Jobs to be Done (JTBD)
for Manufacture of gas; distribution of gaseous fuels through mains (ISIC 3520)
The industry is facing significant disruption and an eroding "Social License to Operate" (CS01, MD01). Understanding the underlying "jobs" customers hire gas for, rather than just selling gas, is critical for pivoting towards future-proof solutions like green gases or energy services. The high...
What this industry needs to get done
When facing declining long-term demand for fossil fuels and increasing pressure for decarbonization, I want to transition our energy supply and distribution infrastructure to sustainable alternatives, so I can secure the long-term viability and relevance of our business.
The high market obsolescence and substitution risk (MD01: 4/5) for traditional natural gas infrastructure, combined with social activism and de-platforming risk (CS03: 3/5), creates immense pressure to evolve beyond current operations with limited clear pathways.
- Percentage of revenue from non-fossil fuels
- Percentage reduction in network carbon intensity
- Investment in new energy infrastructure
When operating within a heavily regulated industry, I want to efficiently comply with all current and emerging safety, environmental, and operational regulations, so I can avoid penalties and maintain our license to operate.
The extensive regulatory oversight (MD07: 1/5) means that any lapse in compliance can lead to significant financial penalties and reputational damage, though established processes exist to manage this.
- Percentage compliance with regulatory audits
- Number of safety incidents
- Speed of regulatory reporting
When managing an extensive network of aging infrastructure, I want to optimize the utilization, maintenance, and strategic decommissioning of our physical assets, so I can minimize operational costs and mitigate stranded asset risk.
The high market obsolescence and substitution risk (MD01: 4/5) for existing infrastructure means managing assets for peak efficiency now while preparing for future non-gas uses is a complex and poorly addressed challenge.
- Asset utilization rate
- Percentage reduction in infrastructure leakage
- CAPEX efficiency for maintenance/upgrades
When facing public scrutiny over climate change, I want to demonstrate our commitment to sustainability and environmental stewardship, so I can build public trust and maintain a positive social license to operate.
High social activism and de-platforming risk (CS03: 3/5) and structural toxicity (CS06: 3/5) mean public perception of environmental impact can severely impact investor relations and regulatory goodwill, requiring proactive and transparent communication.
- ESG rating improvement
- Public perception index score
- Number of positive media mentions related to sustainability
When looking at the long-term future of the energy sector, I want to feel confident that our business model is adaptable and resilient to disruptive technologies and policy shifts, so I can ensure job security for our workforce and sustained value for shareholders.
The significant market obsolescence and substitution risk (MD01: 4/5) creates deep uncertainty about the long-term relevance and profitability of current business operations, leading to anxiety about future strategic directions.
- Employee retention rate for critical roles
- Investor confidence index
- Executive confidence in strategic plan
When residential and commercial customers need energy for heating and processes, I want to provide highly reliable, safe, and efficient delivery of gaseous fuels, so they can satisfy their core functional needs without disruption.
While customers expect fundamental reliability, unexpected outages or safety incidents (CS06: 3/5) can severely erode trust and necessitate costly remediation, even though base services are generally well-managed.
- Service interruption frequency per customer
- Gas leakage incident rate
- Customer satisfaction index for reliability
When presenting our strategic direction to financial markets, I want to clearly articulate a compelling and viable long-term growth strategy that incorporates decarbonization, so I can attract and retain investment capital.
The high market obsolescence and substitution risk (MD01: 4/5) makes it challenging to convince investors of long-term value creation without a clear, executable decarbonization and diversification strategy that differentiates the business.
- Share price stability index
- Institutional investor retention rate
- Cost of capital
When making critical investment decisions for future energy infrastructure, I want to feel assured that our strategic choices are robust against future regulatory changes and market disruptions, so I can avoid costly missteps and stranded investments.
The uncertainty introduced by significant market obsolescence risk (MD01: 4/5) and heavy, evolving regulatory oversight (MD07: 1/5) creates a fear of making the wrong large-scale, long-term investment.
- Number of strategic initiative pivots post-launch
- ROI on new infrastructure projects relative to forecast
- Executive confidence in long-term capital plan
When managing their energy consumption, I want to empower residential and industrial customers with tools and services to predict, manage, and reduce their energy costs, so they can gain control over their budgets and improve efficiency.
While basic billing exists, fluctuating energy prices (MD03: 4/5) and the complexity of energy consumption patterns mean customers often struggle with true cost predictability and optimization, leaving a gap for advanced services.
- Customer energy savings achieved (average %)
- Adoption rate of energy management tools
- Customer satisfaction with cost predictability
When seeking to attract and retain a skilled workforce in a transitioning industry, I want to project an image of an innovative, socially responsible, and stable employer, so I can secure the talent needed for future operations.
The perception of declining long-term demand (MD01: 4/5) and social activism (CS03: 3/5) against fossil fuels can make it difficult to attract new talent, particularly younger generations seeking purpose-driven careers, creating a talent pipeline risk.
- Percentage reduction in voluntary employee turnover for critical roles
- Quality of job applicant pool (e.g., candidate-to-hire ratio)
- Employee engagement scores
When sourcing gaseous fuels, I want to establish and maintain a diversified and resilient supply chain, so I can ensure uninterrupted delivery to customers even during geopolitical disruptions or supply shocks.
High trade network topology and interdependence (MD02: 4/5) means disruptions in one part of the global supply chain can have cascading effects, risking supply stability and customer outages, which current solutions may not fully mitigate.
- Supply interruption frequency
- Supplier lead time variance
- Percentage of supply from diversified sources
When operating a complex and potentially hazardous energy distribution network, I want to have absolute assurance that all safety protocols and maintenance schedules are meticulously followed, so I can sleep soundly knowing we've minimized risk of catastrophic incidents.
The structural toxicity and precautionary fragility (CS06: 3/5) of handling gaseous fuels means even minor failures can have catastrophic environmental and human consequences, creating constant vigilance and a need for rigorous, albeit established, safety systems.
- Near-miss incident rate
- Employee safety training compliance rate
- Independent safety audit scores
Strategic Overview
The "Manufacture of gas; distribution of gaseous fuels through mains" industry is confronting a paradigm shift, characterized by "Declining Long-Term Demand & Stranded Assets" (MD01) and intense "Regulatory Oversight" (MD07). Traditional product-centric approaches are no longer sufficient. The Jobs to be Done (JTBD) framework offers a vital lens to understand the deeper functional, emotional, and social needs customers are trying to satisfy, moving beyond merely delivering natural gas. By focusing on what customers truly need – e.g., reliable, affordable, clean heating; stable industrial process heat; predictable energy costs – companies can pivot their offerings. This is crucial for addressing "Social License to Operate Erosion" (MD01), mitigating "Structural Toxicity & Precautionary Fragility" (CS06) related to fossil fuels, and identifying valuable diversification pathways. JTBD provides a framework to navigate the "Uncertainty of Future Gas Mix" (IN03) by ensuring that new solutions genuinely solve customer problems in a decarbonizing economy.
5 strategic insights for this industry
"Job of Clean, Reliable Heating"
Residential customers hire gas for the "job" of heating their homes reliably and affordably. With decarbonization, this job evolves to "clean, reliable, and affordable heating." This insight opens opportunities for biomethane, hydrogen-ready appliances, or heat pumps powered by decarbonized electricity, addressing "Declining Long-Term Demand & Stranded Assets" (MD01) and "Cultural Friction & Normative Misalignment" (CS01).
"Job of Stable Industrial Process Heat"
Industrial customers need stable, high-temperature process heat for manufacturing. The current "job" is done by natural gas due to its efficiency and cost. Future solutions must deliver the same stability and temperature profile using low-carbon alternatives (e.g., hydrogen, renewable electricity for direct heating, or heat recovery systems). This addresses "Structural Toxicity & Precautionary Fragility" (CS06) and "Supply Chain Opacity & Coordination" (MD05) in transitioning to greener feedstocks.
"Job of Energy Cost Predictability & Management"
Businesses and homeowners need predictable energy costs and efficient energy management. This "job" is increasingly challenged by "Commodity Price Volatility & Margin Squeeze" (MD03). JTBD can guide the development of new service offerings, such as fixed-price green gas contracts, energy efficiency consulting, or integrated smart energy management systems.
"Job of Compliance & Sustainability Reporting"
For commercial and industrial customers, achieving sustainability targets and complying with environmental regulations is a critical "job." This can be fulfilled by providing certified green gas (biomethane, hydrogen) with transparent emissions reporting, helping customers meet their ESG goals. This directly addresses "Regulatory Compliance and Reporting Issues" (PM01) and "Project Delays and Cancellations" (CS03) due to environmental concerns.
"Job of Future-Proofing Energy Infrastructure"
Developers and large organizations are looking to future-proof their energy supply. The industry can offer solutions that ensure long-term energy security and decarbonization pathways, such as hydrogen-ready gas connections for new developments. This mitigates "High Capital Expenditure for Infrastructure" (PM03) by offering a clear path to future energy sources.
Prioritized actions for this industry
Conduct Deep Customer Ethnography
Invest in extensive research (interviews, observations) with residential, commercial, and industrial customers to uncover their true "jobs to be done" related to energy consumption and sustainability.
Develop "Clean Heat" Solution Packages
Design and market integrated solutions for heating (e.g., heat pumps, hybrid systems, biomethane contracts) that fulfill the "job" of clean, reliable warmth, rather than just selling gas.
Offer Industrial Decarbonization Pathways
Create consulting and infrastructure upgrade services for industrial clients, helping them transition to low-carbon process heat using hydrogen blending, dedicated hydrogen supply, or other renewable gas options.
From quick wins to long-term transformation
- Initial internal workshops to introduce JTBD concepts and identify preliminary "jobs" for key customer segments.
- Pilot customer feedback loops specifically asking "what job are you hiring us for?" rather than "what gas product do you want?".
- Begin mapping existing offerings against identified "jobs" to spot gaps or overlaps.
- Develop and test new service prototypes (e.g., green gas certification, energy efficiency audits for industrial clients) based on JTBD insights.
- Train customer-facing staff on JTBD principles to better understand customer needs.
- Integrate JTBD into product development and marketing strategies.
- Realign entire business units and organizational structures around fulfilling key "jobs" rather than product lines.
- Significant infrastructure investments to support new "job-doing" solutions (e.g., hydrogen-ready pipelines, advanced metering for energy management).
- Establish strategic partnerships with technology providers to deliver comprehensive solutions for customer "jobs."
- Surface-level understanding of "jobs": Mistaking solutions for jobs (e.g., "I need gas" vs. "I need warm rooms").
- Internal resistance to change: Shifting from a product-centric to a customer-job-centric mindset can be challenging.
- Underestimating technical complexity: Delivering new "job-doing" solutions (e.g., hydrogen for process heat) requires significant technical and safety innovations (IN02, PM03).
- Regulatory misalignment: New service offerings might not fit existing regulatory frameworks, requiring proactive engagement with policymakers.
Measuring strategic progress
| Metric | Description | Target Benchmark |
|---|---|---|
| Customer "Job" Satisfaction Score | Survey-based metric assessing how well new offerings fulfill identified customer jobs. | Increase by X% annually |
| Revenue from New "Job-Doing" Services | Revenue generated from services explicitly designed to fulfill a customer "job" beyond traditional gas sales. | Y% of total revenue |
| Customer Retention Rate for Green Gas Solutions | % of customers opting for biomethane/hydrogen or related clean energy services. | >Z% |
| Market Share in Decarbonized Heat/Process Solutions | % of regional market captured for clean heating or industrial process heat solutions. | W% |
| Employee Engagement in Innovation Initiatives | % of employees involved in or contributing to new "job-doing" solution development. | A% participation |
Other strategy analyses for Manufacture of gas; distribution of gaseous fuels through mains
Also see: Jobs to be Done (JTBD) Framework