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The Art of Prioritization
Alexander Sergeev
Hygger CEO & Founder
1997-2002
BSU, programmer
2003-2005
SPSU, engineering psychologist
2016 – now
CEO & Founder, Hygger.io – product management tool
2017 – now
Founding Partner, Cuspy.vc – startup studio
“Managing the product”- means deciding what we do
to the product and then making it happen.
Ryan Singer - Product Strategy at Basecamp
Distractions literally kill startups. Building stuff for
the sake of building it is startup suicide. So having
a rigorous and honest prioritization process for
feature development is critical to controlling
distraction and eliminating waste.
Ben Yoskowitz – the author of Lean Analytics, investor, 500 startups
mentor
The Next Feature Fallacy: the fallacy that the next
feature you add will suddenly make people want
to use the entire product.
Joshua Porter - HubSpot UX director
3 types of product managers
• Backlog administrator – when CEO is responsible for decisions
• Roadmap administrator – when stakeholders are responsible
for decisions
• Product manager – decisions are made by a product manager
Defining priorities is the main skill of product managers
Wanna grok prioritization? Let’s move on
Our process
• Formulate the company's goals for 2 months
• Choose metrics according to the goals
• Gather and organize ideas
• Apply Lean prioritization
• Arrange features scoring
• Detail features and add to the queue
Our current goals
• Increase conversion trial-to-paid
• Separate from competitors
Our metrics
Key metrics
• trial-to-paid conversion
Additional metrics
• conversion of visitors into registrations
• activations (aka AHA moment)
• retention 1d
Where do we get ideas?
• Customer support (Intercom, Zendesk)
• Inspectlet (or AppSee for mobile)
• NPS (How likely are you to recommend us to your friends and colleagues?, Wootric, Satismeter)
• Product analytics (Amplitude)
• The analysis of competitors (Feedly)
• Interviews (cust dev, temi.com, rev.com)
• Experiments and A/B testing
• Reviews (App Store, Google Play, Capterra) - appfollow.io or appannie.com
• UX testing
• Surveys
Backlog structuring
• by components (backend, frontend, API, mobile apps)
• according to the field of application (UX, marketing, tech debts, bugs)
• flag the most strategic and important
• link insights and features to understand features relevance
Lean Prioritization
What to take further into the work?
• Quick Wins – “low-hanging fruits”
• Big Bets – it’s better to break them down into small tasks and re-estimate them.
• Maybes – fill pauses with them between large features
• Time sinks – skip them
What is value about?
The features get Value if they:
• Improve metrics of trial-to-paid conversion (metrics movers)
What is value about?
Features get Value if they:
• Improve metrics of trial-to-paid conversion (metrics movers)
• Assist to acquire new users (aha moment)
• 1000 users visit your homepage to check out your product
• 20% sign up
• 80% finish onboarding
• 40% visit the next day after signup
• 20% visit the next week after signup
• 10% visit after 30 days after signup
• After 30 days, 20 users (out of 1000!) are DAUs
What is value about?
Features get Value if they:
• Improve metrics of trial-to-paid conversion (metrics movers)
• Assist to acquire new users (aha moment)
• Help to retain current users
What is value about?
Features get Value if they:
• Improve metrics of trial-to-paid conversion (metrics movers)
• Assist to acquire new users (aha moment)
• Help to retain current users
• Add value to the product and separate us from competitors
Planning poker
• Meet altogether
• A leader takes an idea and the group discusses it
• Each participant evaluates the idea according to the Fibonacci sequence
• Then the Leader opens all the cards
• People who put max and min explain their decision
• The team tries to find consensus
• Next feature
Prioritization techniques
Prioritization techniques types
• External & Quantitative – Kano model
• External & Qualitative – Story Mapping
• Internal & Quantitative – Lean Prioritization
• Internal & Qualitative - KJ
Daniel Zacarias (foldingburritos.com)
Features scoring
Criteria for scoring. Part 1
• Target metrics
• Increases income
• Helps to acquire new customers
• Helps to retain current customers
• Value for users
• Strategic value – does not provide now, but later will help with it
• Is it possible to solve the task within available functionality
• Strong innovation
• Many competitors have it
Criteria for scoring. Point 2
• Is needed for many users
• How often is needed
• Time and cost of development
• Time and cost of implementation
• Confidence in success
• Expectation according to Kano
• Desired according to Kano
• Delighting according to Kano - wow-effect, value for PR
• Improves code (facilitate refinement and support)
• pirate metrics
Results
• The degree of influence of intuition in decision-making has been
decreased
Results
• The degree of influence of intuition in decision-making has been
decreased
• Return HIPPO (highest paid person’s opinion)
Results
• The degree of influence of intuition in decision-making has been
decreased
• Return HIPPO (highest paid person’s opinion)
• Strategic indicators are growing steadily
Results
• The degree of influence of intuition in decision-making has been
decreased
• Return HIPPO (highest paid person’s opinion)
• Strategic indicators are growing steadily
• Our customers get more value per unit of time
Results
• The degree of influence of intuition in decision-making has been
decreased
• Return HIPPO (highest paid person’s opinion)
• Strategic indicators are growing steadily
• Our customers get more value per unit of time
• The team understands WHY we are creating specific features
Results
• The degree of influence of intuition in decision-making has been
decreased
• Return HIPPO (highest paid person’s opinion)
• Strategic indicators are growing steadily
• Our customers get more value per unit of time
• The team understands WHY we are creating specific features
• Minor ideas are being hide and do not irritate. Anyway, 80% of ideas will
never be realized.
Thanks for your attention!
Let’s get closer How to learn to be happy?

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How do we prioritize our product backlog in Hygger.io?

  • 1. What’s next? The Art of Prioritization Alexander Sergeev Hygger CEO & Founder
  • 2. 1997-2002 BSU, programmer 2003-2005 SPSU, engineering psychologist 2016 – now CEO & Founder, Hygger.io – product management tool 2017 – now Founding Partner, Cuspy.vc – startup studio
  • 3. “Managing the product”- means deciding what we do to the product and then making it happen. Ryan Singer - Product Strategy at Basecamp
  • 4. Distractions literally kill startups. Building stuff for the sake of building it is startup suicide. So having a rigorous and honest prioritization process for feature development is critical to controlling distraction and eliminating waste. Ben Yoskowitz – the author of Lean Analytics, investor, 500 startups mentor
  • 5. The Next Feature Fallacy: the fallacy that the next feature you add will suddenly make people want to use the entire product. Joshua Porter - HubSpot UX director
  • 6. 3 types of product managers • Backlog administrator – when CEO is responsible for decisions • Roadmap administrator – when stakeholders are responsible for decisions • Product manager – decisions are made by a product manager
  • 7. Defining priorities is the main skill of product managers Wanna grok prioritization? Let’s move on
  • 8. Our process • Formulate the company's goals for 2 months • Choose metrics according to the goals • Gather and organize ideas • Apply Lean prioritization • Arrange features scoring • Detail features and add to the queue
  • 9. Our current goals • Increase conversion trial-to-paid • Separate from competitors
  • 10. Our metrics Key metrics • trial-to-paid conversion Additional metrics • conversion of visitors into registrations • activations (aka AHA moment) • retention 1d
  • 11. Where do we get ideas? • Customer support (Intercom, Zendesk) • Inspectlet (or AppSee for mobile) • NPS (How likely are you to recommend us to your friends and colleagues?, Wootric, Satismeter) • Product analytics (Amplitude) • The analysis of competitors (Feedly) • Interviews (cust dev, temi.com, rev.com) • Experiments and A/B testing • Reviews (App Store, Google Play, Capterra) - appfollow.io or appannie.com • UX testing • Surveys
  • 12. Backlog structuring • by components (backend, frontend, API, mobile apps) • according to the field of application (UX, marketing, tech debts, bugs) • flag the most strategic and important • link insights and features to understand features relevance
  • 14. What to take further into the work? • Quick Wins – “low-hanging fruits” • Big Bets – it’s better to break them down into small tasks and re-estimate them. • Maybes – fill pauses with them between large features • Time sinks – skip them
  • 15. What is value about? The features get Value if they: • Improve metrics of trial-to-paid conversion (metrics movers)
  • 16. What is value about? Features get Value if they: • Improve metrics of trial-to-paid conversion (metrics movers) • Assist to acquire new users (aha moment) • 1000 users visit your homepage to check out your product • 20% sign up • 80% finish onboarding • 40% visit the next day after signup • 20% visit the next week after signup • 10% visit after 30 days after signup • After 30 days, 20 users (out of 1000!) are DAUs
  • 17. What is value about? Features get Value if they: • Improve metrics of trial-to-paid conversion (metrics movers) • Assist to acquire new users (aha moment) • Help to retain current users
  • 18. What is value about? Features get Value if they: • Improve metrics of trial-to-paid conversion (metrics movers) • Assist to acquire new users (aha moment) • Help to retain current users • Add value to the product and separate us from competitors
  • 19. Planning poker • Meet altogether • A leader takes an idea and the group discusses it • Each participant evaluates the idea according to the Fibonacci sequence • Then the Leader opens all the cards • People who put max and min explain their decision • The team tries to find consensus • Next feature
  • 20. Prioritization techniques Prioritization techniques types • External & Quantitative – Kano model • External & Qualitative – Story Mapping • Internal & Quantitative – Lean Prioritization • Internal & Qualitative - KJ Daniel Zacarias (foldingburritos.com)
  • 22. Criteria for scoring. Part 1 • Target metrics • Increases income • Helps to acquire new customers • Helps to retain current customers • Value for users • Strategic value – does not provide now, but later will help with it • Is it possible to solve the task within available functionality • Strong innovation • Many competitors have it
  • 23. Criteria for scoring. Point 2 • Is needed for many users • How often is needed • Time and cost of development • Time and cost of implementation • Confidence in success • Expectation according to Kano • Desired according to Kano • Delighting according to Kano - wow-effect, value for PR • Improves code (facilitate refinement and support) • pirate metrics
  • 24. Results • The degree of influence of intuition in decision-making has been decreased
  • 25. Results • The degree of influence of intuition in decision-making has been decreased • Return HIPPO (highest paid person’s opinion)
  • 26. Results • The degree of influence of intuition in decision-making has been decreased • Return HIPPO (highest paid person’s opinion) • Strategic indicators are growing steadily
  • 27. Results • The degree of influence of intuition in decision-making has been decreased • Return HIPPO (highest paid person’s opinion) • Strategic indicators are growing steadily • Our customers get more value per unit of time
  • 28. Results • The degree of influence of intuition in decision-making has been decreased • Return HIPPO (highest paid person’s opinion) • Strategic indicators are growing steadily • Our customers get more value per unit of time • The team understands WHY we are creating specific features
  • 29. Results • The degree of influence of intuition in decision-making has been decreased • Return HIPPO (highest paid person’s opinion) • Strategic indicators are growing steadily • Our customers get more value per unit of time • The team understands WHY we are creating specific features • Minor ideas are being hide and do not irritate. Anyway, 80% of ideas will never be realized.
  • 30. Thanks for your attention! Let’s get closer How to learn to be happy?

Editor's Notes

  1. Всем привет! Меня зовут Александр Сергеев и сегодня я расскажу о том, как мы выбираем фичи для разработки.
  2. Управление продуктом состоит из трех больших блоков - user research, планирование и execution. На стадии планирования мы лепим образ будущего продукта. И очень важно использовать такие материалы, которые улучшат показатели нашего продукта, его прибыль, его UX и так далее. И не будем кривить душой - я думаю что многие продакты кайфуют от такой лепки - от возможности влиять на то каким будет продукт.
  3. Marty Cagan выделил три типа менеджеров продукта. Задача Backlog администратора просто аккуратно сложить все хотелки CEO и ничего не потерять. Roadmap администратор уже может что-то предложить сам, но решает все равно группа стейкхолдеров. И только последний третий тип - может принимать решения самостоятельно. Вот именно таким менеджерам и пригодится мой процесс. Если вы менеджер другого типа - меняйте работу, потому что изменить mindset CEO очень сложно )