PIE

Category: Marketing

What is PIE Priority Importance Effectiveness?

PIE Priority Importance Effectiveness is a prioritization method that helps individuals and organizations evaluate and classify tasks, projects or initiatives based on three key criteria: Priority (priority), Importance (importance) and Effectiveness (effectiveness).

This method is particularly useful in project management, product management and personal time management, as it provides a structured approach to making decisions about resource allocation.

The three components of PIE

PPriority (Priority)

How urgent is the execution of this task? The priority takes into account the time constraints and deadlines.

  • Execution deadlines
  • Time constraints
  • Dependencies from other tasks
  • External pressure
  • Speed of results

Question for evaluation: “How urgent must this task be executed?”

IImportance

How important is this task for achieving strategic goals? Importance takes into account the long-term impact.

  • Contribution to business goals
  • Strategic value
  • Impact on final results
  • Value for interested parties
  • Long-term benefits

Question for evaluation: “How important is this task for achieving our goals?”

EEffectiveness

How effective will the execution of this task be? Effectiveness takes into account the impact of the efforts.

  • Return on investment
  • Effect relative to the required efforts
  • Impact on productivity
  • Optimization of processes
  • Saving time or resources

Question for evaluation: “How effective will the execution of this task be?”

Evaluation system: Scale from 1 to 10

  • 1-3 Very low

    Minimum priority/importance/effectiveness

  • 4-5 Low

    Low priority/importance/effectiveness

  • 6-7 Medium

    Moderate priority/importance/effectiveness

  • 8-10 High

    High priority/importance/effectiveness

PIE formula:

PIE Score = Priority × Importance × Effectiveness

The result varies between 1 and 1000

PIE prioritization matrix

  • Critical priority: PIE: 700-1000
  • High priority: PIE: 500-700
  • Medium priority: PIE: 300-500
  • Low priority: PIE: 100-200
  • Very low priority: PIE: 1-50

Application process of the PIE method

  1. 1

    Step 1: Identify the tasks

    Create a complete list of all tasks, projects or initiatives that require attention. Make sure the tasks are specific and measurable.

  2. 2

    Step 2: Evaluate each component

    For each task, assign a rating from 1 to 10 for Priority, Importance and Effectiveness. Base your ratings on specific criteria and data.

  3. 3

    Step 3: Calculate the PIE result

    Multiply the three ratings to get the total PIE result: PIE = Priority × Importance × Effectiveness

  4. 4

    Step 4: Sort and categorize

    Sort the tasks by PIE result in descending order. Categorize them into groups according to their priority (high, medium, low).

  5. 5

    Step 5: Allocate resources

    Based on the PIE results, allocate resources (time, people, budget) according to the priority of the tasks.

  6. 6

    Step 6: Plan and execute

    Create an action plan, starting with the tasks with the highest PIE results. Regularly review and update the ratings.

Practical example: Prioritization of marketing campaigns

Campaign A: Launch a new product line

Priority: 9/10 - Must be launched before the competitive product

Importance: 8/10 - Critical for achieving annual revenue

Effectiveness: 7/10 - Good return on investment, but requires significant resources

PIE Score: 9 × 8 × 7 = 504

Campaign B: Improve SEO positioning

Priority: 6/10 - Important, but not urgent

Importance: 9/10 - Long-term value for organic traffic

Effectiveness: 8/10 - High return on investment, but requires moderate efforts

PIE Score: 6 × 9 × 8 = 432

Campaign C: Update the website design

Priority: 7/10 - Must be done this quarter

Importance: 6/10 - Improves user experience

Effectiveness: 5/10 - Moderate impact on investment

PIE Score: 7 × 6 × 5 = 210

Conclusion: Campaign A has the highest PIE result due to high urgency and importance, despite the lower effectiveness compared to Campaign B.

Advantages of the PIE method

  • Holistic approach: Covers many aspects of prioritization
  • Balance between short-term and long-term goals: Combines urgency (Priority) with strategic importance (Importance)
  • Focus on effectiveness: Includes evaluation of the return on efforts
  • Objectivity: Reduces the influence of emotional and subjective factors
  • Flexibility: Can be adapted to different contexts and industries
  • Easy communication: Simple concept, easy to explain to interested parties
  • Better decision-making: Helps make more informed and balanced decisions

Limitations and challenges

  • Subjectivity in ratings: Ratings still rely on human judgment
  • Potential for bias: Participants may subconsciously influence the ratings
  • Dynamic nature of priorities: Priorities can change quickly
  • Over-reliance on numerical results: Numbers can create an illusion of accuracy
  • Not all factors are considered: May miss important qualitative aspects

Recommendations for successful application:

  • Include opinions from different interested parties
  • Document the assumptions and criteria for evaluation
  • Regular reviews and updates of the ratings
  • Use PIE as one of several tools for decision-making
  • Combine with other methods such as Eisenhower Matrix or MoSCoW

Comparison with other prioritization methods

MethodFocusAdvantagesSuitable for
PIEPriority, Importance, EffectivenessBalanced, holistic, quantitativeStrategic planning, project management
Eisenhower MatrixUrgency and importanceSimple, intuitive, visualPersonal time management, daily tasks
ICEImpact, Confidence, EaseFast, focused on executionProduct management, software development
MoSCoWMust, Should, Could, Won'tCategorical, easy to communicateRequirement management, agile projects
Value vs EffortValue and effortIntuitive, focused on ROIPortfolio management, project selection

PIE Priority Importance Effectiveness - Method for strategic prioritization

Balanced approach for making informed decisions about resource allocation and efforts