Quantitative Techniques

100 Dollar Test

The 100 Dollar Test, also known as the $100 Method or Cumulative Voting, is a prioritization technique used in project management and product development to identify the most valuable features or tasks from a set. Participants are given a hypothetical $100 and asked to distribute this money among various options based on their perceived value.

Particularly useful in environments where stakeholder input is crucial for decision-making, such as product feature prioritization in software development.

IMPLEMENTATION

List Options: Identify and list all features, tasks, or decisions that need prioritization.
Provide Budget to Participants: Give each participant a set budget of $100 in virtual currency.
Allocate Funds: Participants allocate their $100 among the options to reflect their preferences for importance or value.
Aggregate Results: Sum up the total money allocated to each option across all participants.
Rank Options: Rank the options based on the total amount of money each received, identifying the top priorities.

PROS

Engages Stakeholders: Involves various stakeholders in the decision-making process, enhancing buy-in and understanding.
Highlights Value Perceptions: Clearly shows what participants value most, providing insight into stakeholder priorities.
Simple and Interactive: Easy to understand and participate in, making it an engaging way to gather insights.

CONS

Potential Bias: Can be influenced by the opinions of dominant participants if not managed correctly.
Limited by Participant Knowledge: Effectiveness depends on participants’ understanding of the options’ impacts and implications.
May Favor Popular Features: Might result in popular features getting disproportionately high funding, overlooking niche but important features.

EFFORT

Low, Medium

The process is straightforward, but organizing and conducting the session takes some planning.

CONFIDENCE

Moderate

Provides good insight into stakeholder values but should be supplemented with other data or methods for critical decisions.

ADAPTABILITY

High

Can be used in various contexts and easily adjusted for different numbers of options or participants.

TIME CONSTRAINTS

Flexible

Well-suited for situations with flexible time constraints, allowing for thoughtful discussion and decision-making.

TIPS

Ensure Broad Representation: Include a diverse group of stakeholders to get a well-rounded view of priorities.
Provide Sufficient Information: Ensure all participants have enough information about each option to make informed decisions.
Analyze Results Thoughtfully: Look beyond just the highest-funded options to understand why certain choices were made.

DESIRED OUTCOME

The main outcome of the 100 Dollar Test is a prioritized list of features or tasks that reflects the collective value judgment of a diverse group of stakeholders, helping guide development efforts and resource allocation effectively.

Stay tuned for an upcoming template.