Proper Product Backlog Prioritization by JM

Proper Product Backlog Prioritization
Presented by: Jesus Mendez

Why Product Backlog prioritization is so important?
Why Prioritize?
Prioritization considerations
Ways of prioritization
Prioritization Quantification Model
Prioritization Matrix example
Final Thoughts
Why Product Backlog prioritization is so important?
The success of any Agile project depends on the

ability to deliver the most valued items to the
business at the earliest. Thus, it is imperative that
the right requirement is chosen, one that will
deliver value to the customer as early as possible.
Product backlog prioritization

is one of the key success factors
for an Agile project
Why Prioritize?
Project A
Client $$$
Investment Project B
BANK
ROI
(Return of Investment)
Why Prioritize?
Client
Customer receiving ROI
BANK
How well items carrying the

most business values are
developed and released to the
customer
Customer
Why Prioritize?
Improve customer satisfaction
Reduce risks
Keep the product backlog delivery focused
Manage constraints
Create system architecture
Keep on schedule
Non functional and performance requirement

Customer Satisfaction Measure of Success

Understand the critical
Take in consideration it reaction about this feature:
- Favorable
success factors defined by the customer and
- Critical thus satisfy the customers critical needs firs
- Indifference
- Questionable
- Unfavorable
- Will this feature be the
life-point for the Product ?
Prioritization
Considerations
System Architecture Business Value

The features with a Understand the business value
large impact on system architecture should be of each of the requirements.
addressed with highest priority Based on the key sponsors and drivers
of the project, the precedence changes
Cost-benefit analysis Complexity

Consider the cost-benefit ratio for a better Address the complex requirements first.
understanding of the value of each requirement. Cost Applying higher priority to complex
should include money as well as other resources like items will ensure that the best resources are
time, labor, finances, overhead, infrastructure, properly allocated
shipping, etc. The high-cost, low-value items
should receive lower priority
Prioritization
Considerations
Difficult-to implement
features Effort for implementation
The items that
Put high priority on items that are difficult to implement.
require more time or effort to implement
This will ensure that enough time is given to
should be implemented first.
implement and optimize each of these items.
High-risk features Safety

Critical safety features
Giving a high-risk feature higher
need to be prioritized first.
priority ensures that they will
Often this is led by regulations.
be scheduled early on, thus
Example PCI Compliance/Bank regulations
reducing the overall risk
for Implementation.
Prioritization
Considerations
Frequency of use
The features that are likely to be Reusable components
used more frequently should
have high priority. These features most often Identify the reusable components and assign them
qualify for optimization and thus scheduling higher priority. These items will reduce future
implementation efforts and thus need to be
them early will provide scope and time for implemented early
optimizing them.
Stability
How a feature affects the stability
of other features plays a key role in deciding
its priority. Stable features should be implemented first.
If the feature is dependent on
external systems, and is likely to change in the
near future, then the implementation should be
assigned a lower
priority.
Prioritization
Considerations
Ways of Prioritization
Not easy
Arrive to correct prioritization is Stakeholders

Takes a lot of negotiation
Users
Speak with end users to

understand what is important
Revise prioritization considerations

What to do first ?
Make a quantitative prioritization analysis
reduce qualitative oriented analysis
Priority Quantification Model
Final priority list has a scientific basis
instead of being qualitatively oriented
all the way
Why do we need a model
to prioritize ? be supported with
Ensure that any later enough justification
point of time priority
of a feature can Explained easily to
stakeholders
Identify items that are crucial

for backlog prioritization
Combine this with the concept of

How do we build
relative sizing and there you go
our model?
Priority Quantification Model construction step by step
Assign a number within relative weight
scale of 1 to 10 to each prioritization
criteria based on their importance.
For example:
Priority quantification model Customer Satisfaction = 10

Complexity = 5 (Meaning the importance of
step by step implementing complex features first is half that of
customer satisfaction)
Business Value = 8
Rate each of the product backlog items against each

of these criteria with a relative rating in the scale of
1 to 10.
Note: We are using the relative sizing technique, which means comparing
the backlog items against each other while deciding on the rating for these
criteria. This rating is based on the relative contribution of that particular
backlog item towards the prioritization criteria as perceived by the client or the
business user.
Priority Quantification Model construction step by step cont.
Multiply the rating against each cell of

the backlog item with the weightage of
the criteria and sum these across a row
to arrive at the total score
Priority quantification model

step by step
So, our backlog item 2 creates the highest

value followed by items 5 and 4
Final thoughts
You gain a better understanding of the

customers needs as the project progresses.
There is a change in stakeholders and/or the

clients organizational dynamics.
Once you arrive at the prioritized

product backlog you are not
Various features are implemented,
freezing the list as priorities necessitating a reshuffling in the other
will change due to many features priorities
reasons, such a
The initial uncertainty in the system is

resolved and the team is focused on more
stable features.
Final Happy Quote:
Smile every chance you get. Not because life has been easy,
perfect, or exactly as you had anticipated, but because you
choose to be happy and grateful for all the good things you do
have and all the problems you know you dont have.

Proper Product Backlog Prioritization by JM

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Proper Product Backlog Prioritization

Presented by: Jesus Mendez

The success of any Agile project depends on the

Product backlog prioritization

Customer receiving ROI

How well items carrying the

Keep the product backlog delivery focused

Create system architecture

Non functional and performance requirement

Customer Satisfaction Measure of Success

System Architecture Business Value

Cost-benefit analysis Complexity

High-risk features Safety

Arrive to correct prioritization is Stakeholders

Speak with end users to

Revise prioritization considerations

Identify items that are crucial

Combine this with the concept of

Priority quantification model Customer Satisfaction = 10

Rate each of the product backlog items against each

Multiply the rating against each cell of

Priority quantification model

So, our backlog item 2 creates the highest

You gain a better understanding of the

There is a change in stakeholders and/or the

Once you arrive at the prioritized

The initial uncertainty in the system is

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