RICE Prioritization Framework | Product Management

Summary

This video introduces the RICE scoring model, a prioritization framework designed for product managers to effectively decide which product features or initiatives to focus on. The model evaluates four key factors: Reach (how many people a feature affects), Impact (the potential effect on metrics like revenue or user experience), Confidence (how sure you are about your estimates), and Effort (resources and time needed to implement). By scoring these factors, product managers can create logical, data-driven roadmaps. The framework was developed by Intercom's product team to streamline decision-making and avoid unnecessary back-and-forth.

Takeaways

• 📊 The RICE scoring model is a prioritization framework for product managers to help decide which features or initiatives to include in a product roadmap.
• 🚀 RICE stands for Reach, Impact, Confidence, and Effort, each playing a crucial role in determining the priority of a product feature.
• 🧠 Reach measures how many people a feature or initiative will affect within a specific timeframe (e.g., 3-month or 6-month roadmap).
• 💥 Impact assesses the effect of a feature on metrics like user acquisition, revenue, or user experience. It uses a 5-tier scale: 3 (massive impact) to 0.25 (minimal impact).
• 🤔 Confidence reflects the certainty in the estimated reach and impact, rated as 100% (high), 80% (medium), or 50% (low) based on benchmarks or gut feelings.
• 🛠️ Effort measures the time and resources required to implement a feature, typically quantified in months and the number of resources involved.
• ⚖️ To determine the RICE score, multiply Reach, Impact, and Confidence, then divide by Effort to get a final score that helps prioritize features.
• 🗂️ This framework helps create a logical, data-driven product roadmap, balancing high-potential features with feasible development efforts.
• 💡 The RICE model was developed by Intercom’s product team to streamline internal decision-making and reduce back-and-forth discussions.
• 📅 It is flexible and can be adapted for different timeframes like monthly or quarterly planning, making it a valuable tool for consistent product management.

Q & A

What is the purpose of the RICE prioritization framework?

The RICE prioritization framework helps product managers prioritize product features and initiatives by scoring them on four parameters: Reach, Impact, Confidence, and Effort. It assists in deciding which features to include in a product roadmap.

Who developed the RICE prioritization framework, and why?

The RICE framework was developed by Intercom's product team to streamline their internal decision-making process. It was created because their team lacked a proper framework for prioritization, leading to inefficiencies and back-and-forth discussions.

What does 'Reach' represent in the RICE framework?

Reach refers to the number of people or users who are expected to use a product feature or initiative within a specified time frame, such as a three-month or six-month roadmap. It measures the estimated user base that will be impacted by the feature.

How is 'Impact' calculated in the RICE framework?

Impact measures the potential effect of the feature on goals like user acquisition, revenue, conversion, or product experience. It uses a five-tier scoring system: 3 (massive impact), 2 (high impact), 1 (medium impact), 0.5 (low impact), and 0.25 (minimal impact).

What role does 'Confidence' play in the framework?

Confidence measures how certain you are that the estimates for Reach and Impact are accurate. Confidence can be gut-based or supported by comparable benchmarks. The scoring system is 100% for high confidence, 80% for medium, and 50% for low confidence.

How is 'Effort' measured in the RICE framework?

Effort measures the amount of time and resources needed to build a product feature or initiative. It estimates the number of months required for a team to deliver the feature, with lower effort scores representing quicker projects.

How do you calculate the final RICE score for a feature?

The final RICE score is calculated by multiplying Reach, Impact, and Confidence together, then dividing the result by the Effort. This score helps determine the priority of the feature or initiative.

What is an example of calculating Reach in the RICE framework?

For example, if a product is expected to have 4 users per day, then over a 30-day period (one month), the Reach would be 120 users. If only 20 users from 1,000 sign up, the Reach would be 20.

How does Intercom's five-tier system improve prioritization?

Intercom's five-tier system quantifies the impact of each feature, making prioritization more objective and structured. By assigning numerical values to each feature’s potential impact, it provides a clearer comparison and helps focus on high-value features.

Why is the RICE framework considered easy to use?

The RICE framework is simple because it breaks down feature prioritization into clear, measurable categories (Reach, Impact, Confidence, and Effort). This structured approach helps product managers consistently prioritize initiatives across different roadmaps.