BK BRLL 009110

Business Models
for Teams
See How Your Organization Really Works
and How Each Person Fits In
by Tim Clark and Bruce Hazen,

in collaboration with
225 contributors from 38 countries
Designed by Keiko Onodera
BusinessModelsForTeams_2P.indd 1 2/15/17 1:20 PM

Co-creators of Business Models for Teams
Aclan Can Okur Brian Haney Dennis McCluskey Frederic Theismann
Adriana Lobo Brigitte Tanguay Dennis Daems Gabrielle Schaffer
Adriano Teles da Costa e Oliveira Bruce Hazen Derrick Tran Gary Percy
AJ Shah Bryan Lubic Diana Visconti Geoffroy Seive
Alaa Qari Carlos Salum Dora Luz González Bañales Ghani Kolli
Alan Scott Doug Gilbert Gina Condon
Caroline Bineau
Alexander Schmid Doug Morwood Ginés Haro Pastor
Caroline Ravelo
Amina Kemiche Eddy de Graaf Ginger Grant
Cheenu Srinivasan
Ammar Taqash Edmund Komar Gisela Grunda-Hibaly
Cheryl Rochford
Andrea Frausin Eduard Ventosa Glen B. Wheatley
Andrew Kidd Cheryl Sykes Eduardo Campos GP designpartners gmbh
Angelina Arciero Chimae Cupschalk Eli Ringer
Grace Lanni
Anja Wickert Christine Paquette Elia Racamonde
Greg Loudoun
Ann Ann Low Christoph Kopp Elizabeth Cable
Gregory S. Nelson
Annalie Killian Christopher Ashe Enrico Florentino
Guida Figueira
Ariadna Alvarez Delgado Conrado Gaytan de la Cruz Eric Nelson
Guido Delver
Aricelis Martinez Conrado Schlochauer Erik Alexander Leonavicius
Hadjira Abdoun
Arnulv Rudland Cristian Hofmann Erin Liman
Ernest Buise Hans Schriever
Ayman Sheikh Khaleel Daniel Huber
Bart Nieuwenhuis Fabiana Mello Hector Miramontes
Daniel Weiss Hena Rana
Beatriz Almudena González Torre Fabio Carvalho
Danielle Leroy Hillel Nissani
Bernie Maloney Fabio Nunes
Dann Bleeker-Pedersen Isabel Chaparro
Bert Luppens Fabio Petruzzi
David M. Blair Falk Schmidt Isabella Bertelli Cabral dos Santos
Birgitte Alstrøm
Birgitte Roujol David Hubbard Fernando Sáenz Marrero Jörn Friedrich Dreyer
Björn Kijl David Nimmo Francisco Barragan Jaime Schettini
Bob Fariss Dawn Langley Francisco Provete Jairo Koda
Brenda Coates Deanne Lynagh Franck Demay James Saretta
Brian Edgar Denise Taylor Frederic Caufrier James Wylie
vi

Jan Kyhnau Liviu Ionescu Michael Bertram Raymond Guyot
Jane Leonard Lourenço de Pauli Souza Michelle Blanchard Reiner Walter
Jason Porterfield Luc E. Morisset Miki Imazu Renate Bouwman
Jaya Machet Luigi Centenaro Mikko Mannila Renato Nobre
Jean-Pierre Savin Lukas Bratt Lejring Mitchell Spiegel Rex Foster
Jean-Yves Reynaud Magali Morier Mohamad Khawaja Riccardo Donelli
Jeffrey Krames Magda Stawska Nadia Circelli Richard Bell
Jeroen JT Bosman Manuel Grassler Natalie Currie Roberto Salvato
Joe Costello Manuela Gsponer Neil McGregor Robin Lommers
John Carnohan Marco Mathia Niall Reeve-Daly Sara Vilanova
John J Sauer Marco Ossani Nicolas Burkhardt Scott Doniger
Jonas Holm
Maria Monteiro Nicolas de Vicq Sophie Brown
Jonny Law
Maria Orofino Nige Austin Stefaan Dumez
Jordi Castells
Marijn Mulders Olivier Gemoets Stefan Kappaun
Jorge Carulla
Markus Heinen Oscar Galvez Tabac Stephan List
Jorge Pesca Aldrovandi
Marsha Brink Stratic Pallavi Bhadkamkar Stuart Lewis
Jos Meijer
Martin Gaedke Paola Valeri Susanne Zajitschek
Juan Felipe Monsalve Diez
Jude Rathburn Martin Schoonhoven Paula Quaiser Thomas Becker
Judy Weldon Mary Anne Shew Paulo Melo Thomas Kristiansen
Julia Schlagenhauf Mathias Wassen Pedro Fernandez Thomas Fisker Nielsen
Julie Ann Wood Mats Pettersson Peter Cederqvist Till Leon Kraemer
Justine Lagiewka Mattias Nordin Peter Dickinson Tim Clark
Jutta Hastenrath Megan Lacey Peter Gaunt Tufan Karaca
Katiana Machado Mercedes Hoss-Weis Philip Blake Van Le
Keiko Onodera Michael Lachapelle Pierre Chaillou Verneri Aberg
Koen Cuyckens Michael Lang Rainer Bareiss Victor Gamboa
Laura Stepp Michael Ruzzi Ralf Meyer Viknapergash Guraiah
Lina Clark Michael Makowski Randi Millard Vincenzo Baraniello
Co-creators of Business Models for Teams vii

A “systems view” of organizations at three levels
Enterprise model
Team model
Individual model
6 Section 1

When Words Are
Not Enough—or Too Much
Newly-promoted leaders who read leader- efficiently symbolize or model relationships
ship books or take leadership training often too complex for words.
come away with a fresh vocabulary that de-
scribes skillful leading. Yet they may still lack Third object tools gently guide users away
the capacity to demonstrate leadership or from the abstract world of discussion and
develop it in others, and instead rely on lead- toward the concrete world of construction.10
er-like pronouncements made under two Active construction uncovers tacit knowl-
mistaken assumptions: edge, empowers less verbal people, and
makes it easier for everyone to articulate and
1. Everyone understands my words the way share thoughts with colleagues. Third ob-
I understand and intend them. jects also reduce conflict by focusing people
on the work that needs to be done, and re-
2. Everyone will now take appropriate ac- ducing the effects of personality, politics,
tion, based on my words. and the tendency for groups to adopt the
opinions of the most articulate speaker.
There is nothing wrong with words, of course. What is more, they are highly engaging and
But words alone cannot handle the task of inspire behavior-changing experiences.
explaining or understanding a complex,
multi-dimensional system such as an organi- Experienced me-to-we practitioners find
zation. To understand a system, leaders third object tools indispensable, so you will
need physical tools (third objects9) that al- find plenty of examples throughout this
low people to see an entire system at once. book. These tools will help you move beyond
Third objects such as Canvases, LEGO® words and pinpoint problems with how indi-
bricks, sticky notes, flip charts, and drawings viduals, teams, and organizations work.
An organization expressed using LEGO® bricks

10 Section 1

The Business Model Canvas
Key Partners Key Activities Value Propositions Customer Relationships
People or organizations that Actions needed to create, Benefits (solutions or satisfac- Post-sale communications to
perform Key Activities or communicate, sell, or deliver tions) delivered via services or ensure Customer satisfaction
provide Key Resources to Value Propositions to Customers. products. and offer additional benefits.
the enterprise.
Customer Customer Segments

Relationships One or more distinct groups
that benefit from Value
Key Activities Propositions, whether
Customer purchased or not.
Key Partners Value
Propositions Segments
Channels
Key Resources
Costs Revenue
Costs Key Resources Channels Revenue

Expenses incurred acquiring People, property, money, or The touchpoints by which the Funds received when Customers
Key Resources, performing intangibles essential for enterprise communicates, sells, pay for Value Propositions.
Key Activities, or working creating and delivering Value and delivers Value Propositions.
with Key Partners. Propositions to Customers.
Chapter 2 27

5 Followup
Touchpoints
In-person, telephone, chat,
The Five-Phase Marketing Process e-mail, teleconference, Web,

wiki, mail-in warranty or
response, co-creation, etc.
Customer Actions
Relationships Ask Customers about their
experience, resolve problems,
deal with claims, co-develop
5 services or products, introduce
additional Value Propositions
Channels
1 4 Delivery
4
2 3 Touchpoints
On-site/off-site acceptance
(service) or pickup (product),
parcel delivery service, digital
transfer, online activation, etc.
Actions
Perform service in-person or
3 Purchase off-site, ship or transfer goods,
1 Awareness transfer files or activate
Touchpoints account, etc.
Touchpoints 2 Evaluation Online, on-site, in-person, call
In-person, online, signage, center, etc.
trade shows, videos, direct Touchpoints
mail, word-of-mouth, press In-person or online Actions
conferences, print, television, demonstration, trial, or interview, Offer payment methods and
radio, etc. mailed or digital sample, etc. terms preferred by Customers:
cash, debit/credit, electronic,
Actions Actions bank transfer, etc.
Educate, inform, alert, Present, offer trial or sample,
promote, advertise test, share testimonials
Chapter 2 31

Together the nine building blocks describe a business model,
which can be depicted using the Business Model Canvas.9
s
Business Model Canva
s Customer Segments
Customer Relationship
Value Propositions
Key Activities
Key Par tners
Channels
Key Resources
Revenues
Costs
Chapter 2 37

Business Model Canvas
usiness
Haloid's photocopier b Customer Relationships
Customer Segments
Value Propositions
Key Activities
Key Par tners
e
Build copiers Face-to-fac
s
conversation zed
Large & midsi
offices
Maintain copiers
Technician
Battelle Easy, low-cost reports
Sell leases information sharing
Channels
Key Resources
tents
Xerography pa lled on-site
Copiers insta
Technical expertise
tion
Strong reputa
Revenues
Costs
nts Supplies
Manufacturing Lease payme
Salaries cost of goods
Special services
Per-copy charges
ent ancing
Buildings & e
quipm Inventory fin
Chapter 2 39

Modello
Restaurant
Back of the House Front of the House

Non-Customer facing Customer facing
Role Tasks Result of task success Consequence of task failure

Take orders correctly and politely, serve Positive dining experience, Unsatisfying dining experience,
Customer facing
Servers meals, deliver checks, collect payments bigger tips smaller tips, unfavorable social media postings
workers
Guests enjoy clean table settings that Guest experience diminished by dirty table setting, smaller tips,
Busser Clear dishes, clean tables and chairs
enhance dining experience, bigger tips unfavorable social media postings
Create excellent menu and ensure its Good food, convenience for guests, Disappointing dining experience, loss of Customers, smaller tips,
Chef
Non-Customer facing
correct execution enjoyment for guests unfavorable social media postings

workers
Correctly and consistently prepare Predictably positive dining experience, Unpredictable dining experience, loss of Customers, smaller tips,
Cooks menu items bigger tips unfavorable social media postings
Impression of cleanliness and Guest experience diminished by unclean tableware, smaller tips,
Dishwasher Clean tableware
good hygiene, bigger tips unfavorable social media postings
Chapter 2 41

Modello restaurant Customer Relationships
Customer Segments
Value Propositions
Key Activities
Key Par tners
Cook meals rowd:

1. Share unique ce 1. Dinner c
Face-to-fa amilies
experience couples & f
Serve meals
:
u nch crowd
2. Tasty convenience 2. L sionals
Clean & prep profes
No single worker Channels

performs all Key Resources 3. Reliable elegance parties
om 3. Private
three Key
“Personality” 1. Dining ro
Activities that
make Modello
successful 2. Dining room,
Location takeout
e f 3. Catering
Strong ch
Revenues
t
Costs
hecks, h & takeou
1. Dinner c c
2. Lun hecks
Cost of goods bar tabs c
Salaries
3. Catering fees
Rent
Chapter 2 43

EcoZoom
Key Partners
Key Activities Value Propositions Customer Relationships Customer Segments
Design stoves
Chinese Sell stoves

manufacturer
Arrange stove Healthier, more
production, economical cooking
delivery logistics
Families
Key Resources
Channels
The EcoZoom Model: Non-Paying Customers,

Non-Financial Benefits
EcoZoom serves both paying and non-paying Improve refugee
Customers. One key Customer Segment, refugee relief camp conditions Refugee relief
organizations, buys stoves in quantity, then makes them organizations
available at no cost to end-user families
(non-paying Customers).
Costs
Revenues
Salaries
Materials Bulk purchase
and labor of stoves
Shipping fees
Chapter 2 45

Canvas
Business Model
ents
Customer Segm
ships
Customer Relation
EcoZoom Value Proposition
s
Key Ac tivities
Key Partners
es
Design stov
Sell stoves
Chinese
rer Healthier, more
manufactu ove Families
Arrange st economical cooking
Accounting for produc ti on ,
gi st ics
Externalities delive ry lo
Channels
Key Resources
Positive externalities and non- Refugee relief
paying Customers may be key organizations
Improve refugee
considerations if you work in camp conditions
government, healthcare, the
military, or the legal, education,
or nonprofit sectors. On the other
hand, negative externalities, such
Revenues
as pollution and noise, may be im- rchase
Bulk pu es
portant considerations if you work Costs o f to v
s
in industry. Use the Canvas to Salaries
ls
grasp the entirety of your business Materia r
o
model. and lab Shipping fees
Health Reduce smoke-related

Next, consider a different business
illness
that interacts with Customers en- Health
tirely online—and most likely already
counts you as a user!
ctive time
Social
Boost produ
costs
Social Lower fuel
ful
Emvironment Fewer harm
emissions
s
Emvironment
ring emission
Manufactu
Chapter 2 47

Facebook Business Model Canvas
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
- Who are our Key Partners? - What Key Activities do our Value - What benefit(s) do we provide to - How do we provide post-sales - Whom do we benefit?
- Which Key Resources do Propositions, Channels, Customer Customers? For example: support? (Marketing Phase 5) - Which Customers account
they supply, or which Key Activities do Relationships, and Revenue require? Functional - What kinds of relationships do for most of our Revenue?
they perform? - Types of Key Activities: · Reduced risk we have in place now? - Strategically, who is our most important
- What do they offer that is indispensable to our Make: design, develop, manufacture, solve, deliver · Lower cost For example: Customer?
model? Sell: educate, advocate, demonstrate, promote, advertise · In-person or telephone assistance - Who are our Customer’s Customers?
· Better convenience or usability
- Ways Key Partners create benefits: Support: manage, maintain, supervise, otherwise assist · Automated e-mail or self-service Web forms
· Improved performance
· Optimize or economize people who make or sell · Remote personal service via e-mail, chat, Skype, etc.
· Getting a specific job done
· Reduce risk or uncertainty · User community or wiki
Emotional
· Provide otherwise unattainable resources or · Co-creation with Customers
· Enjoyment or pleasure
activities
· Acceptance - What other relationships might Customers expect us to
establish and maintain with them?
· Belonging
· Approval
· Security
Social
Key Resources · Elevated status
Channels
- What assets do our Value - Through which Channels do we
Propositions, Channels, Customer · Taste, style validation reach Customers?
Relationships, and Revenue require? · Affinity - Which Channels work best?
- Four types of Key Resources: - Are there other Channels that Customers might prefer?
People: skilled workers - Marketing Phases 1-4
Tangible Property: vehicles, buildings, land, 1. Awareness: How do prospects discover us?
equipment, tools 2. Evaluation: How do we induce evaluation?
Intangible Property: brands, methods, 3. Purchase: How do Customers buy?
systems, software, patents, copyrights,
licenses 4. Delivery: How do we deliver?
Money: cash, stock, receivables, lines of
credit, financial guarantees
Costs Revenues
- What are our biggest Costs? - For what benefits are our Customers truly willing to pay?
- Which Key Resources and Key Activities are most expensive? - How do they pay now?
- What negative externalities do we generate? - How might they prefer to pay?
- Types of Costs: - How much Revenue does each Customer contribute?
Fixed: salaries, leases - What positive externalities do we generate?
Variable: cost of goods or services, contingent labor - What forms do payments take?
Non-cash: amortization, goodwill, externalities For example: · Licensing fee
· Asset sale · Brokerage fee
· Lease or rental fee · Placement or advertising fee
· Subscription charge · Auction-based dynamic pricing
Facebook Customer Segments
Value Propositions Customer Relationships
Key Partners Key Activities
ail,
Automated e-m
self-service Web
op platform Connect & share Consumers
Protect & devel
ers
Attract Custom
Channels
Key Resources Advertisers
ANNY’S
Platform Internet
XYZ CORP. SALE
DB
Revenues
Costs
Salaries Advertising fees
Chapter 2 51

Key Partners Key Activities
Things to Try - Who are our Key Partners?
- Which Key Resources do
they supply, or which Key Activities do
- What Key Activities do our Value
Propositions, Channels, Customer
Relationships, and Revenue require?
on Monday Morning they perform?

- What do they offer that is indispensable to our model?
- Ways Key Partners create benefits:
- Types of Key Activities:
Make: design, develop, manufacture, solve, deliver
Sell: educate, advocate, demonstrate, promote, advertise
· Optimize or economize Support: manage, maintain, supervise, otherwise assist
· Reduce risk or uncertainty people who make or sell
· Provide otherwise unattainable resources or
activities
Try Modeling Your Enterprise

Now it is your turn: use the Business Model Canvas on these
two pages to diagram the business model of the enterprise for Key Resources
- What assets do our Value
which you work. To help you, hint questions appear inside each Propositions, Channels, Customer
building block. Alternatively, you can print out the Canvas poster Relationships, and Revenue require?
(available for free when you sign up at BusinessModelsForTeams - Four types of Key Resources:
.com). The poster includes hint questions (in tiny type that People: skilled workers
Tangible Property: vehicles, buildings, land,
encourages you to print and work BIG!).
equipment, tools
Intangible Property: brands, methods,
licenses
Money: cash, stock, receivables, lines of
Costs
- What are our biggest Costs?
- Which Key Resources and Key Activities are most expensive?
- What negative externalities do we generate?
- Types of Costs:
Fixed: salaries, leases
Variable: cost of goods or services, contingent labor
Non-cash: amortization, goodwill, externalities
54

Value Propositions Customer Relationships Customer Segments
- What benefit(s) do we provide to - How do we provide post-sales - Whom do we benefit?
Customers? For example: support? (Marketing Phase 5) - Which Customers account
Functional - What kinds of relationships do for most of our Revenue?
· Reduced risk we have in place now? - Strategically, who is our most important
· Lower cost For example: Customer?
· Better convenience or usability · In-person or telephone assistance - Who are our Customer’s Customers?
· Improved performance · Automated e-mail or self-service Web forms
· Getting a specific job done · Remote personal service via e-mail, chat, Skype, etc.
Emotional · User community or wiki
· Enjoyment or pleasure · Co-creation with Customers
· Acceptance - What other relationships might Customers expect us to
establish and maintain with them?
· Belonging
· Approval
· Security
Social
· Elevated status
Channels
- Through which Channels do
· Taste, style validation we reach Customers?
· Affinity - Which Channels work best?
- Are there other Channels that Customers might prefer?
- Marketing Phases 1-4
1. Awareness: How do prospects discover us?
2. Evaluation: How do we induce evaluation?
3. Purchase: How do Customers buy?
4. Delivery: How do we deliver?
Revenues
- For what benefits are our Customers truly willing to pay?
- How do they pay now?
- How might they prefer to pay?
- How much Revenue does each Customer contribute?
- What positive externalities do we generate?
- What forms do payments take?
For example:
· Licensing fee
Chapter 2 55

Kitchen Team Teamwork Table *Ripple-through effect from external Customers
Role Tasks Internal

Customers Result of task success Consequence of task failure
Modello Good reputation,

Design, update excellent menu Reputational/financial loss
Chef (Steve) financial success
Better professional skills, Smaller tips,
Train and supervise Cooks
bigger tips* poor social media reviews*
Explain menu, train servers to recommend Repeat external Customers, Lost external Customers, smaller
Servers
dishes, prevent allergic reactions bigger tips* tips, poor social media reviews*
Cooks Correctly and consistently Modello Good reputation,

Reputational/financial loss
prepare menu items (Steve) financial success
Correctly and consistently Repeat external Customers, Lost external Customers, smaller
Servers
prepare menu items bigger tips* tips, poor social media reviews*
Promptly and thoroughly Modello

Positive image Poor image
wash dinnerware, cookware (Steve)
Dishwasher
Promptly and thoroughly
Cooks Work proceeds smoothly Delayed work, frustration
wash cookware
Eliminate cleanliness- Unpredictable dining experience,

Promptly and thoroughly
Servers related complaints, loss of Customers, smaller tips,
wash dinnerware
bigger tips* unfavorable social media postings*
One of a leader’s most important tasks is to help others see why their work matters to someone.1 People who
grasp teamwork—who they help and how they help—have built a foundation for self-organization and self-
direction. Next, learn how to use the Canvas to draw a team business model.
Chapter 3 61

Modello kitchen team Customer Segments
Customer Relationships
Value Propositions
Key Activities
Key Partners
date menu
Design, up Face-to-face
Train, supervise ly deliver 1. Modello (Steve)

1. Consistent nu
excellent me
Modello (Steve) Cook
Clean up
oom team
2. Dining r
Channels
Key Resources
team 2. Bigger tips, Kitchen
Dining room
Strong chef fewer hassles
cilities Dining room

Kitchen fa 3. Diners
3. Unique experience,
Team spirit tasty convenience
Revenues
Costs Professional gro
s wth
Stress Wages & tip
Times
Sense of community
Energy
Chapter 3 63

Interim finance team
el
DBA’s interim finance team business mod Customer Segments
Value Propositions
Key Activities
Key Partners
arnings,
1. Generate e Face-to-face
Meet face-to-face build reputation
1. DBA
(parent organization)
ment 2. "Sleep well at night!" Internet
Senior manage (certainty with respect
team members Identify, track to current & anticipated
e tionship 2. Senior management
key performanc positions) Long-term rela team members
PI s) orientation
indicators (K
Investors Channels
in
Key Resources 3. Confidence 3. Investors
eal with
resourcing to d ons ngs
Attitude of
unexpected situ
ati In-person meeti
engagement
t heads
Department
heads
cial skills, Weekly/monthly 4. Departmen
Strong finan
credentials 4. Confidence in progress written reports
toward and ability
to deliver goals
IT infrastructure
Revenues and
Costs Professional
elopment
1. Budget alloc
ation personal dev
Fees & wages
Time Enhanced team profile
and recognition
Energy
65

Internal External
Customers Business Model Canvas
Software support
Customers
ViewPoint Learning Services Team Customer Segments
Value Propositions
Key Activities
Key Partners Face-to-face, e-mail,
Skype New leadership group
Create self-service
rom
Marketing
learning programs Deflect cases f tionship
support team Long-term rela Customer
orientation support team
Create & deliver s.
asse
Product certification cl Enable support to work Face-to-face, e-mail, phone,
Development at higher level Webinar, customer portal Sales
Customer and
Support User adoption Channels
Key Resources confidence ing
Internal train s
m Software end users
Instructional design & project tea
Content expertise
Enhance Customer set-up, Monthly reports, one-on-
writers configuration speed one and team meetings
dustry
learning Construction in
Learning management Knowledge of erations consultants
op Customer
system vendors software and
portal In-person
Revenues
Outdated learning system ustomer
Costs Budget from C uct scription fees
Tools & travel content boosts Customer
Support, prod Customer sub
Support costs! its
Staff salaries development un
s Fees from classes
er expert fee
Stress of managing complex Subject matt & certifications
budget allocation
67

digital strategy rollout

Model
Open Power Digital Implementation Team Customer Segments
Value Propositions
Key Activities
Key Partners
1. Manage 1. Social Media 1. End users & influencers
channels 1. Engagement
2. Co-creation community
2. Manage
program 2. Visibility & strategic
External agencies com munity
3. Develop consistency 3. Co-creation 2 . Enel business
lines &
strategy functions
ss lines
Country, busine 4. Create digital Open 3. Guidelines fo
r 4. Written, verbal reports
& functions Power brand strategy roll-ou
t
3. Enel country-level
Channels 1. Social digital communication
Key Resources 4. Enhance Enel’s media, Web managers
Leadership in reputation
Design, all-digital 2. Face-to-face meetings
g
brandin grids and social platform.
expertis
e 4. Corporate
3. Social 4. Face-
Best Track record platform to-face
of results & workshops meeting
s
practice
expertise
Revenues or
Recognition f
Costs
” creation work
“Digital culture outstanding
Engineering Salaries
expenses Greater satisfaction
Training Media buys 4. Budget allocation More proactive work style
expenses
69

Internal Consulting
nts at EY
Consulting team for internal departme Customer Segments
Value Propositions
Key Activities
Key Partners
ns with
Consult on Consultatio
nges
g strategic change Make chang
e happen CO O on cha
Client-servin to be mad
e Client-serving
CO Os department COOs
department s
Help EY team Solutions learned
ze
operationali from Consultations with
EY technology teams changes team members Client-servin
g
other industries team
department
ices members
Quality Improve serv Channels
ent teams clients
managem
Key Resources delivered to
r change Face-to-face
Appetite fo
Improve employee meetings with
Client-serving de-
experience COO and teams
partment team Client project
members experience Topic-specific online
EY communities
Cross-industry
expertise
Revenues Good feeling of
Costs
lts of getting things done
Return/resu that really help
ported
0perating costs Investment in change changes sup
projects based on ROI
People development cognition
analysis (professional Personal re
and personal)
71

- Who are our Key Partners? - What Key Activities do our Value - What benefit(s) do we provide - How do we provide post-sales - Whom do we benefit?
- Which Key Resources do they Propositions, Channels, Customer to Customers? For example: support? (Marketing Phase 5) - Which Customers account
supply, or which Key Activities Relationships, and Revenue require? Functional - What kinds of relationships do for most of our Revenue?
do they perform? - Types of Key Activities: · Reduced risk we have in place now? - Strategically, who is our most
- What do they offer that is indispensable to our Make: design, develop, manufacture, solve, · Lower cost For example: important Customer?
model? deliver · In-person or telephone assistance - Who are our Customer’s Customers?
· Better convenience or usability
- Ways Key Partners create benefits: Sell: educate, advocate, demonstrate, promote, · Automated email or self-service Web forms
advertise · Improved performance
· Optimize or economize · Remote personal service via email, chat, Skype, etc.
Support: manage, maintain, supervise, otherwise · Getting a specific job done
· Reduce risk or uncertainty · User community or wiki
assist people who make or sell Emotional
· Provide otherwise unattainable resources or · Co-creation with Customers
activities · Enjoyment or pleasure
· Acceptance - What other relationships might Customers expect us
to establish and maintain with them?
· Belonging
· Approval
· Security
Social
· Elevated status
· Taste, style validation
· Affinity
Key Resources Channels

- What assets do our Value Propositions, - Through which Channels do we
Channels, Customer Relationships, reach Customers?
and Revenue require? - Which Channels work best?
- Four types of Key Resources: - Are there other Channels that Customers
People: skilled workers might prefer?
Tangible Property: vehicles, buildings, land, - Marketing Phases 1-4
equipment, tools 1. Awareness: How do prospects discover us?
Intangible Property: brands, methods, 2. Evaluation: How do we induce evaluation?
licenses 3. Purchase: How do Customers buy?
Money: cash, stock, receivables, lines of 4. Delivery: How do we deliver?
Costs Revenues
- What are our biggest Costs? - For what benefits are our Customers truly willing to pay?
- Which Key Resources and Key Activities are most expensive? - How do they pay now?
- What negative externalities do we generate? - How might they prefer to pay?
- Types of Costs: - How much Revenue does each Customer contribute?
Fixed: salaries, leases - What positive externalities do we generate?
Variable: cost of goods or services, contingent labor - What forms do payments take?
Non-cash: amortization, goodwill, externalities For example: · Licensing fee
Chapter 3 73

Technical training
Beatriz’s “as-is” training team model Customer Segments
Value Propositions
Key Activities
Key Partners
rs
Design & deliver Training adviso ents Engineers
ining art m
engineering tra to other dep
tants
External consul Boost engineer
ing
Co-developing training
capability s
programs Project manager
Design & deliver project
managment training
Outside trainers
Boost project
management Channels
Key Resources
capability
Corp R&D
Training staf
f assigns work
On-site workshops
Training methods & training sessions
Facilities
Revenues
Costs
Allocation from Beatriz’s team focused on

t
Programs budge Staff salary & benefits corporate R&D improving engineering and
budget project management capabilities
at ThyssenKrupp’s
800-employee Elevator
Innovation Center.
75

Original New Business Model Canvas
Technical training
elements elements
Beatriz’s training team model Customer Segments
Value Propositions
Key Activities
Key Partners
Design & deliver rs Engineers
engineering tra
ining Training adviso ents
a rt m
to other dep
tants s
External consul Design & deliver project Boost engineer
ing
Co-developing training Project manager
managment training capability programs
Co-deve Finance staff
Design & deliver PRODUCT loping t
Outside trainers
management training program raining
s
Boost project
management Channels Manufacturing staff
Key Resources
Division training capability
Corp R&D
departments f assigns work
Training staf Supply chain staff
Boost PRODUCT same Channels
management
Training methods capabilities On-site workshops Sales staff
& training sessions
Facilities
Revenues
Costs
Budget increase Beatriz’s new model includes
Allocation from
t
Programs budge Staff salary & benefits corporate R&D a new Value Proposition,
budget New Customers, and new
interdependencies with
additional departments.
77

Draft an Alignment Canvas
Second, grab some sticky notes and try dia-gramming your team and higher business models on an Alignment Canvas.
Use the completed canvas to see things you can:
1. Fix or improve
2. Eliminate (do less)
3. Reinforce (do more)
4. Realign
5. Take advantage of.
Higher Model: Lower Model:

Business Model Alignment Canvas
List parties who either Describe essential ongoing Describe Customer problems Describe the nature of the List in priority order the most
1) provide us with a Key actions that create, we solve (Jobs-to-be-Done), relationships we have to important Customer segments
Resource, or 2) perform communicate, facilitate benefits we deliver, and/or 1) provide post-purchase to whom we deliver Value.
a Key Activity on our behalf. evaluation of, sell, deliver, Customer needs we satisfy. Customer upport, and
or support our Value Include service/product names. 2) introduce Customers
Proposition(s). to other offers.
Describe essential Describe the nature of

ongoing actions whereby the relationships you have to
you create, communicate, facilitate 1) provide post-purchase
evaluation of, sell, deliver, or support Customer support, and 2) introduce
our Value Proposition(s). Customers to other offers.
List parties who Describe Customer List in priority order
1) provide you with Key Resources problems you solve, Channels the most important
a Key Resource, or 2) benefits you deliver, and/or internal or external
List the most important List key prospective
perform a Key Activity on Customer needs you satisfy. Customer segments to
resources (people, financial, Customer touchpoints
your behalf. intellectual, physical) we whom you deliver Value.
that 1) create awareness,
need to create, communicate, 2) enable evaluation,
sell, deliver, and support our 3) enable purchase, and/or
Value Proposition(s). 4) deliver Value.
List the most important List key prospective

resources (interests, personality, skills Customer touchpoints through
& abilities, experience, knowledge, etc.) which you 1) create awareness,
you have to create, communicate, sell, deliver, and 2) enable evaluation, 3) enable purchase,
support the team’s Value Proposition(s). and/or 4) deliver Value.
Costs Revenue & Rewards

List the biggest Costs incurred Describe the specific form of Revenue and/or
for Key Resources, Key Activities, Reward provided by each Customer segment.
List the biggest costs Describe Revenue or Rewards
and Key Partners. (financial, emotional, social, (financial, emotional, social, personal, etc.)
financial, etc.) of doing your work. you receive from Customers.

nvas
Lower Model:
Dining room team Business Model Alignment Ca
Higher Model: Modello restaurant Customer egments
Value Propositions owd:
Key Activities Cook 1. Dinner cr
Key Par tners nique amilies
1. Share u ce couples & f
Serve experience Face-to-fa
up d:
Clean nch crow
Dining room team 2. L u
sionals
Advert
ise 2. Tasty profes
convenience
Kitchen tea
m Serve ce
iable Face-to-fa 3. Private parties
3. Rel ce Dining room team does
Clear Bill elegan not serve private parties
Channels
Key Resources 1. Dining room 1. Modello
”
nality
“Perso 1. Happy diners 2. Dining room,
ello
Steve/Mod takeout 2. Dinner crowd:
Location couples & families
2. Share unique
experience 3. Catering
ef
Strong ch 1. Face-to-face
lity 3. Lunch crowd:
e rsona 2. & 3. Dining room professionals
P 3. Tasty convenience
Drive
Revenue & Rewards ,
r checks
Costs 1. Dinne s
ut bar tab
Salaries & ta keo
Time 2. Lunch Hourly wage
Rent checks
Tips
Cost of goods Energy 3. Catering fees
Stress
Chapter 3 81

additions nvas
Lower Model: Dining room team od el Business Model Alignment Ca
Higher Model: Modello restaurant to m
Customer Segments
Value Propositions owd:
Key Activities Cook 1. Dinner cr
Key Partners nique amilies
1. Share u ce couples & f
Serve experience Face-to-fa
up
Dining room team Clean ch crow
d:
2. L u n
Advert
ise 2. Tasty sionals
profes
convenience
Kitchen tea
m Mention Serve ce
catering able Face-to-fa 3. Private parties
3. Reli ce
Clear Bill elegan
gance Channels 1. Dining room 1. Modello

Key Resources
” Reliable ele
nality
“Perso 2. Dining room,
ello 1. Happy diners 2. Dinner crowd:
Steve/Mod takeout
couples & families
Location
2. Share unique 3. Catering
experience 1. Face- 3. Lunch crowd:
ef
The dining room team’s Strong ch Catering to-face professionals
revised model with lity
e rsona 2. & 3. Dining room Private parties
catering-related elements P 3. Tasty convenience
shown in red text. Drive
Revenue & Rewards ,
r checks Catering
Costs 1. Dinne s
ut bar tab commission
Salaries & ta keo
Time 2. Lunch
Rent checks Hourly wage
Cost of goods Energy 3. Catering fees Tips

Stress
Chapter 3 83

Customers: Value Proposition:
Who You Help Valuable Work Detector How You Help
P roblem or Potential S olution or S uggestion
Something is broken or not working well, or opportunity exists for something new. Fixes or repairs, or suggestions for new methods, services, or products.
I ssue Innovation
Nothing is broken, but rules, regulations, or conditions are changing. Proactively adapting things or circumstances to address issues.
N eeds R esource
Something is missing, or there is a desire or appetite for something new or different. People, money, materials, or intellectual property that satisfy the need or desire.
T rend Positioning Idea
Things are changing or moving in new directions, or people are behaving differently. Proposed ways to exploit trends or minimize risk.
Chapter 3 89

Draft Your Teamwork Table
First, try creating a teamwork table for a group you lead or support. Here is a template:
Role Tasks Customer Result of task success Consequence of task failure
Chapter 2 91

Personal Business Model Canvas
Who Helps You What You Do How You Help How You Interact Who You Help
(Key Partners) (Key Activities) (Value Propositions) (Customer Relationships) (Customer)
- Who helps you provide Value - List several critical activities - What Value do you deliver to Channel Phase 5. Followup: How do you continue - For whom do you create Value?
to others? you perform at work each day Customers? to support Customers and ensure they are satisfied? - Who is your most important Customer?
- Who supports you in other ways, and how? that distinguish your occupation from others. - What problem do you solve or need do you - What kinds of relationships do - Who depends on your work in order to get
- Does anyone supply Key Resources or perform - Which of these Key Activities does your Value satisfy? your Customers expect you to establish their own jobs done?
Key Activities on your behalf? Proposition require? - Describe specific benefits Customers enjoy as a and maintain with them? - Who are your Customers' Customers?
- Could someone do so? - Which activities do your Channels and result of your work. - Describe the types of relationships you have in place
Key Partners could include: Customer Relationships require? Consider whether the help you provide: now.
· Friends Consider how your activities · Reduces risk Examples might include:
· Family members may be grouped in the following areas: · Lowers costs · Face-to-face personal assistance
· Supervisors · Making (building, creating, solving, delivering, etc.) · Increases convenience or usability · Remote help via telephone, e-mail, chat, Skype, etc.
· Human resource personnel · Selling (informing, persuading, teaching, etc.) · Improves performance · Colleague or user communities
· Coworkers · Supporting (administering, calculating, organizing, etc.) · Increases enjoyment or fulfills a basic need · Co-creation
· Suppliers · Fulfills a social need (brand, status, approval, etc.) · Self-service or automated services
· Professional association members · Satisfies an emotional need
· Mentors or counselors, etc. Who You Are/What You Have How They Know You/
(Key Resources) How You Deliver (Channels)
- What do you get most excited - Through which Channels do your
about at work? Customers want to be reached?
- Rank your preferences: - How are you reaching them now?
Do you like dealing primarily with - Which Channels work best?
1) people, 2) information/ideas, or
3) physical objects/outdoor work? Channel Phases:
- Describe a couple of your abilities (things you 1. Awareness: How do potential Customers find out
do naturally without effort) and a few of your about you?
skills (things you have learned to do). 2. Evaluation: How do you help potential Customers
- List some of your other resources: appraise your Value?
personal network, reputation, experience, 3. Purchase: How do new Customers hire you or buy
physical capabilities, etc. your services?
4. Delivery: How do you deliver Value to Customers?
Investments (Costs) Rewards (Revenue)

- What do you give to your work (time, energy, etc.)? - For what Value are your Customers Describe your Rewards
- What do you give up in order to work (family or personal time, etc.)? truly willing to pay? Hard benefits might include: Soft benefits might include:
- Which Key Activities are most "expensive" (draining, stressful, etc.)? - For what do they pay now? · Salary · Satisfaction, enjoyment
- How do they pay now? · Wages or professional fees · Professional development
List soft and hard costs associated with your work: - How might they prefer to pay? · Health and disability insurance · Recognition
Soft costs: Hard costs: · Retirement benefits · Sense of community
· Stress or dissatisfaction · Excessive time or travel commitments · Stock options or profit-sharing plans · Social contribution
· Lack of personal or professional growth opportunities · Unreimbursed commuting or travel expenses · Tuition assistance, transportation · Flexible hours or conditions
· Low recognition or lack of social contribution · Unreimbursed training, education, tool, materials, or child care allowances, etc.
· Lack of flexibility, excessive availability expectations or other costs

A Personal Business Model Example
Sean Backus was an outstanding new graduate who joined programming teams at two companies in
succession—and leaders let him quit each time. Yet Sean’s Value Proposition—solving business prob-
lems with software—was perfectly aligned with each company. Here is how Sean’s personal business
model appeared during his first two jobs:
Sean Backus Personal Business Model Canvas

m
Progra e-mail/bug re
ports
Solve business Employer
proble
with software ms
Test code
Who You Are/ How They Know You/

What You Have How You Deliver
(Key Resources) (Channels)
Small & midsized

Interest in businesses
technology
rver
Mechanicall
y Upload code to se
Coding skill inclined
Investments Rewards
(Costs) (Revenue)
Salary Benefits
Stress from
excessive computer use
106 Section 2

A Happier Teammate, a Stronger Team
At his third job, Sean realized he had been neglecting his strong he would start training other programmers in debugging tech-
social tendencies. Programming-only roles had frustrated him, niques. Sean’s satisfaction soared, thanks to a more varied and
because the immediate work environment—solitary coding in cu- social workload, plus a newfound ability to pursue mastery, both
bicles—satisfied only his technology interests. Sean talked with for himself and other employees. He contributed even more in the
his manager about his interest in instructing, and the two agreed new role, because fewer software bugs meant happier clients.
s
Sean Backus NEW!! Old element New elemen
ts Personal Business Model Canvas
m
Progra e-mail/bug re
ports
Solve business Employer
Train coders proble
with software ms
Face-to-face
Test code
Other employees
Who You Are/ How They Know You/
What You Have How You Deliver
Improve skills, boost

(Key Resources) (Channels)
Small & midsized

Interest in
Values master client satisfaction In-person training businesses
y
technology
ertcehdanically
EilxltrovM Upload code to se
rver
sk e
Coding personalitinyclined
Investments Rewards
(Costs) (Revenue)
Stress from Benefits

Salary
excessive computer use
Professional
Variety development (mastery)
Chapter 4 107

Exercise: Define Your Professional Identity
Here is an exercise that helps colleagues de- Step 1. Define the Results You Produce gyperson. Their quotes should describe results,
fine their professional identity. You can con- Ask three different people who know you well to not activities. Also, ask quote-givers to describe
duct this exercise when interviewing someone briefly describe the results you produce at work. your work style; how you appear to others as you
who is about to join or leave your team, during People to be quoted can include current or for- produce results. Aim to compile 150 to 250
a formal development session, or simply as a mer Customers, partners, bosses, teammates, words of feedback or observations and write
break from the regular routine with colleagues a coach, commanding officer, teacher, or cler- them down on a sheet of paper. See the example
you now lead or supervise. This of quotes compiled by Ellen, who worked in cor-
four-step exercise is best com- porate communications for Boeing.
pleted in two sessions, with the
Step 1. The results of Ellen’s survey on environmental t
quote-gathering and style de- stewardship helped us change the environmental engagemen Step 2. Describe Your Style
scription tasks assigned in Steps 1 program. She went beyond a few interviews with Review the quotes carefully. Then, summarize
and 2 as “homework” to be sub- environmentally astute employees and used data, not just the style the quote-givers suggest you display
mitted in a separate session passion, to back up the ideas she wrote about. in producing results. Use key words from your
(mature or highly self-aware par- (Director of Environmental Services) quote collection, plus your own words. Write
ticipants may be able to complete this summary on a separate sheet of paper or
the exercise in a single session). When she organized the Design for Environment initiative sticky note. Here is what Ellen wrote for Step 2:
The only requirement is paper, during Engineer Week we had more volunteers than we
pencil, and a quiet place to hold could use. We actually had to turn people away. Clearly
the discussion—preferably in a values environmental quality and protections and gets
cafeteria, coffee shop, or other others engaged in these issues.
place you do not usually meet (Chief Engineer, Supplier Services Group)
with the person. Step 1 of the ex- a
ercise can be conducted with a Ellen initiated and then co-led the team that created
successful customer service recog nition progr am, despite
group as well. Begin with an as- n
surance that this is not a perfor- changes in direction from incoming executives and divisio
reorganizations. Her diplomatic style enabled her to coax
mance review—it is a performing
review! people along so that the program never got derailed.
(Corporate Communications Direc tor)
110 Section 2

If you assigned Steps 1 and 2 as homework, have the participant bring two copies of each of their documents to the
next session. Give the Step 3 instruction, then read over the documents while the participant works on Step 3.
Step 3. Summarize Your Professional Identity You may find some of the following debriefing ques-
Summarize your quote compilation in a brief, first-person tions helpful:
(“I”) statement. This should be a concise summary of • Do you have a strength others noticed but in which
what you deliver—your Value Proposition—and the you yourself lack interest?
way your deliver it. Keep your statement to 50 words • What do these quotes and descriptions suggest are
or fewer. Here is what Ellen wrote: key values you use to make judgements, choices, or
decisions?
• What is an ideal but feasible work scenario in which
Step 3. I intuitively uncover hid
that demand sharing. den stories you use and develop this professional identity?
People feel pride and accomplishmen A colleague’s professional identity will evolve and
reading what I write about them. t when change over time, often without that colleague realiz-
ing it. That is why it is important to start early and re-
I’m a corporate diplomat who shu peat this exercise periodically with direct reports or
organizational borders to producttles across colleagues you supervise. You are gathering feedback
sense-making stories. e strategic, about the manner in which people perform in various
roles. We have all seen people who achieve solid re-
sults but leave a trail of conflict, discord, or disengage-
ment in their wake. How people deliver results matters.
Step 4. Debrief
Compare your colleague’s compiled quotes from Step As with all leadership techniques, it is smart to prac-
1 with the Step 2 style description. Do they seem to be tice on your own before helping others. Try the Define
accurately capturing what other people said? Do they Your Professional Identity exercise together with a
show good awareness of their value delivery style? colleague or other thought partner.
Chapter 4 111

Jim asked Wayne to post an oversized
Valuable Work Detector on the office Who You Help Valuable Work Detector How You Help
wall and write in at least one element
related to FLR’s latest strategy decision. P roblem or Potential S olution or S uggestion
Wayne quickly matched his personal FLR’s proposals are filled with dry, unappealing Tell stories using cool data graphics.
Value Proposition with three PINT ele- quantitative data.
ments.
Jim smiled with satisfaction as he I ssue Innovation

watched Wayne lay out a potent new
way he could contribute to FLR. These
tools sure have made my job easier, he
thought. Focusing on an external object
and a physical task makes all the differ- N eeds R esource
ence. The HR director shook his head as Public hearing participants take too long to give Create cloud-based viewing platform featuring
he thought of the years he had spent feedback on large documents, graphics, and data up-to-the-minute versions of all documents.
working in a very different way. sets. Eliminate delay by enabling electronic feedback.
Within the hour both men saw with T rend Positioning Idea
startling clarity that Wayne was ideally
Smart cars and transportation grids are coming Build internal capacity and partner relationships
positioned to head up the new smart sooner than expected. needed to interpret and use massive data collected
transportation systems initiative within by sensors and monitors in smart transportation grids.
FLR. Days later the CEO agreed to the
move. Now, Wayne was happily on his
way to bigger things at FLR—and Jim
enjoyed the warm afterglow of true
leadership.
Chapter 4 115

When Fitting In Is a Matter of Skyle
Skill + Style Skyle Zones
Sometimes an individual’s problems within a team have more to do Skyle Zones is a four-quadrant matrix showing skill level on the horizontal
with style than substance. In part, this is because leaders tend to axis and style effectiveness on the vertical axis. For example, someone with
have a one-dimensional view of talent. They over-focus on skill low skill and an ineffective style scores in the lower left quadrant: The Oh,
while missing the power of the behavioral style by which results are No! Zone. Someone with strong skills and good style scores in the upper
delivered. This combination of skill + delivery style (skyle) goes be- right quadrant: The Flow Zone, and so forth.
yond what people can do to encompass how they do it. Good skyle
means being comfortable and friendly with other people and creat-
ing fit with role, leader, team, organization, and Customers. Poor Effective The Four Skyle Zones
skyle means being uncomfortable or aloof around others or creating Style
friction that diminishes results.
Show Zone Flow Zone
You can help people fit in—and improve your leadership—by be- Effective style Strong skills and effective
coming sensitive to your colleagues’ delivery style. The first step is (comfortable around others), but delivery style
to recognize that peoples’ professional identity includes personal results show more skill is needed
styles that vary in effectiveness. When someone shows good oper-
Low Skill High Skill
ating style, a leader’s challenge is to support its continued use—and
discourage overuse. A suboptimal style calls for early and possibly Oh, No! Zone Go it Alone Zone
frequent coaching. Low skill and ineffective Strong skills but results diminished
delivery style by ineffective delivery style
When someone exhibits poor style, broaching a conversation about (uncomfortable around others)
change can be tough. If the skill level is adequate, though, and the
real issue is style, you can balance the discussion by discussing both. Ineffective
A good way to do this is by using another third object tool: Skyle Style
Zones.
116

The Four Skyle Zones
Effective
Style
Show Zone Flow Zone
Low Skill High Skill
Oh, No! Zone Go it Alone Zone
Ineffective
Style
Chapter 4 119

1Q Career Collaboration Framework:
Is it time to Move Up?
The Three Questions
Three critical questions—whether consciously voiced or not—underpin the deci-
When you like your profession, your orga- sions of people who are striving to make progress at work. The Three Questions
nization, and your role—and you want to address the entire universe of possibilities for career-related action. As you read
progress—it may be time to Move Up. Moving this section, adopt the viewpoint of yourself as a career-seeking professional.
Up means progressing, not necessarily getting a
promotion. People define progress differently.
For some, it may mean greater responsibility
and higher compensation. For others, it
may mean shifting into a more satisfy-
ing role, regardless of rank or
compensation.
3Q
2Q
Is it time to Adapt Your Style?
Is it time to Move Out?
When you like your profession, your organi-
When there is no longer a good fit with your zation, and your role—but are falling short of the
profession, organization, or role, it may be progress you want—it may be time to Adapt Your
time to Move Out. Note that “moving out” can Style. Note two things: First, stagnation is most likely
mean staying with the same organization but your own responsibility rather than someone else’s
moving out of a team or role (or separating from a fault. Second, competence is probably not the issue.
supervisory relationship) that is no longer a good Instead, it is likely there is something about the style
fit. Forward-thinking leaders understand that by which you deliver value that can be adapted to
discussing “moving out” options is not the better fit your circumstances. Identifying and
same as questioning loyalty. True lead- addressing a needed style change requires
ers want to find the best place for good feedback and coaching (see page
people to exercise their 116 for a review of work deliv-
talent. ery style).
130 Section 3

Five Things to Remember About the Three Questions
First, everyone must answer the Three Questions over and over Fourth, the Three Questions approach legitimizes both the
again. This is not because they give the wrong answers each leader’s and the individual’s need to openly discuss Move Up,
time! It is because people constantly evolve as individuals, as Move Out, and Adapt Style options. People can contemplate
do the markets in which they work. That means people must their work and make choices in the privacy of their own minds.
regularly modify their personal business models: Adapting But it is far more effective for people to contemplate the Three
Style, Moving Out to a different team or new boss, or Moving Questions aloud with a leader and mutually agree how their
Up to contribute more effectively to a group’s purpose. talent can best be deployed within a team or enterprise. The
approach turns professional development—often a passive in-
Second, there is no need to ask the Three Questions daily. The tellectual concept—into a concrete activity.
questions come into play only for those who sense the need for
professional change—or when external forces demand it. Finally, using the Three Questions eases difficult work-related
conversations.
Third, leaders who use the Three Questions demonstrate
through action that they are serious about both their own and
other people's development. Through their actions, they ask
others to assume responsibility for undertaking work that sup-
ports team goals. This shared responsibility eases the burden
on leaders who are already hard-pressed to devote more time
to coaching.
Chapter 5 131

The Five-Stage Career Model
Stage 5: Lead Even Greater

Complexity or Start Over
Stage 4: L
ead More Complexity
or Beyond Your Specialty
Stage 3: Lead Your Specialty
Stage 2: Develop Your Specialty
Stage 1: Test Your Training
Chapter 5 141

Step 1 Step 2
In the “Colleagues” row of the table below write the names of one, two, Under each person’s name, choose either the Move Up? Move Out? or
or three people you lead. Choose people you think might benefit from a Adapt Style? cell and briefly describe evidence suggesting why you think
Three Questions conversation: for example, one or more of your highest- that Question is most relevant to the person at this time.
or lowest-performing team members.
Colleagues 1: 2: 3:
Move Up?
Evidence of need
to Move Up
Move Out?
Evidence of need
to Move Out
Adapt Style?
Evidence of need
to Adapt Style
Finally, which of the Three Questions is

Step 3 Decide which colleague is most important for you to speak with first. Below, write what you most relevant for you at this time? Do
will say when inviting them to have a Three Questions conversation: you have a colleague, friend, boss, or
partner who could tell you which ques-
tion they think is most relevant for you,
and why? Ask.
Chapter 5 153

Abandoning What, Starting Over With Why
Bob Fariss Fitness center franchise Fit For Life had always pro- decided to reverse the traditional gym strategy. In-
moted what it offered: beautiful facilities and fantas- stead of focusing on Fit For Life’s what—facility and
tic equipment—things few members could afford to equipment—he would promote Fit for Life’s why: fit-
own themselves. But the U.S. recession that began in ness and good health. Perry and his team defined
2008 nearly killed the business: customers quit in their why as “to change people’s lives.”
droves after deciding that gym membership was, af-
ter all, a luxury. The owner brought in a new partner The revamped company achieved good results by
to turn things around. presenting life-changing personal fitness, rather than
facility access, as the key membership benefit. Yet Fit
The franchise’s new CEO, Perry Lunsford, recognized For Life still faced a stiff challenge. It had successfully
that remaining members were those committed to redesigned its strategy, but now it needed employ-
long-term training programs—they did not consider ees to commit to the new why: to align each individual
gym memberships discretionary. Based on that in- me with the collective we.
sight, Perry, a fan of Simon Sinek’s Golden Circle,1
Fitness center
Fit for Life's Application of

The Golden Circle
We believe all lives can be changed for the

better and find purpose in our own lives Why
making that happen
The way we change lives for the better is How

through purposeful exercise programs
We sell affordable, effective fitness What

programs in beautiful, friendly facilities
158

The first person hired from the new advertisement doubled his gym’s sales conversion rate in his
first four weeks. “The goal is not to hire people who need a job,” says Bob. “As Simon Sinek says,
the goal is to hire people who believe what you believe.” Now, all Fit For Life staff get the why—here
is a trainer's personal business model:
ment Canvas
Business Model Align
Lower Model:
Trainer
Higher Model: Fit for Life Customer Relationsh
ips
Customer Segments
Value Propositions Prospects

Key Partners
Key Activities
Work together
Sell on goals Members
Train
Purposeful
exercise
Maintain Clients
facility Train Work together
on goals
Industry Record client
partners
Educate progress
Channels
Referrals My clients
Key Resources
Lovable Gym
Excellent
od trainers
training meth Social media My teammates
lity
Outstanding faci Earn money while Client
Fitness center
changing lives sessions

Personal s Personality
gs
network Team meetin
e
Experienc Desire
Revenue & Rewards
Training
Facility rs hip cont racts Satisfaction
Costs
M embe
Payroll Time contracts
Merchandise
retention Energy Salary
Customer sales
stment
on Emotional inve
Customer acquisiti
160

Business consultancy
Personal Strategy Canvas
Karen: Account Manager to Consultant
Network
Personality
Skills + Abilities
Knowledge
Join Practice Create new

Books to read: Toastmaste
rs open-ended contacts via
1. Influence questions Meetup, LinkedIn
2. Speed of Trust
Find
finance mentor Find
Control experienced
ign perfectionist consulting
e se r v ice des impulses! mentor
Tak course
training a.com ening,
d Practice list ,
via Lyn deep asking
summarizing
Financial Fitness
Physical + Mental Fitness
OK here :)
New exercise
program
167

Things to Try on Monday Morning
The Golden Circle
What is the underlying non-financial Why

purpose or cause driving you?
What sets you apart from others in How

the way services or products are offered?
What services or products do you offer? What
174 Section 3

Define the Why4
Here is a real challenge: use the table below to define the what, how, and why for your enterprise, team, and yourself.
Your team and enterprise what should be easy: these are services and/or products offered. The how should be
straightforward as well: your business model shows how services and/or products are delivered. But the why can
be tough. Hint: Describe your enterprise Value Proposition. How does it relate to the reason your organization
exists?
Enterprise Team You
What
How
Why
Chapter 6 175

Nuclear started as a standalone product team . . .
The Reorganization Commercial

Fabrication Defense
Nuclear
Boris had started Spartan’s nuclear business as a small, special- Spartan Specialty
ized “product team” reporting directly to the CEO. After Boris Fabrications
hired Lianne, sales jumped, thanks in large part to Lianne’s exten- Marine
sive regulatory expertise. So when health problems forced Boris
to take a six-month leave of absence, he pushed for Lianne to take
over the nuclear team—and become Spartan’s first woman man-
ager.
Transportation
Other Spartan executives argued—correctly—that Lianne lacked

leadership experience beyond project management. These exec-
utives included general manager Damian Glynn, who also led
Spartan’s Commercial Fabrication business unit. Commercial . . . then was repositioned as a Commercial Fabrication sub-team
Fabrication served infrastructure builders by constructing every-
thing from bridge components to oil rigs.
Defense
In the end, Lianne was promoted to manager of the nuclear team. Commercial
But in a nod to those who felt she needed more leadership expe- Fabrication
rience, her nuclear team was made into a sub-team reporting to Nuclear
Damian’s Commercial Fabrication division.
Spartan Specialty
The logic was twofold: 1) Damian would provide extensive fabri-
Fabrications Marine
cation leadership experience, and 2) Nuclear was similar to the
Defense group—another team with a highly uniform Customer
base—which also reported to Commercial Fabrication. The reor-
ganization made sense on paper. But in practice, it was a mess. Transportation
Chapter 7 181

Business Model Basics
The next day, Boris demonstrated enterprise, team, and per- months. Determined to win support for her nuclear team’s “to be” model, she
sonal business model basics, then helped Lianne draw the immediately called Damian’s secretary and scheduled a meeting.
Nuclear team model. The insights flowed as she saw how the
nine Canvas elements were interrelated. “This lets us visual- But her meeting with Damian flopped.
ize how we operate as a business within a business,” she said.
“I’m going to ask my team to diagram our model.”
Building
Block Notes on “as is” Model Notes on “to be” Model
Two days later found Lianne and four of her staff busy work-
ing with oversized Canvas posters in a conference room, di- Value Proposition: We “deliver on time We build reputations: our Customers
agramming “as is” and “to be” models of the Nuclear team. Value
and as promised.” That’s Activity boost their own credibility by listing us
“This is great stuff!” exclaimed a senior project director, after Proposition
any vendor offers, not Value as a fabricator in their proposals
the colleagues had spent nearly three hours diagramming
and discussing their team business model. “I’ve worked here Vague concept of internal Spartan recognized as our most
for eight years and managed projects worth tens of millions Customers Customers, Value Proposition to important Customer. Our Value
of dollars. But no ever explained our business model to me. Spartan undefined Proposition to Spartan is big earnings
Why did this take so long?”
Key Over-reliance on a few managers Need more and broader training in
“I know what you mean,” Lianne sighed. “But insights take as
Resources with regulatory expertise regulatory/safety affairs
long as they take. Let’s list up what we’ve learned from ana-
lyzing our team model.” She stepped to a whiteboard,
Compliance is a key source of reputation
grabbed some colored markers, and wrote down points as Constant pressure/worry over high
Costs and earnings, not “administration.”
her colleagues called them out. compliance (administration) costs
It needs even more investment!
“I’m going to share this with upper management and open Independent thinking, heroic Interdependent thinking, collaborative
some eyes and ears!” Lianne exclaimed as the meeting dis- Key
“go-it-alone” attitude, reluctance “we need some help” attitude, more use
banded. She felt more excited about work than she had in Partners
to use outside partners of outside partners
184 Section 3

Spotting a Gap: Innovate vs. Comply
Higher Model:
Commercial Fabrication Lower Model:
Innovate! Nuclear Division Comply!

Business Model Alignment Can
Key Partners
Key Activities
vas
Value Propositions
Design Build Customer Segments
Material suppliers 1. Good earnings
Innovate! and stronger In-person 1. Spartan Specialty
reputation inspections Fabrications
Contingent labor Comply!
procurers Design 2. P rovide robust, “This tool juxtaposes two
Process bids, work one-of-a-kind On-site inspections 2 . Infrastructu business models to check
order changes, infrastructure re
Build contracts, inspection builders for alignment—or misalign-
components Contract monitor
documents ing ment,” said Boris. He un-
Key Resources rolled a poster-sized paper,
Safety taped it to the wall of Li-
inspectors Highly-skilled Channels
workforce 1. Top earnings and Attend conferences anne’s office, and explained
do
Can-do, will- strong reputation Respond to RFPs Alignment Canvas basics.
Regulators spirit 1. Spartan Specialty
Specialized Fabrications “Now, draw Commercial Fab-
equipment, tools Executive outings
Material 2. B uild client rication as your higher model,
suppliers Highly-skilled reputations and the Nuclear team as
workforce Attend conferences
2. Nuclear power your lower model,” the men-
Specialized Respond to R industry contractors
equipment, t Regulatory F Ps tor instructed. He sat and
Costs
ools expertise
watched as Lianne outlined
Revenue & Rewards
the two models on the poster.
Overtime 2. Bid price
Materials Materials Wages 1. Operating
Wages budget
2. Change order 1. Operating
Contingent w High-cost insp charges budget
ages Contingent
wages other outsiection,
de 2. Bid price
services 2. Overtime fees
186 Section 3

Building
Block Commercial Fabrication Nuclear Division
Watchword: Comply! Focus on documenting
Key Watchword: Innovate! Focus on
bids, contracts, change orders, inspections,
Activities designing and building from scratch
building to plan Lianne and Boris compared and
contrasted the Commercial Fabri-
Customers value innovation, speed,
Customers value compliance, caution, and cation and Nuclear team business
Customers and cost-cutting. They are lightly models for a full hour and a half.
orthodoxy. They are highly regulated
regulated Then Lianne suggested listing key
differences between the two mod-
Varies widely with negotiated change
Predictable and reliable revenue stream, els. Boris walked briskly to the
Revenue order/overtime fees. Based on
based on careful calculations whiteboard and grabbed a black
general estimates marker. Lianne made observations
Low outside contractor expenses; High outside contractor expenses; quality and Boris wrote them down.
Costs safety inspectors are already on inspectors, auditors, specialized engineering
“This is amazing,” said Lianne. “And
payroll consultants are not on payroll
it gives me an idea how I might get
Minimal training needs. Can draw Strong need for training in regulatory/ Damian on board.”
Key
people from other Spartan divisions safety affairs. No such expertise
Resources
as needed elsewhere in Spartan
Chapter 7 187

Making the Case with PINT
For months, Lianne had been pushing Damian “Well, I must say I’m impressed,” Damian ad- Lianne fought the urge to remind Damian that
for approval to hire two additional quality en- mitted when they were done. “I remember the he had pushed for Nuclear to be under his
gineers. She requested a three-hour meeting Canvas from an executive MBA class I took a group. But she saw her opening, and surprised
with her boss—and she had to wait two weeks few years back, but thought it was just for herself with the words that tumbled out. “Well,
to get one. But the wait was well worth it, Lianne startups. And this is my first time with the Damian, let’s do something about a situation
thought later. PINT tool.” He looked down at his boots for a neither of us likes. How about we present this
moment and hesitated before speaking. Alignment Canvas together at the next execu-
At the session, Lianne taught Damian Canvas tive off-site and call for action on it?”
Customers:
basics, shared her Nuclear team model, thenCustomers: Value Proposition:
“Listen, Lianne,” Damian continued as he looked Value Proposition:
Who You Help Valuable Work Detector
Who You Help Valuable Work
HowDetector
You Help How You Help
unveiled an Alignment Canvas showing the up, “I’ve got my hands full running Commercial Damian floored Lianne with his quick, positive
Commercial Fabrication model juxtaposed Fab, overseeing Nuclear and Defense, plus reply.
P roblem or Potential P roblem or Potential S olution or S uggestion S olution or S uggestion
with the Nuclear team model. Finally, she un- doing general management. Maybe your needs
rolled a large, handwritten document. “Boris haven’t shown up enough on my radar. But you “It’s a deal,” he said.
calls this the Valuable Work Detector,” she make a good case why Commercial Fab and
“I just call it the PINT tool.”
said. Customers: Nuclear don’t align. Feels sort of like a forced
Customers: Value Proposition: Value Proposition:
Who You Help Valuable Work Detector
Who Youfit.”
Help Valuable Work
HowDetector
You Help How You Help
IPssue
roblem or Potential
I ssue
P roblem or Potential
Innovation Innovation
S olution or S uggestion S olution or S uggestion
Who You Help Valuable Work Detector How You Help
Reorganizations disrupt team business models. P roblem or Potential S olution or S uggestion

Collaboratively define and agree on team models
Yet we lacked shared definitions of our team models
everyone can understand and share.
both before and after the reorganization.
Adjust actions and resources accordingly.
Actions and resources are not ideally aligned.
I ssue Innovation
N INssue R IRnnovation
N eeds R esource
eeds eeds esource esource
I ssue Innovation
Nuclear’s recruitment and compensation needs differ from
A different compensation scheme will ensure Nuclear
Commercial Fabrication’s. For example, Nuclear needs T rend Positioning Idea
continues to meet its earning goals for Spartan. Success

certified quality engineers who are more highly paid than
depends on hiring these more expensive professionals.
the safety inspectors used by Commercial Fabrication.
188 Section
T rend 3 T rend P Positioning
N eeds N eeds Rositioning
esource
Idea
R esource
Idea

A Launch Brief for You
It is time for you to start using team business models. Refer back to the Draft Your Team’s Why Statement.
Then, revisit the Define the Why exercise. After you have thought carefully about those two exercises, jot
down your thoughts in the Launch Brief below:
1. Why do I want to do this?
2. What would success look like? (define one measurable success indicator)
3. Define steps needed to make it happen.
4. When you have worked through your Launch Brief, share it with a thought partner and
discuss how to proceed.
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Business Models

by Tim Clark and Bruce Hazen,

BusinessModelsForTeams_2P.indd 1 2/15/17 1:20 PM

BusinessModelsForTeams_3P.indd 6 3/3/17 4:59 PM

Co-creators of Business Models for Teams vii

BusinessModelsForTeams_3P.indd 7 3/3/17 4:59 PM

BusinessModelsForTeams_1P.indd 6 1/11/17 4:41 PM

An organization expressed using LEGO® bricks

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Customer Customer Segments

Costs Key Resources Channels Revenue

BusinessModelsForTeams_1P.indd 27 1/11/17 4:41 PM

The Five-Phase Marketing Process e-mail, teleconference, Web,

BusinessModelsForTeams_1P.indd 31 1/11/17 4:41 PM

BusinessModelsForTeams_1P.indd 37 1/11/17 4:41 PM

BusinessModelsForTeams_2P.indd 39 2/15/17 1:20 PM

Back of the House Front of the House

Role Tasks Result of task success Consequence of task failure

correct execution enjoyment for guests unfavorable social media postings

BusinessModelsForTeams_1P.indd 41 1/11/17 4:41 PM

Cook meals rowd:

No single worker Channels

BusinessModelsForTeams_1P.indd 43 1/11/17 4:41 PM

Chinese Sell stoves

The EcoZoom Model: Non-Paying Customers,

BusinessModelsForTeams_1P.indd 45 1/11/17 4:41 PM

Health Reduce smoke-related

BusinessModelsForTeams_1P.indd 47 1/11/17 4:41 PM

BusinessModelsForTeams_1P.indd 51 1/11/17 4:41 PM

on Monday Morning they perform?

Try Modeling Your Enterprise

BusinessModelsForTeams_1P.indd 54 1/11/17 4:41 PM

BusinessModelsForTeams_1P.indd 55 1/11/17 4:41 PM

Role Tasks Internal

Modello Good reputation,

Cooks Correctly and consistently Modello Good reputation,

Promptly and thoroughly Modello

Eliminate cleanliness- Unpredictable dining experience,

BusinessModelsForTeams_1P.indd 61 1/11/17 4:41 PM

Train, supervise ly deliver 1. Modello (Steve)

cilities Dining room

BusinessModelsForTeams_1P.indd 63 1/11/17 4:41 PM

BusinessModelsForTeams_1P.indd 65 1/11/17 4:42 PM

BusinessModelsForTeams_1P.indd 67 1/11/17 4:42 PM

digital strategy rollout

BusinessModelsForTeams_1P.indd 69 1/11/17 4:42 PM

BusinessModelsForTeams_1P.indd 71 1/11/17 4:42 PM

Key Resources Channels

BusinessModelsForTeams_1P.indd 73 1/11/17 4:42 PM

Allocation from Beatriz’s team focused on

BusinessModelsForTeams_1P.indd 75 1/11/17 4:42 PM

BusinessModelsForTeams_1P.indd 77 1/11/17 4:42 PM

Higher Model: Lower Model:

Describe essential Describe the nature of

List the most important List key prospective

Costs Revenue & Rewards

BusinessModelsForTeams_1P.indd 79 1/11/17 4:42 PM

BusinessModelsForTeams_1P.indd 81 1/11/17 4:42 PM

gance Channels 1. Dining room 1. Modello

Stage 5: Lead Even Greater