Swinging For The Fences
A number of our portfolio companies use scoring systems to prioritize projects on their roadmaps. I like this one called RICE (reach, impact, confidence, effort). There are similar versions of this out there. The important thing about these systems is that you need to include probability of success in your analysis. Just looking at effort and impact isn’t enough.
But one thing I’ve seen about these scoring systems is that they can lead your team to do lots of low and medium impact things that have a very high probability of working.
I generally would like to see our portfolio companies taking at least one or two big swings a year. These are high impact, often high effort, and often low confidence. They don’t score that well as a result.
But if you aren’t going for it with at least some of your resources, you can get mired in a rut of small wins and that can be a problem for your growth trajectory, morale, and overall business mojo.
So while I like it when our portfolio companies use scoring systems, I generally suggest they add a requirement to take at least one big swing a year. Over the course of several years, they will get at least one of these right and it can make a huge impact on the business.