Trust us, if you’re seeking to refine your product management strategies, understanding the RICE Prioritization Model can significantly elevate your decision-making process.
RICE is a prioritization model aimed at assisting product managers in making informed choices regarding project initiation. It uses four key variables—Reach, Impact, Confidence, and Effort—to score and compare various project options.
There’s more nuanced information to dig into, so let’s keep going.
Table of Contents
The Genesis of the RICE Model
Intercom, a leader in messaging software, is the architect behind the RICE Prioritization Model. Despite being well-versed in multiple prioritization techniques, Intercom’s product team found a dearth of methods that suitably addressed their unique requirements. Hence, they crafted RICE, a model based on four critical factors and a specific formula that could objectively evaluate a multitude of project ideas.
The Four Pillars of RICE Prioritization
Reach
“Reach” is about gauging how many people your initiative will engage within a predetermined period. It is not a one-size-fits-all metric; you must define what “reach” entails for your project, be it in customer transactions, free-trial signups, or user engagement. For example, if a project aims to secure 150 new customers within a quarter, the reach score is 150.
Impact
The “Impact” factor addresses either quantitative goals like new conversions or qualitative goals such as enhanced user satisfaction. Intercom employs a five-tiered system to rate a project’s impact: from “massive” to “minimal,” assigning numerical values ranging from 3 to 0.25.
Confidence
Confidence compensates for projects where one metric is data-supported while another may rely on intuition or anecdotal evidence. The rating system for “Confidence” is tiered as well, with options like 100%, 80%, or 50%. Anything below 50% is deemed a ‘moonshot,’ suggesting that perhaps priorities should lie elsewhere.
Effort
All the previous factors serve as the numerator in the RICE equation, while “Effort” serves as the denominator. It quantifies the total resources needed to execute an initiative over a specific time, generally measured in “person-months.”
Start Streamlining Your Roadmap
The RICE model is not just a scoring method but an invaluable asset for any product team. It enables you to consistently and objectively evaluate different project ideas, making your roadmap more data-driven and less susceptible to biases.
Calculating Your RICE Priority Score
To determine your RICE score, you’ll need to multiply the values for Reach, Impact, and Confidence together. Then, divide that product by your Effort score. This final number serves as an actionable metric for comparing and ranking various initiatives on your roadmap.
Comparing RICE Prioritization and WSJF Methodologies
Both RICE and Weighted Shortest Job First (WSJF) serve as robust frameworks for decision-making in product management. While WSJF centers on the time-sensitive cost of delay and intrinsic value of tasks, RICE leans into gauging potential impact and the confidence level of the team in achieving said impact.
In Summary
The RICE scoring model offers product managers a systematic way to prioritize projects with an empirical approach, providing an invaluable framework that could serve your organization well. For further insights, check out our webinar on prioritization methods