Outcomes Over Output

A Path to Business Success - 07/31/23

Overview

The amazing Holly Reynolds recommended this one to me. I read it over the weekend, it’s that small. It packs a punch though, making an impact in only 86 pages! It's a fabulous and tiny book that I think every product person should read. This is my synopsis of “Outcomes Over Output” by Josh Seiden:

In today's fast-paced business landscape, the old model of focusing solely on creating and releasing products or features is rapidly becoming obsolete. A new approach, championed by experts like Seiden, is gaining momentum: prioritizing outcomes over outputs. In his latest book, "Outcomes Over Output," Seiden presents a compelling case for why businesses should shift their focus from churning out products to driving meaningful changes in customer behavior. In this blog post, we'll explore the key insights from the book and how this customer-centric approach can lead to long-term success for your business.

Defining outcomes

At the heart of "Outcomes Over Output" lies a fundamental concept: outcomes are not merely the result of making 'stuff' but rather the changes in human behavior that lead to tangible business results. Josh Seiden defines outcomes as "a change in human behavior that drives business results." In other words, it's not just about what you create; it's about the impact your creations have on customers and users.

Value delivery—Early and continuous

Seiden emphasizes the importance of delivering value to customers early and continuously, rather than relying on big-bang product releases. By creating specific, smaller customer behaviors that drive business results, businesses can build momentum and achieve measurable outcomes. For instance, enabling users to create music playlists might increase their lifetime value as customers. This aligns with the first Agile principle of satisfying customers through early and continuous delivery of valuable software, which Seiden updates to focus on delivering value in today's context.

Experiments and MVPs

To achieve desired outcomes, Seiden encourages businesses to view Agile projects as a series of hypotheses and experiments. Rather than considering the Minimum Viable Product (MVP) as version 1.0 of a product, he defines it as the smallest thing you can create to test your hypothesis. This approach allows for constant learning and adaptation, ultimately leading to the best solutions that drive the desired behavioral changes.

Identifying the right outcomes

One of the most critical aspects of Seiden's approach is determining the right outcomes to focus on. Teams can start by asking simple questions such as "What are the customer behaviors that drive business results?" From there, setting an "impact level target" provides a measurable goal to work towards. By identifying customer behaviors that predict successful outcomes, teams can focus on observable and measurable results.

The magic questions

Seiden shares "The Magic Questions" to aid in pinpointing the right, measurable outcomes. These questions include:

• What are the user and customer behaviors that drive business results? (the desired outcome)
• How can we encourage more of these behaviors? (the actions to be taken)
• How do we know if we're on the right track? (the tests and metrics for measurement)

Planning with outcomes in mind

Instead of building plans solely around outputs or features, Seiden suggests planning around themes of work, problems to solve, or outcomes to deliver. This approach acknowledges the uncertainty surrounding output-based planning and focuses on the core objectives, enabling businesses to adapt their roadmaps based on the outcomes they want to achieve.

Conclusion

"Outcomes Over Output" presents a transformative approach to business success by shifting the focus from outputs to outcomes. By aligning customer behaviors with specific business results, this customer-centric strategy can drive meaningful change and foster long-term success. Embracing "Outcomes Over Output" can empower businesses to make a genuine impact on customer behavior for all the right reasons. So, are you ready to embrace this new paradigm and create outcomes that truly matter? The time to start is now!