Concept 1 of 5

Outcome and output

3 questions test this

Output is what the scrum team produced. Features, releases, story points, items moved to Done. Outcome is what changed for a user or for the organisation as a result. The two are related but not proportional, and the gap between them is where most product effort disappears.

The relationship

Output is necessary and not sufficient. Nothing changes without something being built, and plenty gets built without anything changing. Output is entirely under the team's control, which is exactly why it is the tempting thing to measure. Outcome depends on people outside the team deciding to behave differently, which is why it is the honest thing to measure.

A useful chain runs output, then adoption, then behaviour change, then business result. Each arrow can fail. Reporting only on the first link tells you the team was busy.

Three actions that increase outcome while reducing output

Order by the outcome, then cut. For each item near the top, name the behaviour it is supposed to change. Then find the smallest version that could plausibly change it. Most items shrink considerably under that question, and some disappear.

Say no in the open. A backlog that only ever grows is a backlog nobody is deciding about. Removing items that no longer serve the Product Goal is a product owner action with an immediate effect on outcome per unit of output, because it stops work being spread across candidates that were never going to matter.

Validate before building rather than after. The cheapest feature is the one discovery showed nobody wanted. Moving evidence earlier reduces output directly.

Release smaller and watch. Each release that goes out and gets observed produces information that shortens the next one. Batching six months of work removes every opportunity to learn in between.

What to do about being measured on output

Most organisations count output because it is countable. The move that works is not to refuse the count but to attach the outcome to it. Report the feature and the behaviour it changed side by side, every time. After a few cycles the conversation moves on its own, because the cases where the first number moved and the second did not become impossible to ignore.

Common misconceptions

More output eventually produces more outcome.

Output that nobody adopts produces maintenance cost and nothing else. The relationship is not proportional, which is why a backlog can grow while the product gets worse.

Outcome is just a nicer word for a business target.

An outcome is a change in human behaviour that leads to a business result. Revenue is the result. People completing the checkout in one attempt rather than three is the outcome that produced it.

Cutting scope means giving the customer less.

It means giving them less of what they were not going to use. The smallest thing that produces the behaviour change is the thing to build, and everything past it is a hypothesis waiting to be disproved.

3 questions test this concept

A team reports that it delivered forty-two items last quarter, up from thirty-one. The product owner is asked whether the product improved. What is the accurate way to describe the relationship between these numbers and the answer?

  • AForty-two items is output. Whether anything improved depends on what changed for users and for the organisation, and output and outcome are not proportional.
  • BMore items delivered means more value, so the product improved.
  • CThe comparison is invalid because item sizes differ between quarters.
  • DThe product improved if the items met the Definition of Done.
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Outcomes Over Output, On defining work by the behaviour change it produces.
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