Skin Script Skin Care

2021 Integrated Report

By Kari Cox

OGL260: Final Project

Arizona State University

3 December 2021
GENERAL
Skin Script Skin Care is a private company owned by Lisa VanBockern. At this time, it is
1considered a small business but does adhere to GAAP (Generally Accepted Accounting
Principles). As of November 2021, governance for the organization is compromised of the
owner and several managers and directors: Lisa VanBockern, CEO/CFO (Owner and Managing
Member of the LLC). Dave Waggoner (Director of Education), Kari Cox (Customer Service
Manager and Trade Show Coordinator), Tim Chapman (Shipping & Receiving/Warehouse
Manager and Software Management), MJ Bomar (Information Systems Director), and Ashley
Underwood (NetSuite System Administrator).

PURPOSE
The purpose of this evaluation is to examine and discuss in depth the value creation process of
Skin Script Skin Care (hereafter referred to as Skin Script) as well as the results of that process
for stakeholders. It gives insight into who the stakeholders and key partners are, as well as their
contributions in helping create and receive value. It analyzes the different forms of capital used
to create value and various resources that play a role in that creation. This report also notes
some risks and externalities the company may potentially face, and gives recommendations for
improving transparency, accountability, and integrated thinking.

WHO IS SKIN SCRIPT SKIN CARE?

Skin Script is owned by founder, licensed aesthetician, ASU Alumni and ASU Trustee, Lisa
VanBockern. It is a cutting-edge skincare company established in 2007 in Tempe, Arizona. In
2016, there was a total of 10 employees including Lisa. As of November 2021, there are now 29
employees. In November 2021, the company moved into a new, more corporate building with

1
Unless otherwise cited, all information analyzed comes from proprietary internal data sources and internal working knowledge of the firm
that I have access to as an employee of the organization.
more than double the square footage. It now houses a beautiful retail store, large customer
service area, and state-of-the-art training facility and shipping warehouse.

Skin Script was created because as an aesthetician working a med spa, Lisa struggled to a find a
skincare product line who would allow aestheticians to pick their favorite products out of the
line; most had enormous minimum or opening order requirements and it was difficult to get in
touch with a representative. Most fell short in giving education on products. She started Skin
Script to help other aestheticians and to provide them product, accessibility, and advanced
skincare knowledge with no order requirements. This is what brought to life the mission of Skin
Script: Stay humble and serve the customer.

The three keys in achieving Skin Script’s Mission:

 Quality product
 Fast and friendly customer service and shipping
 Free education
Exhibit 1.

VALUE CREATION PROCESS

The Business Model Canvas below portrays the all-encompassing facets of value creation at
Skin Script. One of the prominent points is in the Value Proposition section: full spectrum
assistance. The target market, and one of the key partners, is the solo aesthetician (as well as
aestheticians in day spas, medspas, and doctors’ offices). Often, the solo aesthetician is working
for him/herself, booked back-to-back with clients and has no staff or mentors for help. They
receive vital value from Skin Script in having the ability to call and get help on the first ring. This
help comes in the form of troubleshooting client adverse reactions, recommending products
and/or protocols, giving advice on treatment pricing, helping understand ingredients, assisting
with account questions, placing orders, and much more. By giving this value to their customers,
loyalty is created which pours back into the company.

To give this value to customers, Skin Script works with several key partners such as their
laboratory where the products are made, mail carriers, suppliers, and trade show companies. In
the most basic sense, value is created by adhering to the three keys of their Mission: the
customer calls to place an order (for quality products), Skin Script takes and processes the order
(friendly customer service) and ships the order quickly (fast shipping), along with the option of
their Learning Center and in-person classes (free education). Refer to the Business Model
Canvas below for more details. All in all, value is created through empowering customers and
creating loyalty for retention.
Business Model Canvas by Kari Cox
Key Partners
 CoValence Labs
 USPS/UPS
 Cox/Vonage
 International Minute Press
 Dermascope and LNE
Magazines
 Retailers (Spas, Aestheticians)
 JSN Tubes
 YonWoo
 Uline
 Tradeshow Companies (Face &
Body, IECSC, ICES)
Customer Relationships
 Personal relationships via
phone or face-to-face
 Social media inboxes and
posts/comments
 Online order processing
 Email inboxes
 In person at trade shows
 Educational via classes
 Rapport
Key Activities Value Propositions
 Sales Customers:
 Logistics  Accessibility and responsiveness
 Research & Development  Active and friendly customer
 Education support (no automation)
 Assembly  Follow through
 Shipping/Production  Full spectrum assistance:
 Inventory education, accounts, ordering
 Tradeshows  Dedication to quick
 Marketing processing/shipping
 Employees who help the customer
quickly, while having fun
 Free education
 Quality ingredients/product
 Easy ordering processes
 Drop shipping to customers’
clients
 Products not sold on mass sites
Partners:
 Loyalty
 East of communication/response
Customer Segments Key Resources
 Solo Aestheticians who fully rely on  Employees
our line to supply their business in  Software: Eide Bailly, NetSuite,
order to support themselves and ShipHawk Systems
their families  Customer Base
 Aestheticians who work in spas  Carriers
which use our line  Shipping Equipment
 Day spas, med spas, doctor’s offices  Social Media Platforms
 Aesthetic students/newly licensed  Ingredients and Packaging
aestheticians who are fresh into
the industry and need support
 Cosmetologists
 Occasional retail customers
 Channels Cost Structure Revenue Streams
 Word of mouth/referrals  Rent/utilities  Main revenue is through product
 Social Media  Product and packaging sales via credit card transaction
 Newsletters  Payroll  Occasional Net 30 terms or check
 Website  Software systems  Other intangible revenue
 Tradeshows  Shipping equipment/IT equipment (retention and reputation)
 Classes/Schools  Order fulfillment (postage, boxes,
etc.)
 Tradeshow logistics including travel
Exhibit 2. Business Model Canvas, 2021.

RESOURCES
Financial Capital

Year Annual Sales

2019 $11,838,028.00

2020 $16,786,170.48

2021 $23,262,075.39

Exhibit 3. Information in this table has been pulled from the company’s software
system, NetSuite. A copy of each report is available by request.

In January 2019, the company purchased and implemented a brand new ERP software system,
NetSuite. During this time, a new warehouse was built with thousands of dollars of new
equipment; previously the shipping department had been fulfilling orders on tables in an office
floor space. In 2020, while the pandemic hit, the number of staff grew, and they continued to
rise in sales. In 2021, the company had fully outgrown their space and moved into a new
building with more than double square footage. This new space came with many costs and
houses an expensive warehouse including software, racking, and forklifts. Other expenses
included cubicles, and equipment for the state-of-the-art training room with projectors,
cameras, and microphones. All of this is on top of regular moving costs, cleaning crews and day
to day necessities.

With all the changes and expenses, Skin Script has more than doubled its annual sales in the
last two years (see Exhibit 2). This has been largely due to the way Lisa views finances as
abundance and budgeting. Her accounting background mixed with using passion for the trade
has helped Skin Script gain strong financial capital. In the beginning, purchases were not made
unless they were directly tied to a sale (VanBockern and Waggoner, 2017, 29:39). This strategy
was key in sustainability efforts and savings.

“. . . purchases were not made unless they were directly tied to a sale”.

Manufactured Capital
In November 2021, Skin Script moved from a 24,000 square foot building into a new 40,000
square foot building with office and warehouse space. There are six picking and packing lines,
two forklifts, a cardboard baler, and packing peanut distributors. There are over thirty racking
structures. Due to the rapid growth, the company still maintains the original building for the
potential need for space to store pallets of product. However, business is operated out of the
new location only.

Natural Capital
Skin Script is well-known for their fruit-based enzymes. Because of the nature of the skincare
industry and promising quality ingredients for their customers, Skin Script works with
CoValence Laboratories, who also does a great deal of research and development for the
company. Factors like weather, climate, and natural resources can affect the way fruits are
grown and harvested. Each batch of products that they receive from the lab can vary in color,
scent, and texture due to the natural ingredients used. For this reason, environmental
sustainability and natural capital are of utmost importance. Skin Script also takes measures to
be environmentally friendly, such as using biodegradable packing peanuts instead of styrofoam.
They also are careful with ingredients, for example, they use jojoba beads instead of
microbeads which are harsh on water systems and can cause water pollution. These are options
by CoValence, who value green formulations in products (Ann, 2021).

Human Capital
As of November 2021, Skin Script has 29 employees: 22 female and 9 male, averaging 31.52
years of age (VanBockern & Waggoner, 2021). 14 of these employees are licensed
aestheticians. There is a low turnover rate. This is due to tremendous effort of infusing a sense
of strong human capital into the organization. Tangible resources like benefits, above market
starting pay, training, an education allotment, and PTO play a factor. Intangible aspects also
play a remarkable role in boosting human capital. This comes in the form of training programs
on soft skills (emotional intelligence, etc.), empowerment, and a psychologically safe space for
employees to bring ideas and issues to each other and to management.

One of the ways Skin Script encourages human capital is by investing in employees through
trainings, whether in-house- new hire or their SkinTensive and Product Knowledge classes- or
outside of the organization like Fred Pryor and Dale Carnegie for leadership, computer and/or
customer service skills.

Another way they infuse human capital into the workplace is by putting focus and emphasis on
values, vs. sales quotas or rates. While that may be a successful model for many companies,
Skin Script has had success by operating differently. They believe that by strengthening
relationships, business will come (no harsh sales quotas or
Customer Service Values
call handling times needed). By focusing on values at the
Benevolence
core, employees are able to have a shared vision and
Empowerment
common goal, thus strengthening the way they relate to
Accountability
each other as well as customers. The customer service
Communication
team constructed their own set of special values, with the Adaptability
acronym BE A CAT: Teamwork
Exhibit 4. Values by Skin Script CSR Team, 2020.

Relationship Capital
The relationships with key partners are what breathe life into Skin Script. From their customers,
to CoValence, carriers, utility companies, aesthetics schools, suppliers and trade show
companies, relationships are the core and allow all other aspects to happen. Their customer
base stands out most, at 35,000+ active customers. The target market is licensed solo
aestheticians, student aestheticians, day spas, med spas, and doctors’ offices. The average
customer is female and average customer age is 40 years old.

Profound relationships with their customers through phone and in-person communication,
experience, education, classes, and social media have resulted in almost $24 million in sales,
which is double in only two years. Strong relationship capital has provided a heavy incline in
revenue, customer satisfaction, and loyalty.

While customers may the most obvious piece of relational capital, Skin Script places heavy
emphasis on friendly relationships with suppliers, mail carriers and trade show companies. This
extends to “get well soon” gifts to the USPS mail carrier after hip surgery, to their lab’s CEO
recommending a CFO for a new open position, to making friends with the manager at Subway
where they order class lunches (personal communication, Skin Script staff, 2021).

Symbolic Capital
The most prominent aspect of symbolic capital within Skin Script is the cultural climate; one of
empowerment and motivation. The owner, Lisa, attended a customer service training at Walt
Disney World in Florida in 2018. This is where she was inspired to create the mission statement
and three keys mentioned in Exhibit 1. She also brought back a new air of excitement for great
customer service and empowering employees to make their own decisions from best judgment.
Prior to that, she already had a sense of “promoting from within” vs. hiring from the outside. By
allowing autonomy, employees felt a sense of worthiness and trust that they could grow with
the company and not fear others coming in to change things with no regard for them.

Skin Script is trademarked by the United States Trademark Office. Aestheticians associate the
name Skin Script with empowerment and support through education. Many skin care lines offer
education classes at a hefty price. Skin Script believes that education should be free and
accessible. If aestheticians have easy access to quality, free education, they will feel
empowered and supported, and much more likely to use the products properly, and to return
and be loyal.
Structural Capital
Skin Script now operates with a hierarchy governance. Just 5 years ago, as a small company in
2016, there were two levels: the owner/CEO, and 9 employees. Today, in 2021, there are now 4
levels: the owner/CEO, several managers, a few team leads, and employees. While the
company is structured with a hierarchy, it is not a rigid form and different levels can
communicate, but the channels are still maintained formally.

STAKEHOLDERS AND ACCOUNTABILITY

To create value, the organization partners with a few key players. As previously discussed, their
customers are a prominent piece of how value is created. They engage with customers to
create a relationship and provide extensive value for them through products and support. This
value is returned tenfold to the company; customers are the reason for the company’s
existence. They provide not only revenue to sustain the business, but also personal fulfillment
for staff by conversations that utilize both parties’ professional licenses.

Employees, of course, drive the value that is created for and by customers. As mentioned in
human capital and symbolic capital, empowerment is poured into employees through training
and coaching to ensure retention and growth in a diverse and safe environment. They find
value compensation, benefits, job security and growth within the company. This translates into
personal fulfillment and results in high performance and better service to customers.

The organization partners with vendors, suppliers and carriers to create necessary functional
value. These partnerships result in proper equipment and resources being utilized for
operations, which allows the company to run and grow. These partners find value in the
company by ease of communication, responsiveness, and long term business.

Skin Script partners with CoValence for obvious reasons; to have products manufactured. They
promise customers quality and safe products and ingredients, and they rely on CoValence to
help them deliver that promise. The lab has allowed them to find new, innovative ingredients
and large quantities of products to sell. In turn, this provides CoValence extensive amounts of
 business; Skin Script is their number one customer (personal communication, 2021). In fact,
they produced so much product for Skin Script in 2021 that they had to purchase another
machine for the output. It is a partnership of trust and collaboration, which creates value for
both parties, but also for Skin Script’s customers.

Trade Shows are another part of value creation for the company. They allow networking and
cross-exposure. The value for the trade show companies comes in a highly sought after show
that thousands of aestheticians attend. Skin Script’s value comes in the form of new skillsets
outside of the office being applied, travel opportunities, and networking. This is the only time
that in-person classes are held outside of Arizona as well, so customers who do not typically
have an opportunity to learn about the products have a chance at trade shows. See Exhibit 5 for
other ways value is created with stakeholders.

Intellectual Analysis by Kari Cox

Stakeholder/ The Value

Business Why We Engage How We Engage Created for the The Value for Us
Partner Stakeholder
 Existence
 To provide quality  Website
 Products for  Revenue
products/education  Online/in-house
income  Personal
for their business trainings
 Education fulfillment
Customers success  Social media
 Empowerment  Professional
 To learn and  Newsletters
 Fast and friendly fulfillment
understand their  Tradeshows
customer support  Retention
needs  Retreats
 Staff retention
 Salary  Productivity
 Process  Daily interaction
 Training  Performance
implementation  Coaching
 Benefits  Growth
and execution  Feedback
Employees  Job security Development
 Customer  Trainings
 Income  Elements for
engagement  Staff meetings
 Empowerment customer
 Diverse and events
 Safe environment retention
environment
  Strengthen options
in the supply chain  Placing orders  Continued  Quality products
 Equipment  Emails business to sustain day-to-
Vendors/Suppliers
 Tools and  Phone calls  Word of mouth day business
resources to  Cards marketing needs.
function

 Scheduling pick  Continued  Assurance of

 To ensure delivery ups, Phone calls business package delivery
Carriers of products to our  Conversations  Large amounts of to customers
customers with drivers on- packages to pick Ability to ship
site. up and ship out nationwide

 Loyalty and  Reliance of

 Strengthen and
growth for their product
develop
 In-person lab manufacturing
relationship and
meetings  Substantial  Trust of quality
trust
Lab  Virtual meetings business products
 Ensure safe, results
 Email  Producing more  Peace of mind for
driven products
 Phone calls products and products long
with quality
purchasing new term Openness to
ingredients
machines ideas or concerns
 Travel
 Social media  Meeting
 Networking across  Online events  Networking customers
the nation  At shows  Exposure  Networking
Trade Shows
 In-person events  Email/phone  Support for the  Exposure
for exposure  Purchasing industry  In-person
magazine ads education in
other states
Exhibit 5. Intellectual Analysis, 2021.

RISKS AND EXTERNALITIES

Skin Script could face a few potential hazards in the next few years. With the pandemic, their
industry is highly affected. They are in the business of selling skin care products, and their
customers perform facial treatments. In 2020, they were able to maintain business when most
of the world shut down. Although in the midst of the crisis they were not directly affected, the
next few years could bring about the repercussions of what their customers may incur. For
example, in 2020, stimulus checks were issued and although many aestheticians had to close,
they could still sell products. In 2021, many aestheticians are now feeling the effects of their
businesses having been closed for so many months. Many are changing industries because of
the potential instability of being solo (vs. having a “9-5” job). This is very apparent in social
media groups. This could cause a ripple effect later on where aestheticians begin to decline in
ordering because they have given up their solo business and are moving into more corporate
jobs.

In a different light, the company is also experiencing profound growth and tremendous
opportunity for new positions. In 2022, a CFO will be hired, as well as a position to hire “remote
ambassadors” all over the United States to teach classes in aesthetics schools. With this growth
and opportunity, there is a lot of room for reward, but can also bring about many risks. The
company has not previously had remote positions, and because they are becoming a top skin
care line in the country, they are in the spotlight much more. Having ambassadors representing
the company who are not monitored in-office could potentially harm the well preserved
reputation of the company. Aside from those aspects, communication can also suffer with more
employees being hired, and with brand-new positions that did not previously exist.

Lastly, although the company has moved into double the square feet of its previous building,
they are now receiving larger-than-ever orders. The new, large warehouse is already struggling
to house an area for fulfilling these large orders, so if the growth continues at the rate it is now,
they could face danger of running out of space completely.

RECOMMENDATIONS
Skin Script will have to closely monitor sales, inventory, and also social media to have an idea of
how the industry is progressing or declining due to the effects of the pandemic. Supply and
demand is always a factor for companies, but because their industry involves human touch,
they will need to have regular sessions to analyze sales and be alerted for any potential
declines. Regular brainstorming sessions for creativity and back up plans may be necessary.

It would also serve Skin Script well to define roles, titles and responsibilities of each person in
management as well as the proper channels and order of governance. Currently, many duties of
management roles overlap which results in confusion and role conflict. Establishing more clarity
will be very beneficial, especially with two impactful new positions coming on board. More
leadership training would help in establishing this. It would also be in Skin Script’s best interest
to enhance some structural capital and define pathways for creating processes. Currently, if
issues are found or improvements are made, is it typical for a few individuals to make decisions
regarding those issues, and then relay that information to the managers or employees in that
department. Having a formal way to implement these types of decisions where all the parties
affected are involved in the decision making would help understanding the full scope, as well as
the collectively best way to implement those changes. Manufactured capital can also be
analyzed to see if there are facility change that could be made in order to maximize location of
racking and equipment to allow the large orders to be fulfilled.

Overall, Skin Script has been organically enhancing each of the different forms of capitals for
years, without knowing or having it formally recorded. The organization has poured into
employees and customers to create human, relationship and symbolic capital. These capitals
result in satisfied employees who care for their customers. Customers feel empowered,
supported and become loyal. This results in steady and growing revenue for solid financial
capital which, in their case, gave the ability to improve manufactured capital.

Skin Script has had astounding growth in the last two years specifically. It is obvious they are
doing something right, and I believe it is because of their simple, but highly effective mission
statement through three keys mentioned in Exhibit 1. Stay humble and serve the customer
through quality product, fast and friendly customer service and shipping, free education. My
best recommendation for this organization would be: No matter how much growth you incur,
always come back to that mission statement, and for each form of capital, ask each other if
what you are doing for that category, is being humble and serving the customer.
References:

Ann, J. (n.d.). FAQ. Contract Manufacturer - Formulator - Private Label Custom Development -
Personal Care - Skin Care. Retrieved May 12, 2021, from https://covalence.com/faq.

VanBockern, L. & Waggoner, D. (2017, December 28). Abundance & Budgeting Webinar.
YouTube. Retrieved December 2, 2021, from https://www.youtube.com/watch?v=niRB6T-
QFf0. 29:39.

VanBockern, L., & Waggoner, D. (2021, November 4). Skin Script 14th Anniversary. YouTube.
Retrieved November 29, 2021, from
https://www.youtube.com/watch?v=ANKCusG_YOY.