An outcome is a change in human behavior that drives business results.
Usually, we focus on creating features or outputs and it does not create value automatically, but "we should have a focus on creating outcomes".
Outcomes happen when you deliver the right features. Ideally, they happen when you deliver as few features as possible.
So which team is better: the one that delivers a lot of features, or the one that delivers few features aligned with outcomes.
Program Logic Model
This is the structure of the Program Logic Model from the social impact sector (Matriz de Marco lógico).
- RESOURCES->ACTIVITIES->OUTPUTS->OUTCOMES->IMPACT
- RESOURCES (people, material, money, and another thing we need)
- ACTIVITIES (traveling to the village, acquiring and transporting our materials, building a well)
- OUTPUT (a well)
- OUTCOME (people in the village spend less time carrying water) <- The behavior that creates positive results.
- IMPACT (a high standard of living in life).
Other examples:
We want our customers to log onto our site more often.
First Agile Principle-> our highest priority is to satisfy the customer through early and continuous delivery of value. But what value means. We know that if we ask "what is the customer behavior change that we are looking for?".
We could have asked, "why is so important to build an app?". Could we have imagined Sw tool that took less than two years to build, but still got people to log in every day? Absolutely!
The simple answer is that you frequently can't know in advance.
When you combine outcome-based targets with processes that are based on running experiments, you really start to unlock the power of agile approaches.
For example, how to test the well? By bringing water with pumps for a week to the center of the town.
Combining experiments with outcomes is a really powerful way to work. especially in situations of high uncertainty.
You set a goal, design an experiment, then you test and learn, test and learn, test and learn until eventually find out the best solution.
Instead, think of MVP as the smallest thing you can do or the smallest thing you can make to learn if your hypothesis is correct.
Managing by outputs is a problem because features don always ever valued.
Magin by impacts is not specific enough.
Manage by outcomes by asking teams to create a specific customer behavior that drives business results.
Defining outcomes creates a more customer - centric and user - centric way of working. Test and run experiments. MVP is just a buzzword that means experiment.
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