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Clayton Christensen | How Will You Measure Your Life? | LinkedIn Speaker Series

How Will You Measure Your Life? - Clayton Christensen | LinkedIn Speaker Series

Short Summary:

This talk by Clayton Christensen focuses on the concept of "disruptive innovation" and its application to both business and personal life. Christensen argues that companies and individuals often fail to prioritize long-term goals due to short-term metrics and the allure of immediate success. He uses the example of the steel industry to illustrate how successful companies can be disrupted by new entrants focusing on lower-cost, less-demanding segments of the market. He then applies this concept to personal life, suggesting that we often prioritize career achievements over family and relationships because they offer more immediate gratification. Christensen emphasizes the importance of defining our own measures of success and prioritizing long-term goals, even if they don't offer immediate rewards. He also discusses the concept of "marginal cost thinking" and how it can hinder innovation in both business and personal life.

Detailed Summary:

1. Introduction and Personal Background:

• Christensen introduces himself and his work on disruptive innovation, highlighting its relevance to companies like LinkedIn.
• He shares a personal story about his stroke and his journey to relearn speech, demonstrating his resilience and determination.
• He explains the inspiration for his book "How Will You Measure Your Life?" stemming from his observations of his Harvard Business School classmates and their life choices.

2. The Theory of Disruptive Innovation:

• Christensen uses the steel industry as an example to illustrate the concept of disruptive innovation.
• He explains how mini-mills, initially focusing on low-cost rebar production, gradually disrupted the market by driving out integrated steel mills.
• He emphasizes that the pursuit of profit can lead companies to prioritize short-term gains over long-term sustainability.
• He highlights the importance of entering the market at the bottom and gradually moving upwards, rather than trying to compete directly with established players.
• He applies this concept to personal life, suggesting that we often prioritize career achievements over family and relationships because they offer more immediate gratification.

3. The Importance of Defining Your Own Measures of Success:

• Christensen argues that the way we measure success significantly impacts our choices and priorities.
• He uses the example of the "leave no child behind" initiative in the US education system, where the focus on standardized testing led to unintended consequences.
• He suggests that we should define our own measures of success based on our values and long-term goals.
• He emphasizes the importance of prioritizing relationships and personal growth over material success.
• He shares his own personal experience of realizing that God doesn't "hire accountants," meaning that our ultimate success will be measured by the impact we have on individual lives, not by our material achievements.

4. Marginal Cost Thinking and its Impact:

• Christensen introduces the concept of "marginal cost thinking," where companies prioritize using existing resources over investing in new ventures.
• He uses the example of US Steel, which failed to invest in mini-mills despite the clear economic benefits, due to the perceived high cost of building new facilities.
• He argues that this mindset can stifle innovation and prevent companies from adapting to changing market conditions.
• He applies this concept to personal life, suggesting that we often prioritize short-term gratification over long-term goals due to the perceived low cost of indulging in immediate pleasures.

5. Understanding the Job to Be Done:

• Christensen emphasizes the importance of understanding the "job to be done" when developing products and services.
• He uses the example of milkshakes, where a fast-food chain failed to improve sales by focusing on customer feedback about the product itself.
• They realized that customers were hiring milkshakes to address a specific job: providing a distraction during a long drive.
• He applies this concept to personal relationships, suggesting that we should focus on understanding the "jobs" that our spouses or partners are trying to get done, rather than simply trying to fulfill their perceived needs.

6. Managing Change and Disruption:

• Christensen acknowledges the difficulty of managing change and disruption in both business and personal life.
• He suggests that companies need to create independent business units to foster innovation and disruption, as it is unlikely to occur within the mainstream organization.
• He emphasizes the importance of starting early and developing new ventures in parallel with existing businesses.
• He shares his own approach to managing change in his personal life, prioritizing family, faith, and career, and working together with his children on projects.

Notable Quotes:

• "God doesn't hire accountants."
• "The pursuit of profit can lead companies to prioritize short-term gains over long-term sustainability."
• "Understanding the job to be done is more important than understanding the customer."
• "Growth is an input to being able to sustain success."
• "It is unlikely to disrupt yourself from within the mainstream organization."

Overall, Christensen's talk provides a thought-provoking framework for understanding the dynamics of disruption and change in both business and personal life. He emphasizes the importance of defining our own measures of success, prioritizing long-term goals, and understanding the underlying "jobs" that we are trying to get done.