The purpose of creating a Business Challenges is to help you reach your goals. It helps you to:
Do innovative thinking. Ambitious goals require that you step back and think: "What would it take to reach this goal?"
Focus. Challenges help you make sure you work towards the right goals—usually, fewer things.
Align. Targets might have implications for product roadmap decisions - that's good to know in advance.
Accountability. Track progress towards the goal weekly.
Your company-wide goal is to become the market leader. As part of the strategy, your objective is to “Reduce churn from 10% to 5%."
With the challenge defined, you can now start looking for ways to resolve the challenge. The challenge helps you to work customer-centric. Questions and specific customer groups (more on Customer Persona here) arise and help you understand things from your customers' perspective.
Questions that will automatically popup are:
Why are people churning? Can we find patterns?
What do they do before leaving us?
What can we do better, so people stay?
Are they going to someone else after leaving?
A great way to find the real problems from the customer's perspective is by mapping their journeys. Once you know how your Customer Journey relates to the business challenge, you can prioritize that particular customer problem to solve your business challenge.
Tips for writing a good Business Challenge:
Less is more. Challenges are not a laundry list of all the things you need to do, but specifies priorities.
Tie your business challenge directly to our company-wide goals. Give team members a clear line of sight from their work to company goals.
Challenges are clear, aspirational, and measurable.
Include team members in the process.
Be audacious. If our goals aren't big, then the results won't be either.