Smooth operation
Steve Emmerson on how a smart approach to execution is a must for successful franchisees:
This article examines the key success factors for an aspirant or ambitious franchisee. The three themes that I explore in this series are: Engage, Execute and Evolve. This article is about how a franchisee should execute his or her chosen brand.
You’ve finished your last interview and been given a thumbs-up by the franchisor’s recruitment team. After months of due diligence, business planning and soul searching, you have found the best franchise for your skills and circumstances.
Well, now the real hard work starts. You might think that your first trading day is the end of the process: now you have to bring to life everything you’ve learnt in training. When it comes to the habits of successful franchisees, three executional attributes come up time and time again: a relentless focus on the system, standards and service.
System:
During your training program you will be taught the know-how that underpins the franchise.
You will be given a manual, which details how things get done. My own training with Dunkin’ Donuts ended each evening with another manual on coffee, donuts or cleaning and a heavier briefcase! When your franchise is open for business this entire body of work needs to be put into action.
You will need to fine-tune your labour management system with regard to scheduling and employment law compliance. You will likely be using several checklists to ensure you are following the standard operating procedures both front and back-of-house. You will need to have your stock prepared and be ready to monitor sales and the impact of any promotional campaigns.
From day one you will need to be confident in the health and safety aspects of your franchise. The list goes on and on!! The point is this: the thing you bought with your franchisee fee is the SYSTEM. Follow it and you are likely to succeed.
Standards:
Execution of the franchise system is typically measured by adherence to a number of brand standards. These can be objectively measured and are used by the franchisor to monitor franchisees’ compliance to the terms of their franchise agreement. They are detailed in the operations manual and are implemented by following the system as detailed above. Successful franchisees monitor their own standards and ensure they are achieving optimum performance. The standards don’t exist for the benefit of the franchisor. They exist as a set of “promises” to the customers that the brand you have bought into stands for. It reduces risk and ‘search costs’ for the customer.
Things like speed of service, product quality and cleanliness are typically fundamental components of brand standards.
Service:
It’s people that deliver franchise products, not machines! Therefore, the quality of ‘service performance’ is a vital component in the success of a franchise. The skill of a franchisee to pick the right team or deliver the brand promise consistently will be an important part of the business’s success or failure. Giving the staff appropriate roles and responsibilities, hiring and training great personalities and providing a positive/rewarding work environment will be key.
An important issue will be complaint resolution. Make sure that staff are trained to deal with any customer concerns promptly. Pro-actively seek feedback by calling customers after service to check they are happy. This is a tactic frequently used by Domino’s franchisees to check delivery times and product quality. As well as a focus on systems, standards and service, the best franchisees I’ve worked with have some other attributes that make them successful.
One thing successful franchisees all have in common is the ability to see what is not working and then deal with it promptly. Have we got the marketing wrong? Picked the wrong manager? Generally, they’ll look to fix things and will drill down into the operation to find the weak point. Another skill is their ability to deal with their franchisor.
Great franchisees know that a positive relationship with the head office and support team is an important part of their success. They aim to be pleasant to deal with and always attend meetings and make a contribution. You’d be surprised how much the franchisor will do to support the “good guys”! Perhaps more than any other quality, however, that all great franchisees share, is that they develop and nurture strong teams.
Whether this is a one-man franchisee with a supportive family or a multiple owner of a major business employing dozens of staff, great franchisees all build a team focused upon perfect execution. Indeed, this team will help shoulder the burden of managing your own business. Maybe even help you have a day off! In conclusion, once you’ve bought your franchise, you then have to make it happen with real customers day, in day out. The best franchisees focus on systems, standards and service to succeed.
Andrew Emmerson Andrew is the co-author of ‘Franchising: How both sides can win’. He has held senior positions at a number of franchise companies across the globe.
