A value proposition is a statement that clearly identifies what advantages customers will receive by purchasing a particular product or service. Applied to HR, the HR value proposition is systemic approach that makes visible and credible the value-added contribution of HR.
The Value Proposition Canvas makes it possible to zoom into the details of the value proposition and customer segments that are targeted. Value proposition and customer segments are two of the nine building blocks of the Business Model Canvas. The Business Model Canvas is a (visual) tool to create and analyse business models. Both canvases are applied to explain the added value of HR
7. Key partners – describes the network of suppliers and
partners that make the business model work
The 9 Building Blocks
Key activities – describes the most important things a
company must do to make its business model work
Key resources – describes the most important assets
required to make a business model work
Value proposition – describes the bundle of products and
services that create value for a specific customer segment
Customer relationships – describes the types of
relationships a company establishes with specific
customer segments
8. Channels – describes how a company communicates with
and reaches its customer segments to deliver a value
proposition
The 9 Building Blocks
Customer segments – defines the different groups of
people or organisations an enterprise aims to reach and
serve
Revenue streams – represents the cash a company
generates from each customer segment
Cost structure – describes all costs incurred to operate a
business model
12. HR Business Model Canvas – Value proposition
Value proposition – the collection
of products and services a business
offers to meet the needs of its
customers. Applied to HR, HR offers
the deployment of the right people
at the right place in the right time.
13. HR Business Model Canvas – Key activities
Key activities – the most important
activities in executing a company’s
value proposition. Applied to HR, HR
conducts activities related to input,
throughput and output of people.
14. HR Business Model Canvas – Key resources
Key resources – the resources that
are necessary to create value for the
customer. Applied to HR, HR has
technology, administrators and
advisors at its disposal. Also high-
potential employees are important.
15. HR Business Model Canvas – Key partners
Key partners – in order to optimize
operations and reduce risks of a
business model, organization
usually cultivate buyer-supplier
relationships so they can focus on
their core activity. Applied to HR,
key activities can be outsourced or
purchased by Business Process
Outsourcing, a Shared Service
Centre, Interim Services or head
hunters. Also relationships with
legislators and regulators are
important.
16. HR Business Model Canvas – Customer relationships
Customer relationships – to ensure
the survival and success of any
businesses, companies must
identify the type of relationship
they want to create with their
customer segments. Applied to HR,
customer relationships are built and
maintained through meetings, self-
service and personal advice.
17. HR Business Model Canvas – Channels
Channels – a company can deliver
its value proposition to its targeted
customers through different
channels. Applied to HR, HR is
delivering the right people in the
right place in the right time through
an HR portal, a staff shop, advisor
and telephone and (e-)mail.
18. HR Business Model Canvas – Customer segments
Customer segments – to build an
effective business model, a
company must identify which
customers it tries to serve. Applied
to HR, HR is serving the board of
directors, management and (future)
employees. In addition, (external)
customers and investors are seen as
a customer segment.
19. HR Business Model Canvas – Revenue streams
Revenue streams – the way a
company makes income from each
customer segment. Applied to HR,
HR gets a budget at its disposal to
ensure the deployment of the right
people at the right place at the right
time.
20. HR Business Model Canvas – Cost structure
Cost structure – this describes the
most important monetary
consequences while operating
under different business models.
Applied to HR, HR has staffing,
technology and office costs.
23. Product leadership – the focus is on development,
innovation, design, time-to-market, high margins in a
short timeframe.
Value disciplines
Operational excellence – the focus is on efficiency,
streaming operations, Supply Chain Management, no-
frills, volume counts.
Customer intimacy – focus is on CRM, deliver products
and services on time and above customer expectations,
lifetime value concepts, reliability, being close to the
customer.
24. Model Treacy and Wiersema
Product
leadership
Customer
intimacy
Operational
excellence
Value
proposition
26. Products and services – describes the bundle of products
and services offered to the selected customer segment
The 6 Building Blocks
Gain creators – describes how the bundle of products and
services create customer gains
Pain relievers – describes how the bundle of products and
services alleviate customer pains
Value proposition:
27. Customer job(s) – describes what a specific customer
segment is trying to get done
Pains – describes negative emotions, undesired costs and
situations, and risks that customers experience or could
experience before, during, and after getting the job done
The 6 Building Blocks
Gains – describes the benefits customers expect, desire or
would be surprised by
Customer segments:
31. HR VP Canvas – Products and services
Products and services – describes the bundle
of products and services offered to the
selected customer segment. Applied to HR, HR
manages workforce in a flexible, open
organisation with an eye for changes at such a
motivational and on the organisation
customized method (value discipline) that the
workforce is as much as possible equipped
with skills with which they can give their work
shape and content without frequent
interference by management. Reputation and
relationship with investors and customers are
strengthened indirectly.
32. HR VP Canvas – Gain creators
Gain creators – describes how the bundle of
products and services create customer gains.
Applied to HR, HR delivers a contribution to an
organisation by:
• organizing the presence of talent, individual
responsibility, the right people in the right
place and a structure that's right;
• to recruit the right people, to train them in the
right way, develop and reward them, to
communicate with them in the right way so
that there is confidence and involvement at
the strategic direction;
• leadership development;
• offer of HR analytics to management;
• to act as a coach and facilitator of
management/employee.
33. HR VP Canvas – Pain relievers
Pain relievers – describes how the bundle of
products and services alleviate customer pains.
Applied to HR, HR delivers a contribution to an
organisation by :
• the conduct of a payroll and HR
administration and generate (management)
information;
• supporting the management and
employees at reorganization, redeployment
and firing;
• to have specialist knowledge of laws and
regulations and to inform management and
workforce about laws and regulations;
• to ensure the welfare and safety of
employees;
• adhering to good employment principles.
34. HR VP Canvas – Customer job(s)
Customer job(s) – describes what a specific
customer segment is trying to get done.
Applied to the (internal) customers of HR, they
try to get the following done:
• management deploys, stimulates and
develops workforce in order to achieve
strategy and objectives;
• an employee is committed in order to
achieve organisational goals and individual
goals and aspirations;
• an investor tries to increase the value of an
organisation by increasing revenue,
reputation and credibility;
• a customer acquires a product or service
and is trying to build a relationship.
35. HR VP Canvas – Gains
Gains – describes the benefits customers
expect, desire or would be surprised by.
Applied to the (internal) clients of HR, expects
or wishes :
• management to have the right workforce at
the right time and in the right place;
• an employee and management to have
reliable and relevant information;
• an employee meaningful and interesting
work, live up to ambitions, influence and
that promotion and higher pay are
provided;
• an investor confidence in the future;
• a customer to have a good relationship.
36. HR VP Canvas – Pains
Pains – describes negative emotions,
undesired costs and situations, and risks that
customers (could) experience. Applied to the
(internal) customers of HR :
• employee/manager experience large
administrative burden;
• manager struggles with the question of
how to address reorganisation and
downsizing;
• unawareness of laws and regulations by
employee/manager;
• manager has inadequate view on potential,
ambition and performance of workforce;
• manager has no availability of employees;
• fear of investor that organisation comes
negative in the news (strike);
• no customer empathy.
37. Inspired by
Business Model Generatie –
Alexander Osterwalder
The Discipline of Market
Leaders – Treacy en Wiersema
Value Proposition Design –
Alexander Osterwalder
38. Inspired by
The HR Value Proposition –
Dave Ulrich
A Freehand Drawing Search
Engine – Pictofigo
Slidedocs – Nancy Duarte