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What Is Jobs-To-Be-Done?

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Do you want to understand what causes people to purchase, adopt and re-purchase products and services? Do you want to increase the success rate of your innovation efforts? This presentation gives you an introduction to Jobs-To-Be-Done—a theory of the market that seeks to answer these questions and more.

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What Is Jobs-To-Be-Done?

  1. 1. What Is Jobs-To-Be-Done? Andrei Radulescu @JobsTBD linkedin.com/in/radulescuandrei #innovation #marketresearch #JTBD
  2. 2. 2 The Challenge of Innovating Successfully The Core Theory of Jobs-To-Be-Done Case Study: Transportation Solution Innovating with Jobs-To-Be-Done JTBD: An Evolving Theory 1 2 3 4 5
  3. 3. 3 The Challenge of Innovating Successfully
  4. 4. “Any business enterprise has two—and only these two— basic functions: marketing and innovation.” 1 — Peter Drucker – Marketing ≈ – Innovation ≈ 4
  5. 5. Marketing Market Research Value Proposition Delivery (Branding, Product Marketing, Sales, etc.) Value Proposition Creation Innovation Customer Demand Competitive Supply (value propositions) Market Solution Price Value Proposition 5
  6. 6. Marketing Market Research Value Proposition Delivery Value Proposition Creation Innovation The Theoretical Innovation Process 6 1 2 3
  7. 7. Innovation Processes in Practice Research Innovate Deliver Innovate Deliver Learn Learn in the Market | Discover Upfront What do customers demand? How do they assess value? Who is the competition? 7 Theoretical (algorithmic) Empirical (trial & error)
  8. 8. Innovation: We Do It the Hard Way! Lean startup and agile are not solutions. They are patches. We can do better. 8 Process Mix Theoretical Process Empirical Process Success Rate
  9. 9. We need a theory of the market to increase innovation success rates. “What causes a customer to purchase and use a particular product or service?” 2 — Clayton Christensen “A theory is a statement of causality.” 3 — Clayton Christensen 9
  10. 10. Microeconomics doesn’t answer Christensen’s question. Classical market research provides only a collection of frameworks and tools. Quantity Price Supply Demand 10
  11. 11. However, a solution has been evolving since early 2000’s: The Theory of Jobs-To-Be-Done “The [Jobs-To-Be-Done] lens allows you to look at the same things everyone else is looking at—but enables you to see differently.” 4 — Clayton Christensen 11
  12. 12. 12 The Core Theory of Jobs-To-Be-Done The Causality Principle—Circumstances, Progress and Job The Process Principle The Job Hierarchy
  13. 13. “Customers purchase and use … products and services to satisfy jobs that arise in their lives.” 5 — Clayton Christensen “People don't want quarter-inch drills. They want quarter-inch holes.” 6 — Theodore Levitt The Causality Principle 13
  14. 14. 14 The Causality Principle is the foundation of Jobs-To-Be-Done. To understand it, we need to understand what a job is. In the next slides, I will build up to the definition of a job and beyond. Theory I will also use my typical weekday morning to illustrate the theory. It’s about 7AM and I just finished breakfast. An additional illustration of the theory, using a game of chess, is in the appendix. Illustration
  15. 15. Definition: Circumstances “Circumstances: the existing conditions or state of affairs surrounding and affecting an agent.” 7 — Dictionary.com 15
  16. 16. 16 Circumstances It’s about 7AM. ---------------------------------------------- I’m at home in a suburban area. I’m expected to be in the office around 9AM. The office is about 20 miles away. I’m in my pajamas. ---------------------------------------------- My daughter is at home. Her school starts at 8:30am. The school doesn’t provide bus transportation but it is located close to my normal route to work. My daughter is in her pajamas, as well. Her hair is unkempt because, unlike me, she has plenty of it. ---------------------------------------------- I love my work. I care about the education of my daughter. ---------------------------------------------- I own clothes that can be worn at work. I own a personal car that is ready to go. I own a navigation system with real-time traffic information.
  17. 17. People always desire to make progress — to change their circumstances for the better. The Progress Principle We define ‘progress’ as a change for the better in one or more elements of a person’s circumstances. 17 Definition: Progress
  18. 18. 18 My Desired Progress Take my daughter to school. Minimize the likelihood of getting to my daughter’s school before 8:15am or after 8:30am. Get to the office. Minimize the likelihood of getting to the office after 9:15am. Minimize the time to get to the office. The pictures illustrate the desired changes in circumstances.
  19. 19. “We define a 'job' as the progress that a person is trying to make in a particular circumstance.” 2 — Clayton Christensen Definition: Job “Is trying to make” should be understood as “desires” and not as “is struggling to make”. 5 19
  20. 20. 20 My Job (A Job-To-Be-Done) All my desired progress in my circumstances. The job defies a concise and meaningful label*. Nonetheless, it is as real as it gets. Many parents at my daughter’s school have the same job-to-be-done. * We could label it “commute in the morning” as long as we agree that this is just a label—i.e. we don’t ascribe any meaning to it.
  21. 21. “A job is always a process to make progress, it’s rarely a discrete event.” 8 — Clayton Christensen The Process Principle A step in the process of making progress is a job-like construct. Observation: The Pseudo-Job 21
  22. 22. 22 My First Step (A Step in the Process of Making Progress — A Pseudo-Job) Desired change in circumstances: Change my clothing from pajamas to work attire. Desired progress: Change into work attire. Minimize the likelihood of not having clean work attire that includes matching garments suitable for the weather. The pseudo-job: some desired progress in my circumstances. Let’s label it “change clothing.” * * This obviously incomplete name makes it clear that it is just a label.
  23. 23. 23 The Process of Making Progress Step Change Clothing Validate Child Is Prepared* DesiredChange inCircumstances Take Child to School Get from School to Office Productsand ServicesUsed Business Casual Garments None Personal Car Navigation System * Getting prepared is the child’s job.
  24. 24. Case Study: Transportation Solution If you were a Product Manager with a major car manufacturer… 24
  25. 25. …and you were considering these prototypes for people like me*. * These are the cars that I evaluated for my last purchase. I bought one of them. ** Consumer Reports, Inc., https://www.consumerreports.org/cars, accessed October 2018. Price: $$ Price: $$$$ Gasoline-only powertrain 5 seats MPG: 32/42 Predicted reliability: 3/5** Type A Gasoline + electric powertrain 25 miles electric-only range 4 seats MPG: 54, MPGe: 133 Predicted reliability: 5/5 Type A Gasoline + electric powertrain 53 miles electric-only range 5 seats MPG: 42, MPGe: 106 Predicted reliability: 2/5 Type B Electric-only powertrain 238 miles range 5 seats MPGe: 119 Predicted reliability: 4/5 Type B 25
  26. 26. Demographics Middle-aged man 2 children Lives in the suburbs Psychographics Cares for the environment. Perceives Type A cars as having better quality. Behaviors Previously owned both Type A and B cars. Most recent purchase was a Type A car. Commutes to work. Which prototype would you take to market based on these insights? Classical Marketing Insights (sample) 26
  27. 27. And, which prototype would you take to market based on these insights? Jobs-To-Be-Done Insights (Sample) Circumstances I commute less than 25 miles to work. I can charge a car at work. I have 2 children I live in the suburbs My previous transportation solution was having age-related defects. Progress / Desired Outcomes Transport myself to work. Set an example of green living. Minimize the time spent dealing with malfunctions. Minimize the cost of maintenance. 27
  28. 28. 28 The next slide is the answer to this case study. Are you ready to proceed?
  29. 29. How did you do? Which insights helped? Price: $$ Price: $$$$ Gasoline-only powertrain 5 seats MPG: 32/42 Predicted reliability: 3/5 Honda Civic Gasoline + electric powertrain 25 miles electric-only range 4 seats MPG: 54, MPGe: 133 Predicted reliability: 5/5 Toyota Prius Prime Gasoline + electric powertrain 53 miles electric-only range 5 seats MPG: 42, MPGe: 106 Predicted reliability: 2/5 Chevy Volt Electric-only powertrain 238 miles range 5 seats MPGe: 119 Predicted reliability: 4/5 Chevy Bolt 29
  30. 30. Innovating with Jobs-To-Be-Done 30
  31. 31. The Job-To-Be-Done A Highly Predictive Input 31 Circumstances I commute less than 25 miles to work. I can charge a car at work. I have 2 children […] Progress / Desired Outcomes Transport myself to work. Set an example of green living. […] Describes what causes people to pull solutions into their lives. Demographics, psychographics and behaviors only correlate with a person’s propensity to use a particular solution.
  32. 32. The Job-To-Be-Done A Solution A Frame of Reference for Objective Evaluation 32 Progress Transport myself to work. Set an example of green living. […] Defines how people measure progress independent of a solution. Psychographics and behaviors are not necessarily solution independent.
  33. 33. 33 A Foundation for Successful Innovation Unbiased, Algorithmic Problem-Solving Highly Predictive Input Successful Innovation “With a theory to predict what will cause what to happen, breakthrough innovations do not require getting lucky.” 4 ― Clayton Christensen
  34. 34. JTBD “Without good customer metrics, such as [the desired progress] in the job-to-be-done, companies often prioritize their roadmap based on an imprecise projection of business impact, the charisma of people lobbying for the features they like, and the ‘HiPPO’ (the Highest Paid Person's Opinion).” 9 ― thrv Before After Input: Market Insights Correlates Causes Decision Making Idea Evaluation Subjective Objective Majority Coalesces around the most persuasive Emerges naturally Biased by HiPPO Yes No Output: Successful Innovation Unlikely Likely The Basis of the Innovation Process Empirical Theoretical 34
  35. 35. “… while the success rates of traditional innovation processes average 17 percent, the success rate of [the Jobs-To-Be-Done method] Outcome-Driven Innovation is 86 percent.” 10 — Anthony Ulwick 35
  36. 36. The Job-To-Be-Done A Stable Focal Point for Innovation Solutions (over time) A B C D A B C D 36
  37. 37. Understanding of the Marketing Engineering Design Product MgmtSales CXResearchUX opinion 37 A Basis for a…
  38. 38. An Enabler of Disruptive Innovation Customer Demand Job-To-Be-Done / Competitive Supply Best Value Proposition 38 1 / A 2 / B 3 / XXX 4 / C Blue Ocean Segment based on the job. The Market Identify disruptive innovation opportunities by looking at the market through the lens of the job-to-be-done.
  39. 39. JTB 39 An Evolving Theory
  40. 40. 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 40
  41. 41. “It turns out, by the way, Jobs-To-Be-Done is one of the most difficult things to understand that I've ever come across. It's insanely hard to understand. If you can understand it, and internalize it, and use it well, it's an amazing tool. An amazing tool ... but it's hard to understand.” 11 — Paul Adams, VP of Product at Intercom 41 Are you up for the challenge?
  42. 42. Appendix — Additional Illustration of the Theory 42
  43. 43. Let’s use a chess game to illustrate the Theory of Jobs-To-Be-Done. Garry Kasparov vs Veselin Topalov 12 It’s white’s turn. We’ll look at the game from its perspective. 43
  44. 44. Customers purchase and use solutions to satisfy jobs that arise in their lives. In the world of chess… Players plan and use legal moves to satisfy jobs that arise in their game. The Causality Principle 44
  45. 45. Circumstances White Black King B1 check: no; mate: no King A7 check: no; mate: no Knight A5 Bishop A8 Pawn D5 Rook D8 Queen F4 Rook H8 […] […] The existing conditions or state of affairs surrounding and affecting the player in the game. 45 A B C D E F G H 8 7 6 5 4 3 2 1
  46. 46. A change for the better in one or more elements of the player’s circumstances. The desired change is illustrated on the board. Desired Progress 46
  47. 47. All desired progress in circumstances. Place black in checkmate. The Job (A Job-To-Be-Done) 47
  48. 48. The First Step (A Step in the Process of Making Progress) Options for changing the circumstances: 1. Place king in check … and risk losing rook 2. Capture black’s pawn … and sacrifice rook 3. […] Best option = Desired progress: #2. 1 2 48
  49. 49. Some desired progress in circumstances. Capture black’s pawn. The First Step (A Pseudo-Job) 49
  50. 50. The Process of Making Progress Step 1 Step 2 Changes in circumstances: White Rook D1 — D4 Black Pawn D4: captured Black Pawn C5 — D4 White Rook D4: captured White Rook E1 — E7 Black King A7 check: yes; mate: no Black King A7 — B6 check: no; mate: no 50
  51. 51. References 51
  52. 52. 1. Peter F. Drucker, The Practice of Management (New York, NY: HarperBusiness, 1993), p. 37. 2. Clayton Christensen, et al., Competing Against Luck (New York, NY: HarperBusiness, 2016), p. 27. 3. Clayton Christensen, Clayton Christensen: The Theory of Jobs To Be Done, interview by Dina Gerdeman, HBS Working Knowledge, October 3, 2016, https://hbswk.hbs.edu/item/clay-christensen- the-theory-of-jobs-to-be-done 4. Clayton Christensen, et al., Competing Against Luck (New York, NY: HarperBusiness, 2016), p. 90. 5. Clayton Christensen, et al., Competing Against Luck (New York, NY: HarperBusiness, 2016), p. 43. 6. Theodore Levitt, The Marketing Imagination (New Yourk, NY: The Free Press, 1986), p. 128. 7. Dictionary.com LLC, https://www.dictionary.com/browse/circumstances, accessed October 2018. 8. Clayton Christensen, et al., Competing Against Luck (New York, NY: HarperBusiness, 2016), p. 28. 9. thrv LLC, “Product Roadmap Prioritization,” https://www.thrv.com/how-to-do-jtbd/product-roadmap- prioritization/, accessed October 2018. 52
  53. 53. 10. Anthony W. Ulwick, Jobs To Be Done: Theory to Practice (IDEA BITE PRESS, 2016), p. 21. 11. Clearleft, “The End of Navel Gazing: Paul Adams, UX London 2018,” published June 15, 2018, https://vimeo.com/275265188, accessed October 2018, 32:35–32:51 12. Chessgames Services LLC, “Garry Kasparov vs Veselin Topalov,” http://www.chessgames.com/perl/ chessgame?gid=1011478, accessed September 2018. 53

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