A seven year empirical research study into franchising success factors identified 12 silent killers that lurk around franchise systems and hold back success. However, there are certain things that you can do to identify and then basically eradicate the silent killers - so that you can get on with driving your network towards the kind of success enjoyed by the world's strongest and most successful franchise groups.
This blog explores Silent Killer #1 which is all about failing to fanatically follow a unifying vision to develop successful franchisee partners.
Examples of wrong unifying visions might be to expand into new regions or overseas, to become more corporate, shareholder ROI, founder wealth – these are all wrong unifying visions.
You can avoid silent killer #1 by adopting a single simple unifying vision that your sole purpose as a franchisor is to develop wealthy, successful franchisee partners. All other goals and objectives will follow if this Unifying Vision is in place
Jim Collins, in his legendary book Good to Great[i], reveals that great companies founded their business strategy and decision making on a deep understanding along three key dimensions.
“What they can be best in the world at.”
“What drives their economic engine.” And
“What they are deeply passionate about.”
Great companies then translated this understanding into a simple, crystalline concept which became their Unifying Vision.
In a franchise system, a franchisor should become best in the world at developing successful franchisee partners. When driven by this vision, all decisions are guided by the potential for Franchise Partner success.
Royalties, franchise fees and in some cases supplies and real estate, drive your economic engine. Therefore, the success of a franchisor is driven by the success of their franchisee partners. Consequently, regardless of brand, industry or technology, the success of your franchise system is dependent on your ability to develop and replicate successful franchisee partners.
This means developing the competencies, attitudes, skills and knowledge (CASKs) identified as imperative for running a highly successful franchise business in your industry niche. When driven by this vision, all decisions are guided by the potential for franchisee partner success.
This is a vision that every member of the franchisor team should be passionate about. This Unifying Vision should act as a navigation beacon for all to follow.
This simple vision should be used to unify your franchising system. This is the simple, crystalline concept that should guide all efforts. Jim Collins calls this the Hedgehog Concept.
Your Unifying Vision of developing successful franchisee partners should drive strategic planning and decision making. Every member of the franchisor team should use this Unifying Vision to guide their attitudes, behaviour, and actions. It isn’t just a Unifying Vision; it’s an innate core value that becomes a litmus test for everything you do.
So, when Blockbuster recognised the threat that new technology could have on their brand if instead of selling out for personal financial gain, the CEO had focused on the future success of his franchisee partners, he would have had the chance to harness the knowledge around him and create a great franchise system, and rather than being destroyed by Netflix they may just have been a flash in the pan!
Blockbuster in the 1990s had the brand name and the market share to achieve this[ii]. The threat that new technology could have on their brand was recognised as far back as 1991. Yet they failed to overcome this threat and filed for bankruptcy nineteen years later in 2010. They didn’t put the success of their franchisee partners first and reinvent themselves to meet the future demands of their target market. Instead of facing the growing threats to the traditional video store, Blockbuster’s CEO decided to sell Blockbuster and pull out, putting personal financial gain ahead of the wellbeing of his franchisee partners.
So don’t let Silent Killer #1 lurk around your franchise system and cause harm. You need a big picture strategic plan that is unwavering in its pursuit of developing successful franchisee partners. I am a big fan of Stephen Covey’s 7 Habits of HighlyEffective People,[iii] and these, along with his more recent 8th Habit,[iv] very clearly fit with creating a strategic plan to achieve your vision. So be proactive and be an agent of change—get started now. Begin with the end in mind of creating a great franchise system, piloted by wealthy, successful franchisee partners, and attracting high calibre new franchisee partners and team members.
Applying the seven habits means putting first things first by identifying what is necessary and urgent right now and what could you accomplish quickly to gain some quick wins. Think win-win by creating a Unifying Vision to pursue the development of successful franchisee partners above all else. Incorporate knowledge creation in your plan by seeking first to understand and then to be understood. Synergise by generating optimal cultural conditions for trust, collaboration, and mutual supportiveness to thrive and continually sharpen the saw by making sure your team constantly renew in four basic areas of life: mind, body, soul, and spirit.
Finally, the eighth habit is all about moving your franchise system from effectiveness to greatness which is imperative for survival in the information/knowledge age of the twenty first century.
It takes discipline to stick to an unwavering determination to pursue your Unifying Vision above everything else. It takes discipline to stick with strategies for long enough to engage the engine cogs and keep the engine turning and building momentum. Jim Collins i found that to achieve sustained great results, companies need “a culture of discipline.” This means self- disciplined people engaging in “discipline of thought” who are prepared to take “disciplined action.”
To learn more about the 12 Silent Killers of Franching and how to prevent them from causing harm read The Ultimate Franchising Success Formula by Jan Timms.
You can find out whether there are any silent killers lurking around that could harm your franchise system by taking the quiz on this link.
When you have completed the quiz you will receive a link to a short video that explains the silent killers identified by your quiz results and you will also receive a more detailed report that discusses your priorities for controlling these silent killers in the future.
Jan Timms is a speaker, author, mentor, coach and facilitator of learning who specialises in supporting franchise systems throughout the world achieve greater success.
After spending fifteen years in in the franchise sector, holding various senior management roles, Jan founded Get Smart Services in 2011. She completed a seven-year empirical research study in 2020 that created the Ultimate Franchising Success Formula framework and became the catalyst for her bestselling book and eLearning and coaching programs. Read more about Jan’s expertise and achievements on her LinkedIn profile or visit this link.
[i] COLLINS, J. (2001). Good toGreat, London, England, Random House Business Books [ii] DAVIS, T. & HIGGINS, J. (2013). A blockbuster failure: how an outdated business model destroyed a giant. [iii] COVEY, S. R. (1989). The Seven Habits of Highly Effective People: Restoring the Character Ethic, New York, Simon and Schuster. [iv] COVEY, S. R. (2004). The 8th habit: from effectiveness to greatness, New York: Free Press.
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