Jobs-To-Be-Done Theory and Methodology
Seeing innovation through a new lens reveals a new way to create customer value
Original Source
Fundamentals of Jobs-To-Be-Done Theory
As Theodore Levitt said, “people do not want a quarter-inch drill, they want a quarter
inch hole.” It is true. People buy products and services to get jobs done; and while
products come and go, the underlying job-to-be-done does not go away. This notion is
at the heart of jobs-to-be-done theory.
While most companies innovate by trying to improve their existing products (creating a
better quarter-inch drill), the innovation process is dramatically improved by instead
trying to find better ways to create a quarter-inch hole (to get the job done). The
implication of this thinking is profound: stop studying the product and instead study the
job that people are trying to get done. By making the job, rather than the product or the
customer, the unit of analysis, we’ve made it possible for companies to achieve
predictable growth.
Here’s how our jobs-to-be-done methodology works in practice. By focusing on the job-
to-be-done, it becomes possible, for the first time, to know all the customer’s needs and
determine which are unmet. It turns out that when customers are executing a job, they
have a set of metrics in mind that define the successful execution of that job. These
metrics (or desired outcomes) can be captured as actionable customer need statements
that replace the customer inputs companies ordinarily capture and use to create new
products. We have discovered that customers typically use between 50 and 150 distinct
outcome statements to describe the successful execution of any job. These metrics are
uniquely structured statements that describe how customers measure value. They are
the perfect input into a process that is aimed at creating valued products and services.
The ramifications of jobs-to-be-done theory do not stop here.
What Jobs-To-Be-Done Theory Tells Us
Jobs-to-be-done theory tells us much more about customers, strategy, products and
how managers should think about business, growth and innovation. The theory tells
companies to heed the following bits of advice:
Define your markets around the job-to-be-done. While most companies tend to
define a market around a product, technology or a solution, when applying jobs-to-be-
done theory, a market is defined as a job executor and the job that executor is trying to
get done. For example, “parents” (the job executor) trying to “pass life lessons to their
https://strategyn.com/jobs-to-be-done/jobs-to-be-done-theory/
children” (the job to be done) is a market. Defining a market this way opens the door to
a different type of market analysis, as the goal becomes analyzing the job to discover
where parents struggle to get the job done, rather than analyzing the products they use
for that purpose.
Help customers get the entire job done. People do not want to have to cobble
to ...
Jobs-To-Be-Done Theory and Methodology Seeing innovation thr.docx
1. Jobs-To-Be-Done Theory and Methodology
Seeing innovation through a new lens reveals a new way to
create customer value
Original Source
Fundamentals of Jobs-To-Be-Done Theory
As Theodore Levitt said, “people do not want a quarter-inch
drill, they want a quarter
inch hole.” It is true. People buy products and services to get
jobs done; and while
products come and go, the underlying job-to-be-done does not
go away. This notion is
at the heart of jobs-to-be-done theory.
While most companies innovate by trying to improve their
existing products (creating a
better quarter-inch drill), the innovation process is dramatically
improved by instead
trying to find better ways to create a quarter-inch hole (to get
the job done). The
implication of this thinking is profound: stop studying the
product and instead study the
job that people are trying to get done. By making the job, rather
than the product or the
customer, the unit of analysis, we’ve made it possible for
companies to achieve
predictable growth.
Here’s how our jobs-to-be-done methodology works in practice.
By focusing on the job-
2. to-be-done, it becomes possible, for the first time, to know all
the customer’s needs and
determine which are unmet. It turns out that when customers are
executing a job, they
have a set of metrics in mind that define the successful
execution of that job. These
metrics (or desired outcomes) can be captured as actionable
customer need statements
that replace the customer inputs companies ordinarily capture
and use to create new
products. We have discovered that customers typically use
between 50 and 150 distinct
outcome statements to describe the successful execution of any
job. These metrics are
uniquely structured statements that describe how customers
measure value. They are
the perfect input into a process that is aimed at creating valued
products and services.
The ramifications of jobs-to-be-done theory do not stop here.
What Jobs-To-Be-Done Theory Tells Us
Jobs-to-be-done theory tells us much more about customers,
strategy, products and
how managers should think about business, growth and
innovation. The theory tells
companies to heed the following bits of advice:
Define your markets around the job-to-be-done. While most
companies tend to
define a market around a product, technology or a solution,
when applying jobs-to-be-
done theory, a market is defined as a job executor and the job
that executor is trying to
get done. For example, “parents” (the job executor) trying to
3. “pass life lessons to their
https://strategyn.com/jobs-to-be-done/jobs-to-be-done-theory/
children” (the job to be done) is a market. Defining a market
this way opens the door to
a different type of market analysis, as the goal becomes
analyzing the job to discover
where parents struggle to get the job done, rather than analyzing
the products they use
for that purpose.
Help customers get the entire job done. People do not want to
have to cobble
together different products and services to achieve their goals.
They want one product
that helps them get the entire job done. The key to success is
understanding, from the
customer’s perspective, just what the entire job is and making
that job the focal point of
value creation. Keurig and Nespresso products, for example, get
more of the “prepare a
hot beverage” job done than competing solutions such as a
coffee pot, or a tea bag.
Help customers get more jobs done. Products evolve over time
to help people get
more jobs done. Jobs-to-be-done theory tells us that the more
jobs a product can help a
customer get done, the more valuable that product is as a
product platform in that
space. The swiss army knife, for example, helps customers get
dozens of jobs done,
and the smartphone helps customers get thousands of jobs done.
4. Design a business around a job-to-be-done. Rather than
designing a business
around a product that is certain to become obsolete, companies
should design a
business around the job-to-be-done. This way the company will
always be focused on
creating the solutions that will get the job done best. This will
result in longevity, as the
company will be more likely to disrupt itself.
Target those who will pay the most to get the job done best.
When a market is
highly underserved, the fastest way to profits is to first target
the people who will pay the
most to get the job done the best. We use outcome-based market
segmentation
methods to discover if such a segment exists in a given market.
Nest, for example,
targeted underserved customers who were willing to pay 5 times
more for a solution that
would get the job of “achieving personal comfort” done
significantly better. This strategy
is in stark contrast to a low-end disruption strategy where
companies target over-served
customers who want to pay less to get the job done worse.
Focus R&D and M&A efforts on getting a customer job done
better. Companies
invest lots of cash in R&D and M&A efforts, but those
investments rarely pay off. Why?
Because the investments often times are not made to help
customers get a job done
better. Jobs-to-be-done theory tells us that this is the main
reason such investments
should be made.
5. Let jobs-to-be-done theory guide your future. What products
will win in the future?
The products that help customers get the job done better.
Knowing where customers
struggle today to execute the job-to-be-done indicates what a
product has to do in the
future to win in the marketplace. Jobs-to-be-done theory
predicts what products will win
in the future.
These insights have resulted in a revolutionary innovation
process, Outcome-Driven
Innovation. Using this process, companies are far more likely to
launch products and
services that get their customer’s jobs done significantly better.
Fundamentals of Jobs-To-Be-Done TheoryWhat Jobs-To-Be-
Done Theory Tells Us
Test Your Innovation IQ
Holly Green, Contributor
Original Source
Everyone knows that innovation means coming up with the next
great idea in your
industry, right? Actually, there’s a lot more to it than that. Test
your ability to separate
innovation fact from fiction by answering the following
questions true or false:
6. 1. Innovation is the act of coming up with new and creative
ideas.
2. Innovation is a random process.
3. Innovation is the exclusive realm of a few naturally talented
people.
4. The biggest obstacle to innovation is a lack of organizational
resources and
know-how.
5. The most important type of innovation involves bringing new
products and
services to market.
6. Teaching employees to think creatively will guarantee
innovation.
7. The most powerful way to trigger your brain is to simply ask
it a question.
8. Most companies pursue incremental rather than disruptive
innovation.
9. Most companies are not structured to innovate.
10. Listening to your customers is a great way to innovate.
Answers:
1. False. In business, innovation is the act of applying
knowledge, new or old, to the
creation of new processes, products, and services that have
value for at least one of
your stakeholder groups. The key word here is applying.
Generating creative ideas is
certainly part of the process. But in order to produce true
innovation, you have to
actually do something different that has value.
2. False. Innovation is a discipline that can (and should) be
planned, measured, and
7. managed. If left to chance, it won’t happen.
3. False. Everyone has the power to innovate by letting their
brain wander, explore,
connect, and see the world differently. The problem is that
we’re all running so fast that
we fail to make time for the activities that allow our brains to
see patterns and make
connections. Such as pausing and wondering….what if?
4. False. In most organizations, the biggest obstacle to
innovation is what people
already know to be true about their customers, markets, and
business. Whenever you’re
absolutely, positively sure you’re right, any chance at
meaningful innovation goes out
the window.
https://www.forbes.com/sites/work-in-progress/2011/12/06/test-
your-innovation-iq/#3133e7f0395b
5. False. It’s certainly important to bring new products and
services to market. But the
most important form of innovation, and the #1 challenge for
today’s business leaders
may really be reinventing the way we manage ourselves and our
companies.
6. False. New ideas are a dime a dozen. The hard part is turning
those ideas into new
products and services that customers value and are willing to
pay for -- a process that
requires knowledge about what your customers want and need,
coupled with
implementation.
8. 7. True. Ask a question and the brain responds instinctually to
get closure. The key with
innovation is to ask questions that open people to possibilities,
new ways of looking at
the same data, and new interpretations of the same old thing.
8. True. Most companies focus on using internally generated
ideas to produce slightly
better products (incremental innovation). Then they strive to get
those slightly better
products to market as quickly and as cost-effectively as
possible. This approach is
quicker and cheaper than disruptive innovation. But it rarely
generates the results that
lead to sustainable market leadership.
9. True. Most organizations are physically set up with
accounting in one area, marketing
in another, and management off by itself. Employees rarely
interact with other
departments unless they need something to get their jobs done.
And leaders and
departments often withhold information, believing that it puts
them in a position of
power. Innovation requires teamwork, communication and
collaboration, not isolated
silos.
10. Trick question! The answer is “it depends.” Research shows
that customers can be
a good source of ideas for improving existing products and
services -- if you’re looking
to achieve incremental innovation. However, by itself, customer
research is not
sufficient for generating disruptive innovation because it only
9. uncovers expressed, or
known, customer needs. Disruptive innovation solves problems
that customers didn’t
even know they had or were unable to clearly articulate to
themselves or their vendors.
It redefines the market at a very fundamental level or, in many
cases, creates a new
market.
If you got 8 or more correct answers, give yourself a pat on the
back. If you scored
between 4 and 7, I recommend some more research and work on
these critical
leadership skills. If you scored less than 4, wake up and smell
the burnt coffee! Get
some help.
If you’re not constantly looking to improve your products,
services, systems, and
managerial processes, you will fall behind. And once you fall
behind, it can be very
difficult and often impossible to catch up!
Innovation ExerciseStageCustomer FocusedYour
customers…How to innovateYour innovation…1: DefineHow do
customers determine their goals and plan resources.Simplifying
planning.2: LocateHow do customers gather items and
information needed to do the job.Making required inputs easier
to gather and ensuring they’re available when and where
needed.3: PrepareHow do customers set up the environment to
do the job.Making set-up less difficult and creating guides to
ensure proper set-up of the work area.4: ConfirmHow do
customers verify that they’re ready to perform the job.Giving
10. customers information they need to confirm readiness.5:
ExecuteHow do customers carry out the job.Preventing
problems or delays.6: MonitorHow do customers assess whether
the job is being successfully executed.Linking monitoring with
improved execution.7: ModifyHow do customers make
alterations to improve execution.Reducing the need to make
alterations and the number of alterations needed.8:
ConcludeHow do customers finish the job or prepare to repeat
it.Designing products that simplify the process of concluding
the job.
ReferenceThis table is from pages 46 and 47 in your book, On
Innovation, and is provided here as a quick reference.During
this step…Customers…Companies can innovate by…Example:1:
DefineDetermine their goals and plan resources.Simplifying
planning.Weight Watchers streamlines diet planning by offering
a system that doesn’t require calorie counting.2: LocateGather
items and information needed to do the job.Making required
inputs easier to gather and ensuring they’re available when and
where needed.U-Haul provides customers with prepackaged
moving kits containing the number and types of boxes required
for a move.3: PrepareSet up the environment to do the
job.Making set-up less difficult and creating guides to ensure
proper set-up of the work area.Bosch added adjustable levers to
its circular saw to accommodate common bevel angles used by
roofers to cut wood.4: ConfirmVerify that they’re ready to
perform the job.Giving customers information they need to
confirm readiness.Oracle’s ProfitLogic merchandising
optimization software confirms optimal timing and level of a
store’s markdowns for each product.5: ExecuteCarry out the
job.Preventing problems or delays.Kimberly-Clark’s Patient
Warning System automatically circulates heated water through
thermal pads placed on surgery patients to maintain their normal
body temperature during surgery.6: MonitorAssess whether the
job is being successfully executed.Linking monitoring with
improved execution.Nike makes a running shoe containing a
sensor that communicates audio feedback about time, distance,
11. pace, and calories burned to an iPhone or iPod worn by the
runner.7: ModifyMake alterations to improve
execution.Reducing the need to make alterations and the number
of alterations needed.By automatically downloading and
installing updates, Microsoft’s operating systems remove hassle
for computer users. People don’t have to determine which
updates are necessary, find the updates, or ensure the updates
compatible with their operating system.8: ConcludeFinish the
job or prepare to repeat it.Designing products that simplify the
process of concluding the job.3M makes a wound dressing that
stretches and adheres only to itself-not to patients’ skin or
sutures. It thus offers a convenient way for medical personnel to
secure dressing at the conclusion of treatment and then remove
them after a wound has healed.