Clayton gets it right

Clayton_Christensen_World_Economic_Forum_2013In this interview, Clayton Christensen spells out some ideas which are so right that they almost have the force of Laws for Business.

Clayton Christensen is the godfather of innovation. His books define how people think about innovation, education and disruption (and more recently, values).  Strategy + Business, the management journal from Booz and Co., published a great interview with him here.

In it, he says two things that ring so true that I think they deserve to become laws of business, especially when looked at through a customer lens.

The first concerns decision-making:

“When you make a decision based on expediency—because you think you can get away with paying only a smaller, marginal cost—you always pay the full cost in the end.”

He’s talking here about our personal lives, but it applies in spades in the customer world.  The contact centre which drives agents to keep calls as short as possible for cost purposes almost always pays a higher eventual cost in terms of customers calling again, customer dissatisfaction, agent retention and customer churn.  The website which skimps on early customer testing during the design phase will almost certainly have to spend a fortune in redesign once it goes live and customers don’t like it.

So, if I may, Christensen’s First Law:

If you skimp on things early, you pay much more later. Every time.

The second quote is more substantial, but even more fundamental:

“You might also ask, “What is the job to be done?” Every company needs a robust theory of the job that it’s facing. At the fundamental level, most jobs don’t change very much, even though the technology does. When he was the emperor of Rome, Julius Caesar had to exchange messages rapidly with his far-flung governors. He used horsemen with chariots. Today, we have FedEx, but the job hasn’t changed. If you’re focused on the job that has to be done, you’ll be more likely to catch the next technology that does it better. If you frame your business by product or technology, you won’t see the next disruptor when it comes along.”

Who is doing “the job?” The customer.

And so to Christensen’s Second Law:

Focus on the job to be done or you’ll be beaten by someone who does. 

It’s a short interview, but full of good things.  Read and enjoy.

(Tip of hat to Petrina Alexander, who first drew my attention to the article).

(Image credit: Remy Steinegger, World Economic Forum under Creative Commons License)

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