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Competing Against Luck: The Story of Innovation and Customer Choice Hardcover – Illustrated, October 4, 2016
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How do companies know how to grow? How can they create products that they are sure customers want to buy? Can innovation be more than a game of hit and miss? Harvard Business School professor Clayton Christensen has the answer. A generation ago, Christensen revolutionized business with his groundbreaking theory of disruptive innovation. Now, he goes further, offering powerful new insights.
After years of research, Christensen and his co-authors have come to one critical conclusion: our long held maxim--that understanding the customer is the crux of innovation--is wrong. Customers don't buy products or services; they "hire" them to do a job. Understanding customers does not drive innovation success, he argues. Understanding customer jobs does. The "Jobs to Be Done" approach can be seen in some of the world's most respected companies and fast-growing startups, including Amazon, Intuit, Uber, Airbnb, and Chobani yogurt, to name just a few. But this book is not about celebrating these successes--it's about predicting new ones.
Christensen, Hall, Dillon, and Duncan contend that by understanding what causes customers to "hire" a product or service, any business can improve its innovation track record, creating products that customers not only want to hire, but that they'll pay premium prices to bring into their lives. Jobs theory offers new hope for growth to companies frustrated by their hit and miss efforts.
This book carefully lays down the authors' provocative framework, providing a comprehensive explanation of the theory and why it is predictive, how to use it in the real world--and, most importantly, how not to squander the insights it provides.
- Print length288 pages
- LanguageEnglish
- PublisherHarper Business
- Publication dateOctober 4, 2016
- Dimensions1.2 x 6.1 x 9.1 inches
- ISBN-100062435612
- ISBN-13978-0062435613
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Clayton Christensen’s books on innovation are mandatory reading at Netflix. (Reed Hastings, Co-founder and CEO of Netflix)
Competing Against Luck offers fresh thinking on how to get innovation right. Clayton Christensen and his coauthors offer a compelling take on how to truly understand customers by the progress they’re seeking to make in their lives. Bravo! (Muhtar Kent, CEO of The Coca-Cola Company)
Clay Christensen and his co-authors have presented critical business thinkers and doers with a breakthrough theory that will change how leaders approach innovation by reverse engineering from a high value and focused customer job to be done. I have read it cover to cover--and will ask my top team to do the same. (Ron Frank, IBM)
[Competing Against Luck] will likely become part of the thoughtful founder’s strategy arsenal. True to its unpretentious name, jobs theory is disarmingly simple… “What job is our customer trying to accomplish?” stands as one of those great business questions that companies deploy to stimulate creative juices at the start of meetings. But Competing Against Luck doesn’t just introduce a tool, it also lays out a program. (Inc. Magazine)
The Theory of Jobs to Be Done has the essential trait of any good management theory: Once explained, it seems glaringly obvious. (Philip Delves Broughton, Wall Street Journal)
In an age of big data and hyper segmentation, Christensen’s thinking is refreshing and clarifying. This book will relieve you of tired marketing conversations and invite you into worlds of new and ultimately, defining possibilities. Competing Against Luck is a must read for anyone working on developing or sustaining a distinctive brand. (Maureen Chiquet, former CEO of Chanel and author of forthcoming Beyond the Label)
As a long-time fan of Clay Christensen, I was eager to read Competing Against Luck -- and it didn’t disappoint. This book has the potential to change the way you view innovation. Engaging and well-written, Christensen and his co-authors caused me to stop and really think about how Khan Academy is growing. I highly recommend it. (Sal Khan, Founder & CEO, Khan Academy)
From the Back Cover
How do leaders know how to grow? How can they create products that they are sure customers want to buy? Can innovation be more than a game of chance? The foremost authority on innovation and growth, Harvard Business School professor Clayton Christensen and his coauthors Taddy Hall, Karen Dillon, and David S. Duncan have the answer. A generation ago, Christensen revolutionized business with his groundbreaking theory of disruption—a way to predict how competitors will respond to different types of innovation. In this book he examines the other side of the puzzle: what causes growth, and how to create it.
After years of research, Christensen, Hall, Dillon, and Duncan have come to one critical conclusion: our long-held maxim—that the crux of innovation is knowing more and more about the customer—is wrong. Customers don’t simply buy products or services; they “hire” them to do a job. Understanding customers does not drive innovation success, the authors argue. Understanding customer jobs does. The “Jobs to Be Done” approach can be seen in some of the world’s most respected companies and fast-growing startups, including Amazon, Intuit, Uber, and Airbnb to name just a few. But this book is not about celebrating these successes—it’s about predicting new ones. Christensen and his coauthors contend that by understanding what causes customers to “hire” a product or service, any manager can improve their innovation track record, creating products that customers not only want to hire, but that they’ll pay premium prices to bring into their lives. Jobs theory offers new hope for growth to companies frustrated by their hit-or-miss efforts.
This book carefully lays down the authors’ provocative framework, providing a comprehensive explanation of the theory, why it’s predictive, and, most important, how to use it to improve innovation in the real world.
About the Author
TADDY HALL is a Principal with The Cambridge Group and Leader of Nielsen's Breakthrough Innovation Project. As such, he helps senior executives create successful new products and improve innovation processes. He also works extensively with executives in emerging markets as an advisor to the non-profit, Endeavor.
KAREN DILLON is the former editor of the Harvard Business Review and co-author of New York Times best-seller How Will You Measure Your Life and The HBR Guide to Office Politics. A graduate of Cornell University and Northwestern University's Medill School of Journalism, she was named by Ashoka as one of the world's most influential and inspiring women.
DAVID S. DUNCAN is a senior partner at Innosight. He's a leading thinker and advisor to senior executives on innovation strategy and growth, helping them navigate disruptive change, create sustainable growth, and transform their organizations to thrive for the long-term. He is a graduate of Duke University and earned a Ph.D. in physics from Harvard University.
Product details
- Publisher : Harper Business; Illustrated edition (October 4, 2016)
- Language : English
- Hardcover : 288 pages
- ISBN-10 : 0062435612
- ISBN-13 : 978-0062435613
- Item Weight : 1.02 pounds
- Dimensions : 1.2 x 6.1 x 9.1 inches
- Best Sellers Rank: #56,162 in Books (See Top 100 in Books)
- #9 in Business Research & Development
- #69 in Marketing & Consumer Behavior
- #947 in Leadership & Motivation
- Customer Reviews:
About the authors
Clayton M. Christensen is the Kim B. Clark Professor of Business Administration at the Harvard Business School. In addition to his most recent book, Competing Against Luck, he is the author of nine books, including several New York Times bestsellers — The Innovator's Dilemma, The Innovator's Solution, Disrupting Class, and and most recently How Will You Measure Your Life?. Christensen is the co-founder of Innosight, a growth-strategy consultancy; Rose Park Advisors, an investment firm; and the Christensen Institute, a non-profit think tank. In 2011 and 2013, he was named the world’s most influential business thinker by Thinkers50.
KAREN DILLON is a former editor of the Harvard Business Review and co-author of three books with Harvard Business School professor Clayton Christensen, including the New York Times bestseller How Will You Measure Your Life? She is also the co-author The Microstress Effect: How Little Things Pile Up and Create Big Problems – and What to Do about It, which was named one of Thinkers50 Best Management Books of 2023. Currently on the faculty of Intermountain Healthcare Leadership Institute and a contributing editor to Harvard Business Review, Dillon was previously named by Ashoka as one of the world’s most influential and inspiring women.
Taddy Hall is a Senior Partner in the innovation practice at Lippincott. Taddy helps senior client executives create successful new businesses and improve innovation outcomes. Taddy also works extensively in with executives in emerging markets to launch new growth businesses in his capacities as a Global Advisor to the non-profit Endeavor and as Managing Partner of Innovation Without Borders®.
David S. Duncan is a featured speaker and author on topics of innovation and growth, and a trusted advisor to senior executives at many of the world's most iconic companies.
He is the co-author of two books and a number of influential articles. His latest book is “Competing Against Luck: The Story of Innovation and Customer Choice” (HarperCollins, October 2016), co-authored with Harvard Business School Professor Clayton Christensen. A groundbreaking book with the potential to reframe industries, “Competing Against Luck” is based on a simple yet profound idea: customers don’t buy products and services; they hire them to do a job. And understanding which jobs your customers need done is key to innovation success.
David is also the co-author of the e-book, “Building a Growth Factory” (Harvard Business Press, November 2012) and several Harvard Business Review articles, including “Knowing When to Reinvent” (December 2015), coauthored with the CEO of Aetna, Mark Bertolini, and "Build Your Innovation Engine in 90 Days" (December 2014).
He is currently a Senior Partner at Innosight, where he helps leaders to navigate disruptive change, create sustainable growth, and transform their organizations to thrive for the long-term. In his decade with Innosight he has worked with a diverse set of clients including Proctor & Gamble, General Electric, Medtronic, Mercer, Citigroup, and Aetna.
David holds a PhD in physics from Harvard University, and graduated Phi Beta Kappa from Duke University. Follow him on Twitter @DavidScDuncan.
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His latest book convincingly creates a robust framework on his simple elegant and insightful queries of: What Is the Job to be Done? What Job Did Someone Hire a Product or Service to do? He begins by reiterating his famous milkshake story. Why do people hire a milkshake? What job is it that they need to make progress on? Why can't a donut, fruit or other products be hired? Why is it IKEA is so successful? How is it that the OnStar feature was popular with both Chevrolet and Cadillac consumers? What Job are people hiring Airbnb or Khan Academy to do?
The answer is that they solve the customer's struggle for progress towards a specific goal. IKEA - I need to furnish a living space easily, cheaply, quickly with a stress-free experience. OnStar - I want peace of mind or help when I'm driving and something happens. Airbnb - I need a place to stay that isn't a hotel experience. Khan Academy - I need to learn in a way that is easy and convenient for me. Discovering these future jobs to be done that people wish to hire can be as simple as stepping back and asking yourself - isn't there a better way to do this? Creating a solution takes more work, more listening, and more questions to customers and observing them in the Jobs to Be Done framework.
The robust framework of Jobs to Be Done is deliberate by Christensen and team. Jobs to Be Done and Jobs to Hire or Fire conceptually is easy to grasp. As a result, it also has the potential to be overused incorrectly like his previous theory on Disruption which is overused and often erroneously to describe any innovation or change. Specifically for Jobs to Be Done, successful innovators and problem solvers need to consider the specific circumstance the job would be hired as well as the functional, social, and emotional aspects of the job. Each of these elements could enable adoption or create barriers to getting the solution hired. (Example- a Detroit real estate developer just couldn't seem to get deals closed. The a-ha moment was when the developer truly understood the obstacle to selling the home was that potential home buyers didn't know what to do with their dining room tables. These dining room tables symbolized a lifetime of memories. Once the real estate developers realized that they were not in the building new home construction business but in the business of moving lives, they provided services and products that met the emotional needs of their clients. Result? The number of sold homes increased).
Fabulous and detailed stories from Southern New Hampshire University (SNHU), American Girl, Intuit (makers of TurboTax and Quickbooks), OnStar, bring to life the challenges, and opportunities to bring a solution to Jobs to Be Done. Traps and obstacles await for those trying to build novel solutions inside an existing organizations and for others who rely too quickly on traditional data metrics once the solution to the job to be done has proven to be successful.
Christensen concludes "I've spent twenty years gathering evidence so that you can put your time, energy, and resources into creating products and services that you can predict, in advance, customers will be eager to hire. Leaving relying on luck to the other guys."
It is his finest book yet. A must have on the self of any business leader or entrepreneur. Like his previous works, destined to be a classic and reference for years to come.
In this book, Christensen et al, offer a simple but profound insight which they call the ‘Theory of Jobs to Be Done.’ The purpose of this insight is to shed light on why people adopt an innovation in large enough numbers to make it a success, and how to identify innovations that will be adopted.
‘The job to be done’, they assert is the causal mechanism for successful innovation. Using this insight enables companies not only to create but also to predict new innovations that will succeed. Phrasing the innovation in this manner allows for a deep understanding of the customers’ need at a more profound level.
To introduce this concept, the authors describe (among other examples,) the “job of a milkshake.” Why would someone “hire” a milkshake? What “job” is the milkshake expected to perform? “We all have jobs we need to do that arise in our day-to-day lives and when we do, we hire products or services to get these jobs done,” the authors explain.
If you can answer this question, increasing sales is far more likely to be useful than doing taste tests, demographic surveys and purchase studies.
When looking for an answer to this question (an actual case), the researchers were surprised to find that an oddly high number of milkshakes were sold before 9:00 a.m. to people who came to the fast-food restaurant alone. Doing taste tests, demographic surveys and purchase studies would not yield the quality of information that came from asking this question: “Excuse me, please, but I have to sort out this puzzle. What job were you trying to do for yourself that caused you to come here and hire that milkshake?”
It turned out that they had long and boring rides to work and needed something to keep the commute interesting. Coffee doesn’t do the job well because it gets cold too quickly, eating bananas makes you feel too full, but hiring a milkshake does the job well. It is thick enough to sip, lasts long enough, and remains pleasurable through the journey.
Approaching the study from the ‘job to be done’ perspective is quite different to fast-food restaurants asking a patron to give feedback in one of its customer surveys to the question: “How can we improve this milk shake so you buy more of them?” A single dad coming to a restaurant with his young son would answer the survey very differently to the same man when he buys a milkshake for his morning commute. The milkshake is hired for very different jobs, in two very different circumstances.
So how can one identify innovative opportunities if compiling data-rich models only makes businesses “masters of description but failures at prediction”? “We believe Jobs Theory provides a powerful way of understanding the causal mechanism of customer behaviour, an understanding that, in turn, is the most fundamental driver of innovation success,” the authors explain.
So how is Jobs Theory to be applied so that you create products that customers will not only want to buy, but will even be willing to pay premium prices for? Simply put, customers don’t buy products or services: they pull them into their lives to resolve highly important, unsatisfied jobs that arise.
Jobs are never simply about the function of the service or product. The circumstance is central to their definition, not customer characteristics, product attributes, new technology, or trends. Just think of how you would hire a baby-sitter – who would you trust with your children?
“It’s important to note that we don’t ‘create’ jobs, we discover them,” the authors explain. This is a 180 degree shift from viewing innovation as creating what no-one has ever seen before, and then trying to stimulate a need.
Jobs can be discovered in many ways. One is just watching the customers you do—and don’t—already have, and looking for the job that they want done. Do many DIY customers in your hardware store need technical assistance?
You can also learn much about a Job to Be Done from people who aren’t hiring any product or service to do the Job. Airbnb reports that 40% of their “guests” say they would not have made a trip at all, or would have stayed with family, if Airbnb didn’t exist. As such, Airbnb is not in competition with hotels. There may be an entirely new growth opportunity right in front of you.
Are people creating ways of working around a problem or just compensating for it? Banking giant ING saw the segment no bank wants, low net-worth individuals, who want a simple, inexpensive banking facility. They were being chased away by high banking charges and other barriers. ING created ING Direct that has no deposit minimums, is fast, convenient, and secures your money. Of course, you won’t see workarounds if you’re not fully immersed in the context of the consumers’ struggle.
There are probably more jobs people do not want to do than jobs they want to do. Negative jobs are often the best innovation opportunities. Because most people don’t want to go to the doctor if they don’t have to, there are now more than a thousand MinuteClinic locations inside CVS pharmacy stores in thirty-three states in America.
Innovation can also be identified in the unusual use of products. NyQuil had been on the market for decades as a cold remedy, but some consumers were using it to help them sleep, even when they weren’t sick. This led to ZzzQuil, which offers a good night’s sleep without the other active ingredients consumers didn’t need.
Growth can be found where none seems possible. It is dependent on knowing what to look for, and the question to be asked: What is the Job here?
There are gems in this easy-to-read book, with many examples of every point they make. No matter your line of work, this is a clever way to look for new business, but it must be done carefully and slowly.
Readability Light -+--- Serious
Insights High +---- Low
Practical High -+--- Low
*Ian Mann of Gateways consults internationally on leadership and strategy and is the author of Strategy that Works.
Top reviews from other countries
En cuanto lo lea colocaré una actualización
2. Active / Passive data is a novel way for reaching a conclusion on building products
3. Best book for teams in the organisation to understand the job to be done for the client and what progress the client makes in the process
Because the digital version probably has 50% or more of the whole eBook highlighted!
(Which I prefer, and it's searchable)
I rarely recommend books because a book will meet you where you're at.
Because it works with everything you've consumed, absorbed and understood before...you may not be ready for this GEM.
O livro possui uma linguagem leve, direta ao ponto e cheia de exemplo, acabei de ler em metade de uma semana e achei o conteúdo ótimo.