In the rapidly evolving software product development world, teams often struggle to answer a crucial question: should they prioritize user needs or business goals? This tension and disagreement among product teams stems from the fact that there is no easy answer.
The challenge is further compounded by the need for certainty about what will ultimately drive product growth, whether business objectives or user desires. This internal conflict can lead to inferior products and hinder seamless collaboration within the organization.
The User Dilemma:
It’s a common belief that asking users directly about their needs is the way to go. However, this approach resembles Henry Ford’s famous quote: “If I had asked people what they wanted, they would have said faster horses.” Users often struggle to articulate their needs effectively because they might not fully understand the potential of a product or its future applications. Several factors influence user needs, and they are highly context-dependent:
“The needs of users can change over time based on their circumstances. During user testing, their emotions, status, and feelings may differ from the norm.”
Example:
Consider a fitness app that conducts user surveys. A user might strongly desire workout plans that require minimal effort during a stressful week at work. However, their long-term fitness goal might involve more challenging routines. Building solely based on immediate user requests can lead to a limited product scope.
The Business Dilemma:
On the other hand, aligning product development with business needs may seem like a safe bet. However, it can lead to a product that caters primarily to the internal team’s requirements, making it challenging for users to connect with the features.
Example:
Imagine a project management software platform where the internal team insists on adding complex project tracking features that the users find cumbersome. While the team might appreciate the depth of data, users may be overwhelmed and opt for a more straightforward tool that addresses their immediate needs more effectively.
So what should we do?
1. Define User Needs and Business Goals:
Begin by clearly defining user needs and business objectives through thorough research, user feedback, and an understanding of your industry. For instance, if you’re in the e-commerce sector, user needs might include faster checkout processes, while business goals could be to increase conversion rates and revenue.
2. Identify the Intersection:
Identify the common ground between user needs and business objectives. In our e-commerce example, the faster checkout process aligns with user needs for convenience and business goals for higher conversion rates.
3. Prioritize Initiatives:
To maximize impact with limited time and resources, consider the following techniques:
Scenario Planning Definition
Helps develop and analyze plausible descriptions of how the future might unfold. Organizations can use this process to prepare for a range of potential futures, both positive and negative.
Involves creating multiple future scenarios and prioritizing business needs based on their significance and potential impact within the diverse scenarios.
Scenario planning is a strategic way for organizations to anticipate different future possibilities. It involves four steps:
Identify key drivers: Recognize external and internal factors influencing the future.
Develop scenarios: Create distinct, plausible future scenarios based on these drivers.
Assess implications: Analyze how each scenario impacts the organization’s strategy, operations, and finances.
Develop contingency plans: Prepare strategies for each scenario’s challenges and opportunities.
Example:
A tech company could apply scenario planning for the future of AI by considering factors like AI technology advancements, customer expectations, and AI regulations. It then crafts scenarios and corresponding strategies, such as investing in new AI products or preparing for stricter AI regulations.
In summary, scenario planning is vital for organizations to enhance strategic decision-making and adaptability in a dynamic environment.
RICE Scoring
I have seen that teams are constantly bombarded with new ideas and requests. But with limited resources, working on everything at a time is possible. That’s where RICE scoring comes in.
RICE scoring is a data-driven framework that helps product teams prioritize ideas based on their potential impact, reach, confidence, and effort.
Reach: How many people will this impact?
Impact: How much will this impact each person?
Confidence: How confident are you in your estimates?
Effort: How much effort will this take?
For each factor, teams assign a score of 1–3, with 3 being the highest. The RICE score is then calculated by multiplying the four factors together.
Example:
A feature to streamline the checkout process might have a high RICE score, making it a top priority for product teams.
Explanation:
Feature: Streamline checkout process
Reach: High (all users) This feature would impact many users, as everyone who uses the product needs to go through the checkout process.
Impact: High (increased conversion rates and revenue) Streamlining the checkout process can lead to increased conversion rates and revenue, as users are more likely to complete their purchase if the process is easy and convenient.
Confidence: High (strong data supporting the need) There is strong data supporting the need for a streamlined checkout process, as studies have shown that users are more likely to abandon their carts if the checkout process is too long or complicated.
Effort: Medium Streamlining the checkout process may require some development work, but it is generally a medium-effort task.
RICE score: High
Overall, a feature to streamline the checkout process has a high potential impact on users and the business, and it is a relatively straightforward task to implement. This makes it a prime candidate for prioritization using RICE scoring.
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Opportunity Cost Analysis
Analyze the opportunity cost of not addressing specific needs. For instance, you may lose potential customers and revenue if you neglect the faster checkout process. Prioritize initiatives that carry the highest opportunity cost.
Create the Roadmap
Once you’ve prioritized your initiatives, create a detailed roadmap that outlines when and how each will be executed. Ensure there’s a logical order, accounting for dependencies, and allocate resources accordingly.
Conclusion
In the world of software product development, balancing user needs and business goals is essential for success. Here are the key takeaways:
Striking the right balance between user needs and business goals is crucial for optimal product development.
The intersection of user and business requirements is where the magic happens.
Techniques like RICE scoring, Opportunity Cost Analysis, and Scenario Planning help make informed decisions.
A balanced approach ensures user satisfaction, business growth, and long-term success.
