Ronan read Competing Against Luck - so you didn't have to...
Fast Facts
Week: 2
Title : Competing Against Luck
Author: Clayton M. Christensen, Taddy Hall, Karen Dillon, David S. Duncan
Rating: 7.5/10
Adapted from Ronan's LinkedIn newsletter 21/02/2024 -
Books I've Read For You
Summary
This is one of the rare business books that you need to read cover to cover to truly understand it.
There is a highly well-defined theory and construct they’ve created which unlike many other business books can’t be grasped with only a few key takeaways.
One Key Takeaway or Insight
Customer Satisfaction
Most businesses are not measuring whether they are improving their customer's lives.
Video version of Book Review
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Introduction
Competing Against Luck, a very influential book written by Clayton M. Christensen, Tadd Hall, Karen Dillon, and David S., offers a new conceptual framework for products and its application to successful innovation and development. The authors argue that traditional methods of understanding customer choices and competition are flawed, and they propose a new approach centered around understanding the "job" that customers are trying to accomplish. By identifying the fundamental reasons why customers "hire" a product or service, businesses can better position themselves that customers will pay at premium prices but also meet their needs and outperform the competition.
The book explores practical strategies for implementing this new concept, providing insights into how companies can create innovative products and further develop it to align with customer preferences. It also explores how companies can redefine their competition and create new opportunities in the market. Competing Against Luck offers a fresh perspective on customer behavior and offers practical tools and strategies for businesses to succeed in today's competitive landscape.
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This book contains a construct you’ve likely not heard before.
JTBD Theory - Jobs To Be Done
Clayton’s most famous example of the JTBD framework is his milkshake case study. (Google it to better understand the context of the rest of this review)
This book puts a fresh perspective on understanding why customers choose your product or service. It’s completely different than the traditional customer persona, ideal avatar or target market.
Instead, it goes deeper to attempt to help you uncover the emotional trigger of buyers.
It’s easy for competitors to copy products and services but difficult for them to copy experiences that are well integrated into your company’s processes.
Customer satisfaction metrics don’t give any clues as to how to do the job better.
Customers don’t buy products or services, they pull them into their lives to make progress. This progress is the “job” they are trying to get done and the metaphor is to “hire” products or services to solve these problems.
Consumers social and emotional needs can far outweigh any functional desires in the decision-making process.
Innovation Ideas
Whenever you see a compensating behaviour, pay very close attention, it’s a clue to an innovation opportunity waiting to be seized. But you won’t see these anomalies if you are not fully immersed in the context of their struggles.
What has to get “fired” for my product to be “hired”?
It’s seldom the most obvious.
In the moment of the choice to buy two opposing forces are battling for dominance. Positive and Negative.
Each of these also has two forces.
The two positive forces compelling change: The push of frustration and annoyance. The pull of exciting new products or services.
The two negative forces opposing change: “Habits of the present” - how I’m used to doing things. Anxiety. What if it’s not better?
Unlike resources, which are easily measured, processes can’t be seen on a balance sheet.
Companies often lose focus on the “job” that brought them success in the first place or worse, confuse customers so they “hire” the wrong products for the wrong job.
Summary
Competing Against Luck: The Story of Innovation and Customer Choice" is a thought-provoking business book written by Clayton Christensen, Taddy Hall, Karen Dillon, and David S. Duncan is one of the rare business books that you need to read cover to cover to truly understand it. There is a highly well-defined theory and construct they’ve created which unlike many other business books can’t be grasped with only a few key takeaways.