I am often asked to share the secrets of franchise success with my clients and audiences of franchise executives as I travel the country spreading the Franchise Bible strategies.
The most critical of the three core strategies is what I call the upside down pyramid strategy. This is more than a catch phrase or slogan. It must become a true belief in order for this strategy to affect a franchise organization for the better. Lets start with some basic facts to clarify.
What it is
The upside down pyramid is a servant leadership model that makes sure that franchise owners always come first. This must be genuine for all members of your team.
Franchising is different than any other business model in this way. A franchise organisation simply cannot thrive unless the entire corporate team is on board with this commitment. If it’s not, it would be like a medical team where some members simply did not care about healing the patient. It is a non-negotiable.
What it is not
This strategy is not a hand-holding philosophy that rewards lazy or non-compliant franchisees. One of the exciting outcomes from this system is seeing the franchise owners step up and go above and beyond the call of duty when they feel truly appreciated, valued and respected by the franchisor. I have seen amazing things happen from franchise communities that felt connected and part of the bigger picture.
Many franchise organisation executives have a lot of experience as traditional employers so they tend to try to “manage” their franchise owners as though they are employees. In most cases this is the beginning of the most common problem that I call the traditional pyramid model with the boss on top.
The key to remember at this point is the reality that the franchise owners are not employees of the company. In fact, the exact opposite is actually the case. The franchisees invested their hard earned money into the franchise company and pay an ongoing royalty as well. This means that they are the customers of the franchisor and the franchisor should value them as such.
How do you implement this strategy?
I have seen the good, the bad and the ugly in the franchise world. I can usually sense the company culture pretty quickly when I am among the franchise executive and support team. It is no surprise that the most successful franchise brands have a pretty solid grasp on this strategy. Here are some tips to get you started:
- Train: Introduce this strategy to your executive and support team and give them the opportunity to ask questions and learn. Remember that this may be a bit of a paradigm shift for some, so they may need time to get it down.
- Reinforce: Use ongoing reminders during your meetings, training sessions and conferences to keep the ball rolling. Your system must be based on things that you and your team will do consistently for a long period of time. A short burst of change followed by a return to the former status quo doesn’t work, so make sure you can commit and stick with it.
- Insist on buy-in: Everyone on your executive, training and support teams must buy in to this commitment for it to work. You have heard that one bad apple spoils the whole bunch. This is very true within a franchise organisation. You may have to replace team members if they refuse to genuinely commit.
Related: Col’ Cacchio: A Passion For Pizza
You have also heard the saying that the fish starts to rot at the head. The common denominator that I see in failing franchise organisations is almost always due to poor leadership. I often say that a decent business model with great leadership will usually thrive and a great business model with lousy leadership will usually fail.
Don’t feel bad if you are not the best leader for your business. I have seen business founders step aside and hire in leadership experts to run with their creation. Knowing that someone else is a better leader than you for your franchise organisation is a sign of great discernment and wisdom. If you are not sure just ask your franchise owners to give you a grade as the leader. I asked a franchise CEO recently if he would get an A from his franchisees and he said, “Probably not.” I advised him to get back to work and make sure that he can earn that A.
This article was originally posted here on Entrepreneur.com.
3 Employment Best Practices To Apply In Your Franchise
Brand new to franchising? As a first-time franchisee, you may need some guidance on managing your recruitment processes within your business.
You’ve just hired your first few employees. Congratulations. As an owner-operator who is also new to business ownership, navigating the human resources aspect of your franchise may be daunting, especially when growth is imminent. Your franchisor offers support, but may not want to play a huge role in recruiting and managing your staff.
“Employee management and HR compliance is a tricky topic, especially with the relationship between franchisors and franchisees. Depending on what HR support the franchisor can and cannot provide, the franchisee may be on their own in this all-important area.” – Dean Haller, President and founder of HRSentry
This, however, doesn’t mean you’ll have to blindly search your way through human resources practices, hoping you’ll eventually get it right. Invest a little time into learning the basics, and you’ll make the best decisions until you can afford to hire an HR specialist – and pick up some expertise along the way.
1. Equip newcomers with the tools for success
Consider the type of information, tools and training your new recruits may need to function productively in their new work environment – and ensure they get it. “Studies indicate that most new employees decide whether to stay or leave a company within the first six months, so be sure to be welcoming early on to help them feel part of your team,” advises Haller.
“If you’re thoughtful of your employees’ new experience, they will become more productive and engaged, and thus, more likely to stay.”
Remember the first time you went through the manuals while familiarising yourself with the franchise concept? A new employees’ experience is similar as they have to take in a lot of new information while acquainting themselves with their new workspace, colleagues and systems. Make the on-boarding easier, by reasonably introducing each aspect during orientation and training.
2. Remain stern on performance standards
Once both parties are satisfied with the training and support offered, new staff should be made aware of expectations and receive continuous and constructive feedback on their performance based on these.
Should employees fail to meet their KPIs, it’s important you’re able to identify if your best efforts have failed and whether termination is an option. “Don’t procrastinate. Make sure all performance-related reasons are documented clearly,” says Haller. “Treat the person with dignity and respect –not only because it’s the right thing to do, but because it’s good business practice and can help you avoid any potential legal action against your business in the future.”
You can avoid this situation early on by hiring employees whose CVs not only meet your business’ operational needs, your company culture too.
3. Acknowledge and reward hard work
During key periods of business growth, it’s easy to overlook good performance. And even when you acknowledge your best employees, sometimes money in the bank isn’t as meaningful as creative tokens of appreciation.
“Get creative,” says Haller. “Provide flexible work schedules, interesting assignments, or a gift certificate to a great restaurant or spa. Be mindful that it’s costly to replace a good employee, so reward your employees with some kind of benefits if you can,” he adds.
Why Your Franchise Brand Should Be Culturally Relevant
Are you going to wait for consumer pressure to redirect your marketing efforts, or is your franchise going to make customers believe you care about what they care about?
Do you understand how consumers feel about the ads you broadcast on the many media platforms they use every day? Research by Nielsen shows that all the marketing you’re paying so much for is least trusted by the buyers you’re aiming to hook. Why? Because how can you sell to a customer whose ideals you don’t identify with?
“Conversations are such a subtle but powerful tool. They can make or break reputations, brands and policies.” – Serge Vaezi, strategy and creative officer at Ogilvy
As an established franchisor with a loyal customer base, you want to ensure your marketing strategy isn’t talking at clients, but to them. Here’s how you can stop spending money in the wrong place and start measuring the right elements of your campaign:
Customers expect you to be ‘woke’
Whether you realise it or not, your brand is operating within its audience’s cultural context. Consumers are increasingly demanding that brands acknowledge and contribute to this cultural context.
“We are failing to measure the things that matter most for our client,” says Vaezi. “We spend most of the time measuring the things we create, while our colleagues in advertising spend their time measuring the impact of the things they create on consumers.”
Related: Are You On Your Team’s Wavelength?
Rather shift your focus to adapting your offering and message to your customers’ needs, desires and interests.
Watch and learn from your audience
“Listen to your audience, watch what they’re doing, listen to their behaviours, and understand what’s interesting and motivating for them,” advises Vaezi.
The insights gleaned from this exercise can be used as the basis for developing a brief aimed at becoming a part of their world, he says. Remember that the message you’ll be putting out will change as your customers change.
Sorbet, for example, launched a make-up range in early 2018 to complement its existing salon services arm and its skincare and nail products. The franchise partnered with Clicks to launch The Skin Tone Project aimed providing consumers with the most extensive foundation ranges in South Africa.
Your product doesn’t always come first
In the age of experience trumping actual products, you ought to consider developing a value proposition that shifts the focus from your product’s features and benefits, and “instead develop a narrative and positioning that acknowledges and contributes to the culture, or perhaps even resolves specific cultural tensions,” says Vaezi. “In other words, stand up for something that people consider meaningful and which is also aligned to the brand’s essence.”
This is the secret sauce to producing creative, culturally relevant campaigns that connect with influencers and leaders, while leveraging cultural values and ideologies.
Are You On Your Team’s Wavelength?
Success means being a team player as well as a team leader.
Remember that old interview question, “Are you a team player?” When you run your own business you are the team leader – the captain and the coach rolled into one usually. But on top of that, you also need to be a team player.
That means more than squeezing into your bulging To Do list automated, one-size-fits-all birthday messages or the occasionally staff party. Yes, staff lunch out, a braai at the office or a few drinks after work are good ways to put the work stresses aside and get to know your staff better.
Those basic bonding exercises are taken for granted now. In reality, any wow factor was fleeting in the first place. The days since the automatic birthday greeting impressed any employee are at least one generation back and Victorian industrialists had extensive staff entertainment programmes.
What never goes out of fashion, though, is proving to staff that you are an active part of the team, not just a figurehead. I have now been with Cash Converters for almost 25 years and nearly every day, I say a thank you for the fact that I learned the business from the ground floor up by launching our first pilot franchise.
That quarter-century of experience has shown me that leading a team proactively means you need to be:
This is more than rushing through the shop floor late for your next meeting and focused far away from the employees you are passing by. It is more than just being spotted in the hallway between your office and the carpark or even waving or nodding a greeting to an employee.
In the know
Taking the easy route here is initiating a conversation about the latest sports scores. More personalised is to ask how a staff member’s house move has gone or a child is settling into a new school. It is good for you to be reminded why your employee works for you and for your employee to know that you are aware of him or her having a life beyond a work role.
The time-and-motion pioneers who emerged after the Second World War to translate regimented army mentalities into greater industrial efficiency and productivity have long since been discredited. It rapidly became obvious that workers object to being treated like different parts of a machine.
Staff want to be treated like the human beings they are by someone who has the courage to show their own human side. In your conversations with staff, this also means showing how you are aware of the work they are doing and what they are contributing to your business.
Staff respect a boss who gives the team motivational talk and then rolls up his or her sleeves to spend some time helping accelerate the push to a new goal. As team leader, ideally you should understand and be able to carry out any job within the team. Some of the tasks might not be your speciality but keeping up to date with new techniques, materials or needs in each area means that you can make better strategic decisions.
This is about more than the capital, skills and time you have invested in growing the business. It is about sharing key goals as well as daily tasks so that your staff feel they are investing their working lives in a shared project – and so share the insights and inspirations that could be the next important key that makes your business run more smoothly and productively.
Start-up Industry Specific3 weeks ago
How Do I Start A Transport Or Logistics Business?
Snapshots9 years ago
Habari Media: Adrian Hewlett
Snapshots3 weeks ago
27 Of The Richest People In South Africa
Types of Businesses to Start3 weeks ago
11 Uniquely South African Business Ideas
Entrepreneur Profiles7 months ago
10 SA Entrepreneurs Who Built Their Businesses From Nothing
Types of Businesses to Start7 months ago
10 Business Ideas Ready To Launch!
Support for Women Entrepreneurs10 months ago
10 Successful SA Women Entrepreneurs’ Top Advice On Balancing Work And Family
Lessons Learnt3 weeks ago
6 Of The Most Profitable Small Businesses In South Africa