Connect with us

Strategy

Leadership: A Potent Combination Of Strategy And Character

Business leadership and the love of a brand with John Nicolakakis, CEO of Roman’s Pizza.

Dirk Coetsee

Published

on

john-from-romans-pizza

“Leadership is a potent combination of strategy and character. But if you must be without one, be without strategy.” – General Norman Schwarzkopf

In the context of a large number of businesses and franchises being over managed and under-led I found Roman’s Pizza to be a welcome exception.

As I walked into John Nicolakakis’ (CEO of Roman’s Pizza) office I was met with the confidence of a man whom has been in the trenches, one whom has done the hard work himself and who’s passion for the brand is visible in his demeanour and speech. As he put it: “My father and I love this brand like you would love a child, always nurturing it, and always looking after it.”

Him saying that, I recognised that I was sitting in front of a “cause fuelled” leader, one who finds purpose in what he does and whom derives energy from this purpose, and that increasing profit was definitely not the sole driving force of his success.

So many companies claim to have a clear vision and value system in place, but unfortunately in reality usually a vision and value system only remains theory. True values are lived by and become transparent through especially the leaderships’ behaviour.

Related: How Roman’s Pizza Got A Great Big Slice of Success (Over R1 Billion Of It)

john-nicolakakis-romans-pizza

“Best Pizza – Best Value” in the Roman’s Pizza context is definitely not a theoretical “mantra” being chanted in the hallways of their head office. John, realising that those two values forms the chore of the brand, makes all decisions accordingly. Costs are not being cut aggressively purely for the sake of it being prudent business practise but to deliver on the promise that the aforementioned values embody.

John is a clear communicator and no one from the head office team down to every franchisee, or any stakeholder can claim that they do not know what is expected of them. “We shoot from the hip” was the term he used and by how clearly and concisely he answered my questions there was no doubt what Roman’s Pizza stood for and what this brand means to its Leadership. It is also clear that although his communication style is very direct, the support to franchisees is also very direct and aimed at delivering on the values of the company.

Johns’ personal cell phone number is available on the company website and he interacts regularly with Roman’s Pizza customers directly and expects the same from all head office personnel. All of the above forms part of Roman’s Pizzas’ rich culture.

Mastering any aspect of life, business, or leadership, is inherently about the ability to simplify what appears to be complex. John has a simplistic view on the difference between leadership and management and is clear on what that means in relation to his role as CEO.

“Leadership is the future, and management is the here and now.”

romans-pizza-franchisor

To lead by example John has spent a lot of time micro managing certain elements of the business, but is also deliberately freeing up more and more of his time to work on the future vision of this industry leading company and to maintain and build its culture.

Related: 25 Leadership Lessons From Millionaire Business Owners

General Norman Schwarzkopf had the trust of his soldiers as he understood that leadership was about showing the way. As he was a decorated Vietnam veteran he knew what the soldiers under his command went through and had their best interest at heart. As is key to any relationship he had the trust of his soldiers and therefore they were agile in their execution of his orders.

Similarly, Roman’s Pizza is a brand built on the foundation of trust and as a result an agile brand. Leaders are followed and trusted when they consistently behave in a way which is congruent with the company vision and values. In general, Roman’s Pizza franchisees trust their leaders as the company owns several stores and goes through the same challenges as the franchisees.

A learning culture is part of the Roman’s Pizza ethos and learning is in part done through experimentation by head office. When an experiment fails the cost of failure is not passed onto the franchisee but is incurred by head office through a reduction in royalties for a period of time.

John himself reads and learns all the time and encourages all head office staff to do the same. He immediately had a Jim Collins quote handy when I asked him about the Roman’s Pizza approach to change: “Test things with bullets, not with bombs “, alluding to the incremental approach to change that this franchise system has adopted.

In conclusion I believe that most will agree with General “Stormin Norman” Schwarzkopf that Leadership is a potent combination of strategy and character. After close observation I am impressed enough by this brand to say Roman’s Pizza has both.

Dirk Coetsee is an international Peak Performance Business and Master NLP coach. He is an entrepreneur and founder of DCGlobal business and life coaching. DCglobals’ purpose is to multiply the performance and growth of businesses and individuals. Contact Dirk directly at: dirkcoetsee3@gmail.com

Advertisement
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Strategy

You Are Your Own Client

Before you can build a start-up that takes over your industry, you need to treat yourself as your own best client.

Allon Raiz

Published

on

client-service

In business, when you have a client, the relationship is formalised into a structured one where there are defined expectations and regular meetings. For example, if you are a consultancy and have a one-year contract to deliver services to a client, the relationship will be formalised, structured and possibly include monthly status meetings. Some may be report-back meetings while others may be briefing meetings.

Your client will receive a monthly invoice and there may be quarterly reviews of the work you have done. Your general mindset is one of service to the client because they are important and worthy of the effort. Crudely speaking, most service-provider arrangements work in a similar way because the structured model works.

In contrast, as entrepreneurs, our relationship with our own business is often far more chaotic or ‘organic’ than formal. My contention is that it is also much less effective. When I work with SMEs, one of the first things I do is encourage the entrepreneur to treat his or her own business as a client by formalising meetings, ensuring that there is a feedback loop and having a service-provider mindset. By making these philosophical and structural changes, you will create a far more efficient and well-run business.

There are four aspects to any business which, in my view, should be formalised.

1. Partners

It still astounds me how informal the meetings are between partners in SMEs, especially when they operate from the same office. There are no set times, no agendas and no outputs required. The fact that you might sit in the same office or chat regularly is the problem because it’s interpreted as proper communication while it’s actually a very undisciplined and unstructured process. Casual chats do not ensure that all the requisite items or issues are being properly discussed and dealt with.

Related: How Investors Choose Who To Invest In

2. Staff

The often-given excuse for not holding weekly, biweekly or monthly meetings with team members at the same date and time is that the business is fluid and the entrepreneur needs to be responsive to their clients’ urgent needs whenever these might occur. And so non-rhythmic meetings are occasionally inserted into the gaps in between the chaos.

The discipline that I try to imbed in the SMEs I work with is to hold rhythmic meetings at a certain time and day every week, month or quarter. Should there be a need to cancel this meeting for whatever reason, it should be rescheduled. The simple discipline of rescheduling and not cancelling allows for a compromise between the practical reality of an entrepreneur’s life and the discipline required to build a sustainable business.

3. Agendas

Agendas are often seen by entrepreneurs as an icon of the structure of the corporate world. They smack of rigidity, stuffiness and boredom so they are often discarded and replaced with warm and fuzzy chats. In reality, in order for it to be an effective use of time, every meeting requires a structure, outline or agenda.

This can be a comprehensive agenda similar to that used by corporates or as simple as each person in the meeting talking about their three top-of-mind issues. What is important is that there is structure and outputs, otherwise the meeting’s output is merely that it’s nice to know. The output from a meeting with a formalised agenda is that it’s nice to do.

Related: Why Reading Is The Most Important Tool In Your Arsenal

4. Product review

When last did you, as an entrepreneur, formally ask yourself if your products are still relevant and effective in the market? One of the greatest oversights made by SMEs is not regularly reviewing the appropriateness of their existing products or services. In a high-growth, chaotic environment that is attuned to constantly producing new products, existing products soon become the ugly stepchild, only getting attention when the client cancels the contract because your competitor has a faster, shinier and cheaper iteration of your product. An incredibly important discipline in any business is the regular and formalised review of products and services.

We resist structure as entrepreneurs and the price of that resistance is ineffective and inefficient businesses. By simply treating ourselves as we would our clients, we are able to imbed a level of structure to our businesses that will create a far more effective and enduring business.

Continue Reading

Strategy

What’s The Worst That Can Happen With A Disgruntled Silent Shareholder?

Whether a shareholder brings capital to the business, experience or connections, you need to ensure everyone has the same vision and values.

Kyle Torrington

Published

on

shareholders

While we often hear that it can be bad to have a silent shareholder that does not want to play ball, it is not often that we make enquiries about how the governance of a company can be hindered by a disgruntled shareholder.

Most of us assume that as long as they own more than 50% of their own company, they are entirely in control of all aspects of the company and how it is governed. This is not true: Even if you are a majority shareholder, holding less than 75% of all the shares in your company can still result in headaches if a minority shareholder, holding at least 25% of the company, becomes disgruntled and neither participates in the decisions of the company, nor consents to the decisions being made.

What is set out below highlights, among others, why it is so important to give shares in a company to prospective shareholders over a period of time, rather than from the outset. This allows for shareholders to prove their worth without you potentially placing your company in a position where it could be held at ransom for many years.

Related: 7 Factors To Determine Who Are Your Employees (And Who Aren’t)

The illusion of holding more than 50% of the shareholding in a company

  • Many people assume that by holding more than 50% of the shares in a company they are free to do with the business as they please. This generally only holds true for basic decisions of the shareholders, such as the removal and appointment of directors. The most important decisions of a company are based on special resolutions. A special resolution requires that shareholders, either individually or collectively, holding at least 75% of all the shares in a company, vote in favour of a specific decision.
  • Examples of decisions that require a special resolution include:
    • Amending a company’s Memorandum of Incorporation
    • Approving the issuing of shares or granting of other similar rights
    • Authorising the basis for determining directors’ salaries
    • Disposing of company assets
    • Mergers and acquisitions.

So, what does this mean for you and your company?

  • If you are a start-up looking to raise funds, apart from some exceptions, you will not be able to issue further shares to new shareholders or anyone other than existing shareholders if there is a shareholder that is effectively dead weight.
  • Should you manage to vote a new director to the board, you will not be able to determine the basis on which they are compensated (their salary) without a special resolution.
  • If you intend to merge with another company, you will not be able to pursue this without a special resolution.
  • If you plan to raise money by disposing of or selling most of the assets of your company you will, once again, be prevented from doing so.

Related: Reality Check: You Probably Don’t Own That Work You Outsourced

Accordingly, it is always best when starting a venture to vest your shares over a period of time. This means that, for example, shareholders are only entitled to have their shares allocated to them after a certain period of time to avoid a situation where you have a dead-weight equity shareholder hindering the governing of your company, and requiring possible litigation to remove them.

Continue Reading

Strategy

There’s More To Team Management Than Leadership

When you’re running a business you need to ensure that your employees are on your side, helping you to make profits. Giving them job security, taking them seriously and treating them with respect, will go a long way in enhancing loyalty and productivity.

Henry Sebata

Published

on

team-management

The staff that work for you determine:

  1. How happy your customers are with your business
  2. The quality of the things that you sell
  3. The costs that you incur to sell your products and services
  4. Your risks – the things that can go wrong and how much it costs you

All of these things determine your profitability and how competitive your business becomes. How do you ensure that everyone is on the same side and helping you to make profits?

At work everyone believes that they are getting something (such as money) and are giving something in return (such as time and effort). They are weighing up in their mind “how much am I giving, how much am I getting in return and is this fair?” If they believe that they are:

  • Giving too much or
  • Getting too little
  • Then this is unfair, and they won’t work well (poor productivity – how much they produce).

Related: Why Innovative Employee Benefits Are Your Competitive Advantage

The manager needs to:

  • Know what people are thinking about what they are giving and getting and
  • Manage the giving or getting side
  • So that people become more productive

In a smaller business you sometimes cannot afford to pay more or provide the sort of benefits (pensions, medical aid, bursaries etc.) that larger firms can and so the staff may be unhappy, not be productive and be on the look-out for something better.

How do you increase happiness without money?

Everyone wants:

  1. Job security – knowing that you will still have a job next year – and that you will get paid on time.
  2. Contributing to the success of the business. If you train staff to have the knowledge and skills to do a better job and you then encourage and support them to do this then they are happier, and you increase profits. If you then share some of these profits with the staff that helped you to make them then everyone wins!
  3. To be taken seriously and treated with respect. If you do this then staff are happier, and they will also treat your customers with respect.
  4. To be part of the team. You can often do this by having a regular briefing on what your plans are and discussing ideas. Because staff are doing the actual work they will often have good ideas and then will be motivated to implement them – it was their idea after all!

Staff leaving you all the time is a can destroy significant value. If you implement the strategy above, you will have happier staff that are more productive and a more profitable business.

Read next: Understanding Your Responsibility As An Employer

Continue Reading
Advertisement

SPOTLIGHT

Advertisement

Recent Posts

Follow Us

Entrepreneur-Newsletters
*
We respect your privacy. 
* indicates required.
Advertisement

Trending