Franchise Update Magazine Issue II, 2017 - Page 24

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
LEADERSHIP Growthstrategies Change Management Collaboration eases any transition C BY KAY AINSLEY onsumers 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 check- ing account—all accomplished through technological innovation. Businesses that fail to keep up and es- tablish a competitive edge will be passed by. The winners in business today con- tinually improve quality, maintain low cost, innovate products and services to lead market demand, streamline their sup- ply chain, and take away the entrenched players’ cash cows. Change is essential for every busi- ness, and nothing propels the need for change more than advances in technol- ogy. Whether or not the foundation for change is in the franchise agreement, the foundation for effective implementation of change is leadership—within the fran- chisor’s organization and from within the franchisee network. Many of our emerging franchisor cli- ents 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, re- gardless of how it is funded, a franchi- sor should identify and understand the need and scope out the issues involved in instituting a change. They should then 22 Franchiseupdate ISS U E II, 2 0 1 7 conduct a preliminary evaluation of pos- sible solutions. This is typically done by the franchisor before involving franchi- sees and serves as a framework for future deliberations. Once the initial work has been com- pleted and before any solution is final- ized, 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 coun- cil may want to involve the entire coun- cil 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 fran- chisees, the needs and issues may be re- defined and additional research may be advantageous before a final recommenda- tion can be prepared. Consider bringing in an outside expert to work with a team consisting of the franchisor and franchi- sees in redefining the issues and evalu- ating 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 in- clude 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 implement ѡ)ͽѥٕ́ɱ́ѡɅ)ѡɅͽˊéхݡݥ)ѥѡݥѠѡɅ̸͕)]ɅхݥѼɽԴ)͡Ёͽٔͥɽ́)ѥձєɝȁՕ́ݡѡɕɸ)ѼՅѕ̸+Ʌ͕ɅѥٔɅ)ѡɅȁɽɅ́ѕɥ́ݥ)ɔ͵Ѡхѥ)ѡ+Uѕ́ѼѡɅѥ́Յ+ٕѥͥɭѥɽɅ̰)Չɕѥ́ѼЁյ)܁ѡ́ѡݥɕٔɽ)ѡ܁ɽɅ+ͥхѼɅ䁄)Ʌ͕éхѥ̸%Ё)ɕ́ѥٔȁɱ䁅д)̸ ѥٕ́Ց݅٥)Ʌȁ́ȁٕѥͥ)Aɕ͕хѥѡѼѡ)Ʌ͕ݽɬͽ)ѡɽ՝ٕѥɕѥ̰)Ʌٕɽܰ͡ȁͥݕ̰)ͱѕ̰ѡȁхɐɵ́)չѥ=ѡЁݕȴ)հ́ͅɍ́ݥѡɅ͕́ݡ)ݽɭѡɽɅQȁѼ)Օѡȁ܁Ʌ͕́)ٕɕѥѕ)Qɽ՝Ёѡѥɔɽ́ɼ)ѥٔչѥ́ɽɅ́Ѽ)ɕٕѥյ́хѥ)Ё͍ͥѡՕ́ͽѥ)ݕѡɅͽȁɅ̸͕) ɔ͡ձхѼх͠ɕѥ)́ЁѼٕɽ͔ɕձ̸)ȁ́ɔѕݥѡЁЁ)́ѡ݅丁])ѡ䁽ȁѡ͡ձݱ)չѕݥѠѡɕ)ѡ݅ͅѡЁͥѥٔɕձ́ɔ)չѕ) ́ͅ丁 ͕ͥ́ѡ)Ѽхѡȁɥͬ)ٕх䁍ѥѽ̸)Ёͬ)M̸ Ё䰁ѡ䁵䁹Ёɽչ)Սȸ)-ͱ䁥́ɕѽȁ5M)]ɱݥȁɅ͔ձд)ѡЁɽ٥́Ʌѕхѥ)٥͕ɕݽɱɥ)Ѽ܁х͡Ʌͽ̸ )хЁȁЁͱͅݽɱݥ)Ȁдظ