Marty Cagan Highlights Critical Distinction Between Product Output and Outcome Models

In a recent LinkedIn post, Marty Cagan shares his perspective on a crucial distinction in product development: the difference between a project model focused on output and a product model focused on outcome. Cagan emphasizes that this is not a new concept, tracing its roots back to the early days of aviation.

As Marty Cagan notes:

This is another truly important article from Mike Fisher, contrasting the project model/output and the product model/outcome approaches to product development.

Cagan uses this observation to underscore the enduring relevance of Mike Fisher’s article, which he shared alongside his post. The core of Fisher’s argument, as highlighted by Cagan, is that these two fundamental approaches to development have coexisted for over a century.

The Historical Context of Product Development Models

According to Marty Cagan, the dichotomy between output-driven projects and outcome-driven products has been a persistent theme in development history. He points to the early 20th century as a time when these different philosophies were already apparent.

Marty Cagan elaborates on this historical context:

As Mike points out, the two models have existed since at least the beginning of flight (1903), and continue right up to the present day…

This historical framing, according to Cagan, serves to illustrate that the challenges and debates surrounding product development methodologies are not recent phenomena. Instead, they represent fundamental, long-standing differences in how teams approach creating value.

Contemporary Examples Illustrating the Divide

Cagan connects this historical perspective to contemporary examples, suggesting that the principles discussed by Fisher remain highly relevant. He implies that understanding this distinction is key to successful product strategy in today’s business environment.

In Marty Cagan’s view, the ongoing prevalence of these models means that organizations continue to grapple with the implications of prioritizing one over the other. He suggests that effective product development hinges on a clear understanding and intentional adoption of the outcome-oriented product model.

Cagan further reinforces the importance of Fisher’s article by stating:

Worth the read:

This recommendation underscores Cagan’s belief that the insights provided by Fisher, and by extension his own commentary on the post, offer significant value to anyone involved in product development. The distinction between churning out features (output) and achieving specific business results (outcome) is, in Cagan’s estimation, a critical factor in differentiating successful product organizations from those that struggle to deliver meaningful impact.