Business Models and Skills Standard
:: Business Model
:: Skills Standard
The U.S economic output is now 75% service and service related
These service and service related industries range from hospitality
to IT consulting to contract R & D. There over 25 million
entry-level, frontline workers in the service economy.
A key aspect of the service economy is that more and more knowledge
and information is passing between a business and its customers
at every level from IBM consultants to housekeeping staff at
the Mandarin Oriental. Whether it be chemical formula for outsourced
research or a special order on an on-line retailer, employees
are needing to interact with customers at a more sophisticated
level that integrates relationship and information.
This shift, supercharged by technology, is causing a need for
entirely new business models with entirely new associated skills
for firms to continue to compete, innovate and grow.
The Business Model — Value Creating Relationships
In response to these market realities, businesses are developing
a new business model based on Value Creating Relationships in
their frontline workplaces.
Value Creating Relationships is an emergent concept in the economy
that places investment and focus on frontline workers as a key
to revenue generation. Firms that embody this concept have collaborative
communication and team based frontlines that push decision-making
down to entry level workers and allow them to create value in
relationship with peers, managers and customers.
Value Creating Relationships are those which promote delight
for customers, success for workers and growth for businesses.
These relationships begin at the intersection of a firm’s
technology-driven access to and use of information with its human
capital on the frontline. These leveraged resources are the building
blocks of enhanced customer experience and frontline innovation.
Value Creating Relationships are a complex mix of culture, technology
and strategy. Despite this complexity a firm’s ability
to create competitive advantage through Value Creating Relationships
is based on a simple, integrated standard of: communication,
interpersonal, decision-making and learning skills.
Firms that leverage these skills to build Value Creating Relationships
among employees, managers and customers create a platform for
Employees benefit from: applied skills/learning; coaching; company
knowledge and access to opportunity.
Managers (firm) benefit from: increased workplace productivity,
reduced turnover, increased customer loyalty.
Customers benefit from: trusted information, enhanced customer
experience, expectations exceeded.
Market leaders across many industry verticals are responding
to this emerging customer relationship trend with a strategic
focus on entry level and frontline workers as a key to business
Best Buy, Whole Foods, Four Seasons, Southwest Airlines, Zappos
and the Container Store are among the vanguard of these firms.
Is your firm ready for enhanced frontline value? Read on and
learn how to answer this question.
The Skills — Being Work Ready in
a knowledge and service economy
Work Readiness is being able to add value in frontline jobs
in entry level workplaces. Though creating value through relationships
is complex, the foundational skills needed are actually remarkably
An integrated mix of communication,
interpersonal, decision-making and learning skills and sub-skills are the key to building value
|Speak so other can understand
||Cooperate with Others
||Resolve conflict and negotiate
|Read with Understanding
|Use Math to solve Problems
||Take responsibility for learning
|Solve problems and make decisions
The National Work Readiness Council has developed a standard
skills profile that provides a snapshot of these skills and related
tasks as pertains to frontline work in entry level workplaces.
The Work Readiness Profile provides a jumping off point for
firms that wish to explore their own strengths at building value
creating relationships. Take a look and assess your frontline
workplaces’ value creating opportunity. Link profile
Creating Relationships Overview
Value Creating Relationships Matrix
Human Resource/Training Professionals
Costs of hiring wrong people
level hiring made simple
NWRC Module Description
NWRC Skills Profile