Everyone is talking about the "outcomes."
But many people, and even some @Scrumdotorg posts, cannot define it properly (scrum.org)
Let's clear it up. There are three types of outcomes: ๐งต
#productmanagement #agile
But many people, and even some @Scrumdotorg posts, cannot define it properly (scrum.org)
Let's clear it up. There are three types of outcomes: ๐งต
#productmanagement #agile
1. Business outcomes
Those are metrics connected to the organization's goals like:
- increase revenue
- lower operating costs
- grow market share
- grow profit margin
- reduce churn rate
They allow stakeholders to track the company's progress (e.g., profit margin grows by 5%).
Those are metrics connected to the organization's goals like:
- increase revenue
- lower operating costs
- grow market share
- grow profit margin
- reduce churn rate
They allow stakeholders to track the company's progress (e.g., profit margin grows by 5%).
Business outcomes are lagging indicators. On top of that, product teams are typically not able to influence them directly, so they need to be translated into product outcomes.
2. Product outcomes
We may decide that a way to decrease the churn rate (impact a business outcome) is to increase customer engagement, measured, for example, as the total number of hours customers watch videos every month.
We may decide that a way to decrease the churn rate (impact a business outcome) is to increase customer engagement, measured, for example, as the total number of hours customers watch videos every month.
As @jseiden noticed in "Outcomes over Output," these outcomes are always associated with a change in human behavior. He defined outcomes as "a change in human behavior that drives business results."
An example: "every month, customers spend 30 min. more watching videos."
An example: "every month, customers spend 30 min. more watching videos."
Both business and product outcomes outlined above are in line with "Continuous Discovery Habits" by @ttorres
3. Customer outcomes
Customers do not care about the output (features). The three types of customer outcomes, as defined in the "Product-Led Growth" by @wes_bush, are:
- Functional outcomes. The core tasks the customer wants to get done. For a car, it's traveling from A to B.
Customers do not care about the output (features). The three types of customer outcomes, as defined in the "Product-Led Growth" by @wes_bush, are:
- Functional outcomes. The core tasks the customer wants to get done. For a car, it's traveling from A to B.
- Emotional outcomes. How do customers want to feel or avoid feeling as a result of using your product? Is it safety, freedom, joy, taking care of the environment, or adrenaline?
- Social outcomes. How do customers want to be perceived by others by using your product?
- Social outcomes. How do customers want to be perceived by others by using your product?
We can conclude, that customer outcomes measure the change in the perceived value of a product.
(I hope that's correct @wes_bush)
(I hope that's correct @wes_bush)
Good to know:
- Business outcomes and product outcomes work great with OKRs
- Product outcomes are the ones product teams should focus on
- Customer outcomes are an excellent tool for designing a value proposition
- Business outcomes and product outcomes work great with OKRs
- Product outcomes are the ones product teams should focus on
- Customer outcomes are an excellent tool for designing a value proposition
Follow me for more tweets and threads on #productmanagement: @HurynPawel
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