Week 12 · learning day 3
EVA and NPV
Managing Product Performance & Metrics · 45–60 minutes
Today’s outcomes
- Explain eva and npv in the context of managing product performance & metrics.
- Analyse a product decision using the source outcome rather than intuition alone.
- Produce a reusable section of a performance scorecard.
Source trace
W12-O03Explain ROMI, EVA and NPV.
Core lesson
Make the choice inspectable
EVA and NPV matters when it changes a real allocation of attention, money, time, or delivery capacity. Choose metrics that reveal durable value, not only near-term activity.
Start by naming the decision and the uncertainty around it. Separate evidence from assumptions, compare at least one alternative, and state what would make you revise the choice.
The source outcome for today is: Explain ROMI, EVA and NPV.
What decision will eva and npv improve, what evidence is sufficient for that decision, and what is the cost of being wrong?
Worked example
EVA and NPV in practice
For a supplier collaboration platform, the product manager must analyse a choice about eva and npv. The team records the target user and outcome, the evidence currently available, the strongest alternative, and the next reversible test. The recommendation is written as a choice with a reason—not as a list of features.
Do the work · 20 minutes
Turn the idea into a decision
- Choose a product you know and write the specific decision that eva and npv should support.
- List two pieces of evidence, two assumptions, and one credible alternative.
- Make a recommendation in three sentences and add one condition that would change it.
Save to your portfolio
A performance scorecard — section: EVA and NPV
Knowledge check
Answer before opening
What is the decision at the centre of eva and npv?
A good answer names an accountable choice, not merely an activity or output.
How should evidence and assumptions be separated?
Label observed facts, interpretations, and untested beliefs explicitly so the next learning step is visible.
What makes the recommendation revisable?
It includes a trigger, threshold, or new evidence that would justify changing course.
What should the portfolio artefact communicate?
The context, considered alternatives, chosen direction, rationale, evidence, and remaining risk.
Spaced review
Reconnect the learning
Reflection