Competing Against Luck: The Story of Innovation and Customer Choice

by Clayton M. Christensen

While many in the business world associate the word “theory” with something purely academic or abstract, nothing could be further from the truth. Theories that explain causality are among the most important and practical tools business leaders can have. The field of innovation is in need of better theory, especially for the foundational question “What causes a customer to purchase and use a particular product or service?” Jobs Theory answers this question by asserting that customers purchase and use (or “hire” in our jobs metaphor) products and services to satisfy jobs that arise in their lives. A job is defined as the progress that a customer desires to make in a particular circumstance. This definition is specific and important: Fully understanding a customer’s job requires understanding the progress a customer is trying to make in particular circumstances and understanding all of its functional, social, and emotional dimensions—as well as the tradeoffs the customer is willing to make. Once you understand the customer’s Job to Be Done, it brings into sharp relief the true competition you face to be hired. This provides critical information for how to innovate to make your solution more attractive than any competitor’s.