Business model canvas for Teams

1. I. A Bigger Theory of Work
A. Chapter 1. From Me to We
 The four things that motivate people
Purpose People want to be part of something greater than
themselves
“To become a winning team”
Autonomy People want to direct their own lives.
Show your team how to make things happen
Relatedness People want to feel connected.
Teach your team mates who to work together and make
plays.
Mastery People want to get better and better at something
Show them how to build their skills
 At work, people struggle to balance personal needs (What’s in it for me?) and
team aims (What’s best for the group?)
 Leaders must address both the self-serving me and the group-serving we
 Leading a team is challenging because it demands moving back and forth
between personal needs and group goals
 The goal is to shift people toward we behavior by artfully recognizing
everyone’s me

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How Does Me-to-We Work?
 The me-to-we approach works by adopting a Bigger Theory of Work.
 The Bigger Theory of Work
 defines work not in terms job but in terms of roles.
Job Descriptions Role Descriptions
Define duties, tasks, and
expected outcomes
Focus on relationships to other
people
Example. On the project team, Eric could be given the role of
communication director. “Communications Director” is not a job titles. It is
a role that Eric will play in communicating the team’s actions to the rest of
the organization.
 sees work in terms of business models and not in terms of
organizational structure
Organization Charts Business Models
Describe reporting
relationships within an
enterprise
Describe what an
organizational system actually
does, for whom, and how its
elements are related

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 can be used to create a “systems view” of organizations at 3 levels:
Enterprise Business
Model
Shows how an entire organization
creates and delivers value to
Customers outside the
organization
Team Business Model
Shows how a group creates and
delivers value, often to Customers
inside the organization
Personal Business
Model
Shows how an individual creates
and delivers value
All 3 levels are a stacked tier. Viewing an organization this way reveals
work interdependencies and begins imparting a sense of relatedness
to people who may be accustomed to thinking of work in terms of “jobs”
that rarely transcend group or functional boundaries. This is where
people begin discovering how an organization really works and how
they (the employee) fit in.
“Accidental” Leadership and Three Thinking Styles
 People often become leaders “by accident”, that is they are promoted
mainly because of technical or functional competence, not necessarily
because they exhibited strong management or supervisory skills. As a
result, many new leaders must literally learn to think differently.
Characteristics of the different career stages are:
 Dependent Thinking
 “testing their training”
 Seek direction and depend on others to teach them new
or better ways of working

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 Independent Thinking
 After developing a specialty and a reputation for
competence, they tend to trust their own experience and
become more self-directed
 Interdependent or Systems Thinking
 When people start leading others, they must about
systems and about relationships between people and
groups of people
 Business Models for Teams shows strategy and operations together so
people understand what to do at work each day
When Words Are Not Enough --- or Too Much
 To understand a system, leaders need physical tools third objects) that allow
people to see an entire system at once.
 Third objects
 efficiently symbolizes or model relationships too complex for words
 gently guide users away from the abstract toward the concrete
 reduces conflict by focusing people on the work that needs to be
done, reducing the effects of personality, politics, and the tendency
of the group to adopt the opinions of the most articulate speaker
 highly engaging and inspire people to change behavior
Clarifying Your Role
 New leaders tend to over-focus on matching their behavior to the job they
have just been hires to do. But they rarely explain their leadership role to
those they supervise.
The Approach: A Quick Overview
1 Participants draw
personal business
models
 To depict what they currently do at work
(“as-is”) & what they would like to do in
the future (“to-be”)

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 Participants get to think beyond
activities and recognize who they help at
work
 The process of creating these models
prompts participants to become more
communicative and aware of gaps in
their own ability to contribute
2 Participants define
their team models
 Using the same Canvas tool, team
members collective model the work they
do as a group
 Visually clarifies the team’s purpose and
causes participants to recognize the
other groups that they help at work
thereby acknowledging enterprise-level
connections
3 Participants map
individual
contributions into their
team model
 Participants map their individual
contributions onto the team model,
pinpointing where they create or add
value to what the team does
 Brings focus to the inefficiencies & the
opportunities & identifies the important
work that needs to be done
 Creates compelling opportunities for the
participants to commit new tasks//roles
in front of their colleagues
Defining Your Team’s Why
1. Keep it short and memorable
2. Communicate Both Why and What
3. State the Higher Purpose
4. Write in Third Person
You Can Do It!
 This book focuses on teaching the process of modeling, rather than
encourage the pursuit of the perfect model

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 Using business models means discussing an organization’s purpose and
strategy
 You can experiment with business models without the buy-in of other leaders
or disrupting long-standing processes
II. Business Models
A. Chapter 2. Modeling Organizations
 The Business Model Canvas is a toll for describing business models and
expressing them in a usable way
 The Canvas is a single sheet printed in nine (9) different rectangular blocks
 A relationship map depicting 9 logically-linked elements. Each rectangular
element is called a building block
 Each building block describes people, places, things, intangible assets, or
actions needed for the enterprise to run effectively

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The Business Model Canvas
Customer Segments  Customers are the reason enterprises exist
 Different Customer groups require different Value
Propositions, and may require different Channels or Customer
Relationships
 An enterprise may have paying, non-paying, or cost-inducing
Customers
 Enterprises often earn far more from one Customer group
than from another
 External Customers reside outside the organization. Internal
Customers reside in the same organization.
Value Propositions (VP)  Bundles of services or products that create benefits (value) for
Customers
Key Partners
People or organizations that
perform Key Activities or
provide Key Resources to the
enterprise
Customer Relationships
Post-sale communications to
ensure Customer satisfaction
and other additional benefits
Value Propositions
Benefits *solutions or
satisfactions) delivered via
services or products
Key Activities
Actions needed to create,
communicate, sell, or deliver
Value Propositions to
Customers
Customer Segments
One or more distinct groups
that benefit from Value
Propositions, whether
purchased or not
Revenue Stream
Funds received when
Customers pay for Value
Proposition
Channels
The touch points by which
the enterprise communicates,
sells, and delivers Value
Propositions
Key Resources
People, property, money, or
intangibles essential for
creating and delivering Value
Propositions to Customers
Cost Structure
Expenses incurred acquiring
Key Resources, performing
Key Activities, or working
with Key Partners

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 Can provide different types of benefits:
Functional  The VP accomplishes a
specific task
Social  The VP improves how
Customers are perceived by
others
Emotional  The VP helps Customer feel
a certain way
Channels and Customer
Relationships
 Together they comprise the 5-phase marketing process
where an enterprise communicates, sells, and delivers its
VP, then follows up to ensure that its Customers are satisfied
and to propose more benefits
 Channels are touch points or pathways by which the
enterprise:
­ creates Awareness
­ induces Evaluation
­ enables Purchase
­ executes Delivery
 Customer Relations are what happens after prospects are
converted to Customers. The enterprise provides post-sales
support and offers Customers added benefits in the form of
other VP
 Most enterprises use the same Channel touch points for both
new and existing Customers

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The Five-Phase Marketing Process
Marketing Process Touchpoints Actions
Awareness In-person, telephone, chat, e-
mail, teleconference, Web,
wiki, mail-in warranty or
response, co-creation, etc.
Ask Customers about their
experience, resolve problems,
deal with claims, co-develop
services or products, introduce
additional Value Propositions
Evaluation In-person or online
demonstration, trial, or
interview, mailed or digital
sample, etc.
Present, offer trial or sample,
test, share testimonials
Purchase Online, on-site, in-person, call
center, etc.
Other payment methods and
terms preferred by Customers:
cash, debit/credit, electronic,
bank transfer, etc.
Delivery On-site/off-site acceptance
(service) or pick up (product(
parcel delivery service, digital
transfer, online activation, etc.
Perform service in-person or
off-site, ship or transfer goods,
transfer files or activate
account, etc.
Follow-up In-person, telephone, chat e-
mail, teleconference, Web,
wiki, mail-in warranty or
response, co-creation, etc.
Ask Customers about their
experience, resolve problems,
seal with claims, co-develop
services or products, introduce
additional VPs
5
1
2 3
4
2
3
1
4
5

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Revenue  Funds the enterprise receives when Customers purchase
services or products and are satisfied (they do not claim
refunds)
 Customer payment preferences signal the actual value for
which Customers are willing to pay
 Be sure to differentiate between payment form (lease vs
outright purchase) and payment method (credit card vs
PayPal)
Key Resources  Include only those assets truly essential for creating,
communicating, selling and delivering VPs
 Ignore secondary assets
 Types of resources:
People  Skilled & unskilled workers,
including employees,
contractors, temporary hires, and
specialized service providers
Tangible Property  Vehicles, computers, buildings,
land, equipment, furniture, tools,
supplies
Intangible
Property
 Brands, methods, systems,
software, patents, copyrights,
licenses
Money  Cash, stock, receivables, lines of
credit, financial guarantees
Key Activities  Important things an organization must do to make its business
model work, specifically creating, communicating, selling, and
delivering VPs --- then follow-up to ensure Customer satisfaction
 Types of Key Activities:

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Make  Includes designing, developing,
manufacturing, problem-solving, or
delivering services or products (services
are “consumed” as they are delivered)
Sell  Includes advocating, demonstrating,
promoting, or advertising specific
services or products (or the enterprise
itself)
Support  Activities not directly associated with
either making or selling. Examples
could be supervising, accounting, or
maintaining computer networks
Key Partners  It might sometimes be too expensive or too inefficient to own all
Key Resources or perform every Key Activity by one enterprise.
So they find partners who provide help or resources essential to
making the business model.
 Key Partners may differ from suppliers. Suppliers often
compete with each other to win the enterprise as a Customer
and they can easily be replaced. Key Partners, on the other
hand, are not easy to find nor are they easy to replace. The
enterprise may have to compete with other enterprises to
acquire a Key Partner.
Costs  Expenses incurred in acquiring Key Resources, performing Key
Activities, or engaging Key Partners
 A business model is sustainable only if Revenue consistently
exceeds (or at least equals) Costs.
 Costs may be:
Fixed salaries, leases
Variable cost of goods or services, contingent labor

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Non-cash amortization, goodwill, externalities
Sample: Henry’s Photocopier Business Model
This Canvas describes Henry’s business model at a very high level.
Customers  Office operations of corporations, government
offices, medical facilities, and other large and mid-
sized enterprises comprised the Customer base.
Together the 9 building blocks
describe a business model which can
be depicted using the Business Model
Canvas.

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Value Proposition  Henry’s enabled easy, low-cost information
sharing. “Value” means benefits to Customers,
and benefits are often intangible
In this case, benefits were best created by leasing
the product than by selling it
Channels and Customer
Relationships
 Copiers installed on-site served as the Channel’s
delivery mechanism
 Customer Relationships were handled by
maintenance technicians and sales people visiting
Customer sites to confirm satisfaction
Revenue  Generated by lease payments, per copy charges,
supply fees and service fees.
Key Resources  Includes electrophotgraphy (“xerography”),
patents and related investments, a strong
reputation, outstanding technical expertise, highly
capable managers and Engineers
Key Activities  Manufacturing copiers, maintaining copiers,
selling leases are the 3 most important activities
followed by R&D.
Collectively, Key Activities create Value but they
do not constitute Value in and of themselves from
a Customer’s perspectives.
Key Partners  Some patents were supplied by Battelle ( a global
research and development organization
committed to science and technology)
Costs  Main costs were salaries, manufacturing costs of
goods, building and equipment leases, and
inventory financing

14. Using Business Models to Strengthen Teamwork
 Traditionally, business modeling has focused on strategy: how to create and deliver the
best possible benefits to Customers.
 Another way business modeling can help organizations is in strengthening internal
teamwork by shoring people why their work matters.
Example: Restaurant Modello
Role Tasks Result of Task Success
Consequence of Task
Failure
Customer-facingworkers
Servers Takes orders correctly &
politely, serve meals,
deliver checks, collect
payment
Positive dining
experience, bigger tips,
positive feedback on
social media
Negative feedback on
social media, unsatisfying
dining experience,
Busser Clears dishes, cleans
tables and chairs
Guests enjoy clean table
setting that enhance
dining experience, bigger
tips, positive feedback on
social media
Guest experience
diminished by dirty table
setting, smaller tips,
unfavorable social media
postings
Non-Customerfacingworkers
Chef Create excellent menu
and ensure its correct
execution
Good food, convenience
for guests, enjoyment for
guests
Disappointing dining
experience, loss of
Customers, smaller tips,
unfavorable social media
postings
Cooks Correctly and consistently
prepare menu items
Predictably positive dining
experience, bigger tips
Unpredictable dining
experience, loss of
Customers, smaller tips,
unfavorable social media
postings
Dishwasher Clean tableware Impression of cleanliness
and good hygiene, bigger
tips
Guest experience
diminished by unclean
tableware, smaller tips,
unfavorable social media
postings
Developing “Situation Savvy”
 In a well run organization, like Modello, employees natural develop good situational
awareness or “situation savvy”. Employees physically hand off tasks to one another, so
they must cooperate to be effective in their roles.

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 But social media and tips alone do not tell the complete story. No single employee at
Modello performs all 3 Key Activities so, to fully understand their collective performance,
staff members discuss --- from their respective view points --- what happened during the
shift. This builds situation savvy.
 There are many challenges internally that make situational savvy difficult to achieve and
people end up working within isolated silos failing to grasp how and whom they benefit
through their work.
 Using the Canvas and a teamwork table causes employees to locate their work within the
overall logic of the business operations and see how their day-to-day activities benefit the
Customer.
­ Leads to better collaboration and self-directed action
­ Lets leaders spend more time leading instead of problem solving or mediating
conflict

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How to Work with the Canvas
 Diagramming a business model usually means recoding both facts and assumptions.
 Getting the model “right” is less important than teaching and using common vocabulary to
define the organization’s overarching logic.
 General guidelines:
­ Work BIG. Print the canvas in A1 size or even larger. Avoid standard sized paper.
­ Collaborate. Team up with colleagues and/or Customers, suppliers, prospects, or
even 3rd
party experts and people who represent different perspectives (different
ages, occupations, functional areas within the business, economic status, etc)
produces better results. Use your Canvas sessions to model the kind of
collaborative behavior you want to encourage in your workplace.
­ Write on Sticky Notes and not on the canvas itself so you can easily change,
discard, or move items. It also reminds everyone that business models change
and expire.
­ Use drawings
­ Write One Idea per Sticky Note
­ Avoid “Orphan” Notes. All sticky notes should be related to elements in other
building blocks
­ Use color to create meaningful patterns, not to decorate such as distinctions
between facts & assumptions, between different Customer segments, to suggest
a modification to a building block, etc.
­ Keep Canvas simple when starting out
­ Use thick-tip back markers, not pens and pencils
­ Work on walls rather than tables
­ Use precise language, like use “sell” rather than “sales”
­ Distinguish between facts and hypothesis
­ Stay in the same tense
­ Present canvases one note at a time. When presenting to the team or to others,
start with a blank canvas and add notes one at a time as you tell the business
model “story”, building block by building block. This is less overwhelming.
B. Chapter 3. Modeling Teams
 Every enterprise has a business model, and the Business Model Canvas
shows at a glance how that enterprise works.

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 Start by answering 2 crucial questions and the first is, Whom do I help? In
other words, Who is my Customer?
Who is My Customer?
 Your main Customer is whoever makes the decision to purchase your services. In the
case of Modello Restaurant, Steve Brown, is the Restaurant Manager. If you are
employee of the restaurant, Steve is your main Customer because he decided to purchase
your services by hiring you. Steve is an internal Customer because you and he work for
the same organization.
 Who are Steve’s main Customers? They would be Modello diners because they decided
to purchase meals at his restaurant. Diners are external Customers.
 Whom do I help? is a crucial question because few people gain true satisfaction be helping
only themselves. In helping others, one of the four key human motivators is unlocked:
Purpose.
 Purpose is easiest to spot with external customers. At Modello, waiters experience
firsthand helping diners enjoy a special night. But people who serve internal Customers,
like the chefs and dishwashers, can have a harder tie seeing how their work helps others.

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How Do I Help?
 A dishwasher may know that he helps the restaurant but to him, the restaurant might be
an impersonal entity. When he understands whom he helps --- the cooks & servers
whom he sees every day --- the whom becomes personal.
Role Tasks
Internal
Customers
Results of task
success
Consequence of
task failure
Chef
Design, update excellent
menu
Modello (Steve)
Good reputation,
financial success
Reputational /
financial loss
Train & supervise Cooks
Improved
professional
skills, bigger tips
Smaller tips, poor
social media
reviews
Explain menu, train
servers to recommend
dishes & upsell, prevent
allergic reactions
Servers
Repeat external
Customers,
bigger tips
Lose external
Customers,
smaller tips, poor
social media
reviews
Cooks
Correctly and
consistently prepare
menu items
Modello (Steve)
Good reputation,
financial success
Reputational /
financial loss
Correctly and
consistently prepare
menu items
Servers
Repeat external
Customers,
bigger tips
Lose external
Customers,
smaller tips, poor
social media
reviews
Dishwasher
Promptly and thoroughly
wash dinnerware,
cookware
Modello (Steve) Positive image Poor image
Promptly and thoroughly
wash cookware
Cooks
Work proceeds
smoothly
Delayed work,
frustration
Promptly and thoroughly
wash dinnerware
Servers
Eliminates
cleanliness-
related
Unpredictable
dining
experience, loss

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complaints,
bigger tips
of Customers,
smaller tips,
unfavorable
social media
postings
 The second crucial question all employees much ask themselves is, How do I help? It is
important for one to understand teamwork’s core: interdependency.
 One of a leader’s most important tasks is to help others see why their work maters to
someone.
 People who grasp teamwork --- who they help and how they help --- have built a
foundation for self-organization and self-direction.
How to Diagram a Team Business Model
1. Define your team’s internal and external Customers.
 For some employees, the external Customer can only be an indirect customer.
 The best way to serve external Customers is by first serving the business and
internal teams that collectively deliver value to the Customers.
2. List a separate Value Proposition for each.
 When drawing a business model, a person or group can serve in ore than one role
 After defining Customer & Value Propositions, filling out the rest of the model is
straightforward.

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Draw Your Team’s Business Model
1. Customers – number sticky notes will help indicate priority and match Customers to Value
Propositions.
2. Value Propositions (VP) – each customer should have a separate Value Proposition.
State it in terms of a benefit, solution, or outcome rather than in terms of an activity.
3. Channels & Customer Relationships – different customers may require different Channels
or Customer Relationships. Use numbers or different colored notes.
4. Key Activities – name specific activities required to create & deliver the VP (often activities
that people want to avoid!). Leave out admin or routine tasks.
5. Key Resources – what you need to deliver your VP? Pay attention to essential elements
that are missing or underdeveloped.
6. Key Partners – include internal and external partners. Specify what they will provide or
what they will do and the critical role Key Partners can play in forging relationships.
7. Revenues and Cost – non professional development and other financial benefits that team
members will enjoy

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C. Chapter 3. Modeling Teams
D. Chapter 4. Modeling People
III. Teamwork
A. Chapter 5. Begin With Me
B. Chapter 6. Align Me with We
C. Chapter 7. Align We to We
IV. Application Guide
A. Chapter 8. Application Guide
B. Chapter 9. New Ways to Work