Decoding inputs, outputs and outcomes to deliver value for money

Monitoring and evaluating results is a key aspect of all the work we do. To understand if the results produced by our actions reflect our objectives.

Many people confuse outputs and outcomes.

An understanding how your organisation uses inputs (financial, human and other capitals) to deliver outputs (products or services delivered via processes from inputs) which translate to outcomes (effect of your outputs) is key to evaluating success. By doing so you understand the impact of your actions - your effectiveness.

An example of an outcome is customer satisfaction. Customer satisfaction is not produced but it is the result of a number of outputs. Outcomes are about “shifting the dial” on key metrics.

Understand the distinction between outputs and outcomes is a key aspect in determining value for money. This model demonstrates the linkages between inputs, outputs and outcomes and how they contribute to the 3 E’s of value for money.

The next time you are developing a budget or business plan or are evaluating your results a good first step is to outline how your business uses resources to deliver on outcomes.