Working on the Business, Not in It Strategic Thinking for Franchisors

Transcription

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2 Working on the Business, Not in It Strategic Thinking for Franchisors

3 Presenters: Kenneth L. Hutcheson, CFE President, US Lawns Jennifer S. Roberts, CFE COO, KinderGolf Moderator: Lonnie Helgerson, CFE President & COO, Ident-A-Kid & emed-id

4 Do you have a strategic plan? Before you answer that question let s ask and answer two other questions. What is a strategic plan? High Level - The roadmap for the future of your business. It is the framework to make all future major business decisions; decisions on products, services, facilities, organizational structure, and a pathfinder for business opportunity. It is the hedge against uncertainty, against totally unexpected developments.

5 Do you have a strategic plan? Why is it critical to have a strategic plan? If you were a doctor, would you operate on a patient without a procedure in mind? Would you go to war without a strategy in mind? Would you run for political office without a campaign strategy? Would your answers depend on whether you are right or leftbrained? If you don t know where you re going, you ll probably wind up someplace else. Yogi Berra

6 Do you have a strategic plan? Why we have a plan- Strategic planning leads to strategic management! Our objective in building a plan was to address and define- Our mission Our vision Our goals Our objectives Our roles and responsibilities Our timelines

7 Do you have a strategic plan? The questions we wanted to answer- Why are we in business? Vision and Mission How do we do business? Culture and Values Where are we now? Reality check GAP analysis Where do we want to be? Strategies

8 Do you have a strategic plan? The questions we wanted to answer, (continued)- How can we get there? Goals Tactics Budgets Timeline Organizational structure

9 Do you have a strategic plan? The questions we wanted to answer, (continued)- How will we know when we ve arrived? Milestones Reports Financial statements Feedback from customers

10 Involve your franchisees in planning Involving your franchisees in strategic planning will create better buy-in and also allow you to hold them accountable. The three most common ways to involve your zees is through creating committees such as the franchise advisory council (FAC), marketing advisory council (MAC) and the franchisee mentoring programs. Let s discuss each committee and how to put them to work for your system.

11 Advisory councils or committees FAC Franchise Advisory Council Typical focus is on strategy planning, zor/zee relations, system cohesion, vendor relations, new product/service offerings, etc. MAC Marketing Advisory Council Typical focus is on how to spend mktg/ad $$ to benefit all zees. Also to focus on getting most out of strategic alliances. Franchisee Mentoring Programs Builds bond between new zees and established zees, help promote proper growth and overall system harmony.

12 Selecting the right franchisees When putting together any type of advisory panel/council, you need to have a good cross-section of franchisees. Established zee, mid-experienced zee and newer zee. Female, male, couples, family-owned, etc. All advisory participants should be in good standing and follow the system. You also need zees who aren t afraid to share their ideas but who are equally willing to listen to the ideas of others.

13 Tips for involving franchisees Assign each zee to ask his/her peers about their ideas for growth. Ask the council/committee members where they would like to see the company grow? Have them help establish overall goals w/you and be accountable for organizationwide growth not just their individual locations.

14 Challenges to involving zees Engaging zees to a certain point is easy but keeping them engaged is the real challenge. Hold quarterly update conference calls, semi-annual meetings. Keep calls short and to the point, cover all topics and keep on track. Send out agenda and action items in advance. Meetings should be no more than 1 day in length, with a well prepared agenda, specific action items and pre/post work for all members.

15 Should you compensate? Often times we are asked if you should compensate your zees for participating on a committee? Ideally you want them to participate for the passion of it, not for compensation. If you compensate, you must disclose. Instead pay for travel, accommodations, free attendance to convention, etc.

16 Final thoughts on involving zees You need to have a well-defined program and plan. Watch the process closely. Check in frequently to make sure they are staying engaged. Give accolades in newsletters and at convention for job well done. Make them earn the right to be on the committees. Must follow the system and be a good role model.

17 Blue Ocean Strategy Create Uncontested Market Space Make Competition Irrelevant

18 Is not your traditional strategic planning session! Cirque Du Soleil The classic example. Companies traditionally measure and chart strategy course based on competitors. BOS is highly academic and measured. BOS takes serious time commitment.

19 Red Ocean vs. Blue Ocean Red Ocean Compete in existing market space Beat the competition Exploit existing demand Make the value-cost trade-off Align the whole system of a firm s activities with its strategic choice of differentiation or low cost Blue Ocean Create uncontested market space Make the competition irrelevant Create and capture new demand Break the value-cost trade-off Align the whole system of a firm s activities in pursuit of differentiation and low cost

20 The Strategy Canvas Central diagnostic and framework for building a compelling BOS. Captures the current state of play of your company in the marketplace. Propels you to action by refocusing you from competitors to alternatives and from customers to noncustomers of the industry. A graphic depiction of a company s position. Generally a me too strategy.

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22 Other Process Tools

23 Other Process Tools Value Curve. Buyer Experience Cycle. Buyer Utility Map. Sequence of BOS. 3 Tiers of Noncustomers. Tipping Point Leadership. Many Others.

24 Resources Blue Ocean Strategy W. Chan Kim Renee Mauborgne

25 Thank You Questions & Answers Please complete and turn in your critique form.