Jobs Theory

Marketing to Customer Needs and What Cicret Can Learn from Salesforce

If you haven’t already, take a look at the Cicret Bracelet video. In just over two years, it has over 25 million views on YouTube. It’s a water-resistant bracelet that projects your smartphone’s screen onto your arm. Advertised as a “tablet for your skin,” the not yet released Cicret Bracelet is clearly garnering attention.

But will people buy a Cicret once it’s launched? In other words, will sales grow as fast as their YouTube views?

In order to answer such questions at thrv, we use Jobs-to-be-Done, a product innovation theory popularized by Clay Christensen of Harvard Business School. The key idea is, “Your customers aren’t buying your product, they are hiring it to get a job done.”

The question that leads to understanding Cicret’s potential is, “What job would you hire the Cicret Bracelet to do?”

According to the product video, the answer is interface with your smartphone.

Purchases occur when people struggle with getting a job done. Does anyone struggle enough with interfacing with their smartphone to buy a new product? In other words, are there unmet needs in this job?

Cicret’s product video opens with someone using the Bracelet in the bath tub. This speaks directly to the unmet need on which Cicret should focus its marketing message in order to realize high-growth sales: reduce the likelihood that the conditions of your environment prevent you from using your smartphone.

In order to sustain its growth, Cicret will need to take a lesson from Salesforce and expand beyond satisfying needs in a consumption job to getting their customers’ functional jobs done better.

Wait! What are consumption jobs and functional jobs?
Consumption jobs are the tasks required to use a product.

For instance, to “consume” a smartphone, you have to:

  • Purchase it
  • Set it up
  • Learn to use it
  • Interface with it
  • Maintain it

These are all “consumption jobs.” They are important, and companies have seen rapid growth by making progress against them. However, consuming a product is always in service to some larger goal a.k.a. “a functional job.”

Functional jobs are the key goals that a person needs to accomplish in their personal or professional lives. Examples are:

  • Acquire customers
  • Reach a destination on time
  • Sell a used car
  • Curate music
  • Enable secure data use
  • Restore artery blood flow

Markets exist because people need to execute functional jobs.

Even though Cicret will eventually want to focus on helping its customers achieve functional jobs, the company can get fast initial growth by serving an unmet need in the consumption job. Cicret can then use their momentum and resources to find new ways to satisfy customer needs in the functional job better than the existing solutions.

Salesforce is a great example of a company that went to market with a focus on serving needs in a consumption job. As the first cloud CRM, it didn’t require an on-premise installation. Salesforce got the “install” consumption job done far better than its competitors.

On-premise software installations were slow and expensive. To “install” Salesforce, its customers just had to create an account on a web site. The Salesforce “installation” took minutes, blazingly fast in comparison to the days or weeks it took to install their competitors’ software.

Salesforce made this advantage a central part of their marketing, calling for “the end of software” and making “no software” a key part of their logo.

In the process, Salesforce enjoyed hockey stick growth and invested the proceeds in getting the functional jobs (“acquire customers” and “retain customers”) done better than their competitors by adding key functionality through product development and acquisitions.

Cicret can follow the Salesforce playbook by focusing its launch message on the needs in the “interface” consumption job, rather than its novel product features (“tablet for your skin“). If it works, they can follow-up on their early success by investing in satisfying unmet needs in the functional jobs.

How does knowing the job and needs help Cicret with marketing?
Philip Kotler, a marketing expert at Northwestern University’s Kellogg School of Management says, “Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit.”

This advice is really helpful if we understand what a customer need is and have agreement across the organization.

What is a customer need? Do your colleagues at your company agree on your customers’ needs?

Jobs-to-be-Done defines a need as “a metric customers use to judge how quickly and accurately they can execute a job.” We structure each need with a direction, metric, and goal. To identify them, we interview people who are trying to execute the job, asking, “What’s difficult, frustrating and time-consuming about executing the job?” This definition, structure, and method for identifying needs gives teams an unambiguous, measurable problem statement around which everyone can align.

What need does Cicret serve?
We can articulate the key need the Cicret Bracelet solves as:

“Reduce the likelihood that the conditions of your environment prevent you from using your phone.”

This is a need in the consumption job “interface with a smartphone,” and the Cicret Bracelet does it better than any other product so far.

The bath tub shot at the beginning of Cicret’s video positions their product as serving this need. If the marketing continues in this vein, it could achieve high-growth at launch.

How does the Cicret reduce the likelihood that the conditions of your environment prevent you from using the hardware? Consider these situations:

  • You’re playing basketball and the phone is next to your gym bag. You’re waiting on an important email, but instead of running over to your bag to check your phone, you can bring the screen up on your arm during downtime on the court.
  • Your cycling to an unfamiliar destination, which means you need the help of a navigation app. It’s inconvenient and unsafe to pull out your phone, but the Cicret Bracelet allows you to glance down at your arm each time you need to check directions.
  • You’ve just arrived at a concert. You’re looking for a friend, but it’s crowded and you don’t want to drop your phone on the ground when there’s a human stampede around you. Simply text your friend right on your arm with the Cicret bracelet.
  • You’re eating chicken wings, and your hands are covered in sauce. Use the Cicret rather than getting your phone greasy.

All of these images can deliver the message of how Cicret satisfies a customer need.

How does Cicret beat the competition?
In tackling this unmet need Cicret goes head-to-head with smartwatches, which also reduce the likelihood that the conditions of your environment prevent you from using your phone. Smartwatches have been struggling to sustain growth as most have failed to move beyond the novelty phase.

Cicret’s marketing can speak to how its larger display and waterproof design serve needs in the job better than a smartwatch. Meeting a need better than your competition drives growth.

Cicret has an opportunity to outpace smartwatches by demonstrating how interfacing with your smartphone is easier with a Bracelet than it is with a smartwatch.

Meanwhile, Cicret will need to keep their attention on Garmin and Apple as they develop fitness trackers and health apps that depend on smartwatches. This work leads the way to smartwatches getting functional jobs done. If Cicret fails to get functional jobs done better, instead of following Salesforce’s path, they will fall far behind the competition.

Marketing to an unmet need in a consumption job can resonate with customers and help companies get off to a great start. It is then critical to invest in the functional job to have a long-lasting business.

How to Respond When Google Enters Your Market

In 2011, IBM found that drivers in cities around the world spend an average of 20 minutes finding a parking spot. Such studies highlight the need for more efficient parking.

Entrepreneurs and companies have been taking steps to solve the parking problem for some time now. There are many parking apps out there, yet no clear winner. It’s still extraordinarily difficult to park in major cities. Drivers are frustrated. Any company that can make it fast and easy to find a parking spot is likely to grow very fast.

So, it’s no surprise that the world’s second-largest company by market cap, Alphabet (aka Google), has joined the game. Google has introduced a parking difficulty function to Google Maps, allowing drivers to see if parking availability in a specific area is limited, medium, or easy.

The parking difficulty icon is certainly a cool function on its own, but it’s part of a much larger goal. To understand this larger goal, let’s consider the parking difficulty function through the lens of the Jobs-to-be-Done Theory, which was popularized by Clay Christensen of Harvard Business School. Christensen says, “customers aren’t buying your product, they are hiring it to get a job done.”

What job would someone hire the parking icon to get done? Well, it helps drivers park a vehicle. But, why does anyone need to “park a vehicle?” Unless you’re a valet or you live in a city with street cleaners requiring alternate side parking rules, you don’t wake up in the morning thinking, “Gee, I have to park my car today!” The reason you park a vehicle is so you can go to your destination. So “park a vehicle” is a job step in this larger job: reach a destination on time.

With Google now making moves to address problems with parking, what can car-parking apps like SpotHero and Luxe do to stay successful? After all, if Google gets this job step done along with many of the other steps in the job, it won’t be long before people stop using SpotHero and Luxe for parking because Google is getting the whole job done for them.

Jobs Theory helps us see options for services like SpotHero and Luxe to stay alive.

Know The Competitive Landscape
Using Jobs Theory, we can define the market based on the customer’s job-to-be-done, which is “reach a destination on time.” Reaching a destination on time is a functional job, meaning that it is a key goal or task that people need to accomplish in their personal or professional lives. The market for the job of reaching a destination on time exists because many people need to execute this functional job frequently. The company that gets this job done better for customers will win the market.

We also know that “park the vehicle” is just one of the job steps in the job of getting to a destination on time. At thrv, we’ve identified 16 total steps in for the job of drivers reaching a destination on time:

Companies like SpotHero and Luxe complete the job step of parking the vehicle for the customer, but remember that customers must get the whole job done (reach the destination on time). This means companies fulfilling the job step of parking the vehicle aren’t just in competition with each other, but also with any service that gets any other steps in the job done, which means parking apps have more to worry about than each other.

Obviously, this broadens the competitive landscape. It’s crucial for companies like SpotHero and Luxe to see and address this risk. Because bigger companies that are fulfilling other job steps may come in and start fulfilling their job step as well (i.e. Google), which could put them out of business.

There are many other big companies doing other job steps. For instance, Uber helps get the following steps done:

Even Tesla’s self-driving cars are competition for parking apps. Not only do these driverless cars handle steps like setting the route and planning the stops, they also self-park! If driverless car makers also figure out how to get autonomous vehicles to find open spots, no one will need to use other apps.

How Google Maps Extended Their Lead
The overall leader in the market of reaching a destination on time is Google, with Uber and Tesla making strides. Any one of these tech giants, and others like Apple and Lyft, present a threat to parking apps.

With Maps, one of the world’s most used apps, Google is already tackling other steps in the job of reaching a destination on time, such as:

 

Now that Maps serves needs within the parking job step, like reducing the time it takes to find a parking spot close to the final destination, the tech giant has extended its lead. Also, in addition to Maps, you also have things like Google Now and self-driving cars. All of these are working together to help Google do more job steps for reaching a destination on time.

For example, the Google Search App (formerly Google Now) addresses needs in these job steps:

And Waymo, Google’s self-driving car, eliminates at least these three steps:

Considering everything Google is doing to complete the job of a reaching a destination on time, it’s clear the company has a lead. The launch of its parking difficulty icon puts them even further ahead of competitors. No other solution completes the job better than Google’s overall ecosystem.

Ask The Right Questions
There are a host of parking apps in the market, and some do complete this job step quite well. For instance, BestParking helps drivers park a vehicle quickly by locating the most convenient garages, and Parker helps drivers find paid parking and navigate street parking rules.

But while parking apps may do their job step well, they need to be aware that giants like Google are competitive threats, as they are already completing many of the steps for getting to a destination on time.

This should be concerning for parking app developers. If drivers can set the route, plan stops, assess if the destination can be reached on time, and find a parking spot all within one app (Google Maps), why would they open up another app just for parking?

To safeguard against a company like Google taking away your customers, smaller companies need to be asking themselves the right questions as they build their solutions. These include:

Are you working on a job step that much bigger companies will target soon because they’re already fulfilling other steps in the job?

If so, what does the larger company fail to do well?

Answering the first question involves employing JTBD Theory to see all the jobs steps within a job. Again, parking is one step to completing the job of reaching a destination on time.

Once you know about the potential competitive threat to your job step, you can make plans to protect yourself. This necessitates first improving upon the existing job step you complete, and then attempting to fulfill other jobs steps (especially those competitors don’t do well).

Improve and Expand on the Existing Job Step
The first solution parking apps have is to improve on what they already help customers do: Park the vehicle. If they are able to do this ten times better than Google, then users most likely won’t abandon the app.

The key to doing this lies in recognizing and solving customer needs. If you don’t define and identify these customer needs, then you are guessing about what they want. A customer need is a metric customers use to judge how quickly and accurately they can execute a job-to-be-done. For reaching a destination on time, there are lots of needs that must be satisfied.

For instance, let’s look at job step 15, “park the vehicle.” For this step, we’ve identified 11 needs. Satisfying more needs for this parking job step will help parking apps grow profits with less risk. These needs are:

If a parking app can satisfy most or all those needs efficiently, they will be able to protect themselves from being overrun by a big company that comes in to do the job step. To do this, parking apps should first identify where competitors’ weaknesses in the job step are (i.e. what needs do they fail to satisfy). Then, they should see if solving these unmet needs carries enough opportunity.

For example, Google Parking does reduce the time it takes to find a parking place close to the final destination, but it doesn’t reduce the likelihood of parking in a location where the vehicle gets damaged. Solving this unmet need actually has lots of opportunity, as customers report low satisfaction for this need but rate it as highly important. So, a feature that guides users to parking spots where it is less likely to get the car dinged or dented could help apps stay ahead of Google in the parking job step.

Solving more needs of the parking job step quickly and accurately could allow you to have sustained success. It could also set you up for acquisition by a big company. For example, Waze served the need of “reduce the time it takes to determine if an alternate route should be taken to save time due to unexpected travel conditions” within the job step “reset the route as needed” so well that Google decided to purchase the map app for $1.2 billion in 2013.

Still, even if you do that one job step substantially better than the competition, it might not be enough. After all, customers will still have to hire other solutions to get the job done. That means you have to work on getting more steps in the job done.

Get More Job Steps Done
Limited time and resources may make it hard to compete with Google overall when it comes to reaching a destination on time, but keep in mind your options. After improving upon the parking job step, you have two of them, which are:

  1. Do more job steps. Waze, by crowdsourcing construction and traffic, is able to help drivers determine how much time to allow for atypical travel conditions, in addition to setting the route (note the company accomplished this before Google acquired it).
  2. Use existing assets to tackle other jobs. While working on parking, a company may have developed other technology or operational assets that can get steps in other jobs done. For example, Uber is using its assets to tackle the job “get something to eat” with UberEats. This job is adjacent to their primary focus.

It can be extremely daunting when a large company puts you in their sights. But, once you understand all of the unmet needs in all of the job steps of your job or find adjacent jobs you can tackle, you will have opportunities to stay alive.

Final Advice
Doing just one job step that in a larger job may not be sustainable. Your competition will likely threaten you from many angles–the other job steps in the job. But, remember there are three moves you can make to stay ahead:

  1. Look for ways to satisfy more needs in the job step so that you stay far enough ahead of all competition.
  2. Find ways to expand on the job steps you do so that you can get the whole job done faster and more accurately.
  3. Find adjacent jobs to which you can apply your existing assets.

These three steps can help you stay relevant over time, even if a Goliath is coming for you.

8 Signs You Need a Product Development Framework

Process and frameworks can get a bad rap. Many companies are proud of having a light-weight or loose process, considering themselves “agile,” “fluid,” and “intuitive.” They may even say their work is like jazz and they don’t want to restrict their creativity. Most of all, teams fear that process will slow them down.

But, a company can also be dragged down by a lack of clarity: about decision-making, goals, and what’s causing goals to be missed. This condition can cause a downward spiral of guesses, failures, frustration, and a lack of trust that leads to more guessing and so on.

Here are eight signs that your company is on the verge of a downward spiral and tips on how a strong product development framework, such as Jobs-to-be-Done, can rescue you.

Sign 1: Missing Revenue and Profit Growth Goals
When your company is failing to hit its growth goals, be it revenue or profits, it puts strain on every team.

Revenue problems put stress on the sales team first. If only they could sell better, the company will earn more money.

All sales teams should aspire to be well-oiled, high-performance selling machines, but there is little they can do if the product does not satisfy customer needs better than the competition. See Wells Fargo’s recent fraudulent sales scandal as an example of how damaging it can be to put all of the revenue pressure on the sales team.

Sign 2: Disagreement on Customer Needs
To get growth back on track, the product team needs to ensure that their product is satisfying customer needs better than the competition. This raises an important question: What is a customer need?

Your product team may lack an agreed upon definition of a customer need, let alone agree on your customers’ needs.

If this is true, they’ll tend to use proxies to determine what to build:

  • Customer feature requests (“I want a faster horse.”)
  • Sales team feature requests (“I can close this deal if you’ll just build this feature.”)
  • Feature ideas from stakeholders, executives, etc. (“I love this idea. I know if we build it we’ll get growth. I can just feel it.”)
  • New technologies (“Augmented reality is the next big thing. Our customers need it!”)
  • New channels (“Everyone is on Snapchat. Our customers need us there too.”)

The problem with these proxy inputs is that they change frequently and often rapidly, which means the team is attempting to hit a moving target. A framework can provide a stable definition of customer needs.

Sign 3: Road maps Prioritized by Fierce Debate and Negotiation


How many times have you seen someone use their rhetorical prowess and passion to convince the room that a feature should be built?

How often do you hear someone refer to roadmapping as “horse trading?” Are your roadmap meetings exhausting and exasperating, with internal stakeholders jockeying to “win” the meeting by getting “their” features prioritized?

A colleague’s persuasive abilities have no bearing on the extent to which a feature idea will solve your customer’s problems.

Under the stress of such an environment, you may resort to answering easy questions, “Do I like how this feature looks?” or “Will I feel better if I give my colleague her way and get this meeting over with?” rather than the most important question, “Will this roadmap satisfy customer needs better than the competition?”

Sign 4: The HiPPO Rules
The HiPPO is the “Highest Paid Person’s Opinion.” It’s a fast way to decide what should be on the road map, but is it the best path to growth?

If the highest paid person happens to be very close to the problem you’re solving with your product, you might be in luck. When answering the question, “Do I like this?” she may do so from a frame of reference similar to your customer’s.

But, in larger companies, the highest paid person may be far removed from the customer’s problem or perhaps has never experienced it. Her primary activity could be managing people and nowhere in the job description did it say, “Must have experienced our customer’s problem.” If that’s the case, what she likes and doesn’t like could be wildly different from what’s useful to the customer.

Sign 5: Shiny New Object Syndrome Leads to The Disposable Road Map
With technological progress at a rapidly accelerating pace, you can expect exciting new technologies and channels to come on the scene very frequently. What do you do about it?

Do you let the shiny new objects steal your focus and cause you to throw out your road map? Or do you have a clear criteria for whether to adopt new capabilities or discard them as mere distractions?

Maintaining agility with your product road map is a virtue, but it has limits. If you find your road map is ripped up so often that you never finish a feature or you’re constantly releasing half-baked features that never get their planned iteration cycles, you’ve got a problem.

All this zigging and zagging will lead to a product full of elements that “sort of” work, none of which are truly great, and none of which bring value to the customer.

Chasing the shiny new objects and constantly changing the road map are indicators that your team disagrees on what the customer needs are. You’re likely using the proxies mentioned above (sales requests, new tech, etc) to determine what to build and as they change, your road map changes.

Sign 6: Launches Met with Crickets


You know when you put something out there, loud and proud, and all you get in response back is…crickets?

That can happen with a product release as well. Your team puts in a lot of hard work and gets very excited to show it to the world. The launch happens, you celebrate, and then you realize a week later that no one is using the new features in your product..

The obvious answer in this situation is “oh, the users haven’t found the feature yet. Let’s add help text or a flashing message somewhere to point it out to them.” If you do this and three weeks later there is no uptick in usage, you have a bigger problem. Either the new feature isn’t serving a customer need at all or the need it serves is already met.

Sign 7: Feuding Product and Marketing Teams
As a product person, have you ever looked at a marketing campaign and thought, “Why are they promoting that?”

And as a marketing person, have you ever read release notes and thought, “Why would a customer care about this? I guess I’ll just call out the new features.”

Or perhaps you’ve witnessed your product and marketing teams denigrating each other: “I just can’t understand what that team is doing. I don’t think they even know.”

If this sounds like a familiar pattern, you have a communication breakdown between your product and marketing teams that a framework can help solve.

Sign 8: Reinventing The Decision-Making Wheel
Last week you presented a deck with designs your stakeholders loved. Two weeks ago you assessed the impact of a new idea on your team’s KPIs. Three weeks ago the executives were compelled by the user problem and approved your plan.

To prepare for the next defense of your road map, you’ve been meeting individually with various stakeholders, trying to determine what’s on their minds.

If the criteria for decision-making is constantly shifting and needs to be divined from tea leaves, you could really use a framework.


The Solution
A product development framework like Jobs-to-be-Done can prevent the downward spiral of guessing, missing goals, growing frustrations, negotiations, more guessing, etc.

The key idea behind Jobs-to-be-Done, a framework based on the theory of the same namepopularized Clayton Christensen, is that your customers are not actually buying your product, they are hiring it to get a job done. This is important because your customer’s struggle with the job is what causes them to look for a product and make purchase.

In Jobs-to-be-Done, customer needs are a precise articulation of that struggle. Needs are the metrics customers use to judge how well they can execute the job. Since people want to get the job done quickly and accurately, customer needs are written in terms of time and likelihood. For example, drivers who want to reach a destination on time (a job-to-be-done) need to “reduce the time it takes to determine if they should take an alternate route due to traffic conditions” and “reduce the likelihood that recent road modifications are not considered when setting the route.” Those are two customer needs in the job that are stable and the team can target with their road map.

This brings us to a key question: What does it mean to satisfy the need “better” than the competition?

Now that we’ve defined needs as metrics of speed and accuracy, “better” is easy to define and detect. The solution that meets the need faster and more accurately is “better,” i.e. it will deliver more customer satisfaction.

If the product team delivers solutions that meet the needs in the job faster and more accurately than the competition, people will use the product and put growth back on track. Marketing the product becomes easier as the features are designed with the customer benefit in mind at the start, which can be promoted at launch.

With Jobs-to-be-Done, the team gains alignment around satisfying customer needs, which leads to hitting growth goals. This customer-centric approach minimizes internal debate and negotiation because it raises the conversation away from individuals’ goals and their products to how groups work together to resolve a customer’s job faster and more efficiently. It puts the focus on your customer’s goals and assumes that if you deliver against them, everyone in the company will hit their own goals.

Your team will have common goals, common metric-driven means of evaluating proposals, and a common language with which to discuss it, decreasing the conflict and the ferocity of the debate and negotiation in the roadmapping room.

When you adopt Jobs-to-be-Done at your company, decision-making meetings can get pretty boring. The criteria is almost always “does the proposition on the table satisfy the targeted customer need in the job better than the competition?” You may have an interesting conversation about what you can do to have an even better idea, but the criteria remain the same.

If you’ve seen one or more of the above signs at your company, you’re not alone. Many teams have experienced these problems. Fortunately, there is a solution. Find a framework that works for you. And contact us at thrv.

Pitch Like a Startup to Win Budget at Your Big Company

Many people think that only entrepreneurs need to pitch investors and raise money, but the same process is happening every day in big companies. Boards, executives, and stakeholders are trying to determine how to allocate funds just like venture capital firms and angels. As a product manager or department head in an enterprise, you need budget to fund your projects and ideas. Just like an entrepreneur, you need to craft a compelling story that demonstrates your project will generate more money than is put into it.

But what makes a good pitch?

Our Product Pitch Cheat Sheet shows you.

We’ve combined top venture capital firm Sequoia Capital’s Writing a Business Plan–the outline of the story they need to hear to invest–and the Jobs-to-be-Done product development method to generate a clear and concise guide to pitching a product idea.

Sequoia’s outline tells you what to cover, and Jobs-to-be-Done helps you answer the key questions that will give you confidence in your material, such as:

  • How do you know your problem is worth solving?
  • How do you know your solution is good enough?
  • Is your market big enough?

Whether you’re trying to find budget to launch a new product or initiative, get more resources for your team, or confirm for yourself that your project is worth pursuing, Jobs-to-be-Done can quantify the justification you need to win investment.

After the cheat sheet, you’ll find Sequoia’s outline with the JTBD guidance under each point. If you’d like to learn how to do all of this yourself in detail, don’t hesitate to contact us.

 

1. State the Company Purpose
As Clay Christensen says, “your customers aren’t buying your product, they are hiring it to get a job done.” A “job” is an important goal that a person is trying to achieve in their personal or professional life, such as “reach a destination on time,” “acquire a customer,” or “overcome diabetes to achieve optimal health.”

The struggle people feel in attempting to get their job done is what causes them to look for a new solution–a product to hire. We call people who are trying to get a job done “job executors.” If your company gets the job done for the job executors, they will use your product.

A direct and simple way to state your company’s purpose is to say what job you are getting done for which job executor.

Here are a few examples:

Try to make your articulation compelling and, as Sequoia says, “declarative.” The job, the job executors and the key struggle should be very clear.

If you have chosen a job that has a lot of job executors trying to accomplish it frequently and the job is famously difficult to do well, it should be immediately clear that when your company achieves its purpose, it will create enormous value.

Finally, remember that your product is not part of your purpose. For example, if you’re trying to help small businesses acquire customers, your purpose should not be to “build the fastest, easiest-to-use CRM.” Small businesses don’t want lightweight CRMs any more than they wanted advertisements in print directories. What they want is to get a job done, so express your purpose in terms that reflect helping people overcome the stress and anxiety associated with getting a job done.

2. State the Problem
Your customer’s problem is that their job is complex and difficult to execute quickly and accurately. It could even require the use of multiple solutions.

How do you know if the pain is severe enough that people are looking for a new product to relieve it? Jobs-to-be-Done helps you quantify the pain and gives you a benchmark to know if the problem is worth solving.

The key is identifying the unmet needs. In Jobs-to-be-Done, we define customer needs as “the metrics customers use to judge how well the job is going.” The metrics we use are speed and accuracy. If the job is slow and inaccurate, the customer will want a new solution.

You can interview job executors to find out what’s frustrating and time-consuming about executing the job. Then, you can survey a statistically significant sample of job executors to determine which needs are the most important and least satisfied. These are your customers’ unmet needs.

The unmet needs are the precise articulation of the customer’s struggle to get the job done. Since a job is a key goal in a person’s personal or professional life (i.e. they need to execute the job frequently and they derive value from doing it well), the unmet needs are problems worth solving–they have great value.

It’s rare, but there are times when there are no unmet needs in a job. This means you don’t have a problem worth solving. Often this is because you came up with your idea for a solution first and it’s for a job that is over-served (the job is important but perfectly well satisfied in the market). This is a problem that’s not worth attempting to solve, as no one is looking for a new solution.

But once you’ve found a collection of unmet needs, you have the problem you need to start a business. In your pitch you can say, “[job executors] are struggling to [job-to-be-done].” Then, you can state the key unmet need(s) you uncovered in the market and intend to serve with your product.

For example, if you were pitching Waze, here’s how you could state the problem:

In this problem statement, the job executors are “drivers,” the job is “reach a destination on time,” and the unmet need is “reduce the time it takes to determine if you should take an alternate route due to traffic conditions.”

Anyone who drove a car before Waze has felt this problem, which means if you state it well, it should resonate. More importantly, if you have executed Jobs-to-be-Done, you will have data to back up your statement. You will be able to show that this unmet need is worth attempting to solve.

3. Show the Solution
When presenting the solution, Sequoia says to “demonstrate your company’s value proposition to make the customer’s life better.” In other words, how is your solution going to serve the job executors’ unmet needs in the job and how do you know it will do it well enough for customers to switch to your solution from whatever they’re doing today?

Using Jobs-to-be-Done, you can measure the value of your solution. Customer needs are all metrics of speed and accuracy. Consider how long it takes to meet your targeted needs and compare that time to the existing solutions. The closer your product gets to making the job automatic and extremely accurate, the more customer value you are adding.

Instead of talking about the features of your product, frame the discussion of your solution by how quickly and accurately it meets the needs in the job. For example, if the job is overcome diabetes to achieve optimal health and you’re targeting unmet needs around reducing the time it takes to determine costs, benefits and risks of available options for the patient, then demonstrate how quickly your product enables patients to meet these needs.

4. Why now
Sequoia recommends setting up the “historical evolution of your category” and then defining “recent trends that make your solution possible.”

Combining this with Jobs Theory, this becomes “What has changed that enables you to get your customers’ job done better?”

Consider the following examples:

In the examples above, new technologies and changing regulatory environments enabled new and better ways to get the jobs done. If you look further back in history, we see that this has always been true. Think about those people that have solved a job for a large, underserved market at the right time. Some legendary examples include:

  • Karl Benz: The potential of gasoline had just started being explored; people (and things) needed a way to get from point A to point B faster.
  • Frank McNamara (the credit card): Consumer confidence in post-WWII America was rising; people needed to reduce the likelihood that not having cash on hand prevented them from buying what they needed.
  • Jeff Bezos: In 1994, internet usage was growing by 2,300% per month and was an excellent foundation for serving the needs in the job “purchase a product” better than the existing solution of stores and mail order catalogues, which gave birth to Amazon.

During your pitch, be sure to identify recent trends that show why now is the time for your product or service. The people above tackled age-old jobs by capitalizing on technological advancements that made solving those jobs easier and faster.

5. Market size
Don Valentine, Sequoia’s founder, has always stressed the importance of the market: “We have always focused on the market–the size of the market, the dynamics of the market, the nature of the competition–because our objective always was to build big companies.”

When companies flounder, it’s because they try to define the market based on product ideas rather than market needs. Then, they invest too much in the manifestation of their assumptions: their unwanted products. This is a gamble (and almost always a mistake), as it assumes there will be a line of customers waiting to use that product simply because it exists.

Before you take your product to investors, Sequoia says to calculate market size. But how do you do it? You have to carry out research to see how many people need to complete the main or related jobs your product completes. Remember: the job-to-be-done is the market—not the product.

This is why the traditional ways of examining a market are flawed. These include the following:

  • Total Addressable Market (TAM): All units sold in a product category multiplied by the price per unit.
    Served Available Market (SAM): Units sold of a specific product type multiplied by the price per unit.
    Share of Market (SOM): Percentage of customers buying a certain company’s products.

These are product-based ways to calculate market size. Jobs Theory teaches you that the target market is the job executors and a job-to-be-done.

As an example, consider the Microsoft Zune, which was an answer to the iPod. Using traditional ways of analyzing market size, Microsoft measured the iPod market, which, at the time, was in the billions of dollars (e.g. 200 million iPods sold x $150 per unit = $30 billion market). But in 2007, the iPhone and Pandora launched, getting the job of curating music done more effectively, and the the iPod market quickly dipped to $0.

Microsoft made the mistake of defining the market based on the product. The market vanished because it was defined by a product. This left Microsoft trying to grab a market share of what was essentially nothing.

Instead, with Jobs-to-be-Done, the market size should be defined based on the customer’s willingness to pay to get the job done (regardless of the products currently in the market). To size the market into an accurate dollar amount, survey customers in the market to find out how much they are willing to pay to get the job done more accurately, efficiently, and/or conveniently. The resulting number is termed the securable market—the revenue you can generate by enabling customers to get a job done better.

6. Competition
As Sequoia says, it’s “better to identify all the competitors than have the investors discover them afterwards.” How do you capture a comprehensive list that is meaningful? Which products are worth including and how do you analyze them to show that your solution can beat them?

The competition is not just similar products. It is any existing solution–a product, service, or manual process–that the job executors use to get the job done today. This view generates a much broader list and a more comprehensive understanding of what your product needs to beat.

You can show how you will beat them by eschewing the traditional feature-to-feature comparison and instead looking at how well the competition serves the needs in the job. Your customers don’t want more features, they want to get the job done, so showing that your product has more features does not demonstrate that people will adopt it.

Let’s look at the Nest learning thermostat as an example.

A typical list of competition would include other thermostat companies such as Honeywell and Emerson. The first version of the Nest didn’t include all of the features of the Honeywell programmable thermostat and it was far more expensive, so how could you have shown that it would succeed?

First, identify the customer’s job by asking, “What job is the customer hiring this product to get done?” In this case, it’s to “achieve comfort in the home.”

Next look at the needs in the job. One need is “reduce the likelihood of the home being cold when you return to it.” How quickly and accurately does a programmable thermostat serve this need? Programming the thermostat takes minutes. The schedule is rigid, so if you get home early one day and forget to turn the thermostat up, you will be cold. The time it takes is minutes and the accuracy is low. The Nest improved upon this need by controlling the thermostat based on your location. It doesn’t require programming so it meets the need faster. It’s more accurate because it will turn on the heat automatically when you are home.

By showing how much faster and more accurately your product meets the needs in the job, you can show that you will beat the competition.

7. Product
Sequoia recommends you provide a product development roadmap covering functionality, features, architecture, intellectual property, form factor, etc.

Whether your product is far enough along to show a demo or all you have is a road map of your future, be sure to focus this section of your pitch on the unmet needs. It’ll frame your story, giving your feature set meaning and showing why customers would switch to your product.

It’s critical to demonstrate how early versions of your product will serve unmet needs better than the competition. Otherwise, your audience will question why and how you will get early adoption.

In your roadmap, you can show how even though your product only gets a few needs in the job done today, over time it’ll expand to get the whole job done (and potentially expand to adjacent jobs), creating more value for the customer and a competitive moat.

8. Business model
Sequoia’s outline recommends discussing your revenue model, product pricing, average value of a customer, sales and distribution model, and customer pipeline list. Here, you must make clear who is willing to pay (and how much).

The examples of Airbnb and Facebook show how viewing your business through the lens of Jobs Theory can help you construct a sound revenue model.

Airbnb generates revenue from the job executors of the two primary jobs the product set out to serve from day one:

1. Travelers finding lodging

2. Residents providing short-term rentals

Airbnb charges a fee on the transaction because the job executors have a willingness to pay to get these jobs done.

Facebook doesn’t make money off the primary jobs it originally helped its users complete: students getting to know their classmates and staying in touch with friends and family. Instead, the mountains of user data Facebook collects created an asset to get another job done: businesses acquiring customers. The willingness to pay for this second job done is very high.

When conceiving your revenue model, first research the willingness to pay for the primary job your product gets done. If the job executors are not willing to pay for it, consider whether or getting the primary job done creates an asset that can be deployed to getting an adjacent job done where the job executors have a high willingness to pay.

Final Advice
Jobs-to-be-Done not only provides a rigorous foundation for your pitch, but it also provides a framework for you to determine if your idea is worth pursuing or to find a new idea worth pursuing. However, just because you’ve learned the language of Jobs, Job Executors, and Unmet Needs does not mean the audience for your pitch (company stakeholders, your company’s board, potential investors) knows this language. Abstract your story from the theory to drive your points home. No one needs to know what a job or a job executor is to understand that drivers struggle to reach a destination on time. Use the theory to do your homework and then tell your story in plain English.

If you have any questions, get in touch.

7 Steps to Improve Annual Planning with Jobs-to-be-Done

Serious group of businesspeople having problems at work.

It’s the heart of Q4. Product Managers across the land are getting requests for next year’s road map as part of a company-wide “annual planning process.”

Some of you have talked your way out of an annual plan, “Why bother planning for more than a quarter? Every year I’ve been here, we’ve changed everything after 2 months.”

Whether you’re planning for the next quarter or the next year, you’re still on the hook for a plan. The pessimists among us wonder how they can reach an acceptable deliverable with minimal effort. The optimists have hope. Maybe this year we can make a plan that doesn’t get overhauled before we finish the first step.

Why do product road maps change so much?

Because the inputs typically used to make a road map–customer feature requests, sales team requests, stakeholder requests, new technologies–never stop changing.

But, your customer’s job-to-be-done (the goal or task that causes them to use your product) and the needs within the job do not change. You can use them as the basis for annual planning and vastly improve the stability and reliability of your road map.

Here are 7 steps to using the Jobs-to-be-Done product development method to create an annual plan that holds up throughout the year, delivers on the intended results, and satisfies customer needs better than the competition.

Step 1: Prioritize unmet customer needs
Customer Needs are the metrics customers use to judge how well the job gets done. A need is “unmet” if customers think it is important but not satisfied. Using a survey, you can assign importance and satisfaction scores to each customer need.

Here’s an example of a Customer Need:

When creating a mood with music (the job-to-be-done), you need to reduce the likelihood that the criteria for the playlist is too stringent e.g. the songs are too similar or no songs fit the criteria (the Customer Need).

In the job of create a mood with music, there are approximately 100 Needs.

The first step in annual planning is to prioritize the needs by the difference between importance and satisfaction scores–the bigger the difference, the higher the priority. A large difference indicates a large portion of the market is struggling to meet the need.

The result of this prioritization is a ranked list of problems to solve throughout the coming year and strong evidence that solving them will matter a great deal to your users. This list is the cornerstone of your plan.

Step 2: Analyze the competition and generate feature ideas to serve the unmet needs
Now that you have a list of problems (unmet customer needs) your team will tackle, it’s time to fill out your plan with solutions.

Look at how quickly and accurately existing solutions (i.e. the competition) meet your prioritized customer needs.

Remember our example:

When creating a mood with music, you need to reduce the likelihood that the criteria for the playlist is too stringent e.g. the songs are too similar or no songs fit the criteria.

If you’ve ever picked just one band to start a playlist on Pandora, you might find that the criteria is indeed too stringent and all the songs on the list are very similar. The accuracy with which Pandora meets this need is rather low.

This analysis provides the benchmark for your new ideas.

You’re looking to think up features that serve the unmet needs faster and more accurately than the competition. They will lead to people hiring your product to get their job done.

To generate ideas, gather a small, diverse group of colleagues from design, engineering, marketing, etc. Write a prioritized need on the board, and ask, “What can we do to serve this need?”

Compare each suggestion to the benchmark: existing features and the competition. If the idea will not meet the need faster and more accurately, toss it.

Keep a list of the ideas that do meet the need faster and more accurately. They will likely have varying degrees of difficulty, but you’ll deal with that later with cost estimates.

Think back to when Songza (now Google Music) launched playlists that were hand-curated by music experts. This idea served our example need much more accurately than Pandora. It’s an idea that would meet the criteria for “good” in a jobs-to-be-done idea generation session.

Step 3: Estimate new satisfaction scores
For each idea that met the above criteria and got on the list, estimate what the new satisfaction score would be if you surveyed your customers again, after they have been using this new feature. It’s a judgement of how much faster and more accurate the new feature will be.

If the existing solutions take days and your new feature only takes minutes and improves accuracy, you can imagine that satisfaction will increase quite a bit. If your new feature is only 1 second faster and the same level of accuracy, you should estimate a rather small increase in satisfaction.

Step 4: Estimate the cost of each feature
Your goal is to satisfy customer needs profitably so before you can prioritize which solutions to build first, you need a cost estimate. This is the one step that is likely not very different from what you do today. Talk with your builders–designers, engineers, etc.–and estimate the resources and time required to build the feature.

Step 5: Prioritize feature ideas by value
Feature value is a function of two factors:

  1. How many more customers will be satisfied with their ability to meet the need with the new feature
  2. How much the new feature contributes to improving the customer’s struggle to get the whole job done.

The first factor can be estimated using the new satisfaction score assigned in Step 3.

The second factor matters because your customers are not just trying to meet one need, they are trying to get the whole job done. If you’ve done the full research and collected all of the customer needs in the job (usually there are around 100), you’ll be able to see what portion of the job you are improving by meeting one or multiple needs with a given feature.

You can use these two factors to calculate the value of each feature idea. It gets a little complex, so get in touch if you want to know exactly how to do it.

After calculating the value of each feature, stack rank your list of feature ideas, putting those with the highest value and lowest cost at the top.

Step 6: Present to stakeholders
Road map presentations to stakeholders are often the most feared meetings of the year.

Product Managers have spent time with each stakeholder, understanding their goals, and collecting feature ideas from them. They’ve discussed feature requests from customers and salespeople as well as new tech that has come on the scene.

Based on estimated impact upon KPIs and cost estimates, this long list of ideas is prioritized and presented.

The stakeholders look for their ideas and fight for them. Fierce debate ensues. Passionate speeches are given. Horse trades are made.

Hours later, the team emerges from the room, exhausted and demoralized, but the road map is finalized! Everyone is getting something and no one is getting everything.

Those who think they got the raw end of the deal are onto their next mission–destroy that road map on which none of “their” features got prioritized.

Who wants to go through that every year or quarter?

A Jobs-to-be-Done roadmap presentation is very different. Here’s an agenda:

  • Remind the stakeholders of the job your customers are trying to get done.
  • Show the unmet needs, backed by qualitative and quantitative research.
  • Unveil the plan–a set of solutions to your customer’s most important and least satisfied needs.
  • Demonstrate your calculation for how getting more of the job done generates customer value, drives the willingness to pay and usage of the product i.e. meets business goals.
  • When someone offers a new idea that isn’t on the road map, evaluate it–does it meet a high priority need? Does it do it faster and more accurately than our existing ideas? Is the cost lower?

Because you’ve gone through the Jobs-to-be-Done planning process, you have objective criteria for judging ideas, reducing the need for debate and mitigating the risk of building the wrong product. Since the criteria is driven by your customers instead of your colleagues, it’s very difficult to argue against. Is there someone on your team who does not want to satisfy customer needs?

Step 7: Assess new ideas against prioritized needs
Plans fall apart when new information arises that undercuts the premise on which the plan was built. If the premise relies on ever-changing customer feature requests, sales requests, new technology, and stakeholder ideas, it’s easy to see why the plan would also constantly need to change.

When plans are built on stable customer needs, the constant flow of new data does not alter the premise and so the plan does not need to continuously change.

Instead you have a simple way to evaluate each request, each new technology, each new idea:

“Does this meet the prioritized needs better than our existing ideas and for similar or less cost?”

If no, you don’t change the plan at all. If yes, you don’t need to “pivot” or rip up the whole plan. You simply refine your existing plan–solve this list of customer problems–by swapping in a new solution for an old one.


The end of the year can be painful and frustrating if you don’t have a clear planning process that aligns your company and leads to a stable, reliable road map. I hope you find these tips for using Jobs-to-be-Done to be helpful with your annual planning.

Don’t hesitate to reach out with questions so we can help you go into the holiday season with confidence and have a prosperous new year!

[video] thrv CEO on Building High-Growth Products with Jobs-to-be-Done at Product Tank SF

Jay Haynes, thrv’s CEO, gave a talk on Building High-Growth Products with Jobs-to-be-Done at Product Tank SF, the San Francisco Meetup for Mind The Product. Below is the video of the talk.

Watch for the moment when Jay asks, “How many people work on teams where everybody agrees on what a customer need is?” Nobody raises a hand. So, if you’ve ever felt this way, you are not alone. But, as Jay explains in the video, there is a solution for clearly defining customer needs using the job-to-be-done.

A Step-By-Step Guide to Using Clay Christensen’s Competing Against Luck and Jobs Theory to Launch Great Products, Part 2: Answering The Right Question

unmet-needs-whiteboard

This is Part 2 of two-part series explaining thrv’s process for executing Jobs Theory. Part 1 is about customer research you can do to define the right question that will drive your product development. This part is about answering that question.

If you’ve read Part 1 of this series, you know about the first 5 steps to executing Jobs Theory:

  1. Define your customer’s jobs: functional, emotional, and consumption
  2. Identify all of the unmet needs in your customer’s jobs
  3. Find the unmet needs
  4. Segment your customers
  5. Identify competitor weaknesses

This work leads to defining your question:

What can you do to serve your customer’s unmet needs in the job better than the existing solutions?

The next step is to generate great product ideas that answer this question.

Step 6: Generate Ideas
You might have noticed something: in all the steps so far we haven’t had any ideas. The traditional innovation process usually starts with product or solution ideas. An ideas-first process is fundamentally flawed because the goal of innovation is not to generate more ideas, it is to satisfy customer needs better than the existing solutions. Jobs Theory enables you to build a needs-first innovation process.

When I was a product manager at Microsoft in the 1990s, we had a “brainstorming” room where our team would go to spitball new ideas. Anything went. As you probably know, the only rule in brainstorming is “there are no bad ideas.” This was (and is) absurd. There is a nearly infinite supply of bad ideas.

When executing Jobs Theory, you don’t need to “brainstorm” because you have clear criteria to judge product ideas: the unmet customer needs in the job.

When you get your team together to generate ideas, start by writing an unmet need on the whiteboard. Then, ask the room: “What can we do to serve this need?”

It’s still helpful for your team to think out of the box–perhaps your product is a website but a chatbot would serve the need much faster–but now, because you are answering a specific, measurable question, you know whether to keep the idea or move on.

If surgeons were your customers and you wanted to help them “restore artery blood flow,” you’d ask about the unmet need, “Does the idea help surgeons reduce the likelihood of restenosis?”

If drivers were your customer and you wanted to help them “get to a destination on time,” you’d ask “Does the idea help drivers reduce the time it takes to determine if an alternative route should be taken?”

If the ideas don’t satisfy the needs, quickly move onto the next idea. If they do meet the needs, keep them on the list.

Push the team to build on the ideas and achieve step function improvements over the existing solutions. Don’t let them be boxed in by the limitations of your existing product. The sky is the limit. Later, you can plan your roadmap to get there, step-by-step.

Now that you have a list of ideas that serve the unmet customer need, measure how well they do it–how much they improve the probability of achieving the goal as stated in the need.

Stack rank the ideas based on how much more reliably or faster they meet the needs than the existing solutions. If you see an idea that produces a step function improvement–reduces the time from days to hours, minutes to seconds, etc.–you may be sitting on a gold mine.

Jobs theory enables more efficient, precise, and relevant idea generation. Not only can you ensure all the ideas are relevant, but you can see if they are good enough.

Step 7: Price your product.
Pricing typically uses a combination of inputs, including the cost to make the product (or deliver the service), perceived value, and the price of substitute products in the market. Using this last input can be a fatal mistake for both pricing and market sizing.

To know why, you need to understand a pitfall of traditional market sizing: products and technologies come and go.

Traditional market sizing is based on variations of the following equation: the market = product price * the number of units sold. For example, in 2007 the iPod market was huge ($150 * 200 million iPods sold = $30 billion). Microsoft thought this was a big market and launched the Zune, an iPod competitor.

This is what the iPod market looked like at the end of 2011.

screenshot-2016-10-11-14-24-23

The “market” (defined by a product) went away, which means that Microsoft was looking to take a share of virtually nothing. But, of course, the true market, the customer’s job-to-be-done, didn’t go away. The iPod may have gone away, but people didn’t stop executing the job.

Jobs Theory’s definition of a market explains what happened.

There is no such thing as the “iPod” market. Customers don’t want iPods anymore than they want records, cassettes, or CDs. What they want is to get a job done, i.e. create a mood with music.

“Price * units sold” is a flawed definition of a market because it can disappear from right under your feet. Defining the market based on the customer’s job-to-be-done is much more helpful because the job will exist forever and therefore, the market will too.

To execute market sizing with Jobs Theory, you can look at the willingness to pay to get the job done. Willingness to pay can be measured by asking job executors (and if necessary purchase decision makers) how much it is worth to them to get the job done perfectly. The resulting data can be plotted (from high to low) on a line against the number of job executors. We call this a “need curve.”

The area under the curve is the total market size. It will also identify the prices that will place your product at the high end of the market, the low end, or somewhere in between.

In Competing Against Luck, Clay Christensen says, “The reason why we are willing to pay premium prices for a product that nails the job is because the full cost of a product that fails to do the job — wasted time, frustration, spending money on poor situations, and so on — is significant to us.”

By looking at the willingness to pay to get the job done, you can price your product to target the part of the market that will be the most profitable, and you can measure how lucrative that market will be over time, without the risk of it going away.

Step 8: Create messaging and positioning.
Positioning a product in a market and creating messaging that will resonate with customers is quicker and easier using the job-to-be-done and its customer needs.

When messaging misses the mark, it is usually because the message is focused on the product and its features. For example, Magellan messaged to potential customers that its RoadMate product has a “Wide-Angle Lens” and a “G-shock Sensor,” both sophisticated technologies.

But how does a Wide-Angle Lens or a G-shock Sensor help a driver get to a destination on time? What need is it satisfying? If messaging describes the product features or technology, the customer has to figure out on their own how (and if) the features help them get the job done better.

Messaging based on satisfying the job-to-be-done is easier for customers to understand. And because the needs in the job-to-be-done are prioritized based on importance and satisfaction, you can create messages based on the most underserved customer needs in your market.

Step 9: Plan your roadmap.

“Jobs Theory enables innovators to make the myriad, detailed tradeoffs in terms of which benefits are essential and which are extraneous to a new offering.”

–Clay Christensen, Competing Against Luck

The unmet needs in the job-to-be-done are your basis for making smart tradeoffs. Each job typically has about 100 customer needs. You can prioritize the needs by calculating the difference between the importance and satisfaction scores. The needs with higher importance and lower satisfaction are top priority. When you’re choosing which product features to build now and which to postpone–making tradeoffs–you choose the features that meet the top priority needs.

The same mindset can be used to plan your road map. A great road map will balance cost, today’s impact, and tomorrow’s promise. During your idea generation, you may have come up with some brilliant ideas that will take a long time to build or be very expensive to execute. This doesn’t mean you should ditch them. You just need to figure out how to increment your way to the brilliant idea while meeting customer needs better and better along the way.

This is step 1 of your road map planning: Determine the incremental improvements that will take you from where you are today to where you want to be tomorrow, getting the whole job done faster and more reliably than the existing solutions. Step 2 is to determine which of those incremental improvements to tackle first. The criteria for this prioritization is the extent to which the improvements serve unmet needs. You prioritize the work that tackles the most important and least satisfied needs.

Without good customer metrics, such as needs in the job-to-be-done, companies often prioritize their roadmap based on a flimsy projection of business impact, the charisma of people lobbying for the features they like, and the “HiPPO” (the Highest Paid Person’s Opinion). All of these methods are subjective and/or based on unreliable premises.

Your product roadmap (and your tradeoffs) should not be prioritized by your team. They should be prioritized by your customer’s unmet needs in the job.

Step 10: Mitigate your risk.
Understanding what causes a customer to purchase (“hire”) a product can help you mitigate product development risk.

Competing Against Luck points out, “In 2015… one thousand publicly held companies spent $680 billion on research and development alone.” And yet, “Most people would agree that the vast majority of innovations fall far short of ambitions, a fact that has remained unchanged for decades.”

Once a product enters development, companies spend an enormous amount of capital, time, and resources on building, marketing, and selling the product. Jobs theory can help you avoid product failure and ensure the roadmap will generate the revenue and profit growth needed to justify the investment.

Failure occurs when a product does not create customer value in a market. What is “customer value?”

Customer value is a measure of the difference of customer satisfaction with getting the job done between your solution and the existing solutions. Since the goal is to satisfy customer needs and needs are metrics related to speed and accuracy, you can compare the speed and accuracy of getting the job done with your solution vs. a competitive solution. That difference is the customer value you’ve created.

satisfaction-chart-001

Market opportunities exist because a person is struggling to get the functional job done. Improving the speed and accuracy of getting the job done reduces struggle and anxiety, which increases customer satisfaction and the likelihood they will hire your product.

This means you can measure the value of an idea even before you build it. Consider how much faster and more accurately your idea will meet the needs in the job if your idea is executed perfectly. Compare that to the baseline–the current satisfaction levels with each need in the job. You now know if the idea adds value to the market, so you’ve mitigated the risk of your idea. You still have execution risk, but your situation is a lot better than the risk of executing perfectly on an idea that does not add value in your market.

Step 11: Accelerate your growth.
Steps 1 through 10 are all the preparation steps to launching your product and accelerating your revenue growth. Jobs theory gives you a different lens through which to view your market, your customer, and your competition. It gives you powerful, metric-driven, customer-centric techniques to identify unmet needs and competitor weaknesses. And it gives you the tools to generate great product ideas that customers will pay for and to create messages that will resonate with customers.

Jobs theory is not easy to practice, but it is extremely effective if you make the organizational changes required to execute it well. As Clay writes, “Organizations typically structure themselves around function or business unit or geography — but successful growth companies optimized around the job. Competitive advantage is conferred through an organization’s unique processes: the ways it integrates across functions to perform the customer’s job.”

If you are interested in learning more about jobs-to-be-done techniques that you can use at your company, feel free to contact me directly.

A Step-By-Step Guide to Using Clay Christensen’s Competing Against Luck and Jobs Theory to Launch Great Products, Part 1: How to Ask The Right Question

Concept business illustration.

This is a two part series explaining thrv’s process for executing Jobs Theory. Part 1: How to Ask The Right Question is about defining your customer’s job, identifying unmet needs, and analyzing competition. Part 2: Answering The Right Question is about how to build a high-growth roadmap using Jobs Theory.

Throughout my 25-year career as a Private Equity investor, as a CEO of two Silicon Valley startups backed by A-list VCs, and as a Product Manager at Microsoft, I consistently ran into the same mission critical problem: no one knew how to predict revenue growth.

It was easy to predict our costs because we controlled them. However, we struggled to predict our revenue growth because we didn’t know what caused people to buy our products. Without understanding purchasing causes, we couldn’t accurately predict how changes to our products would accelerate our revenue growth.

Ten years ago, I found the solution to my problem in Jobs-to-be-Done innovation theory (aka Jobs Theory), the subject of Clay Christensen’s new book, Competing Against Luck. The central idea behind Jobs Theory is, “your customers are not buying your products, they are hiring them to get a job done.”

If you understand what that job is, you can identify what causes customers to hire your products. As a result, you can make improvements to your products that will get the job done better. This is the key to mitigating investment risk and forecasting revenue accurately.

In the book, Clay states, “a job has an inherent complexity to it: it not only has functional dimensions, but it has social and emotional dimensions too.” This is why “in practice, seeing a job clearly and fully characterizing it can be tricky.”

After a decade of practicing Jobs Theory with companies ranging from $50 million to $50 billion in revenue, I couldn’t agree more with Clay. Identifying the job your customers are hiring your product to do is very difficult. Yet for the companies I’ve worked with, it has been the difference between declining or accelerating revenue growth.

Competing Against Luck is a deep exploration of Jobs Theory, but Clay is clear about “not attempting to be comprehensive or provide a step-by-step manual.”

In my time working with Jobs Theory, I learned that companies need a step-by-step process to turn the theory into high-growth products. That’s why I started thrv — to provide training, services, and software that enable executives and product teams to execute Jobs Theory successfully.

For those of you wondering how to use Jobs Theory to launch great products, here’s a step-by-step guide (in two parts) that maps a decade of practice to the theory in Competing Against Luck.

Step 1: Define your customer’s jobs.
In Competing Against Luck, Clay and his fellow authors suggest:

…define a job as the progress that a person is trying to make in a particular circumstance…a job has an inherent complexity to it: it not only has functional dimensions, but it has social and emotional dimensions too.

Rather than combine the functional, social, and emotional dimensions into one complex job statement, in practice I’ve found it easier to separate jobs into three different types:

  • Functional Jobs
  • Emotional Jobs
  • Consumption Jobs

Let’s look at each.

Functional Jobs
A functional job is the core task or goal that a customer is trying to accomplish.

The key is to define the task or goal independently from any product, service or technology.

As Clay says, “we don’t ‘create’ jobs, we discover them.”

“Creating a playlist on Spotify” is not a job because it includes a product (Spotify) and a solution (creating a playlist).

The question is: why do people create a playlist on Spotify? One answer is to “create a mood with music.” This is a more useful articulation of the functional job.

All products evolve and fade away over time. In order to execute the job of creating a mood with music, consumers have “hired” a huge range of products: piano rolls, Victrolas, LPs, eight-track tapes, reel-to-reel tapes, cassettes, CDs, MP3 players, and streaming apps. If you define the job with reference to the technologies consumers have used, you will be trying to hit a moving target. But, the job of creating a mood with music has never changed and will never change. This gives you a stable target for your business. Jobs Theory holds true in B2B and medical markets as we will demonstrate below.


Photo by Gillo Pontebraga – CC BY

According to Clay, “the circumstance is fundamental to defining the job (and finding a solution for it), because the nature of the progress desired will always be strongly influenced by the circumstance.”

At thrv, we state this a little differently, but the concept is the same: who is the job executor?

For example, is the job executor a consumer, a driver, a traveler, a parent, a surgeon, a nurse, a patient, a salesperson, a small business owner, a CIO, a technical architect, a database administrator, an engineer?

A single person can, of course, be multiple job executors (i.e. a driver, a parent, a patient, and an engineer) all in the same day. In Clay’s words, a person can find themselves in different “circumstances.”

The job executor is your core customer. The market exists because they are trying to execute a job-to-be-done.

While the job executor does not always make the purchase decision (e.g. a procurement officer or a hospital administrator can influence a purchase), your market exists because someone is trying to execute the core functional job. There would be no reason to purchase a solution if no one were trying to execute the functional job.

At the end of Competing Against Luck, Clay writes, “Defining the job at the right level of abstraction is critical to ensuring that the theory is useful.” This is a key step in the process.

We use three techniques to get to the “right level of abstraction.”

Focus on why in customer interviews. Ask your customers why they use a certain product. Why does a salesperson use CRM software? Why does a patient use a step-tracking app? CRM software and health apps are solutions and thus not jobs. Asking why will remove the product (which is ever-changing) from the equation and uncover the job (which is stable).

Use the Wake Up in the Morning Test. When your job executor wakes up in the morning, do they think, “I have to get this job done today”? Do salespeople wake up wondering how they will acquire customers? Do parents wake up wondering how to instill a behavior in a child? If yes, ask a helpful follow-up, “Did people waking up 100 years ago also need to do get this job done?” If not, you likely have included a solution in your job statement and you do not have a stable target for a long-lasting business.

Use Active, Goal-Driven Job Verbs. Clay writes, “a well-defined job-to-be-done is expressed in verbs and nouns.” But, what kind of verbs? Certain verbs, like “manage,” are not helpful in defining a job. For example, “manage lead data” is not a job for a salesperson because it is not the goal (i.e. it is at the wrong level of abstraction). Why does a salesperson want to manage lead data? To acquire customers. Acquire customers is the goal and thus a more useful level of abstraction. Good job verbs are active and goal-driven, such as: determine, understand, learn, acquire, enable, ensure, optimize, create, teach, instill, develop, buy, sell, obtain, identify, detect, mitigate, diagnose, treat, cure, prevent.

Emotional Jobs
We look at emotional jobs separate from the core functional job. This makes it easier to identify the emotions a job executor is experiencing when doing the job and ensures that we don’t neglect the functional job. Emotional jobs are important, but if you don’t get the functional job done, eventually your customer’s negative feelings will take over and they will fire your product.

Emotional jobs come in two flavors: personal and social.

A personal-emotional job is how you want to feel and avoid feeling when executing a job. For example, when getting to a destination on time, drivers want to feel calm and confident that they will arrive on time. They want to avoid feeling anxious about being late.

A social-emotional job is how the job executor wants to be perceived (and avoid being perceived) by others. For example, an IT professional wants to be perceived as valuable to the organization when optimizing a network. A surgeon wants to avoid being perceived as unsympathetic by patients when restoring artery blood flow.

Emotional jobs matter because if two products get the functional job done equally well, customers will choose the one that makes them feel better. For instance, if two different 401k services produce the same rate of return, they get the functional job done equally well. But, if one service hides the day-to-day data, it will make me anxious. I will choose the one that makes the health of my fund more transparent, relieving my anxiety. As Clay writes, “Overcoming customer anxieties is a very big deal.”

Consumption Jobs
Consumption jobs are the tasks required to use a solution. Purchase, install, learn to use, interface, maintain, repair, and dispose are all consumption jobs that relate to using a solution.

In the book, Clay doesn’t use the same language to discuss Consumption Jobs, but when he talks about “experiences,” he often includes Consumption Jobs.

One example from the book is how American Girl dolls were never sold in traditional toy stores but only in catalogues and then in American Girl stores. The stores in particular turned purchasing a doll (a consumption job) into a special event between a parent and their child. By tightly controlling their sales channels, American Girl improved on the purchase job. It’s a great example of how improving consumption jobs can contribute to the whole experience of getting the job done with a product.

Step 2: Identify all the needs in your customer’s job.
Knowing the customers functional, emotional and consumption jobs is just the start to practicing jobs theory. As Clay states, a product “designed without a clear job spec, even the most advanced products are likely to fail.” But, what is a “job spec”?

In our view, a job spec should include all the criteria a customer uses to judge if she can execute the job successfully. We call these criteria the customer needs, and they are metrics. As Clay writes, “A powerful lever to drive job-centric process development and integration is to measure and manage to new metrics aligned with nailing the customer’s job.”

So how do we identify all the needs (the “new metrics”) in your customer’s job? First, let’s define a customer need in more detail.

We know that all job executors want to execute the job “perfectly,” in Clay’s words. In our view, this means they want to execute it as fast as possible without any errors and without it going off track–quickly and accurately.

The good news is that speed and accuracy in a functional job can be measured, so we use “time” and “likelihood” as the main metrics to define customer needs in a job.

When drivers are trying to get to a destination on time, they need to reduce the time it takes to determine if an alternative route should be taken due to traffic. When surgeons are restoring artery blood flow, they need to reduce the likelihood of restenosis. When CIOs are enabling secure data use, they need to reduce the time it takes to determine the referential integrity of the data. When consumers are trying to create a mood with music, they need to reduce the likelihood that a song disturbs the mood.

We always structure customer needs the same way. They have a direction (reduce), a metric (time or likelihood), and a goal (e.g. an alternative route, restenosis). This structure makes needs measurable and consistent so you can align your team around objective goals.

Competing Against Luck uses the example of Southern New Hampshire University, who focused on the job of “providing [adult learners] with credentials that would improve their professional prospects as quickly and efficiently as possible.” Re-focusing on this job generated explosive growth for SNHU.

One way SNHU improved their performance on this job was by responding to financial aid inquiries within 10 minutes instead of 24 hours.

This demonstrates how you can define the needs in the job as metrics customers use to judge how quickly and accurately they can get the job done. We would define the job of SNHU’s customers as adult learners (the job executors) obtaining credentials to improve their professional prospects (the job-to-be-done).

Instead of framing the problem generically as adult learners who want to execute this job “as quickly and efficiently as possible,” we would identify all the needs in the job and structure them with a direction (reduce), a metric (time or likelihood), and a goal (e.g. obtain financial aid).

This gives us more detail about what “quickly and efficiently” actually means to the job executors.

Responding to financial aid inquiries within 10 minutes reduces the time it takes to determine if you can obtain financial aid. This is just one need in the job, but every job-to-be-done has about 100 customer needs (metrics). Your job spec should include all of these needs to get a full picture of the job.

This need structure is useful throughout the process. It helps you identify unmet needs, find competitor weaknesses, generate the best product ideas, and mitigate risk in your product road map.

Step 3: Find the unmet needs in your customer’s job.
“The Theory of Jobs to Be Done…focuses on deeply understanding your customers’ struggle for progress and then creating the right solution…”

Finding unmet needs is how you precisely articulate and quantify your customers’ struggles. A need is unmet if it has high importance but low customer satisfaction. It indicates that the job executor wants something to happen quickly or accurately but is not able to make it happen with their current solution. They are primed to switch to a new solution that meets the need.

We uncover the unmet needs with a survey that asks job executors to rate each need in the job for importance and satisfaction.

Identifying unmet needs also helps you empathize with your customers.

For example, Apple and Google Map did not help drivers “reduce the time it takes to determine an alternate route.”

You can picture this.

Imagine you are driving to a job interview and traffic on the highway comes to a complete stop. It’s not rush hour so this is a total surprise. What do you do? Do you get off and try to go a different way? How long is the traffic jam? Maybe a traffic report will come on the radio soon, but your anxiety increases with every passing minute.

Before Waze, you had no way to quickly determine if you should take an alternate route.

Waze built a business that Google bought for $1.3 billion by serving this unmet need in the job of getting to a destination on time. Waze’s app did this better than Google Maps, Apple Maps, and the radio. As a result users switched, and Waze experienced exponential growth.

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Step 4: Segment your customers.
Marketing 101 teaches us to identify a target customer. With Jobs-to-be-Done, our target is the job executors with the most unmet needs. They are the most underserved customers and therefore the segment who is most likely to buy (“hire”) your product to get the job done.

How is this different from traditional segmentation?

Clay writes, “Here I am, Clayton Christensen. I’m sixty-four years old. I’m six feet eight inches tall. My shoe size is sixteen. My wife and I have sent all our children off to college. I live in a suburb of Boston and drive a Honda minivan to work. I have a lot of other characteristics and attributes. But these characteristics have not yet caused me to go out and buy the New York Times today.”

Clay captures the essential flaw in traditional segmentation: demographics and psychographics do not cause purchases.

Age, shoe size, zip code, purchase history, etc. are all examples of characteristics that companies traditionally use to segment customers. This is also true in B2B markets, where companies segment customers by industry classification, number of employees, revenue, etc.

Here is a thought experiment to prove the point that demographics are not the most useful means of segmentation. Could an elderly rural woman who drives an economy car and an urban young man who drives a luxury sports car both struggle to get to a destination on time in the same way? In other words, could they have the same unmet needs in the job?

The answer, of course, is yes. But these two people (or “personas”) would never be grouped together in traditional segmentation and so a large portion of the market would be missed.

To execute Jobs Theory, we find customers who rate the same needs as important and unsatisfied and group them together. These are the people most likely to buy your product if it gets the job done better, regardless of their personas. They have the highest levels of frustration and anxiety when executing the job and are likely looking for a new solution.

Step 5: Identify your competitors’ weaknesses.
Once you have identified the job, found the unmet needs in the job, and segmented your customers, it’s time to identify your competitor’s weaknesses.

In every market there are multiple competitors, but they might not be who you expect. As Clay writes, “the competitive field is likely completely different from what you might have imagined.”

Did you ever think that Facebook is competing with cigarettes?

A smoker taking a break is not just seeking nicotine. Nicotine is a solution to a job. The underlying job is to relax.

As Clay writes, “From this perspective, people hire Facebook for many of the same reasons. They log into Facebook during the middle of the workday to take a break from work, relax for a few minutes while thinking about other things, and convene around a virtual water cooler with far-flung friends.”

The first part of identifying your competitors’ weaknesses is to identify the solutions people use to get the job done.

Airlines are not just competing with other airlines to help salespeople acquire customers. They are competing against web conferencing and CRM software. Angioplasty balloon makers are not just competing against other medical devices to help patients with blocked arteries improve their health. They are competing against diet programs, exercise routines, and fitness devices.

Once you see your entire competitive landscape, you can find and measure your competitors’ weaknesses by using the unmet needs in your customer’s job.

The structure of a customer need (direction, metric, goal) makes this possible. Your team can measure competitive weakness down to the second and the percentage. If the competition attempts to meet a need with a solution that is slow, manual, unreliable, or inaccurate, you have found a competitive weakness.

The competitive weakness sets the bar for how well your solution should meet the needs. To get customers to switch, you should target significant improvements over the speed and accuracy of your competition’s weak solution.


Now that you’ve defined your customer’s functional, emotional, and consumption jobs, identified the unmet needs, segmented your market, and analyzed how the competition serves these needs for the segment, you have the right question:

What can we do to serve our segment’s unmet needs in the job better than the existing solutions?

In Part 2, we’ll show you the process for answering this question.

Be sure not to miss Part 2 by signing up for our Jobs Theory newsletter. If you want to learn more about thrv right away, sign up for a demo.