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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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