What is RICE Scoring?
RICE is an acronym that stands for Reach, Impact, Confidence, and Effort. It's a framework developed by Intercom to help product teams prioritize ideas and initiatives.
Here's what each component means:
- Reach: How many people will this impact?
- Impact: How much will it affect those people?
- Confidence: How certain are we about our estimates?
- Effort: How much time will it take to implement?
How to Calculate a RICE Score
The RICE score is calculated using the following formula:
RICE Score = (Reach * Impact * Confidence) / Effort
Let's break down each component:
- Reach: Typically measured in people affected per time period (e.g., customers per quarter)
- Impact: Usually scored on a scale (e.g., 0.25, 0.5, 1, 2, 3)
- Confidence: Expressed as a percentage (100%, 80%, 50%, etc.)
- Effort: Estimated in person-months
RICE Scoring in Practice
While RICE scoring can be a valuable tool, it's crucial to remember that it's just that - a tool. It should never replace real conversations with your team and stakeholders. Here's how to use RICE scoring effectively:
- Start with a diverse set of ideas: Gather initiatives from various sources - customer feedback, team brainstorms, stakeholder input, etc.
- Score each initiative: Use the RICE framework to assign scores to each component.
- Calculate the RICE score: Use the formula to get a numerical value for each initiative.
- Review and discuss: This is the most crucial step. Use the scores as a starting point for discussions, not as a final decision.
RICE: A Conversation Starter, Not an Ender
It's tempting to use RICE scores as a definitive ranking of what to work on next. However, this approach misses the true value of the RICE framework. Here's why:
- Scores can be subjective: Different team members might assign different values to Reach, Impact, and Confidence.
- Context matters: RICE doesn't account for strategic alignment, dependencies, or other contextual factors.
- It's not infallible: Like any model, RICE has limitations and can't capture every nuance of product development.
Instead, use RICE scores to facilitate discussions. They provide a common language for comparing different initiatives and can highlight discrepancies in how team members view certain projects.
Best Practices for Using RICE Scoring
- Be consistent: Use the same scales and definitions across all initiatives.
- Involve the team: Score initiatives as a group to leverage diverse perspectives.
- Revisit and refine: As you learn more, update your scores and recalculate.
- Combine with other methods: Use RICE alongside other prioritization techniques for a well-rounded view.
- Focus on relative scores: The absolute value matters less than how initiatives compare to each other.
Real World Usage: Aligning RICE with Company Vision
While RICE scoring provides a solid foundation for prioritization, real-world application often requires adaptation to align with a company's unique vision and goals.
Here's how I've successfully extended the RICE model to create better alignment with stakeholders:
- Add vision-aligned columns: Introduce 1 or 2 additional scoring columns that directly relate to your company's core values or long-term objectives.
- Example: Trust Score for Trustpilot: For a company like Trustpilot, where trust is paramount, I added a "Trust Impact" column. This helped us evaluate how each initiative would affect user trust in the platform.
- Weigh short-term gains against long-term vision: Use these additional columns to balance immediate benefits (captured by traditional RICE) with long-term strategic alignment.
- Facilitate richer discussions: These extra dimensions often spark more in-depth conversations about the true value and implications of each initiative.
By extending the RICE model in this way, we were able to:
- Better align product decisions with company vision
- Increase stakeholder buy-in by demonstrating strategic thinking relevant to the core of the business
- Avoid short-sighted decisions that could erode core company values
- Create a more holistic view of each initiative's potential impact
Remember, all product tools, including RICE scoring, are helpers, not a religion. The key is to adapt and extend these frameworks to fit your specific context and needs. By doing so, you create a more robust decision-making process that considers both immediate impact and long-term strategic alignment.
Conclusion
RICE scoring is a valuable tool in a product manager's toolkit, but it's most effective when used to facilitate discussions and align teams. By using RICE scores as a starting point for conversations rather than a final verdict, and by adapting the model to include company-specific factors, you can make more informed, collaborative decisions about product priorities that truly align with your organization's vision and goals.