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Output Vs Outcome: What are you measuring?

The output is the sperm and the outcome?
Well, if done right we understand the outcome would be the birth of a child, otherwise a wasted output, no matter how gratifying.
That brings up a question:

Should the focus be on Output or Outcome?

This is an important question to ponder over as most improvement initiatives and activities are primarily focussed on increase in output and almost ignorant towards the outcome.

Is an increase in output leading to:

– Increased Inventory
– Reduced Cash Flow
– Backlogs
– Discounts
– Increased Defects

Or is it leading to:

– Increased Customer Satisfaction
– On-Time Deliveries
– Better Utilization Of Resources
– Higher Sales
– Better Quality

Understanding the difference between output and outcome of any activity and correct focus can be a deciding factor in creating a long-lasting and sustainable change.
Mediocre organizations make decisions based on outputs, while great organizations manage outcomes.

Understanding and measuring the outcome will get more buy-in at all levels of the organization to participate in Kaizen activities and affect sustainable change.
It is the Outcomes that matter and are both quantitative and qualitative as they represent the real results in customer experience and profitability.

Output is current and temporary, focus on the long term Outcomes of all your actions!


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Vineet Sethi
Authored by Vineet Sethi

2 thoughts on “Output Vs Outcome: What are you measuring?”

  1. I agree and totally believe that focussing on outcomes definition is important but then as a manufacturing line machine does…all parts need to work precisely to achieve the outcome of producing the product that the machine has to. Its important to stay focussed on the outcome but that will only be realised by ensuring the outputs, the finer details, the quality at each step by each resource is working as a well oiled machine. As per the recently concluded two test matches in cricket, the outcome desired was the same but the outputs were significantly different and thus resulting in totally different results…

  2. Pingback: This Is How You Measure Consultant Success - Beyond The Panorama

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