2. Release Planning and Prioritization

In this document, we will cover the process of release planning and how to prioritize the right deliverables for a product release. Effective planning is essential to ensure that the features being developed align with the company’s goals, meet customer needs, and deliver measurable value. We’ll also explore prioritization techniques that help organize the product backlog and decide what should be included in each release.

Release Planning

1. Influencing Factors in Release Planning

The key elements that influence release planning are the items in the product backlog, the company’s priorities, the product goals, and the customer needs. During release planning, you determine which features or updates should be delivered based on these factors. It's essential to ensure that the features chosen for the release align with company OKRs, strategic objectives, and any dependencies with other teams' deliverables.

For instance, if your company is expanding into new markets, such as the Latin American market, as highlighted in the previous example, the backlog may include:

  1. Features that were deferred from a previous release.
  2. Roadmap items related to market expansion, such as support for new currencies or payment methods.
  3. New opportunities, like negotiating with a new shipping provider to reduce costs.

When preparing for release planning, it is important to collect relevant data to support decision-making. For example, if your product’s OKR is to increase sales in Latin America, you should look into data such as:

Collecting and analyzing this data helps frame the discussion and provides valuable context to the team, ensuring that decisions made during release planning are grounded in data rather than assumptions.

2. The Role of Prioritization in Release Planning

Prioritization plays a crucial role in release planning. After analyzing the backlog and gathering data, the next step is deciding which items will be included in the release. The most effective release plans are guided by company priorities, OKRs, and strategic goals.

For example, if the overall strategy is to increase sales in Latin America, the priority will likely be to focus on features that drive customer acquisition and sales growth in the region. This could involve implementing payment methods that resonate with local customers or improving the shipping experience to reduce cart abandonment.

In the preparation phase, product managers should collaborate with design and engineering leads (the "Product Trio") to evaluate the backlog, review available data, and identify potential risks or challenges. It is crucial to validate assumptions before making final decisions on what will be included in the release.

Prioritization Techniques

1. The RICE Framework

One of the most widely used prioritization frameworks in product management is RICE, which stands for:

The RICE formula helps quantify the value of each item in the backlog:

RICEScore=Reach×Impact×ConfidenceEffort​

The RICE score helps product teams prioritize features that have the highest potential value (high reach, impact, and confidence) with the least amount of effort. It highlights initiatives that maximize return on investment (ROI).

2. Applying RICE in an Example

Let’s take the example of a growing e-commerce company expanding into Latin America. The backlog includes:

Using the RICE framework:

  1. Installment Payments in Colombia:

    • Reach: 300 customers/month.
    • Impact: High (Score: 2) since 30% of users prefer paying in installments.
    • Confidence: High, based on historical data from other markets (Score: 100%).
    • Effort: Estimated at one person-month of work. $$RICE Score = \frac{300 \times 2 \times 1}{1} = 600$$

  2. Improving Payment Trust in Chile:

    • Reach: 500 customers/month.
    • Impact: High, as users currently don’t feel secure during checkout (Score: 2).
    • Confidence: Lower (Score: 80%) due to multiple hypotheses and potential solutions to test.
    • Effort: Higher, as more time and resources are required to test three different hypotheses (translations, security certificates, etc.).
    RICEScore=500×2×0.82=400

  3. Reducing Shipping Costs in Argentina:

    • Reach: 1,200 customers/month.
    • Impact: Low (Score: 1), as the discount from cheaper shipping only saves 2%.
    • Confidence: High (Score: 100%), since reducing shipping costs will naturally provide value.
    • Effort: Estimated at one person-month of work. $$RICE Score = \frac{1200 \times 1 \times 1}{1} = 600

3. Adjusting Prioritization

The RICE framework is highly flexible, and product teams can modify it to fit their specific context. For instance, if two items receive the same RICE score, teams may choose to prioritize based on additional business metrics, such as revenue impact or strategic alignment.

The key to successful prioritization is transparency and consistency. While the RICE framework provides a structured approach, it’s important to remain flexible and adapt it to real-world conditions, such as shifts in business goals or customer feedback.

4. Handling Larger Initiatives

Sometimes, rather than prioritizing multiple small items in the backlog, you may be working on a larger initiative. In such cases, User Story Mapping can be a helpful tool to break down the initiative into smaller, deliverable parts.

User Story Mapping provides a chronological view of the user journey and the features that support each step. This allows teams to focus on delivering value incrementally while maintaining a clear vision of the larger initiative.

Conclusion

Release planning is a structured approach to defining and delivering product updates that generate value for customers. The process involves analyzing backlog items, gathering data, and using prioritization frameworks such as RICE to make informed decisions. By focusing on measurable outcomes and breaking down larger initiatives into smaller deliverables, product teams can ensure that each release contributes meaningfully to the product’s strategic goals.