Over the years I’ve learned a lot from Josh Seiden, starting with “Lean UX” which he coauthored with Jeff Gothelf. Seiden recently published “Outcomes Over Output” a nifty little book (should take about 40 minutes to read), which – you guessed it – encourages readers to move from ‘making stuff’ to creating outcomes by changing customer behaviour. Seiden asserts that customer behaviour is the key metric for business success:
What is an outcome? Seiden defines an outcome as “a change in human behaviour that drives business results.” He goes on to explain that outcomes have nothing to do with making ‘stuff’ – though they’re something created by making the right stuff. He explains that “outcomes are the changes in the customer, user, employee behaviour that lead to good things for your company, your organisation, or whomever is the focus of your work.”
Delivering value early and often – Instead of big bang product releases, Seiden stresses the importance of creating specific, smaller customer behaviours that drive business results. Think for instance about enabling users to create music playlist, so that they can find their favourite music easily. You can create new behaviours or focus on existing customer behaviours (e.g. opening emails or sharing images). This could in turn help increase the life time value of those users, which is a measurable business result. Seiden reminds us of the first Agile principle – “our highest priority is to satisfy the customer through early and continuous delivery of valuable software.” Seiden rephrases this principle slightly to best fit today’s context: “our highest priority is to satisfy the customer through early and continuous delivery of value.”
Outcomes, experiments, hypotheses, and MVPs – I loved Seiden’s point about what constitutes a Minimum Viable Product (‘MVP’) and what doesn’t. “An MVP is NOT version 1.0 of your product. Instead, think of MVP as the smallest thing you can make to learn if your hypothesis is correct”, explains Seiden. He talks about agile projects effectively being a series of hypotheses and experiments, all designed to achieve an outcome.
Finding the right outcomes (1) – For me, the million dollar question behind “Outcomes Over Output” is how teams determine the right outcomes to concentrate on. Firstly, you start with a fairly simple question: “what are the customer behaviours that drive business results?” You set an “impact level target”; e.g. increase the rate at which customers visit the site from once a month to twice a month or to reduce the number of times users abandon the checkout process on the app from hundred times a month to ten times a month. Secondly, once the impact level target has been defined, we can then ask “what are the things that customers do that they predict they’ll visit our site?” or “what are the behaviours that predict a successful customer checkout on the app?” In both examples, the focus is on observable and measurable outcomes.
Finding the right outcomes (2) – Rather helpfully, Seiden shares what he refers to as “The Magic Questions” that we can all apply when figuring out the right, measurable outcomes to concentrate on: (1) What are the user and customer behaviours that drive business results. This is the outcome that we’re trying to create; (2) How can we get people to do more of these behaviours? These are the features, policy changes, promotions, etc. that we’ll do to create the right outcomes and (3) How do we know that we’re right? This uncovers the dynamics of the system, as well as the tests and metrics we’ll use to measure our progress.
Planning around outcomes – Instead of building plans around outputs or features, it often makes makes more sense to plan around themes of work, problems to solve, or outcomes to deliver. Seiden makes the point that the less certain that you are that your outputs (i.e. the features that you want to deliver) will deliver the results you seek, the more it makes sense to plan in terms of outcomes and to build your roadmaps around sets of outcomes.
Main learning point: “Outcomes Over Outputs” does a great job of linking customer focus with specific business results, and is a great read for anyone keen to make the right impact on customer behaviour for the right reasons.
2 responses to ““Outcomes Over Output” (Book Review)”
[…] model in turn, seeking to understand how the model works, what benefits it produces, and why these outcomes […]
[…] I’ve been following Teresa Torres and her work for a good few years, so I was very excited when she published “Continues Discovery Habits: Discover Products That Create Customer Value and Business Value” earlier this year. In “Continuous Discovery Habits” Torres explains the value of continuous discovery and describes the best way to implement a culture where we constantly explore against specific outcomes. […]