The Business Canvas Model

By Greg Jordan, King University

Dr. Greg Jordan spent nearly two decades as president of King University in Bristol, Tennessee. Since retiring from his position with King University, Dr. Greg Jordan has continued to develop higher education business strategies.

The business canvas model provides an integrated structure within which to build or modify a business plan. At the core of any business, including higher education, lies its value proposition(s). In exchange for tuition & fees, students are offered transformational learning experiences leading to an academic or professional degree. Calculating the value proposition of academic and professional degrees is complicated since a significant portion of the learning experience is reflected in personal, social and intellectual growth.

Introduction

While this type of growth is invaluable, it is nonetheless costly. Quantifying the value of higher education is often determined by the anticipated life time value of the degree, the annual salary multiplied by the number of working years.

The business canvas model (BCM) addresses the following: value proposition(s), customer relationships, customer segments, key partners, key activities, key resources, channel management, cost structure and revenue streams. A viable business entity, one with a sustainable competitive advantage, is one that has developed a comprehensive, integrated plan utilizing all of the BCM components.

Business Canvas Model

Because the cost of higher education has increased significantly, well above annual cost of living adjustments, greater levels of financial support have been required from key stakeholders. Those stakeholders include federal and state governments, student families, alumni, friends of the schools, creditors, employers and students. As a result of these increases in financial support to higher education, the industry has received greater scrutiny which includes quantitative metrics and analytics regarding institutional value proposition(s). Higher education is ill-prepared for this level of scrutiny.

These analyses and inquiries reveal the challenges of managing higher education institutions.

BCM

Unfortunately, this additional scrutiny is exacerbated by the challenges of diminishing institutional resources, reduced target markets, diversified customer segments, evolving academic delivery systems and distributed learning sites, an expanding regulatory environment, uncertainty regarding demand for existing programs, modified partnerships, deferred maintenance and new construction, cost of academic and administrative technology, increasing debt structures and diminishing cash flows. Developing a comprehensive, integrated business plan has its challenges in higher education.

Greg Jordan led and served King University through the largest expansion program in its history, guiding its development from a baccalaureate degree granting institution to a doctoral degree granting institution. The University now offers an associate’s degree, bachelor’s degrees, the M.Ed., MBA, MSN and DNP (2013) and is comprised of seven schools.

Education Expansion

Net tuition revenue was increased by 729% between 1997-2013. Financial resources were increased by successfully completing two capital campaigns, the largest of which exceeded $50 million.

Public-private partnerships with Tennessee and Virginia Community College Systems were developed, creating fourteen new instructional locations. King became the largest recipient of transfer students among Tennessee independent institutions from public institutions in Tennessee in 2012 and 2013.

These initiatives were accomplished through the development of a new comprehensive, integrated business model in support of the institution's mission and vision.

Conclusion