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What you can learn from franchising
The world’s most successful business model
The association business model
Education
Industry expertise, accreditation
Networking
Branding
Political influence
Evolution of franchising
Isaac Singer in the 1850s
After WWII
Affluent
Mobile
Television was great for branding
McDonald’s, Holiday Inn, 7 Eleven
Why businesses franchise
Not as expensive as chains
Fast
Leverage talent
Why do people buy a franchise?
Brand to attract customers
Operating system to keep customers
Expertise to grow market share
Is franchising successful?
2.3 trillion dollars in gross sale
50% retail sales
50% real estate sales
85% of hotel rooms
Anyone who owns a successful pizza parlor…
So what?It’s about managing a network
We can learn from parallel industries
The state of associations
Sense of nervousness
Uneasy about their role
World changes fast, networks slow
Associations struggle to be relevant
Easy to create a network
Easy to offer training, communication
Americans are busier than ever
Engage in unified thinking
Lead with a vision – we’re successful when…
Effective communications
Recruit/retain the right people
A Vision of QualityTrend in franchising and business
Products, services, customer experienceWhy?
A brief history of business
Making commodities available
Industrial revolution…affordable
Globalization and transparency are generating quality
Franchises focused on a quality experience?
Coffee is basically… = 3c
Grind, package, ship = 15c
Serve in a diner = $1.59
Cool name, logo, location, wi-fi, staff, ambiance, furniture, grande and venti = $3.50 to $5.00 or more
How do you sell coffee for more money…it’s the quality of the experience.
Why is quality so important?
Quality is expected
Higher margins
Competition
Time
It’s hard to focus on quality when you manage a network
Lot of voicesPulled in a different directionsHard to get them to do things
Why it’s difficult to achieve quality…
Squeaky wheels w/ complaints and bad ideas – put in memo
Make promises we don’t have to make
We ask the wrong way – if it’s free they always say “yes”
Committees and boards not in the game…they say “yes”
Why it’s hard…
Work on problems that don’t really matter
All things to all people…
We want to justify royalty/dues
And we end up piling stuff on top of stuff on top of stuff…
Until we aren’t doing anything well
Nothing we do is quality
Peter Drucker: If you want something new, you have to stop doing something old.
“We have one third of the staff and we still try to do the same things we always did…”
• Ipad• Ipod• Iphone• Laptops• Desktops
To help our members be more successful
STOP
ACCELERATE
ADD
What can we stop?
If you were starting from scratch, what would the business look like?
Because we’ve always done it
What do members not come to, read, or show interest in?
What can others do better?
What is too complex to communicate?
Resources exceed the benefits
Hard to stop
What should we accelerate?
What are our strengths?
What do people like, come to, read?
What do our surveys tell us?
What activities line up with the trends in industry and world?
Where do we get the most bang for our resources?
To help our members, what should we add?Be relentless in becoming the industry expert
Surveys are a starting point but never anonymous
Focus groups of 5 or 6
What do our members complain about?
What do their customers complain about?
What should we add?
What expertise do they need?
What can you leverage?
What networking do they need?
How can technology help us?
What segments can we help?
What government issues are emerging?
What other associations are successful? Why?
Bring in someone from outside…
Leading with a vision
What expertise do they need?
What can you leverage?
What networking do they need?
How can technology help us?
What segments can we help?
What government issues are emerging?
What other associations are successful? Why?
Bring in someone from outside…
Recap: Lead with a vision
Based on what members need to be successful
Based on quality
Stop. Accelerate. Add. (one thing)
Within our resources
1 year. 3 years.
Explain not only what we are doing but “why”
.
Communication
Complexity is the enemy of communication
Communication
1. How to persuade
2. Forming a coalition
3. A communication plan
4. Overcoming resistance
Don’t have a hammer, need persuasion
State position clearly
Present the supporting facts
Draw conclusions
Right?
Dr. Jay Conger, Director of the Leadership Institute at the University of Southern California Business School:
“The reality is that following this process is one sure-fire way to fail at persuasion.”
What emotions do you use to persuade?
Threats
Opportunities
Hope
Happiness
Success
Scarcity – the take away
Frederick the Great
Emotion not logic in your communication
If it’s just the facts they’re not going to do it
2. Build support
We respond to our peers
Cultivate relationships
Influencers willing to go public
Explain your ideas, your vision
Understand it, excited by it
Bring in an outside authority
3. Communications Plan
Have a plan
You, not us – 5:1
Big ideas face to face
Webinars second best
Include the idea in everything
70% at least 6x
Have spotters in the field
Use video
Quality of communication
Consider the newsletter and blogs you sign up for?Don’t over-communicate
Newsletter or webinar – then when importantYour website is the hub
4. Overcoming resistance to a new idea
Jack Welch:
10% are natural change agents
75% can be led
15% won’t budge
Anticipate the resistance
Use influencers
Be flexible
Reward early adopters
Celebrate early successes
Awards and recognition
People are followers
Sylvan Goodman invents the shopping cart.
Ataturk
Recruitment and Retention
You can never stop adding customers
Have a recruitment mindset
Targeted numbers
What is a recruit worth
Know your emotional triggers
Recruitment and Retention
Go public with member recruitment
Focus on renewals
Hire an intern or PT
Recruit the right people
Fewer members for more money
The network is engaged in Unified Thinking
Buy into the vision
Helping members be successful
Quality
Stop, Accelerate, Add
Communicate effectively, emotion
Recruiting the right people
Sailboats are safe in harbor, but that's not what sailboats are for
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