BT4VET
Mapping
The aim of WP2 is to break down the perception of VET as a self-referential system that relies on public funding to deliver vocational training. To dismantle this perception, it is necessary to intervene internally within the VET system (i.e. at organisational level, within the training institutions, to overcome endogenous resistance to change) and externally (i.e. to modernise and streamline the way training organisations are perceived and known).
The objective of WP2 is therefore to intercept the needs, criticalities + potential and opportunities of VET providers to become ‘service providers’ that based on private sector criteria (efficiency, effectiveness, cost-effectiveness) are able to develop lines of services, products, solutions that meet the demand market (of training services, but also and above all of services related to training, such as Human Resources, Innovation, Internationalisation, Networking, Business Management).
As such, WP2 is instrumental in achieving the objectives of the project Business Transformation for VET (BT4VET) project, in particular:
GENERAL OBJECTIVE: to support innovation and competitiveness of VET by making more resilient VET providers who have the potential to become ‘agents of change’ of the socio-economic development of their territories, becoming providers of integrated services for the human and professional resources value chains of the context of intervention.
SPECIFIC OBJECTIVE 1: to increase the competences of VET managers/leaders in general by enabling them to develop sustainable positioning strategies that enable them to become providers of integrated services to companies and operators of social development on the territory and overcome the two biggest barriers to increasing the level of efficiency and attractiveness of the VET system: 1. internal inertia + 2. External resistance.
BT4VET WP2 Results Flowchart
BT4VET Linking of metrics with models
| Operative Models | ||||||
|---|---|---|---|---|---|---|
| Metrics | Revenue Streams Identification | Profitability | HR & Staffing | Business Model | Cash Flow | Value Proposition |
| 1. Growth Rate (Net sales revenue) | Reflects whether the company is successfully expanding its revenue streams. A consistent growth rate means the company is scaling and exploring new ways to generate income. | Indicates financial health by showing how effectively the company is turning its revenue into profit. A high growth rate typically leads to improved profitability. | Higher sales often lead to an increased need for staff, especially in sales, operations, and customer support. | A scalable business model relies on continuous revenue growth. High growth rate supports the sustainability and adaptability of the model. | Positive growth impacts cash flow as higher revenue increases available funds for reinvestment and operations. | A growing revenue base enables the business to continually enhance its offerings, leading to a more attractive and competitive value proposition. |
| 2. Customer Acquisition Cost (CAC) | Helps determine how much it costs to acquire new customers, which directly affects how effectively revenue streams are developed. A lower CAC means better efficiency in revenue generation. | If CAC is high, it reduces profitability. A lower CAC allows more profit to be retained after customer acquisition. | High CAC might suggest inefficient staffing or marketing strategies, requiring HR to focus on cost-effective approaches. | A business model with high CAC may be unsustainable long-term unless it is paired with high CLV or strong revenue streams. | High CAC can strain cash flow due to upfront costs of customer acquisition. Effective CAC management ensures that customer acquisition is profitable over time. | CAC impacts the company’s value proposition by determining how much is invested in each customer. A lower CAC means more resources can be spent on improving the value offered to customers. |
| 3. Return on Marketing Investment (ROMI) | Reflects how well marketing investments are converting into revenue streams. A high ROMI ensures that marketing activities contribute effectively to revenue generation. | A high ROMI leads to increased profitability because it means marketing dollars are being used efficiently to generate profitable sales. | Marketing strategies and spending have direct implications on staffing needs, especially in marketing teams. Efficient marketing drives better performance from HR investments. | A business model that is heavily reliant on effective marketing will directly benefit from high ROMI, as it enhances customer acquisition and retention. | A high ROMI improves cash flow as more revenue is generated for each dollar spent on marketing, creating a more financially stable business. | By demonstrating effective use of marketing dollars, ROMI strengthens the company's value proposition and its ability to meet customer needs through efficient promotional strategies. |
| 4. Net Profit Margin (NPM) | A high net profit margin means the company is effectively converting sales into profit, which reflects a sustainable and efficient revenue stream model. | A key profitability metric that shows how much profit the company keeps from each unit of revenue, directly impacting overall financial performance. | Profitability often influences staffing decisions. Higher margins may lead to increased investment in HR, while low margins may prompt cost-cutting measures. | A sustainable business model typically requires a healthy profit margin. It ensures the company remains viable and can reinvest in growth opportunities. | Profit margins influence cash flow as they directly determine the amount of cash retained after expenses. Higher margins improve financial flexibility. | Strong net profit margins allow for reinvestment into the business, improving the value proposition by enhancing product/service quality and customer experience. |
| 5. Revenue vs Forecast | If actual revenue is close to or exceeds the forecast, it indicates that the company is effectively identifying and optimizing revenue streams. | Variance from forecasted revenue can indicate issues with profitability, such as higher costs or unexpected market conditions. | Accurate forecasting often relies on HR’s ability to manage sales, marketing, and operational expectations. Misalignment can indicate problems in staffing or resource allocation. | Misaligned forecasts can signal weaknesses in the business model, such as overly optimistic projections or market misinterpretations. | Significant differences between actual and forecasted revenue can cause cash flow issues, especially if expenses are higher than expected or revenues are underperforming. | Regularly hitting or exceeding revenue forecasts enhances the value proposition by signaling reliability and strong business performance to customers and stakeholders. |
| 6. Net Promoter Score (NPS) | A higher NPS indicates that customers are more likely to recommend the business, suggesting strong and loyal revenue streams. It is an indicator of revenue potential from referrals. | A high NPS typically leads to repeat customers and positive word-of-mouth, which improves profitability over time. | A high NPS suggests that HR is doing a good job in hiring and retaining employees who contribute to customer satisfaction. | A business model focused on customer loyalty and satisfaction will likely score well on NPS, making it more sustainable in the long run. | A high NPS indicates strong customer retention, which ensures more predictable and stable cash flow from repeat customers. | NPS directly impacts the value proposition by indicating the level of customer satisfaction and loyalty, which can be a competitive differentiator. |
| 7. Customer Retention | High retention improves the predictability and stability of revenue streams. A loyal customer base means less dependence on acquiring new customers continuously. | Retaining customers is more cost-effective than acquiring new ones. This leads to higher profitability by reducing marketing and acquisition costs. | Retention strategies often require HR investment in customer support, account management, and quality assurance teams. | A business model centered around long-term customer relationships will see higher retention rates, making it more resilient to market fluctuations. | Stable customer retention ensures more consistent cash flow, reducing the volatility caused by customer churn. | Strong customer retention enhances the value proposition by emphasizing long-term relationships, trust, and satisfaction over one-time transactions. |
| 8. Customer Lifetime Value (CLV) | A high CLV indicates that the company is successfully creating long-term relationships with customers, driving sustained revenue streams. | CLV directly impacts profitability by showing the return on investment for acquiring and retaining customers. A high CLV means the company is making a good profit from its customer base. | HR’s role in customer service, retention, and relationship management is key to maximizing CLV. Highly engaged staff can significantly increase CLV through superior service. | A business model that focuses on maximizing CLV ensures long-term sustainability and profitability, as customers are retained and continuously generate revenue. | High CLV contributes to long-term, predictable cash flow, as customers consistently provide value over an extended period. | Maximizing CLV enhances the company’s value proposition by emphasizing the ongoing value provided to customers over their lifetime with the business. |
| 9. Customer Engagement Score (CES) | High CES means that customers are highly engaged, which increases the likelihood of consistent revenue streams through repeat purchases and referrals. | Engagement directly correlates with profitability, as engaged customers are more likely to convert into repeat buyers and spend more over time. | CES can highlight HR effectiveness in training employees to improve customer engagement and satisfaction. High engagement typically correlates with better customer service. | Business models that prioritize customer engagement (such as subscription models or loyalty programs) are more likely to experience higher CES scores, leading to greater stability. | Strong engagement fosters customer loyalty, ensuring more predictable cash flow over time. Engaged customers lead to repeat business and higher revenue generation. | A high CES is a strong indicator of a compelling value proposition. It shows that the company is meeting customer needs and engaging them in ways that drive continued business. |
| 10. Churn Rate (CR) | A low churn rate supports stable revenue streams by maintaining a solid customer base. High churn disrupts the business’s ability to retain and grow revenue. | High churn reduces profitability by increasing customer acquisition costs and lowering repeat business. | HR must address issues such as customer service quality, product satisfaction, and employee turnover, as all can affect churn rates. | High churn rates can indicate flaws in the business model, such as poor customer service, product quality, or pricing strategies. | Churn negatively impacts cash flow as it leads to lost revenue and higher costs associated with acquiring new customers to replace those lost. | A low churn rate strengthens the value proposition by showing that the business offers a compelling and consistent customer experience, leading to long-term satisfaction. |
| 11. Revenue per Employee (R/e) | A high revenue per employee indicates that the business is efficiently utilizing its workforce to generate revenue, supporting sustainable revenue streams. | Higher revenue per employee improves profitability, as it means more income is being generated relative to workforce size. | This metric reflects the efficiency and productivity of the workforce. HR plays a crucial role in maximizing employee performance and ensuring that labor costs align with output. | A business model that maximizes employee productivity will have a higher R/e, making it more scalable and efficient. | Higher revenue per employee means that the company generates more cash from its workforce, improving overall financial flexibility. | A high R/e showcases the value proposition of a business that is highly efficient, which can be a key selling point to investors and customers alike. |
| 12. Training Spend per Employee | Investing in employee development increases their ability to contribute to revenue generation, leading to more effective revenue streams. | Training improves employee skills, leading to more effective and profitable work. Well-trained employees are more likely to drive sales and reduce inefficiencies. | HR plays a direct role in training spend. This investment is crucial for building a skilled, motivated, and productive workforce. | A well-trained workforce supports a resilient business model by adapting to market changes and customer needs effectively. | Investing in training improves employee productivity, which contributes to long-term cash flow by enhancing revenue generation capabilities. | Training is part of the company’s value proposition, showing customers that employees are skilled and capable, leading to better service and product delivery. |
| 13. Website Traffic-to-Lead Ratio | A higher traffic-to-lead ratio indicates that the company is effectively converting web visitors into potential customers, strengthening revenue streams. | Better conversion rates from website traffic into leads directly enhance profitability by increasing the number of qualified opportunities. | HR’s involvement in optimizing customer-facing teams can improve the effectiveness of the lead conversion process. | A high traffic-to-lead ratio reflects a business model that effectively attracts and converts potential customers, maximizing revenue potential. | The ability to convert traffic into leads positively impacts cash flow, as more leads typically result in higher revenue generation. | A strong traffic-to-lead ratio demonstrates the company's ability to provide value to customers through its online presence, increasing its competitiveness. |
| 14. Employee Turnover Rate | High turnover can disrupt revenue streams by increasing recruitment and training costs, and by losing experienced staff who contribute to revenue generation. | High turnover negatively impacts profitability by increasing operational costs, especially in HR and training. | HR plays a central role in managing turnover and improving retention strategies. High turnover may indicate systemic HR challenges. | A business model reliant on consistent staff stability benefits from lower turnover, as it reduces disruption to operations and revenue generation. | High turnover can strain cash flow as the company incurs additional costs for recruitment, training, and lost productivity. | Low turnover enhances the value proposition by showing that the company has a stable and experienced workforce that can deliver consistently. |
| 15. Employee Net Promoter Score (eNPS) | A high eNPS indicates that employees are satisfied and motivated, leading to a more effective and productive workforce that drives revenue streams. | Engaged employees contribute to higher productivity, which positively impacts profitability. | HR plays a key role in fostering employee satisfaction, which is reflected in a high eNPS. Satisfied employees are more productive and loyal. | A business model focused on employee satisfaction and engagement will see higher eNPS scores, supporting long-term stability and growth. | High employee satisfaction leads to better productivity and lower turnover, positively impacting financial resources and cash flow. | A high eNPS indicates that the company is able to attract top talent, which strengthens its value proposition in both the labor market and customer experience. |
