Section 1: Output vs outcomesShifting focus
IBM Garage is a differentiated way to engage with clients. Combining Design Thinking, Lean, DevOps, and Agile together when designing and delivering products can be truly transformational for the companies with which IBM works.
Whether you are working with your client to utilize IBM Garage as an accelerator to a product outcome or as an enabler for accelerating business outcomes and transformation, the Garage may start out small, focused on delivering a specific customer experience. By focusing on the business outcomes of the work and not just the outputs, we show the client we care about their business and are interested in growing the relationship into a larger, more transformative engagement.
Why outputs versus
outcomes matter…
…and what’s the difference between the two? Let’s do
some quick definitions to make things a little clearer.
because of what you do.
Another easy way to think of this is that outcomes are the
results, and outputs are the activities that support the
desired results.
Which is more
important?
The distinction between the two is important. According to research from the Harvard Business Review, 75% of start-ups fail . Imagine working for a start-up that measured entirely outputs. The company could say that it’s product is well built, and delightful to its users. It could tout how well its teams work together and how quickly they deliver updates and ship code. But, although that start-up might be a great place to work with an exciting offering, unless those product outputs (a well built application, a delightful user experience) translate into outcomes like increased subscriptions, or a high conversion rate, or increased customer loyalty, that start-up probably wouldn’t stay in business very long.
Output vs an outcome
“We generated over 120 ideas”
Project Output: This does not focus enough on the end result for your user.
“We were able to reduce costs by 15%”
Project Outcome: This provides clear business context and shows the value that the outputs deliver.
That’s not to say outputs aren’t important.
The process by which something is made (e.g., the speed at which it reaches market, the way in which it satisfies user needs, or the robustness and flexibility of its technical architecture) all contribute to a valuable end product and a significant outcome. The outputs of the IBM Garage in terms of agility, speed, and user focus are integral parts of the methodology.
The primary goal of these outputs, though, is to lead to better and stronger business outcomes. And if you don’t start early with your clients and think about what specific outcomes you’re trying to achieve and whether you’re having a measurable impact on them, you limit yourself in how you demonstrate the impact of IBM Garage and grow your business with your client.