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Planning & Processphrase · /ˌdefɪˈnɪʃən əv ˈvæljuː/

definition of value

definition of value — A clear statement of what specific outcomes, features, or benefits represent value to your customer, business, or project.

In simple English

In tech teams, the definition of value establishes criteria for measuring whether completed work actually matters. Without it, teams may build features nobody needs or optimize for the wrong metrics. It sits at the intersection of business goals, user needs, and technical feasibility. Product managers, stakeholders, and engineers collaborate to articulate this before sprint planning begins. Unlike the definition of done (which is about completion standards), the definition of value answers the question: why are we building this?

Understanding what makes work valuable in agile and product development contexts

At a glanceCEFR B2
Commonness4/5
Versatility4/5
FormalityCasualFormalFormal
Spoken ↔ WrittenSpokenWrittenBoth
Directness ↔ DiplomaticDirectDiplomaticDirect
RegionUS and UK

Say it like this

  • We need to align on the definition of value before proceeding
  • The definition of value helps us prioritize the backlog
  • If we don't have a clear definition of value, we will waste effort

Use it at work

Planning

  • What's the definition of value for this customer?
  • Let's write a definition of value before we prioritize.

With stakeholders

  • For this client, value means faster reports, not more features.
  • Our definition of value is time saved for the finance team.

Reviewing

  • Does this feature match our definition of value?
  • We delivered features, but not the value they wanted.

Don't say this

✕We finished the definition of value on time.
✓We established the definition of value before starting development.

Definition of value is not a deliverable you finish; it is a framework you create and use to guide work.

Practice

Try it

4 quick exercises

Complete the sentence

1. Before sprint planning, product and engineering must _______ on the definition of value.

Spot the mistake

2. Which sentence uses definition of value incorrectly?

Pick the most natural phrasing

3. You are in a meeting about a new feature. Which sounds most professional?

Rewrite naturally

4. Rewrite this in natural tech English: 'We need to decide what this feature is supposed to achieve for the business before we start building it.'

Say it out loud

Phrase 1 of 3

"We need to align on the definition of value before proceeding"

We don't save your recording. The word check uses your browser's speech recognition.

More about definition of value

Real examples(3)

  • in a product planning meeting

    "Our definition of value for this quarter is reducing API response time by 40 percent, not adding new endpoints."

  • in a sprint kickoff

    "The definition of value for the authentication module is increasing user login success rate, so every feature should support that goal."

  • in a stakeholder review

    "We should revisit our definition of value because user retention matters more than feature count right now."

More mistakes(2)

Handle with care. Often confused with 'definition of done' or 'value proposition'. DoV specifically clarifies what makes work valuable to the business or user, not when it is complete.

  • ✕The definition of value is the same as the definition of done.
    ✓Definition of value is about business impact; definition of done is about completion criteria.

    These are separate concepts. DoV answers why; DoD answers when something is finished.

  • ✕We defined value for the whole product last year.
    ✓We revisit and refine our definition of value each quarter as priorities shift.

    Business and user needs change; your definition of value should evolve with them.

Other forms(2)

  • definition of value phrase

    "The definition of value guides our backlog prioritization."

  • definition of value (singular/uncountable) noun

    "A clear definition of value reduces scope creep."

Often used with(5)

  • establish the definition of value · Create or set the definition of value at the start of a project or quarter
  • align on the definition of value · Get agreement from all stakeholders on what counts as valuable work
  • revisit the definition of value · Review and update it periodically as business needs change
  • clear definition of value · One that everyone understands and can measure against
  • definition of value for [feature/project] · Specify which work or initiative the definition applies to

Similar words(3)

  • value statement · More general; can refer to company values or benefit statements
  • success criteria · Slightly narrower; focuses on measurable outcomes rather than overall value philosophy
  • business objective · Broader; may include timelines and resource constraints alongside value

Opposites(3)

  • waste
  • distraction
  • scope creep

Questions(4)

What is the difference between definition of value and definition of done?
Definition of value answers why you are building something and what outcome matters. Definition of done answers when a task or feature is complete and meets quality standards. DoV is about impact; DoD is about completion checklist.
Who is responsible for creating the definition of value?
Typically product managers or business stakeholders lead, but engineering and design should contribute. It must be a team effort so everyone understands and agrees on what value looks like.
How do you measure if the definition of value is met?
You establish concrete metrics aligned with the definition—such as user retention, response time, error rates, or revenue. These metrics become your way to verify that the work delivered actual value.
When should you create a definition of value?
Early in project planning, before sprint planning or development begins. Revisit it each quarter or when priorities shift to ensure alignment with current business goals.
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