In the bustling world of product management, a constant tug-of-war plays out in the minds of product managers daily: the battle between output and outcome. But why does this matter, and how does it affect the way products are conceived, developed, and launched? In this exploration, we’ll dive deep into the essence of this dilemma, uncovering insights that could very well shape the future of product management.
The Crossroads of Innovation
Picture this: a product manager standing at a crossroads. One path leads towards a tangible, immediate output – a new feature, a fresh update, a revolutionary interface. The other path veers into the more abstract realm of outcomes – user satisfaction, market impact, and long-term success. This metaphorical crossroads is where many product managers find themselves daily, making decisions that will not only affect their product but also the overall direction of their organization.
Dissecting the Dilemma
Output: The Tangible Path
Output in product management refers to the actual artifacts or deliverables produced as a result of the development process. This could range from a new app feature, a bug fix, to an entirely new product.
The allure of output:
- Quantifiable: Easy to measure and track.
- Visibility: Creates a sense of progress and accomplishment.
- Control: More direct influence over the development process.
However, focusing solely on output can lead to a tunnel-vision approach where the quantity of what’s produced overshadows the quality or impact of the deliverable on the user or market.
Outcome: The Abstract Journey
On the flip side, outcome focuses on the overall impact or the results that those outputs achieve. It’s about looking beyond the product itself to understand how it fits into the bigger picture of user needs and market demands.
The power of outcome:
- User-Centric: Prioritizes the needs and satisfaction of the end-user.
- Long-term Value: Focuses on sustainable success rather than immediate gains.
- Adaptability: Encourages a flexible approach to product development, open to pivoting based on feedback and market trends.
Focusing solely on outcomes can also have its pitfalls, such as potential delays in deliverables or the challenge of measuring abstract concepts like “user satisfaction” in tangible terms.
Striking a Harmonious Balance
The key to effective product management doesn’t lie in choosing output over outcome or vice versa but rather in finding a balance between the two. Here are a few strategies to consider:
- Define Clear Goals: Set both output and outcome goals for your projects. This ensures you’re not only delivering artifacts but also keeping an eye on the bigger picture.
- Engage with Your Users: Regular feedback sessions with your users can help you align your outputs with the desired outcomes.
- Measure What Matters: Develop a set of KPIs that reflect both the quantitative and qualitative success of your projects.
- Adopt Agile Practices: Agile methodologies encourage a balanced focus on delivering tangible products while also adapting to feedback and changing market conditions.
My personal experience
There have been times in the initial years of my career when I worked in business consulting, and was measured based on outputs such as number of papers published, blogs published on external forums such as Forbes, thought leadership decks created, participation in client RFPs etc. The focus of these goals was never on what the impact was? E.g How much was the engagement on an article published. But, as I moved into core Product roles, my leaders and mentors taught me how to start navigating through the maze and learn how to say “No’ to 20 things, and produce 2 or 3 very high impact deliverables. This is where I learnt the concept of OKRs (Objectives and Key Results – which in itself deserves an article), and over the years have learnt how to clearly classify “Product outcomes’ and ‘Business outcomes’.
You may produce great features, which may be deemed only outputs if your sales teams do not own up to ‘New customer onboarding’ or ‘Acquisition’, ‘Conversion’ and ‘Retention’ goals jointly with you (Which may be business outcomes). For e.g when working at Walmart, while my focus was on building an amazing driver management and driver onboarding platform, I worked with an excellent team of Operations partners who owned up to KPIs that were specific to Driver onboarding experience (Such as driver NPS), without which the Product outcomes could only be rendered plain Outputs with negligible impact.
Conclusion: The Path Forward
In the end, the dilemma of output versus outcome is not about choosing one path over the other but about understanding the importance of both. Product managers who navigate this dilemma successfully are the ones who deliver products that not only meet the immediate needs of their users but also drive long-term success and innovation in the market.
Remember, the journey of a product manager is not just about building things but about building the right things for the right reasons. By balancing the focus on output and outcome, product managers can ensure that they are not merely creating products but are creating value for their users and their organizations.
“The true measure of success in product management is not just delivering a product but delivering value.”
In our quest to push the boundaries of product management, let us not lose sight of this essential balance. After all, in the maze of product development, the true path to success is forged by those who can navigate the intricate balance between creating tangible outputs and achieving meaningful outcomes.
