Outcomes Over Output
Product

Outcomes Over Output

Josh Seiden
Read 2 May 2020

Review

The phrase "outcomes over output" gets said in product rooms constantly, and most people saying it cannot give you a clean definition of either word. Seiden can. The whole book builds from a single sentence: an outcome is a change in behavior that drives business results. That definition earns its place because it gives you something you can actually point at and measure, which turns a principle most teams invoke loosely into a real management tool. What I valued most is that the book does not stop there. It extends the logic to executive goal-setting, team-level experimentation, and how to apply outcome thinking to organizational change programs. For something this short, the scope is genuinely ambitious. Worth reading once, and rereading when OKR season arrives.

Key Takeaways

The parts worth keeping

Three modes of management

Mode What it means
Managing output Telling teams what to build. Features don't automatically create value, so this mode often misses the point.
Managing impact Setting high-level goals like growing revenue. Correct direction, but too abstract to guide daily decisions.
Managing outcomes Asking teams to create a specific behavior that drives results. Gives them room to find solutions while staying focused on delivering value.

What executives care about

Jared Spool's five impact-level metrics:

  1. Increasing revenue
  2. Decreasing costs
  3. Increasing new business and market share
  4. Increasing revenue from existing customers
  5. Increasing shareholder value

Finding the right outcome

The Magic Questions

  1. What are the user and customer behaviors that drive business results?
  2. How can we get people to do more of those behaviors?
  3. How do we know that we're right?

Hypothesis-driven work

Frame an outcome goal as a hypothesis:

We believe that if we increase the rate at which buyers and sellers meet early in the process, it will lead to more successful transactions (as measured by X) and higher user satisfaction (as measured by NPS.)

We think we can increase the rate of early meetings [with this idea] and [with this idea] and [with this idea.] We will work on testing these ideas in Q1 of the coming year.

OKRs and roadmaps

Applying outcomes to organizational change

  1. Treat your colleagues as customers
  2. Everything is an outcome
  3. Everything is an experiment