By Teresa Torres · producttalk.org · @ttorres on X · LinkedIn
Teresa Torres argues that product teams are often held responsible for business outcomes such as revenue, margin, or churn, which they cannot directly control. Business outcomes are lagging indicators that only reveal results after decisions have already been made. She proposes that product teams instead own product outcomes, which are leading indicators measuring observable changes in customer behavior that drive business results. Because these behaviors are observable and within the team's influence, teams can use discovery and quick feedback cycles to act on them. The piece matters because it gives product teams a concrete way to translate executive goals into focused, accountable work.
01Key takeaways
- Distinguish business outcomes (lagging, company-level) from product outcomes (leading, behavior-level) when setting team goals.
- Ask leadership which customer behaviors must change to drive the desired business result, and make those behaviors explicit.
- Choose product outcomes that are observable and measurable, so the team can see whether changes are working.
- Pick levers the team actually controls or influences, and deprioritize external factors outside its reach.
- Use discovery and frequent feedback to decide which opportunities will most likely move the product outcome.
02Key sections
- Why teams get business outcomes
- Executives track business outcomes to report progress to investors, but these are often assigned to product teams without a clear strategy. Without focus, teams face tension and opportunity costs.
- Business outcomes are lagging indicators
- By the time revenue or churn shows up, the decisions that caused it are already made. Leaders need a theory of which human behaviors will change to produce the business result.
- Product outcomes measure human behavior
- Translating business goals into observable customer behaviors creates a link between executives and product work. An example shows a B2B SaaS team using a product-market fit survey as a leading indicator for retention.
- Product outcomes are within the team's influence
- Teams should focus on behaviors they can learn about and affect, rather than external factors like customers going out of business. Discovery work helps prioritize which opportunities will move the product outcome.
- Translating outcomes and the course offer
- Product teams must do the work of converting lagging business indicators into leading product outcomes. The article closes with a promotional pitch for a course on this translation skill.
03From the post
“Good discovery starts with a clear desired outcome. A well-defined outcome provides a focal point for the product team and serves as a guiding light for their discovery efforts. It helps the team quickly identify and conserve their time and energy for the initiatives that matter most. However, when”
04Frameworks mentioned
Summary and takeaways written by PM Atlas; quotes are short excerpts. © the original author.