Functional Job is a fundamental concept in the Jobs to be Done (JTBD) framework that defines the core, practical goal a customer is trying to accomplish, independent of any specific product or solution. Understanding functional jobs is essential for portfolio companies to accurately define markets, identify innovation opportunities, and develop products that create superior customer value.

Definition and Importance

A functional job is the primary, practical task or goal that customers are trying to accomplish—the fundamental reason they seek out and "hire" products or services. Functional jobs define what customers are ultimately trying to achieve, regardless of what specific solutions they currently use.

Functional jobs are defined using an action verb and an object that describe a customer goal independent of any products. For example:

• "Get to destinations on time"
• "Acquire new customers"
• "Restore blood flow"
• "Enable secure data use"
• "Share memories"
• "Create a mood with music"

Understanding functional jobs is critical because:

1. They define markets in a way that remains stable even as products and technologies change
   
   
2. They provide a consistent innovation target that doesn't shift with evolving technologies or competitor actions
   
   
3. They reveal the fundamental sources of customer demand, beyond superficial product preferences
   
   
4. They highlight competitive threats that might be missed in traditional product-category frameworks
   
   
5. They align product, marketing, and sales teams around a shared understanding of customer goals
   
   

Functional Jobs vs. Product Categories

Traditional market definitions often revolve around product categories, which can lead to serious strategic errors. Comparing functional jobs with product-based market definitions highlights the advantages of the JTBD approach:

Product Category Limitations

• Change constantly as technologies evolve
• Miss competitive threats from different product types
• Focus on features rather than customer goals
• Lead to false distinctions between similar customer needs
• Result in "better horse" thinking rather than true innovation

Functional Job Advantages

• Remain stable over long periods (decades or centuries)
• Include all potential solutions regardless of technology
• Focus on customer goals rather than product attributes
• Reveal connections between seemingly different markets
• Encourage true innovation focused on better job execution

This distinction explains why companies like Kodak (focused on the "film" product category rather than the "share memories" functional job) missed massive market shifts and eventually failed.

The Characteristics of Well-Defined Functional Jobs

Not all job statements are equally effective at guiding innovation and strategy. Well-defined functional jobs share several key characteristics:

1. Solution Independence

Functional jobs must be completely independent of any product, service, or solution. They describe what customers are trying to accomplish, not how they currently do it.

For example, "use a spreadsheet to analyze data" is not a functional job because it references a specific solution (spreadsheets). The functional job is "analyze data to make decisions."

2. Stability Over Time

Functional jobs remain constant even as technologies and solutions change dramatically. The job of "creating a mood with music" has remained the same whether accomplished through live musicians, vinyl records, cassettes, CDs, MP3s, or streaming services.

3. Appropriate Scope

Functional jobs should be defined at the right level of granularity—broad enough to encompass meaningful market opportunities but specific enough to guide innovation efforts.

For example, "communicate" is too broad to be actionable, while "send emails" is too narrow and solution-specific. The appropriate functional job might be "share information with colleagues."

4. Customer-Centric Language

Functional jobs should be expressed in customer language rather than industry or technical terminology. They should reflect how customers think about their goals, not how companies think about their products.

5. Measurable Success Criteria

Well-defined functional jobs have implicit success criteria—customers can determine whether the job has been completed successfully, which provides the foundation for identifying needs within the job.

Identifying Functional Jobs

Accurately identifying functional jobs requires rigorous research and analysis. The thrv methodology includes several approaches to ensure that portfolio companies correctly identify the functional jobs in their markets:

1. Customer Interviews

In-depth interviews with job beneficiaries explore:

• What goals are customers ultimately trying to achieve?
• What outcomes would represent success for them?
• What language do they use to describe their goals?
• How have they approached these goals historically?

2. Solution Evolution Analysis

Analyzing how solutions have evolved over time reveals the underlying functional jobs:

• What consistent customer goal has persisted despite changing technologies?
• What new solutions have displaced older ones, and why?
• What common purpose do seemingly different solutions serve?

3. Circumstance Analysis

Understanding the circumstances that trigger job execution helps clarify the functional job:

• When do customers realize they need to accomplish this goal?
• What situations or events precipitate this need?
• What constraints or requirements define the execution context?

4. Alternative Solution Analysis

Examining all the different ways customers currently accomplish their goals helps define the true functional job:

• What different approaches do customers take to achieve the same outcome?
• What do these diverse approaches have in common?
• What workarounds do customers employ when standard solutions fail?

5. "Why" Questioning

A series of "why" questions helps uncover the fundamental job behind superficial product preferences:

• Why do customers use this product?
• Why is that outcome important to them?
• Why would that result matter in their life or business?

This process typically reveals the functional job that drives customer behavior.

Functional Jobs and Market Definition

One of the most powerful applications of functional jobs is in defining markets more accurately:

Traditional Market Definitions

Traditional approaches define markets based on product categories, technologies, or industries. For example:

• The "encyclopedia market"
• The "mobile device market"
• The "film photography market"

These definitions create artificial boundaries that often miss important competitive threats and growth opportunities.

Functional Job Market Definitions

The JTBD approach defines markets based on the functional jobs customers are trying to get done:

• The "find information" market (vs. the encyclopedia market)
• The "get jobs done while mobile" market (vs. the mobile device market)
• The "share memories" market (vs. the film photography market)

These definitions provide a more accurate and stable view of competitive dynamics and market opportunities.

Strategic Implications of Job-Based Market Definition

Defining markets based on functional jobs has several important strategic implications:

1. Expanded Competitive Analysis: Companies must consider all solutions that help customers get the job done, not just those that look like their products
   
   
2. Broader Innovation Opportunity: Looking beyond current product categories opens up new approaches to helping customers get jobs done
   
   
3. Longer-Term Strategic Planning: The stability of functional jobs enables more reliable long-term strategy development
   
   
4. More Accurate Market Sizing: Job-based market definitions lead to more accurate assessments of total market opportunity
   
   

For example, when Netflix initially defined their market as "rent movies" (a product-centric view), they focused on competing with Blockbuster. When they redefined their market as "create entertainment experiences" (a functional job view), they recognized the opportunity to produce original content and compete with traditional studios.

Types of Functional Jobs

Functional jobs can be categorized in several ways that help portfolio companies understand market dynamics:

Personal vs. Professional Jobs

• Personal Functional Jobs: Goals individuals pursue in their personal lives (e.g., "stay healthy," "maintain relationships," "manage finances")
• Professional Functional Jobs: Goals individuals pursue in their work roles (e.g., "acquire customers," "manage projects," "analyze data")

Understanding this distinction helps companies develop appropriate value propositions and go-to-market strategies for different contexts.

Simple vs. Complex Jobs

• Simple Functional Jobs: Straightforward goals with few steps or variables (e.g., "tell time," "capture an image")
• Complex Functional Jobs: Multi-faceted goals with many steps and variables (e.g., "manage a supply chain," "develop a new product")

This distinction affects product complexity, pricing potential, and competitive dynamics.

Frequent vs. Infrequent Jobs

• Frequent Functional Jobs: Goals that customers pursue regularly or continuously (e.g., "communicate with colleagues," "manage daily tasks")
• Infrequent Functional Jobs: Goals that arise only occasionally or in specific circumstances (e.g., "purchase a home," "respond to a medical emergency")

Job frequency influences customer expertise, willingness to invest in solutions, and customer relationship dynamics.

Core vs. Adjacent Jobs

• Core Functional Jobs: Primary goals that directly define a market (e.g., "process payments" for a payment processor)
• Adjacent Functional Jobs: Related goals that represent expansion opportunities (e.g., "prevent fraud" for a payment processor)

Understanding this relationship helps companies identify logical growth directions.

Functional Jobs vs. Other Job Types

Functional jobs are one of several types of jobs in the JTBD framework. Understanding how functional jobs relate to other job types is crucial for comprehensive customer understanding:

Functional Jobs

The practical goals customers are trying to accomplish—what they want to get done.

Emotional Jobs

How customers want to feel (or avoid feeling) when getting the functional job done. For example, while getting to a destination on time (functional job), customers want to feel confident and relaxed rather than anxious (emotional job).

Social Jobs

How customers want to be perceived by others when doing the functional job. For example, while sharing memories (functional job), customers might want to be perceived as caring or creative (social job).

Consumption Jobs

The tasks related to buying, learning, setting up, maintaining, and using specific solutions for the functional job. For example, while the functional job might be "analyze data," consumption jobs include "learn to use the software" and "maintain the system."

While all these job types are important, functional jobs serve as the foundation for market definition and primary innovation targets. The other job types provide additional layers of understanding that help refine product design, user experience, and marketing approaches.

Functional Jobs and the Need Hierarchy

Functional jobs serve as the top level of a hierarchical structure that helps portfolio companies understand customer behavior in detail:

1. Functional Jobs: The overarching goals customers are trying to achieve (e.g., "get to destinations on time")
   
   
2. Job Steps: The discrete phases or activities customers must complete to execute the job (e.g., "estimate departure time," "plan stops," "travel to destination")
   
   
3. Customer Needs: The specific metrics customers use to evaluate success within each job step (e.g., "determine the optimal sequence to make planned stops")
   
   

This hierarchical structure provides a comprehensive framework for understanding customer behavior at different levels of granularity:

• Functional jobs define markets and broad opportunity spaces
• Job steps identify specific phases where innovation can create value
• Customer needs pinpoint exact metrics that product features should improve

By understanding this complete hierarchy, portfolio companies can develop comprehensive strategies that address both the big picture (which jobs to target) and the specific details (which features to build).

Functional Jobs and Product Strategy

Understanding functional jobs transforms how portfolio companies develop their product strategies:

1. Platform Decisions

Functional jobs help companies make more accurate platform decisions by revealing the fundamental customer goals beyond current technologies. This prevents attachment to declining platforms and enables quicker transitions to emerging ones.

For example, Blockbuster remained committed to the physical retail platform because they defined their market as "rent movies," while Netflix recognized that their functional job was "create entertainment experiences," allowing them to transition from DVDs to streaming.

2. Feature Prioritization

Functional jobs provide the foundation for identifying and prioritizing the most valuable features based on which job steps and needs are most underserved.

Rather than adding features based on competitive parity or internal preferences, companies can focus on improvements that help customers get their functional job done better.

3. Expansion Opportunities

By understanding the functional job, companies can identify adjacent opportunities that naturally extend their value proposition.

For example, a company helping customers "manage personal finances" might expand from budgeting tools to investment guidance, debt management, and tax optimization—all logical extensions of the core functional job.

4. Partnership Decisions

Functional jobs reveal potential partners who address different aspects of the same job, creating opportunities for integrated solutions that deliver more complete value.

For example, a company helping customers "plan travel experiences" might partner with accommodation providers, transportation services, and activity vendors to create a more comprehensive solution.

5. Competitive Differentiation

By focusing on underserved aspects of the functional job, companies can create meaningful differentiation even in crowded markets.

Rather than competing on all fronts, they can specialize in specific job steps or needs where current solutions fall short, creating a distinctive value proposition.

Functional Jobs in thrv's Methodology

In thrv's proprietary Jobs to be Done methodology, functional jobs serve as the foundation for creating growth strategies for portfolio companies:

1. Job Mapping

The thrv platform includes tools for mapping functional jobs, ensuring they are correctly defined to capture true market opportunities.

2. Job Evolution Analysis

The methodology analyzes how solutions for functional jobs have evolved over time, revealing patterns that help predict future market directions.

3. Job-Based Market Sizing

thrv helps portfolio companies size markets based on functional jobs rather than product categories, providing more accurate assessments of opportunity.

4. Multi-Job Strategy Development

The methodology helps companies understand relationships between different functional jobs, identifying synergies and expansion opportunities.

5. Job-Based Competitive Analysis

thrv's approach maps competitors based on which aspects of the functional job they address, revealing both threats and opportunities that traditional competitive analysis might miss.

This comprehensive approach ensures that portfolio companies build their strategies on a solid foundation of customer-centric functional jobs rather than transient product categories.

The Strategic Value of Functional Job Analysis

For portfolio companies, a deep understanding of functional jobs delivers several strategic benefits:

1. More Accurate Market Definition

By focusing on stable customer goals rather than changing product categories, companies gain a more accurate view of their true market.

2. Earlier Identification of Competitive Threats

Functional job analysis reveals potential competitors from adjacent categories before they become obvious threats.

3. More Innovative Solution Development

Breaking free from product-category thinking enables more creative approaches to helping customers get jobs done.

4. More Effective Marketing Communication

Messaging based on functional jobs connects more directly with customer goals and motivations than product-feature messaging.

5. More Sustainable Strategic Position

Building strategy around functional jobs creates a more stable foundation than focusing on specific technologies or product features.

Conclusion

Functional jobs represent the foundation of the Jobs to be Done framework, providing a stable, customer-centric definition of markets and innovation opportunities. By defining the practical goals customers are trying to accomplish independent of any specific solution, functional jobs offer portfolio companies a powerful lens for understanding customer behavior, identifying market opportunities, and developing products that create superior value.

The thrv methodology provides portfolio companies with sophisticated tools for identifying and analyzing functional jobs in their markets. This functional job-based approach leads to more accurate market definition, better competitive positioning, more innovative product development, and ultimately accelerated growth and enhanced equity value.

By understanding the functional jobs their customers are trying to accomplish—rather than just the products they currently buy—portfolio companies can develop more effective strategies that create sustainable competitive advantage and long-term equity value.