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Jobs to be Done: Theory to Practice
Entrepreneurship

Jobs to be Done: Theory to Practice

Tony Ulwick 2016 12 references

Use when applying Jobs-to-be-Done Theory or Outcome-Driven Innovation to define customer needs, segment markets, select growth strategies, or prioritize innovation investments.

innovation customer-needs product-strategy market-segmentation outcome-driven-innovation jobs-to-be-done

Overview

The Core Framework

  • Innovation fails because companies have no shared definition of "customer need" — not because they lack ideas or creativity
  • Customers don't buy products — they hire solutions to get a job done; the metrics they use to measure success are desired outcomes
  • The JTBD Needs Framework defines 6 need types: core functional job, desired outcomes, related jobs, emotional/social jobs, consumption chain jobs, financial outcomes
  • The Opportunity Algorithm (Importance + max(Importance - Satisfaction, 0)) quantifies which outcomes are unmet — score ≥10 = underserved
  • Outcome-Driven Innovation (ODI) is a 10-step (84 sub-step) process validated at an 86% success rate vs. the industry average of ~17%

Quick Lookup

Situation Do This Avoid This
Defining customer needs Capture 50-150 desired outcome statements per job using the Job Map Asking customers what solutions they want
Choosing a growth strategy Use the Growth Strategy Matrix based on segment data Picking strategy without knowing if segments are underserved or overserved
Prioritizing opportunities Score outcomes with the Opportunity Algorithm; target ≥10 Relying on gut feel or feature requests
Segmenting the market Segment by shared unmet outcomes, not demographics Using personas based on age, income, or psychographics
Launching quickly Reposition messaging around unmet outcomes first Building new features before checking if existing ones satisfy unmet needs
Entering a "mature" market Run outcome-based segmentation — hidden segments exist Assuming no opportunities remain because the market is saturated

The Key Insight

"A company cannot reliably create customer value if it does not first agree on what a need is and how many different types of needs customers have." — Tony Ulwick, p. 46

References