In the world of process improvement and quality management, understanding the fundamental difference between outputs and outcomes is essential for success. This distinction becomes particularly critical during the Define phase of Lean Six Sigma methodology, where establishing clear project parameters can determine whether your improvement initiative delivers genuine business value or merely produces superficial changes.
Many organizations struggle with this conceptual difference, leading to misaligned objectives, wasted resources, and improvement projects that fail to deliver meaningful results. This comprehensive guide will help you navigate these crucial concepts and apply them effectively in your continuous improvement journey. You might also enjoy reading about How to Run a Successful Define Phase Tollgate Review: Complete Checklist for Lean Six Sigma Projects.
What Are Outputs in Process Improvement?
Outputs represent the direct, tangible products or services that result from a process. They are the immediate deliverables that you can count, measure, and observe directly. Outputs answer the question: “What did we produce?” rather than “What value did we create?” You might also enjoy reading about Understanding the Project Charter Review and Approval Process in the Define Phase.
Consider outputs as the activities completed or items produced. They are typically easier to measure because they are concrete and observable. However, focusing solely on outputs can be misleading because they do not necessarily reflect the ultimate value delivered to customers or the organization.
Common Examples of Outputs
To illustrate this concept clearly, let us examine several practical examples across different industries:
- Healthcare: Number of patients seen per day, number of prescriptions written, or number of diagnostic tests performed
- Manufacturing: Number of units produced per shift, number of quality inspections completed, or number of machines serviced
- Customer Service: Number of calls answered, number of emails responded to, or number of tickets closed
- Education: Number of classes taught, number of students enrolled, or number of assignments graded
- Software Development: Number of features released, number of code reviews completed, or number of bug fixes deployed
Understanding Outcomes: The True Measure of Success
Outcomes represent the actual results, benefits, or changes that occur because of the outputs. They measure the impact and value created for stakeholders, customers, or the business. Outcomes answer the question: “What difference did we make?” and “What value was created?”
Outcomes are typically more challenging to measure because they often manifest over time and may be influenced by multiple factors. However, they are far more important than outputs because they reflect the true purpose of any improvement initiative.
Common Examples of Outcomes
Using the same industries mentioned earlier, here are corresponding outcome examples:
- Healthcare: Improved patient recovery rates, reduced hospital readmission rates, or increased patient satisfaction scores
- Manufacturing: Reduced defect rates, improved on-time delivery performance, or decreased production costs per unit
- Customer Service: Increased customer satisfaction scores, improved first-call resolution rates, or reduced customer churn
- Education: Improved student comprehension and test scores, higher graduation rates, or better career placement outcomes
- Software Development: Improved application performance, reduced system downtime, or increased user adoption rates
The Critical Relationship Between Outputs and Outcomes
While outputs and outcomes are distinct concepts, they are intrinsically connected. Outputs are necessary but insufficient for achieving desired outcomes. You can produce numerous outputs without generating positive outcomes, but you cannot achieve outcomes without some form of output.
The relationship works like this: outputs are the mechanisms through which outcomes are achieved. However, the mere presence of outputs does not guarantee outcomes. This is why focusing exclusively on output metrics can be counterproductive and may even harm overall performance.
Sample Data Analysis: Call Center Performance
To demonstrate this relationship clearly, let us examine data from a hypothetical call center over three months:
Month 1 Data:
- Calls handled: 12,500 (output)
- Average handle time: 8 minutes (output)
- Customer satisfaction score: 72% (outcome)
- First-call resolution rate: 65% (outcome)
Month 2 Data (after implementing pressure to increase call volume):
- Calls handled: 15,200 (output increased by 21.6%)
- Average handle time: 5 minutes (output improved)
- Customer satisfaction score: 58% (outcome decreased)
- First-call resolution rate: 52% (outcome decreased)
Month 3 Data (after shifting focus to outcomes):
- Calls handled: 11,800 (output slightly decreased from baseline)
- Average handle time: 10 minutes (output increased)
- Customer satisfaction score: 84% (outcome improved significantly)
- First-call resolution rate: 78% (outcome improved significantly)
This example demonstrates a crucial lesson: optimizing for outputs alone (more calls handled, shorter call times) actually harmed the outcomes that matter (customer satisfaction and problem resolution). When the focus shifted to outcomes, the organization achieved better results even though certain output metrics decreased.
Why This Distinction Matters in the Define Phase
The Define phase of Lean Six Sigma establishes the foundation for your entire improvement project. During this phase, you create the project charter, identify stakeholders, and establish clear objectives. Confusing outputs with outcomes at this stage can derail your entire initiative.
When you define your project goals around outputs rather than outcomes, you risk creating solutions that look impressive on paper but fail to deliver real value. This leads to what is often called “vanity metrics” that make reports look good without actually improving business performance.
Defining Proper Project Objectives
Consider these contrasting project objective statements:
Output-focused (weak) objective: “Increase the number of customer onboarding sessions completed by 30% within six months.”
Outcome-focused (strong) objective: “Reduce customer time-to-value by 30% within six months, measured by the time from contract signing to first successful product use, thereby improving customer satisfaction and reducing early-stage churn.”
The second objective focuses on what actually matters to the business and the customer. The number of onboarding sessions (an output) may be a component of achieving this outcome, but it is not the goal itself.
Practical Application: Creating Effective Metrics
During the Define phase, establishing the right metrics is crucial. A balanced metrics framework should include both output and outcome measures, with outcome measures taking priority in decision-making.
The Metrics Hierarchy
Structure your metrics using this hierarchy:
- Lagging Indicators (Outcomes): These are your primary success measures. They reflect the actual value created but typically take time to manifest.
- Leading Indicators (Outputs): These are predictive measures that you can track more frequently. They help you understand whether you are on track to achieve your outcome goals.
For example, in a project aimed at improving employee retention (outcome), you might track engagement survey scores, training completion rates, and manager-employee meeting frequency (outputs/leading indicators) as predictors of the ultimate retention outcome.
Common Pitfalls and How to Avoid Them
Several common mistakes can undermine your Define phase when dealing with outputs and outcomes:
Pitfall 1: Output Obsession
Organizations become fixated on easily measurable outputs while ignoring harder-to-measure outcomes. Avoid this by always asking “So what?” when someone proposes an output metric. Keep asking until you reach the actual business or customer value.
Pitfall 2: Outcome Ambiguity
Outcomes are stated so vaguely that they become meaningless. Ensure your outcomes are specific, measurable, and time-bound, just like your outputs.
Pitfall 3: Disconnected Metrics
Outputs are measured without establishing their relationship to outcomes. Always map how your outputs theoretically drive your desired outcomes, and test these assumptions with data.
Moving Forward with Clarity
Understanding the difference between outputs and outcomes is not merely an academic exercise. It fundamentally changes how you approach process improvement, how you allocate resources, and how you measure success. Organizations that master this distinction create improvement initiatives that deliver genuine, sustainable value rather than cosmetic changes that fade quickly.
As you move through the Define phase and beyond in your Lean Six Sigma projects, continuously challenge yourself and your team to focus on outcomes. Ask difficult questions about whether your proposed solutions will actually create the value you seek, not just produce impressive-looking activity metrics.
The journey from output-focused thinking to outcome-focused thinking represents a maturity in process improvement capability. It reflects a deeper understanding of how work creates value and how to align improvement efforts with strategic objectives.
Enrol in Lean Six Sigma Training Today
Mastering concepts like the difference between outputs and outcomes requires more than just reading articles. It demands structured learning, practical application, and expert guidance. Lean Six Sigma training provides you with the comprehensive framework and tools needed to execute successful improvement projects from the Define phase through Control.
Whether you are beginning your continuous improvement journey with Yellow Belt certification or advancing to Black Belt mastery, professional Lean Six Sigma training equips you with the skills to drive meaningful change in your organization. You will learn how to properly scope projects, identify the right metrics, analyze data effectively, and implement solutions that deliver measurable business results.
Do not let another improvement initiative fail because of poorly defined objectives or confused metrics. Invest in your professional development and your organization’s success by enrolling in Lean Six Sigma training today. The knowledge and credentials you gain will transform how you approach problems, make decisions, and create value throughout your career.
Take the next step in your process improvement journey. Explore Lean Six Sigma certification programs and discover how proper training can elevate your capability to distinguish between mere activity and actual achievement, between outputs and outcomes, and between busy work and valuable work.
