5. Prioritization Frameworks - ICE and RICE Score

In this lesson, we explore two prioritization frameworks: ICE Score and RICE Score. These frameworks are effective tools for helping product teams rank initiatives based on multiple factors that reflect the potential value and complexity of each idea.

The ICE Score Framework

The ICE Score is a simple prioritization framework that evaluates initiatives based on three key factors:

• Impact: How much positive effect will the initiative have on the product and business?
• Confidence: How certain are we that the predicted impact will occur? This is based on data, research, and market understanding.
• Ease: How easy or difficult is it to implement the initiative? The lower the difficulty, the higher the score.

The formula for the ICE score is:

ICE Score = (Impact * Confidence) / Ease

When applying ICE scoring, it's recommended to use a scale of 1 to 5 for each factor. This helps avoid too much subjectivity and ensures that the difference between scores is meaningful. For impact and confidence, higher values are better, while for ease (difficulty), a higher score means the task is easier, so the inverse is considered.

Applying ICE Score: White-Label Course Platform Example

Let’s evaluate the four initiatives in our hypothetical white-label course platform using the ICE score:

1. Pix Payment Implementation

   • Impact: 2 (Low, based on limited requests for Pix)
   • Confidence: 4 (High, because data supports this request)
   • Ease: 2 (Difficult to implement)
   • ICE Score = (2 * 4) / 2 = 4

2. Marketing Email Scheduling

   • Impact: 5 (High, as it addresses a critical need for clients)
   • Confidence: 4 (High, based on market trends and client requests)
   • Ease: 3 (Relatively difficult to implement)
   • ICE Score = (5 * 4) / 3 = 6.67

3. More Automation Triggers

   • Impact: 3 (Moderate impact due to demand, but unclear needs)
   • Confidence: 2 (Low, due to unclear specifics)
   • Ease: 4 (Easier to implement)
   • ICE Score = (3 * 2) / 4 = 1.5

4. Improving Home Screen Usability

   • Impact: 4 (High, due to improved user experience for students)
   • Confidence: 4 (High, based on user feedback)
   • Ease: 3 (Moderate difficulty)
   • ICE Score = (4 * 4) / 3 = 5.33

Prioritization Based on ICE Score

1. Marketing Email Scheduling: 6.67
2. Improving Home Screen Usability: 5.33
3. Pix Payment: 4
4. More Automation Triggers: 1.5

The RICE Score Framework

The RICE Score is similar to the ICE score but adds a fourth factor: Reach. This helps prioritize initiatives based on the number of people or customers who will be impacted. The formula for the RICE score is:

RICE Score = (Reach * Impact * Confidence) / Effort

• Reach: The number of people who will benefit from this initiative.
• Impact: How much positive effect the initiative will have.
• Confidence: How certain we are that the initiative will achieve the expected impact.
• Effort: The amount of work required to implement the initiative.

Again, we use a scale of 1 to 5 for impact, confidence, and effort, and a numerical value for reach (e.g., the number of users impacted).

Applying RICE Score: White-Label Course Platform Example

Using the same initiatives, we now add a "reach" value to each and calculate the RICE score.

1. Pix Payment

   • Reach: 25 (Only a small number of users requested this)
   • Impact: 2 (Low impact)
   • Confidence: 4 (High confidence based on data)
   • Effort: 2 (Difficult to implement)
   • RICE Score = (25 * 2 * 4) / 2 = 100

2. Marketing Email Scheduling

   • Reach: 50 (All B2B clients will use this)
   • Impact: 5 (High impact)
   • Confidence: 4 (High confidence)
   • Effort: 3 (Relatively difficult)
   • RICE Score = (50 * 5 * 4) / 3 = 333.33

3. More Automation Triggers

   • Reach: 50 (All B2B clients will benefit)
   • Impact: 3 (Moderate impact)
   • Confidence: 2 (Low confidence)
   • Effort: 4 (Easier to implement)
   • RICE Score = (50 * 3 * 2) / 4 = 75

4. Improving Home Screen Usability

   • Reach: 500 (Impacts the end users of all B2B clients)
   • Impact: 4 (High impact)
   • Confidence: 4 (High confidence)
   • Effort: 3 (Moderate difficulty)
   • RICE Score = (500 * 4 * 4) / 3 = 2,666.67

Prioritization Based on RICE Score

1. Improving Home Screen Usability: 2,666.67
2. Marketing Email Scheduling: 333.33
3. Pix Payment: 100
4. More Automation Triggers: 75

Conclusion

Both ICE and RICE provide a structured way to evaluate and prioritize initiatives based on several factors. While ICE focuses on impact, confidence, and ease, RICE adds a critical dimension: reach, allowing teams to prioritize initiatives that benefit the largest audience. In the example of the white-label course platform, using RICE helps surface high-impact, high-reach initiatives like improving home screen usability, while ICE offers a simpler method for ranking initiatives based on effort and certainty.