Outputs vs. Outcomes: What’s the Difference?

Outputs refer to the necessary steps and processes an organization or company implements to achieve a goal or milestone. Common examples of outputs include new products, services, and streamlined processes. Since outputs are deliverables, you and your team can outline your outputs quantitatively to provide a clear basis for measuring results.

Outcomes describe the key results of a company or organization’s outputs and whether those results have a positive impact on the long- or short-term business goals, such as ensuring the product meets your customers’ needs. Common examples of outcomes include increases in customer satisfaction, reductions in costs, and increases in conversions.

Business outcomes allow companies to communicate the impact of their work, and you can measure outcomes in qualitative or quantitative terms. While evaluating customer reviews is a qualitative method of assessing user experience, comparing customer retention rates is a quantitative metric that assesses the same outcome.

Outputs are the steps an organization or business takes to reach a desired outcome. While the project outputs are the actions and initiatives, the outcomes are the impact. When the outcomes fail to achieve your desired results, you revise and implement new outputs. Businesses, nonprofits, and organizations often communicate their outputs and outcomes together to demonstrate the business value of the optimizations to stakeholders.

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