User Experience Balanced Scorecard

Sean Van TyneProduct Camp So Cal 2010

User Experience Balanced Scorecard, UX Matters,

June 21, 2010

http://www.uxmatters.com/mt/archives/2010/06/user-experience-balance-

scorecard.php

User Experience

Customers have experiences with an organization’s products and services regardless of whether the organization is consciously managing them.

A good user experience delights customers —increasing adoption, retention, loyalty, and, most importantly, revenue.

And a poor user experience discourages customers from using a product or service and drives them to the competition, making a product offering unviable.

Because user experience has become so important to an organization’s success in the marketplace and revenue, it is now part of their overall business strategy.

Most organizations have some system for managing their strategy and measuring their progress toward achieving their goals.

One popular system for managing and measuring strategy is Balanced Scorecard.

Balanced Scorecard

Balanced Scorecard is a system that aligns specific business activities to an organization’s vision and strategy.

It was developed in the early 1990s by Dr. Robert Kaplan of Harvard Business School and Dr. David Norton.

Using a scorecard helps organizations balance their strategic objectives across four perspectives.

Financial—The Financial Perspective examines the contribution of an organization’s strategy to the bottom line. It represents the strategic objectives of an organization in terms of increasing revenue and reducing cost.

Customer—The Customer Perspective focuses on customers’ satisfaction, which contributes to the organization’s revenue. It represents the value an organization delivers to customers, the value proposition, and the resulting customer satisfaction.

Internal Business Processes—The Internal Process Perspective is concerned with requirements for products and services that deliver the customer value proposition. It focuses on activities and key processes that are necessary for an organization to excel at providing the value customers expect.

Learning and Growth—The Learning and Growth Perspective focuses on the internal skills and capabilities an organization requires to support value-creating internal processes. This perspective includes employee training, the development of corporate cultural attitudes relating to both individual and corporate self-improvement, and the technological tools that support these activities.

User ExperienceBalanced Scorecard

The User Experience Balanced Scorecard maps the user experience process and skills to customer satisfaction and financial growth.

PERSPECTIVE USER EXPERIENCE STRATEGY

FINANCIAL Increase revenue Reduce costs

CUSTOMER Increase conversions, retention, and loyalty

Increased effectiveness (task completion) and efficiency (time on

tasks) and reduce Training and Support

PROCESS Conduct user research and iterative design review with your customers

Conduct usability evaluations with your customers’ end-users

EMPLOYEE User Researcher | Information Architect | Visual Designer Interaction Designer | Usability Engineer

PERSPECTIVE USER EXPERIENCE STRATEGY

FINANCIAL Enable revenue growth Improve customer loyalty

Increase productivity

CUSTOMER Establish product leadership and innovate through

research and analysis of target-market segmentation to determine current needs and anticipate future needs.

Improve customer intimacy through iterative design

reviews with target customers.

Improve quality of user experience.

PROCESS Research and analysis Interactive prototyping Usability evaluation

EMPLOYEE Research Analyst Information Architect, Visual Designer, and Interaction Designer

Usability Engineer

Another way of approaching this… If your company has Financial “themes”

Objectives. the major objectives a company must achieve—for example, profitable growth.

Measures. the observable parameters a company uses to measure its progress toward reaching its objectives. For example, a company might measure its progress toward the objective of profitable growth by growth in net margin.

Targets. the specific target values for the measures—For example, +2% growth in net margin.

Initiatives. action programs a company initiates to meet its objectives.

PERSPECTIVE OBJECTIVE MEASURE TARGET INITIATIVE

FINANCIAL Profitable growth Net margin 2% Action plan for profitable growth

CUSTOMER Customer satisfaction

Customer satisfaction score

5% Customer satisfaction surveys

PROCESS Designing easy-to-use solutions

Usability 70% pass rate Usability studies

EMPLOYEE Analyzing usability Usability studies For each major release

Usability plan

Build Your OwnUser Experience

Balanced Scorecard

Financial—The Financial Perspective examines the contribution of an organization’s strategy to the bottom line. It represents the strategic objectives of an organization in terms of increasing revenue and reducing cost.

Customer—The Customer Perspective focuses on customers’ satisfaction, which contributes to the organization’s revenue. It represents the value an organization delivers to customers, the value proposition, and the resulting customer satisfaction.

Internal Business Processes—The Internal Process Perspective is concerned with requirements for products and services that deliver the customer value proposition. It focuses on activities and key processes that are necessary for an organization to excel at providing the value customers expect.

Learning and Growth—The Learning and Growth Perspective focuses on the internal skills and capabilities an organization requires to support value-creating internal processes. This perspective includes employee training, the development of corporate cultural attitudes relating to both individual and corporate self-improvement, and the technological tools that support these activities.

PERSPECTIVE USER EXPERIENCE STRATEGY

FINANCIAL

CUSTOMER

PROCESS

EMPLOYEE

15

Objectives. The major objectives a company must achieve—for example, profitable growth.

Measures. The observable parameters a company uses to measure its progress toward reaching its objectives. For example, a company might measure its progress toward the objective of profitable growth by growth in net margin.

Targets. The specific target values for the measures. For example, +2% growth in net margin.

Initiatives. Action programs a company initiates to meet its objectives.

Objectives, Measures, Targets, and Initiatives

PERSPECTIVE OBJECTIVE MEASURE TARGET INITIATIVE

FINANCIAL

CUSTOMER

PROCESS

EMPLOYEE

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