News Release

Heard on campus – outputs vs. outcomes

March 3, 2009

Placing output ahead of outcomes can lead to failure or even tragedy for organizations, a Penn State Harrisburg faculty member asserts.

Assistant Professor of Operations and Supply Chain Management Stephan Brady profiled his thoughts in the February 25 installment of the college Faculty Seminar Series hosted by the Office of Research and Graduate Studies.

Brady framed the discussion by pointing out, “We know how to do things. But we don’t always know how to reach the outcomes.” He emphasized that it’s the final outcomes – or ultimate goals – of an organization which should drive all its efforts.

Delving into what’s wrong with focusing on outputs rather than outcomes, he said, “First of all, there’s nothing wrong with focusing on outputs – if they are in proper alignment with outcomes. But when management attention shifts from a focus on achieving the outcome or ultimate goal to meeting outputs, the connection to the goal is lost.”

He cited a number of examples when outputs superseded outcomes and failure resulted. During the Vietnam War, the U.S. focus was on enemy body count instead of winning the war, and a report on the Challenger disaster indicated NASA pushed ahead with the launch despite expressions of concern because it wanted to keep to a schedule of eight launches in a year.

Brady indicated there are a number of initiatives organizations can undertake to assure they are outcomes focused. He cited a commitment to value by adapting to what stakeholders view as success and remembering the customer is more important than the sale.  He also adds that it is helpful to find, document, and emulate the best practices of organizations that are outcome focused.

As for common themes recurring in outcome-focused organizations, Brady listed clear definition of the outcomes and strong leaders to support them, information gathering and sharing at all levels, and even bringing in outsiders to help determine outcome priorities. The entire organization must be in agreement and in alignment with the goals, he adds.

In summation, his advice for an organization seeking to refine its steps to assure satisfactory outcomes is to identify and overcome barriers to success and link inputs of information and outputs of product to outcomes. ”Create governance and accountability and always look at the outcome,” he said.