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An Intro to Jobs-To-Be-Done

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Important elements of this presentation are better covered in my later presentation titled "What Is Jobs-To-Be-Done?" I recommend that readers start with that.

Are you an innovator, entrepreneur or product manager? Do you want to understand what causes people to purchase, adopt and re-purchase products and services? This presentation gives you an introduction to Jobs-To-Be-Done—a theory of the market that seeks to answer these questions and more.

Published in: Business

An Intro to Jobs-To-Be-Done

  1. 1. An Intro to Jobs-To-Be-Done A Theory of the Market “The customer rarely buys what the business thinks it sells him. One reason for this is, of course, that nobody pays for a ‘product.’ What is paid for is satisfaction. But nobody can make or supply satisfaction as such—at best, only the means to attaining them can be sold and delivered.” 1 — Peter Drucker
  2. 2. Why JTBD?
  3. 3. Quantity Price Supply Demand • What is the nature of demand and supply? • How do people:  Assess value?  Determine substitutes and alternatives?  Decide what solutions to buy and use? “People don't want quarter-inch drills. They want quarter-inch holes.” 2 — Theodore Levitt
  4. 4. Case Study: Transportation Solution vs.Toyota Prius Prime Plug-in hybrid powertrain 25 miles EV range 4 seats MPG: 54, MPGe: 133 68% of Americans commute 15 miles or less to work (one way). – U.S. Department of Transportation Honda Civic • ICE powertrain • 5 seats • MPG: 32/42 Chevy Volt • Plug-in hybrid powertrain • 53 miles EV range • 5 seats • MPG: 42, MPGe: 106 Chevy Bolt • Electric powertrain • 238 miles EV range • 5 seats • MPGe: 119
  5. 5. vs. If you were a Toyota Product Manager…? Demographics Middle-aged man 2 or fewer children Lives in the suburbs Psychographics Cares for the environment. Perceives Japanese cars as having better quality. Needs (?) (Can you provide an example of commonly accepted need definitions? At your company, do marketing, product, engineering, etc. agree on what is a customer need?) Circumstances I commute less than 25 miles to work. I can charge a car at work. + Relevant demo/psychographics + My previous transportation solution was having age-related defects. Progress / Desired Outcomes Practical: Transport myself to work. Emotional: Set an example of green living. Solution performance relative to a new Honda: Reduce the time spent dealing with malfunctions. Reduce the cost of maintenance. Obviously, price is a factor in any purchase decision but a discussion of price is outside the scope of this introduction. Sample Insights
  6. 6. Art Sciencevs. Do-s and don’t-s, best practices and frameworks tell you, in broad strokes, what to do and may be effective only in specific circumstances. A theory developed from first principles teaches you how to understand the world in all circumstances. “Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.” — proverb
  7. 7. Correlation Causationvs. Demographics Psychographics Needs (?) “One of the first things taught in introductory statistics textbooks is that correlation is not causation. It is also one of the first things forgotten.” 3 ― Thomas Sowell “A theory is a statement of causality.” 4 ― Clayton Christensen Circumstances Progress/ Desired Outcomes
  8. 8. Trial & Error Algorithmic Problem Solving vs. “With a theory to predict what will cause what to happen, breakthrough innovations do not require getting lucky.” 5 ― Clayton Christensen Demographics Psychographics Needs (?) Circumstances Progress/ Desired Outcomes Designing a better solution? Marketing your solution? Which data helps you?
  9. 9. History & Application
  10. 10. Field: Market Research Ulwick (early 1990’s) 2016 2016 2016 (self-published e-book) Bettencourt 2010 Christensen (early 2000’s) 2016 2005 Wunker Klement Moesta (mid-late 1990’s) Research Method & School of Thought Outcome Driven Innovation (ODI) Switch Internally Consistent? Empirically Validated? Generalizable? Theory: Jobs-To-Be-Done           ?   n/a n/a WARNING: Terminology is not standardized across these schools of thought. Berstell (late 1980’s) Customer Case Research
  11. 11. Field: Innovation Strategy Christensen 2005 2003 1997 W. Chan Kim Theory of the Market & School of Thought Jobs-To-Be-Done n/a Generalizable? Theory: Disruptive Innovation   WARNING: Terminology is not standardized across these schools of thought.
  12. 12. Jobs-To-Be-Done Disruptive Innovation Solution Design (e.g. applying Design Thinking, UX Design) Business Model Design (e.g. applying Lean Startup and Business Model Canvas) Deliver Product/Market Fit Reduce risk in new product innovation.
  13. 13. Jobs-To-Be-Done Acquisition Adoption CX / UX Retention Improve Product/Market Fit Increase value through existing product innovation. Improve
  14. 14. Intro to the Theory What Is a Job? This is just a preview. Important concepts have been omitted for simplicity and brevity.
  15. 15. Circumstances An infinite-dimensional topology. You are here. Everything and everyone else is a point in this space. “Circumstances: the existing conditions or state of affairs surrounding and affecting an agent.” — dictionary.com
  16. 16. Change Some circumstances don’t change. Some circumstances change. State Desirable Undesirable In any timeframe… Zone of indifference
  17. 17. Life A trajectory in the space of circumstances. Recurring circumstances
  18. 18. You’re not alone… But, not everyone’s there at the same time. Common circumstances
  19. 19. Fate No decision = No action = Inertial change (i.e. subject to chance and the laws of physics) Aspiration Inertial change Controlled change towards desired circumstances People try to make progress in life—they try to change their circumstances for the better. Decision required: What is “better”?
  20. 20. Inertial change Solve problems inherent in the circumstances (change some circumstances from undesirable to desirable states) Achieve goals afforded by the circumstances (change some circumstances to more desirable states) Prevent the occurrence of problems inherent in the circumstances (prevent the change of some circumstances to undesirable states) Progress Change of circumstances for the better.
  21. 21. Inertial change Progress / Desired Outcomes * “Is trying to make” should be understood as “desires to make” and not as “is struggling to make”. Job “The progress that a person is trying to make* in a particular circumstance.” 6 — Clayton Christensen The Job Circumstances
  22. 22. The Job “A job is always a process to make progress, it’s rarely a discrete event.” 7 — Clayton Christensen Select solution(s) Vertices = Decision points Edges = Process steps = Smaller jobs To traverse the edges, you must do one or more of the following:  Collect and analyze information  Take physical action  Use a product/service
  23. 23. Three categories of solutions:  Decisions  Physical actions  Products or services Inertial change Solutions Things that you can use to change the course of your life for the better. Progress … by all means necessary. Is the glass half full or half empty?
  24. 24. Supply Demand We can begin to answer… • What is the nature of demand and supply? • How do people:  Assess value?  Determine substitutes and alternatives?  Decide what solutions to buy and use? Demand: • Is a job that must be done. • Is created by people in specific circumstances. Supply/Substitutes: Any combination of decisions, physical actions, products and/or services that gets the demanded job done. Market: • The people that have a specific job. • Size = number of occurrences for the job. • Everything else equal, a solution that gets the job done better is more valuable and more demanded.
  25. 25. Intro to the Practice Research Methods
  26. 26. Switch Outcome Driven Innovation (ODI) Studies the selection of solutions to achieve one or more outcomes and focuses on discovering the whole job (i.e. all practical and emotional outcomes in specific circumstances). Excels at discovering circumstances, the competitive solution set and emotional outcomes. For the solution performance outcomes, it discovers mainly those that matter when switching solutions (at the time of the research). Studies the process of achieving one practical outcome across a wide range of circumstances. The circumstances may be open-ended or may be limited by using a contextual common denominator. Discovers some related outcomes. For the studied practical outcome: • Discovers the process of achieving it. • Discovers all poorly satisfied solution performance outcomes. • Discovers contextual segments roughly equivalent to a job and quantifies:  Prevalence  Importance of and satisfaction with achieving the solution performance outcomes  Willingness-to-pay to achieve complete satisfaction. • Can discover process steps and solution performance outcomes for which the job holders believe there are no product or service solutions.
  27. 27. Switch Outcome Driven Innovation (ODI) Qualitative research using primarily in- depth interviews. Works well in an agile environment. Qualitative research using primarily in-depth interviews and small focus groups (2, 3 people) followed by quantitative research using a survey instrument. Lengthier and more expensive mostly due to the quantitative phase. Better for: • Understanding the job and the competitive landscapes. Informs innovation strategy and business model design. • Improving solution adoption. • Jobs that are one-time or infrequent, are focused on emotional outcomes, and/or have multiple important outcomes. Better for: • Understanding the process of achieving a specific outcome and the requirements for a solution. Informs solution design. • Improving the customer experience. • Jobs that occur frequently and/or focus on one major practical outcome.
  28. 28. Once you understand the theory and the research methods, you should: • Mix and match elements of Switch and ODI. • Use any available quantitative and qualitative data source and tool. For example, one may use: o Ethnographic observation to discover the job o Transactional data to quantify job findings. Maximize Insights Adapt the research method to the business problem.
  29. 29. Get Started Study + Practice
  30. 30. Tips: Existing Product Innovation Job Your product helps here. Parent Job For the purpose of these tips, the Parent Job must be a job that could be done on the same platform as the Job.
  31. 31. Tips: Existing Product Innovation Business Objective Study Practice (Research Objective & Target Job Holders) A. Get the Job done better than the competition. Switch 1. Understand the Job and identify the Parent Job Existing customers 2. Understand both the Job and the Parent Job Lost customers B. Get as much as possible of the Parent Job done on the same platform as the Job. Get it done better than the competition. Switch and ODI 1. Understand the Parent Job Lost prospects 2. Understand the process to get the Parent Job done Existing and lost customers; lost prospects Done? You are probably ready to graduate to new product innovation.
  32. 32. Tips: New Product Innovation Are out of scope for this introduction. Are you an entrepreneur / intrapreneur? Do you need to start directly with new product innovation? Get professional JTBD help.
  33. 33. Tips: JTBD for UX Apply to physical and digital products as well as services. Do you have intel that a user interface is not working well or that you need a new user interface? Use JTBD to understand the jobs that the users are trying to get done. In what circumstances do they need the interface? What outcomes are they trying to achieve? Identify the affordances that the interface must provide. What information must be available? What functionality is needed? Set-up realistic user testing. Who are the right users for the test? What test scenarios would best simulate the job? What artifacts are needed to simulate user circumstances? Optimize the layout of the interface using classical usability testing.
  34. 34. References 1. Peter Drucker, Managing for results: economic tasks and risk-taking decisions (Harper & Row, 1964), 94 2. Theodore Levitt, The Marketing Imagination (The Free Press, 1986), 128 3. Thomas Sowell, The Vision of the Anointed: Self-Congratulation as a Basis for Social Policy (Basic Books, 1996), 54 4. Clayton Christensen in Dina Gerdeman, Clayton Christensen: The Theory of Jobs To Be Done (HBS Working Knowledge, October 2016) 5. Clayton Christensen, et al., Competing Against Luck (HarperBusiness, October 2016), 90 6. Clayton Christensen, et al., Competing Against Luck (HarperBusiness, October 2016), 27 7. Clayton Christensen, et al., Competing Against Luck (HarperBusiness, October 2016), 28

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