Outputs vs. outcomes

What’s the difference between outputs and outcomes? Outputs are "The What". Outcomes are "The Why".

• What’s the difference between outputs and outcomes?
• Why does it matter?
• Outcome management
• Outcome vs impact
• Outcome objectives
• Related
• See also

What’s the difference between outputs and outcomes?

Outputs are "The What".

• Outputs are the stuff we produce, be it physical or virtual, for our customers.

• Examples: products, services, profits, revenues, reports, workshops, transactions, tickets, plans, etc.

• An output is what is created at the end of a process.

• Focus is activity-driven.

• Typically immediate; when you complete a process, you get an output.

Outcomes are "The Why".

• Outcomes are the benefits that our customers receive from our stuff.

• Examples: a happier person, a stronger relationship, a change in behavior, a greater understanding, a satisfied customer, etc.

• An outcome is the achievement that occurred because of the the work.

• Focus is impact-driven.

• Typically not immediate; when you complete a process, you measure the outcome over time.

Why does it matter?

The differences between outputs and outcomes matter because success is all about outcomes, not outputs. Good projects plan for the outputs to lead to outcomes.

When you understand the words, then you can communicate more clearly with stakeholders, such as your customers, investors, partners, donors, and the like.

When you aim your organizational goals toward outcomes, rather than outputs, then you're aiming toward impact, rather than activity.

Measurement of outputs and outcomes

Outputs:

• Measurement tends to be in terms of: counts, commodities, completions.

• Measurement example: number of products we built last month.

Outcomes:

• Measurement tends to be in terms of: efficacy, efficiency, effectiveness.

• Measurement example: customer satisfaction score as it changes over time.

Outcome management

Identify a target, which is a goal, or purpose, or mission, etc.

Identify the target's indicators, which are quantitative and show in real time whether you are on track or not.

Present the target and indicators, in terms that everyone understands.

Work toward the target, and use the indicators and any other evidence to course correct.

Present achievements that demonstrate the true value of what the organization is doing.

Present achievements in ways that important audiences can understand.

Outcome vs. impact

Impact is the degree to which the outcomes are attributable to the organization's work.

Example: the impact of the a soup kitchen is the degree to which a reduction of hunger in the population they serve is attributable to its efforts. Suppose a soup kitchen starts serving more meals; the meals are outputs. Suppose a soup kitchen observes that hunger is subsequently less prevalent in the population it serves; the reduction in hunger is an outcome. However, the reduction in hunger might be attributable to something other than the meals, such as an improving economy, or an unrelated school lunch program, or some other activities that are not part of the soup kitchen’s efforts.

Outcome objectives

Growth example:

• Improve {topic} growth. Objective: grow {x%} during {timeframe}. Measure growth by {metric}.

Score example:

• Boost {topic} score. Objective: increase from {x} to {y} by {date}. Measure score by {metric}.

Rate example:

• Accelerate {topic} rate. Objective: achieve {throughput} by {deadline}. Measure rate by {metric}.

Related

• Objectives and key results

• Key Performance Indicator

• Strategic Balanced Scorecard

See also

• It’s Not Just Semantics: Managing Outcomes Vs. Outputs

• How to Talk About Nonprofit Impact from Inputs to Outcomes

• Outputs vs. Outcomes and Why it Matters