Over the last four decades, we have made enormous improvements to every aspect of project delivery, project management methodologies, and tools. Yet, despite these improvements, project success remains unpredictable.
The “project problem” is compounded by how we measure success. The “Iron Triangle” – on-time, on-budget, to-spec – measures success by the inputs to the project, not by whether we get something valuable out of the project.
More recently, the focus has been shifting from how we deliver projects – the methods and tools – to the why and what – why are we doing this project, and what does the future look like? Numerous publications and discussions within the project community have identified the need to shift the delivery model from “outputs to outcomes” without explaining in practical terms what this means.
So, what are “Outcomes”?
We need to start with a definition. Totally Optimized Projects (TOP) defines Desired Outcomes as:
Carefully crafted statements which describe what the future looks like when it is working “just right.” And “What do we intend to achieve.”
Note: We add the word “desired” to emphasise that these are the outcomes that we want. The word “working” makes clear that we wish for an operational environment rather than a deliverable, a piece of technology or software. It may be that we don’t need things to be working “just right,” perhaps “well” or “well enough” are also acceptable if we are building a Minimum Viable Product.
Once you have defined Outcomes, you can then identify all the Benefits – the positive consequences of achieving the new future and the Value delivered by Benefits. Once you plan all the activities needed to deliver the Outcomes, Benefits and Value, you have defined a far more detailed project plan, including everything – project and business activities – to deliver the project’s Value Equation. By comparing the Value Equation to the project’s cost-to-deliver, it is easy to decide, “Is this project worthwhile?”
The Impact of Outcomes Thinking
Using the techniques and frameworks to define Outcomes and build a Value Equation provides a structure that brings people together in action and planning. Some of the key takeaways that organisations have found by doing this:
- Desired Outcomes change the endpoint of a project. We shift the project model from outputs – installing financial management software – to the valuable outcomes – the working-just-right finance department – that contribute to the organisation’s strategic goals.
- Vision and Clarity: The Outcomes Roadmap provides a clear, visual representation of the project, enabling a shared understanding among all stakeholders. This clarity leads to more informed decision-making and a stronger alignment between project efforts and business value.
- Alignment and intention Outcomes shift knowledge from tacit – unarticulated and stored in individual heads – to codified knowledge known and shared by all. Critical information is explicit and accessible, facilitating better decision-making and execution. Outcomes focus intentions, leveraging the brain’s natural tendency to align actions towards the outcomes.
- Value-Oriented Language Outcomes create a shared language of the agreement that shifts from technical language to business value. Outcomes bridge the gap between technical and business stakeholders. The shift encourages a focus on delivering improvements that matter to stakeholders, such as enhanced customer experience or operational efficiency.
- Alignment and Focus: By delineating project boundaries and their relationship to broader organisational goals, Outcomes ensure all efforts are aligned with delivering strategic value. This alignment helps with the inevitable scope changes and ensures resources are efficiently utilised towards achieving the most critical objectives.
- Enhanced Collaboration and Culture: Crafting outcome statements is a collaborative process that bridges the gap between business executives and project teams. The shared language fosters a culture of value-focused execution.
- Adaptability to Change: Defining durable Outcomes allows projects to remain relevant and responsive to changes in the operational environment. This flexibility ensures that projects deliver value even if the business environment triggers changes.
- Strategic Project Selection: By directly linking Outcomes to value measures, organisations can more effectively assess the potential impact of projects. This approach helps avoid investing in initiatives that are unlikely to deliver significant value, thus improving the overall success rate of projects.
- Informed Project Planning: Defining desired outcomes and benefits provides a comprehensive framework for planning. It discovers all activities required for success, particularly those often overlooked yet impactful actions that can turn an average project into an outstanding one.
Conclusion
Shifting projects to delivering Outcomes is easy; it starts by learning simple Outcomes Thinking techniques and how to build a value Equation. With a bit of practice, Outcomes Thinking becomes the natural mindset that will quickly transform an organisation’s project delivery capability.
Shifting the project model to Outcomes improves project success and fosters a culture of value-driven execution. Outcomes Thinking enables us to build a roadmap that gets everyone – literally – on the same page.
