Story Mapping

Visual technique organizing user stories to show user journey and prioritize releases.

Structure:

  • Horizontal axis: User activities in sequence
  • Vertical axis: Priority (top = essential, bottom = nice-to-have)
  • Swim lanes: Release groupings

Process:

  1. Identify user activities/workflow
  2. Break activities into tasks
  3. Arrange tasks in workflow sequence
  4. Prioritize tasks vertically
  5. Draw lines for release slicing

Benefits:

  • Visualizes complete user experience
  • Ensures coverage of workflow
  • Facilitates release planning
  • Reveals dependencies
  • Engages whole team

Stack Ranking (Forced Ranking)

Orders all items in strict priority sequence with no ties allowed.

Process:

  1. List all items
  2. Compare pairs or groups
  3. Force rank order (1, 2, 3, etc.)
  4. No items can share same rank

Benefits:

  • Eliminates ambiguity
  • Forces difficult decisions
  • Clear sequence for execution

Drawbacks:

  • Time-consuming for large lists
  • May create artificial distinctions
  • does not show magnitude of differences
  • Can be contentious

Multi-Criteria Decision Analysis (MCDA)

Weighted scoring using multiple criteria to objectively evaluate options.

Process:

  1. Define evaluation criteria
  2. Assign weights to criteria (totaling 100%)
  3. Score each option against criteria (e.g., 1-5)
  4. Calculate: Total = Σ(Criterion Weight × Score)
  5. Rank by total score

Example Criteria:

  • Business value (30%)
  • Strategic alignment (25%)
  • Effort required (20%)
  • Risk level (15%)
  • Customer demand (10%)

Benefits:

  • Transparent and defendable
  • Considers multiple perspectives
  • Reduces subjectivity
  • Structured decision framework

Limitations:

  • Weight selection can be subjective
  • Requires effort to establish criteria
  • May create false precision

Comparative Prioritization Frameworks

Technique Complexity Best For Key Strength
MoSCoW Low Quick consensus Simplicity
Kano Medium Feature selection Customer satisfaction insight
WSJF/CoD Medium Economic value Financial optimization
Value/Effort Low Visual prioritization Clarity of trade-offs
RICE Medium Product features Comprehensive factors
Buy-a-Feature Medium Stakeholder engagement Collaboration
Multi-Criteria High Complex decisions Objectivity

Best Practices for Prioritization

General Principles:

  1. Involve stakeholders - Gain buy-in and diverse perspectives
  2. Use multiple methods - Validate with different approaches
  3. Document rationale - Explain why decisions were made
  4. Revisit regularly - Priorities change with new information
  5. Balance short and long-term - do not sacrifice strategy for tactics
  6. Consider dependencies - Technical and business constraints matter
  7. Account for capacity - do not over-commit resources
  8. Communicate transparently - Explain what's in/out and why

Common Pitfalls:

  • Making everything "Must Have" or "High Priority"
  • Ignoring technical debt and infrastructure
  • Prioritizing by who shouts loudest
  • Analysis paralysis (over-analyzing)
  • Not considering implementation risk
  • Failing to reassess as conditions change
  • Confusing effort with value

Combining Techniques:

  • Use Kano to categorize feature types
  • Apply MoSCoW within each Kano category
  • Calculate WSJF for "Must Have" items
  • Create Value/Effort matrix for "Should Have" items
  • Validate with stakeholder voting

Key Concepts

Prioritization - Process of ranking features, requirements, or work items by importance, value, or urgency to guide resource allocation.

Kano Model - Framework categorizing features based on their relationship to customer satisfaction (Basic, Performance, Excitement, Indifferent, Reverse).

Basic (Must-Be) Requirements - Expected features whose absence causes dissatisfaction but presence does not increase satisfaction; table stakes.

Performance Requirements - Features where satisfaction increases linearly with quality/quantity; competitive differentiators.

Excitement (Delighter) Requirements - Unexpected features that create delight when present but do not cause dissatisfaction when absent; innovation.

Indifferent Requirements - Features customers do not care about; waste of resources to implement.

Reverse Requirements - Features that please some customers but dissatisfy others; should be optional or customizable.

MoSCoW Method - Prioritization technique categorizing requirements as Must Have, Should Have, Could Have, or Won't Have.

Must Have - Critical requirements without which the project fails; non-negotiable for current delivery.

Should Have - Important requirements that are painful to exclude but project succeeds without them; have workarounds.

Could Have - Desirable requirements that improve experience but have minimal impact if excluded; nice to have.

Won't Have (This Time) - Requirements explicitly excluded from current scope but may be considered for future releases.

Cost of Delay (CoD) - Economic value lost by delaying a feature or project; quantifies urgency and opportunity cost.

Weighted Shortest Job First (WSJF) - Prioritization formula dividing Cost of Delay by duration to maximize economic benefit.

CD3 (Cost of Delay Divided by Duration) - Alternative term for WSJF; prioritizes by economic efficiency.

Value vs. Effort Matrix - 2×2 grid plotting business value against implementation effort to identify quick wins and time wasters.

Quick Wins - High-value, low-effort items offering maximum ROI; top priority in Value/Effort matrix.

Major Projects - High-value, high-effort strategic initiatives requiring careful planning and significant resources.

Fill-Ins - Low-value, low-effort items suitable for spare capacity or training exercises.

Time Wasters - Low-value, high-effort items that should be avoided or eliminated from consideration.

Buy-a-Feature - Collaborative prioritization game where stakeholders purchase features with limited budgets to reveal true priorities.

100-Point Method - Technique where stakeholders distribute 100 points across features based on importance; also called cumulative voting.

Dot Voting - Simple voting method using limited dots/stickers per person to indicate preferences visually.

Multi-Voting - Iterative voting process using multiple rounds to progressively narrow options.

Risk-Value Matrix - Prioritization tool combining business value with implementation risk to balance opportunity and threat.

RICE Scoring - Quantitative prioritization using Reach, Impact, Confidence, and Effort: (R × I × C) / E.

Reach - Number of users or customers affected by a feature within a time period; RICE component.

Impact - Degree of effect per user, typically scored on scale (3=Massive to 0.25=Minimal); RICE component.

Confidence - Level of certainty about estimates, expressed as percentage (100%=High to 50%=Low); RICE component.

Effort - Total person-time required to implement, measured in person-months or similar; RICE component.

Opportunity Scoring - Technique identifying gaps between feature importance and current satisfaction to find improvement opportunities.

Opportunity Score - Calculated as Importance + (Importance - Satisfaction); higher scores indicate bigger opportunities.

Story Mapping - Visual technique organizing user stories to show user journey and prioritize releases across workflow.

User Activity - High-level action or task users perform; horizontal axis in story mapping.

Release Slicing - Drawing horizontal lines across story map to group stories into releases by priority.

Stack Ranking - Forcing items into strict priority order with no ties allowed; also called forced ranking.

Multi-Criteria Decision Analysis (MCDA) - Weighted scoring using multiple criteria to objectively evaluate and prioritize options.

Criteria Weighting - Assigning relative importance to different evaluation factors, typically totaling 100%.

Weighted Score - Total calculated by multiplying each criterion score by its weight and summing results.

Trade-off - Balancing competing objectives or constraints; giving up one thing to gain another.

Scope Creep - Uncontrolled expansion of project scope without adjustments to time, cost, and resources.

Technical Debt - Implied cost of rework caused by choosing quick/easy solution now instead of better long-term approach.

Business Value - Worth of a feature or requirement to the organization in achieving strategic objectives.

Return on Investment (ROI) - Financial metric comparing benefit gained to cost incurred; (Benefit - Cost) / Cost.

Strategic Alignment - Degree to which initiatives support and advance organizational strategy and goals.

Stakeholder - Individual, group, or organization affected by or able to affect project decisions and outcomes.

Consensus - General agreement among stakeholders achieved through discussion and compromise.

Relative Priority - Importance of one item compared to others rather than absolute importance.

Absolute Priority - Intrinsic importance of an item independent of comparison to other items.

Backlog - Ordered list of work items (requirements, features, tasks) awaiting implementation.

Backlog Refinement - Ongoing process of reviewing, prioritizing, and adding detail to backlog items.

Product Owner - Role responsible for maximizing product value and managing/prioritizing product backlog (Scrum).

Sprint Planning - Event where team selects and commits to backlog items for upcoming sprint based on priority.

Release Planning - Determining which features will be included in upcoming product releases and when.

Roadmap - High-level visual summary showing planned features and timing across future releases.

Theme - Collection of related user stories or epics grouped by common objective or area.

Epic - Large user story that spans multiple sprints and typically breaks down into smaller stories.

Minimum Viable Product (MVP) - Smallest version delivering enough value to satisfy early customers and validate learning.

Feature Toggle - Technique allowing features to be turned on/off without code deployment; enables incremental release.

Progressive Disclosure - Design principle revealing features progressively based on user needs rather than all at once.

Pareto Principle (80/20 Rule) - Observation that roughly 80% of effects come from 20% of causes; focus on high-impact items.

Critical Few - Small number of items that deliver majority of value; focus of prioritization efforts.

Sunk Cost Fallacy - Irrational continuation of investment because of past investment rather than future value.

Opportunity Cost - Value of the next best alternative foregone when making a decision; what you give up.

Urgency - Time sensitivity of a requirement; how quickly value degrades if delayed.

Dependency - Relationship where one item relies on or is constrained by another item.

Blocker - Impediment preventing progress on a work item; must be resolved for advancement.

Enabler - Work item that does not directly deliver customer value but enables future value delivery (infrastructure, research).

Capacity - Amount of work a team can complete in a given time period; constraint on what can be prioritized.

Velocity - Measure of work completed per iteration; helps predict capacity for prioritization decisions.

Value Stream - Series of activities required to deliver value to customer from request through delivery.

Lean - Philosophy focused on maximizing value while minimizing waste; influences prioritization toward value.

Waste (Muda) - Activity that consumes resources but creates no value; target for elimination in Lean thinking.

Minimum Marketable Feature (MMF) - Smallest set of functionality that delivers value and can be marketed to customers.

Feature Set - Collection of related features that together deliver complete capability or value proposition.

Customer Journey - Complete experience a customer has with product across all touchpoints; informs feature prioritization.

Pain Point - Specific problem or frustration customers experience; high-priority items address major pain points.