Business-Driven Prioritization
Business Value Points
Business Value Points (BVP) is a prioritization technique that assigns a numerical value to project tasks or features based on their anticipated business impact. This method quantifies the importance of each item in terms of its potential to contribute to key business objectives like revenue growth, cost reduction, or market competitiveness.
Suitable for any project type, particularly effective in environments where business impact is a critical driver. Ideal for medium to large projects focused on strategic business outcomes.
IMPLEMENTATION
Define Business Objectives: Clearly outline the key business goals that the project should support.
List Features/Tasks: Compile all the features, enhancements, or tasks that need prioritization.
Assign Value Points: Evaluate and assign points to each task based on its potential impact on the business objectives. Higher points reflect greater business value.
Weight Adjustments: Apply weightings if certain business objectives are more critical than others.
Rank by Points: Prioritize tasks based on their total value points, focusing first on those with the highest scores.
PROS
Alignment with Business Goals: Directly ties project tasks to strategic business outcomes.
Quantitative Approach: Facilitates objective decision-making by using a numerical system.
Flexible and Customizable: Can be adapted to various business contexts and objectives.
CONS
Subjectivity in Scoring: Determining the value points can be subjective and vary between stakeholders.
Potential Overemphasis on Quantifiable Benefits: May neglect qualitative benefits like customer satisfaction or employee engagement.
Dependency on Accurate Business Objective Definition: Effectiveness depends heavily on the clarity and relevance of defined business objectives.
EFFORT
Medium
Requires a thoughtful assessment of each task's impact on business goals but is generally less complex than techniques requiring market or financial analysis.
CONFIDENCE
Moderate
While providing a clear prioritization framework, the confidence level depends on the accuracy and consensus in assigning value points.
ADAPTABILITY
High
Easily updated to reflect shifts in business strategy or external conditions, making it very adaptable to changes.
TIME CONSTRAINTS
Flexible
Can be adapted to different timelines, allowing quick prioritization under tight deadlines or more detailed analysis when time allows.
TIPS
Stakeholder Involvement: Engage a broad range of stakeholders in defining business objectives and assigning value points to ensure comprehensive perspectives.
Regular Review and Adjustment: Periodically reassess the value points and priorities as business goals or market conditions change.
Combine with Other Techniques: Use alongside other prioritization methods like Risk Management or the Kano Model to balance business value with other considerations.
DESIRED OUTCOME
The desired outcome of using Business Value Points is to ensure that project tasks are prioritized according to their potential to deliver the greatest business value, thereby aligning project efforts with strategic business objectives and maximizing overall project impact.
Stay tuned for an upcoming template.