Organizations are certainly clear about the terms they use simply because they want employees to understand the work setting. And with this understanding, it is impossible not to be able to measure performance more accurately. Outcome and Output are two terms that mean almost the same thing to a layman, but they are entirely different concepts in business. In this article, you will learn their meanings, differences, and the most appropriate way to measure work performance.
What is an Output?
Output is defined as a set of activities, strategies, initiatives, and projects established to reach goals. It considers immeasurable outcomes – the reason for executing a task. In an organization, outputs are obvious and can be validated.
What is an Outcome?
The outcome is defined as the delivery of substantial results. It considers measurable and immeasurable parameters that will lead to achieving goals. In an organization, outcomes are established based on the success of a project.
In summary, the clear definition of both concepts is that Outcome is a derivative of Output.
What is the Difference Between Outcome & Output
Outcomes and Outputs seem interrelated, but they also have their differences. They include:
- Outputs focus on generating results through a series of strategies, while Outcomes focus on the advantages of such results to an organization.
- Outputs show the final result of a task or project, regardless of whether it was successful or not. On the other hand, Outcomes look into the effectiveness of such a project to determine whether it met its purpose.
- Outputs are obvious because a project’s success is set on clear yardsticks. However, Outcomes reviews outputs and gathers information on the success ratio according to reports from a target audience. With an outcome result, a company finds it easy to determine the next course of action.
- Outputs highlight zero or minimal performance levels because a service or product hasn’t been introduced to the audience. Outcomes is a performance tool because it displays major achievements from a project and even potential or existing issues based on feedback results.
- The key players in Outputs are the skilled individuals designing a product. On the other hand, Outcomes are determined by the employer.
How Can You Measure Your Performance the Right Way?
Performance management is an important concept in an organization. Finding the proper parameters or metrics to measure performance is a big deal. Deciding between Outcomes and Outputs can be difficult because they share certain similarities as performance tools.
However, to measure performance correctly, Outcomes are the best bet, but there are still problems. They focus on the advantages of output results, helping a company discover whether it is still aligned with its mission. Unfortunately, it gets a little complicated and often keeps employers in a thinking process.
How To Use Outcomes & OKRs Together For Your Business Success?
Alternatively, some companies combine Output-based OKRs with measurable Outcomes to determine performance. So far, it has also helped.
Objectives and Key Results (OKRs) focus on what strategies need to be used to achieve a certain goal. By setting a clear key result, the company is no longer focusing on delivering a service or product but on why they have to. At this point, such a company will be after a good outcome because there is something measurable to focus on.
To establish an Outcome and Output-OKR-based performance management approach for business success, here are things to do:
- Clearly define the company’s goals – the vision and mission. It must be intentional so that employees understand what will be expected of them.
- Communicate effectively with team leaders and members about the company and individual goals.
- Establish a friendly and result-based work environment where senior colleagues or managers can train or coach employees.
- Keep employee performance and learning opportunities distant but aligned.
Conclusion – How Do OKRs & OKR Software Help in Getting Better Outcomes?
OKRs are an organizational framework that will help businesses achieve their goals effortlessly, regardless of their size. The business is guaranteed to move forward in a company that uses Outcomes as a performance tool. However, it becomes even better if aligned with an Output-based OKR approach.
To set a company’s OKR, Huminos is software built for that purpose. It targets three important things – aiming for growth, inspiring team cooperation, and measuring performance. Huminos will actively work to determine performance levels in an organization that focuses on Output-based OKR and Outcome.