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RICE scoring

Also called: RICE, RICE framework, RICE score

A prioritization formula that scores each idea as Reach × Impact × Confidence ÷ Effort, giving a comparable number for how much value it delivers per unit of work.

RICE is a prioritization formula popularized by Intercom's product team. It scores each idea on four factors:

  • Reach: how many people the idea affects in a fixed period, e.g. customers per quarter.
  • Impact: how much it changes things for each of them, on a coarse scale: 3 = massive, 2 = high, 1 = medium, 0.5 = low, 0.25 = minimal.
  • Confidence: how sure you are about reach and impact: 100% = high, 80% = medium, 50% = low.
  • Effort: total work, usually in person-months across all functions.

RICE=Reach×Impact×ConfidenceEffort\text{RICE} = \frac{\text{Reach} \times \text{Impact} \times \text{Confidence}}{\text{Effort}}

The result is roughly "impact delivered per unit of work", which lets you compare very different ideas on one scale. Confidence is its most useful ingredient: it discounts exciting ideas backed only by enthusiasm.

RICE fits an outcome-based roadmap well when impact is defined against a specific objective ("impact on 90-day repeat purchases") rather than general importance. Otherwise the score measures nothing in particular. It is close in spirit to value/effort scorecards, which divide value by effort and multiply by confidence; RICE simply splits value into reach and impact.

Its limits: RICE favors ideas that reach many users, so a strategic bet for a small but important segment can score low. It ignores dependencies and deadlines. And precise-looking numbers can hide guesses. Use it to rank and to start a conversation, then sanity-check the order.

Example

CatChow scores three ideas for the next quarter (impact = effect on 90-day repeat purchases):

Idea
Reach (customers/quarter)
Impact
Confidence
Effort (person-months)
RICE
One-tap reorder
6,000
1
80%
2
6,000 × 1 × 0.8 / 2 = 2,400
Feeding plan by cat's age
2,000
2
50%
3
2,000 × 2 × 0.5 / 3 ≈ 667
Delivery SMS
9,000
0.5
100%
1
9,000 × 0.5 × 1 / 1 = 4,500

Delivery SMS ranks first and one-tap reorder second. The feeding plan scores lowest, yet it's the only idea that serves the new objective of attracting kitten owners: a reason to discuss it, not to discard it.

Common mistakes

  • Impact without a target metric. Decide which objective "impact" refers to before scoring.
  • Reach in mixed units. Use the same period and the same population for every idea.
  • Confidence as optimism. 100% means you have data, not that you feel strongly.
  • Engineering-only effort. Include design, marketing, support and legal time.
  • Treating the rank as final. Check dependencies, deadlines and strategic bets that RICE underrates.