Decisions
15 min

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
Run it — Decision journal

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

  1. 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.

  2. 02

    Score the outcome

    Did it work? Separately, on its own terms.

  3. 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.

  4. 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.

  5. 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

Resulting — inferring process quality from outcome quality. It is the default human response, it is almost always wrong for anything involving chance, and it makes a decision record worse than useless.

Worked example

A person reviews an investment made two years earlier that returned well.

  1. 01Process, scored first: no diversification, no stated thesis, size chosen by what was available.
  2. 02Outcome: strongly positive.
  3. 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.

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