Urquhart "Urko" Wood - Strategy Adviser, OH Lead, Strategyn Consulting

The Ideas-First Approach Can’t Deliver Predictable Growth
Infer customer needs
Generate ideas
Filter out bad ideas
Fine tune good ideas
Ideas-First
80% – 90% failure rate
“Nothing is less productive than to make more efficient that which should not be done in the first place.”
Peter Drucker

Needs-Driven Innovators Outperform Their Peers in all Key Business Metrics
2x innovation success rates 1
70% advantage in market share 2
2X ROA 2
3X higher growth rate 2
Needs-driven companies delivered shareholder returns of 150 percent while the S&P 500 delivered 14 percent between 2001 and 2007 3
1The Journal of Product Innovation Management
2 The Customer Connection: The Global Innovation 1000. Jaruzelsky and Dehoff, Booz Allen, 2007
3RanjavGulati, HBS Professor

What Kind of Customer Needs Should be Captured For Innovation?
“Make the ¼ hole”
is the job
“People don't want to buy a quarter-inch drill. They want a quarter-inch hole!”
Theodore Levitt - 1975
The ¼ drill is the solution

People “Hire” Products/Services to Get Jobs Done
A job is a task, goal or objective a person is trying to accomplish or a problem they are trying to resolve
Customers migrate to products that get the job done best – they are “loyal” to getting the job done
Open an artery
Diagnose a health issue
Prepare taxes

Key to Innovation: Focus on the Job
The job is the stable, long-term focal point around which to create value
Products are point-in-time solutions that enable customers to get jobs done
The goal of innovation is to help customers get a job done better
Surgeon closing a surgical wound
People listening to recorded music
1880
1920
1970
1990
2010
4000 BC
1000 BC
30 AD
1908
1980

Two Options for Innovation
Job
Job
Job
Job
Help customers get a job done better
Help customers get more jobs done

Jobs Define Markets
A market is a group of job executors and the common job or jobs they are trying to get done.
Job – whiten teeth
Job executor – people
Market – people seeking to whiten their teeth

Examples of Markets (Job Executors and a Job-to-be-Done)
Consumers
learn about current events
with newspapers
Consumers
capture images
with cameras
Start-up entrepreneurs
grow their business
with the expertise, information, and funding provided by TechColumbus
Consumers
locate a local vendor
with the Yellow Pages

Step 1: Identify Your “Markets”
Product: ____________________
Product: ____________________
Job Executor:
___________________
Job:
___________________
Job Executor:
___________________
Job:
___________________
Product: ____________________
Product: ____________________
Job Executor:
___________________
Job:
___________________
Job Executor:
___________________
Job:
___________________

Step 2: Select a Market to Grow (The Job Executor and Job to be Done)
Ask about each potential market:
Do customers (want to) execute the job frequently?
Are current solutions unsatisfactory?
Is getting this job done important to them?
Will they pay handsomely to get the job done better?

Step 3: Deconstruct the Job Into Its Steps
The Universal Steps in a Customer Job
Prepare
Set up
Organize
Examine
Confirm
Validate
Prioritize
Decide
Locate
Gather
Access
Retrieve
Define
Plan
Select
Determine
Modify
Update
Adjust
Maintain
Execute
Perform
Transact
Administer
Monitor
Verify
Track
Check
Conclude
Store
Finish
Close
See The Customer-Centered Innovation Map, HBR, May 2008

Nurses Administering Anesthesia
Define
Locate
Prepare
Confirm
Pull drugs, anesthesia
supplies and equipment
Prep the patient and equipment
for surgery
Verify
readiness,
procedure plan
Formulate the
anesthesia
plan
Adjust the
medical and
temperature
therapy
Administer
anesthesia
Monitor the
patients condition
Wake the patient and transfer to post-op care
Execute
Monitor
Modify
Conclude

Consumers Preparing a Meal
Obtain ingredients
Gather tools
Prepare the food
Store tools, leftovers
Serve the food
Clean up
Cook the food

Employers Providing Health Benefits
Investigation Process
Ideal Health Benefits Program
Determine the employees’ requirements on a health benefits program
Determine which health benefits programs to consider
Determine the employees’ requirements on a health benefits program
Minimize the cost of adopting the program
Compare options worthy of consideration
Increase the value of the coverage
Enrollment Process
Minimize program roll out costs
Select the optimal health benefits program
Maintenance Process
Make sure employees understand what health benefits are available
Add/remove employees to the health benefits program
Minimize the cost of administering the program
Make sure employees enroll in the health benefits program
Determine if the health benefits program should be continued
Minimize related company operating costs
Make sure employee enrollments are processed
Uninsured Workers Study California Health Care Foundation

Questions Used to Define the Job Map
What tasks are at the heart of getting the job done? What tasks are central to its execution? When [HIGH LEVEL JOB STATEMENT], what core task or activity comes to mind?
Call this [STEP X]
What must happen before [STEP X] to ensure the job is successfully executed? [Repeat for new answers / Ensure that these other steps are universal]
How does this job begin in your opinion?
What must be defined/known, located/gathered, prepared/set-up, and confirmed/validated to get the job done? What decisions must be made?
What must happen after [STEP X] to ensure the job is successfully executed? [Repeat for new answers / Ensure that these other steps are universal]
What must be verified, monitored and modified during, immediately after, or long after [STEP X] to get the job done?
What types of trouble-shooting or problem resolution might be required as/after the job is executed?
How does this job conclude in your opinion?

Step 4: Identify Related Jobs
In addition to helping customers listen to music, also help them acquire music, organize their favorite music, etc.
In addition to quenching thirst, help customers replenish vitamins and minerals, stay focused during a meeting, etc.

Step 5: Identify Emotional Jobs
Personal Emotional Jobs are how we want to feel while executing a functional job.
“How do you want to feel as a result of (doing core functional job)?”
“What feelings do you want to experience or avoid?”
Social Emotional Jobs are how we want to be perceived by others while we are executing a functional job.
“How do you want to be perceived by others, i.e., friends, peers, etc. as a result of (core functional job).”

Step 6: Identify Where There Is Dissatisfaction
What makes this job – or parts of it – challenging, inconvenient, or frustrating?
In what contexts do customers most struggle with executing the job today? Where else or when else might customers want to execute the job?
What trends affect the way the job will be executed in the future?
What makes this step time-consuming or slow?
What causes variability (or unreliability) in executing this step? What causes execution to be unpredictable or go off track?
What aspects of this job are wasteful, ineffective or inefficient?

Step 7: Conduct Focused Idea Generation Sessions to Devise Solutions
Job
Job
Job
Job
Help customers get a job done better
Help customers get more jobs done

Summary of Action Steps to Drive Growth
Step 1: Identify your markets (job executors and job)
Step 2: Select a market to grow
Step 3: Deconstruct the job into its steps
Step 4: Identify related Jobs
Step 5: Identify emotional Jobs
Step 6: Identify where there is dissatisfaction
Step 7: Conduct focused idea generation to devise solutions
Step 8: Develop and commercialize new products/services
Step 9: Drive top line growth through innovation

For more information contact:
Urquhart (Urko) Wood
Strategy Advisor
Ohio Practice Lead
W: 614-985-7680
M: 614-309-1232
www.strategyn.com
© Strategyn 2010

Urquhart "Urko" Wood - Strategy Adviser, OH Lead, Strategyn Consulting

by TechColumbus Ohio on Jul 02, 2010

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Urquhart "Urko" Wood - Strategy Adviser, OH Lead, Strategyn Consulting — Presentation Transcript