The $100 Secret to Smarter Decisions

Unlocking the Power of Participatory Prioritization

The $100 approach—have you heard of it? It's a simple yet powerful prioritization technique that's been popping up in my world lately, and in some surprisingly diverse contexts. I've seen it used to great effect twice in the past two weeks: first at a user research event for a new product we're developing, and then again at a dinner event with fellow product folks.

These two encounters sparked a few thoughts I wanted to share.

What is the $100 Approach?

For those unfamiliar, the $100 approach (also known as the 100-point method) is a participatory exercise used to prioritize ideas or features. Each participant is given a hypothetical $100 (or 100 points) to "invest" across a set of options. They can distribute their budget however they see fit—placing larger bets on high-priority items and smaller amounts on less crucial ones.

The aggregated results provide valuable insights into which ideas resonate most strongly with the group, fostering a more data-driven and democratic decision-making process. This is particularly valuable in user research. Often, simply asking users "Would you want this?" or "Would you use this?" yields a chorus of "yeses." While stack ranking helps, it doesn't reveal the magnitude of preference. The $100 approach tackles both of these challenges, providing a more nuanced understanding of user desires. It helps us move beyond binary yes/no answers and uncover the relative importance of different features or ideas.

From User Research to OKR Planning: A Versatile Tool & A Valuable Lesson

What struck me most was the versatility of this technique. In the user research setting, the $100 approach helped us understand which potential product features resonated most with our target audience. At the product conference dinner, however, the conversation shifted to OKR planning and stakeholder buy-in.

It’s a testament to the power of a well-designed method that it can be so effectively applied across such different contexts. It suggests that the underlying principles of participatory prioritization are universally relevant, whether you're gathering user feedback or aligning internal teams on strategic objectives.

This cross-contextual applicability highlights a broader point: strong tools and approaches often have value beyond their initial intended use. It’s a reminder to always be on the lookout for opportunities to apply what you know in new and creative ways. The ability to connect seemingly disparate domains and leverage your existing skills in novel situations is a powerful asset. So, the next time you encounter a particularly effective method, ask yourself: Where else could this be useful?

Context Matters (But Intuition Often Wins)

During the OKR discussion, an interesting question arose: how much context should be provided for each idea being evaluated? For example, should some ideas be weighted differently if they have a potentially higher impact or a significantly higher cost to execute?

The consensus was that while this additional data is undoubtedly helpful and can be factored into a more complex prioritization algorithm, in practice, people often intuitively incorporate these factors into their voting decisions. They might instinctively allocate fewer dollars to a high-impact idea if they also perceive it as high-risk or high-cost.

This highlights an important nuance: while the $100 approach provides valuable data, it shouldn't be the sole driver of decision-making. It's one piece of the puzzle, a valuable data point to consider alongside other factors like feasibility, market trends, and overall strategic alignment.

The $100 Approach: A Starting Point, Not a Conclusion

The $100 approach is an incredibly valuable tool. It helps surface preferences, encourages discussion, and creates a sense of shared ownership in the decision-making process.

However, it's essential to remember that the results are just that: results. They are not a definitive roadmap, but rather a starting point for deeper conversations and more nuanced analysis.

The real power of the $100 approach lies not in the numbers themselves, but in the conversations they spark and the insights they reveal. It's a tool for understanding, not dictating.