Process versus outcome scoring
Score the quality of the reasoning and the quality of the result separately, producing four cases rather than one verdict.
- Time cost
- 15 min
- Output
- Two scores and a named quadrant.
- Steps
- 5
Use when
- Reviewing any decision whose outcome depended partly on chance.
- A team is punishing bad luck or rewarding good luck without noticing.
- You want to learn from a decision rather than just feel about it.
Do not use when
- The outcome was fully determined by the decision, with no chance involved. Then the two scores are the same score.
Inputs required
- A decision with a recorded rationale
- Its outcome
- Honesty about what was knowable at the time
Procedure
- 01
Score the process first, and alone
Given only what was knowable then, was the reasoning sound? Do this before looking at the outcome, or the outcome will contaminate it.
- 02
Score the outcome
Did it work? Separately, on its own terms.
- 03
Place it in the four cases
Good process, good outcome: deserved. Good process, bad outcome: bad luck, and the process should be repeated. Bad process, good outcome: luck, and the most dangerous case because it reinforces the error. Bad process, bad outcome: the only one that is genuinely instructive without effort.
- 04
Treat the bad-process-good-outcome case seriously
It feels like success and teaches the wrong lesson. Name it explicitly when it occurs, or the process will be repeated until it fails.
- 05
Act only on process
Change what you do based on the process score. The outcome score is information about the world, not about your judgement.
Characteristic failure mode
Worked example
A person reviews an investment made two years earlier that returned well.
- 01Process, scored first: no diversification, no stated thesis, size chosen by what was available.
- 02Outcome: strongly positive.
- 03Case: bad process, good outcome.
Result
The correct action is to change the process despite the result. Left unnamed, this case generates confidence in a method that worked once by chance.
Where to go next