How can companies ensure that their next innovation truly meets consumer needs and isn't just another market failure? Is it possible to predict success before a product even hits the shelves?
Clayton Christensen, a renowned business consultant and scholar, believes the key is in understanding the motivations behind consumer purchases. In his seminal work, Competing Against Luck, Christensen introduces a revolutionary idea: people don't simply buy products; they "hire" them to fulfill specific jobs. Whether it's seeking beach entertainment with a surfboard or immersing oneself in a fantasy novel, each purchase is driven by a particular job it's intended to accomplish.
This fresh perspective, termed the “jobs-to-be-done theory” by Christensen, serves as the foundation for his book, drawing from his extensive research and teaching experience. The core insight? By grasping the "jobs" that prompt purchases, companies can uncover the blueprint for successful innovation.
In this summary, I'll first highlight the limitations of conventional innovation approaches, which, as Christensen argues, rely excessively on raw quantitative data. Then, I'll explore how to leverage the "jobs-to-be-done" framework for innovation, offering guidance on pinpointing consumer jobs and developing products that genuinely cater to them. I will conclude by examining ways organizations can integrate this approach to ensure sustained innovation triumphs.
The Shortcomings of Conventional Innovation Strategies
Christensen argues that numerous companies possess a misguided understanding of innovation. Central to this misconception is the belief that merely gathering the right metrics and collecting vast amounts of data will automatically reveal the formula for successful products or enhancements. Take, for instance, a clothing brand that examines the mobile apps its customers frequent. If they find that, say, 75% of their customers' screen-time is devoted to social media, they might hastily infer a strong desire for social connectivity. As a response, they might embed chatrooms into their shopping app.
However, by heavily investing in complex data analytics for product design and enhancement, these organizations often face disappointing outcomes. Despite pouring resources into research, their products might not strike the right chord with consumers. Those sporadic hit products? They could very well be less a result of strategic planning and more a product of sheer chance.
Christensen pinpoints this inconsistency to two primary flaws in the overreliance on quantitative data for driving meaningful innovation.
Problem #1: The Illusion of Objectivity
Data often provides a deceptive sense of objectivity when it comes to innovation. While numbers and metrics appear indisputably objective and lend credibility to ideas, Christensen warns against over-relying on them. The processes of data collection and metric measurement are shaped by a myriad of subjective decisions, each capable of dramatically impacting the final results.
Consider a video streaming service like Hulu, debating the addition of a new reality TV series. Surveying current users might seem like an objective method to assess demand. Yet, even minor variations in the survey design can produce vastly different outcomes. A survey paired with a captivating video trailer might yield a 75% interest rate, whereas one presented with just a text description might register a mere 45% enthusiasm. In both instances, the figures appear objective, but they're inherently influenced by the data collection methods used.
Problem #2: The Illusion of Success
Data, at times, projects a misleading semblance of success. Christensen stresses the human tendency to see what we want in numbers, causing teams to misconstrue ambiguous data as confirmation of their innovative vision. Such misinterpretations can spur massive investments in projects doomed from the start.
Take Baskin-Robbins, for example, venturing into an unconventional product: a burrito-wrapped ice cream. Preliminary feedback might be overwhelmingly positive, indicating a potential trend in fusion desserts. But these promising data points could mask the actual reception of the product. While numbers might suggest a rise in fusion cuisine, they don't inherently signify the market's acceptance of an ice cream burrito that could easily become a soggy mess.
With the issues of traditional innovation strategies outlined, I'll transition to Christensen's alternative approach: centering on the "jobs-to-be-done" theory as the cornerstone for innovation. We'll start by understanding what these 'jobs' truly represent in consumer behavior. Then, we'll delve into methods to identify these consumer jobs and design products that address them directly. To conclude, I'll detail Christensen's recommendations for shaping an organization that consistently aligns with these consumer demands.
Guiding Innovation with the Jobs-to-be-Done Framework
Christensen argues that the key to meaningful innovation isn't merely in data collection but in gaining a profound understanding of the "jobs" consumers "hire" products and services to accomplish. Let's delve deeper into this central tenet of Christensen's innovation philosophy.
We've already touched on Christensen's conceptualization of a "job" as a distinct objective or need that a consumer aims to satisfy through a specific product or service. Consider someone purchasing a book with the "job" of "seeking a brief respite from daily routines during a vacation." Viewing decisions through the prism of "jobs" offers a holistic understanding of purchase motivations, transcending the limited insights that sheer quantitative data might provide.
Christensen emphasizes the manifold advantages of pinpointing consumer jobs. With a clearly defined "job", innovators can more intuitively devise solutions to better address it. Moreover, the potential success of a novel product in the market can be gauged by assessing how effectively it fulfills that specific "job".
To crystallize our understanding of Christensen's "job" concept, let's delve into its three core attributes.
Characteristic #1: Jobs are Rooted in Specific Situations
Christensen posits that jobs are intrinsically tied to particular circumstances or situations. To truly innovate, it's essential to discern these situational intricacies. The same product can serve diverse "jobs" depending on the context. Crafting products tailored to these specific situations ensures businesses meet customers' precise requirements across varied scenarios.
Consider fishing rods. One might be bought for competing in professional tournaments, while another is intended as a child's gift. Accordingly, a product tailored for the latter might focus on safety and user-friendliness.
This context-specificity elevates "jobs" above general needs. The business realm frequently centers on consumer "needs," but these can be too broad, lacking the granular insights needed to truly understand purchase motivations or foster impactful innovation.
For instance, envision a “wall-plugged, heated sweater” devised for warmth. While it addresses the basic need for warmth, it's unclear where this product might be more beneficial than existing solutions like heated blankets. Such broad-brush innovations, not anchored in precise situational jobs, risk faltering in the market.
Characteristic #2: Jobs Navigate the Spectrum of Specificity
Christensen underscores that jobs artfully navigate between the extremes of specificity and generality. They should be detailed enough to inspire innovation but broad enough to prevent stifling it. Over-precise jobs might prematurely dictate solutions, curtailing creativity. In contrast, overly general ones miss the necessary context that shapes a product that genuinely connects with consumers. The ideal "job" description stimulates diverse innovative possibilities.
Returning to our fishing rod example: "reeling in large freshwater fish" might be too narrow, constricting design options mainly to a heavy-duty rod. On the other hand, "helping me relax" is too general, offering little direction for product innovation. While an aromatic "relaxing fishing rod" could be seen as innovative, it lacks a discernible context to motivate a purchase.
A more fitting job description might be “enabling outdoor enthusiasts to enjoy their leisure time.” This phrasing invites the question: How can a fishing rod elevate the outdoor experience? An innovation like a biodegradable fishing line could emerge, aligning with environmental consciousness and outdoor enjoyment.
Characteristic #3: Jobs Span Functional and Emotional Realms
Christensen emphasizes that jobs have a dual nature, intertwining both functional and emotional facets. While many products meet tangible, practical needs, the emotional drives and repercussions tied to purchasing decisions cannot be underestimated. Often, how a product makes a consumer feel or how it's perceived by others can be as vital as its practical function. By zeroing in only on a product's tangible attributes, innovators risk overlooking its emotional implications, which can significantly influence consumer reception.
Consider a hypothetical ultra-warm winter coat. If it's so bulky and glaringly designed that wearers feel awkward, its excellent warmth provision might be negated by the emotional discomfort it triggers. Acknowledging and integrating such emotional factors during the innovation process can be crucial for achieving market resonance.
Identifying Customers’ Jobs to be Done
Now that we’ve defined what a customer's job is, let’s explore how to leverage this concept to foster business innovations. The first step in innovation is to discern the job your product addresses. Here are two strategies Christensen recommends to do this.
Strategy #1: Interview Customers
One of the most dependable methods to pinpoint jobs is by engaging with customers, according to Christensen. As jobs are inherently tied to specific situations, obtaining a comprehensive snapshot of the customer’s circumstances is pivotal. Direct conversations reveal this nuanced understanding.
To grasp a job associated with a purchase in depth, the context of a customer’s life surrounding that purchase is essential. Every purchase a customer makes is influenced by push factors that drive them toward a product and pull factors that might deter them. Push factors encompass the issues they want to address and the allure of the new product's benefits. Pull factors, on the other hand, include the habitual solutions they rely on and reservations about the new product, such as concerns over wasted money or potential drawbacks.
Christensen advocates for having customers narrate their journey leading to a specific purchase. Through these stories, one can discern both push and pull factors that constitute the job propelling the purchase.
For instance, a customer could narrate an episode of buying a winter coat: Heading to Canada for a camping trip, he considered a warm, puffy jacket but hesitated due to fear of ridicule. Settling for a thinner coat, he braved the intense cold. Such tales spotlight push factors (desire for warmth) and pull factors (fear of mockery).
Equipped with this narrative, one could aim to craft a coat addressing the job: “Provide warmth without compromising on style.”
Strategy #2: Observe the Unmet Jobs Around You
Christensen asserts that daily life is filled with jobs that remain inadequately addressed. Persistent challenges present ripe avenues for innovation; hence, it's essential to remain observant. When you, or someone nearby, grapple with a persistent issue or fail to tackle a job despite repeated attempts, it signals a potential market gap.
A key signal to watch for, as emphasized by Christensen, is when individuals craft makeshift solutions to their problems. Such DIY efforts often indicate the absence of a product tailored for that specific job, representing an untapped market opportunity. For instance, spotting someone using blankets to shield windows from sunlight could inspire the creation of easy-to-affix window blinds.
Additionally, be alert to unconventional product uses, suggests Christensen. When products are employed for jobs they weren’t initially designed for, it often hints at a latent demand. For instance, if you notice someone wearing sunglasses to filter blue light during computer use, there might be an opportunity to launch a line of blue-light-blocking sunglasses.
Designing Products to Address Jobs to be Done
Upon identifying a customer's job in detail, the next step is to craft a product that adeptly fulfills that job. Christensen emphasizes that successful innovation pivots on delivering a holistic experience, rather than merely a product. As jobs are inherently situational, innovators should concentrate on enhancing the experience surrounding that particular situation instead of just adding more features. This could mean reimagining the entire process, from purchase to utilization.
Take the example of selling barbeque grills. If the job you've identified is “facilitate memorable outdoor gatherings with delicious food,” your innovation shouldn’t stop at the grill itself. Consider offering complimentary delivery and installation, or even including a curated recipe book. This holistic approach alleviates customer pain points like the challenges of grill assembly or the search for the perfect dish to grill.
How to Center an Organization Around Jobs-to-be-Done
Now that we’ve explored identifying jobs and designing products to address them, let's delve into structuring an organization to prioritize these jobs. Here are three job-oriented strategies organizations can adopt to excel.
Strategy #1: Establish Repeatable Procedures to Address a Job-to-be-Done
Christensen posits that the ultimate aim of organizations should be to address specific jobs efficiently. This goes beyond merely crafting an effective product; it encompasses all actions ensuring the product meets its intended job for the customers.
In achieving this, Christensen emphasizes the importance of delineating clear, repeatable procedures. When consistently applied, these procedures ensure the product addresses the job reliably, even as personnel within the organization change.
Using a video game as an example: if its job is to “provide an enthralling alternate reality,” it's vital to have systematic methods to address issues like bugs that break immersion. Such a procedure could involve: identifying the bug, devising a fix, testing the solution, and then deploying it with player notifications. This structured approach guarantees consistent outcomes.
Christensen further shares insights on harnessing these repeatable procedures to boost organizational success:
Tip #1: Use Repeatable Procedures to Shape Organizational Structure
Christensen emphasizes that organizations should craft their structures around procedures essential for fulfilling a specific job-to-be-done, rather than defaulting to traditional or assumed structures. If there's a mismatch between your organizational design and job-centric procedures, you risk having departments that, while individually productive, counteract each other in practice.
Consider an organization selling stylish winter coats. A research and development team might focus on enhancing warmth, while a design team aims for sleek aesthetics. If these teams operate in silos, their efforts could clash, with one producing bulky designs and the other compromising warmth. Combining them into a unified team addresses the job-to-be-done: creating a coat that's both warm and fashionable.
Tip #2: Recognize That Repeatable Procedures Evolve Over Time
While the power of repeatable procedures lies in consistency, Christensen observes that these procedures might need periodic revision in response to changing contexts. As long as alterations align with the primary job-to-be-done, organizational success remains intact.
Take a movie theater with the job of “providing entertainment for groups seeking out-of-home experiences.” In the age of streaming, to stay relevant, they might evolve their procedures, introducing curated social movie events. By still catering to the primary job, such innovations bolster business success.
Strategy #2: Measure Success with the Right Metrics
Christensen stresses the importance of selecting the right metrics to gauge an organization's success in fulfilling a specific job-to-be-done. While improper metrics can misguide, those closely aligned with a job-to-be-done offer insights into the efficacy of organizational procedures.
Metrics tied directly to the job are often external, reflecting the outcomes customers experience, rather than internal, which focus on organizational efforts. While external metrics provide a direct gauge of how well a job-to-be-done is being addressed, internal metrics might not fully capture the end customer's experience.
Consider a wedding catering service with the job of “ensuring a seamless wedding with delightful food.” Instead of relying on internal metrics such as cooking speed or the rate of plate preparation, more meaningful external metrics might include the proportion of guests served within a specific time or the percentage of dishes delivered while still warm.
Strategy #3: Anchor All Decisions Around the Job-to-be-Done
Having pinpointed the job-to-be-done your organization aims to address, Christensen believes this job should be the compass guiding every decision within the organization. If employees are well-versed with the specific job they're addressing, they can assess options more effectively in complex scenarios. They're no longer anchored to pre-defined roles but can independently discern actions that would best meet the needs of the consumers. This autonomy empowers managers to adopt a more decentralized approach.
Many organizations, however, lean on mission statements that are too broad, failing to provide employees with tangible directives for decision-making.
Take a restaurant, for example. Workers adhering to an ambiguous directive like “the customer is always right” may overlook a group of overly loud diners. But, if the primary job is to “offer patrons a relaxing evening,” staff would address the disruptive customers, understanding that such disruptions hamper their ability to fulfill the job for other guests.
Exercise: Innovate Through the Lens of the Job-to-be-Done
Christensen's "Competing Against Luck" equips readers with a framework to discern why certain products excel. To embed this understanding, analyze your own buying behaviors to unveil ways of innovating around specific jobs-to-be-done.
- Identify Past Purchases: Reflect on a product or service you've recently acquired. Determine the specific job-to-be-done it addresses. The job should strike a balance—distinct enough to steer innovation, yet broad to permit diverse solutions.
E.g., Imagine you recently booked a flight for an overseas family holiday. The airline's job might have been “facilitate a hassle-free journey, ensuring I arrive prepared for quality time with my family.”
- Analyze Buying Influences: Recall your purchasing moment. What were the driving forces or deterrents influencing your decision?
E.g., An attractive fare might have been the allure, but a friend's recent luggage mishap with the same airline could have caused hesitation.
- Innovate Around the Job: For the chosen product or service, brainstorm improvements catering to the job-to-be-done. Delve into both tangible aspects and emotional dimensions tied to the job.
E.g., To reassure travelers', the airline could highlight their impressive baggage handling track record. This counters the innate unease travelers feel entrusting their belongings to others.