The Theory of Jobs to be Done

For a more extensive discussion of Jobs theory, we recommend obtaining a copy of the article Finding the Right Job for your Product in the Spring 2007 edition of  the Sloan Management Review.

Jobs in Brief

The Jobs-to-be-done theory holds that products are successful when they connect a circumstance with a job that customers find themselves needing to get done. By identifying what jobs people really care about and developing products that make it easier to achieve these jobs, companies can identify new markets that they were previously unaware of and that could not be uncovered via traditional market segmentation schemes. 

The 'fun saver' camera is an excellent example of how the theory works.  Most people would rather have a high quality digital or 35mm camera available to them to capture special moments in their lives.  But if they've left their camera at home, and have only an inferior quality disposable camera available to them, they will gladly accept that as an alternative to not capturing those moments at all.  This is what we mean by connecting a job; (in this case: capture the special moments) and a circumstance (in this case: I've forgotten my camera but still want to capture those moments).

Innosight Ventures close collaboration with Prof. Christensen has enabled us to develop a series of tools and frameworks that helps companies produce high-quality innovations more quickly and with sharply lower up-front investment. Companies that learn the disruptive innovation concepts and follow this approach can successfully create new growth through innovation.

This proprietary, iterative approach to creating innovation-driven growth contains three parts:



Meaningful jobs...

The jobs-to-be-done theory surmises that customers don't really buy products, they hire them to get jobs done in their lives. Look to find key frustration points, where customers are struggling to solve the problems they encounter in their lives.

Addressed through simpler solutions...

Companies must determine how they can de-feature and simplify an offering so that it best addresses the criteria that customers use when hiring solutions for the job-to-be-done. This means trading off improvements along one dimension of performance in favor of another, in order to best solve the customers' problems.

Implemented with a winning business model.

The hallmark of a successful disruptive innovation is that its business model is fundamentally a lower-cost model than the incumbent. To win, these different business models must be implemented with a "start small, earn profits early" approach that incorporates learning and adjustment, which effectively limits risk and improves the odds for ultimate success.

An Example of Jobs in action

An example that illustrates the jobs-to-be-done approach comes from the packaged foods industry. About five years ago, yogurt appeared to be a stagnating, uninteresting product category. Leading manufacturers such as General Mills and Danone continually introduced new varieties that tasted better and had more attractive -- but still conventional -- packaging. Yet those innovations barely created a ripple of growth.

Then, in 1999, General Mills introduced "Go-GURT", a product targeted at kids. Instead of innovating to change product characteristics, General Mills took a different approach: it innovated to change product delivery. Go-GURT is packaged in a tube, which allows one-handed consumption. Rather than sitting down with a spoon, children can grab Go-GURT and, as the name implies, eat it on the run.

From the company's viewpoint, Go-GURT was not a trivial innovation. General Mills had to create a package that kids could put in their mouths without injuring themselves or leaking dye. And the package had to be easy to open but not so easy that it would accidentally burst or tear when carried inside a backpack.

General Mills' efforts were worth it. Go-GURT took off, with first-year sales of more than $100 million, rejuvenating the yogurt category and helping General Mills capture market leadership from Danone. Driven by other innovations related to drinkable yogurt, US yogurt sales overall have increased by nearly 60% from 1998 to 2003.

What General Mills recognized was that improving on the attributes of yogurt itself would not generate new growth since products throughout that market were more than good enough along dimensions such as flavor. The improvements that would create new growth were those that increase convenience by bringing yogurt consumption to new contexts, thereby reaching previously unreachable customers, who had a specific job to do. By expanding the situations and occasions in which yogurt consumption was feasible, General Mills helped revitalize the category.