Concepts
Many organizations are moving away from traditional methods of project management and embracing Scrum, a framework that is less a project management method and more a strategy for product development. The Scrum framework emphasizes outcomes and impacts over output, encouraging Scrum teams to focus less on the volume of work produced and more on the value that their work generates.
In a Scrum framework, teams utilize the principle of empirical process control, otherwise known as empiricism, which states that knowledge comes from experience and decision-making is based on what is known. The overall goal of a Scrum team is to provide valuable outcomes with an impact, not just fulfill a requirements list.
Outcomes over Output
The primary difference between outcomes and output lies in the quality versus quantity dilemma. Output refers to the quantity of work a team produces, often translated into features, widgets, or story points delivered. Teams and organizations that focus solely on output may overlook the ultimate purpose of their work and fail to generate value for their customer or stakeholder.
On the other hand, outcomes are the effect that the product or service has on the users, often measured by metrics such as user satisfaction, engagement, revenue, or goal completion rates. Outcomes are focused more on customer satisfaction and the value that the product or service delivers to them.
As Certified Scrum Professionals and Product Owners (CSP-PO), the focus should be putting the emphasis on outcomes and impact as opposed to output. This becomes clearer when we compare the workings and focus of an ‘output-based team’ and an ‘outcomes-based team’.
| OUTPUT-BASED TEAM | OUTCOMES-BASED TEAM |
|---|---|
| Focus on velocity | Focus on value |
| Driven by quantity | Driven by results |
| Metrics: Number of features developed | Metrics: User satisfaction, revenue growth |
For instance, an output-based team might prioritize delivering ten new features in a sprint with the belief that a higher quantity of work translates into success. However, if the produced features are not valued by the users, their effort might be wasted.
In contrast, an outcomes-based team would focus on delivering a smaller number of features that have been identified as high-value items for the user or client. They emphasize creating a positive impact on the end-user. The success of their work can be measured in user satisfaction, increased revenues for the company, or improved goal completion rates.
Incorporating the Outcomes over Output Philosophy
The Product Owner plays a key role in guiding the Scrum team towards an outcomes-over-output approach. As a CSP-PO, there are several ways to achieve this:
- Develop a strong understanding of the customer or user and their needs. This allows for a greater focus on delivering value.
- Prioritize the Product Backlog based on anticipated outcomes. This may involve working with stakeholders and the Scrum team to identify what work will have the highest impact.
- Regularly review the work of the team and gather feedback to ensure it’s having the intended impact. This not only includes reviewing what the team has delivered but also if it’s meeting the desired outcomes in the real-world context.
- Foster a culture of learning and improvement within the Scrum team. Encourage retrospective meetings and lessons learned, and ensure these insights are used to improve future sprints.
The philosophy of ‘outcomes over output’ truly encapsulates the spirit of Agile and Scrum; where adaptation, value and customer satisfaction take precedence over simply ‘doing more’. Embracing this approach leads to not only more effective Scrum teams but also to organizations making a meaningful impact through their work.
Answer the Questions in Comment Section
True or False: The Scrum framework emphasizes only on output, and not on outcomes and impact.
a) True
b) False
Answer: False
Explanation: Scrum framework advocates for a shift in focus from output, which is the quantity of work completed, to outcomes, which are the results derived from the work, and its impact.
In Scrum, a product’s value is solely determined by the amount of output produced.
a) True
b) False
Answer: False
Explanation: In Scrum, a product’s value is heavily based on the outcomes and the impact it generates, not just on the amount of output.
Single Select: Which of the following statements is true regarding Scrum Teams?
A) Their success is measured purely by the volume of work they can produce
B) They focus on the quantity of products rather than their quality
C) They emphasize outcomes and impact of their work over its output
D) They do not consider customer satisfaction important
Answer: C. They emphasize outcomes and impact of their work over its output
Explanation: Scrum Teams work within the Scrum framework which values outcomes and impact over mere output. The goal is to produce valuable, high-quality work that meets customer needs.
Multiple Select: Which of the following demonstrate a Scrum Team’s emphasis on outcomes over output?
A) Having a clear and shared understanding of the product goal
B) Delivering a large number of features in one sprint
C) Engaging users to gauge the benefit of released features
D) Working overtime to complete extra tasks
Answer: A. Having a clear and shared understanding of the product goal, C. Engaging users to gauge the benefit of released features
Explanation: Both understanding the goal and getting user feedback on features emphasize the value and impact of the work done, not just the simple output.
True or False: In Scrum, measuring success by Output, and not Outcomes is the preferred approach.
a) True
b) False
Answer: False
Explanation: Scrum prefers to measure success by the positive outcomes and impact that come from the output, rather than just the quantity of output itself.
Multiple Select: Which of these are characteristics of an Organisation emphasizing Outcome over output?
A) They measure success by the number of features released
B) They measure success by the value delivered to the customers
C) They frequently ship incomplete features
D) They maintain a disciplined, sustainable pace of work.
Answer: B. They measure success by the value delivered to the customers, D. They maintain a disciplined, sustainable pace of work.
Explanation: Organisations that emphasize outcome over output are interested in what adds value to the customers and sustainability of their teams’ work.
True or False: As a Product Owner, your primary responsibility is to increase the output of the Scrum team.
a) True
b) False
Answer: False
Explanation: As a Product Owner, your primary responsibility is to maximize the value of the product resulting from the work of the Scrum Team, which includes emphasis on outcomes and impact over mere output.
Single Select: Which of the following best describes the Scrum approach to work?
A) Maximize output, regardless of impact
B) Emphasize outcomes and impact over output
C) Increase output by increasing working hours
D) Maximize output to maximize revenue
Answer: B. Emphasize outcomes and impact over output
Explanation: Scrum values achieving valuable outcomes and creating impact over simply maximizing output, recognizing that value and customer satisfaction come from effective solutions rather than quantity of work.
True or False: A good metric for a Scrum Product Owner to track could be the impact of the product features on the user base.
a) True
b) False
Answer: True
Explanation: Tracking the impact of product features allows the Product Owner to gauge the benefit or outcomes being derived by the users, indicating a focus on outcomes over mere output.
Single Select: Which of the following can be considered as an Outcome-based perspective in the context of Scrum?
A) Increasing the sprint velocity
B) On-time delivery of sprint items
C) Customer satisfaction from the product
D) Increase in task completion rate
Answer: C. Customer satisfaction from the product
Explanation: Customer satisfaction is an outcome that indicates the impact and value of the product to the users, rather than the quantity or speed of tasks completed.
True or False: An organization that values output over outcomes tends to make decisions based on how many items are produced.
a) True
b) False
Answer: True
Explanation: An organization that emphasizes output would focus on the quantity of items produced rather than their quality, benefit or impact on users.
Fantastic blog post! I agree that focusing on outcomes and impact is crucial in Scrum.
Great insights. Emphasizing outcomes over output helps streamline what truly matters.
Could someone explain how a Scrum team can measure outcomes effectively?
How do organizations handle the transition from output-focused to outcome-focused?
Loved the example cases provided. They made the concepts much clearer.
I’ve found that cross-functional collaboration within Scrum teams accelerates the focus on outcomes.
How do experienced Scrum teams maintain a focus on outcomes in day-to-day activities?
Nice piece! Outcome-driven development ensures the product adds real value.