Quantify the value a product delivers to users and the business to support your stakeholder’s assessment of their investment in the product
Everyone with a vested interest. The core team should be involved in initial brainstorming (step 1) and direct stakeholder should be brought along as estimates shape up (steps 2-5).
The time needed varies greatly for several reasons. For example, if you have the data already and are producing a fairly high level estimate, this could take a half day. If you have a complex product, need to gather a lot of data, and are producing a detailed estimate, it could take weeks.
Brainstorm Your Value (30 min)
Bring the full core team together.
Give them 5 minutes to silently generate the value that they believe the team is creating. You can use some of these prompts to help them focus:
Have the group share out what they’ve written and affinity map (group) related items; you’ll use these in Step 2. Visit the “brainstorm your values” part of the related Miro board for examples and more ideas on how to frame the prompts for your team.
Choose the assumptions upon which you will base your calculations. This usually means:
Visit the “identifying assumptions” section of the Miro board for more notes and examples on how to identify clear assumptions.
Identify Input Numbers
Gather data through normal user research means, like talking to users, experts, etc. Make sure to gather:
Visit the “identifying input numbers” section of the Miro board for more notes and examples about identifying the right input numbers.
Calculate Your Value & A Range
Plug your numbers into a spreadsheet to calculate the end valuation, as well as a range. The range is very important for building trust because it allows you to be transparent about the accuracy of your estimate.
Here’s an example:
Calculate Your ROI
Generate the return on investment in your team by dividing the product value you’ve calculated by the amount invested in your team.
Visit the “calculate the ROI of your team” section of the Miro board for more helpful notes.
Tell Your Story
Create a slide or other artifact to present the information you have gathered for your stakeholders. Remember:
Visit the “tell your story” section of the Miro board for more helpful notes.
A single slide that demonstrates the value prop that you can present to stakeholders, and is easily understood.
Remember to do a gut check at every step of the way - that means checking in with your stakeholders and other experts to make sure that you’re staying aligned with them and getting their input.
You may have some of the concerns listed below:
Our advice is to remember that:
In step 1 or 2, you may want to use a prioritization exercise similar to Insight Prioritization.
Measuring the Immeasurable – Blog Post
Particularly helpful for step 1