lessons learned - canadian franchise association · lessons learned •very long effort but...
TRANSCRIPT
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Lessons Learned:
Continuous Franchise Performance Improvement
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Introduction
Jason Kealey, Eng.
(CEO FranchiseBlast)
Developed a platform that
empowers franchisors to better
manage their systems.
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Introduction
Pino Di Ioia, MBA (CEO,
BeaverTails) & Kathy Slotsve
(Operations Director)
Inherited a system lacking
structure and introduced
sweeping changes
over the last 5 years.
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Our thoughts on how to:
1) Improve franchise compliance
2) Engage franchisees via benchmarking
3) Help franchisees increase profits
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BeaverTails: Context & Goals
We bought a brand that was just turning 30...
We wanted to ensure it would be
prosperous for another 30 years!
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Key Strategy
Additional growth required US expansion,
having exhausted Canadian locations.
This would further complicate distance and
sense of connectedness with our stores
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Prerequisites to Growth
#1: CONSISTENCY
We need to standardize and automate our processes
(sharing Excel files was no longer sufficient)
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Prerequisites to Growth
#2: KNOWLEDGE
We need to make data-driven decisions
(we were flying blind)
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Prerequisites to Growth
#3: EVOLVE
We need to gradually change our company culture
(it’s not going to happen overnight)
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How to Address these Weaknesses?
Analyze
Improve
Do
Continuous Franchise Improvement
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Case Study
At BeaverTails we first set out
to make our policies more
clearly known.
COMMUNICATE
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Case Study
Next step: Measure all
decisions throughout 2016
MEASURE
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Case Study
In 2017, we’ll benchmark every
outlet to the best practices as
measured throughout 2016
BENCHMARK
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• Audits
• Customer Satisfaction
• P&Ls
• Back-of-House
Management
• Communication
Initiatives: 5 Focus Areas
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Initiatives Aligned to Key Objectives
1) Improve franchise compliance
2) Engage franchisees via benchmarking
3) Help franchisees increase profits
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Case Study #1:
AUDITS
GOAL:
Improve standardization
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AUDITS: CHALLENGES
Lack of brand consistency
• Non-standard operational procedures
• Franchisees historically given free reign
• Wide geographic distribution
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AUDITS: CHALLENGES
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AUDITS: FIRST ITERATION
• Hire Field Support Coaches
• Perform field visits
• Preliminary paper audit
Catch up with industry standards
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AUDITS: LIMITATIONS
• Paper reports hard to keep track of
• Follow up actions fall through the cracks
• Unable to pinpoint system-wide weaknesses/trends
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AUDITS: SECOND ITERATION
• Field audits app
• Increased expectations from Coaches
• Concerted effort with legal&marketing
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AUDITS: LESSONS LEARNED
• Systemizing evaluations is a prerequisite
• Easily accessible history improves effectiveness
• Generated actionable insights guide initiatives
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AUDITS: EXAMPLE
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AUDITS: EXAMPLE
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Case Study #2:
CUSTOMER SATISFACTION
GOAL:
Leverage customer feedback to
improve store performance
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CUSTOMER SATISFACTION:
CHALLENGES
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CUSTOMER SATISFACTION:
CHALLENGES
Lack of consistent, actionable feedback
• Client feedback inconsistent and sparse
• Impossible to track in an effective way
• Lack of franchisee involvement
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CUSTOMER SATISFACTION:
FIRST ITERATION
Initiate feedback internally
• Secret Shopper program
• Emailed feedback ([email protected])
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CUSTOMER SATISFACTION:
LIMITATIONS
• Lack of feedback volume
• Follow up actions fall through the cracks
• Unable to pinpoint system-wide weaknesses/trends
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CUSTOMER SATISFACTION:
SECOND ITERATION
• Customer Satisfaction App
• Online review management software
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CUSTOMER SATISFACTION:
LESSONS LEARNED
• Make it easy & visible for clients
• Go where your clients are already posting
• Make sure your feedback analysis is balanced
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CUSTOMER SATISFACTION:
EXAMPLE
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Case Study #3:
P&Ls
GOAL:
Improve unit-level economics
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P&Ls: CHALLENGES
No visibility into P&L statements
• No centralized POS system (impossible for us)
• Very rough supplier purchase reports
• Unable to identify franchisee fraud
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P&Ls: FIRST ITERATION
• Simple purchase database
• Find purchasing anomalies
• Request/obtain P&Ls
Gather Baseline Info Manually
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P&Ls: LIMITATIONS
• Supplier’s data hard to compare month-to-month
• Lots of overhead for Coaches to obtain info
• Manually creating store SWOT is time-consuming
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P&Ls: SECOND ITERATION
• Automate self-reporting of simplified P&Ls
• Automate benchmarking of KPIs
• Automatically share this information back
• Coaches leverage benchmarks to make an impact
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P&Ls: LESSONS LEARNED
• Narrow focus on a few key performance metrics
• Make it as easy as possible for the franchisees
• Develop action plans for each type of weakness
• Share information back to increase engagement
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P&Ls: EXAMPLE
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Case Study #4:
BACK OF HOUSE MANAGEMENT
GOAL:
Streamline operations &
facilitate collaboration
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BoH: CHALLENGES
Lack of coordination & communication
• No systemized tracking available
• Departments lacked coordination on key projects
• Hard to track employee involvement
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BoH: FIRST ITERATION
• Manually create
employee scorecards
• Manually track
project advancement
Determine Employee & Department Priorities
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BoH: LIMITATIONS
• Inconsistent tracking
• System unable to keep up with real-time updates
• Lack of coordination between departments
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BoH: SECOND ITERATION
• Project management App
• Online creation of Action Plans
• Online management of assigned tasks
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BoH: LESSONS LEARNED
• Value in systemizing repeated projects
• Can identify root causes of project delays
• Everyone knows what’s expected of them
• High-level insights on project evolution
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BoH: EXAMPLE
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Case Study #4:
COMMUNICATION
GOAL:
Engage franchisees
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COMMUNICATION:
CHALLENGES
Franchisees overly autonomous & unresponsive
• No forums for inter-communication
• Front-line staff are unreachable
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COMMUNICATION:
CHALLENGES
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COMMUNICATION:
FIRST ITERATION
• Newsletters/Annual Virtual Conference
• Revamped training materials & videos
• Mobile app to push news to front-line staff
Initiate Communication
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COMMUNICATION:
LIMITATIONS
• Chain culture slow to evolve
• Training materials not proactively consumed
• Franchisees don’t proactively help roll-out of app
• Staff requiring initiatives to participate
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COMMUNICATION:
SECOND ITERATION
ONGOING: Still researching best ways to weave in
training & engagement in day-to-day operations
Facebook at Work: allows secure
communications with franchisees and
staff where they are already active
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COMMUNICATION:
LESSONS LEARNED
• Very long effort but persistence pays off
• Proactively find repeatable successes
• Share these to increase the value of engagement
• Communicate expectations and payoffs to system
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Conclusions
Achievements (Development)
• Opening 3x the amount of
stores/year than previously
• Double-digit store count
increases
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Conclusions
Achievements (Sales)
• Double-digit sales
increases/year
• Gains are increasing
year-over-year 2008-20092010-2012
2013-2015
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Conclusions
Achievements (Sales)
• Roughly 20% increase in same-store sales at
existing locations
• New stores out-perform existing locations
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Conclusions
Align your efforts with your key objectives
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Conclusions
Keep it simple
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Conclusions
Make data-driven decisions
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Conclusions
Advance continuously – don’t be afraid of failure
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