Bet Cost Matrix
The Bet Cost Matrix (developed by Hias Wrba) is a simple method that helps teams to validate ideas or individual features precisely. This not only clarifies what should happen with the idea, but also creates a common understanding and a stronger commitment within the team.
Rate by two dimensions
The participants rate individual ideas, which can be any size, form product ideas to Epics to User Stories along two dimensions:
How much would it roughly cost the organisation to implement the idea?
How much would the participant personal bet, that the idea has any real value for the users?
The scale for both dimensions are tangible real-live categories for example 🏡 > 🚗 > 🏖️ > 🍽️ > 🍦
Each idea is first rated secretly by each participants. The ratings are then revealed and discussed. This helps to foster a shared understanding and furthermore quickly reveals hidden assumptions regarding value or costs. When the group has found an agreement across the two dimensions the idea is placed on the matrix in the according field.
Build cluster
The fields are usually combined into clusters with an allocated action to make the idea production ready. Common clusters and actions are:
Low Bet/Low Cost → Do testing with a prototype or first quick implementation
Low Bet/High Cost → Conduct foundational user research to understand the actual needs
High Bet/Low Cost → Build it!
High Bet/High Cost → work on breaking down the idea into smaller independent parts which contain value
The cluster of the matrix and the associated actions can and should be adjusted to your needs.
Categories
