Originally published: 23/02/2023 13:04
Last version published: 14/03/2023 16:03
Publication number: ELQ-83412-8
View all versions & Certificate
Last version published: 14/03/2023 16:03
Publication number: ELQ-83412-8
View all versions & Certificate
Ulwick's Job-to-be-Done (JTBD) Growth Strategy Matrix Model Template
A hands-on PPT template version of Ulwick's JTBD Jobs-to-beDone Growth Strategy matrix for business leaders to use to re-position product/ service offerings.
by Tim DemouresChief of Staff @Wimi, Managing Director @Eloquens, VP Key Projects @Adventures Startup StudioFollow 189
Description
In his 2017 article "The Jobs-to-be-Done Growth Strategy Matrix" published on Medium (https://jobs-to-be-done.com/the-jobs-to-be-done-growth-strategy-matrix-426e3d5ff86e ), Tony Ulwick (Founder of the innovation consulting firm Strategyn, pioneer of Jobs-to-be-Done Theory, creator of Outcome-Driven Innovation), introduces a new growth strategy framework called "The Jobs-to-be-Done Growth Strategy Matrix".
His Matrix is based on the "Job-to-be-Done (JTBD)" framework. The Jobs-to-be-Done (JTBD) framework was first introduced by Professor Clayton Christensen (Harvard Business School - https://hbr.org/2016/09/know-your-customers-jobs-to-be-done ), and his colleagues in the late 1990s as a way to understand why people buy and use products. The JTBD concept was introduced in the book "The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail," (1997, Harvard Business Review HBR Press - https://www.hbs.edu/faculty/Pages/item.aspx?num=46 ). While the JTBD concept was not the main focus of the book, it was an important component of the framework that Christensen used to explain why some successful companies fail to innovate and adapt to changing market conditions. The esssence of the Theory asserts that people do not buy products or services, but they choose them to do a specific job or to accomplish a specific task.
The JTBD framework gained wider recognition in the early 2000s when Anthony (Tony) Ulwick (a former student of Christensen's) expanded on the concept and created the "Outcome-Driven Innovation process". This process aims to help companies identify and solve customers' unmet needs by focusing on the job that customers are trying to get done, rather than on the product itself.
Since then, the JTBD framework has been widely adopted in product development, marketing, and innovation circles. It has become a key approach for companies seeking to create products that meet their customers' needs more effectively and efficiently. Today, the JTBD theory is considered a fundamental approach to understanding customer needs and driving innovation.
Expanding on the "Outcome-Driven Innovation process" and JTBD, Ulwick formalised the "JTBD Growth Strategy Matrix". It's objective is to help organizations understand and prioritize customer needs by focusing on the "job" that customers are trying to do when they use a product or service. This framework is useful for identifying growth opportunities and developing strategies for meeting customer needs and driving business growth.
The matrix is a 2x2 matrix, with 2 axis:
- X-Axis: Charge ... More or Less
- Y-Axis: Get-Job-Done ... Better or Worse
This leads to 4 potential strategies according to Ulwick:
- ✌️ Differentiated Strategy (Charge More, Get job done better): This strategy involves developing products or services that are unique and differentiated from those offered by competitors. By offering a unique solution to customer needs, organizations can gain a competitive advantage and attract customers who value the differentiation. Examples: Nest's thermostat, Nespresso's coffee and espresso machines, and Apple's iPhone 2G.
- 💪 Dominant Strategy (Charge Less, Get job done better): This is the most effective strategy for a particular customer job and is the one that organizations should focus on in order to drive business growth. A dominant strategy may be different for each customer job, and organizations should identify the dominant strategy for each customer segment in order to prioritize their efforts. Examples: Google Search, UberX, and Netflix's streaming video.
- 🤘 Discrete Strategy (Charge More, Get job done worse): This strategy involves developing products or services that are specifically designed to address a particular customer job. This may involve developing products that are optimized for a specific customer segment, or creating a solution that is tailored to meet the needs of a specific job. Examples: drinks sold in airports past security checkpoints, stadium concessions at sporting events, and check-cashing and payday-lending services.
- 👊 Disruptive Strategy (Charge Less, Get job done worse): This strategy involves introducing new products or services that disrupt established markets and change the way customers perform a job. Disruptive strategies are often characterized by innovation and are used to challenge established players and create new growth opportunities. Examples: Google Docs, TurboTax, and Dollar Shave Club's razor offering.
- 👌 Sustaining Strategy (in the center - charge and get job done "as usual"): This strategy involves improving existing products or services in order to maintain their competitive position in the market. Sustaining strategies are often focused on incremental improvements to existing products and services and are used to maintain customer satisfaction and retain market share. Most products and services usually fall into this category.
Each of these concepts can play a role in the JTBD Growth Strategy Matrix and can help organizations identify the most effective strategies for meeting customer needs and driving business growth. By focusing on the dominant strategy for each customer job, organizations can prioritize their efforts and focus on the areas that will have the greatest impact on customer satisfaction and business growth.
Conclusions made by Ulwick on the matrix:
When it comes to product performance and price, there are different customer segments that are willing to pay more or less depending on their needs and preferences, leading to 5 conclusions:
1. A better-performing, more expensive product is likely to appeal to underserved customers who are looking for a solution to unmet needs and are willing to pay a premium for a better job done.
2. In contrast, a better-performing, less expensive product is naturally likely to appeal to the greatest wider range of customers who value both performance and affordability, that is to say ALL customers.
3. A worse-performing, less expensive product is likely to appeal to overserved customers who have no unmet needs and are looking for a more cost-effective solution. It may also appeal to nonconsumers who are not currently using any products in the market due to affordability issues
4. On the other hand, a worse-performing, more expensive product is likely to appeal to customers who have limited or no alternatives available, such as in unique or atypical situations.
5. Some products/ services may be "stuck in the middle" (as coined by Porter in his famous "Porter's Generic Strategies Matrix" available seperately here: https://www.eloquens.com/tool/nN2XTgVl/strategy/competitive-advantage-strategies/porter-s-generic-strategies-matrix-template ) and only provide a slight improvement in performance or cost compared to existing solutions. Such products may struggle to attract new customers but can help incumbent companies retain their existing customer base. This approach is not ideal for new market entrants but may be suitable for established companies looking to maintain their market share.
Additional reading on Ulwick's JTBD Growth Strategy Matrix:
- Strategyn's papter on the JTBD Framwework: https://strategyn.com/wp-content/uploads/2019/11/The-Jobs-to-be-Done-Growth-Strategy-Matrix-Strategyn-1.pdf
- Ravi Kumar's take on the framework:https://medium.com/yoursproductly/46-what-did-i-learn-about-jtbd-growth-strategy-matrix-from-tony-ulwick-part-1-c2a6f12c576d
- Explanatory video by Strategyn's (35 minutes):https://www.youtube.com/watch?v=6fk_YIDckNo
- - - - -
Given my usual curiosity on Strategy Frameworks, I took on the challenge to make a hands-on PowerPoint version of Ulwick's JTBD Growth Strategy Matrix for business leaders to use "on-the-job" very easily, or for strategy consultants to use to suggest new strategic moves for their client companies.
The file is 2 editable Microsoft PowerPoint Template Slides
- 1 version at "Market Level" to study the position of various companies who essentially provide 1 product/ service
- 1 version at "Product/ Service Portfolio" level, for a given business leader to analyse the strategic moves that can be made to maximise growth potential.
The Best Practice also has an online or offline 14 step-by-step methodology, with pedagogical illustrations for each step. An editable Excel file to adapt the data points for each company or product/service is included behind each PowerPoint files.
Should you have any questions on using this top tier Management/Strategy Consulting Framework Template slide, you're welcome to reach out to me via Private Message.
Good luck !
- Tim
⭐️ Bundle of 6 Pricing Strategy Framework Templates (including this one): https://www.eloquens.com/tool/rmzLSr1k/tim-demoures/pricing-strategy-frameworks-bundle
⭐️ Bundle of 16 Four-Quadrant (2x2) Matrix Framework Templates (including this one): https://www.eloquens.com/tool/wJa7FKkP/strategy/management-consulting-templates-and-frameworks/four-quadrant-matrix-frameworks-template-bundle
In his 2017 article "The Jobs-to-be-Done Growth Strategy Matrix" published on Medium (https://jobs-to-be-done.com/the-jobs-to-be-done-growth-strategy-matrix-426e3d5ff86e ), Tony Ulwick (Founder of the innovation consulting firm Strategyn, pioneer of Jobs-to-be-Done Theory, creator of Outcome-Driven Innovation), introduces a new growth strategy framework called "The Jobs-to-be-Done Growth Strategy Matrix".
His Matrix is based on the "Job-to-be-Done (JTBD)" framework. The Jobs-to-be-Done (JTBD) framework was first introduced by Professor Clayton Christensen (Harvard Business School - https://hbr.org/2016/09/know-your-customers-jobs-to-be-done ), and his colleagues in the late 1990s as a way to understand why people buy and use products. The JTBD concept was introduced in the book "The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail," (1997, Harvard Business Review HBR Press - https://www.hbs.edu/faculty/Pages/item.aspx?num=46 ). While the JTBD concept was not the main focus of the book, it was an important component of the framework that Christensen used to explain why some successful companies fail to innovate and adapt to changing market conditions. The esssence of the Theory asserts that people do not buy products or services, but they choose them to do a specific job or to accomplish a specific task.
The JTBD framework gained wider recognition in the early 2000s when Anthony (Tony) Ulwick (a former student of Christensen's) expanded on the concept and created the "Outcome-Driven Innovation process". This process aims to help companies identify and solve customers' unmet needs by focusing on the job that customers are trying to get done, rather than on the product itself.
Since then, the JTBD framework has been widely adopted in product development, marketing, and innovation circles. It has become a key approach for companies seeking to create products that meet their customers' needs more effectively and efficiently. Today, the JTBD theory is considered a fundamental approach to understanding customer needs and driving innovation.
Expanding on the "Outcome-Driven Innovation process" and JTBD, Ulwick formalised the "JTBD Growth Strategy Matrix". It's objective is to help organizations understand and prioritize customer needs by focusing on the "job" that customers are trying to do when they use a product or service. This framework is useful for identifying growth opportunities and developing strategies for meeting customer needs and driving business growth.
The matrix is a 2x2 matrix, with 2 axis:
- X-Axis: Charge ... More or Less
- Y-Axis: Get-Job-Done ... Better or Worse
This leads to 4 potential strategies according to Ulwick:
- ✌️ Differentiated Strategy (Charge More, Get job done better): This strategy involves developing products or services that are unique and differentiated from those offered by competitors. By offering a unique solution to customer needs, organizations can gain a competitive advantage and attract customers who value the differentiation. Examples: Nest's thermostat, Nespresso's coffee and espresso machines, and Apple's iPhone 2G.
- 💪 Dominant Strategy (Charge Less, Get job done better): This is the most effective strategy for a particular customer job and is the one that organizations should focus on in order to drive business growth. A dominant strategy may be different for each customer job, and organizations should identify the dominant strategy for each customer segment in order to prioritize their efforts. Examples: Google Search, UberX, and Netflix's streaming video.
- 🤘 Discrete Strategy (Charge More, Get job done worse): This strategy involves developing products or services that are specifically designed to address a particular customer job. This may involve developing products that are optimized for a specific customer segment, or creating a solution that is tailored to meet the needs of a specific job. Examples: drinks sold in airports past security checkpoints, stadium concessions at sporting events, and check-cashing and payday-lending services.
- 👊 Disruptive Strategy (Charge Less, Get job done worse): This strategy involves introducing new products or services that disrupt established markets and change the way customers perform a job. Disruptive strategies are often characterized by innovation and are used to challenge established players and create new growth opportunities. Examples: Google Docs, TurboTax, and Dollar Shave Club's razor offering.
- 👌 Sustaining Strategy (in the center - charge and get job done "as usual"): This strategy involves improving existing products or services in order to maintain their competitive position in the market. Sustaining strategies are often focused on incremental improvements to existing products and services and are used to maintain customer satisfaction and retain market share. Most products and services usually fall into this category.
Each of these concepts can play a role in the JTBD Growth Strategy Matrix and can help organizations identify the most effective strategies for meeting customer needs and driving business growth. By focusing on the dominant strategy for each customer job, organizations can prioritize their efforts and focus on the areas that will have the greatest impact on customer satisfaction and business growth.
Conclusions made by Ulwick on the matrix:
When it comes to product performance and price, there are different customer segments that are willing to pay more or less depending on their needs and preferences, leading to 5 conclusions:
1. A better-performing, more expensive product is likely to appeal to underserved customers who are looking for a solution to unmet needs and are willing to pay a premium for a better job done.
2. In contrast, a better-performing, less expensive product is naturally likely to appeal to the greatest wider range of customers who value both performance and affordability, that is to say ALL customers.
3. A worse-performing, less expensive product is likely to appeal to overserved customers who have no unmet needs and are looking for a more cost-effective solution. It may also appeal to nonconsumers who are not currently using any products in the market due to affordability issues
4. On the other hand, a worse-performing, more expensive product is likely to appeal to customers who have limited or no alternatives available, such as in unique or atypical situations.
5. Some products/ services may be "stuck in the middle" (as coined by Porter in his famous "Porter's Generic Strategies Matrix" available seperately here: https://www.eloquens.com/tool/nN2XTgVl/strategy/competitive-advantage-strategies/porter-s-generic-strategies-matrix-template ) and only provide a slight improvement in performance or cost compared to existing solutions. Such products may struggle to attract new customers but can help incumbent companies retain their existing customer base. This approach is not ideal for new market entrants but may be suitable for established companies looking to maintain their market share.
Additional reading on Ulwick's JTBD Growth Strategy Matrix:
- Strategyn's papter on the JTBD Framwework: https://strategyn.com/wp-content/uploads/2019/11/The-Jobs-to-be-Done-Growth-Strategy-Matrix-Strategyn-1.pdf
- Ravi Kumar's take on the framework:https://medium.com/yoursproductly/46-what-did-i-learn-about-jtbd-growth-strategy-matrix-from-tony-ulwick-part-1-c2a6f12c576d
- Explanatory video by Strategyn's (35 minutes):https://www.youtube.com/watch?v=6fk_YIDckNo
- - - - -
Given my usual curiosity on Strategy Frameworks, I took on the challenge to make a hands-on PowerPoint version of Ulwick's JTBD Growth Strategy Matrix for business leaders to use "on-the-job" very easily, or for strategy consultants to use to suggest new strategic moves for their client companies.
The file is 2 editable Microsoft PowerPoint Template Slides
- 1 version at "Market Level" to study the position of various companies who essentially provide 1 product/ service
- 1 version at "Product/ Service Portfolio" level, for a given business leader to analyse the strategic moves that can be made to maximise growth potential.
The Best Practice also has an online or offline 14 step-by-step methodology, with pedagogical illustrations for each step. An editable Excel file to adapt the data points for each company or product/service is included behind each PowerPoint files.
Should you have any questions on using this top tier Management/Strategy Consulting Framework Template slide, you're welcome to reach out to me via Private Message.
Good luck !
- Tim
⭐️ Bundle of 6 Pricing Strategy Framework Templates (including this one): https://www.eloquens.com/tool/rmzLSr1k/tim-demoures/pricing-strategy-frameworks-bundle
⭐️ Bundle of 16 Four-Quadrant (2x2) Matrix Framework Templates (including this one): https://www.eloquens.com/tool/wJa7FKkP/strategy/management-consulting-templates-and-frameworks/four-quadrant-matrix-frameworks-template-bundle
This Best Practice includes
2 PowerPoint Slide Models + Underlying Excel Model + Associated Online and Offline Methodology
