Outcome Centricity: The next frontier for agile organizations (Part III)

Note: This is Part III of the series, revolving around key outcome-based patterns. You'll find the first part of the series here and the second part here.

In the previous two posts, I provided a general overview of outcome-centric organizations and outlined some of their core features and principles. In the following posts, I'll explain in greater detail the nuts and bolts of outcome-centric organizations. I will also provide some more specific examples how to get started on your outcome-centric transformation.

For now, however, I decided to kick off the new year from a slightly different angle - I'd like to introduce the idea of outcome-based (anti-) patterns. Outcome-based patterns (or anti-patterns) are typical "mishaps" which occur in organizations which have not yet systematically internalized one of the core tenets of outcome-centric organizations:

We create value by designing solutions which deliver meaningful outcomes to our customers and drive our business forward.

Let's break this down a little further. Outcome-centric organzations have understood the ABC of success: Deliver (A) relevant outputs which (B) drive meaningful customer outcomes and which (C) positively affect company outcomes. It's a bit like the famous mantra "doing the right things right" - except that you and your customers should have a shared understanding of what the "right things" really are.

Based on this key insight, you can easily plot the following 2x3 matrix and describe some of the most typical and frequent patterns in organizations out there. (The first five are anti-patterns, whereas the last one is the "happy path" pattern). I also added a simple example (about reducing moving-induced customer churn), which should help bring out the differences between the six patterns.

See if you don't recognize some of these patterns in your team or organization!

1. This pattern is one of the reason I started this entire series of posts. Particularly relevant for agile teams and organizations: output is produced (in this case, a new journey) but no real thought is given as to what the desired outcomes are. The "so what" is missing - the organization is stuck in the "build trap."
2. The organization is delivering output to deliver against some desired company outcome. Here you do have a link between output and outcome - but no mention whatsoever of the customer! No reflection as to what actually drives success (customer outcomes). Alas, this is still the reality for a whole lot a lot of organizations out there - just think of the strategic planning and budgeting process in your typical organization.
3. This pattern is a bit more tricky - and you may ask yourself: what's wrong here? This is what I call "fake customer orientation." You think you're clear on your desired customer outcomes, but if you're honest to yourself you realize you've only described the customer outcome you as an organization would like to see. In other words, the customer outcome may be relevant to the organization, but not the customer. Customers using a journey, for example, is per se not solving any real customer problem, is it? Same for NPS and the like. Just apply what I call the Rudolf Abel test from the wonderful Bridge of Spies movie: "Would it help?"
4. You encounter the fourth pattern more frequently than you'd intuitively think. We're doing something which is driving relevant outcomes for our customers, but not for ourselves, the company. That's strange - but may for example occur if you're tracking the wrong metrics (think vanity metrics, for example) or when the link between customer and company outcomes is more complex than you had originally anticipated.
5. For this pattern, your output is not working as you had hoped - it's not driving your desired customer and company outcomes. This is what data-driven experiments are there for: to validate the link between the three elements of success. Alas, validation rigor is still missing in many organizations.
6. Finally, this is what you want - your happy path. Meaningful outcomes for both customer and company and output which actually delivers those outcomes. 

As always, more than happy to engage and to discuss!

Thanks Cecile, Max, and Rapha with your help with this article!