Outcomes Over Output Quotes

The system rewards activity and output over health improvements and outcomes.

And so, when I tell stories today about digital transformation and organizational agility and customer centricity, I use a vocabulary that is very consistent and very refined. It is one of the tools I have available to tell my story effectively. I talk about assumptions. I talk about hypotheses. I talk about outcomes as a measure of customer success. I talk about outcomes as a measurable change in customer behavior. I talk about outcomes over outputs, experimentation, continuous learning, and ship, sense, and respond. The more you tell your story, the more you can refine your language into your trademark or brand—what you’re most known for. For example, baseball great Yogi Berra was famous for his Yogi-isms—sayings like “You can observe a lot by watching” and “When you come to a fork in the road, take it.” It’s not just a hook or catchphrase, it helps tell the story as well. For Lean Startup, a best-selling book on corporate innovation written by Eric Ries, the words were “build,” “measure,” “learn.” Jeff Patton, a colleague of mine, uses the phrase “the differences that make a difference.” And he talks about bets as a way of testing confidence levels. He’ll ask, “What will you bet me that your idea is good? Will you bet me lunch? A day’s pay? Your 401(k)?” These words are not only their vocabulary. They are their brand. That’s one of the benefits of storytelling and telling those stories continuously. As you refine your language, the people who are beginning to pay attention to you start adopting that language, and then that becomes your thing.

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In most situations, initiatives are not planned in terms of outcomes. Instead, they’re much more likely to be planned and tracked in terms of features built, or in terms of how they’re tracking to some promised delivery date or other milestone. For leaders in this situation, there’s a simple question that they can use to start the conversation about outcomes: “ what (user/customer/employee) behaviors has this initiative created that are driving business results?” That question is the key to tracking progress because it moves the conversation away from features and reorients it towards value delivery.

These questions are my magic questions for finding outcomes. What are the user and customer behaviors that drive business results? (This is the outcome that we’re trying to create.) How can we get people to do more of those behaviors? (These are the features, policy changes, promotions, etc that we’ll do to try to create the outcomes.) How do we know that we’re right? (This uncovers the dynamics of the system, as well as the tests and metrics we’ll use to measure our progress.)

mistaking “making stuff” for making progress, and mistaking shipping features for being done.

There are bubbles of agile in a sea of Gantt charts with predetermined solutions, dates, and spending predicted at the point of knowing the least, an annual, bottom-up financial planning process that takes six months of the year to plan and re-plan and focuses on output over outcomes. There are “drop dead dates” and “deadlines” (in most cases it’s not life or death); RAG (red, amber, green) statuses and change control processes; a change lifecycle with twenty mandatory artifacts, most with their own stage-gate governance committee; a traditional waterfall Project Management Office; sixty-page Steering Committee decks; project plans with the word “sprint” ten times in the middle; a lack of psychological safety; a performance appraisal model that incentivizes mediocrity (underpromise to overdeliver) and uses a Think Big, Start Big, Learn Slow approach. The good news, with a charitable intent, is that the organization wants to improve.

One thing that makes it difficult to use outcomes inside larger organizations is that they’re almost never organized around achieving outcomes. Instead they’re organized around making stuff.