JOBS TO BE DONE: A SUMMARY

"Nearly everyone in a major corporation has participated in a brainstorming session in which, without knowing the customer’s needs, they were encouraged to generate hundreds of ideas and were told that there is no such thing as a bad idea. You can probably still picture walls of Post-It notes."

by Anthony W. Ulwick

Introduction

Successful innovation and improved business outcomes can be achieved by applying objectivity, targeted strategy, and the Jobs-to-be-Done mindset. Guesswork and lucky ideas are not reliable approaches to innovation.

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Chapter 1

Why do Innovation Projects Fail?

Innovation can be approached in two ways: “Ideas-First” or “Needs-First.” The “Ideas-First” approach involves generating ideas and testing them to see if they meet customer needs. However, this approach has flaws. Firstly, it is unlikely to uncover all customer needs. Secondly, without knowing the needs, it is challenging to filter and evaluate ideas effectively. Lastly, customers cannot always articulate the solutions they want, so relying solely on their input may not lead to successful innovations.

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On the other hand, the “Needs-First” approach is preferable, but it also has limitations. One common challenge is the lack of a shared language to communicate customer needs effectively. Before achieving successful innovation, managers must agree on what constitutes a need and understand the different types of needs customers have.

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To improve innovation practices, it is important to adhere to certain principles.

1. Firstly, avoid relying solely on the flawed “Ideas-First” approach. Instead, prioritize the “Needs-First” approach.
2. Secondly, recognize that innovation should be treated as a scientific process rather than an artistic endeavor.
3. Thirdly, challenge the assumption that capturing a complete set of customer needs is impossible.
4. Lastly, establish a clear definition of what a need is and develop effective methods for capturing and communicating those needs.

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Chapter 2

Jobs-To-Be-Done Needs Framework

To create compelling and innovative products for customers, it is crucial to understand their needs and identify any unfulfilled or unrecognized ones. The key is to provide products that help customers make progress towards meeting those needs.

?Once needs are gathered and categorized, it is important to pinpoint the underserved or unmet needs. This can be achieved by utilizing tools such as the Importance/Satisfaction matrix. Companies aim to uncover the functional jobs that customers are trying to accomplish for two main reasons: to discover new opportunities or markets to target and to redefine their existing market in order to better serve it using the Jobs-to-be-Done Theory.

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In the Jobs-to-be-Done (JTBD) Framework, a functional job possesses three key characteristics:

1. Remains stable over time,
2. Has no geographical limitations
3. Independent of specific solutions

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Here is an example JTBD Statement

[Verb]?[Object of verb]?[Contextual modifier]?[Object of the verb]

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[Chill]?[my perishable food]?[at home]?[for example, for groceries I purchased for later consumption]

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Job Map

To effectively identify and capture needs, the job map is utilized, which helps generate measurable, controllable, actionable, solution-free, and stable desired-outcome statements.?Here is a job map:

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Define->Locate->Prepare->Confirm->Execute->Mointor->Modify->Conclude

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Desired Outcome Statement

Based on the job map, further research is necessary to identify and capture needs in terms of desired-outcome statements. Various types of customer jobs exist, including the core functional job (the desired task or outcome), related jobs (additional needs customers have while accomplishing the core job), emotional and social jobs (how customers want to feel or avoid feeling), consumption chain jobs (supporting the product lifecycle), and financial outcomes (metrics guiding product decisions).

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[Direction of improvement] [Unit of measure] [Object of control] [Contextual clarifier] [Example of object of control]

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[Reduce] [time] [to style my hair] [while getting ready in the morning] [for example drying my hair after a shower]

Chapter 3

The Jobs-to-be-Done Growth Strategy Matrix

Once we have a clear understanding of our customers and their needs, the next step is to identify which of those needs are either underserved or overserved. This knowledge will guide our strategy going forward.

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When evaluating our product in comparison to competitors based on price and performance, it’s not sufficient to be slightly better or cheaper. Such marginal improvements won’t differentiate our product enough to justify customers switching from existing options in the market.

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There are five strategies to address a given situation:

1. Differentiated Strategy – Target underserved customers with an offering that outperforms existing options.
2. Dominant Strategy – Target all customers with an offering that is significantly better and cheaper.
3. Disruptive Strategy – Target new or overserved customers with an offering that provides a more affordable solution.
4. Discrete Strategy – Target customers with unique restrictions by capitalizing on the scarcity of access to a product.
5. Sustaining Strategy – Target existing customers by making incremental improvements in the offering or price.

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It’s important to note that a company may have multiple products and services in a single market, each employing different strategies. Therefore, it’s crucial to examine examples at the product level rather than the company level.

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To determine whether there are underserved or overserved needs in our target customers and segment, we should use prioritized outcome statements.

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A differentiating strategy is effective when entering a new market by initially targeting high-end customers, capturing a share, and then gradually expanding to gain additional market share.

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For a dominant strategy to succeed, our offering must be at least 20% better and 20% cheaper than the alternatives in the market.

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A disruptive strategy works well in situations where customers are overserved, as it allows them to achieve the same result at a lower cost. It can also attract non-customers by reducing the financial barrier to entry.

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A discrete strategy is suitable when a unique situation or restriction justifies a higher price for a product.

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A sustaining strategy helps an incumbent company maintain its market position through small incremental improvements, but it should be avoided for new products.

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Chapter 4

Outcome Driven-Innovation

Understanding the Jobs-to-be-Done theory is not enough; we need a specific, clear, and repeatable practice to put it into action. Outcome-Driven Innovation (ODI) is the process that allows us to apply the Jobs-to-be-Done theory effectively.

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