Let's design some outcomes! This is a hands-on workshop where participants can dive in and learn by doing.
The presentation on leading with outcomes emphasizes the crucial shift from focusing solely on outputs to prioritizing outcomes in order to drive real business value. The speaker introduces the concept of well-crafted objectives that are not only quantitative but also directly tied to the achievement of tangible results. This approach ensures that business efforts are aligned with measurable goals, leading to more meaningful progress. In stark contrast to outcomes, outputs are highlighted as mere artifacts generated by business or IT processes. While outputs represent the completion of tasks or the delivery of specific items, they often fall short in reflecting the true impact on the business. The presenter emphasizes the need to define outcomes that are specific, measurable, achievable, relevant, and time-bound (SMART), allowing for clear evaluation and tracking of progress.
We will start out with some hands-on exercises to turn outputs into well-crafted outcomes. We will review them and discuss what makes them more or less effective, and how they could help us achieve our strategic goals.
Next we will explore leading and lagging metrics. Lagging metrics are the ones that we all care about: revenue, delivery of government services, crime reduction, keeping our homeland safe. The problem? we cannot affect those directly. By contrast, a leading metric is something we can affect directly. While we can't cause sales to go up, maybe if we reduce out-of-stock situations that will ultimately lead to more sales. we will discuss ways to identify leading metrics and how to know when its time to pivot and try another.
This fun workshop is chock full of exercises and discussion, and is a great way to learn some of the new exciting tools in the business agility toolset.
In conclusion, the presentation advocates for a shift from outputs to outcomes as a strategic approach to leadership. By crafting objectives that are SMART and tied to genuine business value, organizations can better measure progress and drive meaningful results. This transition enables businesses to move beyond the production of artifacts and instead prioritize achieving quantifiable outcomes that contribute to their overall success.
20231023 AgileDC Making Strategy Real with Well Crafted Outcomes
1. New York City | Washington D.C.
Hands-On Workshop
Making strategy real with
well-crafted outcomes,
leading and lagging metrics
Craeg Strong
CTO of Ariel Partners
www.arielpartners.com
23 Oct 2023 11:00 EDT
3. 3
Craeg Strong
u Software Development since 1988
u Large Commercial & Government Projects
u Leadership Coaching & Training
u Organizational Agility Coach
u DevSecOps Architect
u Certified Ethical Hacker
CTO, Ariel Partners
FLC/FLG AKC/AKT/KCP
,
CSM/CSP/CSPO,
ITILv3, PMI-ACP, PMP, CLP, SPC, CEH
ICP-ACC, ICP-ATF, PSM-II, PSK
cstrong@arielpartners.com
https://www.linkedin.com/in/cstrong
@ckstrong1
3
4. 4
Agenda
1. Introduction & Context
2. Identifying Outcomes
3. Exercise One
4. Visualizing Strategy with Outcomes
5. Exercise Two
6. Key Takeaways
7. Questions
6. 6
Strategic Objectives
Modernize In Theater Communications Infrastructure
Deploy OCONUS Cloud Computing Under Enterprise
Construct
Protect Data in the Cloud While Enabling
Information Sharing
Become a Data-Centric Organization that uses data
at speed and scale for operational advantage and
increased efficiency.
7. 7
Operational Level
Depot Maintenance Accounting & Production System
Scrum Development
Automated Civil Engineer System
ACES
Scrumban
Automated Business Services System
ABSS
Scaled Agile Software Development
Kanban O&M
AFEMS
Air Force Equipment Management System
Stock Control System
Waterfall
DMAPS
Data Center Consolidation
Hybrid
11. 11
Some Definitions
q Output is the amount of something a person or thing (such as a factory)
produces : E.g., finished projects or printed newspapers.
q Outcomes are the (business) results of outputs: E.g., new paying
customers, sold newspapers.
q Measurement quantifies the characteristics of an object or event, which
we can compare with other things or events: E.g., the revenue of 2022 or
the number of customers.
If we want to connect Strategy to Execution,
we should connect outputs with measurable outcomes
12. 12
Measuring Outcomes
q Many outcomes seem difficult or impossible to measure at first glance
q Examples:
• live a healthier life
• increasing the IT security
• improving employee satisfaction
q If we figure out what we mean, that's half the battle of measuring it.
If I had an hour to solve a problem, I'd spend 55 minutes thinking
about the problem and five minutes thinking about solutions.
13. 13
Decomposition
We need to decompose the problem into countable entities!
1. If it is relevant, it can be recognized or observed.
2. If it is observable, it can be described as a quantity or a
range of values.
3. If it can be described as a quantity or a range of values,
it can be measured.
14. 14
Hours doing
sport
Measurable-ish
➚
Decomposition
When decomposing, the following questions can help:
q What do you mean when you say XYZ?
q Let's imagine that you have reached the outcome.
What would you observe differently today?
Live a healthier life
Time in
fresh air ➚
measurable
Smoking
➘
measurable
activeness
NOT
measurable
➚
Number of
steps per day
➚
measurable
Swimming laps
per week ➚
measurable
15. 15
Group Exercise 1: 1 Table = 1 Team
6 2
Exercise
min
6
Debrief
min
6
q Create Outcomes for TWO GOALS
1. Improve IT security.
2. Improve employee satisfaction.
q Decompose the goals into a tree until you get to
measurable outcomes
q Capture non-measurable in one color, measurable in
another
17. 17
Measuring Success: Outputs Versus Outcomes
u Specific, non-binary
u Measurable
u Achievable
u Relevant
u Time-Bound
Complete all RMF
documentation for
Snowflake
Import all currently
available data sources into
Denodo
Achieve passing test report
for new cloud-centric data
mesh solution
House All F-xx airframe supply
chain information in single
online EBOM by Q2 2024
Secure five alternative
suppliers for at least 90% of
airframe fuel tanks by 2027
Shared battlespace across
OCONUS has weather, ground
cover, and supply info no more
than 5 seconds old by Q2 2026
Outputs Outcomes
18. 18
Outcomes As Indicators
Future
Possible indicators:
q Number of escaped defects➘
q Time spent in peer reviews➚
q Percentage of code coverage➚
Intended outcome:
q Increase annual uptime
reliability to 99.9%
Today
Improve
Reliability
Goal
An indicator is a measurement that
shows the progress of something.
19. 19
Connecting Outcomes at Three Horizons
connect
indicator
indicator
indicator
LONG-TERM
BUSINESSOUTCOMES
MID-TERM
OUTCOMES
SHORT-TERM
OUTCOMES
ACTIONS
connect connect
Connect outcomes to other outcomes and to actions.
The right side is an indicator for the left side.
20. 20
Visualizing Strategy with Outcomes
Wildly
Important
Goal
Become the leading
drone supplier in USA
for delivery of
essential goods to
remote areas
uBreak down the WIG into measurable outcomes at three horizons
uIdentify specific action(s) that will achieve the short-term outcome
uEach outcome acts as an indicator that we are making progress on
the WIG (selected strategic objective)
uReview and adjust at least weekly
A drone cluster can carry
a payload that is bigger than
what a single drone can carry
21. 21
Insurance Example: Corporate Strategy
Wildly
Important
Goal
Become leading
mutual life insurance
company in the US
Outcomes
Achieve $20B in
revenue from life
insurance products
Actions
Invest in an Insuretech that
leverages AI/Machine
Learning to simplify
underwriting approval
Kickoff a major advertising
campaign to raise awareness
of our offerings
Acquire a smaller
competitor that can provide
access to new markets
Consolidate and streamline
older policy admin systems
with new system
Reduce average time
from start of
application to bound
policy from 3 months
to 3 weeks
Increase penetration
of US households
from 0.5% to 1.5%
22. 22
Federal Example: Disability Case Processing System
Mid-Term
Outcome
Q4 2025
Short-Term
Outcome
Q1 2024
All legacy
disability
systems in US
(MicroPact,
MIDAS, ACPS,
Cornhusker)
are retired
Build two-way
mainframe
interface for
MicroPact
JSON Financial
API
System Capabilities
Single unified
system can
process all US
disability
claims
Wildly
Important
Goal
Long-Term
Outcomes
2H 2027
All non-SC,
non-expedited
disability cases
for 46
MicroPact
states can be
managed
non-SC, non-
expedited
disability case
can be entered
for one state
Todo Doing Done
Modern
case
manage-
ment UI
23. 23
Group Exercise 2: 1 Table = 1 Team
1. Identify (actual or hypothetical) strategic objectives for your
organization or program
2. Select one per table to work on
3. Work together to identify potential outcomes at three distinct
time horizons
4. Add possible action(s)
Exercise
min
10
Debrief
min
6
Become a
world-class
marathon
runner
Run 26
miles in 3
hours
Run 10K
in 50
mins
Run 3
miles in
30 mins
Run 10
miles per
week
Swim 10+
laps
2x/week
1 year 6 months 3 months
Objective
(WIG)
Actions
25. 25
Pharma Example
Revenue
from
Anti-Cancer
Doctor
Presentations
Week
Become leading
supplier of anti-
cancer drugs in
USA
Long-Term Goals
2023 - 2025
Wildly
Important
Goal
1 Year Outcomes
By 31 Dec 2023
< 3 Months
By 30 June 2023 Next
In
Progress
Measure
Success
New lymphoma
drug
to market
3 lymphoma
drugs in human
trials
5 lymphoma
drugs in animal
testing
Doctors have
40% better
awareness
Doctors prescribe
our drugs over
Competitor 20%
Doctor awareness
equals competition
QRS
Formula β Mutation
Testing
Social
Media
Campaign
New
absorption
coating
Equipment
in
repair
Week
Quarter
26. 26
Linking Strategy to Value Streams
Wildly
Important
Goal
Ready Hypothesize Refine Explore Validate
Ready 4
Engineering
In
Progress
Internal
Test
Send
Out
Initiative
Nano
Particle
Selection
Business As
Usual
Initiative
β Mutation
Testing
β Mutation
Testing
28. 28
Insurance Example: Corporate Strategy
Wildly
Important
Goal
Become leading
mutual life insurance
company in the US
Outcomes
Achieve $20B in
revenue from life
insurance products
Actions
Invest in an Insuretech that
leverages AI/Machine
Learning to simplify
underwriting approval
Kickoff a major advertising
campaign to raise awareness
of our offerings
Acquire a smaller
competitor that can provide
access to new markets
Consolidate and streamline
older policy admin systems
with new system
Reduce average time
from start of
application to bound
policy from 3 months
to 3 weeks
Increase penetration
of US households
from 0.5% to 1.5%
1. Notice how the actions involve
teams from all across the
organization: sales, IT, legal,
underwriting, marketing
2. Imagine what an iteration
review/demo looks like for all this?
This is where magic happens!
Long-Term
Med-Term
Short-Term
29. 29
NO! We can and _must_ leverage the strategic
viewpoint on our projects and programs
Here is an example...
But Wait-- Isn’t Strategy all Pie-In-the-Sky?
30. 30
Federal Example: Disability Case Processing System
Mid-Term
Outcome
Q4 2025
Short-Term
Outcome
Q1 2024
All legacy
disability
systems in US
(MicroPact,
MIDAS, ACPS,
Cornhusker)
are retired
Build two-way
mainframe
interface for
MicroPact
JSON Financial
API
System Capabilities
Single unified
system can
process all US
disability
claims
Wildly
Important
Goal
Long-Term
Outcomes
2H 2027
All non-SC,
non-expedited
disability cases
for 46
MicroPact
states can be
managed
non-SC, non-
expedited
disability case
can be entered
for one state
Todo Doing Done
Modern
case
manage-
ment UI
Even short-term
outcome requires
delivery to production
31. 31
Summary
u Outcomes with “SMART” characteristics help clarify and sharpen
strategy
u Identify Outcomes at three separate time horizons
u Strategic Boards tie objectives to outcomes, and outcomes to
tangible, concrete actions
u Bring strategy to life with Agile interactions: executives, delegates,
stakeholders meet and discuss regularly
u Get started quickly, refine and adjust continually
u Compatible with waterfall, XP, SAFe, LeSS, Scrum, Kanban, Flow
Framework, Scrum@Scale, TameFlow, etc. No upfront re-org
necessary