Franchise Update Magazine Issue I, 2013 | Page 6

From the editor’s desk BY Kerry Pipes T No Place for Silos o most of us it would seem counterintuitive to have separate “silos” of departments and managers who exist in their own bubbles independent of one another. Yet, some organizations continue to operate in just such a vacuum. Tearing down internal silos and replacing them with a “development culture” is the focus of this issue. Eliminating silos and the boundaries they create can have a critical, positive impact on organizational success. And not just at the corporate or management level. A silo mentality, culture, and structure can affect everything from internal operations and recruiting to field support, training, and ultimately, customers—as well as the morale and retention of both franchisees and corporate employees. We spoke with several leading franchise executives while working on this issue. Time after time, their thoughts and comments became clear and aligned: there is no place for silos in franchising (or in most businesses today), regardless of brand, size, industry, or philosophical or strategic approach. I love what Jamie Davis, executive director of business development at Donatos Pizza says about silos. “Silos are good for one thing, and one thing only: holding stuff back.” How true. As he points out, franchising is fragmented and disconnected by its very nature. Nevertheless, brands must change their internal thinking and structure so that sales, marketing, operations, real estate, construction, training, and every other department interact more and support one other in the greater pursuit of unit-level profitability and system growth. It’s all about getting everyone on the same page, with the same information, 4 Franchiseupdate Iss u e I, 2 0 1 3 and rowing in the same direction. Franchising executives who “get it” understand that eliminating silos allows organizations to better communicate, focus more clearly on system-wide goals and objectives, empower innovation and continuity, shed light on what is expected, increase accountability, and propel successful brands for years to come. What are you doing to break down your silos? In this issue, we also introduce two changes. First, FranchiseLawNews is now part of Franchise Update magazine, rather than a separate, standalone publication accompanying the issue. The rationale is that legal issues confronting franchisors are part and parcel of operating a franchise system, and should be included as part of franchise executives’ everyday thinking. FranchiseLawNews begins on page 49. The second change is the re-introduction of regular coverage of international expansion as a growth strategy (page 41). Operating overseas involves differences in laws and regulations, customs about doing business, cultural preferences and tastes, and a host of issues most U.S. companies are unfamiliar with. Opportunities abound for U.S. brands to expand internationally. Many large brands have led the way in Europe, Latin America, and Asia, and new inroads are being made into Africa. But as with learning to speak a new language, there is nuance and idiom beyond the basics of spelling and grammar that take time and experience to learn. We’ve begun with a single article by Bill Edwards, CEO of Edwards Global Services, who shares a perspective gained from his 40 years of international business experience, including more than a decade as a master licensee in China and Eastern Europe. n Franchise update|Q1 CHAIRMAN Gary Gardner CEO Therese Thilgen President Steve Olson Vice President Operations Sue Logan Vice President Business Development Barbara Yelmene Business Development Executives Jeff Katis Judy Reichman Executive Editor Kerry Pipes Managing Editor Eddy Goldberg ART DIRECTOR Franchise Update media group Samantha Calden DESIGN & PRODUCTION FRANCHISE UPDATE MAGAZINE www.petertucker.com Internet Content Manager Benjamin Foley Sales and Subscription Department, Office Manager Sharon Wilkinson Project Manager, Media and Business Development Christa Pulling Contributing Editors William Edwards Evan Hackel Darrell Johnson Marc Kiekenapp Jack Mackey Steve Olson CONTRIBUTING WRITERS Debbie Selinsky Helen Bond Advertising and Editorial Offices Franchise Update Media Group 634 N. Santa Cruz Ave., Suite 200 Los Gatos, CA 95030 Tel: [phone] Fax: [phone] Send manuscripts and queries about story assignments to: [email protected] franchising.com franchiseupdatemedia.com franchiseupdate.com mufranchisee.com Franchise UPDATE magazine is published four times annually. Annual subscription rate is $39.95 (U.S.) For subscriptions email [email protected] or call [phone] For reprint information contact Foster Printing at [phone] www.fosterprinting.com