My daughter is in a math class with 23 students and one teacher. Now, imagine she comes home and tells me that the teacher is so good that the school decided to add 27 more students to her class, bringing the total to 50. With more than double the students, will the teacher be just as effective—or even twice as good? Most likely, the teacher will have her hands full! We might guess that students could struggle as a result of divided attention.
When thinking about data and measurement, the number of students served is an output, while their grades, SAT Math scores, graduation rates, and other performance indicators are outcomes.
What’s the Difference and Why It Matters
“Outputs, outcomes, same thing?” is an expression we hear from nonprofit and government leaders. While semantics and jargon are not always critical, the distinction between these two concepts is essential for social sector organizations. Understanding and adopting an outcome-driven approach can mean the difference between mediocrity and the creation of lasting, sustainable change. Organizations stuck on outputs alone risk making decisions that miss the bigger picture. Those that focus on outcomes are the ones driving meaningful impact.
In our workshops, we often use a burger example to explain the difference between outputs and outcomes. McDonald’s sells billions of burgers in a year, and Five Guys sells millions. Based on this information alone, who makes a better burger? Would you conclude that McDonald’s burgers are better just because they sell more? Of course not! Like most people, you would want data on quality, nutrition, and taste before making that judgement. (Full disclosure, I like both!)
Some nonprofit and social service organizations focus on counting “burgers” (the output), because it is the easiest data to track, rather than assessing the real impact of their work (the outcome). They spend their efforts trying to increase the numbers they serve without knowing how their services are changing participant’s lives or circumstances. The more you know, the better you are able to help make a positive change for those you are trying to serve.
Outputs Tell You What Happened — Outcomes Tell You What Changed
In the above example, the number of burgers or people served are the outputs—the tangible result of a process. Your organization’s outputs might include training classes offered, people served, or grants funded. Outputs describe what is produced, but they do not tell the full story of value, effectiveness, or impact of your services for your clients.
Outcomes, on the other hand, are the level of performance or achievement that occurred because of the activity or services your organization provided. Outcome measures are a more appropriate indicator of effectiveness. Outcomes quantify performance and assess the success of the process. In the burger example, some outcomes are the consumers’ perception of quality, or the ability of the product to eliminate hunger.
Outputs do not effectively communicate the success of an organization, nor do they demonstrate how the lives of the people served were impacted. Outcomes, on the other hand, answer critical questions, such as:
- Did the participants learn something new?
- Have parenting skills improved?
- Are children achieving more in school?
Why Focusing Only on Outputs Limits Your Impact
Many social sector organizations focus only on outputs and assume they are making a meaningful impact. However, without measuring outcomes, they may miss whether their efforts are truly improving lives.
Some leaders hesitate to track outcomes because they see it as too difficult or even impossible, which is understandable based on time constraints, funding, etc. But without this data, it is harder to show funders and stakeholders how well an organization is doing at achieving its mission. It can also lead to decisions based on surface-level numbers rather than the true effectiveness of their services.
Understanding and measuring outcomes leads to meaningful change. Outcomes reflect performance levels and should be tracked over time to show progress. Defining clear outcomes before implementing a program or service is crucial—without a baseline, it is difficult to show real impact.
Five Steps to Start Measuring Outcomes Today
You can start measuring your organization’s impact, or outcomes, today by following these five simple steps:
- Describe the outcomes you want to achieve. Ask yourself, why do you do the work or perform the service in the first place?
- Turn the identified outcomes into a quantitative measure (e.g., % of clients demonstrating new behavior, % of clients satisfied with service, etc.).
- Confirm that your desired outcomes are linked to your outputs or activities. In other words, ensure that it is reasonable to expect your desired outcomes to be achieved based on your activities.
- Implement these measures and track them over time.
- Demonstrate and increase your success because you have the data to confidently and appropriately communicate your impact and value.
Let’s Move Beyond Counting Burgers
Are you ready to move beyond counting burgers and start measuring outcomes? Do you need help defining and establishing your outcome measures? Measurement Resources Company is here to help. Let’s chat. It’s not hard work, but it’s real work, and we can help.
Our high-performance measurement services handle the heavy lifting, so you can focus on achieving greater accountability and impact. Contact us for a free 20-minute call to explore how we can help your organization move from outputs to outcomes.
