Let’s talk about basketball. Two of your favourite teams playing against each other. A player is trying to attempt a slam dunk and scores one out of three attempts. Other player takes a normal 2-pointer jump shot and scores two out three attempts. The person taking the dunk shot is tallest and is suppose to attempt those shots, however, the other player is a server/driver and is suppose to take the regular shots. What’s important? Do a quick mental exercise and try to find what is important an how should the coach or captain plan the game. (Solution here)
Now, imagine you’re a product manager launching a new feature for your company’s flagship product. You’ve worked tirelessly to design and develop the feature, you’ve tested it with a small group of users, and you’re confident it will be a success. However, when you release the feature to the wider market, it doesn’t perform as well as you expected. You’re left wondering where you went wrong.
In your career as a product manager, you will often come across similar situation. In this blog post, I’ll explain the difference between outputs and outcomes, why outcomes are more important for measuring true product success, and how to shift your focus from outputs to outcomes as a product manager.
What are Outputs?
Outputs are the tangible things that result from the work that you do as a product manager. They are the deliverables that you produce, such as features, reports, and code. Outputs are typically easy to measure and can be tracked using metrics such as lines of code, number of features shipped, or the amount of time spent on a project.
Examples of outputs include:
- Number of features released
- Lines of code written
- Number of bugs fixed
- Time spent on a project
- Number of users signed up
While outputs can give you a sense of how much work you’re doing, they don’t necessarily tell you anything about the impact that work is having on your users or your company.
What is Outcomes?
Outcomes, on the other hand, are the real-world results that you’re trying to achieve with your work as a product manager. They are the changes you want to see in your users or your business as a result of your efforts. Outcomes are often more difficult to measure than outputs, but they are the key to measuring true product success.
Examples of outcomes include:
- Increased user engagement
- Higher revenue
- Improved customer satisfaction
- Reduced churn
- Faster time to market
By focusing on outcomes, you’re able to measure the impact that your work is having on your users and your company. This allows you to make data-driven decisions that will help you achieve your goals.
The problem with outputs
The problem with focusing on outputs is that they don’t necessarily lead to the outcomes you’re trying to achieve. For example, you could launch a new feature and measure its success based on the number of users who sign up for it. However, if those users don’t engage with the feature or if it doesn’t lead to any revenue for your company, then the feature wasn’t really a success.
Another problem with focusing on outputs is that it can lead to a “feature factory” mentality, where the goal becomes to release as many features as possible rather than focusing on the quality of those features or their impact on your users and your business.
Why product managers should choose outcomes
Product managers should choose outcomes over outputs for several reasons:
- Outcomes are more closely tied to your business goals: By focusing on outcomes, you’re able to measure the impact of your work on your business goals, such as revenue or customer satisfaction.
- Outcomes help you make better decisions: When you focus on outcomes, you’re able to make data-driven decisions based on the impact of your work rather than just the amount of work you’ve done.
- Outcomes help you prioritize your work: By focusing on outcomes, you’re able to prioritize your work based on what will have the biggest impact on your users and your business.
Process of input to output to outcomes
The process of going from input to output to outcomes can be broken down into three stages:
- Input: This is the initial stage of the process, where you gather information and resources that will enable you to achieve your desired outcomes. Inputs can include market research, user feedback, and stakeholder input.
- Output: This is the stage where you create tangible deliverables, such as features or reports, that will help you achieve your desired outcomes. Outputs are typically measured using metrics such as lines of code, number of features shipped, or the amount of time spent on a project.
- Outcome: This is the final stage of the process, where you measure the real-world impact of your work on your users and your business. Outcomes are typically measured using metrics such as user engagement, revenue, customer satisfaction, or time to market.
It’s important to note that the output stage is just a means to an end, and should be viewed as a way to achieve your desired outcomes rather than the end goal in and of itself.
How to get started with Outcomes over outputs
Shifting your focus from outputs to outcomes can be a difficult process, but it’s essential for measuring true product success. Here are some steps you can take to get started:
- Define your outcomes: Start by defining the outcomes you want to achieve with your work. These outcomes should be tied to your business goals and should be measurable using specific metrics.
- Identify your inputs: Once you’ve defined your outcomes, identify the inputs you’ll need to achieve them. This could include market research, user feedback, or stakeholder input.
- Create your outputs: With your inputs in hand, create the outputs that will help you achieve your desired outcomes. Remember that outputs are just a means to an end, and should be viewed as a way to achieve your desired outcomes rather than the end goal in and of themselves.
- Measure your outcomes: Once you’ve created your outputs, measure the impact they’re having on your users and your business. Use specific metrics to track progress towards your desired outcomes.
- Iterate and improve: Based on your outcomes, iterate and improve your outputs to better achieve your desired outcomes. Use data to inform your decisions and make changes as necessary.
The Basketball Analogy
I hope you have a better understanding of outcomes and outputs and how they impact the daily life of a product manager. The outcome for the basketball game is always to win the game. So, the objective for the entire team is to win and to win you need to score. You can score by taking different types of shots like dunk shots or regular 2-pointer jump shots. So, the type of shots become the output where the players would say that I attempted “x” number of dunks or “y” number of jumpers but did it help the team to win will be the over arching question to answer, always!
Conclusion
As a product manager, it’s essential to focus on outcomes over outputs when measuring true product success. While outputs can give you a sense of how much work you’re doing, they don’t necessarily tell you anything about the impact that work is having on your users or your company. By focusing on outcomes, you’re able to measure the real-world impact of your work and make data-driven decisions that will help you achieve your goals. Remember that outputs are just a means to an end, and should be viewed as a way to achieve your desired outcomes rather than the end goal in and of themselves.
Great content.