Value vs. Effort Matrix framework

We're building a comprehensive knowledge library about product development as part of our mission. The library is for anyone looking to make better decisions — primarily decisions about how to further develop a product. Whether you're an inventor, a product manager, or a Chief Product Officer, using a structured decision-making method increases your chances of building the right things for the right audience (build the right thing for the right audience). Today we'll introduce the Value vs. Effort Matrix framework.

Framework name: Value vs. Effort Matrix.

Inventor: Unknown, inspired by Dwight D. Eisenhower's principles of problem-solving and prioritization.

Year of first use: Unknown, likely after 2000 as part of the agile movement.

Link to the author's original research: Unknown.

Key figures in the framework's development:

1. Dave Gray,

2. David Allen,

3. Michael Brassard.

Key milestones in the framework's development:

1. Prioritizing the work of the President of the United States,

2. Integration into agile development.

History of First Use

There is no single author of the Value vs. Effort Matrix, so its historical context of use can't be pinned down either. The matrix is generally used to prioritize when resources are limited and to get a clearer sense of what to build next.

Basic Prioritization Principles

The core idea of the matrix is to maximize value and minimize effort. However, that goal isn't always required, which makes prioritization highly subjective.

The matrix has two axes and four quadrants that represent four ways to prioritize the next products and features:

• Value = the X axis shows the value you gain by building a given product. That value may or may not relate to the customer.

• Effort = the Y axis shows the effort required to build this product.

The axes are often fixed so that, for example, maximum effort is 10 and maximum value is also 10. This produces a simple 2x2 prioritization matrix in which each quadrant serves a specific purpose. You arrive at the values through a subjective assessment of the situation or through some quantitative or qualitative analysis.

Quadrant I — Big Bets

The "top-right" quadrant represents Big Bets, large products or features that have an enormous impact on value but require significant effort to complete.

These products and features can generally be prioritized when you have enough resources to finish them. Big Bets represent strategic projects with high added value that move you from 0 to 1.

Quadrant II — Quick Wins

The "top-left" quadrant represents Quick Wins, extremely small features and products that have limited but noticeable value and at the same time don't require significant effort to complete.

These products and features can generally be prioritized when you have some spare resources to finish them. Capacity can arise, for example, from a time gap between finishing a more valuable task and starting the next one.

Quadrant III — Fill-ins

The "bottom-left" quadrant represents Fill-ins, small, lightweight products or features that have almost no value but don't take much effort to build.

These products and features can generally be prioritized when there is no more valuable work available (or it isn't prepared yet).

Quadrant IV — Money Pits

The "bottom-right" quadrant represents Money Pits, large, complex products or features that have no value and at the same time require a lot of effort to build.

These are the products and features we generally try to avoid building.

Prioritization Example

We have four features for developing an e-shop:

1. Adding a payment card, where analysis tells us it will bring a 4% improvement in customer retention. Value 9, effort 4.

2. Adding variant sales (the same sparkling water comes in 1.5 l, 1 l, 0.5 l, or 0.2 l packaging), which we know is technically very demanding to implement. Value 7, effort 7.

3. Clarifying the e-shop's terms of use. Value 4, effort 5.

4. Adding cryptocurrency payments, where we know that in 2025 only 0.001% of people in Europe want to pay with cryptocurrency on an e-shop. Value 3, effort 6.

Visual Prioritization Example