Jobs to be Done

1. Jobs-to-be-Done Theory: A revolutionary approach to understanding customer needs

Jobs-to-be-Done Theory provides a framework for (i) categorizing, defining, capturing, and organizing all your customer's needs, and (ii) tying customer-defined performance metrics (in the form of desired outcome statements) to the Job-to-be-Done.

Paradigm shift in innovation. Jobs-to-be-Done Theory revolutionizes how companies approach innovation by focusing on the fundamental job customers are trying to accomplish, rather than on products or demographics. This perspective allows companies to:

• Identify all customer needs systematically
• Understand the metrics customers use to measure success
• Develop solutions that address unmet needs more effectively

Stability and universality. The theory posits that jobs remain stable over time and across geographies, providing a reliable foundation for long-term innovation strategies. This stability contrasts with the ever-changing nature of products and technologies, allowing companies to:

• Create enduring value propositions
• Develop globally relevant solutions
• Innovate consistently across product cycles

2. The Jobs-to-be-Done Needs Framework: Categorizing and defining customer needs

While a job describes the overall task the customer is trying to execute, an outcome is a metric the customer uses to measure success and value while executing a job.

Comprehensive needs analysis. The Jobs-to-be-Done Needs Framework provides a structured approach to understanding and categorizing customer needs, encompassing:

• Core functional Job-to-be-Done
• Desired outcomes tied to the core functional job
• Related jobs
• Emotional and social jobs
• Consumption chain jobs
• Buyer's financial desired outcomes

Actionable insights. By breaking down customer needs into these distinct categories, companies can:

• Develop more targeted and effective solutions
• Address both functional and emotional aspects of customer needs
• Improve the entire customer experience, from purchase to disposal

3. Outcome-Driven Innovation (ODI): Putting Jobs Theory into practice

Outcome-Driven Innovation is a strategy and innovation process that enables companies to conceptualize and invent new solutions that help customers get a job done better and/or more cheaply.

Systematic innovation process. ODI transforms Jobs Theory into a practical, step-by-step methodology for innovation, including:

1. Defining the customer
2. Defining the Job-to-be-Done
3. Uncovering customer needs
4. Finding segments of opportunity
5. Defining the value proposition
6. Conducting competitive analysis
7. Formulating innovation strategy
8. Targeting hidden growth opportunities
9. Formulating market strategy
10. Formulating product strategy

Data-driven decision making. By following this process, companies can:

• Reduce guesswork in innovation
• Align product development with customer needs
• Increase the probability of market success

4. Uncovering customer desired outcomes: The key to successful innovation

Desired outcome statements explain precisely how customers measure success and value as they go through each step of the core functional job.

Precise need definition. Desired outcome statements are carefully constructed to capture customer needs in a measurable, actionable format. These statements:

• Follow a specific structure: direction of improvement + performance metric + object of control + contextual clarifier
• Are solution-agnostic, focusing on the underlying need rather than specific product features
• Provide a clear target for innovation efforts

Comprehensive job analysis. By mapping out the entire job process and capturing desired outcomes for each step, companies can:

• Identify previously overlooked opportunities for innovation
• Develop solutions that address the entire job, not just parts of it
• Create more holistic and effective products or services

5. Outcome-Based Segmentation: Discovering hidden market opportunities

The only way to discover segments of customers with unique sets of unmet needs is to segment the market around unmet needs.

Beyond traditional segmentation. Outcome-Based Segmentation moves past demographic or psychographic categorizations to identify groups based on their unmet needs. This approach:

• Reveals hidden segments with unique opportunities
• Provides a more accurate picture of market dynamics
• Enables more targeted and effective innovation strategies

Data-driven market analysis. The process involves:

1. Capturing all customer needs as desired outcome statements
2. Conducting quantitative research to prioritize needs
3. Using factor and cluster analysis to identify segments with similar unmet needs
4. Profiling segments to understand underlying factors causing unmet needs

6. The Jobs-to-be-Done Growth Strategy Matrix: Choosing the right innovation strategy

New products and services win in the marketplace if they help customers get a job done better (faster, more predictably, with higher output) and/or more cheaply.

Strategic innovation framework. The Growth Strategy Matrix guides companies in selecting the most appropriate innovation strategy based on market conditions:

1. Differentiated strategy: Better but more expensive
2. Dominant strategy: Better and cheaper
3. Disruptive strategy: Worse but cheaper
4. Discrete strategy: Worse and more expensive (niche situations)
5. Sustaining strategy: Slightly better or cheaper

Informed strategy selection. By understanding the underserved and overserved segments in their market, companies can:

• Choose the most effective growth strategy
• Align product development with market opportunities
• Increase the likelihood of successful innovation

7. Implementing ODI: Transforming organizations for predictable innovation success

Building an outcome-driven organization is best accomplished in three phases: I: Understand your Customer's Job-to-be-Done, II. Discover Hidden Opportunities in Your Market, III. Use New Customer Insights to Drive Growth

Organizational transformation. Implementing ODI involves:

• Creating a team of internal ODI practitioners
• Establishing an Innovation Center of Excellence
• Applying Jobs Theory and ODI practices to selected markets

Phased implementation approach. The three-phase process allows companies to:

1. Gain a deep understanding of customer jobs and needs
2. Uncover hidden market opportunities through quantitative research
3. Apply insights to drive growth through improved market and product strategies

By following this approach, organizations can systematically transform their innovation processes, leading to more predictable and successful outcomes.

Last updated: July 21, 2024