What is the difference between outputs and outcomes

Instead, you need to express these outputs in terms that the business understands—showing exactly how they contribute to the business outcomes. This provides clear business context and shows the value that IT outputs deliver. Many of the business owners have been working there for 20 years or longer, so they find it difficult to translate the work they do currently to the proposed new services.

Workshops made apparent a big reason for these difficulties: the team was often thinking in terms of the outputs they currently produce, then attempting to transition these to the digital platform. Changing this thinking was essential.

I asked the team to articulate the business outcomes they need to achieve—this completely changed the direction of this and subsequent workshops.

With the desired business outcomes clearly stated, the team was able to let go of historic outputs and define new outputs that would enable their business outcomes to be achieved. This realization was a watershed towards a new way of working. Now, when the team gets stuck in discussions on process, they pull back to stated outcomes.

This focuses them on the outputs they require, stepping away from old processes in order to build new processes.

On the other hand, an outcome is the level of performance or achievement that occurred because of the activity or services your organization provided. Outcome measures are a more appropriate indicator of effectiveness. Outcomes quantify performance and assess the success of the process. Outputs e. Nor does it demonstrate how the lives of the customers were impacted. Outcomes answer questions, such as:. Too often social sector organizations are only measuring outputs and they think they are doing enough.

Sometimes a perception that it is too hard or impossible to measure outcomes stops leaders from collecting key outcomes data. This faulty thinking makes it difficult for organizations to demonstrate to funders how their organization is achieving their mission. It also means that organizations are making decisions that may not be directly related to the quality and impact of their services. Understanding your outcomes will inspire positive change and advancement.

Outcome is linked to objectives. They are usually tangible. Outcomes are difficult to measure or validate. They are usually intangible. Outputs are the means to end. Outcomes are the end results. Technology Is the Conduit Between Businesses and Customers Technology has become the foundation for doing business, and no longer just a back-office function done within a business.

Why Is This So Important? Why is this so important? Shift to outcome mode by working with business colleagues to define IT services in terms of business value and outcomes. Instead, collaborate with business colleagues to define how to measure the outcomes from the use of IT services — and then regularly publish those measures.

Recognize and reward achievement of outcomes — I once worked with an organization that rewarded associates for closing incident records.

This resulted in a behavior of closing low impact, low urgency incidents at a faster rate and volume than higher impact and urgency incidents. Instead, regularly celebrate the achievements of business outcomes, and recognize the IT contribution to those achievements. And invite your business colleagues to be part of those celebrations.

About the Author. Doug Tedder Doug is an ITSM and process improvement consultant, trainer, and accidental social media savant, enabling IT organizations to transform, sustain, and grow real business value. Did you find this interesting?