Business outcomes measure the health of the business. Product outcomes measure a change in customer behavior.

Quote of the Week 12

"Business outcomes measure the health of the business. Product outcomes measure a change in customer behavior."
― Teresa Torres

Triggered by a discussion of how to align product development goals with business goals in the context of an OKR initiative.

My take which is influenced by T. Torres and others including M. Cagan and T. Herbig: 

In the triangle of "business", "customer", and "product", do not try to directly derive the product objectives from the [internal] business objectives, instead look at the [external] business impact for the customer first.

See also "What’s the Difference Between OKRs and Outcomes?" by Teresa Torres:

"Product teams don’t typically have direct influence over business metrics like increasing revenue. But they do have the ability to directly influence product outcomes—changes in customer behavior—that can ultimately contribute to business outcomes."

As Melissa Suzuno stated in "Product in Practice: Opportunity Mapping Led to a 20% Lift in LTV at Grailed":

"Remember: 

Your customers don’t care about your business outcomes.

They care about having their own problems solved or having an enjoyable experience when they use your product."

“Business outcomes measure the health of the business. Product outcomes measure a change in customer behavior.” - @ttorreshttps://t.co/Lb4uft44pl#prodmgmt #ux #engineering pic.twitter.com/wtRHJKhZ8q

— Teresa Torres (@ttorres) March 9, 2023

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