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I have always pondered over the hard job of innovating. What makes some organizations innovate more than others? While there are many methodologies out there, some science and others art, I was quite blown away with the Jobs-to-be-Done (JTBD) methodology described by Anthony W. Ulwick in his book ‘Jobs to be Done - Theory to Practice’ which claims that using the JTBD theory and Outcome Driven Innovation (ODI), the success rate (of innovating) is 86% vs. 17% using other methods.
That is one big statement!
I am linking the book at the bottom of the page if you’re interested in reading it. But today in this newsletter, I want to save you time and give you a full primer (total 5 steps) on how to go about using JTBD framework and ODI methodology to maximize your chances of product success and also allow you to come up with a kickass product strategy. Reading time is ~15 mins.
JTBD Template for Download
As you read today’s article, you can have this template handy to keep referring back to and understand the methodology better. I have created this template where you can plugin JTBD, Outcomes and importance/satisfaction scores to find out which segments of underserved or overserved customers you should target.
Screenshots from the template:
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But first of all, what is Jobs to Be Done (JTBD)?
JTBD is a framework that focuses on understanding the underlying motivations and goals that drive customer behavior, rather than just the features or characteristics of a product.
The core idea of JTBD is that customers don't simply buy products or services; they "hire" them to get specific jobs done. These jobs are the progress that a customer is trying to make in a particular circumstance.
A person doesn't just buy a lawnmower; they "hire" it to keep their lawn looking neat and their property value high.
Step 1: Find Jobs to be done in 5 categories
Let's explore the five categories of jobs and how to find them:
1. Core Functional Job
The primary task or goal that the customer is trying to accomplish.
This is the main reason a customer would use your product or service. It's the fundamental problem they're trying to solve or the primary outcome they're seeking to achieve.
For a fitness app, the core functional job might be "lose weight" or "improve cardiovascular health."
How to find it:
Conduct in-depth interviews with customers
Observe customers using your product or similar products
Ask "Why?" multiple times to get to the root of their motivation
2. Related Jobs
Secondary tasks or goals that support or complement the core job.
These are additional jobs that customers might want to accomplish in conjunction with the core job. They're not the primary reason for using the product, but they enhance the overall experience or outcome.
For the fitness app, related jobs might include "track nutrition intake" or "connect with workout buddies."
How to find them:
Ask customers about other tasks they perform before, during, or after using your product
Explore the broader context of the core job
Look for complementary activities in the customer's routine
3. Emotional and Social Jobs
How customers want to feel or be perceived as a result of completing the job.
These jobs relate to the customer's emotional state and social standing. They often involve self-image, status, and relationships with others.
For the fitness app user, emotional jobs might include "feel confident in my appearance" or "be seen as disciplined and health-conscious by peers."
How to find them:
Ask about customers' feelings before, during, and after using the product
Explore social situations where the product might be used or discussed
Investigate aspirational goals related to the core job
4. Consumption Jobs
Tasks related to buying, setting up, maintaining, and disposing of the product.
These jobs cover the entire lifecycle of product ownership, from initial purchase to eventual replacement or disposal.
For the fitness app, consumption jobs might include "easily sign up for a subscription," "quickly set up user profile," or "securely cancel membership."
How to find them:
Map out the entire customer journey
Observe or ask about the buying process
Investigate pain points in setup, maintenance, and disposal
5. Financial Jobs
How customers want to save or make money in relation to the job.
These jobs relate to the financial aspects of using the product or service, including cost savings, revenue generation, or financial management.
For the fitness app, financial jobs might include "save money on gym membership" or "reduce healthcare costs through better health."
How to find them:
Discuss budgeting and financial goals related to the product category
Explore how the product might impact the customer's financial situation
Investigate potential monetary benefits or drawbacks of using the product
Step 2: Knowing Jobs is not enough, what about the outcomes customers want to achieve? Introducing Outcome-Driven Innovation (ODI)
ODI is a strategy for innovation that focuses on the outcomes customers want to achieve when using a product or service.
ODI takes the jobs identified in JTBD and breaks them down into specific, measurable outcomes. This allows companies to quantify customer needs and identify opportunities for innovation.
For the "lose weight" job in our fitness app, an outcome might be "minimize the time it takes to log daily food intake."
Finding Outcomes
Outcomes are the metrics customers use to measure the successful execution of a job.
For each job (core, related, emotional/social, consumption, and financial), you need to identify multiple outcomes that customers use to evaluate success.
How to find them:
Interview customers about their goals and challenges related to each job
Ask how they measure success for each job
Observe customers using products and note their frustrations or moments of delight
Analyze customer complaints and support tickets
Review product reviews and ratings for insights
Example: For the "track nutrition intake" job, outcomes might include:
Minimize time required to log meals
Maximize accuracy of calorie count
Minimize effort to scan packaged food items
Maximize variety of cuisine options in the database
Step 3: How important is each outcome? And how satisfied is the customer the way alternatives and competitors are serving their needs?
i.e Measure Importance and Satisfaction
Importance: How crucial an outcome is to the customer
Satisfaction: How well current solutions meet the customer's needs for that outcome
By measuring both importance and satisfaction, you can identify which outcomes are most critical to customers and where current solutions are falling short.
How to measure:
Create a survey listing all identified outcomes
Ask respondents to rate each outcome on two scales:
Importance: "How important is this outcome to you?" (1-10 scale)
Satisfaction: "How satisfied are you with current solutions for this outcome?" (1-10 scale)
Collect responses from a statistically significant sample of your target market
Example: Outcome: "Minimize time required to log meals"
Importance rating: 9/10
Satisfaction rating: 4/10
Step 4: Calculating Opportunity Score
The Opportunity Score is a metric that helps prioritize innovation efforts by identifying underserved outcomes.
The Opportunity Score combines importance and satisfaction ratings to highlight where there's the most potential for improvement.
Opportunity Score = Importance + max(Importance - Satisfaction,0)
Example: For "Minimize time required to log meals"
Importance: 9
Satisfaction: 4
Opportunity Score = 9 + max(9 - 4,0) = 14
Interpreting Opportunity Scores
Underserved Segments (High Score: 10-20)
Outcomes with high importance and low satisfaction
These represent the best opportunities for innovation, as customers highly value these outcomes but are not satisfied with current solutions
An Opportunity Score of 15 for "Maximize accuracy of calorie count" indicates a prime area for improvement in the fitness app
Overserved Segments (Low Score: 0-5)
Outcomes with low importance or high satisfaction
These areas may be over-engineered or not critical to customers, presenting opportunities for cost-cutting or feature simplification
An Opportunity Score of 5 for "Customize app color scheme" suggests this feature might not be worth significant development resources
Aptly Served Segments (Medium Score: 5-10)
Outcomes with balanced importance and satisfaction
These areas are adequately addressed by current solutions and may not require immediate attention
An Opportunity Score of 8 for "View historical weight trends" indicates that while important, this feature is reasonably well-served by existing solutions
Step 5: Come up with the Product Strategy to address the relevant outcomes
Product Strategy using Jobs to Be Done (JTBD) and Outcome-Driven Innovation (ODI) as developed by Anthony Ulwick is a comprehensive approach to creating value for customers. This method focuses on understanding the 'job' customers are trying to get done and the outcomes they desire.
(Screenshots below from JTBD : Theory to Practice book by Anthony W.Ulwick - linked at the bottom)
Based on this understanding, companies can develop strategies that fall into four categories: Differentiated, Dominant, Discrete, and Disruptive.
Differentiated Strategy: This strategy is used when a company identifies unmet needs in the market that competitors are not addressing effectively.
Process:
Identify underserved outcomes in the market
Develop products or services that address these outcomes better than existing solutions
Target customers who value these improvements and are willing to pay for them
Example: A smartphone manufacturer might focus on creating a phone with exceptional battery life, addressing the underserved need for longer-lasting devices.
Dominant Strategy: This strategy aims to outperform competitors across most or all important customer outcomes.
Process:
Identify all key outcomes customers desire
Develop a product that satisfies these outcomes better than any competitor
Target a broad market segment
Example: Amazon's strategy in e-commerce, where they aim to be the best in price, selection, convenience, and customer service.
Discrete Strategy: This strategy focuses on serving a specific segment of customers extremely well by addressing their unique needs.
Process:
Identify a specific customer segment with distinct needs
Develop products or services tailored to these specific needs
Target only this segment, potentially ignoring broader market demands
Example: A software company developing specialized tools for a niche industry like oil and gas exploration.
Disruptive Strategy: This strategy targets overserved customers or non-consumers with a simpler, more accessible solution.
Process:
Identify outcomes that are overserved (where existing solutions are more complex or expensive than necessary)
Develop a simpler, often cheaper solution that adequately satisfies these outcomes
Target overserved customers or non-consumers who find existing solutions inaccessible
Example: Chromebooks disrupting the laptop market by offering a simpler, cheaper alternative for basic computing needs.
Summary: To arrive at these strategies using JTBD and ODI:
Define the job-to-be-done: Understand what customers are trying to accomplish.
Identify desired outcomes: Break down the job into specific, measurable outcomes customers want to achieve.
Measure importance and satisfaction: Survey customers to understand how important each outcome is and how satisfied they are with current solutions.
Analyze opportunities: Look for outcomes that are important but not well-satisfied (underserved needs) or outcomes that are over-satisfied.
Segment the market: Group customers based on their desired outcomes.
Choose a strategy: Based on the analysis, select the most appropriate strategy (Differentiated, Dominant, Discrete, or Disruptive).
Develop and position the offering: Create a product or service that aligns with the chosen strategy and communicate its value proposition effectively.
By following this process, companies can develop product strategies that are deeply aligned with customer needs, increasing their chances of market success.
Get the JOBS TO BE DONE: THEORY TO PRACTICE BOOK here