Value vs Effort

The Value vs Effort (V/E) prioritizing method is a simple and effective way to evaluate potential projects or tasks based on their potential value and the effort required to complete them. This method is often used in product management, software development, and project management to prioritize work and make informed decisions about where to allocate resources.

How the Value vs Effort Prioritizing Method Works

The Value vs Effort prioritizing method involves evaluating potential projects or tasks based on two factors: value and effort.

Value: The value of a project or task is its potential impact on the business, users, or stakeholders. This can include factors such as revenue, user satisfaction, competitive advantage, or strategic alignment.

Effort: The effort required to complete a project or task is the time, resources, and complexity required to complete it. This can include factors such as development time, design work, testing, or project management.

To calculate the Value vs Effort score, simply divide the potential value by the effort required. The resulting score provides a relative ranking of projects or tasks based on their potential value per unit of effort.

For example, if a project has a potential value of $1,000,000 and requires 100 hours of development time, the Value vs Effort score would be $10,000 per hour of development time ($1,000,000 / 100 hours = $10,000 per hour).

Benefits of the Value vs Effort Prioritizing Method

The Value vs Effort prioritizing method has several benefits, including:

1. Provides a simple and easy-to-understand framework for prioritizing projects or tasks.

2. Helps teams to focus on projects or tasks that provide the most value per unit of effort.

3. Enables teams to make informed decisions about where to allocate resources and prioritize work.

4. Encourages teams to think strategically about the potential impact of their work on the business, users, or stakeholders.

5. Can be used in combination with other prioritizing methods to provide a more comprehensive evaluation of potential projects or tasks.

Calculating the Value vs Effort Score

To calculate the Value vs Effort score, follow these steps:

1. Define the potential value of the project or task in terms of its impact on the business, users, or stakeholders.

2. Define the effort required to complete the project or task in terms of time, resources, and complexity.

3. Divide the potential value by the effort required to obtain the Value vs Effort score.

4. Use the resulting score to prioritize projects or tasks based on their potential value per unit of effort.