A major driver of the cost of healthcare in the United States is a compromise that was reached with the American Medical Association in the 1960s when Medicare was first established.

The breakthrough innovations come when the tension is greatest and the resources are most limited. That's when people are actually a lot more open to rethinking the fundamental way they do business.

A disruptive innovation is a technologically simple innovation in the form of a product, service, or business model that takes root in a tier of the market that is unattractive to the established leaders in an industry.

Relative to the taxi industry, Uber is a sustaining innovation; that is, it makes customers' lives better. Uber targeted mainstream markets with a better service for existing customers, and it succeeded in serving them better than the incumbents.

I promise my students that if they take the time to figure out their life purpose, they'll look back on it as the most important thing they discovered while at school. If they don't figure it out, they will just sail off without a rudder and get buffeted in the very rough seas of life.

The paradox explored in my book 'The Innovator's Dilemma' is that successful companies can fail by making the 'right' decisions in the wrong situations.

Finding a 'sacrificial lamb' on whom to tag blame for complicated problems is an important instrument in the toolkit of politicians, because it deflects blame for the nation's economic woes away from their own regulatory lapses, economic mismanagement and coddling to labor unions.

An innovation will get traction only if it helps people get something that they're already doing in their lives done better.

A great book seeks to explain causality, not correlation. It works to point out the circumstances in which it works, and where it doesn't. And in so doing, it is broadly applicable.

Disruption is a process, not an event, and innovations can only be disruptive relative to something else.

No idea for a new growth business ever comes fully shaped. When it emerges, it's half-baked, and it then goes through a process of becoming fully shaped.

We have found that companies need to speak a common language because some of the suggested ways to harness disruptive innovation are seemingly counterintuitive. If companies don't have that common language, it is hard for them to come to consensus on a counterintuitive course of action.

Smart companies fail because they do everything right. They cater to high-profit-margin customers and ignore the low end of the market, where disruptive innovations emerge from.

Diabetes is a great example whereby, giving the patient the tools, you can manage yourself very well.

I brought one big question with me to Harvard. Why do smart companies fail?

Many think of management as cutting deals and laying people off and hiring people and buying and selling companies. That's not management, that's deal making. Management is the opportunity to help people become better people. Practiced that way, it's a magnificent profession.

There are direct paths to a successful career. But there are plenty of indirect paths, too.

Most marketers think there's a concept called a product life cycle. Once you realize that the world is organized by jobs that need to be done, you understand that product life cycles don't exist.

I believe that we can, in a deliberate way, articulate the kind of people we want to become.

There are three types of innovations that affect jobs and capital: empowering innovations, sustaining innovations and efficiency innovations.

For 300 years, higher education was not disruptable because there was no technological core.

Efficiency innovations are a natural part of the economic cycle, but these are the innovations that streamline process and actually reduce the number of available jobs.

Venture capital is always wanting to go up market.

When you improve your product so it does the customer's job better, then you gain market share.

The process of writing 'The Innovator's Dilemma' entailed the developing a new theory. My colleagues, students and I have been improving that theory, and adding others to it, since that time.

Life is an unending stream of extenuating circumstances.

Christine and I haven't raised our children. A whole community of selfless Christians has contributed to helping them become faithful, competent adults.

Efficiency innovations arise in industries that already exist. They provide existing goods and services at much lower costs. They are not empowering. Efficiency innovators become the low cost providers within an existing framework.

There is no evidence that success in business will make us happy people or allow us to have happy families.

The whole enterprise of teaching managers is steeped in the ethic of data-driven analytical support. The problem is, the data is only available about the past. So the way we've taught managers to make decisions and consultants to analyze problems condemns them to taking action when it's too late.

We don't hire ministers or priests to teach and care for us. This forces us to teach and care for each other - and in my view, this is the core of Christian living as Christ taught it.

I helped start a ceramics company called CPS Technologies. We took it public in 1987 at $12 a share. Three months later, there was this horrible cliff: Black Monday. Fidelity had bought 15 percent of our stock, and their algorithm caused them to dump it all onto the market that day. We dropped from $12 to $2.

Having a loving relationship with our spouse or with our children is what leads to the long-term happiness we all seek.

There just isn't anything more invigorating than to read an article or hear about an entrepreneur using the term 'disruptive technology' that makes no reference to me as the source. When it's clear they really got the idea and they use it as if it were in everyday parlance, that's the ultimate triumph.

Growth makes so many dimensions of management easier. It's when growth stops that things get tough.

In the Mormon Church, we believe we can be married for all eternity, not till death do you part. As Mom was getting older, she was excited, truly excited, that within a few years she'd be with Dad again.

The world is a nested space, and so we have our brain as a person, and people are members of teams, and teams are part of business units, and business units are parts of corporations, and corporations are part of industries, which are part of economies.

The principles of disruptive innovation are indeed intended to be guidelines to assist managers both in introducing disruptive innovations as well as identifying disruptive developments in their market.

To focus capital and entrepreneurship into empowering innovation, we should change is the capital gains tax rate. We would be better served by a regressive tax rate, that would become progressively smaller the longer the investment is held.

India's prosperity is sectioned by geography, such as in Bangalore, where the information technology industry is prominent. Because they have a conduit out of India, competing in the world by the Internet, it's not regulated in corrupt ways, and it is very prosperous.

I'm an optimistic person.

The concept of disruption is about competitive response; it is not a theory of growth. It's adjacent to growth. But it's not about growth.

The marginal cost of doing something 'just this once' always seems to be negligible, but the full cost will typically be much higher. Yet unconsciously, we will naturally employ the marginal-cost doctrine in our personal lives.

Funding that is focused on the ability to diagnose diseases precisely will just have inestimable value because that's the gate through which precision medicine has to go. Unless you can diagnose the disease precisely, care has to remain in the hands of expensive institutions and expensive caregivers.

In a healthy economy, empowering, sustaining and efficiency innovations operate in balance. A healthy economy creates and sustains more jobs before squeezing out inefficiencies.

Most people have never thought through how they're going to allocate their time. You need to make a decision in advance.

I wouldn't say there isn't a direct path to a successful career. There are people who knew exactly what they wanted to do from a very young age, weren't going to be diverted, and then they just went out and achieved it.

As I have studied the Bible and the Book of Mormon, I have come to know through the power of the Spirit of God, that these books contain the fullness of the gospel of Jesus Christ.

Whenever we have thanked these men and women for what they have done for us, without exception they have expressed gratitude for having the chance to help - because they grew as they served.

Management is getting people together to figure out how to transform inputs into outputs. In the process of figuring out the process of how people work together, you've got to figure out who's got what responsibilities, and how do they work together.