Consumers can customize and order their meal on a kiosk at a restaurant , eat a sandwich made by a robot , pay using a coupon that was sent to their phone just as they were making their purchase decision , and have their payment debited from their checking account — all accomplished through technological innovation .
Businesses that fail to keep up and establish a competitive edge will be passed by . The winners in business today continually improve quality , maintain low cost , innovate products and services to lead market demand , streamline their supply chain , and take away the entrenched players ’ cash cows .
Change is essential for every business , and nothing propels the need for change more than advances in technology . Whether or not the foundation for change is in the franchise agreement , the foundation for effective implementation of change is leadership — within the franchisor ’ s organization and from within the franchisee network .
Many of our emerging franchisor clients have incorporated a technology fund into their franchise agreement to enable the system to develop and implement programs driven by technology that will enable them to keep them ahead of their competition .
Established franchisors who currently do not have a technology fund may want to think about adding such a fund to their franchise program — a task often easier said than done . Some franchisees may see that it makes great business sense and will jump on the idea ; others may view it as another way for the franchisor to get into their pocket and will resist .
Involve your franchisees To lead the system through change , regardless of how it is funded , a franchisor should identify and understand the need and scope out the issues involved in instituting a change . They should then
LEADERSHIP Growthstrategies
Change Management Collaboration eases any transition BY KAY AINSLEY
conduct a preliminary evaluation of possible solutions . This is typically done by the franchisor before involving franchisees and serves as a framework for future deliberations .
Once the initial work has been completed and before any solution is finalized , franchisees should be brought into the discussion . Franchisees are on the front lines and acutely aware of what is occurring in their marketplace and how it affects their daily business . They also understand the financial performance of their business and what monies may be available to invest in enacting a change .
Systems with a franchise advisory council may want to involve the entire council or set up a smaller task force that can help speed the process . Systems without an established council will want to recruit franchisees representing both large and small businesses in rural and urban areas . It is also a good idea to include those you think will be favorable and those who you believe will oppose any change .
As a result of discussions with franchisees , the needs and issues may be redefined and additional research may be advantageous before a final recommendation can be prepared . Consider bringing in an outside expert to work with a team consisting of the franchisor and franchisees in redefining the issues and evaluating new solutions . A third party can take out any emotional aspects and help people focus on the issues based on the facts at hand . They can also help develop an implementation plan and timetable for enacting the change based on their experience in similar situations .
Making it work The implementation plan should include how the franchisor will support the change with :
• Testing . Ideally , the change can be tested in a few locations in the real world before it is rolled out to the entire system .
• Franchisor staff training . Key to the success of implementing the change ( but sometimes overlooked ) is the training of the franchisor ’ s staff who will be supporting the change with the franchisees . Well-trained staff will be able to troubleshoot and solve simple problems and articulate larger issues when they return to headquarters .
• Franchisee training . Effective trainthe-trainer programs and materials will help ensure a smooth implementation of the change .
• Updates to the operations manual .
• Advertising , marketing programs , and public relations to let consumers know the benefits they will receive from the new program .
• Financial assistance to help defray a franchisee ’ s implementation costs . It can be offered as an incentive for early adopters . Common incentives include waiving a training fee or monies for advertising .
Presentation of the change to the franchisee network can be done in person through a convention , regional meetings , traveling roadshow , or by using webinars , newsletters , and other standard forms of communication . One of the most powerful sales forces will be the franchisees who worked on the program . Their ability to influence their fellow franchisees cannot be overestimated .
Throughout the entire process a proactive communications program is key to preventing rumors and facilitating an honest discussion of the issues and solutions between the franchisor and franchisees . Care should be taken to establish realistic goals and not to overpromise results . Few major changes are enacted without at least a couple of hiccups along the way . When they occur they should be acknowledged and communicated along with the remedy in the same way that positive results are communicated .
Change is necessary . Businesses that fail to maintain their leading edge risk being overtaken by competitors . Just ask Sears . But hurry , they may not be around much longer . n
Kay Ainsley is managing director of MSA Worldwide , a leader in franchise consulting that provides strategic and tactical advice based on real-world experience to new and established franchisors . Contact her at kainsley @ msaworldwide . com or 770-794-0746 .
22 Franchiseupdate ISSUE II , 2017