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100 Point Method

A prioritisation technique where stakeholders are given a fixed number of points (typically 100) to allocate to various features or initiatives to help determine their relative importance and priority for development.

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TL:DR

The 100 Point Method, also known as the "100-Dollar Test" or "Cumulative Voting," is a democratic prioritisation tool that simplifies decision-making in product management. By allocating points, it quantifies preferences, promotes stakeholder participation, and ensures strategic alignment, making complex decisions manageable.

Methodology:

  1. Define the criteria,
  2. Identify stakeholders,
  3. Allocate points, 
  4. Score the options, 
  5. Discuss allocations, 
  6. Calculate and prioritise, 
  7. Make decisions.

Benefits:

  • Democratic decision making,
  • Simplicity and clarity,
  • Critical thinking and discussion.

Limitations: 

  • Risk of bias and groupthink,
  • Limited scalability,
  • Lack of nuanced understanding.

Introduction

The 100 Point Method is a straightforward, yet effective, prioritisation tool  widely used by Product Managers within group settings to make collective decisions where there are competing options or features and limited resources. 

Also known as the “100-Dollar Test” or ‘Cumulative Voting”, this method offers a democratic and collaborative approach to decision-making. When resources are limited it can be difficult to decide which options should be prioritised within a product backlog. Add stakeholders with differing opinions on which option provides most value and it can become increasingly complex to decide the most appropriate way forward. Creating a dedicated workshop involving these stakeholders to discuss and form decisions is an essential step in maintaining relations and ensuring feature buy-in. 

The beauty of the 100 point method lies in its simplicity and adaptability, transcending the complexities of traditional decision-making processes, allowing for a clear and quantifiable outcome to be made. This method not only encourages active participation from all stakeholders, but also provides a transparent view of collective preferences. Furthermore, it forces stakeholders to think critically about the importance of each option, considering factors like impact, feasibility, and alignment with strategic goals. 

Through turning subjective opinions into objective data, the 100 Point Method makes decisions transparent and justifiable, ensuring the most valuable initiatives are recognised and pursued. 

Methdology

In the complex and fast-paced world of product management, making informed and strategic decisions about what to prioritise is crucial for success. The 100 Point Method emerges as a powerful tool in this context, especially when Product Managers face the challenge of deciding among a multitude of potential features, projects, or tasks, each with its own set of benefits and stakeholders. This prioritisation tool is particularly useful in scenarios where resources are limited, and the impact of decisions is significant—such as during the early stages of product development, when determining which features to build first, or when a team must decide how to allocate its time and budget effectively across competing product features or development priorities. By allowing stakeholders to distribute a fixed number of points across various options based on their perceived importance, the 100 Point Method facilitates a democratic and quantitative approach to decision-making. This introductory section aims not only to outline the steps involved in applying this method but also to provide a clear framework for when and why Product Managers should consider it an essential part of their toolkit.

Step-by-step guide:

  1. Define the criteria

    Start by clearly listing the options that require prioritisation. These might include features, project initiatives, or any decision points where a choice is necessary. Precision in defining each option ensures clarity throughout the process.

  2. Identify stakeholders

    Select a diverse group of stakeholders for participation. This group should include representatives from all relevant departments to ensure a holistic view of priorities across the organisation.

  3. Allocate points

    Give each participant an equal number of points (100 is recommended) to distribute. The method of allocation can vary, from digital platforms to physical tokens, depending on your setup.

  4. Score the options

    Participants assign their points among the options based on their perceived value or importance. This step is highly subjective and reflects the individual's or department's priorities and strategic vision.

  5. Discuss allocations

    After the allocation, facilitate a group discussion to explore the rationale behind the point distributions. This discussion is vital for uncovering insights and ensuring a shared understanding and alignment on priorities.

  6. Calculate and prioritise

    Sum up the points each option has received. Rank the options according to their total points to establish a clear priority order. This ranking will directly inform decision-making and resource allocation.

  7. Make decisions

    With the priorities now clear, make informed decisions on which options to execute, based on the collective input and strategic objectives. This final step translates the method's outcomes into actionable plans.

By meticulously following the methodology outlined above, Product Managers can confidently apply the 100 Point Method to their decision-making processes. This method not only ensures that all voices are heard but also quantifies the value and importance of various options in a democratic manner. As you integrate this tool into your prioritisation efforts, you will find it invaluable in navigating the complexities of product management, helping to clear the path toward strategic, informed, and consensus-driven decisions. Let the 100 Point Method empower you and your team to approach prioritisation with clarity and confidence, secure in the knowledge that you are making choices that are reflective of your collective priorities and strategic goals.

Benefits & Limitations

Now understanding how to effectively carry out a prioritisation workshop using the 100 Point Method, it is important to understand the benefits and limitations.

Benefits:

  • Democratic decision making

    The 100 Point Method promotes equality in the decision-making process. By giving each stakeholder an equal number of points to allocate, it ensures that all voices are heard and considered. This democratic approach helps in achieving a fair and balanced perspective on what the group as a whole deems most important, reducing the dominance of any single opinion or bias.

  • Simplicity and clarity

    One of the most significant advantages of the 100 Point Method is its simplicity. The concept of distributing a fixed number of points is easy to understand and implement. This simplicity leads to clarity in results, as the final prioritisation is directly reflected by the points allocated to each option. It converts subjective opinions into objective data, making it easier to understand and act upon the group's collective judgement.

  • Critical thinking and discussion

    The process of allocating a limited number of points forces stakeholders to think critically about their choices. It encourages them to consider the relative importance, impact, and feasibility of each option. This often leads to insightful discussions and debates, enhancing the group’s understanding of each item's merits and drawbacks. The method fosters a more thoughtful and engaged approach to prioritisation, leading to more informed and well-considered decisions.

Limitations:

  • Risk of Bias and Groupthink
  • Despite its democratic approach, the 100 Point Method can still be susceptible to biases. Influential group members or those with stronger personalities might sway the opinions of others, leading to groupthink. Additionally, participants might allocate points based on personal preferences or political motivations rather than objective assessment of the options, skewing the results.

  • Limited scalability
  • When there are too many items to prioritise, the 100 Point Method can become cumbersome and less effective. Participants may find it challenging to distribute their points meaningfully across a large number of options, leading to a dilution of the prioritisation process. This can result in a less clear-cut understanding of what should be prioritised.

  • Lack of nuanced understanding

    While the method is excellent for quantifying the importance of various items, it doesn't always capture the nuanced reasons behind these preferences. It provides a numerical value of priority but lacks the depth of understanding why an item is valued highly or lowly. This can lead to decisions that are based on the "what" but not the "why," potentially overlooking critical qualitative factors that should influence prioritisation decisions.

Conclusion

In conclusion, the 100 Point Method stands out as an invaluable tool for Product Managers navigating the intricate landscape of prioritisation within product development and management. Its simplicity, adaptability, and democratic nature make it especially useful in environments where resources are limited and consensus is key. By converting subjective opinions into objective data, it not only ensures a transparent and justifiable decision-making process but also fosters critical thinking and meaningful discussions among stakeholders. However, it's important to be mindful of its limitations, such as the potential for bias and the challenges of scalability. Despite these challenges, the 100 Point Method remains a powerful approach for achieving strategic alignment and ensuring that the most valuable initiatives receive the attention and resources they deserve. As Product Managers continue to seek effective ways to navigate complexities and drive their products forward, the 100 Point Method provides a clear and democratic path to prioritising with confidence and clarity.

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