From Output to Outcome: Transforming the Approach for Small Businesses
Are you a small business owner wondering why your digital projects aren't meeting your expectations? The answer might lie in a simple distinction: output versus outcome.
Many tech agencies operating in the market today deliver 'output'. Output equates to the tangible products of a service, such as hours of work, lines of code, or pieces of software. It's easy to measure and often used as a yardstick for progress. For instance, a tech agency might say they've developed an app for you, and that's the output.
However, the concept of output is fundamentally task-oriented. It focuses on the production side of things, not necessarily the impact or results that these products bring. Sure, having a shiny new app sounds great, but does it serve your business objectives?
The Power of Outcome
Outcome, on the other hand, is the change or impact that arises as a result of the output. Outcomes are the real value that your business needs. It could be anything from increased sales, improved customer satisfaction, or streamlined business operations.
In the case of the app, the outcome isn't the app itself, but how this app increases your sales or improves your customer service. If you focus on output, you have an app. If you focus on outcome, you have a tool that boosts your business.
Why is Focusing on Outcomes Important?
Focusing on outcomes over outputs fosters a results-oriented mindset. It drives your tech partners to go beyond just creating a product. It challenges them to understand your business deeply and align their tasks with your goals.
A tech agency that is outcome-focused will ask different questions. Instead of "What software do we need to build?", they'll ask, "What business results do we want this software to drive?"
This shift may seem minor, but its impact on your business can be significant. It brings clarity, aligns the project with your business objectives, and ultimately, ensures that the technology serves your business, not the other way around.
The Outcome Approach in Practice
Let's imagine you run a small retail business, and you're launching an e-commerce platform. An output-focused agency might focus on the technical aspects, such as creating a visually appealing interface and ensuring the shopping cart feature works.
An outcome-focused agency, on the other hand, would go beyond that. They would seek to understand your business objectives, such as boosting online sales by 30% in the next quarter or reducing cart abandonment rate by 15%. Their work will be guided by these targets, creating a more purposeful and result-driven product.
The Road Ahead
Shifting from an output to an outcome focus isn't always easy. It requires a change in mindset, not only from your tech partners but also from you as a business owner. However, the rewards are worth it: technology that genuinely serves your business and drives your desired results.
Remember, your journey as a small business owner is not just about implementing technology; it's about leveraging technology to achieve your business goals. As you navigate the tech landscape, don't just ask for outputs. Demand outcomes.
Remember: it's your business. You're not just looking for lines of code - you're looking for results. Don't settle for anything less.