Editor’s note: This article is an update on modelH, the dynamic co-creation forum created by Kevin Riley and Associates, Innovation Excellence, and Batterii where healthcare innovators from around the world are building a foundation for new business models in healthcare. Their goal is to co-create an open source business model canvas that applies specifically to the US healthcare system.
Learnings on Key Resources for the Business Model Canvas for Healthcare (modelH)
We just wrapped up our 12th business building block sprint on Key Resources. In summary, the sprint for Project 1.12 on Key Resources completed 2 objectives:
- Questions to ask on the canvas for the Key Resources
- Locating Key Resources
1. Questions to Ask on the Canvas for the Key Resources Block
We defined the questions that should be added to our business model canvas for helping practitioners define their Key Resources.
- What Key Resources do our Value Propositions require?
- What Key Resources do our Customer Relationships require?
- What Key Resources do our Channels require?
- What Key Resources do our Revenue Streams require?
- What level of Key Resources will your Cost model support?
- What employment Value Proposition can you offer to your Key Resources?
- What staffing model will you use to ensure the right amount of resources?
- What sourcing model will ensure you get access to the right level of talent?
We outlined methods and factors associated with determining the right amount of skill level necessary for Key Resources in your business model. Determining the right amount of Key Resources for your business model to succeed requires considerable planning, estimating and forecasting (and sometimes lucky guesswork). We noted that for any business – startup or legacy – employee labor represents one of, if not the, most significant drivers of cost. Managing these costs appropriately so that your business succeeds over the long-term also requires a focused and significant investment in planning, estimating and forecasting. Hiring too many workers will result in unnecessary cost to your business and ultimately to your customers. And yet hiring too few workers will likely result in overworked and stressed-out individuals who will be unable to deliver on your value proposition, and who will eventually look for other places to use their talents.
We shared that while your company might not be ready for a full-blown staffing plan, hiring the right number of individuals requires some form of in-depth planning. Foremost, it is important to clearly list the specific outcomes, objectives or dependencies that are linked to each phase and value stream associated with your Value Proposition. Similarly, establishing multiple assumptions about the growth path of your business, accounting for busy times, slow times, seasonality, product demand, etc. and then estimating the number of individuals required to deliver each component of the value proposition were all cited as essential in building your staffing model(s). The accuracy in determining the right number of resources was noted to be largely dependent on how well each phase of the value proposition was defined. Be aware of the questions (listed above) in the Questions to Ask on the Canvas for the Key Resources Block section: What Key Resources are required (not nice to have) by your Value Proposition, Customer Relationships, Channels, and Revenue streams? What Key Resources will your cost model support that allows your business to grow and thrive?
Finding the right skill level for Key Resources was noted as being more complex than determining the staffing models or framework most appropriate (and cost effective) for your business. As is the case with building accurate staffing models, determining and finding the right level of Key Resources is highly dependent on clearly defining the work and the requirements (education, skills, competencies, experience) to do the work (a job or role description). The job description, whether formally or informally described, is viewed by most organizations as the foundational component for the sourcing, recruitment, and acquisition of employees. The job description is the common language that allows your company to communicate to the sources of talent what your company needs. We also cautioned that while the job description is key to understanding the specific requirements of a job or role, no individual or job operates entirely independently. While considering the people skills involved for a particular job, pay particular attention to understanding how a certain set of job requirements complements or duplicates those of other roles.
There are countless resources available to healthcare companies of all sizes that are seeking talent. These resources range from free or nearly free web postings of your talent needs to the enlistment of a highly specialized recruiting firm to find unique and scarce skill sets. Companies across the maturity spectrum are using social networking sites such as LinkedIn as an invaluable source (and increasingly the first source) for locating highly skilled and experienced healthcare and other types of talent.
In summary, the tasks of sourcing, recruiting, acquiring, deploying, managing, engaging, and retaining your talent (Key Resources) are often cited as the most critical aspects for any business’s success. I advocate that you ensure your Key Resources mirror the Key Activities required by your business model building blocks. If you ensure that your Key Resources are clear on the business model as a whole, and on how their role helps bring it to market, you will create the single most positive impact on the delivery of your value proposition. It takes one person to come up with an idea – but it takes a team acting in concert to make it into a successful business. Make sure you allow your great idea to flourish through the good work of your Key Resources.
What is Next?
I will be publishing the learnings from 1.13 Key Partners next week. We just finished up a short two-week sprint on Costs and Revenue, and we’ll be publishing our learnings about those building blocks soon. Next up on the modelH Co-Creation Forum, we’ll be tackling Platforms, and then Externalities — and then phase 1 will be done!
Interested in what we are doing?
Step up to the plate and become involved. As I mentioned, we are getting close to the end of the first major phase of our modelH project, so get involved today before it’s too late!
- Click here to learn more: https://www.modelh.org/modelh.htm
- Click here to join: https://bit.ly/modelH_joinup
- Follow us online at: https://twitter.com/ModelHForum
image credits: Kevin Riley & Associates, modelH Business Model Canvas for Healthcare, drawings by Mike Werner; modelH.org
This was cross-posted from Kevin Riley & Associates BLOG – https://bit.ly/modelhkeyactivities
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Kevin Riley is an entrepreneur, healthcare executive, and business model innovator who works with start-ups and legacy companies across the healthcare industry. He founded and was CEO of a national health care retail company, has played leadership roles for national retail health start-ups, and served as the first Chief Innovation Officer of a major insurance plan. In 2006 he started Kevin Riley & Associates Health Model Innovation to help companies with the convergence of health care and the consumer.