Product Talk · Free post · Product strategy & vision · Metrics, data & experimentation

Shifting from Outputs to Outcomes: Why It Matters and How to Get Started

Teresa TorresJul 17, 202412 min
SourceProduct Talk
KindFree post
PublishedJul 17, 2024
Originalproducttalk.org ↗
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Teresa Torres argues that a clear desired outcome sets the scope, latitude, and success measure for product discovery, yet many teams struggle to define one. She distinguishes outcomes (the impact of work on customers or the business) from outputs (what gets built), using Slack integrations as an example. The piece explains why product teams are shifting toward outcomes: the future is unpredictable and shipping software does not guarantee impact. It offers practical guidance on who should set outcomes, how long to pursue them, how many a team should carry, and how to identify business and product outcomes. Because it addresses how to measure and steer product work, it is highly relevant to product managers and founders.

01Key takeaways

  • Define a desired outcome as the impact you want on customers or the business before starting discovery.
  • Distinguish outputs (what you ship) from outcomes (the impact that shipping has on users and revenue).
  • Negotiate outcomes between product leadership and the product trio, combining business priorities with customer and technology insight.
  • Use learning outcomes for new opportunity spaces, and performance outcomes once the team understands what moves the metric.
  • Focus each team on a single outcome for two to three quarters or longer rather than hopping between fire drills.
  • Derive business outcomes from the revenue model, then identify product outcomes that act as leading indicators of them.

02Key sections

Defining desired outcomes
A desired outcome describes the expected impact on customers or the business and can be a metric or a directional goal. It scopes discovery and gives the team a focal point.
Outputs versus outcomes
Outputs are things built, while outcomes are the impact those outputs have on users and the business. Shipping integrations creates value only if customers use and benefit from them.
Negotiating and measuring outcomes
Product leaders bring business priorities while product trios bring customer and technology knowledge, and outcomes may be measurable or initially only conceptual. New outcomes often start as learning outcomes before becoming performance outcomes.
Focus and time horizon
Teams should work on one outcome at a time, ideally for two to three quarters or longer, and split shared outcomes so each team owns a distinct one. Outcomes change in measurement over time more than in direction.
Identifying business and product outcomes
Business outcomes come from the revenue model, while product outcomes are leading indicators of them, covering customer behavior or sentiment. Traction metrics for single features often encourage the wrong behavior.

03From the post

“A clear outcome sets the scope for discovery. It defines how much latitude a team has to explore. It sets a clear measure of success. But many teams struggle to set the right outcome. Whether they have a hard time negotiating with stakeholders, feel pressure to commit to multiple outcomes,”

“A clear outcome sets the scope for discovery. It defines how much latitude a team has to explore. It sets a clear measure of success.”Teresa Torres · Product Talk
“Shipping more integrations doesn't create value unless customers or users use and find value in those integrations.”Teresa Torres · Product Talk
“We can't, however, dive deep and truly understand multiple opportunity spaces at the same time.”Teresa Torres · Product Talk

04Frameworks mentioned

Summary and takeaways written by PM Atlas; quotes are short excerpts. © the original author.