strivve engr245 2017

Market: Resegmenting as niche entrant

Where we started...

Helping gig workers use their customer ratings to get better

career opportunities

Darren, an uber driver

Where we ended up!

Helping low-skill workers advance their careers with ‘better resumes’

We interviewed 107 people

Mary, an aspiring medical assistant

Market: New market

Jenny MolyneauxMBA 2

- Background in user acquisition, growth, and tech

Tom BedecarreMentor

- Cofounder, Chairman of AKQA.Stanford DCI Fellow

Christine TataruCS, Masters in AI

- Background in algorithms, bioinformatics, and software development

Tatiana BrezinaMBA 1

- Background in designing financial tools for underserved Americans

Eleanor CooperMBA 2

- Background in finance, design thinking

A crew of people all committed to helping low-skilled workers find better jobs

• Gig economy workers who want to move into stable, full-time work. Their current work doesn’t meet their needs, but they don’t know how to pursue a better opportunity

• Employers in industries struggling to find high quality low-skilled workers

• Potentially, educators/ intermediaries (ie. community colleges, job training programs, etc) who are not reaching or adequately serving this demographic

• Employers: provide jobs that our users can be placed into• Skills training programs (Job training programs, vocational schools, community colleges): we want to connect individuals to these programs / increase their impact • Gov: there is lots of political will and gov. funding for job training and upward mobility initiatives• Other companies : there are several other companies that work in this space, however target a different demographic. We want to enhance their work not compete with it

• Problem: Gig-economy contract employees (GEWs) are not adequately rewarded for good performance or able to leverage it for career progression/ upward mobility.

• Solution- GEWs: provide career progression opportunities, both ‘cross -gig platform’ as well as into non-contract roles• Solution- employers & intermediaries: saves time and costs in connecting them with an important demographic; reduces hiring & turnover costs

• Acquiring users (contract workers) to our tool• Expenditures to maintain partnerships with employers• Labor costs because there are a number of manual elements to our product (updating new job opportunities, figuring out what skills are relevant cross-platform, connecting w job training programs)

• Employers will pay for better quality candidates to reduce their hiring turnover costs • Workers will pay either a small subscription fee for regular career progress tracking or a larger one time fee for job placement assistance • We may explore seeking revenue from existing funding sources for vocational training programs / colleges / related public grants

• Our customers are on the move so we hope to track performance through an app. We are also thinking of having in-person visits w career counselors.• Reach employers & intermediaries via LinkedIn & GSB network intros

• Requires dependable relationship to build the trust necessary for GEWs to share goals/ challenges• Need to address the emotional as well as practical barriers to pursuing upward mobility • Requires intermediaries view us as complementary to their work / initiatives

• Technical expertise to build the product• Ability to understand HR/legal landscape• Career counselors & career path creators /connectors

• De-risking career pursuit by providing actionable career pathways (may include identifying funding) • Converting local performance metrics (i.e. Uber’s stars) to universal metrics• Securing ‘fillable’ positions from employers

2 sided marketplace:1. Gig workers looking for

stable work2. Employers looking for

new info on candidates

2 key activities:1. Converting gig reviews to

a universal metric2. Partnering with

employers in need

Week 1

Most gig workers don’t want

traditional FTE jobs

Week 10

Figuring out that Darren wasn’t the right customer

Week 1

There are no easy metrics to

distinguish gig performance

...but we found a real pain point, for employers!





Would love data to validate entry level job seekers’ abilities

- Job Training career counselors & small business owners

Fit is most important, but interviews are so time consuming

- Liz Trujillo, small business owner

...so many applications… hard to get the right type of people.

- Dave Hinders, Hinders Home Care

Week 10Week 1

Time to focus on an industry

Retail Banking Health Care IT Hospitality

Fast growing industry

Necessary skills not easy to identify/ validate

Opportunities for workers without bachelor's degrees

Leads to a career with above avg. income

Hiring is big pain point

Hiring our demo of interest

Week 10Week 1

We interviewed lots of Health Care HR departments

Week 10Week 1

Current Workflow

And their pain points were exemplified by Tammi (Stanford Hospital Hiring Manager)

Stanford Hospital posts online for

Medical Assistant

60 applications overnight Call 5-10 applicants In-person interview

3 people Hire 1 person

She told us her process was:1. Inefficient (took way too long)2. Inadequate (still can’t fill 30 open medical assistant positions)

4-5 Weeks

Week 10Week 1

...and were willing to pay for better applicant information.

Platform to showcase networks, references, soft skills via personal profile

Healthcare company

Job Seekers

Subscription: $100/seat/month

activities

paymentsInformation on job candidate’s networks, references, and soft skills

Referral fee: $50 for every 10 friends onboarded to Strivve Hiring

Quoted regularly ~$100-$150 / seat/month

“Phone interview evaluations cost $800 - $1,500 per hire”

- Stanford Health

Week 10Week 1

The information they wanted most was soft skills.

“I could be missing tons of better fit candidates because I simply don’t have time to interview all qualified applicants”

- Cole Souza, Menlo Clinic Stanford

“I can tell within 30 sec. of meeting - by looking at body language, tone, speech patterns - whether they are potential hires”

- Patricia Wei, Direct Urgent Care

“It would be easier to hire someone without experience, but we use experience as a proxy”

- Sammy Alan, One Medical

Week 10Week 1

Behavioral & Personality Quizzes

Videos

Connections (Referrals & References)

How do we ‘show off’ applicants’ soft skills?

Week 10Week 1

So we sold employers on a fake candidate...Introducing Mary! (Our 1st MVP)

Mary M. Info not typically found on a resume is:- Verified references- Social connections- Available work area- Story- Video interview

Week 10Week 1

We ran ads to attract real “Marys” to our site

Week 10Week 1

What’s our CAC?

Will job seekers create videos?

We ran ads to attract real “Marys” to our site

CTR: 1.1%

CVR: 1.9%

1st 12 hr. leads:

2

Week 10Week 1

We could attract job seekers to our website at

an affordable price

...but it was hard to get them to make a profile.

33 people hit our landing page

4 people gave their name, number, email

1 person submitted resume

0 people made video

Week 10(1 week of results)Week 1

Why?

We called them and found out we were asking for too big of a behavior change

“[I didn’t make a video] because it was different and I wasn’t sure what it was for...I’ll do it tonight if the wifi works!”

[After explanation] “Oh ok, no problem. I’ll make one today.” ...Doesn’t happen.

“I just assumed I couldn’t record the video on my phone, but I could make one tonight”

Finally...we got a real “Mary”!

Week 10Week 1

A candidate seeking a Medical Assistant position came to our site and completed a profile

Her application was in bad shape...

Week 10Week 1

NO INTERVIEW

...so we made her a Strivve Profile.

Week 10Week 1

Current employer● “always making customers smile”● “always on time and rarely misses a day.”

Prior employer● “great team player”● “take the initiative to help out”● “we have missed having her ”

Verified

● High attendance record - 2 absences (sick days) in last 2 years

● Successfully diffused 4 contentious customer complaints in last 3 months

Languages: English - native language Spanish - 40% professional fluencyTyping: 45WPM

References (0-10) -click for details- Current employer: 9 Professor: 8 Prior employer: 7

Connections:2 Verifed references1 [Stanford Hospital] connection8 Strivve connections

Last Profile Update:5 days ago

Current Employment: United Healthcare StaffingDuration of Last Positions: 3 mo, 2 moExplanation of work gaps: in school

Education: Bay Area Medical Academy Certificates: Certified Phlebotomist

Direct Position Experience: 2 mo externship @ Zuckerberg hospitalOther Related Experience: none

Mary Montanez Position Sought: Medical AssistantMy story:“I got into medicine people because I like helping people. I like to putting a smile on someone’s face.”

AccomplishmentsBackground

Strivve Verified Competencies

References

INTERVIEW!

I can’t believe that profile is for the same person I rejected!

- Patricia, Direct Urgent Care

I’ve probably applied to 50 jobs. I had no idea why I was getting rejected. This is so exciting!

- Mary

Both Tammi (Employer) and Mary (Job Seeker) were happy!

Week 10

Mary got interviews with:

Week 1

Employers loved the new information but were wary of the new

format

Week 10

We built a final MVP that looked a little more like a resume.

Week 1

Employers starting asking us to verify

more!

…like tech-savviness and WPM

We realized there are great opportunities to measure a lot more than just soft skills

Week 10Week 1

GET

Week 10Week 1

KEEP GROW

ACQUIREJob applicants submit Strivve resumes to employers’ job posts

ACTIVATERegister to see job applicants’ videos

KEEPAbility to search for passive job seekers (often considered best candidates)

Revenue impact? Employer subscription model:

UPSELLCustomized video interview questions

NEXT SELLVerification of additional types of skills

Freemium model instead of upfront subscription

Cash flow positive in year 3. ~$1MM funding needed

Week 10Week 1

• Acquiring users to our platform - advertisement• Expenditures to maintain partnerships with employers & intermediaries• Labor costs up front to design & manually check our systems are working - connections, reference verifications

• Job-seeker:Get: Craigslist, Facebook ads, employer job postsKeep: profile ‘last updated’ status & text remindersGrow: Info. + connections to training and self-development opportunities• Employer:Get: direct network outreachKeep: Continually updated candidate pool; access to more data points (Strivve metrics)Grow:Personalize metrics and video questions based on employer needs

• Reach employers & intermediaries via LinkedIn & GSB network intros; also in places where they typically recruit this demographic (trade schools, job fairs, monster/indeed, etc) • Reach job seekers in same places, in addition to Facebook & Craigslist ads

• Employers will pay a subscription fee on a per seat basis (major hospitals may opt for per ‘employer’ basis for data to assess candidates in areas they care about• Potential for advertisement revenue • We may explore seeking revenue from existing funding sources for vocational training programs / colleges / related public grants

Week 8

Job Seekers: Problem: Low-income job seekers have no professional networks / transferable credibility building platformSolution: Job seekers

- Can showcase / get credit for their best skills & traits

- Find personal connections for referrals /info/’role models’

EmployersProblem: hospitals receive high volumes of applicants but lack information to efficiently sift to find ‘soft skill fit’ candidatesSolution: Employers

- Have access to a candidate database with connections, references, & video answers to ‘fit’ questions

• Employers, at least initially, to draw job seekers to the platform • Skills training programs (Job training programs, vocational schools, community colleges): we want to connect individuals to these programs / increase their impact . They can also refer job seekers to us, after they graduate• Companies providing similar services to high-skilled demos. (LinkedIn)• Other companies providing services to our demo(Coursera, financial services products) • Entry level employers who would like to have career advancement as a benefit for retention • Career Coaches • Government bc they provide funding to our partners contingent on certain metrics (i.e. % placement rate after training program)

• Low income / low skill workers who want to enter or be promoted within the healthcare industry

- Already have certification (if necessary) but little experience

- Decently tech savvy (can follow links to upload video)

- Have good soft skills to promote

• Health care industry employers hiring entry level positions - hospitals as early adopters

- Too many applicants to sort properly (need faster way to find out more)

- Concerned about hiring people with soft skills and patient care mentality

• Technical expertise to build the product• Ability to understand HR/legal landscape• Career counselors & career path creators /connectors• Access to job seekers for entry level positions

• Attract employers and passive & active job candidates to the platform• Source references that are as high or higher quality than employers get on their own• Facilitate job seekers’ finding connections with employers’ employees• Facilitate job seekers finding ‘friends’ on the platform

Still 2 sided marketplace:1. Low-skilled healthcare

workers who need help differentiating themselves

2. Employers who need more info

107 interviews later… a few things we learned:

LSWs & employers rely on resumes, but do not ‘speak the

same language’.

Low skill workers (LSWs) are focused on immediate pain points, ie. job placement.

Creativity is required when your product replaces the person

who’s buying it.

Employers don’t realize how often they are pre-cutting

qualified candidates.

LSWs & employers are resistant to changing the job application process.

Week 10Week 1

LSWs are more hesitant to ‘trust institutions’ or

enter data online.

There are emotional barriers to LSWs seeking higher wage jobs

LSWs & HR managers are concerned about discrimination & biases in the hiring process.

What’s next?

Week 10Week 1

Customer Need

Product- Market Fit

What’s next?

Week 10Week 1

Healthcare is an ideal starting point, but just the beginning.

● Stanford Professor Michal Kosinski can grade 5 employability traits with just your Facebook profile!

● At least one company is working on Audiolytics: evaluating someone’s soft skills and cognitive ability with just voice recordings.

The team members of Strivve will continue exploring this space independently through course-work and either reunite with a better solution or considering joining companies already operating in this space.

Further Exploration

Thank you!

Teaching Team!

Tom! Leyon!

Online

Job

Marke

ts

Staffing and

Temp

Agencies

Skill

Assessme

nt

Digital Professional Communities

Job

Skill

s Tr

aini

ngOLD

NEW

NEW

NEW

OLD

Competitor Diagram

Final Competitor Diagram

Week 10Week 1

Online J

ob

Markets

Staffing

and Temp

Agencies

Skill

Assessm

ent

Digital Professional Communities

Job

Skill

s Tr

aini

ng

Needs updating!

TAM / SAM / Target Market / Revenue in Year 3

TAM = $85.5B SAM = $29BTarget Market = $5.7B

Key assumptions: at scale, 20% of US healthcare employers pay for Strivve

Year 3 Revenue = ~$5M

Key assumptions:

- Revenue generated through a subscription model with two flavors: basic ($100/seat/mo.) & premium ($200/seat/mo.)

- 90 employers served in year 3

- 50% buy a premium subscription

Appendix

Business Model Canvases

• Gig economy workers who are ‘financially strapped’. In current roles, they lack adequate consistent income, income growth opportunities, benefits, etc.Low income workers who want to receive training or change career paths

• Employers in industries that struggle to fill skilled roles and with employees retention



• Problem: Gig-economy contract employees (GEWs) are not adequately rewarded for good performance or able to leverage it for career progression/ upward mobility. Problem: some low income workers want more interesting, better paying jobs• Solution- GEWs: provide career progression opportunities, both ‘cross -gig platform’ as well as into non-contract roles• Solution- employers & intermediaries: saves time and costs in connecting them with an important demographic; reduces hiring & turnover costs Solution: Offer clear information, direction, structure and support

Solution: Offer connections to job-training programs, making application and financial planning simple


• Employers will pay for better quality candidates to reduce their hiring turnover costs Platforms like Uber will invest because • Workers will pay either a small subscription fee for regular career progress tracking or a larger one time fee for job placement assistance • We may explore seeking revenue from existing funding sources for vocational training programs / colleges / related public grants




• De-risking career pursuit by providing actionable career pathways (may include identifying funding) • Securing ‘fillable’ positions from employers • Converting local performance metrics (i.e. Uber’s stars) to universal metrics

Week 2


• Acquiring users to our platform• Expenditures to maintain partnerships with employers & intermediaries• Labor costs because there are a number of manual elements to our product (updating new job opportunities, figuring out what skills are relevant cross-platform, connecting w job training programs)

• Requires dependable relationship to build the trust necessary for low income workers to share more personal skills and career goals• Requires intermediaries view us as complementary to their work / initiatives• Requires employers to view us as helpful, not poaching their talent; HR teams may see us a threat


• De-risking career pursuit by providing actionable career pathways (may include identifying funding) • Securing ‘fillable’ positions from employers • Develop tests to assess soft skills and experience that employers trust

• Problem: low income workers who want more interesting, better paying jobs don’t know where to start Problem: Employers in health care lack adequate quality of entry level job candidates (JCs) and quantity of mid-skill JCs Soft skills are very important but information is not accessible on current platforms

• Solution: Provide clear, digestible career path information & simplify application process for job-training programs and jobs

Solution: digital talent platform - LinkedIn of unskilled and lower-skill workers - which allows employers to identify unskilled workers with high soft skills and qualified, low-skill ‘passive job seekers’

• Reach employers & intermediaries via LinkedIn & GSB network intros; also in places where they typically recruit this demographic (trade schools, job fairs, monster/indeed, etc) • Reach job seekers in same places, in addition to Facebook ads

• Low income / low skill workers who want to enter or be promoted within the health care industry

• Health care industry employers hiring unskilled and low skill positions


• Employers will pay a subscription fee or placement fee for better quality candidates • Potential for advertisement revenue • We may explore seeking revenue from existing funding sources for vocational training programs / colleges / related public grants

• Acquiring users to our platform - advertisement• Expenditures to maintain partnerships with employers & intermediaries• Labor costs up front to design & manually check our systems are working - connections, reference verifications - because there are a number of manual elements to our product (updating new job opportunities, figuring out what skills are relevant cross-platform, connecting w job training programs)

• Job-seeker:Get: Craigslist, Facebook ads, employer job postsKeep: profile ‘last updated’ status & text remindersGrow: Info. + connections to training and self-development opportunities• Employer:Get: direct network outreachKeep: Continually updated candidate pool; access to more data points (Strivve metrics)Grow:Personalize metrics and video questions based on employer needs

• Reach employers & intermediaries via LinkedIn & GSB network intros; also in places where they typically recruit this demographic (trade schools, job fairs, monster/indeed, etc) • Reach job seekers in same places, in addition to Facebook & Craigslist ads

• Employers will pay a subscription fee on a per seat basis (major hospitals may opt for per ‘employer’ basis or placement fee for better quality candidates for data to assess candidates in areas they care about• Potential for advertisement revenue • We may explore seeking revenue from existing funding sources for vocational training programs / colleges / related public grants

Week 6

Job Seekers: Problem: Low-income job seekers have no professional networks / transferable credibility building platformSolution: Job seekers

- Can showcase / get credit for their best skills & traits

- Find personal connections for referrals /info/’role models’

EmployersProblem: hospitals receive high volumes of applicants but lack information to efficiently sift to find ‘soft skill fit’ candidatesSolution: Employers

- Have access to a candidate database with connections, references, & video answers to ‘fit’ questions

• Attract passive and active job candidates to the platform• Verify references• Facilitate finding any connections a job seeker has to employer company’s current employees• Develop tests to assess soft skills and experience that employers trust

• Employers, at least initially, to draw job seekers to the platform

• Skills training programs (Job training programs, vocational schools, community colleges): we want to connect individuals to these programs / increase their impact

• Other companies : there are several other companies that work in this space, however target a different demographic. We want to enhance their work not compete with it (LinkedIn)

• Other companies providing services that our demographic could benefit from but had not been effectively reached (Coursera, financial services products)

• Low income / low skill workers who want to enter or be promoted within the healthcare industry

- Already have certification (if necessary) but little experience

- Decently tech savvy (can follow links to upload video)

- Have good soft skills to promote

• Health care industry employers hiring entry level positions - hospitals as early adopters

- Too many applicants to sort properly (need faster way to find out more)

- Concerned about hiring people with soft skills and patient care mentality

• Technical expertise to build the product• Ability to understand HR/legal landscape• Career counselors & career path creators /connectors• Access to job seekers for entry level positions





• Problem: Gig-economy contract employees (GEWs) are not adequately rewarded for good performance or able to leverage it for career progression/ upward mobility.

• Solution- GEWs: provide career progression opportunities, both ‘cross -gig platform’ as well as into non-contract roles• Solution- employers & intermediaries: saves time and costs in connecting them with an important demographic; reduces hiring & turnover costs


• Employers will pay for better quality candidates to reduce their hiring turnover costs • Workers will pay either a small subscription fee for regular career progress tracking or a larger one time fee for job placement assistance • We may explore seeking revenue from existing funding sources for vocational training programs / colleges / related public grants



