The Importance of Inputs, Outputs, and Outcomes

Do you know that understanding the relationship between Inputs, Outputs, and Outcomes is key to improving and measuring performance? Many lack clarity on these and even assume outputs as outcomes. Below are my thoughts on this.

• Inputs: These are the resources and efforts you invest.
• Outputs: These are the tangible deliverables or actions produced by the inputs.
• Outcomes: These are the long-term impacts or results of those outputs.

You to go to a restaurant and order food - It is delicious while eating but later it gave stomach problems to many who ate there. Now you go to the restaurant owner and complains about it, owner says I am not responsible for all those and simply escapes to take responsibility. There is another place, there every customer feels highly energetic, happy and feel like going there again and again.

Hiring a Cook/Buying good ingredients/ buying equipment like stove/gas all are inputs -> delivering the food item is an output-> customer experience is an ultimate outcome.

Looks like the in the later example owner understands how to design inputs that creates great value but not just limiting to creating great outputs. And in the first example owner fails in creating outcomes that damaged outputs.

If you miss the outcomes then it is like you are deeply invested in your solution than without caring or understanding or investing in the problem statement. Don't fall in love with your solutions too much that can blind you on outcomes.        

Many businesses don't design their business processes from the outcomes perspective. Outcomes driven approach brings great inputs that can give great outputs.

Below are my thoughts on this.

Inputs -> Outputs -> Outcomes

Understanding the Connection:

• Outcomes -> are totally dependent on Outputs. However, if you only focus on outputs then ->you might forget the crucial -> inputs—like watering the plants, providing sunlight, and improving soil quality.
• Inputs -> are like the seeds for -> high performance. Outputs -> are the results of everyday effort (buds that haven’t yet blossomed) -> and Outcomes are the rewards you reap ->like the joy of seeing those colorful flowers in full bloom.

Outputs vs Outcomes:

( It’s essential to understand the difference between Outputs and Outcomes, as many confuse them ).

Outputs: These are quantitative and measurable deliverables.

They answer: What did we produce? These are like - Delivering a training program, writing code, closing sales, or completing tasks.

Outcomes: These are qualitative impacts or changes resulting from the use of Outputs.

They answer: What meaningful difference did it make?

These are like - Impact, Value creation. For example customers being happier after a better service experience.

Outcomes are not the same as results. Results/Outputs are measurable deliverables, while outcomes focus on the broader, meaningful Impacts/Changes/Value those results create.

What is ultimately you control everyday that brings great outcomes?

Is it Outcome itself? No.

??

Is it Output? No.

??

You control your "Inputs" every day.

You have direct control over the inputs you use to -> create outputs.

But then how do you know what kind of inputs can impact your outcomes?

To have the answer for the above one must have a clear picture of "Outcomes".

If you do not know your end goal, your destiny and your purpose then you can not find out what inputs you need that can create great outputs that will finally create value/Impact ( Outcomes ).

Understanding your desired outcomes is a very crucial part: It helps you decide which inputs will lead to the desired outputs, which will ultimately drive successful outcomes.

Lets take an example here - Hiring Process

1. Input: The resources and activities you put into the hiring process.
2. Output: The tangible results or deliverables of the hiring process.
3. Outcome: The long-term impact or success of the hiring process, linked to business goals.

Lets look into another simple example - Software Engineering

Input: The resources and activities put into the software development process.

These are like - Developer training, choosing the right tech stack, design meetings, sprint planning, coding hours, and collaboration tools.

Output: The tangible results or deliverables of the software development process.

These are like - 5 new features developed, 50 user stories completed, 10 bug fixes resolved, and 2 iterations of the product released.

Outcome: The long-term impact or success of the software development process, linked to business goals.

These are like - Improved product usability, higher user retention, increased customer satisfaction, and a reduction in system errors by 40%.

These examples explains how inputs (resources and activities) lead to outputs (deliverables) and ultimately result in outcomes (long-term impact and business success)

Also, OKR's framework suits well for the above than KPI's model, OKRs are explicitly outcome-focused.

By focusing on the right inputs, you can create the outputs that will ultimately lead to the outcomes you desire, whether in hiring or any other business process.