Riskiest Assumption Test (RAT): Why It’s a Better Framing Than Minimum Viable Product (MVP)
In the product management universe, the idea of MVP has been popularized and socialized a great deal. The intent behind this has always been noble. However, organizations often fall into the trap of using MVP as an excuse to keep building minimum products & features. Customers don’t spend $$ on minimum products & experiences.
Here’s why RAT is greater than MVP in terms of creating more clarity & reducing confusion:
1. “Riskiest” vs. “Minimum”
MVP tends to apply the lens of “reducing scope.” How can we trim the scope so much that we can launch something in a week or two? MVP can imply MINIMUM scope.
RAT, on the other hand, focuses on “reducing the risk” of an early-stage idea. How can we stack-rank all our unknowns & uncertainties and find & eliminate the RISKIEST ones?
2. “Assumption” vs. “Viable”
MVP thinking often applies the lens of “what’s easy to build” instead of “what’ll customers pay for.” As a result, MVP becomes more of an engineering discussion than a holistic business opportunity analysis.
RAT emphasizes that we should launch with the most QUESTIONABLE features rather than the easiest-to-build ones.
3️. “Test” vs. “Product”
Finally, (and unfortunately) MVP is often interchangeably used as a “v1 release”. It is too delivery focussed, and it almost assumes that we will keep launching fast-follow versions and that there are no chances of rolling it back and discarding the whole idea altogether.
RAT stresses the fact that it is a collection of TESTs and not a “product” until we know that it should be a product. RAT doesn’t assume this is a roadmap item that’s been committed. MVP does.
As stated by Marty Cagan, product teams should TEST usability risk, value risk, business viability risk, and feasibility risk. RAT gives us the clarity and framing to do exactly that before committing it to a roadmap.
If your goal is to sell a Tesla, validating your market with a skateboard won’t help. Testing the riskiest assumptions about the business model and feasibility will.
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