Focus on Outcomes to succeed during the Ecosystem Platform Revolution

TL;DR

Financial institutions must differentiate between outputs (such as sales numbers) and outcomes (such as achieving client goals) to create real value in the industry.

Transcript

[Applause] hello i'm your host steffy pilarino and today i am looking south and north in europe italy germany and i have a good friend an amazing author and speaker paolo cironi welcome paolo i'm always pleased to have a conversation with you and your audience yes and uh you know we we started this series of conversations with the publication of yo... Read More

Key Insights

• 🐕‍🦺 The fourth industrial revolution necessitates an understanding of outcomes rather than just outputs in the financial services industry.
• 🥅 Financial institutions should focus on achieving client goals rather than just sales numbers to generate real value.
• ⚓ Uncertainty is the norm in finance, and goals help anchor decision-making in uncertain environments.
• ❓ Financial consciousness, or being aware and responsive to uncertainty, is the desired outcome value in the industry.

Questions & Answers

Q: Why is it important for financial institutions to differentiate between outputs and outcomes?

It allows institutions to understand the true value clients perceive and the way they remunerate the institution based on the outcomes achieved, rather than just focusing on measurable outputs.

Q: Can you provide an example of the difference between outputs and outcomes in financial services?

For example, a bank may aim to sell a certain amount of assets under management (output), but the true outcome is helping clients achieve their personal or business financial goals.

Q: How does uncertainty play a role in decision making in finance?

Uncertainty is the norm in finance, and understanding and accepting this uncertainty is crucial in making informed decisions. Goals serve as an anchor for decision-making amidst uncertainty.

Q: What is the outcome value generated by the new financial services platform?

The outcome value is financial consciousness, which involves using goals and time to make decisions in finance and continuously revising decisions based on prevailing market conditions.

Summary & Key Takeaways

• Paulo Cironi discusses the distinction between outputs and outcomes in the financial services industry.

• Outputs refer to measurable results, such as sales numbers, while outcomes focus on achieving client goals.

• Understanding the difference between outputs and outcomes is crucial for financial institutions to generate real value for clients.