Should SHL prioritize developing new assessment types or improving the user experience of existing ones?

Introduction

The trade-off question at hand is whether SHL should prioritize developing new assessment types or improving the user experience of existing ones. This scenario involves balancing innovation with optimization, considering the impact on users, business goals, and long-term product strategy. I'll analyze this trade-off by examining the current product landscape, potential impacts, key metrics, and experimental approaches to inform a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming SHL is a well-established player in the assessment industry. Could you confirm if this is correct, and if there have been any recent market shifts or competitor moves that are driving this decision?

Why it matters: Helps frame the urgency and strategic importance of the decision. Expected answer: Confirmation of market position and potential competitive pressures. Impact on approach: Would influence the balance between innovation and optimization.

• Business Context: Based on SHL's typical business model, I'm thinking this might impact both B2B and B2C revenue streams. Can you share how our revenue is currently split between new assessment sales and recurring revenue from existing customers?

Why it matters: Helps prioritize solution against business objectives and customer retention vs. acquisition. Expected answer: Breakdown of revenue sources and growth targets. Impact on approach: Would guide the focus on new features vs. improving existing user experience.

• User Impact: I'm assuming we have diverse user segments, including test-takers and organizational buyers. Can you provide insights into which user group is currently experiencing the most friction or requesting new features?

Why it matters: Identifies the most pressing user needs and potential areas for improvement. Expected answer: Data on user satisfaction and feature requests across segments. Impact on approach: Would help prioritize which aspects of the product to focus on.

• Technical Feasibility: Considering our current tech stack, I'm curious about the complexity of developing new assessment types versus optimizing existing ones. Could you give me an overview of our technical capabilities and any constraints we're facing?

Why it matters: Assesses the feasibility and resource requirements for each option. Expected answer: Overview of technical capabilities and potential limitations. Impact on approach: Would influence the timeline and resource allocation for each option.

• Resource Allocation: Given the scope of both options, I'm wondering about our team's current capacity. Can you share how our product and engineering resources are currently allocated between new feature development and maintenance/optimization?

Why it matters: Helps understand the realistic capacity for undertaking new initiatives. Expected answer: Breakdown of current resource allocation and any flexibility. Impact on approach: Would impact the scale and timeline of potential solutions.