Input, Output, Products, Billable Hours Outcomes
The best strategies, business models, and jobs today are all about outcomes - not about input or output, not about products or billable hours. They are focused on the ultimate value for the customer and the outcomes for all stakeholders.
ERA OF CHANGE
The traditional model of doing business is being turned upside down right now. Organizations cannot just build and sell products, offer long-term jobs, pay for input or output, and rely on loyal customers purchasing through established channels with stable supply chains anymore. A broad range of profound changes happening all at once is pushing leaders and their teams to take decisive action.
Age of the Customer
Customers today have more information, choices, and power than ever before. They demand customized outcomes and prefer to pay only for value, not for products or billable hours. Businesses that fail to deliver immediately fall behind.
Age of the Employee
As labor shortage and the war for talent intensify, employee engagement diminishes at the same time. Workers no longer just seek jobs for pay; they want meaningful work that allows them to contribute flexibly to business outcomes, from anywhere and on their own terms.
Age of Exponential Technology
Rapid technological advancements shorten product lifecycles and disrupting all industries. Leaders must develop relsillient organizations that can continuously innovate their products and services to ensure competitive outcomes for their customers daily.
Age of a Multipolar World with Systemic Battles
Global supply chains are becoming weakened, and geopolitical tensions, along with systemic conflicts, are challenging leaders to adapt. To deliver the expected outcomes despite the turbulent environment, they need to build adaptive and hyper-resilient organizations with autonomous yet efficient structures.
Age of Climate Crisis
The climate crisis increases resource costs, leading to stricter regulations and changing customer preferences. Only businesses that contribute to the solution and manage both the positive and negative impacts they have on all stakeholders will survive.
Learn more about how enterprises are building their organizations around the outcomes they want to achieve in our Outcome Economy Podcast!
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The Outcome Economy forces organizations and their leaders to drive change in three main dimensions:
Leading companies move away from one-time sales, such as cars or DVDs, towards ongoing services like streaming subscriptions or car-sharing programs, focusing on continuous value delivery for the customer. This shift means customers only pay for outcomes, such as entertainment or transportation, rather than owning underused items.
By offering services with permanently updated technology, these outcome-based business models are more efficient, flexible, and sustainable, building on long-term customer relationships rather than on products. Embracing these models requires businesses to adapt to being more outcome-oriented in their plans, structures and collaboration.
In today's fast-paced economy, organizations must continuously improve their products and services to meet evolving customer expectations. Challenges like fragile supply chains, political uncertainty, labor shortages, and employee turnover compel businesses to invest into resilience and efficiency. Stakeholders, from employees to shareholders, expect the delivery of promised outcomes under any circumstances. Achieving competitive outcomes requires adopting outcome-based approaches in planning, collaboration, and evaluation, with operating models and governance structured around these goals.
Outcome-based business models and organizations, for the best possible outcomes for all stakeholders cannot be achieved without outcome-driven leadership and governance. Leaders and decision-makers need to define clear and attractive goals, while establishing outcome-centered environments around them. They need to ensure guidance and accountability, but also autonomy and empowerment for teams to choose the best way to achieve the aspired outcomes.
In a world reshaped by the Outcome Economy, guiding companies toward outcomes is a crucial leadership skill and organizational capability. Outcome Management emerges as a comprehensive framework and philosophy, applying an outcome-driven mindset to all aspects of leadership, organization, and work.
Outcome Management, as a strategic framework, offers ideas, best practices, and process models for every aspect of an organization, including planning, goal setting, budgeting, metrics implementation, organizational structures, and compensation models. It empowers leaders to drive change within their organizations, operating models, and culture to achieve their most important goals.
