The shift in paradigm: Instead of taking a repeated approach to improving the product, we're trying to improve how the business (as a whole) delivers Beneficial Outcomes.
This means that when we iterate, we iterate to bring the success rate of a process up. For example, if we're an invoice sending company, how can we iterate toward having more of our users successfully get paid once.
Taking an "improve the product" approach is thinking about the problem from the perspective of the business's timeline — what competitors are doing, where the market is, what features you need to raise the next round of funding. The theory is that if you can make a higher and higher quality product, you can reliably sell access to it month over month for a fee. That if you make a more compelling product, then more users will want to engage with it. And thus, you will have more revenue coming in.
Value Paths, in contrast, argues that the quality of the product is not as important as the quality of the outcome that the product facilitates. That's what practitioners should really be paying attention to from a measurement standpoint, both in terms of whether outcome delivery is improving over time and in terms of whether delivering this outcome helps create more revenue.
The key is to create an outcome-based feedback loop, where measuring step drop-off influences how we improve the process and improving the process helps us get clearer on the nature of the Beneficial Outcome.
From: VPP Episode 04 (20.19)