Agile Prioritization Techniques: A Guide To Maximizing Business Value

Prioritizing work is essential for agile teams to deliver the maximum business value.

This guide covers 5 key techniques for prioritizing product backlogs along with their features, benefits, and real-world examples.

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Definitions

Prioritization – Ordering items such as stories and features based on importance and business value.

Product Backlog – The ranked list of work items for the product.

Background on Prioritization Techniques

Common agile prioritization methodologies and techniques include:

  • MoSCoW Method – Categorizes items as Must Have, Should Have, Could Have, and Won’t Have.
  • Kano Model – Categorizes items based on customer satisfaction as Basic Needs, Performance Needs, or Excitement Needs.
  • Weighted Shortest Job First – Scores items based on weighted business value and development effort.
  • Value vs Complexity – Plots items on a graph based on value and complexity.
  • Relative Prioritization – Ranks items relative to each other.

MoSCoW Method

The MoSCoW method has team members categorize each backlog item into one of four priority groups:

Must Have – Critical requirements.

Should Have – Important but not critical requirements.

Could Have – Desirable but not necessary requirements.

Won’t Have – Lowest priority requirements.

Features

  • Simple framework.
  • Focuses on business value.
  • Easy to update priorities.

Benefits

  • Logical grouping of requirements.
  • Critical features done first.
  • Easy to communicate.
  • Facilitates discussion.

Kano Model

The Kano model categorizes items based on customer satisfaction and effective prioritization:

Basic Needs – Must be fulfilled, but do not increase satisfaction.

Performance Needs – Increase satisfaction as performance improves.

Excitement Needs – Provide the most satisfaction, but are unexpected.

Features

  • Captures emotional response.
  • Identifies excitement factors.

Benefits

  • Quantifies subjective priorities.
  • Balances needs and excitement.
  • Optimizes satisfaction.

Weighted Shortest Job First

In this quantitative technique, items are scored based on:

Business Value – Importance to customers.

Development Effort – Required work effort.

Higher priority scores indicate both high value and low effort.

Features

  • Numerical scoring.
  • Considers value and effort.

Benefits

  • Data-driven decisions.
  • Optimizes ROI.
  • Easy to re-calculate.

Value vs Complexity

Items are plotted on a graph based on:

  • Value – Business benefit.
  • Complexity – Level of effort required.

Higher priority items have high value and low complexity.

Features

  • Visual representation.
  • Shows value vs effort.

Benefits

  • Fast to create.
  • Easy to update.
  • Intuitive visualization.

Relative Prioritization

The team simply ranks all items relative to each other based on benefit.

Features

  • Lightweight.
  • Purely relative ranking.

Benefits

  • Speedy prioritization.
  • No overhead.
  • Good for small teams.

Importance of Prioritization

  • Focus resources on valuable features.
  • Increase customer satisfaction.
  • Enable continuous delivery.
  • Reduce risk.
  • Optimize ROI on development.

Steps for Prioritization

  1. Gather requirements.
  2. Estimate effort.
  3. Apply prioritization technique.
  4. Rank backlog.
  5. Review priorities frequently.
  6. Re-prioritize as needed.

Best Practices

  • Involve key stakeholders – Include product owners, customers.
  • Use data to estimate – Leverage metrics, research.
  • Revisit priorities often – At least each iteration.
  • Combine techniques – Use multiple techniques.
  • Automate where possible – Use tools and training to save time.
  • Don’t over-engineer – Keep it simple.
  • Communicate priorities – Visualize on boards.
  • Consider dependencies – Schedule accordingly.
  • Prioritize continuously – Not just at start.

Examples

MoSCoW – Tagging user stories in JIRA with priority labels.

Kano Model – Survey users to classify features.

Weighted Shortest Job First – Calculating story points and ROI.

Value vs Complexity – Positioning stories on graph.

Relative Prioritization – Planning poker voting.

Conclusion

Leveraging agile prioritization techniques allows teams to deliver the most valuable features early and often.

This guide covered 5 key techniques along with their unique features, benefits, and real-world applications.

Prioritizing continuously based on value ensures customer satisfaction, faster time-to-market, and reduced risk.

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