
Solely 20-30% of Product Options Ship Measurable Worth to Prospects
Meaning most options don’t really transfer the needle.
Why? As a result of product groups usually give attention to outputs—options, roadmaps, and backlog gadgets—relatively than outcomes—the actual enterprise impression and buyer worth these options ought to create.
At Productside, we consider in outcome-driven product administration—the place success isn’t measured by what you construct, however by the impression it delivers.
On this article, we’ll cowl:
- The distinction between outputs and outcomes (and why it issues)
- Learn how to outline enterprise and product outcomes
- Methods to align stakeholders round outcome-driven methods
By the tip, you’ll be capable to cease transport options only for the sake of it and begin delivering actual, measurable impression.
The Pitfall of Output-Pushed Product Administration
Too usually, product managers are given directives like:
- “Ship this function by Q3.”
- “Implement AI to remain aggressive.”
- “Improve web site visitors.”
These are outputs—not outcomes.
Tom Evans, a strategic advisor at Productside, put it greatest:
“Organizations that focus solely on outputs usually lack flexibility. In case your solely objective is to ship a function, you would possibly miss a greater alternative to attain the identical end result another way.”
As a substitute of measuring success by function completion, product groups ought to ask:
- Did this function enhance buyer retention?
- Did it enhance income from a selected market?
- Did it scale back churn or enhance buyer satisfaction?
When groups give attention to outcomes, they achieve optionality—the flexibility to pivot, regulate, and optimize based mostly on real-world studying as a substitute of simply blindly following a roadmap.
The Energy of Consequence-Pushed Product Administration
Shifting from output-driven to outcome-driven pondering unlocks huge advantages:
- Higher alignment with enterprise technique – Each product choice ties again to measurable objectives.
- Larger staff autonomy – Groups have the pliability to search out one of the best resolution relatively than executing predefined duties.
- Stronger motivation – Product managers really feel extra engaged once they perceive why they’re constructing one thing.
Ryan Cantwell, a Productside marketing consultant, shared this analogy in our webinar:
“Think about we’re digging holes. The inputs are shovels and employees, the output is the variety of holes dug, however the end result is why we’re digging within the first place—to plant bushes and create a wonderful park. With out realizing the result, we’re simply digging for the sake of digging.”
To transition from output-driven to outcome-driven product administration, you have to outline two issues:
- Enterprise Outcomes – Organizational objectives like income progress, market growth, or buyer retention.
- Product Outcomes – Buyer habits enhancements that drive these enterprise objectives.
Let’s break these down.
Be taught from a Product Administration large and save $1,000 with code: PMFAB1000
Enterprise Outcomes: The Organizational “Why”
A enterprise end result represents the corporate’s broader objectives. It solutions:
- What are we making an attempt to attain at a strategic degree?
Examples of sturdy enterprise outcomes
- Increase market share in Asia Pacific by 10% in Q3.
- Improve retention amongst enterprise prospects by 15%.
- Develop income from self-service plans by 20% by year-end.
Examples of weak enterprise outcomes
- Enhance web site visitors. (Why? Extra conversions? Model consciousness?)
- Ship an AI-powered function by Q2. (What impression ought to it have?)
Tom Evans defined:
“If management doesn’t present clear enterprise outcomes, product managers are left guessing—resulting in wasted effort and misalignment.”
To outline a enterprise end result, product managers ought to ask:
- What metrics outline success for this initiative?
- What change in buyer habits are we aiming for?
- How will we measure impression past function supply?
Product Outcomes: The Buyer Influence
As soon as enterprise outcomes are outlined, the following step is product outcomes—the precise, measurable modifications in buyer habits that help the enterprise objective.
A product end result solutions:
- What change in buyer habits will drive this enterprise objective?
Examples of sturdy product outcomes
- Scale back buyer churn by 10% by bettering onboarding.
- Improve the variety of self-service signups by 30%.
- Scale back checkout time by 15% to enhance conversion charges.
Examples of weak product outcomes
- Launch a chatbot for buyer help. (What’s the objective? Quicker response instances? Elevated CSAT?)
- Redesign the dashboard. (How will it impression buyer engagement?)
Tom Evans clarified:
“A product end result is about buyer worth—not options. One of the best ways to measure product outcomes is by figuring out what prospects need to enhance or lower.”
Frequent increase-based outcomes
- Improve buyer engagement (e.g., extra logins, larger retention).
- Improve income per consumer (e.g., extra upsells, longer contracts).
- Improve buyer satisfaction (e.g., sooner decision instances).
Frequent decrease-based outcomes
- Scale back churn (e.g., enhance onboarding).
- Scale back help tickets (e.g., higher self-service options).
- Scale back friction within the shopping for course of (e.g., fewer steps at checkout).
Aligning Stakeholders round Outcomes
One of many greatest challenges in shifting to outcome-driven product administration is getting buy-in from stakeholders who’re used to measuring success by function supply.
To drive alignment, use the Consequence Tree Framework:
- Begin with the Enterprise Consequence – What organizational objective are we supporting?
- Establish Key Product Outcomes – What buyer habits should change?
- Outline Supporting Options – What outputs will assist obtain these outcomes?
Instance:
- Enterprise Consequence: Improve retention amongst enterprise prospects by 15%.
- Product Consequence: Scale back onboarding friction to enhance activation charges.
- Output: Implement an AI-powered onboarding assistant.
As a substitute of merely launching an AI assistant, this strategy ties the function to a measurable objective, serving to groups prioritize successfully.
Your Subsequent Step to Grasp Consequence-Pushed Product Administration
Shifting from outputs to outcomes is a strategic shift that separates high-performing product groups from these caught in a cycle of limitless function releases. By specializing in measurable enterprise impression and buyer habits, you make sure that each product choice drives significant outcomes.
For skilled product leaders or for these simply beginning out, mastering outcome-driven product administration will provide help to align groups, prioritize successfully, and ship measurable worth that goes past simply transport options.
What are another widespread pitfalls you’ve encountered with GTM plans? Share your ideas within the feedback or join with us on LinkedIn.
February 03, 2025