Methods and Outcomes
There are two kinds of decisions, methods and outcomes. Be sure which you are making.
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When you make a plan, you are deciding where you want to go (outcome) and how you will get there (method). Methods and Outcomes always seem closely related, since it’s hard to think about one without the other. The path and the destination are both part of the journey!
However, if you’re trying to make a decision it’s almost impossible to do if you consider both at the same time.
Let’s say you’re trying to decide about your sales plan for next year. You might start with the sales target you want to hit, but then consider the sales team you have and the limits they face. Those limits lead you to a different sales target, but then that target might not be enough? So then you consider whether to change the target or change the team. If you aren’t careful it quickly becomes a circular argument as you jump between the sales goal (outcome) and sales team & process (method).
While it’s true that Methods and Outcomes are related, you need to choose one before the other. There are two ways you might do this:
Bottoms-Up. If you start with the methods and use those to estimate the outcomes, that is bottoms-up planning. For example, if you look at your sales team you can estimate how much they will sell next year based on what they sold this year, giving you a sales target.
Top-Down. If you start with the outcome, and then choose the methods to reach that outcome, that is top-down planning. For example, if you set a sales goal for next year it might not be possible with the sales team you have! In that case you need to build a new sales team to reach the new goal, creating a new method to reach the outcome.
Both approaches are valid forms of planning! In some cases it makes sense to start with Methods, such as when your options are limited. In some cases it makes sense to start with Outcomes, such as when you need to make radical changes to your business.
The only danger is not being clear whether you are choosing Methods or Outcomes in any given decision! I work with many teams stuck in circular arguments that have no end in sight because they are conflating the two. One side argues for Methods and the other side for Outcomes and there is no resolution possible.
To avoid this trap, just make sure that you establish before any discussions what is being decided. It’s easy! If we’re talking about the sales plan for next year, are we talking about the revenue target (outcome) or the sales team & process (method)?
Another, more subtle trap, is when your team believes both their Methods and Outcomes are decided for them. If you choose a goal and tell someone they have only one way to achieve it, you have removed all of their agency. Great employees want agency as they want to make decisions and contribute to the company’s success.
To get the best performance from your team, you want to give them an Outcome and challenge them to choose the Method to get there. Or, you want to give them a Method and challenge them to create the best possible Outcome using it. Either way, you have given them direction and they have the agency to make great things happen.
If you look at some of the major debates at your company right now, I bet a few of them are the result of conflating Methods and Outcomes. It happens at every level of the business, from company strategy to specific tactics.
Like all frameworks, this framework is a Method. The question is what is the Outcome you want to create?
For more on Strategy, see:
Great distinction! Another common area of confusion is distinguishing strategy vs tactics. I think that maps pretty cleanly to your framework here as well.