This helps in release backlog management, helps the business consider growth opportunities by reviewing its release backlog to decide where to invest , how much or develop further the backlog.
This matrix is to help prioritize the mix of release backlog. Reason is release or sprint backlog is not necessarily the list of high priority items from the master backlog.
Value and the Life of feature are the key inputs required and PO updates this in the system where backlog is managed and keeps ready before the start of the release planning.
This does not discount the other factors which are part of backlog grooming discussion, like Dependency, Complexity, No of user stories, Risks to be mitigated before the feature is in production, technical interfaces to be developed ( with other features/ systems ), tech debt, etc. etc. However approach explained here sets the initiate tone for the mix of release backlog. It is combination of features with short term benefits and features with long term benefits.
The matrix is divided into 4 quadrants based on “Shelf Life” and “relatively expected value of each feature”, as shown in the diagram below.
- Q1 : Features with high shelf life and with high business value. Helps in positioning leadership in the market though require ongoing investment to sustain. They generate more ROI than other features . Ex. dynamic pricing model
- Q2 :Features with low shelf life and with high business value. Often mature, features with high clarity. Ex. promotion based on a event, like Mothers day.
- Q3 :Features with high shelf life and low business value. These often require significant investment to push them into the Q1. The challenge is that a lot of investment may be required to get a return.
- Q4 :These are features with low shelf life and / or low business value. These are items which will generate ongoing revenue with little cost. Ex. payment tie up with a vendor to provide a conditional discount
70% of the backlog is coming from the above matrix. Rest 30% is for the tech debt, enablers, spikes, etc.
This approach is similar to the Growth/Share Matrix