People buy products to get jobs done
Theodore Levitt said it years ago: people buy products and services to help execute a task or achieve a goal. The jobs-to-be-done theory explains it more eloquently: people buy products and services to get a "job" done.
To be a market leader, a company must create product, service, or software solutions that help customers get their jobs done better than competing solutions. Thus, a company's success is dependent on its ability to understand the job its customers are trying to get done. Making the "job" the unit of analysis makes it possible to think differently about all aspects of strategy and innovation. Since 1991, Strategyn and innovation expert Tony Ulwick have been at the forefront of transforming jobs-to-be-done theory into practice.
Strategyn’s first major success applying the jobs-to-be-done framework came in 1994 when we helped Cordis Corporation (now a J&J company) reinvent its line of angioplasty balloon products. By understanding the job that interventional cardiologists were trying to get done (restore blood flow in an artery), we discovered a number of hidden growth opportunities and conducted a series of strategy sessions to help Cordis create a new product line. In less than 18 months, the company launched 19 new products, all of which became number 1 or 2 in the market. Cordis’ market share increased from 1 percent to more than 20 percent, and its stock price more than quadrupled. This success and the process we used to achieve it was showcased in the 2002 Harvard Business Review article Turn Customer Input into Innovation.
Inspired by this and other successes, we continued the refinement of our practices, ultimately resulting in the creation of our powerful innovation process, Outcome-Driven Innovation (ODI).
To get acquainted with Strategyn and ODI, we invite you to put this methodology to work for your company in a Jobs-To-Be-Done Ideation Day. In this 1-day workshop, we navigate your team through a unique innovation journey, helping them: (1) define the customer’s job-to-be-done, (2) construct a job map that reveals hidden growth opportunities, and (3) envision the ultimate, breakthrough solution. Using the practices we popularized in the seminal jobs-to-be-done book What Customers Want (McGraw Hill, 2005) and The Customer-Centered Innovation Map, (HBR, May 2008), we inspire your team to grow its core markets and discover attractive adjacencies.
We’ve helped hundreds of product teams create new products and services with a success rate that that is five times the industry average. Whether you are in a Fortune 1000 firm, SME, startup, or non-profit organization, we can do the same for you. Call us at 855-584-2212 to learn more about this offering. With everything from workshops to market and product strategy initiatives to customized innovation programs and training, Strategyn can help your company address its innovation challenges and achieve its growth objectives. Also, read on below to learn how we have applied jobs-to-be-done theory to impact what are arguably the three most important business processes: innovation, product development, and marketing.
Grow, enter, or disrupt a market: call us at 855-584-2212 to learn how our application of jobs-to-be-done theory can help your company grow.
Jobs-To-Be-Done Framework For Innovation
Uncovering all the customer needs in a market is extremely difficult. The jobs-to-be-done theory advances the innovation process because it makes it possible to know all the customer needs in both existing and new markets. A job-to-be-done has a beginning and an end. As such, it can be analyzed as a process: it can be broken down into process steps and analyzed, using six-sigma-like thinking, to see where customers struggle to get the job done. (See the jobs-to-be-done framework.)
It turns out that customers use between 50 and 150 metric-based desired outcome statements to describe the successful execution of a typical job-to-be-done. When looking at innovation through a jobs-to-be-done lens, these desired outcomes are the customer needs. We have developed methods to extract outcome statements from customers and built an innovation process that uses these statements as a key process input. This is where our Outcome-Driven Innovation process gets its name.
Knowing all the customer outcomes in a market (and which ones are unmet) makes it possible to systematically construct a solution that will help customers get the job done significantly better. While traditional innovation methods have a less than 20 percent success rate, our application of Outcome-Driven Innovation results in success over 80 percent of the time. This is no accident. Our jobs-to-be-done approach to innovation mitigates the risks that cause traditional innovation methods to fail. It makes it possible to know in advance of product development just how much better a new product concept will help customers get a job done.
Over the past 22 years, Strategyn has used the jobs-to-be-done framework to reinvent the entire innovation process. This has resulted in a new way to define customers, markets and needs, a new way to segment and size markets, and a new way to construct and test ideas. All these advancements are embodied in our 12-step ODI process, which is outlined to the right, showing the order in which we execute the innovation process steps. The process begins with jobs-to-be-done research that acquires the inputs (the insights and information) necessary to assure that an idea, when conceived, developed and launched, will be a winner. This is the predictive power of the jobs-to-be-done framework.
Define the primary customer as the job executor: the person using the product to get a job done.
Define the market as the job executor and the job they are trying to get done.
Define customer needs as outcomes: the metrics customers use to measure success when executing the job.
Uncover market opportunities by discovering where customers struggle to get a job done: the underserved outcomes.
Discover the segments of customers that struggle most to get the job done, and why.
Size the market based on the number of underserved job executors and what they will pay to get the job done perfectly.
Evaluate competitive products against the customer outcomes to see where those products fail to get the job done well.
Decide which segments and unmet outcomes to target for value creation and decide whether to pursue a disruptive, breakthrough, sustaining, or product improvement strategy.
Determine what price the target customers are willing to pay to get the job done perfectly.
Construct the product or service concept that best addresses the customer's unmet outcomes, helping the customer get the job done significantly better.
Test the concept against all the customer outcomes to ensure it gets the job done well enough to justify the price point and win in the market.
Position the concept to appeal to the customer's unmet outcomes and emotional jobs.
Jobs-To-Be-Done Framework For Product Development
The key to agile development
The ideal input into the product development process would be a perfectly defined product concept that would almost certainly win the marketplace. With a perfectly defined concept, there would be no need for design changes, modifications and feature creep in development. In fact, the concept that entered the development process would be the exact product exiting the process. In today's world, this is rarely the case because many of the activities that should take place during the innovation process end up getting executed, repeated, or corrected in the development process. This "pivoting" and "failing fast" mentality leads to long, expensive development cycles and it is unnecessary. Pivoting and failing fast become acceptable practices when companies cannot figure out how to get it right in the first place.
Using the Outcome-Driven Innovation process, Strategyn consistently produces robust and well-defined product concepts that require little to no change in development, thereby streamlining the development process. Strategyn clients have found that a robust product definition can cut the development cycle by up to 75 percent.
Our jobs-to-be-done approach to product and service development is unique in one other very important way: the development team is informed of all the customer-defined metrics that were used to define the product concept. In making design trade-off decisions, the team is guided by these metrics, which means the team’s decisions are the right ones. In conventional development processes, designers rarely have this type of customer input. Strategyn’s approach is the ultimate in agile development.
"The goal of agile development is to eliminate failures and pivots. That can only be achieved when your product concept is near-perfect to begin with."
Jobs-To-Be-Done Framework For Marketing
Appealing to emotion and function
When marketing is examined through a jobs-to-be-done lens, it becomes apparent that the goal of marketing is to inform customers of a company's ability to help them get a job done better. Strategyn knows that customers have both functional and emotional jobs they are trying to get done. Marketing a product around its functional benefits and around the factors that bring it emotional appeal is the key to an effective product positioning strategy. This is part of our jobs-to-be-done methodology.
Jobs-to-be-done milkshake marketing
While jobs-to-be-done thinking provides a new and effective way to segment a market, the jobs-to-be-done milkshake marketing example made popular by Clayton Christensen does not explain the application of jobs-to-be-done theory in the way we intended. To learn where his explanation goes off track, see our blog post titled Customer Segmentation Is Soured By Milkshake Marketing.
Defining the customer's job-to-be-done
The first challenge that companies face when applying this theory is defining exactly who the customer is and what job they are trying to get done. While on the surface this seems like it should be a simple task, it is rarely the case. The job must be defined as a process; an activity that consists of a series of steps that customers take to complete a task or achieve a goal or objective. This means that the job-to-be-done is always a functional job; not an emotional job. Here are a few jobs-to-be-done examples.