03039 ROI and ROR: Return on Requirements

As a key part of providing requirements to Development, Product Managers must justify and prioritize their requests for new capabilities for the software. There are always more items on the wish list than there is time, people, or money to do them. This means that hard choices are inevitable.

This is where measuring ROI, or Return on Investment, plays a vital role. ROI guides you in selecting those requirements that are most needed and most helpful out of all the requirements which you and many other teammates and customers have dreamed up.

In a world and a company with limited resources, a Product Manager wants to push the specific requirements which will provide the most benefit to the product and the company. By measuring ROI or ROR (Return on Requirements), you have a consistent scale or score by which to compare and select requirements.

Read on below for some pointers on measuring Return on Requirements.

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Jacques Murphy is the founder and author of Product Management Challenges. He has over nineteen years of experience in the Continue reading..