Value-Based Prioritization in Agile

Core Concept

One of the core concepts in Agile project management is value-based prioritization.

What is Value-Based Prioritization?

Features in the product backlog are prioritized based on their value.

Assessing Value

• The value of a feature can be assessed based on the return on investment (ROI).
• It can also depend on risks and other dependencies.

Example

Consider a CRM system. One of the most valuable features could be:

• Automatic response to incoming leads.
• This ensures the lead (potential customer) gets a prompt response.
• Such a feature may be given high priority.

Who Prioritizes Features?

• This is not done by the Agile project manager or the team.
• The customers and the product owner are responsible for prioritization.
• They decide the order of importance of features.

How to Engage Customers?

To ensure customer involvement:

• Educate them on the importance of prioritization.
• Encourage collaboration and communication.

Exam Tip

If you encounter a question where:

• Customers don't think they should prioritize features.
• The Agile project manager is unsure about letting them do it.

Answer: Teach the customers why it's important and have them do it.

Agile Prioritization Techniques

• Simple Scheme
• Moscow Method
• Monopoly Money

These techniques help customers participate and feel valued in the process.

Conclusion

Agile emphasizes interaction, collaboration, and communication. Effective prioritization ensures customer needs are met efficiently.