Clayton Christensen Quotes

It's easier to hold your principles 100 percent of the time than it is to hold them 98 percent of the time.

Decide what you stand for. And then stand for it all the time.

The only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it. —Steve Jobs

Intimate, loving, and enduring relationships with our family and close friends will be among the sources of the deepest joy in our lives.

If you defer investing your time and energy until you see that you need to, chances are it will already be too late.

I had thought the destination was what was important, but it turned out it was the journey.

Because if the decisions you make about where you invest your blood, sweat, and tears are not consistent with the person you aspire to be, you’ll never become that person.

Justification for infidelity and dishonesty in all their manifestations lies in the marginal cost economics of “just this once.

In order to really find happiness, you need to continue looking for opportunities that you believe are meaningful, in which you will be able to learn new things, to succeed, and be given more and more responsibility to shoulder.

In your life, there are going to be constant demands for your time and attention. How are you going to decide which of those demands gets resources? The trap many people fall into is to allocate their time to whoever screams loudest, and their talent to whatever offers them the fastest reward. That’s a dangerous way to build a strategy.

You can talk all you want about having a clear purpose and strategy for your life, but ultimately this means nothing if you are not investing the resources you have in a way that is consistent with your strategy. In the end, a strategy is nothing but good intentions unless it's effectively implemented.

the only metrics that will truly matter to my life are the individuals whom I have been able to help, one by one, to become better people.

Motivation is the catalyzing ingredient for every successful innovation. The same is true for learning.

Disruptive technologies typically enable new markets to emerge.

Resources are what he uses to do it, processes are how he does it, and priorities are why he does it.

There are more than 9,000 billing codes for individual procedures and units of care. But there is not a single billing code for patient adherence or improvement, or for helping patients stay well.

I used to think that if you cared for other people, you need to study sociology or something like it. But….I [have] concluded, if you want to help other people, be a manager. If done well, management is among the most noble of professions. You are in a position where you have eight or ten hours every day from every person who works for you. You have the opportunity to frame each person’s work so that, at the end of every day, your employees will go home feeling like Diana felt on her good day: living a life filled with motivators.

In fact, how you allocate your own resources can make your life turn out to be exactly as you hope or very different from what you intend.

The hot water that softens a carrot will harden an egg.

disruptive technology should be framed as a marketing challenge, not a technological one.

the only way to do great work is to love what you do.

In our lives and in our careers, whether we are aware of it or not, we are constantly navigating a path by deciding between our deliberate strategies and the unanticipated alternatives that emerge.

People don’t want to buy a quarter-inch drill. They want a quarter-inch hole.

you perfect results. What I can promise you is that you won’t get it right if you don’t commit to keep trying.

Indeed, while experiences and information can be good teachers, there are many times in life where we simply cannot afford to learn on the job. You don’t want to have to go through multiple marriages to learn how to be a good spouse. Or wait until your last child has grown to master parenthood. This is why theory can be so valuable: it can explain

Three classes of factors affect what an organization can and cannot do: its resources, its processes, and its values.

the best way to get a good idea is to get a lot of ideas.

New products succeed not because of the features and functionality they offer but because of the experiences they enable. If

None of that data, however, actually tells you why customers make the choices that they do.

With every moment of your time, every decision about how you spend your energy and your money, you are making a statement about what really matters to you.

Culture is a way of working together toward common goals that have been followed so frequently and so successfully that people don’t even think about trying to do things another way. If a culture has formed, people will autonomously do what they need to do to be successful.

To succeed consistently, good managers need to be skilled not just in choosing, training, and motivating the right people for the right job, but in choosing, building, and preparing the right organization for the job as well.

successful companies don’t succeed because they have the right strategy at the beginning; but rather, because they have money left over after the original strategy fails, so that they can pivot and try another approach. Most of those that fail, in contrast, spend all their money on their original strategy—which is usually wrong. The

One quarter of Medicare beneficiaries have five or more chronic conditions, sees an average of 13 physicians each year, and fills 50 prescriptions per year.

Goethe: “Treat people as if they were what they ought to be and you help them to become what they are capable of being.

I don't view it as mystic. I believe that God is our father. He created us. He is powerful because he knows everything. Therefore everything I learn that is true makes me more like my father in heaven. When science seems to contradict religion, then one, the other, or both are wrong, or incomplete. Truth is not incompatible with itself. When I benefit from science it's actually not correct for me to say it resulted from science and not from God. They work in concert.

The techniques that worked so extraordinarily well when applied to sustaining technologies, however, clearly failed badly when applied to markets or applications that did not yet exist.

In contrast, investing time and energy in your relationship with your spouse and children typically doesn’t offer that same immediate sense of achievement. Kids misbehave every day. It’s really not until 20 years down the road that you can put your hands on your hips and say, “I raised a good son or a good daughter.” You can neglect your relationship with your spouse, and on a day-to-day basis, it doesn’t seem as if things are deteriorating. People who are driven to excel have this unconscious propensity to underinvest in their families and overinvest in their careers—even though intimate and loving relationships with their families are the most powerful and enduring source of happiness.

When I have my interview with God, our conversation will focus on the individuals whose self-esteem I was able to strengthen, whose faith I was able to reinforce, and whose discomfort I was able to assuage—a doer of good, regardless of what assignment I had. These are the metrics that matter in measuring my life.

People often think that the best way to predict the future is by collecting as much data as possible before making a decision. But this is like driving a car looking only at the rearview mirror—because data is only available about the past.

First, disruptive products are simpler and cheaper; they generally promise lower margins, not greater profits. Second, disruptive technologies typically are first commercialized in emerging or insignificant markets. And third, leading firms’ most profitable customers generally don’t want, and indeed initially can’t use, products based on disruptive technologies.

This may sound counterintuitive, but I deeply believe that the path to happiness in a relationship is not just about finding someone who you think is going to make you happy. Rather, the reverse is equally true: the path to happiness is about finding someone who you want to make happy, someone whose happiness is worth devoting yourself to.

The reason is that good management itself was the root cause. Managers played the game the way it was supposed to be played. The very decision-making and resource-allocation processes that are key to the success of established companies are the very processes that reject disruptive technologies: listening carefully to customers; tracking competitors’ actions carefully; and investing resources to design and build higher-performance, higher-quality products that will yield greater profit. These are the reasons why great firms stumbled or failed when confronted with disruptive technological change.

Getting something wrong doesn’t mean you have failed. Instead, you have just learned what does not work. You now know to try something else.

Competitiveness is far more about doing what customers value than doing what you think you’re good at. And

This is one of the innovator’s dilemmas: Blindly following the maxim that good managers should keep close to their customers can sometimes be a fatal mistake.

As Henry Ford once put it, “If you need a machine and don’t buy it, then you will ultimately find that you have paid for it and don’t have it.

When commercializing disruptive technologies, they found or developed new markets that valued the attributes of the disruptive products, rather than search for a technological breakthrough so that the disruptive product could compete as a sustaining technology in mainstream markets.

In order to really find happiness, you need to continue looking for opportunities that you believe are meaningful, in which you will be able to learn new things, to succeed, and be given more and more responsibility to shoulder. There’s an old saying: find a job that you love and you’ll never work a day in your life.

Research suggests that in over 90 percent of all successful new businesses, historically, the strategy that the founders had deliberately decided to pursue was not the strategy that ultimately led to the business’s success.

resisting the temptation whose logic was “In this extenuating circumstance, just this once, it’s OK” has proven to be one of the most important decisions of my life. Why? My life has been one unending stream of extenuating circumstances. Had I crossed the line that one time, I would have done it over and over in the years that followed. The lesson I learned from this is that it’s easier to hold to your principles 100% of the time than it is to hold to them 98% of the time. If you give in to “just this once,” based on a marginal cost analysis, as some of my former classmates have done, you’ll regret where you end up. You’ve got to define for yourself what you stand for and draw the line in a safe place.

recent IBM poll of fifteen hundred CEOs identified creativity as the number-one “leadership competency” of the future.

Sound managerial decisions are at the very root of their impending fall from industry leadership.

Necessity remains the mother of invention.

Watching how customers actually use a product provides much more reliable information than can be gleaned from a verbal interview or a focus group.

But if anyone believes that he is working harder but is being paid less than another person, it would be like transplanting cancer into this company.

In sacrificing for something worthwhile, you deeply strengthen your commitment to it.

…I came to understand that while many of us might default to measuring our lives by summary statistics, such as number of people presided over, number of awards, or dollars accumulated in a bank, and so on, the only metrics that will truly matter to my life are the individuals whom I have been able to help, one by one, to become better people.

With few exceptions, the only instances in which mainstream firms have successfully established a timely position in a disruptive technology were those in which the firms’ managers set up an autonomous organization charged with building a new and independent business around the disruptive technology.

As you go through your career, you will begin to find the areas of work you love and in which you will shine; you will, hopefully, find a field where you can maximize the motivators and satisfy the hygiene factors. But it’s rarely a case of sitting in an ivory tower and thinking through the problem until the answer pops into your head. Strategy almost always emerges from a combination of deliberate and unanticipated opportunities. What’s important is to get out there and try stuff until you learn where your talents, interests, and priorities begin to pay off. When you find out what really works for you, then it’s time to flip from an emergent strategy to a deliberate one.

They must be plans for learning rather than plans for implementation.

We adhere to the saying, “if it ain’t broke, don’t fix it,” while not really questioning whether “it” is “broke.

cost reductions meant survival, but not profitability,

what’s most important to you in your career? The problem is that what we think matters most in our jobs often does not align with what will really make us happy.

Disruption is, at its core, a really powerful idea.

For innovators, understanding the job is to understand what consumers care most about in that moment of trying to make progress.

Data is always an abstraction of reality based on underlying assumptions as to how to categorize the unstructured phenomena of the real world.

These are what Herzberg’s research calls motivators. Motivation factors include challenging work, recognition, responsibility, and personal growth.

If you can’t describe what you are doing as a process, then you don’t know what you are doing.

Decide what you stand for. And then stand for it all the time.   When

One of the best ways to probe whether you can trust the advice that a theory is offering you is to look for anomalies—something that the theory cannot explain.

What are the assumptions that have to prove true in order for me to be able to succeed in this assignment?

definition of infrastructure as the most efficient mechanism through which a society stores or distributes value.

It turns out that for most people who have chronic diseases with deferred consequences, "improve my financial health" is a much more pervasively experienced job than "maintain my physical health.

An organization’s capabilities reside in two places. The first is in its processes—the methods by which people have learned to transform inputs of labor, energy, materials, information, cash, and technology into outputs of higher value. The second is in the organization’s values, which are the criteria that managers and employees in the organization use when making prioritization decisions.

Disruptive innovations, in contrast, don’t attempt to bring better products to established customers in existing markets. Rather, they disrupt and redefine that trajectory by introducing products and services that are not as good as currently available products. But disruptive technologies offer other benefits—typically, they are simpler, more convenient, and less expensive products that appeal to new or less-demanding customers.3

Does that mean that we should never hire or promote an inexperienced manager who had not already learned to do what needs to be done in this assignment? The answer: it depends. In a start-up company where there are no processes in place to get things done, then everything that is done must be done by individual people–resources. In this circumstance, it would be risky to draft someone with no experience to do the job–because in the absence of processes that can guide people, experienced people need to lead. But in established companies where much of the guidance to employees is provided by processes, and is less dependent upon managers with detailed, hands-on experience, then it makes sense to hire or promote someone who needs to learn from experience.

[Clayton] Christensen had seen dozens of companies falter by going for immediate payoffs rather than long-term growth, and he saw people do the same thing. In three hours at work, you could get something substantial accomplished, and if you failed to accomplish it you felt the pain right away. If you spent three hours at home with your family, it felt like you hadn't done a thing, and if you skipped it nothing happened. So you spent more and more time at the office, on high-margin, quick-yield tasks, and you even believed that you were staying away from home for the sake of your family. He had seen many people tell themselves that they could divide their lives into stages, spending the first part pushing forward their careers, and imagining that at some future point they would spend time with their families--only to find that by then their families were gone.

Strategy almost always emerges from a combination of deliberate and unanticipated opportunities. What’s important is to get out there and try stuff until you learn where your talents, interests, and priorities begin to pay off.

People who truly love what they do and who think their work is meaningful have a distinct advantage when they arrive at work every day. They throw their best effort into their jobs, and it makes them very good at what they do. This,

Many blessings and friendships have come into our lives from our trying to share the gospel. But this blessing has been one of the best: Having the missionaries regularly help us as a family teach the gospel to new and old friends through the power of the Holy Ghost has profoundly affected the faith of our five children and brought the Spirit of God into our home.

The key point here is that large companies typically fail at disruptive innovation because the top management team is dominated by individuals who have been selected for delivery skills, not discovery skills. As a result, most executives at large organizations don’t know how to think different. It isn’t something that they learn within their company, and it certainly isn’t something they are taught in business school. Business schools teach people how to be deliverers, not discoverers.

Focus is scary—until you realize that it only means turning your back on markets you could never have anyway. Sharp focus on jobs that customers are trying to get done holds the promise of greatly improving the odds of success in new-product development.

The key to getting hired is to understand the narrative of the customer’s life in such rich detail that you are able to design a solution that far exceeds anything the customer themselves could have found words to request. In hindsight, breakthrough insights might seem obvious, but they rarely are. In fact, they’re fundamentally contrarian: you see something that others have missed.

On one side of the equation, there are the elements of work that, if not done right, will cause us to be dissatisfied. These are called hygiene factors. Hygiene factors are things like status, compensation, job security, work conditions, company policies, and supervisory practices.

When I have my interview with my God, our conversation will focus on the individuals whose self-esteem I was able to strengthen, whose faith I was able to reinforce, and whose discomfort I was able to assuage—a doer of good, regardless of what assignment I had. These are the metrics of that matter in measuring my life. This realization, which occurred nearly fifteen years ago, guided me every day to seek opportunities to help people in ways tailored to their individual circumstances. My happiness and my sense of worth has been immeasurably improved as a result.

If good management practice drives the failure of successful firms faced with disruptive technological change, then the usual answers to companies, problems—planning better, working harder, becoming more customer- driven, and taking a longer-term perspective—all exacerbate the problem.

When we buy a product, we essentially “hire” something to get a job done. If it does the job well, when we are confronted with the same job, we hire that same product again. And if the product does a crummy job, we “fire” it and look around for something else we might hire to solve the problem.

There are whole industries, such as venture capital, that are currently organized around the belief that innovation is essentially a game of playing the odds. But it’s time to topple that tired paradigm. I’ve spent twenty years gathering evidence so that you can put your time, energy, and resources into creating products and services that you can predict, in advance, customers will be eager to hire. Leave relying on luck to the other guys.

As I look back on my own life, I recognize that some of the greatest gifts I received from my parents stemmed not from what they did for me—but rather from what they didn’t do for me. One such example: my mother never mended my clothes. I remember going to her when I was in the early grades of elementary school, with holes in both socks of my favorite pair. My mom had just had her sixth child and was deeply involved in our church activities. She was very, very busy. Our family had no extra money anywhere, so buying new socks was just out of the question. So she told me to go string thread through a needle, and to come back when I had done it. That accomplished—it took me about ten minutes, whereas I’m sure she could have done it in ten seconds—she took one of the socks and showed me how to run the needle in and out around the periphery of the hole, rather than back and forth across the hole, and then simply to draw the hole closed. This took her about thirty seconds. Finally, she showed me how to cut and knot the thread. She then handed me the second sock, and went on her way. A year or so later—I probably was in third grade—I fell down on the playground at school and ripped my Levi’s. This was serious, because I had the standard family ration of two pairs of school trousers. So I took them to my mom and asked if she could repair them. She showed me how to set up and operate her sewing machine, including switching it to a zigzag stitch; gave me an idea or two about how she might try to repair it if it were she who was going to do the repair, and then went on her way. I sat there clueless at first, but eventually figured it out. Although in retrospect these were very simple things, they represent a defining point in my life. They helped me to learn that I should solve my own problems whenever possible; they gave me the confidence that I could solve my own problems; and they helped me experience pride in that achievement. It’s funny, but every time I put those socks on until they were threadbare, I looked at that repair in the toe and thought, “I did that.” I have no memory now of what the repair to the knee of those Levi’s looked like, but I’m sure it wasn’t pretty. When I looked at it, however, it didn’t occur to me that I might not have done a perfect mending job. I only felt pride that I had done it. As for my mom, I have wondered what

Creating the right experiences and then integrating around them to solve a job, is critical for competitive advantage. That’s because while it may be easy for competitors to copy products, it’s difficult for them to copy experiences that are well integrated into your company’s processes. But to do all this well takes a holistic

I genuinely believe that relationships with family and close friends are one of the greatest sources of happiness in life. It sounds simple, but like any important investment, these relationships need consistent attention and care. But there are two forces that will be constantly working against this happening. First, you’ll be routinely tempted to invest your resources elsewhere—in things that will provide you with a more immediate payoff. And second, your family and friends rarely shout the loudest to demand your attention. They love you and they want to support your career, too. That can add up to neglecting the people you care about most in the world. The theory of good money, bad money explains that the clock of building a fulfilling relationship is ticking from the start. If you don’t nurture and develop those relationships, they won’t be there to support you if you find yourself traversing some of the more challenging stretches of life, or as one of the most important sources of happiness in your life.

Predictable marketing requires an understanding of the circumstances in which customers buy or use things. Specifically, customers—people and companies—have “jobs” that arise regularly and need to get done. When customers become aware of a job that they need to get done in their lives, they look around for a product or service that they can “hire” to get the job done.

Disruptive technologies bring to a market a very different value proposition than had been available previously. Generally, disruptive technologies underperform established products in mainstream markets. But they have other features that a few fringe (and generally new) customers value. Products based on disruptive technologies are typically cheaper, simpler, smaller, and, frequently, more convenient to use. There

The theory of motivation suggests you need to ask yourself a different set of questions than most of us are used to asking. Is this work meaningful to me? Is this job going to give me a chance to develop? Am I going to learn new things? Will I have an opportunity for recognition and achievement? Am I going to be given responsibility? These are the things that will truly motivate you. Once you get this right, the more measurable aspects of your job will fade in importance.

My purpose in writing this book is simply to offer my witness that being a member missionary can be a source of deep happiness. It need not be hard. You will pull wonderful friends into your life because they will be able to feel your love for them when you invite them to learn more about their Heavenly Father. And every time you take someone figuratively by the hand and introduce him or her to Jesus Christ, you will feel how deeply our Savior loves you and loves the person whose hand is in yours.

The final element is execution. The only way a strategy can get implemented is if we dedicate resources to it. Good intentions are not enough—you’re not implementing the strategy that you intend if you don’t spend your time, your money, and your talent in a way that is consistent with your intentions. In your life, there are going to be constant demands for your time and attention. How are you going to decide which of those demands gets resources? The trap many people fall into is to allocate their time to whoever screams loudest, and their talent to whatever offers them the fastest reward. That’s a dangerous way to build a strategy. All of these factors—priorities, balancing plans with opportunities, and allocating your resources—combine to create your strategy.

And that’s the trap of marginal thinking. You can see the immediate costs of investing, but it’s really hard to accurately see the costs of not investing. When you decide that the upside of investing in the new product isn’t substantial enough while you still have a perfectly acceptable existing product, you aren’t taking into account a future in which somebody else brings the new product to market. You’re assuming everything else—specifically, the money you make on the old product—will continue forever exactly as it has up until now. A company may not see any consequences of that decision for some time. It might not get “caught” in the short term if a competitor doesn’t get ahead. But the company that makes all its decisions through this marginal-costs lens will, eventually, pay the price.

Toyota wasn’t really worried that it would give away its “secret sauce.” Toyota’s competitive advantage rested firmly in its proprietary, complex, and often unspoken processes. In hindsight, Ernie Schaefer, a longtime GM manager who toured the Toyota plant, told NPR’s This American Life that he realized that there were no special secrets to see on the manufacturing floors. “You know, they never prohibited us from walking through the plant, understanding, even asking questions of some of their key people,” Schaefer said. “I’ve often puzzled over that, why they did that. And I think they recognized we were asking the wrong questions. We didn’t understand this bigger picture.” It’s no surprise, really. Processes are often hard to see—they’re a combination of both formal, defined, and documented steps and expectations and informal, habitual routines or ways of working that have evolved over time. But they matter profoundly. As MIT’s Edgar Schein has explored and discussed, processes are a critical part of the unspoken culture of an organization. 1 They enforce “this is what matters most to us.” Processes are intangible; they belong to the company. They emerge from hundreds and hundreds of small decisions about how to solve a problem. They’re critical to strategy, but they also can’t easily be copied. Pixar Animation Studios, too, has openly shared its creative process with the world. Pixar’s longtime president Ed Catmull has literally written the book on how the digital film company fosters collective creativity2—there are fixed processes about how a movie idea is generated, critiqued, improved, and perfected. Yet Pixar’s competitors have yet to equal Pixar’s successes. Like Toyota, Southern New Hampshire University has been open with would-be competitors, regularly offering tours and visits to other educational institutions. As President Paul LeBlanc sees it, competition is always possible from well-financed organizations with more powerful brand recognition. But those assets alone aren’t enough to give them a leg up. SNHU has taken years to craft and integrate the right experiences and processes for its students and they would be exceedingly difficult for a would-be competitor to copy. SNHU did not invent all its tactics for recruiting and serving its online students. It borrowed from some of the best practices of the for-profit educational sector. But what it’s done with laser focus is to ensure that all its processes—hundreds and hundreds of individual “this is how we do it” processes—focus specifically on how to best respond to the job students are hiring it for. “We think we have advantages by ‘owning’ these processes internally,” LeBlanc says, “and some of that is tied to our culture and passion for students.

In the words of Andy Grove: “To understand a company’s strategy, look at what they actually do rather than what they say they will do.”…. Here is a way to frame the investments that we make in the strategy that becomes our lives: we have resources – which include personal time, energy, talent and wealth – and we are using them to try to grow several “businesses” in our personal lives… How should we devote our resources to these pursuits? Unless you manage it mindfully, your personal resource allocation process will decide investments for you according to the “default” criteria that essentially are wired into your brain and your heart. As is true in companies, your resources are not decided and deployed in a single meeting or when you review your calendar for the week ahead. It is a continuous process –and you have, in your brain, a filter for making choices about what to prioritize. But it’s a messy process. People ask for your time and energy every day, and even if you are focused on what’s important to you, it’s still difficult to know which are the right choices. If you have an extra ounce of energy or a spare 30 minutes, there are a lot of people pushing you to spend them here rather than there. With so many people and projects wanting your time and attention, you can feel like you are not in charge of your own destiny. Sometimes that’s good: opportunities that you never anticipated emerge. But other times, those opportunities can take you far off course… The danger for high-achieving people is that they’ll unconsciously allocate their resources to activities that yield the most immediate, tangible accomplishments… How you allocate your own resources can make your life turn out to be exactly as you hope or very different from what you intend.