business manager partnerships business planning & development

What is a Partnership Development Manager?

Learn about the role of Partnership Development Manager, what they do on a daily basis, and what it's like to be one.

• What is a Partnership Development Manager
• How to Become
• Certifications
• Tools & Software
• LinkedIn Guide
• Interview Questions
• Work-Life Balance
• Professional Goals
• Partnership Development Manager Resumes
• Partnership Development Manager Cover Letters
• Partnership Development Manager Jobs

Start Your Partnership Development Manager Career with Teal

Definition of a Partnership Development Manager

What does a partnership development manager do, key responsibilities of a partnership development manager.

• Researching and identifying potential partners, including companies, organizations, or individuals, that align with the organization's strategic goals and target markets
• Developing and executing a comprehensive partnership strategy, including outreach plans, value propositions, and negotiation tactics
• Building and maintaining strong relationships with existing partners through effective communication, problem-solving, and proactive management
• Conducting market research and competitive analysis to identify emerging trends, opportunities, and potential threats related to partnerships
• Collaborating with cross-functional teams, such as sales, marketing, and product development, to ensure alignment and seamless integration of partnership initiatives
• Negotiating and structuring partnership agreements, including terms, conditions, and performance metrics, to ensure mutual benefit and long-term success
• Developing and implementing partner onboarding, training, and support programs to ensure successful partnership execution
• Monitoring and evaluating partnership performance against established goals and metrics, making data-driven decisions to optimize results
• Representing the organization at industry events, conferences, and networking opportunities to promote partnership opportunities and build brand awareness
• Staying up-to-date with industry trends, regulations, and best practices related to partnership development and management
• Providing strategic guidance and recommendations to leadership on partnership strategies, opportunities, and potential risks
• Mentoring and developing junior partnership development professionals, fostering a culture of continuous learning and professional growth

Day to Day Activities for Partnership Development Manager at Different Levels

Daily responsibilities for entry level partnership development managers.

• Researching and identifying potential partners aligned with organizational goals
• Conducting initial outreach and establishing communication with prospective partners
• Assisting in the preparation of partnership proposals and presentations
• Supporting the execution of partnership programs and initiatives
• Gathering and analyzing data on partnership performance metrics
• Attending industry events and networking to identify new partnership opportunities

Daily Responsibilities for Mid Level Partnership Development Managers

• Developing and implementing comprehensive partnership strategies
• Leading partnership negotiations and contract discussions
• Managing and mentoring partnership development team members
• Overseeing the execution and performance of partnership programs
• Analyzing partnership data to identify areas for optimization and growth
• Collaborating with cross-functional teams to align partnership efforts

Daily Responsibilities for Senior Partnership Development Managers

• Developing and overseeing the implementation of comprehensive partnership strategies
• Building and nurturing strategic relationships with key partners and stakeholders
• Collaborating with executive leadership to align partnership strategies with business goals
• Identifying and evaluating new partnership opportunities and models
• Leading and mentoring large partnership development teams across multiple initiatives
• Driving partnership innovation and best practices across the organization

Types of Partnership Development Managers

Strategic alliance partnership development manager, channel partnership development manager, technology partnership development manager, content and media partnership development manager, ecosystem partnership development manager, social impact partnership development manager, what's it like to be a partnership development manager , work environment, working conditions, how hard is it to be a partnership development manager, is a partnership development manager a good career path, faqs about partnership development managers, how do partnership development managers collaborate with other teams within a company, what are some common challenges faced by partnership development managers, what does the typical career progression look like for partnership development managers.

How To Become a Partnership Development Manager in 2024

Related Career Paths

Driving strategic partnerships and market opportunities for business growth and expansion

Building impactful alliances, driving growth through strategic collaborations and partnerships

Fostering strategic alliances, driving business growth through collaborative partnerships

Building strategic partnerships and driving revenue growth through effective channel management

Driving business growth and revenue through strategic sales leadership and client relationships

Fostering client relationships, driving sales growth and ensuring customer satisfaction

Partnership Business Development Manager

United States

Partnership Business Development Manager manages business development activities to identify, develop, and administer strategic partnerships with other organizations to realize key objectives, gain operational efficiencies, address unmet market needs, and create new customers and markets. Leads research activities to identify business opportunities, conduct due diligence, and develop plans and strategies for new alliances. Being a Partnership Business Development Manager negotiates with new partners to formalize alliances and relationships. Implements partnerships with stakeholders across the organization. Additionally, Partnership Business Development Manager establishes processes to track, measure, and analyze results and outcomes and evaluate alliances' value. Requires a bachelor's degree. Typically reports to a director. The Partnership Business Development Manager manages subordinate staff in the day-to-day performance of their jobs. True first level manager. Ensures that project/department milestones/goals are met and adhering to approved budgets. Has full authority for personnel actions. To be a Partnership Business Development Manager typically requires 5 years experience in the related area as an individual contributor. 1 - 3 years supervisory experience may be required. Extensive knowledge of the function and department processes.

Employers: Find Surveys For This Job

Employers: Job Description Management Tool

Employees: Get a Salary Increase

Years of Experience

Education Level

Company Size

• Business Development Manager
• Business Development Director
• Business Development Manager, Sr.
• Business Development Associate II
• Vice President of Business Development
• Partnership Business Development Director
• Partnership Business Development Associate
• Top Partnership Business Development Executive
• Partnership Business Development Senior Manager
• Partnership Business Development Senior Associate
• Partnership Business Development Manager Salaries with No Diploma
• Partnership Business Development Manager Salaries with a High School Diploma or Technical Certificate
• Partnership Business Development Manager Salaries with an Associate's Degree
• Partnership Business Development Manager Salaries with a Bachelor's Degree
• Partnership Business Development Manager Salaries with a Master's Degree or MBA
• Partnership Business Development Manager Salaries with a JD, MD, PhD or Equivalent
• Aerospace & Defense
• Biotechnology
• Business Services
• Construction
• Edu., Gov't. & Nonprofit
• Energy & Utilities
• Financial Services
• Hospitality & Leisure
• MFG Durable
• MFG Nondurable
• Pharmaceuticals
• Retail & Wholesale
• Software & Networking
• Transportation
• San Diego, CA Partnership Business Development Manager Salaries
• Chicago, IL Partnership Business Development Manager Salaries
• New York, NY Partnership Business Development Manager Salaries
• Houston, TX Partnership Business Development Manager Salaries
• Phoenix, AZ Partnership Business Development Manager Salaries
• San Antonio, TX Partnership Business Development Manager Salaries
• San Jose, CA Partnership Business Development Manager Salaries
• Los Angeles, CA Partnership Business Development Manager Salaries
• Philadelphia, PA Partnership Business Development Manager Salaries
• Dallas, TX Partnership Business Development Manager Salaries

Improving the management of complex business partnerships

Partnerships never go out of style. Companies regularly seek partners with complementary capabilities to gain access to new markets and channels, share intellectual property or infrastructure, or reduce risk. The more complex the business environment becomes—for instance, as new technologies emerge or as innovation cycles get faster—the more such relationships make sense. And the better companies get at managing individual relationships, the more likely it is that they will become “partners of choice” and able to build entire portfolios of practical and value-creating partnerships.

Of course, the perennial problems associated with managing business partnerships don’t go away either—particularly as companies increasingly strike relationships with partners in different sectors and geographies. The last time we polled executives on their perceived risks for strategic partnerships, 1 Observations collected in McKinsey’s 2015 survey of more than 1,250 executives. Sixty-eight percent said they expect their organizations to increase the number of joint ventures or large partnerships they participate in over the next five years. A separate, follow-up survey in 2018 showed that 73 percent of participants expect their companies to increase the number of large partnerships they engage in. the main ones were: partners’ disagreements on the central objectives for the relationship, poor communication practices among partners, poor governance processes, and, when market or other circumstances change, partners’ inability to identify and quickly make the changes needed for the relationship to succeed (exhibit).

In our work helping executive teams set up and navigate complex partnerships, we have witnessed firsthand how these problems crop up, and we have observed the different ways companies deal with them . The reality is: successful partnerships don’t just happen. Strong partners set a clear foundation for business relationships and nurture them. They emphasize accountability within and across partner companies, and they use metrics to gauge success. And they are willing to change things up if needed. Focusing on these priorities can help partnerships thrive and create more value than they would otherwise.

Establish a clear foundation

It seems obvious that partner companies would strive to find common ground from the start—particularly in the case of large joint ventures in which each side has a big financial stake, or in partnerships in which there are extreme differences in cultures, communications, and expectations.

Yet, in a rush to complete the deal, discussions about common goals often get overlooked. This is especially true in strategic alliances within an industry, where everyone assumes that because they are operating in the same sector they are already on the same page. By skipping this step, companies increase the stress and tension placed on the partnership and reduce the odds of its success. For instance, the day-to-day operators end up receiving confusing guidance or conflicting priorities from partner organizations.

Would you like to learn more about our Strategy & Corporate Finance Practice ?

How can the partners combat it? The individuals expected to lead day-to-day operations of the partnership, whether business-unit executives or alliance managers, should be part of negotiations at the outset. This happens less often than you think because business-development teams and lawyers are typically charged with hammering out the terms of the deal—the objectives, scope, and governance structure—while the operations piece often gets sorted out after the fact.

Transparency during negotiations is the only way to ensure that everyone understands the partners’ goals (whether their primary focus is on improving operations or launching a new strategy) and that everyone is using the same measures of success. Even more important, transparency encourages trust and collaboration among partners, which is especially important when you consider the number of executives across the organizations who will likely rotate in and out of leadership roles during the life of the relationship.

Inevitably, points of tension will emerge. For instance, companies often disagree on financial flows or decision rights. But we have seen partners articulate such differences during the negotiation period, find agreement on priorities, and reset timelines and milestones. They defused much of the tension up front, so when new wrinkles—such as market shifts and changes in partners’ strategies—did emerge, the companies were more easily able to avoid costly setbacks and delays in the business activities they were pursuing together.

Nurture the relationship

Even business relationships that start off solidly can erode, given individual biases and common communication and collaboration issues. There are several measures partners can take to avoid these traps.

Connect socially

If executives in the partner organizations actively look for opportunities to understand one another, good collaboration and communication at the operations level are likely to follow. Given time and geographic constraints, it can be hard for them to do so, but as one energy-sector executive who has negotiated and managed dozens of partnerships noted, “It’s important to spend as much time as you can on their turf.” He says about 30 to 40 percent of partnership meetings are about business; the rest of the time is spent building friendships and trust.

Keep everyone in the loop

Skipping the step of keeping everyone informed can create unnecessary confusion and rework for partner organizations. That is what happened in the case of an industrial joint venture: the first partner in the joint venture included a key business-unit leader in all venture-related discussions. The second partner apprised a key business-unit leader about major developments, but this individual did not actually join the discussions until late in the joint-venture negotiation. At that point, as he learned more about the agreement, he flagged several issues, including inconsistencies in the partners’ access to vendors and related data. He immediately recognized these issues because they directly affected operations in his division. Because he hadn’t been included in early discussions, however, the partners wasted time designing an operating model for the joint venture that would likely not work for one of them. They had to go back to the drawing board.

Recognize each other’s capabilities, cultures, and motivations

Partners come together to take advantage of complementary geographies, corresponding sales and marketing strengths, or compatibilities in other functional areas. But it is important to understand which partner is best at what . This process must start before the deal is completed—but cannot stop at signing. In the case of one consumer-goods joint venture, for instance, the two partner organizations felt confident in their plan to combine the manufacturing strength of one company with the sales and marketing strengths of the other. During their discussions on how to handle financial reporting, however, it became clear that the partner with sales and marketing strengths had a spike in forecasting, budgeting, and reporting expertise. The product team for the first partner had originally expected to manage these finance tasks, but both partner teams ultimately agreed that the second partner should take them on. In this way, they were able to enhance the joint venture’s ongoing operations and ensure its viability.

Equally important is understanding each partner’s motivation behind the deal. This is a common point of focus during early negotiations; it should continue to be discussed as part of day-to-day operations—particularly if there are secondary motivators, such as access to suppliers or transfer of capabilities, that are important to each partner. Within one energy-sector partnership, for instance, the nonoperating partner was keen to understand how its local workforce would receive training over the course of the partnership. This company wanted to enhance the skills of the local workforce to create more opportunities for long-term employment in the region. The operating partner incorporated training and skill-evaluation metrics in the venture’s quarterly updates, thus improving the companies’ communication on the topic and explicitly acknowledging the importance of this point to its partner.

Invest in tools, processes, and personnel

Bringing different business cultures together can be challenging, given partners’ varying communication styles and expectations. The good news is that there are a range of tools—among them, financial models, key performance indicators, playbooks, and portfolio reviews—companies can use to help bridge any gaps. And not all these interventions are technology dependent. Some companies simply standardize the format of partnership meetings and agendas so that teams know what to expect. Others follow stringent reporting requirements.

Another good move is to convene an alliance-management team. This group tracks and reviews the partnership’s progress against defined metrics and helps to spot potential areas of concern—ideally with enough time to change course. Such teams take different forms. One pharmaceutical company with dozens of commercial and research partnerships has a nine-member alliance-management team charged mostly with monitoring and flagging potential issues for business-unit leaders, so it consists of primarily junior members and one senior leader who interacts directly with partners. An energy company with four large-scale joint ventures has taken a different approach: its alliance-management team comprises four people, but each is an experienced business leader who can serve as a resource for the respective joint-venture-leadership teams.

Sometimes partnerships need a structural shake-up—and not just as an act of last resort.

How companies structure these teams depends on concrete factors—the number and complexity of the partnerships, for instance—as well as intangibles like executive support for alliances and joint ventures and the experiences and capabilities of the individuals who would make up the alliance-management team.

Emphasize accountability and metrics

Good governance is the linchpin for successful partnerships; as such, it is critical that senior executives from the partner organizations remain involved in oversight of the partnership. At the very least, each partner should assign a senior line executive from the company to be “deal sponsor”—someone who can keep operations leaders and alliance managers focused on priorities, advocate for resources when needed, and generally create an environment in which everyone can act with more confidence and coordination.

Additionally, the partners must define “success” for their operations teams: What metrics will they use to determine whether they have hit their goals, and how will they track them? Some companies have built responsibility matrices; others have used detailed process maps or project stage gates to clarify expectations, timelines, and critical performance measures. When partnerships are initially formed, it is usually the business-development teams that are responsible for building the case for the deal and identifying the value that may be created for both sides. As the partnership evolves, the operations teams must take over this task, but they will need ongoing guidance from senior leaders in the partner organizations.

Build a dynamic partnership

Sometimes partnerships need a structural shake-up—and not just as an act of last resort. For instance, it might be less critical to revisit the structure of a partnership in which both sides are focused on joint commercialization of complementary products than it would be for a partnership focused on the joint development of a set of new technologies. But there are some basic rules of thumb for considering changes in partnership structure.

Partner organizations must acknowledge that the scope of the relationship is likely to shift over time. This will be the case whether the partners are in a single- or multiasset venture, expect that services will be shared, anticipate expansion, or have any geographic, regulatory, or structural complexities. Accepting the inevitable will encourage partners to plan more carefully at the outset. For example, during negotiations, the partners in a pharmaceutical partnership determined that they had different views on future demand for drugs in development. This wasn’t a deal breaker, however. Instead, the partners designated a formula by which financial flows would be evaluated at specific intervals to address any changes in expected performance. This allowed the partners to adjust the partnership based on changes in market demand or the emergence of new products. All changes could be incorporated fairly into the financial splits of the partnership.

Avoiding blind spots in your next joint venture

Partners should also consider the potential for restructuring during the negotiation process—ideally framing the potential endgame for the relationship. What market shifts might occur, how might that affect both sides’ interests and incentives, and what mechanisms would allow for orderly restructuring? When one oil and gas joint venture began struggling, the joint-venture leader realized he was being pulled in opposing directions by the two partner companies because of the companies’ conflicting incentives. “It made the alliance completely unstable,” he told us. He brought the partners back to the negotiation table to determine how to reconcile these conflicting incentives, restructure their agreement, and continue the relationship, thus avoiding deep resentment and frustration on both sides of the deal.

Such dialogues about the partnership’s future, while potentially stressful, should be conducted regularly—at least annually.

The implementation of these four principles requires some forethought and care. Every relationship comes with its own idiosyncrasies, after all, depending on industry, geography, previous experience, and strategy. Managing relationships outside of developed markets, for instance, can present additional challenges involving local cultures, integration norms, and regulatory complexities. Even in these emerging-market deals, however, the principles can serve as effective prerequisites for initiating discussions about how to change long-standing practices and mind-sets.

An emphasis on clarity, proactive management, accountability, and agility can not only extend the life span of a partnership or joint venture but also help companies build the capability to establish more of them—and, in the process, create outsize value and productivity in their organizations.

Ruth De Backer is a partner in McKinsey’s New York office, where Eileen Kelly Rinaudo is a senior expert.

Explore a career with us

Related articles.

Joint ventures on the rise

M&A as competitive advantage

CAREER PATHWAYS

Looking for the perfect job? Explore our Career Guides!

What is a Business Development Manager and How to Become One

By Oluwadamilola Osisanya

Published: February 16, 2024

In the ever-evolving world of business, the role of a Business Development Manager (BDM) is crucial for driving growth and fostering strategic partnerships. If you’re passionate about shaping business trajectories and forging impactful connections, but unsure what a Business Development Manager does, read on. This article offers actionable insights to demystify the path to success in this dynamic field. 

Career Summary

Business development manager salary.

The business development manager salary varies widely depending on experience, industry, and geographic location.

Here are the average business development manager salary figures from Glassdoor .

• Entry-Level : US$ 98,000
• Median : US$ 129,000
• Senior : US$ 174,000

When compared to the national average, which is $59,428 according to Forbes , all business development managers receive a high salary .

What is a Business Development Manager?

A business development manager is a pivotal role within an organization, tasked with the primary objective of driving business growth . Business development managers are strategic thinkers who understand the intricacies of their company’s market and industry, using this knowledge to position their company for expansion and success.

What does a Business Development Manager do?

A business development manager plays a crucial role in the growth and expansion of a company. They are tasked with identifying new business opportunities, whether that means new markets, new partnerships with other businesses, new ways to reach existing markets, or new product or service offerings to meet the needs of existing markets better. 

But what does a business development manager do on a day-to-day basis? They strategize to improve the company’s financial growth, negotiate and close business deals, and foster and develop relationships with customers, suppliers, and other partners.

Business Development Manager Career Progression

• Junior Business Development Representative : In this role, your focus will be on prospecting new clients and markets, supporting senior business development staff, and learning the basics of sales and marketing strategies.
• Business Development Representative : Builds on the foundation of the junior role, and you will take on more responsibility for initiating and nurturing client relationships, qualifying leads, and contributing to sales strategies.
• Business Development Manager – In this key role, you will be responsible for identifying and securing new business opportunities, developing strategic partnerships, and managing relationships with key clients. Involves collaboration with other departments to align business growth efforts with company goals.
• Senior Business Development Manager : With increased experience, you will take on larger, more complex deals, lead business development teams, and contribute to strategic planning at higher levels. 
• Business Development Director : You will be involved in overseeing the business development department and setting goals, strategies, and policies. You will also be responsible for major accounts management, strategic partnership development, and contributing to the company’s overall strategy and growth.
• Vice President of Business Development : This is an executive role involving high-level strategic planning and decision-making. You will lead company-wide business development initiatives and explore new markets, 
• Chief Business Development Officer (CBDO) : At the top of the career ladder, the CBDO is responsible for the overall business development strategy of an organization. 

Best Aspects of Working as a Business Development Manager

• High potential for career growth and progression within the company.
• Significant role in shaping the strategic direction of the business.
• Chance to work closely with senior management and influence decision-making.
• Competitive salary with performance-based bonuses and incentives.
• Flexibility in work schedule and potential for travel.

Worst Aspects of Working as a Business Development Manager

• High levels of stress due to constant pressure to meet growth targets and deadlines.
• Frequent rejection when pitching to potential clients or partners.
• Intense competition, both within the industry and sometimes within the same organization.
• Difficulty in balancing the need for immediate results with the development of long-term strategies.
• Requirement to constantly adapt to changing market conditions and business strategies.

Essential Business Development Manager Skills

• Strategic Thinking
• Communication Skills
• Analytical Abilities
• Sales Expertise
• Project Management

Popular Business Development Manager Specialties

• Technology and Software
• Healthcare and Pharmaceuticals
• Financial Services
• Energy and Resources
• Consumer Goods and Retail

How to Become a Business Development Manager

Achieving success as a business development manager hinges on a blend of formal education and hands-on experience, laying a foundation for strategic thinking and real-world problem-solving.

Education plays a pivotal role in shaping the foundational skills and knowledge necessary for a successful career as a business development manager.

Do I need a Degree to Become a Business Development Manager?

Yes, a degree is generally required to become a business development manager . Most employers look for candidates with a bachelor’s degree in business administration, marketing, finance, or a related field as a minimum educational qualification. 

This foundational education equips individuals with the necessary knowledge of business principles, market analysis, and strategic planning, which are crucial for identifying and leveraging business opportunities. 

While it’s possible to progress in this career through extensive work experience and skills development, a degree significantly enhances your prospects and may be a prerequisite for many positions.

Why is it Important to get a Degree in Business Administration?

Obtaining a degree in business administration is crucial due to the comprehensive understanding it provides of the business world. 

This degree equips individuals with essential skills in strategic planning , market analysis, financial management, and operational efficiencies—core competencies necessary for identifying and capitalizing on new business opportunities. 

It also lays a solid foundation in business principles and practices, enhances problem-solving and decision-making capabilities, and prepares individuals to navigate the complexities of business growth and development strategies effectively. 

Moreover, the degree offers valuable networking opportunities, access to industry insights, and the credibility often required by employers in this competitive field, significantly enhancing one’s career prospects in business development.

How Long Does it Take to Get a Degree in Business Administration?

Earning a Bachelor’s Degree in business administration, which is crucial for aspiring business development managers, generally involves a four-year study period for those enrolled full-time. 

This degree encompasses a comprehensive curriculum focused on key business areas like marketing, finance, management, and economics. It lays the foundational knowledge needed for a successful career in business development.

For individuals targeting higher-level positions or seeking to deepen their expertise, pursuing a Master of Business Administration (MBA) is a common next step. An MBA usually requires an additional two years of full-time study after obtaining a bachelor’s degree. 

Nonetheless, the duration can vary based on the program structure, such as accelerated or part-time options, which might adjust the completion timeline.

How Much Does It Cost to Study Business Administration at University?

Understanding the cost of studying business administration is crucial for aspiring business development managers, as it forms the foundation of their career path. Pursuing a degree in business administration is a significant investment, with expenses varying based on the choice of institution and the student’s residency status.

For those considering an undergraduate program, average tuition and fees can be expected to be around $9,243 annually for individuals who qualify as state residents at public universities. However, students from outside the state can anticipate costs of approximately $25,950 per year at the same institutions. 

For individuals aiming to enhance further their qualifications through graduate studies, the financial considerations slightly shift. State residents attending public universities can expect to spend about $10,867 on average for tuition and fees, whereas out-of-state students may face charges of around $19,485. 

These figures underscore the financial commitment required to pursue advanced education in business administration, laying the groundwork for a career as a business development manager.

Can I Become a Business Development Manager through Online Education?

Yes, you can become a business development manager through online education . Online programs offer flexibility and accessibility, making it possible for individuals to acquire the necessary knowledge and skills while balancing other commitments. 

Many reputable institutions provide online bachelor’s and master’s degree programs in business administration, marketing, finance, or related fields, which are essential for a career in business development. 

These programs typically cover core business principles, strategic planning, market analysis, and other relevant topics that prepare students for the challenges of business development roles. Additionally, online education can also facilitate networking opportunities through virtual events and forums, allowing students to build connections that are valuable for career advancement. 

To enhance your prospects further, consider complementing your online degree with relevant work experience, internships, and professional certifications, which can be pursued alongside or after completing your online studies.

What are Some Web Resources to Learn Skills to Become a Business Development Manager?

To learn the necessary business development manager skills, you can explore a variety of web resources that offer educational content, industry insights, and professional development opportunities.

Here are some valuable resources:

• National Business Development Association (NBDA) : Focuses on sharing best practices and identifying and developing professional skills crucial for business development.
• BIZDEV: The International Association for Business Development and Strategic Partnerships : Provides education, networking, and professional development opportunities geared towards business growth and strategic partnerships.
• Business Professionals of America (BPA) : While more broadly focused, BPA offers skill development and networking opportunities that can benefit those interested in business development.

Practical Experience

Practical experience is the cornerstone of success in becoming a business development manager, providing the real-world insights and skills essential for navigating complex market dynamics and fostering strategic partnerships.

What are Internship Opportunities for a Business Development Manager?

Here are some common internship opportunities for individuals aspiring to become business development managers:

• Sales and Marketing Internship : Many companies offer internships in sales and marketing departments where interns can learn about customer acquisition strategies, market research, lead generation, and sales techniques.  These internships provide valuable experience in client interaction and relationship building, which are essential skills for business development roles.
• Business Strategy Internship : Internships focused on business strategy often involve analyzing market trends and competitive landscape and conducting industry research. Interns may assist in developing business plans, identifying growth opportunities, and evaluating potential partnerships or acquisitions.
• Market Research Internship : Market research internships involve gathering and analyzing data on customer preferences, market trends, and competitor activities. Interns may conduct surveys, interviews, and data analysis to provide insights that inform business development strategies.
• Partnership Development Internship : Internships in partnership development involve identifying and establishing relationships with potential partners, such as suppliers, distributors, or complementary businesses. 
• Product Management Internship : Product management internships focus on understanding customer needs, developing product strategies, and overseeing the product development process. Interns may assist in market research, product planning, and collaborating with cross-functional teams to bring products to market.
• Startup Internship : Interning at a startup can provide hands-on experience in various aspects of business development, including sales, marketing, strategy, and operations. Startups often offer interns the opportunity to work closely with founders and gain exposure to the fast-paced, dynamic environment of early-stage companies.
• Consulting Internship : Consulting firms often offer internships where individuals work on projects for client companies across different industries. Business development interns in consulting may be involved in market analysis, competitive benchmarking, and developing growth strategies for clients.
• Corporate Development Internship : Corporate development internships focus on supporting corporate growth initiatives, such as mergers and acquisitions, strategic partnerships, and investments. Interns may assist in conducting due diligence, financial analysis, and strategic planning for corporate development activities.

What Skills will I Learn as a Business Development Manager?

As a business development manager, you will develop a diverse set of skills that are essential for identifying opportunities, building relationships, and driving growth for a company.

Here are some key business development manager skills you can expect to learn:

• Strategic Planning : You’ll learn to develop and execute strategic plans to expand the company’s customer base, enter new markets, and achieve revenue targets.
• Market Analysis : Understanding market trends, customer needs, and competitor activities is crucial. You’ll learn how to conduct market research and analysis to identify opportunities and make informed decisions.
• Sales and Negotiation : Business development managers often lead sales efforts and negotiate deals with clients, partners, and suppliers. You’ll develop skills in sales techniques, pitching, and contract negotiation.
• Relationship Building : Building and maintaining relationships with clients, partners, and stakeholders is essential for success. You’ll learn how to cultivate strong relationships based on trust, communication, and mutual benefit.
• Networking : Networking skills are crucial for expanding your professional network and identifying business opportunities. You’ll learn how to leverage networking events, industry conferences, and online platforms to connect with potential partners and clients.
• Communication : Effective communication is key in business development, whether it’s presenting proposals to clients, negotiating deals, or collaborating with internal teams. You’ll develop skills in verbal and written communication, including persuasion and presentation skills.
• Analytical Skills : Analyzing data and metrics to evaluate the performance of business development initiatives and make data-driven decisions is essential. You’ll learn how to interpret financial reports, sales data, and market research findings.
• Project Management : Business development managers often oversee complex projects involving multiple stakeholders. You’ll learn how to plan, organize, and execute projects efficiently to achieve desired outcomes.
• Problem-solving : Business development involves overcoming challenges and finding innovative solutions to achieve business objectives. You’ll develop strong problem-solving skills and the ability to think creatively.
• Adaptability : Business environments are dynamic and constantly evolving. You’ll learn to adapt to changes in the market, industry trends, and company priorities to stay competitive and seize new opportunities.

What is the Work-Life Balance of a Business Development Manager?

The work-life balance of a business development manager can vary significantly depending on the industry, company culture , and individual workload. Business development managers often face high-pressure situations, tight deadlines, and the need to meet ambitious sales targets, which can lead to long hours and occasional periods of intense work. 

Additionally, extensive travel may be required to meet with clients, attend conferences, and explore new market opportunities. However, many business development managers also enjoy flexibility in their schedules, autonomy in managing their workload, and the opportunity to work remotely. 

Achieving a healthy work-life balance in this role often requires effective time management, setting boundaries, and prioritizing tasks to ensure both professional success and personal well-being.

What’s the Career Outlook for a Business Development Manager?

The career outlook for business development managers in the USA is promising. Zippia reported that employment of business development managers is projected to grow 10% from 2018 to 2028 , which is faster than the average for all occupations. This translates to about 33,700 job openings over the decade​. 

What are the Job Opportunities of a Business Development Manager?

A business development manager (BDM) typically plays a crucial role in identifying new business opportunities, building strategic partnerships, and expanding a company’s client base.

Here are some common job opportunities for individuals with experience and skills in business development:

• Sales Manager/Director : BDMs often transition into sales management roles where they oversee a team of sales representatives, set sales targets, develop sales strategies, and manage client relationships.
• Marketing Manager/Director : With their understanding of market trends and customer needs, BDMs may move into marketing management positions where they lead marketing campaigns, conduct market research, and develop marketing strategies to promote products or services.
• Product Manager : BDMs with a strong understanding of market demands and customer feedback may transition into product management roles where they are responsible for overseeing the development and launch of new products or services.
• Strategic Partnership Manager : BDMs skilled at building relationships and negotiating deals may pursue roles focused on forming strategic partnerships with other companies or organizations to drive mutual business growth.
• Business Consultant/Advisor : Experienced BDMs may choose to work as independent consultants or advisors, offering their expertise to businesses seeking guidance on market expansion, sales strategies, or partnership opportunities.
• Entrepreneur/Startup Founder : BDMs with an entrepreneurial spirit may choose to start their businesses or join startups, leveraging their skills in business development to establish and grow new ventures.
• Corporate Development Manager : In larger corporations, BDMs may transition into corporate development roles where they focus on mergers, acquisitions, and strategic alliances to drive corporate growth and expansion.
• International Business Development Manager : BDMs with experience in global markets may pursue opportunities focused on expanding business operations internationally, including market entry strategies, localization efforts, and global partnership development.
• Customer Success Manager : Some BDMs may transition into customer success roles where they are responsible for ensuring customer satisfaction, retention, and loyalty by providing ongoing support and identifying opportunities for upselling or cross-selling.

What Type of Companies Hire a Business Development Manager?

Business development managers (BDMs) are sought after by a wide range of companies across various industries.

Here are some types of companies that commonly hire BDMs:

• Technology Companies : Software companies, IT services firms, and startups in the tech industry often hire BDMs to identify new business opportunities, form strategic partnerships, and drive sales growth.
• Consulting Firms : Management consulting firms and advisory companies frequently employ BDMs to expand their client base, develop new service offerings, and secure contracts with businesses seeking consulting services.
• Manufacturing Companies : Manufacturing firms hire BDMs to identify new markets for their products, establish distribution channels, and negotiate contracts with distributors or retailers.
• Financial Services Firms : Banks, insurance companies, investment firms, and other financial services providers often employ BDMs to acquire new clients, promote financial products, and expand their market share.
• Healthcare Organizations : Hospitals, pharmaceutical companies, medical device manufacturers, and healthcare startups may hire BDMs to explore new business opportunities, forge partnerships with healthcare providers, and drive sales of healthcare products or services.
• Real Estate Companies : Real estate developers, property management firms, and real estate agencies often hire BDMs to identify potential real estate projects, negotiate deals with property owners or investors, and drive business growth.
• Hospitality and Tourism Industry : Hotels, resorts, travel agencies, and tour operators may employ BDMs to attract new customers, develop strategic partnerships with travel agents or corporate clients, and expand their market presence.
• Retail Companies : Retailers, e-commerce businesses, and consumer goods companies hire BDMs to identify new distribution channels, negotiate contracts with wholesalers or retailers, and develop strategies to increase sales.
• Telecommunications Companies : Telecommunications providers and technology firms in the telecom sector often hire BDMs to identify opportunities for new products or services, forge partnerships with other companies, and expand their customer base.

Should I Become a Business Development Manager?

Deciding to pursue a career as a business development manager is a significant step that requires careful consideration of the factors discussed throughout this article. 

As we’ve explored, the role of a business development manager is complex and multifaceted, involving a blend of strategic analysis, relationship building, and innovative thinking to drive business growth. It’s a position that demands not only a deep understanding of the business landscape but also a unique set of skills and personal attributes.

Before making the decision, it’s crucial to reflect on your interests and skills. Do you thrive in dynamic, fast-paced environments? Are you passionate about identifying and pursuing new business opportunities? Do you have strong analytical abilities combined with excellent communication and interpersonal skills? If your answers lean towards a yes, then a career in business development could be a fulfilling path for you.

Careers Related to Business Development Manager

• Account Manager
• Business Analyst
• Business Development Representative
• Business Operations Manager
• Marketing Manager

About the Author

Read more articles by Oluwadamilola Osisanya

Continue Reading

What is a UX Designer and How to Become One

What is a machine learning engineer and how to become one, what is a ui designer and how to become one, what is an seo specialist and how to become one, what is a recruiter and how to become one, what is a project manager and how to become one, what is a front-end developer and how to become one, what is a product manager and how to become one.

• Search Search Please fill out this field.

What Is Business Development?

• Business Development Basics
• Areas of Development
• Business Development Process
• Creating a Plan
• Skills Needed

The Bottom Line

• Small Business
• How to Start a Business

Business Development: Definition, Strategies, Steps, and Skills

Why more and more companies worldwide are embracing this planning process

• How to Start a Business: A Comprehensive Guide and Essential Steps
• How to Do Market Research, Types, and Example
• Marketing Strategy: What It Is, How It Works, How To Create One
• Marketing in Business: Strategies and Types Explained
• What Is a Marketing Plan? Types and How to Write One
• Business Development: Definition, Strategies, Steps & Skills CURRENT ARTICLE
• Business Plan: What It Is, What's Included, and How to Write One
• Small Business Development Center (SBDC): Meaning, Types, Impact
• How to Write a Business Plan for a Loan
• Business Startup Costs: It’s in the Details
• Startup Capital Definition, Types, and Risks
• Bootstrapping Definition, Strategies, and Pros/Cons
• Crowdfunding: What It Is, How It Works, and Popular Websites
• Starting a Business with No Money: How to Begin
• A Comprehensive Guide to Establishing Business Credit
• Equity Financing: What It Is, How It Works, Pros and Cons
• Best Startup Business Loans
• Sole Proprietorship: What It Is, Pros & Cons, and Differences From an LLC
• Partnership: Definition, How It Works, Taxation, and Types
• What is an LLC? Limited Liability Company Structure and Benefits Defined
• Corporation: What It Is and How to Form One
• Starting a Small Business: Your Complete How-to Guide
• Starting an Online Business: A Step-by-Step Guide
• How to Start Your Own Bookkeeping Business: Essential Tips
• How to Start a Successful Dropshipping Business: A Comprehensive Guide

10'000 Hours / Getty Images

Business development is the process of planning for future growth by identifying new opportunities, forming partnerships, and adding value to a company. It involves understanding the target audience, market opportunities, and effective outreach channels to drive success.

Business development may involve objectives around sales growth, business expansion, strategic partnerships, and increased profitability. The process impacts every department, including sales, marketing, manufacturing, human resources, accounting, finance, product development, and vendor management.

Key Takeaways

• The overarching goal of business development is to make a company more successful.
• It can involve many objectives, such as sales growth, business expansion, the formation of strategic partnerships, and increased profitability.
• The process impacts every department, including sales, marketing, manufacturing, human resources, accounting, finance, product development, and vendor management.
• Business development leaders and team members need a diverse range of both soft and hard skills to meet these objectives.

How Business Development Works

Business development strives to increase an organization’s capabilities and expand its reach to achieve financial and strategic goals. This process can significantly impact various departments within the organization, utilizing their specialized skills to drive growth.

Business development serves as the thread connecting all of a company’s functions or departments. It helps a business grow and improve in areas such as sales, revenue, product offerings, talent acquisition, customer service, and brand awareness.

Business development encourages teamwork and strategic planning across all departments, ensuring that the organization grows cohesively and sustainably.

Sales and Marketing

Sales personnel often concentrate on specific markets or clients, aiming to achieve targeted revenue numbers. For example, a business development team might assess the Brazilian market and determine that $1.5 billion in sales is achievable within three years. With this goal, the sales department develops strategies to target the new market’s customer base .

Business development often requires a longer-term approach than traditional sales strategies. The Society for Marketing Professional Services describes sales as akin to hunting, while business development is more like farming—a long-term investment of time and energy without immediate payoff.

Marketing supports sales by promoting and advertising the company’s products and services. A business development leader and their team can help set appropriate budgets based on the opportunities involved.

Higher budgets enable aggressive strategies like cold calling , personal visits, roadshows, and free sample distribution. Lower budgets tend to focus on more passive strategies, such as online, print, and social media ads, as well as billboard advertising.

Legal and Finance

To enter a new market, a business development team must decide whether to go solo by navigating all required legal formalities or to form a strategic alliance or partnership with firms already operating in that market. Assisted by legal and finance teams, the business development group weighs the pros and cons of each option and chooses the one that best serves the business.

Finance may also become involved in cost-cutting initiatives. Business development is not just about increasing market reach and sales, but also about improving the bottom line.

For example, suppose an internal assessment reveals high spending on corporate business travel. In that case, the team may change travel policies such as hosting videoconference calls instead of on-site meetings or opting for less expensive transportation modes. The outsourcing of noncore work, such as billing, technology operations, or customer service, may also be part of a development plan.

Project Management/Business Planning

International business expansion involves critical decisions about whether to establish a new facility in the target market or manufacture products in the base country and import them. If opting for the latter, it may also require assessing the need for an additional facility in the base country.

The business development team evaluates and finalizes such decisions based on cost and time assessments. Once a decision is made, the project management and implementation team can begin working on the desired goal.

Product Management and Manufacturing

Regulatory standards and market requirements can vary across regions and countries. For example, a medication permitted in India may not be allowed in the United Kingdom. This can necessitate a customized or entirely new product for the new market.

Almost all countries require specific documentation and have regulations that must be met to ensure the safety, quality, and conformity of imported products.

These requirements drive the work of product management and manufacturing departments, which are influenced by the business strategy. Cost considerations, legal approvals, and regulatory compliance are all critical aspects assessed during the development process.

Vendor Management

Will the new business need external vendors ? For example, will shipping require a dedicated courier service, or will the company partner with an established retail chain for sales? What are the costs associated with these partnerships?

The business development team collaborates with relevant internal departments to address these questions and determine the best strategies for external engagements.

10 Potential Areas for Business Development

Business development often requires employees from various departments to collaborate, facilitating information flow, strategic planning, and informed decision making. Here is a summary of potential areas where business development may be involved, depending on the organization:

• Market research and analysis : Identifying new market opportunities and developing effective strategies
• Sales and lead generation : Prospecting, qualifying leads, and coordinating with the sales team to convert leads into customers
• Strategic partnerships and alliances : Forming strategic alliances, joint ventures, or collaborations that create mutually beneficial opportunities
• Product development and innovation : Conducting market research, gathering customer feedback, and collaborating with internal teams to drive innovation
• Customer relationship management : Implementing customer retention initiatives and loyalty programs, and gathering customer feedback, to enhance satisfaction and drive repeat business
• Strategic planning and business modeling : Identifying growth opportunities, setting targets, and implementing strategies to achieve sustainable growth
• Mergers and acquisitions : Evaluating potential synergies, conducting due diligence , and negotiating and executing deals
• Brand management and marketing : Creating effective marketing campaigns, managing online and offline channels, and leveraging digital marketing techniques
• Financial analysis and funding : Exploring funding options, securing investments, or identifying grant opportunities
• Innovation and emerging technologies : Assessing the potential impact of disruptive technologies and integrating them into the organization’s growth strategies

The Business Development Process in 6 Steps

While the specific steps in the business development process will depend on the particular company, its needs and capabilities, its leadership, and its available capital, some common steps include:

Step 1: Market Research/Analysis

Begin by conducting comprehensive market research to gain insights into market trends, customer needs, and the competitive landscape. Analyze data and gather additional information to identify potential growth opportunities and understand market dynamics.

Step 2: Establish Clear Goals and Objectives

Leveraging that research, define specific objectives and goals for business development efforts. These goals could include revenue targets, market expansion goals, customer acquisition targets, and product or service development. Setting clear goals provides a focus and direction for the business development process.

Step 3: Generate and Qualify Leads

Use various sources, such as industry databases, networking , referrals, or online platforms, to generate a pool of potential leads. Identify individuals or companies that fit the target market criteria and evaluate them based on predetermined criteria to determine their suitability and potential value.

Step 4: Build Relationships and Present Solutions

Initiate contact with qualified leads and establish relationships through effective communication and engagement. Utilize networking events, industry conferences, personalized emails, or social media interactions to build trust and credibility.

As your relationship forms, develop and present tailored solutions that align with the client’s needs. Demonstrate the value proposition of the organization’s offerings and highlight key benefits and competitive advantages.

Step 5: Negotiate and Expand

Prepare and deliver proposals that outline the scope of work, pricing, deliverables, and timelines. Once the client agrees, collaborate with legal and other relevant internal teams to finalize and execute the contract to ensure all terms are clear and agreed upon. Maintain communication with the client throughout this process to address any questions or concerns.

Step 6: Continuously Evaluate

Continuously monitor and evaluate the effectiveness of business development efforts. Analyze performance metrics , gather feedback from clients and internal stakeholders, and identify areas for improvement. Regularly refine strategies and processes to adapt to market changes and optimize outcomes.

While it’s common for startup companies to seek outside assistance in developing the business, as a company matures, it should aim to build its business development expertise internally.

How to Create a Business Development Plan

To effectively create and implement a business development plan, the team needs to set clear objectives and goals—ones that are specific, measurable, achievable, relevant, and time-bound (SMART). You can align these objectives with the overall business goals of the company.

Companies often start by analyzing their current state through a  SWOT analysis , evaluating their strengths, weaknesses, opportunities, and threats. This helps identify target markets and customer segments and define a unique value proposition.

The external-facing stages of a business development plan are crucial. These stages should outline sales and marketing strategies to generate leads and convert them into customers. They should also explore potential strategic partnerships and alliances to expand reach, access new markets, or enhance offerings.

Teams should also conduct a financial analysis and resource planning to determine the resources needed for implementing the plan. Once implemented, progress should be tracked against the key performance indicators (KPIs) you’ve chosen to ensure the plan’s effectiveness.

Skills Needed for Business Development Jobs

Business development requires a wide range of hard and soft skills.

Leaders and team members in business development need well-honed sales and negotiation skills to interact with clients, understand their needs, and influence their decisions. They must build rapport, handle challenges, and close deals. Effective communication, both verbal and written, with customers and internal stakeholders, is crucial.

Business development specialists should be thoroughly aware of the market in which they operate and keep up with market dynamics, competitive activities, and industry developments. They need to identify potential opportunities, make informed decisions, and adjust strategies as necessary, requiring strong analytical skills.

Internally, business development practitioners must clarify priorities, set realistic deadlines, manage resources efficiently, and monitor progress to guarantee the timely completion of tasks.

Finally, business development professionals should conduct themselves with high ethical standards. They must maintain confidentiality, act legally and ethically, and build trust with customers and stakeholders.

Why Is Business Development Important?

In addition to its benefits to individual companies, business development is important for generating jobs, developing key industries, and keeping the economy moving forward.

What Are the Most Important Skills for Business Development Executives?

Development executives need to have leadership skills, vision, drive, and a willingness to work with a variety of people to get to a common goal.

How Can I Be Successful in Business Development?

Having a vision and putting together a good team are among the factors that help predict success in business development. A successful developer also knows how to write a good business plan, which becomes the blueprint to build from.

What, in Brief, Should a Business Development Plan Include?

A business development plan, or business plan , should describe the organization’s objectives and how it intends to achieve them, including financial goals, expected costs, and targeted milestones.

Business development is key to companies’ growth and achievement of their goals. It involves setting clear objectives, leveraging market research, forming strategic partnerships, and aligning efforts across all departments to drive success.

A well-executed business development plan not only supports short-term revenue growth but also ensures long-term sustainability. As companies across various industries increasingly recognize its importance, the role of business development continues to grow.

Society for Marketing Professional Services. “ What Is Business Development? ”

• Terms of Service
• Editorial Policy
• Privacy Policy
• Your Privacy Choices

• You are here:
• Agile Business Consortium
• DSDM Project Framework

Chapter 10: MoSCoW Prioritisation

Previous  chapter: 9  Workshops

10.1 Introduction

In a DSDM project where time has been fixed, it is vital to understand the relative importance of the work to be done in order to make progress and keep to deadlines. Prioritisation can be applied to requirements/User Stories, tasks, products, use cases, acceptance criteria and tests, although it is most commonly applied to requirements/ User Stories. (User Stories are a very effective way of defining requirements in an Agile style; see later chapter on Requirements and User Stories for more information.) MoSCoW is a prioritisation technique for helping to understand and manage priorities. The letters stand for:

• S hould Have
• C ould Have
• W on’t Have this time

The use of MoSCoW works particularly well on projects. It also overcomes the problems associated with simpler prioritisation approaches which are based on relative priorities:

• The use of a simple high, medium or low classification is weaker because definitions of these priorities are missing or need to be defined. Nor does this categorization provide the business with a clear promise of what to expect. A categorisation with a single middle option, such as medium, also allows for indecision
• The use of a simple sequential 1,2,3,4… priority is weaker because it deals less effectively with items of similar importance. There may be prolonged and heated discussions over whether an item should be one place higher or lower

The specific use of Must Have, Should Have, Could Have or Won’t Have this time provides a clear indication of that item and the expectations for its completion.  

10.2 The MoSCoW Rules

10.2.1 Must Have

These provide the Minimum Usable SubseT (MUST) of requirements which the project guarantees to deliver. These may be defined using some of the following:

• No point in delivering on target date without this; if it were not delivered, there would be no point deploying the solution on the intended date
• Not legal without it
• Unsafe without it
• Cannot deliver a viable solution without it

Ask the question ‘what happens if this requirement is not met?’ If the answer is ‘cancel the project – there is no point in implementing a solution that does not meet this requirement’, then it is a Must Have requirement. If there is some way around it, even if it is a manual and painful workaround, then it is a Should Have or a Could Have requirement. Categorising a requirement as a Should Have or Could Have does not mean it won’t be delivered; simply that delivery is not guaranteed.  

10.2.2 Should Have

Should Have requirements are defined as:

• Important but not vital
• May be painful to leave out, but the solution is still viable
• May need some kind of workaround, e.g. management of expectations, some inefficiency, an existing solution, paperwork etc. The workaround may be just a temporary one

One way of differentiating a Should Have requirement from a Could Have is by reviewing the degree of pain caused by the requirement not being met, measured in terms of business value or numbers of people affected.  

10.2.3 Could Have

Could Have requirements are defined as:

• Wanted or desirable but less important
• Less impact if left out (compared with a Should Have)

These are the requirements that provide the main pool of contingency, since they would only be delivered in their entirety in a best case scenario. When a problem occurs and the deadline is at risk, one or more of the Could haves provide the first choice of what is to be dropped from this timeframe.  

10.2.4 Won’t Have this time

These are requirements which the project team has agreed will not be delivered (as part of this timeframe). They are recorded in the Prioritised Requirements List where they help clarify the scope of the project. This avoids them being informally reintroduced at a later date. This also helps to manage expectations that some requirements will simply not make it into the Deployed Solution, at least not this time around. Won’t Haves can be very powerful in keeping the focus at this point in time on the more important Could Haves, Should Haves and particularly the Must Haves.

10.3 MoSCoW Relating to a Specific Timeframe

In a traditional project, all requirements are treated as Must Have, since the expectation is set from the start that everything will be delivered and that typically time (the end date) will slip if problems are encountered. DSDM projects have a very different approach; fixing time, cost and quality and negotiating features. By the end of Foundations, the end dates for the project and for the first Project Increment are confirmed. In order to meet this commitment to the deadline, DSDM projects need to create contingency within the prioritised requirements. Therefore the primary focus initially is to create MoSCoW priorities for the project. However, when deciding what to deliver as part of the Project Increment, the next focus will be to agree MoSCoW priorities for that Increment. So at this point, a requirement may have two priorities; MoSCoW for the project and MoSCoW for the Increment. Finally, when planning a specific Timebox (at the start of each Timebox) the Solution Development Team will allocate a specific priority for the requirements for this Timebox. At this point, the majority of requirements are Won’t Have (for this Timebox). Only requirements that the Solution Development Team plan to work on in the development timebox are allocated a Must Have, Should Have or Could Have priority. Therefore requirements may have three levels of priority:

• MoSCoW for the project
• MoSCoW for the Project Increment
• MoSCoW for this Timebox

It is important that the bigger picture objectives (completion of the Project Increment and delivery of the project) are not forgotten when working at the Timebox level. One simple way to deal with this is to create a separate Timebox PRL, a subset of the project PRL that is specifically associated with an individual Timebox and leave the priorities unchanged on the main PRL for the project.  

10.4 Ensuring effective prioritisation

10.4.1 Balancing the priorities

When deciding the effort allocated for Must Have requirements, remember that anything other than a Must Have is, to some degree, contingency, since the Must Haves define the Minimum Usable SubseT which is guaranteed to be delivered.

DSDM recommends:

• Getting the percentage of project/Project Increment Must Haves (in terms of effort to deliver) to a level where the team’s confidence to deliver them is high – typically no more than 60% Must Have effort
• Agreeing a pool of Could Haves for the project/Project Increment that reflects a sensible level of contingency - typically around 20% Could Have effort. Creating a sensible pool of Could Haves sets the correct expectations for the business from the start – that these requirements/User Stories may be delivered in their entirety in a best case scenario, but the primary project/Project Increment focus will always be on protecting the Must Haves and Should Haves

This spread of priorities provides enough contingency to ensure confidence in a successful project outcome. NB When calculating effort for a timeframe, Won’t Haves (for this timeframe) are excluded. DSDM’s recommendations reflect a typical project scenario. The important thing to make MoSCoW work is to have some visible flexibility in the level of requirements which must be delivered. The safe percentage of Must Have requirements, in order to be confident of project success, is not to exceed 60% Must Have effort.

Figure 10a: MoSCoW – balancing priorities

Levels of Must Have effort above 60% introduce a risk of failure, unless the team are working in a project where all of these criteria are true:

• Estimates are known to be accurate
• The approach is very well understood
• The team are “performing” (based on the Tuckman model)
• The environment is understood and low-risk in terms of the potential for external factors to introduce delays

In some circumstances the percentage of Must Have effort may be significantly less than 60%. However this can be used to the benefit of the business, by providing the greatest possible flexibility to optimise value delivered across a larger proportion of Should Haves. The exact split of effort between Musts, Shoulds, and Coulds is down to each project team to agree, although DSDM also recommends creating a sensible pool of Could Haves, typically around 20% of the total effort. Effective MoSCoW prioritisation is all about balancing risk and predictability for each project.  

10.4.2 Agreeing up front how priorities will work

DSDM defines what the different priorities mean – the MoSCoW Rules. But whereas the definition of a Must Have is not negotiable, the difference between a Should Have and a Could Have can be quite subjective. It is very helpful if the team agree, at the start of their project, how these lower level priorities will be applied. Understanding in advance some objective criteria that separate a Should Have from a Could Have and ensuring that all roles on the project buy into what has been agreed can avoid much heated discussion later. Look for defined boundaries that decide whether a requirement is a Should Have or a Could Have?

Ideally this agreement is reached before the requirements are captured.   

10.4.3 When to prioritise

very item of work has a priority. Priorities are set before work commences and the majority of this prioritisation activity happens during Foundations. However, priorities should be kept under continual review as work is completed. As new work arises, either through introduction of a new requirement or through the exposure of unexpected work associated with existing requirements, the decision must be made as to how critical it is to the success of the current work using the MoSCoW rules. When introducing new requirements, care needs to be taken not to increase the percentage of Must Have requirement effort beyond the agreed project level. The priorities of uncompleted requirements should be reviewed throughout the project to ensure that they are still valid. As a minimum, they should be reviewed at the end of each Timebox and each Project Increment.  

10.4.4 Discussing and reviewing priorities

Any requirement defined as a Must Have will, by definition, have a critical impact on the success of the project. The Project Manager, Business Analyst and any other member of the Solution Development Team should openly discuss requirements prioritised as Must Have where they are not obvious Must Haves (“Without this would we cancel the project/increment?”); it is up to the Business Visionary or their empowered Business Ambassador to explain why a requirement is a Must Have. The escalation of decision-making processes should be agreed early on, e.g. Business Ambassador and Business Analyst to Business Visionary to Business Sponsor, and the level of empowerment agreed around decision-making at each level. At the end of a Project Increment, all requirements that have not been met are re-prioritised in the light of the needs of the next Increment. This means that, for instance, a Could Have that is not met in one Increment may be reclassified subsequently as a Won’t Have for the next Increment, because it does not contribute enough towards the business needs to justify its inclusion. However, it could just as easily become a Must Have for the next Increment, if its low priority in the first Increment was based on the fact it was simply not needed in the first Solution Increment.  

10.5 Using MoSCoW to Manage Business Expectations

The MoSCoW rules have been defined in a way that allows the delivery of the Minimum Usable SubseT of requirements to be guaranteed. Both the Solution Development Team and those to whom they are delivering share this confidence because the high percentage effort of Shoulds and Coulds provides optimum contingency to ensure delivery of the Must Haves. The business roles can certainly expect more than delivery of only the Must Haves. The Must Haves are guaranteed but it is perfectly reasonable for the business to expect delivery of more than the Minimum Usable SubseT in the timeframe, except under the most challenging of circumstances. DSDM’s recommendation to create a sensible pool of Could Have contingency – typically around 20% of the total project/increment effort - identifies requirements that are less important or which have less impact if not delivered, in order to protect the more important requirements. This approach implies that the business can reasonably expect the Should Have requirements to be met, in addition to all of the Must Haves. It also implies that in a best case scenario, the Could Have requirements would also be delivered. The Solution Development Team cannot have the confidence to guarantee delivery of all the Must Have, Should Have and Could Have requirements, even though these have all been estimated and are included in the plan. This is because the plan is based on early estimates and on requirements which have not yet been analysed in low-level detail. Applying pressure to a team to guarantee delivery of Musts, Shoulds and Coulds is counter-productive. It usually results in padded estimates which give a false perception of success. “We always achieve 100% (because we added significant contingency to our figures”). So, combining sensible prioritisation with timeboxing leads to predictability of delivery and therefore greater confidence. This also protects the quality of the solution being delivered. Keeping project metrics to show the percentage of Should Haves and Could Haves delivered on each Project Increment or Timebox will either re-enforce this confidence, if things are going well, or provide an early warning of problems, highlighting that some important (but not critical) requirements may not be met at the project level.  

10.6 How does MoSCoW Relate to the Business Vision

10.6.1 The Business Sponsor’s perspective

The starting point for all projects is the business vision. Associated with the business vision are a set of prioritised requirements that contribute to delivery of the vision. Also associated with the business vision is a Business Case that describes the project in terms of what value it will deliver back to the business. Depending on the organization, this Business Case may be an informal understanding or it may be defined formally, showing what Return On Investment (ROI) is expected in order to justify the cost of the project. The MoSCoW priorities are necessary to understand the Minimum Usable SubseT and the importance of individual requirements. The Business Visionary must ensure that the requirements are prioritised, evaluated in business terms, and delivered to provide the ROI required by the Business Case, in line with the business vision.  

10.7 Making MoSCoW Work

Requirements are identified at various levels of detail, from a high-level strategic viewpoint (typically during Feasibility) through to a more detailed, implementable level (typically during Evolutionary Development). Highlevel requirements can usually be decomposed to yield a mix of sub-requirements, which can then be prioritised individually. This ensures the flexibility is maintained, so that if necessary, some of the detailed less important functionality can be dropped from the delivered solution to protect the project deadline. It is this decomposition that can help resolve one of the problems that often confront teams: that all requirements appear to be Must Haves. If all requirements were genuinely Must Haves, then the flexibility derived from the MoSCoW prioritisation would no longer work. There would be no lower priority requirements to be dropped from the deliverables to keep a project on time and budget. This goes against the DSDM ethos of fixing time and cost and flexing features (the triangles diagram in the Philosophy and Fundamentals chapter). Believing everything is a Must Have is often symptomatic of insufficient decomposition of requirements. Remember that team members may cause scope creep by working on ”interesting” things rather than the important things. MoSCoW can help avoid this.  

10.8 Tips for Assigning Priorities

1. Ensure that the business roles, in particular the Business Visionary and the Business Analyst, are fully up to speed as to why and how DSDM prioritises requirements.

2. Consider starting with all requirements as Won’t Haves, and then justify why they need to be given a higher priority.

3. For each requirement that is proposed as a Must Have, ask: ‘what happens if this requirement is not met?’ If the answer is ‘cancel the project; there is no point in implementing a solution that does not meet this requirement’, then it really is a Must Have. If not, then decide whether it is Should Have or a Could Have (or even a Won’t Have this time)

4. Ask: ‘if I come to you the night before Deployment and tell you there is a problem with a Must Have requirement and that we can’t deliver it – will you stop the Deployment?’ If the answer is ‘yes’ then this is a Must Have requirement. If not, decide whether it is Should Have or a Could Have.

5. Is there a workaround, even if it is a manual one? If a workaround exists, then it is not a Must Have requirement. When determining whether this is a Should Have or a Could Have requirement, compare the cost of the workaround with the cost of delivering the requirement, including the cost of any associated delays and any additional cost to implement it later, rather than now.

6. Ask why the requirement is needed – for this project and this Project Increment.

7. Is this requirement dependent on any others being fulfilled? A Must Have cannot depend on the delivery of anything other than a Must Have because of the risk of a Should Have or Could Have not being delivered.

8. Allow different priorities for acceptance criteria of a requirement.

9. Can this requirement be decomposed? Is it necessary to deliver each of these elements to fulfil the requirement? Are the decomposed elements of the same priority as each other? 10. Tie the requirement to a project objective. If the objective is not a Must Have, then probably neither is the requirement relating to it. 11. Does the priority change with time? For example, for an initial release a requirement is a Should Have, but it will become a Must Have for a later release. 12. Prioritise testing, using MoSCoW. 13. Use MoSCoW to prioritise your To Do list. It can be used for activities as well as requirements.   

10.9 Summary

MoSCoW (Must Have, Should Have, Could Have, Won’t Have this time) is primarily used to prioritise requirements, although the practice is also useful in many other areas. On a typical project, DSDM recommends no more than 60% effort for Must Have requirements on a project, and a sensible pool of Could Haves, usually around 20% effort. Anything higher than 60% Must Have effort poses a risk to the success and predictability of the project, unless the environment and any technology is well understood, the team is well established and the external risks minimal.

Next chapter: 11 Iterative Development

• Integrations
• Learning Center

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

Talk to an expert.

Schedule a few minutes with us to share more about your product roadmapping goals and we'll tailor a demo to show you how easy it is to build strategic roadmaps, align behind customer needs, prioritize, and measure success.

Share on Mastodon