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: 800-289-4232 Fax: 408-402-5738
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 (408) 997-7795
For reprint information
contact
Foster Printing at (800) 382-0808
www.fosterprinting.com