Outputs vs Outcomes: How are they different and why do they matter in your annual reports?
Annual reports tell a story about your impact. Some metrics do this better than others. To maximize your annual report’s ability to tell your story, knowing the difference between outputs and outcomes is critical. Let's dive into the importance of using outcomes alongside outputs in your annual reports.
Outputs give us the "what" – the tangible, measurable products or services delivered. For a food bank, for example, it's the number of food packages distributed, meals served, and pounds of food provided.
But here's the game-changer: Outcomes are the "why" – the broader, longer-term changes resulting from those outputs. For our food bank example, it's about improved food security, reduced malnutrition rates, and better overall well-being in the community.
Outputs are easy to track and tend to be readily available. So, why bother with outcomes?
Deeper Insight: Outputs capture the "what," but outcomes delve deeper, providing insights into the quality and effectiveness of your services.
Long-term impact: Outcomes reflect sustained positive changes, giving stakeholders a glimpse into the lasting impact of your organization.
Causality connection: Outcomes help explain the link between your activities and the positive changes observed, proving the causal relationship.
Engage stakeholders: Outcomes are relatable and compelling, connecting stakeholders emotionally to the real difference your organization makes.
The take-away: This annual report season, enhance your narrative! Blend outputs and outcomes seamlessly to create a compelling story of your organization's journey. Remember, it's not just about the numbers; it's about the lives impacted, communities strengthened, and positive changes sustained. Let's measure what truly matters.
Setting clear indicators, using both qualitative and quantitative measure to evaluate your impact, speaking with community members, researching similar organizations, and connecting with partners across the nonprofit and philanthropic world for capacity building are all ways you can increase your outcomes tracking. If you want more help, you can always reach out to us at AmplifyDMC.