business planning level 1 apc

APC Support and mentoring

Rics apc – business planning.

Posted on June 23, 2018 Updated on June 23, 2018

Introduction.

Business Planning is a mandatory competency that APC candidates from all pathways need to achieve at Level 1.

Candidates from the Art & Antiques pathway may elect to take this competency to Level 2 or 3 as part of their optional selection.

Business Planning is a Core Competency at Level 3 for the Management Consultancy pathway.

Please note that the requirements at Level 1 when taken as a Technical Competency within the aforementioned pathways are slightly different from the requirements as a Mandatory Competency. You should refer to your specific Pathway Guide for more details.

What is it about?

The official RICS definition is:

Level 1 = ‘ Demonstrate knowledge and understanding of how business planning activities contribute to the achievement of corporate objectives’.

It includes several topics:

• Legislation and principles of law – See Pg. 33 of the RICS Practice Management Guidelines
• Types and essential elements of Business Plans
• Short term / long term strategies
• Market analysis (SWOT / PEST)
• Organisational structures / Staffing levels – recruitment / turnover
• Business support services – administration, secretarial, HR, IT etc.

Most APC candidates will have come across the key concepts of Business Planning – knowingly or not – at some point during their graduate studies. Some of the largest employers may also offer on-line management training modules. Alternatively nothing stops you from picking up a basic book on business management to brush on your knowledge in strategy, organisational structures, market analysis, etc

I also strongly recommend you to read the  RICS Practice Management Guidelines   to understand how business planning is relevant to surveyors. It has now been withdrawn but we have saved a copy for you!

Those working in the largest companies may recognise some of the tools used by their employers and gain an understanding of why those are in place. Those working in small practices or as self-employed may find very useful advice to grow their business acumen.

Potential APC Questions

Due to time constraints, assessors will only have time to ask you a few questions on Business Planning. As a minimum they will expect you to know what a business plan is, be familiar with your company’s business plan and business model, and understand how you can contribute to the achievement of your company’s corporate objectives.

If you are applying under the Senior Professional Route (SPA), assessors will expect you to have a detailed understanding of the development and implementation of your company’ s business plan.

Some very classic questions would be;

• What is a business plan? What do you find in a business plan?
• Can you tell us about your company’s current business plan?
• What is your company’s management structure / business model?
• What are your company’s values?
• What tools does your company use to manage its business?
• How do you ensure that you contribute to the achievement of your company’s objectives / business plan?
• What is contained within an appointment document? What are your company’s terms of business?
• What is the relevance of a SWOT or PEST analysis to business planning?

Some points that you will have stated in your Summary of Experience may trigger some questions more specific to your experience and personal knowledge .

For example you may state in your Summary of Experience that you have studied Porter’s Five Forces Model, SWOT analysis and PEST analysis as part of a business module at University. This may lead the APC assessors to ask you to explain what they are and to give an example specific to your company.

Business Planning is a crucial competency for those considering setting up their own practice or progressing to a management role after attainment of the MRICS status. I therefore recommend that you do not neglect it, both for your APC and future career development.

Familiarise yourself with your company’s business plan and its management structure and tools. Consider how you personally contribute to achieving its objectives (‘achievement of corporate objectives’ is contained within the definition of this competency). This may be by completing your timesheets and expenses in a timely manner or assessing your own competences and planning your CPD’s to acquire the relevant skills.

Make sure that you understand how to prepare a business plan and what it should look like.

All our past APC candidates will give you the same advice: do not underestimate the time required to revise (learn?) for your APC! It will easily take you 3 months of solid studying every evening.

To make this task a little easier, APC Support Ltd offer on-demand revision webinars covering all the technical and mandatory competencies in Quantity Surveying, Built Infrastructure, Building Surveying, Building Control, Project Management and Facilities Management.

Alternatively, we offer face-to-face training for corporate clients across the UK. Please e-mail us at [email protected] to discuss your requirements.

All the modules are recorded and will provide you with over 30 hours of formal CPD. You can attend them on a pay-as-you-go basis or subscribe to our unlimited revision package .

Best of luck!

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This entry was posted in Mandatory Competencies , Uncategorized and tagged APC , business planning , coaching , Experience , Mandatory competencies , mentoring , Record of Experience , RICS , Summary of Experience , support , tips .

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• May 8, 2017

Hot Topic Highlight - Business Planning

Building a better you

Property Elite’s sole aim is to build better property professionals - supporting your career every step of the way, whether you are an AssocRICS or RICS APC candidate or a MRICS or FRICS Chartered Surveyor simply seeking engaging CPD.

We provide a wide range of training and support, so why not find out more on our website about how we might be able to support you? We work with candidates across all RICS APC and AssocRICS pathways, routes to assessment and geographic regions.

Don’t forget to sign up online for your free 15 minute AssocRICS or RICS APC consultation, including a review of your referral report if you have been referred. You can also book your bespoke training or support services directly through our web shop.

Not sure about signing up? Make sure you read what our recent successful candidates have to say in our Testimonials.

What is today's blog about?

In this blog article, we will take a top-level look at what you need to do for your RICS APC, covering the mandatory competency; business planning, as well as looking at RICS requirements and legislation.

You can also listen to our CPD podcast on Anchor for more free AssocRICS and RICS APC training and support.

Why is this relevant?

This is a common theme of questioning within the RICS APC, particularly in relation to mandatory competence; conduct rules, ethics and professional practice. It’s also important to understand the business in which you work, plus you may want to work for yourself in the future.

What do I need to do?

Firstly, you need to establish whether there is market demand for your service. Detailed market research will reveal whether there is a gap in the market or whether you could create a new market. Looking at the competition is important to work out things you like, things you don’t and how you could do things better.

Ask yourself; what problem are you solving and why does your solution makes your business unique?

You need to decide how to efficiently structure your business depending on your objectives and ownership structure. Common structures include being a sole trader, limited liability partnership (LLP) or limited company. Also, how will your fund your venture and will you require external sources of finance, e.g. bank or venture capital?

This will form the basis of your business plan. You will also need to think about branding, marketing and forecasting cash flows.

What are the RICS requirements?

Being a RICS regulated firm demonstrates to clients that you are at the top of your game; ethical, trustworthy and transparent. It is the gold standard within the property industry and most clients will expect that their advisors are regulated firms. To benefit from being regulated, you would need to submit a firm details form to the RICS. There is no cost to doing so.

After you become regulated, you must comply with the RICS Rules of Conduct for Firms. These include a number of mandatory requirements such as:

Having adequate Professional Indemnity Insurance (PII)

Complying with regulations for holding clients’ money

Having a written Complaints Handling Procedure 

Ensuring that your staff receive adequate training to enable them to act competently

What legislation is relevant?

You also need to consider various statutory requirements:

Business Names Act 1985

Companies Act 1985

2017 Money Laundering Regulations

Consumer Credit Act 1974 (for certain activities)

Financial Services and Marketing Act 2000 (for certain activities)

If you intend to employ staff, then you will also need to consider relevant employment legislation. 

Setting up a new business can be a minefield of red tape with an endless ‘to do list’ to get you to day 1 of trading. However, it is also a highly rewarding process which helps you to turn your passion and dream into a solid reality.

Having an appreciation of the process is essential for the APC, but it will also stand you in good stead to become a better property professional in the future.

How can we help?

Head to our blog archive to access even more free CPD and AssocRICS and RICS APC training and support.

Download your free AssocRICS and RICS APC resources, including e-books and revision quizzes.

Find out more about our bespoke AssocRICS and RICS APC training and support, before booking your free 15 minute consultation and signing up for your services online.

Stay tuned for our next blog post to help build a better you

N.b. Nothing in this article constitutes legal or financial advice.

• Business Planning

CONSTRUCTION JOURNAL

Mastering the Sustainability APC competency

APC candidates must have a solid understanding of the Sustainability competency so they can help the profession face growing challenges

• Susan Hanley

15 June 2019

Sustainability

Sustainability is a mandatory competency to Level 1 across all APC pathways, therefore candidates must 'demonstrate knowledge and understanding of why and how sustainability seeks to balance economic, environmental and social objectives at global, national and local levels in the context of land, property and the built environment'.

• examples of sustainable technologies and renewable energy sources, as well as the way they operate and can be integrated
• examples of sustainable design and its effect on properties
• costs, including taxation, operational and maintenance costs and lifecycle costs.
• 'At university I learnt about the three pillars of sustainability.'
• 'Through work experience I have gained an understanding of sustainable technologies such as ...'
• 'I attended a course that identified the effect of Building Regulations on reducing emissions in the residential sector.'
• 'Through structured reading, I am aware of the systems that are used to measure sustainability.'

Start your research with RICS guidance, such as the Whole life carbon assessment for the built environment professional statement. There are numerous articles on sustainability in Modus, the RICS journals and other industry publications.

'You should be aware of materials and technologies used in sustainable building, and of how sustainability is measured'

To judge whether or not such reading would be suitable for your summary of experience or CPD record, you should try to verbalise your learning – being specific can help you recall your content at final assessment.

Once you have drafted your summary of experience in line with competency requirements and logged relevant CPD, you should consider the final assessment. A CPD entry or part of your summary of experience on reading an article may prompt a question such as 'Tell me about your learning outcome from what you read'. Identifying a more specific learning outcome means assessors can focus the question: 'I see you read an article on the impact of building information modelling on sustainability. Tell me about this.'

Although you may be asked direct questions on mandatory competencies, you also need to be aware they can be covered during questioning on other technical competencies or your case study, so make sure you have good knowledge of sustainable practices relevant to your sector, and refresh yourself on your learning outcomes and summary of experience.

With more than 40 per cent of the UK's carbon footprint attributed to the built environment, knowledge of the ways the profession can raise awareness and tackle this is crucial. This competency is just the first step.

Susan Hanley FRICS is director of the APC Academy and RICS regional training adviser for Scotland [email protected]

Related competencies include: Sustainability

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What are the three levels of business management?

• Corporate Level
• Management Level
• Operational Level

What is a business plan?

A document that defines the business objectives and suggests steps to be taken to realise the business strategy over the next 3 years.

Components of a Business Plan: • Division of the business into service type or client segment • Financial performance targets • Plan business opportunities and allocate staff resource • Budgeting and cash forecasting money in vs. money out to understand what you can afford to pay because you estimate what you will earn • Plan business opportunities, identify the resource required.

A business plan could help to: • Seek funding, • To gain new instructions, new clients, new customers • To help focus on key priorities • To allow the organisation to respond to change • For budgeting, and • To set targets for staff.

What are the business objectives of your company?

• To develop and grow the business sustainably in the sectors:

How do you contribute to business planning within your company?

• By preparing responses to invitations to tender.
• I took part in a tender interview for Project Management services for development works at the Britannia Leisure centre, Hackney .

How do you manage your time so that you do not work beyond your fee allowance?

Recording my time weekly in timesheets spent against each job allows my workload to be reviewed by senior managers in monthly team meetings.

Does the RICS have a business plan?

Yes the current plan covers the three years from 2014-2017:

Our primary focus over the next three years

Does the RICS have a Corporate Strategy?

Yes, the current strategy covers 2012 to 2017.

It sets out long term strategic goals of the organisation.

N1. What should you do when starting a business?

Create a Business Plan, such as a 3 – 5 year business plan.

N2. What is a business plan?

A formal statement of the business goals, how they are obtainable and the plan for reaching these goals.

N3. Why would you create a business plan?

• To help achieve funding.
• Set business objectives.
• Create a business direction.

N4. What would you expect to be included within this business plan?

• Method Statement.
• Goals and Objectives.
• SWOT analysis.
• Key Performance Indicators.

N5. What is a Mission Statement?

A formal summary of the company aims and values.

N6. What is a SWOT analysis?

internal study undertaken by a business to identify its strengths, weaknesses, opportunities and threats.

N7. What goals and objectives would you likely see?

• Expected profit margin.
• Expected Turnover.
• Markets the company are looking to move into.

N8. What is a Key Performance Indicator?

A measureable value to determine the success of project/venture.

N9. How is a business plan laid out?

• Executive summary.
• Financial Forecasts.
• Management team.
• Description of business opportunity.
• Market and Sales Strategy.

N10. What is Natta’s 5 year business plan?

• £60,000,000.00 turnover by 2018.
• Build the company’s main-contracting business, i.e. more Turn Key residential and care home builds.
• Maintain Health and Safety Record.
• Obtain three new clients a year.

N11. Why is Market Analysis important?

Increase sales through identifying areas of strength, and aligning these with opportunities.

N12. How does an up-to-date business plan help an organisation?

• Helps achieve funding.
• Market previous work to clients.
• Bring focus the company priorities.
• Allows staff to align their goals with the company’s.
• Help set budgets.

N13. In terms of Business Planning, how does your management ensure that you make a profit?

• Regular reporting.
• Forward planning.
• Accounting systems to track all costs.

N14. What is a PESTLE Analysis?

• Technological.
• Environmental.

Decks in APC Mandatory Class (10):

• Level 3 Conduct Rules, Ethics And Professional Practice
• Level 2 Health And Safety
• Level 2 Client Care
• Level 2 Communication And Negotiation
• Level 1 Accounting
• Level 1 Business Planning
• Level 1 Conflict Avoidance
• Level 1 Data Management
• Level 1 Sustainability
• Level 1 Team Working
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Business Planning - Introduction

Last updated 22 Mar 2021

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The business plan sets out how the owners/managers of a business intend to realise its objectives. Without such a plan a business is likely to drift.

The business plan serves several purposes:it

(1) enables management to think through the business in a logical and structured way and to set out the stages in the achievement of the business objectives.

(2) enables management to plot progress against the plan (through the management accounts)

(3) ensures that both the resources needed to carry out the strategy and the time when they are required are identified.

(4) is a means for making all employees aware of the business's direction (assuming the key features of the business plan are communicated to employees)

(5) is an important document for for discussion with prospective investors and lenders of finance (e.g. banks and venture capitalists).

(6) links into the detailed, short-term, one-year budget.

The Link Between the Business Plan and the Budget

A budget can be defined as "a financial or quantitative statement", prepared for a specific accounting period (typically a year), containing the plans and policies to be pursued during that period.

The main purposes of a budget are:

(1) to monitor business unit and managerial performance (the latter possibly linking into bonus arrangements)

(2 )to forecast the out-turn of the period's trading (through the use of flexed budgets and based on variance analyses)

(3 )to assist with cost control.

Generally, a functional budget is prepared for each functional area within a business (e.g. call-centre, marketing, production, research and development, finance and administration). In addition, it is also normal to produce a "capital budget" detailing the capital investment required for the period, a "cash flow budget", a "stock budget" and a "master budget", which includes the budgeted profit and loss account and balance sheet.

Preparing a Business Plan

A business plan has to be particular to the organisation in question, its situation and time. However, a business plan is not just a document, to be produced and filed. Business planning is a continuous process. The business plan has to be a living document, constantly in use to monitor, control and guide the progress of a business. That means it should be under regular review and will need to be amended in line with changing circumstances.

Before preparing the plan management should: - review previous business plans (if any) and their outcome. This review will help highlight which areas of the business have proved difficult to forecast historically. For example, are sales difficult to estimate? If so why? - be very clear as to their objectives - a business plan must have a purpose - set out the key business assumptions on which their plans will be based (e.g. inflation, exchange rates, market growth, competitive pressures, etc.) - take a critical look at their business. The classical way is by means of the strengths-weaknesses-opportunities-threats (SWOT) analysis, which identifies the business's situation from four key angles. The strategies adopted by a business will be largely based on the outcome of this analysis.

Preparing the Budget

A typical business plan looks up to three years forward and it is normal for the first year of the plan to be set out in considerable detail. This one-year plan, or budget, will be prepared in such a way that progress can be regularly monitored (usually monthly) by checking the variance between the actual performance and the budget, which will be phased to take account of seasonal variations.

The budget will show financial figures (cash, profit/loss working capital, etc) and also non-financial items such as personnel numbers, output, order book, etc. Budgets can be produced for units, departments and products as well as for the total organisation. Budgets for the forthcoming period are usually produced before the end of the current period. While it is not usual for budgets to be changed during the period to which they relate (apart from the most extraordinary circumstances) it is common practice for revised forecasts to be produced during the year as circumstances change.

A further refinement is to flex the budgets, i.e. to show performance at different levels of business. This makes comparisons with actual outcomes more meaningful in cases where activity levels differ from those included in the budget.

What Providers of Finance Want from a Business Plan

Almost invariably bank managers and other providers of finance will want to see a business plan before agreeing to provide finance. Not to have a business plan will be regarded as a bad sign. They will be looking not only at the plan, but at the persons behind it. They will want details of the owner/managers of the business, their background and experience, other activities, etc. They will be looking for management commitment, with enthusiasm tempered by realism. The plan must be thought through and not be a skimpy piece of work. A few figures on a spreadsheet are not enough.

The plan must be used to run the business and there must be a means for checking progress against the plan. An information system must be in place to provide regular details of progress against plan. Bank managers are particularly wary of businesses that are slow in producing internal performance figures. Lenders will want to guard against risk. In particular they will be looking for two assurances:

(1) that the business has the means of making regular payment of interest on the amount loaned, and

(2) that if everything goes wrong the bank can still get its money back (i.e. by having a debenture over the business's assets). Forward-looking financial statements, particularly the cash flow forecast, are therefore of critical importance. The bank wants openness and no surprises. If something is going wrong it does not want this covered up, it wants to be informed - quickly.

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• Corporate planning
• Business plan

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The MoSCoW Method

Understanding project priorities.

By the Mind Tools Content Team

(Also Known As MoSCoW Prioritization and MoSCoW Analysis)

You probably use some form of prioritized To-Do List to manage your daily tasks. But what happens when you're heading up a project that has various stakeholders, each of whom has a different opinion about the importance of different requirements? How do you identify the priority of each task, and communicate that to team members, stakeholders and customers alike?

This is when it's useful to apply a prioritizing tool such as the MoSCoW method. This simple project-management approach helps you, your team, and your stakeholders agree which tasks are critical to a project's success. It also highlights those tasks that can be abandoned if deadlines or resources are threatened.

In this article, we'll examine how you can use the MoSCoW method to prioritize project tasks more efficiently, and ensure that everyone expects the same things.

What Is the MoSCoW Method?

The MoSCoW method was developed by Dai Clegg of Oracle® UK Consulting in the mid-1990s. It's a useful approach for sorting project tasks into critical and non-critical categories.

MoSCoW stands for:

• Must – "Must" requirements are essential to the project's success, and are non-negotiable. If these tasks are missing or incomplete, the project is deemed a failure.
• Should – "Should" items are critical, high-priority tasks that you should complete whenever possible. These are highly important, but can be delivered in a second phase of the project if absolutely necessary.
• Could – "Could" jobs are highly desirable but you can leave them out if there are time or resource constraints.
• Would (or "Won't") – These tasks are desirable (for example, "Would like to have…") but aren't included in this project. You can also use this category for the least critical activities.

The "o"s in MoSCoW are just there to make the acronym pronounceable.

Terms from Clegg, D. and Barker, R. (1994). ' CASE Method Fast-Track: A RAD Approach ,' Amsterdam: Addison-Wesley, 1994. Copyright © Pearson Education Limited. Reproduced with permission.

People often use the MoSCoW method in Agile Project Management . However, you can apply it to any type of project.

MoSCoW helps you manage the scope of your project so that it isn't overwhelmingly large. It is particularly useful when you're working with multiple stakeholders, because it helps everyone agree on what's critical and what is not. The four clearly labeled categories allow people to understand a task's priority easily, which eliminates confusion, misunderstanding, conflict, and disappointment.

For example, some project management tools sort tasks into "high-," "medium-," and "low-" priority categories. But members of the team might have different opinions about what each of these groupings means. And all too often, tasks are labeled "high" priority because everything seems important. This can put a strain on time and resources, and ultimately lead to the project failing.

Using the MoSCoW Method

Follow the steps below to get the most from the MoSCoW method. (This describes using MoSCoW in a conventional "waterfall" project, however the approach is similar with agile projects.)

Step 1: Organize Your Project

It's important that you and your team fully understand your objectives before starting the project.

Write a business case to define your project's goals, its scope and timeline, and exactly what you will deliver. You can also draw up a project charter to plan how you'll approach it.

Next, conduct a stakeholder analysis to identify key people who are involved in the project and to understand how its success will benefit each of them.

Step 2: Write out Your Task List

Once you understand your project's objectives, carry out a Gap Analysis to identify what needs to happen for you to meet your goals.

Step 3: Prioritize Your Task List

Next, work with your stakeholders to prioritize these tasks into the four MoSCoW categories: Must, Should, Could, and Would (or Won't). These conversations can often be "difficult," so brush up on your conflict resolution, group decision making and negotiating skills beforehand!

Rather than starting with all tasks in the Must category and then demoting some of them, it can be helpful to put every task in the Would category first, and then discuss why individual ones deserve to move up the list.

Step 4: Challenge the MoSCoW List

Once you've assigned tasks to the MoSCoW categories, critically challenge each classification.

Be particularly vigilant about which items make it to the Must list. Remember, it is reserved solely for tasks that would result in the project failing if they're not done.

Aim to keep the Must list below 60 percent of the team's available time and effort. The fewer items you have, the higher your chance of success.

Try to reach consensus with everyone in the group. If you can't, you then need to bring in a key decision-maker who has the final say.

Step 5: Communicate Deliverables

Your last step is to share the prioritized list with team members, key stakeholders and customers.

It's important that you communicate the reasons for each categorization, particularly with Must items. Encourage people to discuss any concerns until people fully understand the reasoning.

Zhen is a project manager for a large IT organization. She's working with a team of designers, marketers and developers to redesign a large corporate client's website.

At the initial meeting, each group has strong opinions about which tasks are most important to the project's success, and no one wants to give up their "high priority" objective.

For example, the marketing team is adamant that the new website should gather visitors' personal information, for use in future marketing campaigns.

Meanwhile, the designers are arguing that, while this is important, the site may be more successful if it had a professionally produced streaming video. They also want a feed streaming onto the website's home page from the client's social networking accounts.

The developers counter that the current prototype design won't translate well onto mobile devices, so the top priority is retrofitting the site so people can view it on these.

Zhen can see that, while each priority is important, they're not all critical to the project's success. She decides to use the MoSCoW method to help the group reach consensus on which task is truly "mission critical."

She starts with a key question: "If I came to you the night before rollout and the following task was not done, would you cancel the project?" This question helped everyone in the group drill down to the project's most important priority.

The group finally agreed on the following priorities:

• Must – The retrofit website must be easily viewable on mobile devices.
• Should – There should be a social networking stream included.
• Could – There could be a streaming video on the site to help users.
• Would – Personal information would be gathered for future marketing efforts, but not on this occasion.

The MoSCoW method helped everyone agree on what was truly important for the project's final success.

The MoSCoW method is a simple and highly useful approach that enables you to prioritize project tasks as critical and non-critical. MoSCoW stands for:

• Must – These are tasks that you must complete for the project to be considered a success.
• Should – These are critical activities that are less urgent than Must tasks.
• Could – These items can be taken off the list if time or resources are limited.
• Would – These are tasks that would be nice to have, but can be done at a later date.

The benefit of the MoSCoW approach is that it makes it easy for team members and key stakeholders to understand how important a task is for a project's success.

Apply This to Your Life

Try using the MoSCoW method to prioritize your daily tasks. Look at what you completed at the end of the day. Did prioritizing enable you to get more done?

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• Guide: MoSCoW Method

Daniel Croft

Daniel Croft is an experienced continuous improvement manager with a Lean Six Sigma Black Belt and a Bachelor's degree in Business Management. With more than ten years of experience applying his skills across various industries, Daniel specializes in optimizing processes and improving efficiency. His approach combines practical experience with a deep understanding of business fundamentals to drive meaningful change.

• Last Updated: September 24, 2023
• Learn Lean Sigma

The MoSCoW Method transcends being just a prioritization tool; it is a strategic approach for navigating the intricate decision-making in project management. This methodology excels by offering a structured framework, facilitating discussions among stakeholders to assess and align on the relative importance of various tasks and features in a project.

Central to MoSCoW is its acronym, denoting four priority categories – Must have, Should have, Could have, and Won’t have. This classification is crucial in managing stakeholder expectations, directing the project team’s focus towards critical elements, and charting a clear course for project advancement.

Table of Contents

What is the moscow method.

The MoSCoW method is used as a prioritization tool, but it is more than just that; it is also a strategic approach to handling complex decision-making processes that you can encounter in project management. This method shines by offering a structured framework for stakeholders to discuss, debate, and ultimately agree on the relative importance of different tasks or features within a project.

The uniqueness of the MoSCoW method is within its acronym, which represents four priority categories. Must have, Should have, Could have, and Won’t have. This structure is key to managing stakeholder expectations and ensuring that a project team focuses on the most crucial elements first, setting a clear path for project progression.

The MoSCoW Categories

In the ‘ Must have ‘ category, you find the key activities that are essential to your project . These are non-negotiable and pivotal for the project’s success. This category often comprises items that, if omitted, would make the project irrelevant or non-compliant with essential criteria like legal standards or core objectives.

Should Have

Moving to the ‘ Should have ‘ category, we encounter important elements that, while not critical to the project’s existence, greatly enhance its value and effectiveness . These are features that stakeholders strongly desire, and their inclusion could significantly enhance the project’s outcome . However, their absence wouldn’t label the project a failure.

The ‘ Could have ‘ category is where you place desirable but less critical elements . These are often enhancements that would be nice to include but aren’t vital to the project’s success . The inclusion of these elements is usually subject to resource availability and project timelines.

The ‘ Won’t have ‘ category is often misunderstood but is crucial for setting realistic boundaries. It includes elements that, although potentially beneficial, are beyond the scope of the current project phase or constraints. This clear demarcation helps manage expectations and focus on what’s achievable within the project’s constraints.

How to Apply the MoSCoW Method: A Step-by-Step Guide

Implementing the MoSCoW Method in a project requires a systematic approach, ensuring that all aspects of the project are considered and aligned with the prioritization framework. Here’s a detailed look into each step of implementing this method:

Step 1: Gather Requirements

The first step in the MoSCoW method requires gathering a list of the tasks , activities, features, or requirements you need to prioritize in your project. For this step, you should engage with all relevant stakeholders , including project sponsors, end-users, and technical teams. This ensures that the requirements reflect a wide range of perspectives and needs.

To help decide the categorize of each task in a later step you should understand the overall goals of the project . You will also need to gain an understanding of technical, business, time, and resource constraints right from the start. This helps in setting realistic expectations for what can be achieved.

Step 2: Categories Each Requirement

The next step is to, as a team with the relevant stakeholders, run a categorization session . Doing this with the stakeholders involved will help to gain buy-in and support for the project as well as a shared understanding of priorities. 

Each requirement’s placement in the MoSCoW categories should be a subject of discussion. Different stakeholders may have varying views on what is a ‘ Must have ‘ or ‘ Should have ‘, and these need to be reconciled.

For each decision, documenting the rationale behind the categorization can be valuable, especially for future reference or when explaining decisions to others not involved in the process.

Step 3: Review and Adjust

You will need to ensure the decisions of the categories are balanced and achievable within the scope once all are allocated. You may find that you still have too many must-haves and should-haves that either some activities need to be downgraded or a consideration to go back to decision-makers and create a case for more resources of time to achieve what is needed.

Step 4: Use as a Guiding Tool

You should continue to use the MoSCoW prioritization to inform decisions throughout the project lifecycle. This helps maintain focus on what’s most important . Prioritization can guide where to allocate resources and effort, especially when under constraints.

Step 5: Update as Necessary

Finally, regularly revisit the MoSCoW categorization , especially after major milestones or significant changes in the project environment. Also, be prepared to adjust the priorities in response to new information, stakeholder feedback, or changes in the external environment.

Implementing the MoSCoW Method is an exercise in strategic planning and adaptive management. It begins with a comprehensive gathering of project requirements, engaging a broad spectrum of stakeholders to ensure a multifaceted view of the project’s needs. The heart of the process lies in the collaborative categorization of these requirements, balancing differing perspectives to establish a shared priority framework.

As the project progresses, this method serves as a dynamic guide, directing resources and decision-making effectively. Regularly revisiting and adjusting these priorities ensures the project stays aligned with evolving objectives and constraints, making MoSCoW an indispensable tool for successful project management.

• Kuhn, J., 2009. Decrypting the MoSCoW analysis.   The workable, practical guide to Do IT Yourself ,  5 .
• Ahmad, K.S., Ahmad, N., Tahir, H. and Khan, S., 2017, July. Fuzzy_MoSCoW: A fuzzy based MoSCoW method for the prioritization of software requirements. In  2017 International Conference on Intelligent Computing, Instrumentation and Control Technologies (ICICICT)  (pp. 433-437). IEEE.

Q: What types of projects is the MoSCoW method best suited for?

A: The MoSCoW method is versatile and can be used for various types of projects, ranging from software development and website redesign to manufacturing and logistics. It’s particularly useful for projects with multiple stakeholders and those that require a clear understanding of task priority.

Q: How often should the MoSCoW list be reviewed and updated?

A: The frequency of reviewing the MoSCoW list depends on the project’s complexity and how often its circumstances change. For fast-paced projects, a weekly or bi-weekly review might be necessary. For more stable projects, a monthly review could suffice.

Q: Can the MoSCoW method be integrated with other project management techniques?

A: Absolutely! The MoSCoW method can be used in conjunction with other project management methodologies like Agile, Scrum, or Lean Six Sigma. It serves as a prioritization tool that can easily be incorporated into other frameworks to make them even more effective.

Q: What should I do if stakeholders disagree on the categorization of tasks?

A: If there’s disagreement on task categorization, it’s useful to have a facilitated discussion to reach a consensus. You can also use a weighted scoring system to quantitatively assess each task’s importance, which can help in making more objective decisions.

Q: Are there any tools or software that can help in applying the MoSCoW method?

A: While the MoSCoW method can be applied using simple tools like whiteboards and Post-It notes, there are also specialized project management software that offer built-in MoSCoW categorization features. These tools can be particularly helpful for larger or more complex projects.

Daniel Croft is a seasoned continuous improvement manager with a Black Belt in Lean Six Sigma. With over 10 years of real-world application experience across diverse sectors, Daniel has a passion for optimizing processes and fostering a culture of efficiency. He's not just a practitioner but also an avid learner, constantly seeking to expand his knowledge. Outside of his professional life, Daniel has a keen Investing, statistics and knowledge-sharing, which led him to create the website learnleansigma.com, a platform dedicated to Lean Six Sigma and process improvement insights.

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MoSCoW Prioritization

What is moscow prioritization.

MoSCoW prioritization, also known as the MoSCoW method or MoSCoW analysis, is a popular prioritization technique for managing requirements. 

  The acronym MoSCoW represents four categories of initiatives: must-have, should-have, could-have, and won’t-have, or will not have right now. Some companies also use the “W” in MoSCoW to mean “wish.”

What is the History of the MoSCoW Method?

Software development expert Dai Clegg created the MoSCoW method while working at Oracle. He designed the framework to help his team prioritize tasks during development work on product releases.

You can find a detailed account of using MoSCoW prioritization in the Dynamic System Development Method (DSDM) handbook . But because MoSCoW can prioritize tasks within any time-boxed project, teams have adapted the method for a broad range of uses.

How Does MoSCoW Prioritization Work?

Before running a MoSCoW analysis, a few things need to happen. First, key stakeholders and the product team need to get aligned on objectives and prioritization factors. Then, all participants must agree on which initiatives to prioritize.

At this point, your team should also discuss how they will settle any disagreements in prioritization. If you can establish how to resolve disputes before they come up, you can help prevent those disagreements from holding up progress.

Finally, you’ll also want to reach a consensus on what percentage of resources you’d like to allocate to each category.

With the groundwork complete, you may begin determining which category is most appropriate for each initiative. But, first, let’s further break down each category in the MoSCoW method.

Start prioritizing your roadmap

Moscow prioritization categories.

1. Must-have initiatives

As the name suggests, this category consists of initiatives that are “musts” for your team. They represent non-negotiable needs for the project, product, or release in question. For example, if you’re releasing a healthcare application, a must-have initiative may be security functionalities that help maintain compliance.

The “must-have” category requires the team to complete a mandatory task. If you’re unsure about whether something belongs in this category, ask yourself the following.

If the product won’t work without an initiative, or the release becomes useless without it, the initiative is most likely a “must-have.”

2. Should-have initiatives

Should-have initiatives are just a step below must-haves. They are essential to the product, project, or release, but they are not vital. If left out, the product or project still functions. However, the initiatives may add significant value.

“Should-have” initiatives are different from “must-have” initiatives in that they can get scheduled for a future release without impacting the current one. For example, performance improvements, minor bug fixes, or new functionality may be “should-have” initiatives. Without them, the product still works.

3. Could-have initiatives

Another way of describing “could-have” initiatives is nice-to-haves. “Could-have” initiatives are not necessary to the core function of the product. However, compared with “should-have” initiatives, they have a much smaller impact on the outcome if left out.

So, initiatives placed in the “could-have” category are often the first to be deprioritized if a project in the “should-have” or “must-have” category ends up larger than expected.

4. Will not have (this time)

One benefit of the MoSCoW method is that it places several initiatives in the “will-not-have” category. The category can manage expectations about what the team will not include in a specific release (or another timeframe you’re prioritizing).

Placing initiatives in the “will-not-have” category is one way to help prevent scope creep . If initiatives are in this category, the team knows they are not a priority for this specific time frame. 

Some initiatives in the “will-not-have” group will be prioritized in the future, while others are not likely to happen. Some teams decide to differentiate between those by creating a subcategory within this group.

How Can Development Teams Use MoSCoW?

  Although Dai Clegg developed the approach to help prioritize tasks around his team’s limited time, the MoSCoW method also works when a development team faces limitations other than time. For example: 

Prioritize based on budgetary constraints.

What if a development team’s limiting factor is not a deadline but a tight budget imposed by the company? Working with the product managers, the team can use MoSCoW first to decide on the initiatives that represent must-haves and the should-haves. Then, using the development department’s budget as the guide, the team can figure out which items they can complete. 

Prioritize based on the team’s skillsets.

A cross-functional product team might also find itself constrained by the experience and expertise of its developers. If the product roadmap calls for functionality the team does not have the skills to build, this limiting factor will play into scoring those items in their MoSCoW analysis.

Prioritize based on competing needs at the company.

Cross-functional teams can also find themselves constrained by other company priorities. The team wants to make progress on a new product release, but the executive staff has created tight deadlines for further releases in the same timeframe. In this case, the team can use MoSCoW to determine which aspects of their desired release represent must-haves and temporarily backlog everything else.

What Are the Drawbacks of MoSCoW Prioritization?

  Although many product and development teams have prioritized MoSCoW, the approach has potential pitfalls. Here are a few examples.

1. An inconsistent scoring process can lead to tasks placed in the wrong categories.

  One common criticism against MoSCoW is that it does not include an objective methodology for ranking initiatives against each other. Your team will need to bring this methodology to your analysis. The MoSCoW approach works only to ensure that your team applies a consistent scoring system for all initiatives.

Pro tip: One proven method is weighted scoring, where your team measures each initiative on your backlog against a standard set of cost and benefit criteria. You can use the weighted scoring approach in ProductPlan’s roadmap app .

2. Not including all relevant stakeholders can lead to items placed in the wrong categories.

To know which of your team’s initiatives represent must-haves for your product and which are merely should-haves, you will need as much context as possible.

For example, you might need someone from your sales team to let you know how important (or unimportant) prospective buyers view a proposed new feature.

One pitfall of the MoSCoW method is that you could make poor decisions about where to slot each initiative unless your team receives input from all relevant stakeholders. 

3. Team bias for (or against) initiatives can undermine MoSCoW’s effectiveness.

Because MoSCoW does not include an objective scoring method, your team members can fall victim to their own opinions about certain initiatives. 

One risk of using MoSCoW prioritization is that a team can mistakenly think MoSCoW itself represents an objective way of measuring the items on their list. They discuss an initiative, agree that it is a “should have,” and move on to the next.

But your team will also need an objective and consistent framework for ranking all initiatives. That is the only way to minimize your team’s biases in favor of items or against them.

When Do You Use the MoSCoW Method for Prioritization?

MoSCoW prioritization is effective for teams that want to include representatives from the whole organization in their process. You can capture a broader perspective by involving participants from various functional departments.

Another reason you may want to use MoSCoW prioritization is it allows your team to determine how much effort goes into each category. Therefore, you can ensure you’re delivering a good variety of initiatives in each release.

What Are Best Practices for Using MoSCoW Prioritization?

If you’re considering giving MoSCoW prioritization a try, here are a few steps to keep in mind. Incorporating these into your process will help your team gain more value from the MoSCoW method.

1. Choose an objective ranking or scoring system.

Remember, MoSCoW helps your team group items into the appropriate buckets—from must-have items down to your longer-term wish list. But MoSCoW itself doesn’t help you determine which item belongs in which category.

You will need a separate ranking methodology. You can choose from many, such as:

• Weighted scoring
• Value vs. complexity
• Buy-a-feature
• Opportunity scoring

For help finding the best scoring methodology for your team, check out ProductPlan’s article: 7 strategies to choose the best features for your product .

2. Seek input from all key stakeholders.

To make sure you’re placing each initiative into the right bucket—must-have, should-have, could-have, or won’t-have—your team needs context. 

At the beginning of your MoSCoW method, your team should consider which stakeholders can provide valuable context and insights. Sales? Customer success? The executive staff? Product managers in another area of your business? Include them in your initiative scoring process if you think they can help you see opportunities or threats your team might miss. 

3. Share your MoSCoW process across your organization.

MoSCoW gives your team a tangible way to show your organization prioritizing initiatives for your products or projects. 

The method can help you build company-wide consensus for your work, or at least help you show stakeholders why you made the decisions you did.

Communicating your team’s prioritization strategy also helps you set expectations across the business. When they see your methodology for choosing one initiative over another, stakeholders in other departments will understand that your team has thought through and weighed all decisions you’ve made. 

If any stakeholders have an issue with one of your decisions, they will understand that they can’t simply complain—they’ll need to present you with evidence to alter your course of action.  

Related Terms

2×2 prioritization matrix / Eisenhower matrix / DACI decision-making framework / ICE scoring model / RICE scoring model

Prioritizing your roadmap using our guide

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Ukraine war latest: Russia and China issue nuclear war warning - as Putin holds crucial talks with Xi amid fierce fighting in Ukraine'

Vladimir Putin is in China, where he is meeting with president Xi Jinping less that a week after launching a fresh incursion into the Kharkiv region of Ukraine. The major state visit has already seen Mr Putin greeted with full military honours, as Mr Xi talked up their "friendship".

Thursday 16 May 2024 13:45, UK

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• Putin and Xi to discuss 'new directions' for cooperation as pair hold talks in Beijing
• Russia and China warn against nuclear war - and agree to expand military drills
• Were Putin and Xi really pictured with their 'nuclear footballs'?
• China will play role in European peace, says Xi
• Analysis: Great power politics on display in China visit
• The latest from the battlefield - as Russia launches fresh attacks on border area
• Russia claims to arrest Ukrainian agents carrying out Crimean bridge reconnaissance
• Live reporting by Brad Young

Ask a question or make a comment

Vladimir Putin and Xi Jinping announced their new "new era" strategic partnership agreement in a statement topping 7,000 words. 

Earlier, we took you through the key points regarding the Ukraine war (see our 10.52am post), but there were other important sections regarding international relations.

Following are the key points:

Ukraine war: "The Russian side positively assesses China's objective and unbiased position on the Ukrainian issue."

China "supports the efforts of the Russian side to ensure security and stability, national development and prosperity, sovereignty and territorial integrity, and opposes outside interference in Russia's internal affairs."

United States: Russia and China have serious concerns at "US attempts to violate the strategic balance", including the development of high-precision non-nuclear weapons for potential "decapitation" strikes, and plans to deploy ground-based missiles in the Asia-Pacific and European regions.

North Korea:  "The parties oppose the actions of intimidation in the military sphere carried out by the United States and its allies, which provoke further confrontation with the DPRK."

Industry: Develop civil aircraft construction, shipbuilding, carmakers, machine tool industry, electronics industry, metallurgy, iron ore mining, chemical industry and forestry.

Agriculture: Expand mutual access of agricultural products, increase the volume of trade in soybeans, pig breeding, water production, grain, fat and oil, fruits and vegetables, nuts and other products.

Technology:  Develop cooperation in information and communication technologies, including artificial intelligence, software, and network and data security.

Nuclear: Deepen partnership in peaceful nuclear energy, including thermonuclear fusion, fast neutron reactors and the closed nuclear fuel cycle.

Russia launched its newest border incursion with the goal of capturing two specific settlements, a Russian-installed official said, quoted by RIA state news agency.

The village of Lyptsi, located 19 miles north of Kharkiv city, where Volodymyr Zelenskyy is currently visiting, and the town of Vovchansk, 30 miles further east, where combat has reportedly been fiercest.

"The most important city, which is now on the verge of complete liberation, is undoubtedly Vovchansk," said Vitaly Ganchev, a Russian-installed official in Ukraine.

"Next is the settlement of Lyptsi - our guys are already on the outskirts. Work is beginning to liberate it, aviation and artillery are working constantly, they do not stop," he said. 

Ahead of talks between Vladimir Putin and Xi Jinping, the two leaders were seen being tailed by two officials carrying bags.

Pictures and videos of the pair prompted social media speculation that the leaders were showing off their nations' so-called "nuclear footballs" - potentially as part of some form of signalling to the West.

These are the briefcases which travel with the leaders of nuclear powers at all times, and contain the codes and communication devices needed to authorise the use of nuclear weapons

However, Sky News military analyst Professor Michael Clarke said it was "unlikely" the bags being carried by officials walking behind the Chinese and Russian presidents contained the tools necessary for ordering a nuclear strike.

"The people carrying the nuclear briefcases, or nuclear footballs, as they are often known, will generally seek to remain as unobtrusive as possible," he said.

"We certainly can't rule out the idea that it could be part of some kind of clumsy gesture, but there are other more likely explanations.

"For example, the two leaders obviously do not share the same language, so they will always have translators close by - and it could well just be officials carrying documents that will be needed for their meetings.

"The other thing to note is that while Putin has certainly been known to engage in thinly veiled nuclear threats, the Chinese are far less keen on that kind of rhetoric, so it would seem quite unlikely that they would want to get involved in that kind of crude signalling."

Russia's nuclear briefcase is traditionally carried by a naval officer. Known as the "Cheget" (named after Mount Cheget in the Caucasus Mountains), the briefcase is rarely filmed.

Last year, footage was shown of Mr Putin in Beijing accompanied by uniformed officers carrying the device.

Former Russian president Dmitry Medvedev has praised Slovakian prime minister Robert Fico, who was wounded in an attempted assassination yesterday.

He said there were few politicians like Mr Fico in Europe and that he had "reasonable" positions regarding Russia. 

Mr Fico is fighting for his life after in hospital after being shot multiple times, Slovak officials said.

The divisive leader returned to power last year on a pro-Russian, anti-American message.

His government has already halted arms deliveries to Ukraine, and has plans to amend the penal code to eliminate a special anti-corruption prosecutor and to take control of public media.

His critics worry that he will lead Slovakia — a nation of 5.4 million that belongs to NATO — down a more autocratic path.

Vladimir Putin sent a message to Slovak president Zuzana Caputova, expressing his support and wishing the prime minister a fast and full recovery.

"This atrocious crime cannot be justified. I know Robert Fico as a courageous and strong-willed person. I truly hope these personal qualities will help him overcome this harsh situation."

Volodymyr Zelenskyy also denounced the attack: "Every effort should be made to ensure that violence does not become the norm in any country, form or sphere."

Volodymyr Zelenskyy has travelled to the city of Kharkiv, following a fresh Russian incursion across Ukraine's northeastern border into the region on Friday.

He described the situation as extremely difficult though "controlled in general", adding he held a meeting with the military.

Ukraine said its forces were fighting Russian troops in northern districts of Vovchansk, 40 miles from Kharkiv.

The capture of Vovchansk, three miles from the border, would be Russia's most significant gain on this second front.

"The enemy's plans to penetrate deeper into the town of Vovchansk and gain a foothold there were thwarted," the Ukrainian general staff said in a statement. 

Military spokesperson Nazar Voloshyn said Ukrainian troops were focused on trying to prevent Russian forces establishing footholds in the region's north. "Our units... detect separate enemy units, the location of artillery deployments, and inflict damage to prevent the enemy from accumulating forces and equipment in the northern part of the town of Vovchansk."

Russia and China have released a joint statement expressing concern for the increased risks resulting from aggravation of relations between nuclear powers.

There can be no winners in a nuclear war, Russian state media cited the statement as saying.

The two nations noted concern about the participation of Australia in US plans for extended nuclear deterrence, it read.

Russia and China are against a drawn out conflict in Ukraine and it is possible it could transition to an uncontrollable phase, the statement warned.

Moscow and Beijing will further deepen trust and cooperation in the military field, the statement said, adding they will expand the scale of joint military drills.

China said it supports the efforts of the Russian side to ensure sovereignty and territorial integrity.

Both nations opposed attempts by certain countries to use space for military confrontation, the statement read.

Russia and China condemn initiatives to seize the assets and property of foreign states, Russia state media.

On the day of their marriage, Mariia Alieksieievych's husband, Serhii, was holding out at the Azovstal steelworks in Mariupol, the last bastion of resistance in the besieged southern port city.

Speaking two years since their husbands' surrender, the wives of some Mariupol soldiers held as prisoners of war (PoW) have spoken to Sky News.

They told of the limbo they live in while the whereabouts of their husband's remain unknown.

Read on here...

The Ukrainian military says it has forced Russian troops to reduce the tempo of their offensive in the northern Kharkiv region, where they launched a fresh incursion on Friday.

Combat continues in the town of Vovchansk but the situation is under control, it said.

This echoes analysis made by experts at the Institute for the Study of War (ISW), who said Russian forces have advanced eight kilometres from the border.

"Russian forces have been able to make tactical advances in northern Kharkiv Oblast since 10 May in areas where Ukrainian forces purposefully did not establish significant defensive lines," the ISW said.

Kharkiv administration officials said yesterday that Russia's initial gains were the result of shelling across the border making it impossible to build fortifications within five kilometres of it.

Western prohibitions on the use of Western weapons to attack Russian soil makes fixed defensive positions close to the border "vulnerable and possibly indefensible," the ISW said.

The think tank said Russia appears to be prioritising the creation of a "buffer zone" at the border - on the other side of which is Belgorod - over a penetrating deeper into the Kharkiv region.

Russian forces have continued to mount offensive manoeuvres across much of the front line.

In the northeast, troops attacked Ukrainian positions on the Kupiansk front 30 times and the Lyman front five times, reported Ukrainska Pravda.

In central eastern areas, there were another 109 attempts to break through Ukrainian defences across the Sivershchyna, Kramatorsk, Pokrovsk, Vremivka and Kuakhove fronts.

To the south, Russian soldiers continued to try and drive Ukrainian forces from the Dnipro River's east bank.

Here are the latest updates from governors in some of the major Ukrainian regions on the frontline.

Rocket fire hit a five-storey building, a farm and a doctor's surgery in the region, according to governor Oleh Syniehubov.

A 50-year-old man was killed, while nine people were injured.

Ukrainian troops repelled four Russian attacks since this morning from the border area, where Moscow launched a fresh incursion on Friday.

In the 24 hours ending at 6am this morning, the towns of Mykhailivka, Antonivka and Stanislav and the city of Kherson came under fire, said governor Oleksandr Prokudin.

Residential areas were targeted, including 12 high-rise buildings and 11 houses, a nursery and medical institutions, injuring 19 people.

Dnipropetrovsk

Russian artillery shelled the Nikopol region, but there were no casualties, said governor Serhiy Lysak.

Attacks on Novogrodivska have killed two people, while houses were damaged or destroyed in the Kramatorsk district, said the head of the Donetsk regional military administration, Vadim Filashkin.

In Bakhmut and Toretsk, 28 houses and three high-rise buildings were damaged.

Zaporizhzhia

Russian forces attacked near Robotyne four times, but no positions were lost, said Dmytro Lykhovii, spokesman for the Tavriia operational strategic group.

The Kremlin has dismissed a summit that Switzerland hopes will pave the way for a peace process in Ukraine as futile. 

More than 50 countries have signed up for the conference, due to be held June 15-16, and Switzerland aims to persuade China to attend.

Chinese attendance would "dignify" the  event but it would be ineffective if Moscow is not invited, Kremlin spokesman Dmitry Peskov said.

"Without Russia, discussing security issues that concern us is absolutely futile.

"Most likely, it will be just empty scholasticism with no prospect of getting at least some tangible result.

Swiss President Viola Amherd agreed to host the summit at the behest of Volodymyr Zelenskyy.

"A balanced approach by the Chinese may dignify any conference, from our point of view, but this will not add to the effectiveness of this particular event."

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