Table of Contents

Overview

Outcome-Based Scrum represents a fundamental shift from traditional Scrum’s focus on outputs (tasks, user stories, velocity) to measurable business and customer outcomes. It ensures teams deliver real-world impact, not just completed work.  

Key Differences: Traditional vs. Outcome-Based Scrum 

Traditional Scrum 

  • Focus: Delivering features (user stories, tasks).  
  • Metrics: Velocity, burn-down charts, story points.  
  • Success Criteria: “Did we complete all sprint backlog items?”  
  • Planning: Sprint goals tied to feature completion.  
  • Product Owner Role: Backlog management and prioritization. 

Outcome-Based Scrum 

  • Focus: Achieving customer or business outcomes (e.g., increased retention, higher conversion).  
  • Metrics: Customer satisfaction, OKRs, NPS, revenue impact.  
  • Success Criteria: “Did we solve a real problem or move the business needle?”  
  • Planning: Sprint goals tied to measurable outcomes (e.g., “Reduce churn by 10%”).  
  • Product Owner Role: Owns vision, outcomes, and product strategy. 

Core Principles of Outcome-Based Scrum 

  1. Outcome-Aligned Sprint Goals  
  1. Example: “Improve first-time user onboarding conversion by 15%” (vs. “Build an onboarding tutorial”). 
  1. OKRs & KPIs Drive Prioritization  
  1. Teams align with Objectives and Key Results (OKRs) or North Star Metrics. 
  1. Continuous Customer Feedback  
  1. Short feedback loops (analytics, user interviews, A/B tests) validate impact. 
  1. Embedded Product Discovery  
  1. Teams use experimentation and dual-track Agile to find what works. 
  1. Evidence-Based Management (EBM)  
  1. Measures value delivery using:  
  1. Current Value  
  1. Unrealized Value  
  1. Time to Market  
  1. Ability to Innovate 

Example: Output vs. Outcome Sprint Goals 

  1. Traditional (Output): 

“Build a two-factor authentication feature.”  

  1. Outcome-Based: 

“Increase user login success rate by 25% without increasing support tickets.”

Benefits of Outcome-Based Scrum 

  • Delivers real business value (e.g., revenue growth, reduced churn).  
  • Reduces waste by cutting low-impact features.  
  • Boosts team motivation by connecting work to tangible outcomes.  
  • Aligns teams with strategy (not just tasks).  
  • Encourages adaptability through hypothesis-driven development. 

Who Benefits Most? 

Ideal Candidates 

  1. Product-Centric Companies (SaaS, e-commerce) – Success depends on user behavior (e.g., conversion, retention).  
  1. Innovation-Driven Teams (Fintech, R&D) – Thrives on experimentation and fast learning.  
  1. Enterprises Adopting Agile – Shifts focus from “on-time delivery” to “real impact.”  
  1. Consulting/Service Firms – Clients pay for results, not just deliverables.  
  1. Nonprofits & NGOs – Measure mission-driven outcomes (e.g., people helped). 

Challenges for Adoption 

  • Command-and-control cultures (focused on task completion).  
  • Teams without customer feedback access.  
  • Rigid, contract-driven environments are resistant to change. 

Case Study: SaaS Company Reduces Churn

Problem: 8% monthly churn due to poor onboarding.  

Old Approach (Output-Focused):  

  • Sprint Goal: “Build onboarding tutorial videos.”  
  • Result: Videos completed, but churn unchanged. 

New Approach (Outcome-Based):  

  1. Outcome Goal: “Reduce churn by 15% in 3 months.”  
  1. Sprint 1: Tested progress tracker → Reduced setup time by 25%, but only 5% churn improvement.  
  1. Sprint 2: Pivoted to guided feature tours → Feature adoption rose 50%, churn dropped to 6%.  
  1. Final Result: 35% churn reduction (to 5.2%). 

Key Takeaway: Outcomes > Outputs. Teams iterated based on data, not just backlog items.