STEP6: ESTIMATING FEATURE X ROI.
This step denotes a critical point, here we take the final verdict for building and shipping of feature X.
To reach this step both of step 4 and 5 must give yield positive results:
- Feature X is feasible within our current resources, time and budget scope.
- Feature X has low risk (benefits outweigh the risks).
The only thing left to look at is ROI: are we going through all that trouble to ship feature X just to generate a total revenue increase of 0.02%, is it worth it? Or perhaps feature X costs almost nothing so whatever profit it makes is good! That is not the correct way of looking at things. Financial value is essential, where as we are here looking at a different type of value; the value for our product can be measured through social impact, user loyalty, brand trust, brand reach and awareness, viral effects…etc.
ROI = gain from investment/ cost of investment.
Gain from investment can be measured through marketing and sales metrics like for example: expected growth in site traffic, listings, registered user, page views, SE ranking, reach, user activity, and site ads performance, sales leads, social media activity…Etc.
Expected cost can be calculated from step 4 which includes engineering and design effort, deployment and integration, testing and QA, SEO and marketing…Etc.
STEP7: PLAN FOR FEATURE X PRODUCTION:
ROI on feature X is reasonable and we are ready to plan the building and shipping of this feature: PM will collaborate with the cross functional teams to create plans for development, design, QA, testing, marketing and launch.
STEP8: PRIORITIZE FEATURE X PRODUCTION.
- Prioritization based on lower investment to higher return ratio.
- Determine prioritization rank for feature X within current list of features in the production pipeline.
- Estimate shipping date for Feature X in reference of its set priority.
STEP9: COMPILE RESPONDS TO USERS:
- On feature X already planned for shipping, reply includes estimate date for shipping and reasoning.
- On feature X not shipping, reply includes explanation to why the feature was declined and a commitment for a future reassessment of the feature eligibility for inclusion.
STEP10: ADD FEATURE TO WATCH LIST IF NOT SHIPPING.
Any feature that doesn’t make it to production is sent to the watch list. The list is an inspiration bank for exploring future development and allows us to reconsider any feature that was held back when new changes are made to our product vision, strategy or tactics.
To Summarize all the steps we’ve discussed in the past 3 posts I have created the following table which includes roles and activities of the product teams during features assessment process.
|Business Strategy and vision compliance(Business qualification)||-Dose this feature fit in the context of current product vision and strategy?-Does this feature align with product roadmap? Feasibility||-Management board-CEO-Product manager||-Meeting to discuss and take decision on primary acceptance and escalate feature to next level investigation.||If not accepted Feature added to watch list.Feature moved to assessment process under product manager authority.|
|Value assessment||-Feature product value proposition: What value does this feature bring to the product? Here we determine if the feature has an Innovation peak (solves users problem or/and increase users productivity) or/and brings UI improvements that enhances UX.-Feature user value proposition (Opportunity assessment): What value do users see in this feature? Can this feature be considered an opportunity to increase user satisfaction and reduce churn.||-Product manager.-UX lead.-Marketing lead.-Sales lead.||-Each team lead is required to do proper analysis of feature value from user and product prospective based on market, competition, and internal user activity streams data. Results and conclusions report complied at a pre assisted deadline.-Product manager is required to prepare final report after meeting with team leads.Report discussed with CEO.||Final decision taken to wither feature should be escalated to next level assessment.If feature is declined it should remain in watch list.|
|Feasibility assessment||-Do we have the capability or capacity to build this feature?-Research feature requirements, which include: technical development, design, marketing, testing, implementation, infrastructure, maintenance, operational and launching. All these requirements should be within available resources, time to market and budget constraints.||-Product manager.-UX lead.-Marketing lead.-Technical lead.-QA lead.-Customer Support Lead.-Business Requirements analyst.||-Each team lead is required to do proper analysis of feature requirements. Report complied at a pre assisted deadline.-Product manager is required to prepare final report after meeting with team leads.Report discussed with CEO.||Final decision taken to wither feature should be escalated to next level assessment.If feature is declined it will be moved to “feasibility blocking “list.|
|Risk assessment||-What good or bad impact this feature might have on current site services and features?-Does it play well and blend with current UX? Will users productivity be affected? Here we analyze Feature impact (weigh positive and negative expectations).||-Product manager.-UX lead.-Marketing lead.-Technical lead.-Content Lead-Customer Support Lead.-Sales.||-Each team lead is required to do proper analysis of feature impact. Report complied at a pre assisted deadline.-Product manager is required to prepare final report after meeting with team leads.Report discussed with CEO.||Final decision taken to wither feature should be escalated to next level assessment.If feature is declined it would be moved to “Risk blocking “list.|
|ROI assessment||-After passing all assessment stages, final decision determinate element in feature evaluation ROI. The KPIs which govern conversion is used to measure ROI.-What is the expected growth in site traffic, Ad listings, registered users, page views, user interactions, site ads performance, sales, revenue, brand position and brand loyalty…etc?. All These estimations will be converted into rough net value that can be measured against initial investment estimations (which consist of expected cost of engineering and design effort, deployment and integration, testing and QA, marketing, launching, maintaining, and operational), accordingly we can define wither feature net estimated profit is large enough to take a risk.||-Product manager.-Business -Requirements analyst.||-Product manager conduct conversion levels and KPIs projection on feature with the assistance of marketing lead.-Feature development costs are estimated using “cost per work hour” for staff effort in addition to third party and operational costs. All cost estimates are complied with the assistance of business analyst.||Final decision taken to signoff feature for production.If feature is declined it would be moved to “ROI blocking” list.|
|Plan for feature production||-Create detailed production requirements and scoping from all departments. The production plan includes plan that covers all Development, design, QA, testing, marketing, maintenance, operation and launch plans.-Define feature dependencies and relation with current and other already planed features in the production line.||-Product manager.-UX lead.-Marketing lead.-Technical lead.-QA Lead.-Customer Support Lead.-Sales.||-Each team lead is required to do prepare his plan for feature production.-After meeting with team leads and discussing their plans, product manager compiles the final production plan.-Product manager discuss production plan with CEO and signs off production approval.||Feature is added to product backlog waiting prioritizing.Managing board is informed of feature status.|
|Prioritize Feature production||-Where should we place this feature in our production line?-Always do prioritization based on lower investment to higher return ratio. It is a good practice to estimate feature shipping date in reference of its set priority so we can actually provide feedback to users and forecasting to management.||-Product manager.-Marketing Lead-Sales Lead.-CEO.||-Reassessment of all features in backlog prioritizing status is required by product manager when adding new feature to production line and after releasing a feature to users.-Priority list is maintained and referenced through product manager.||Feature estimated production and release dates are set to teams.Managing board is informed of feature status.Priority list is updated and distributed.Scrum Agile Process initiated.|
- Depending on business situation and feature weight not all steps are required for all features processing, some features will require full processing while other only requires few selected steps from the process below.
- In each processing stage each team Involvement levels is determined by the expected effort or/and impact a feature will place on that team.
I’m also Sharing the following diagram that shows all feature processing steps with details: