Best Practices

Some people wait for the future to happen. Others create their futures. The former depend on the luck of the draw while the latter cut their own deal.
How do you create your own future? By forming a vision and expressing it through a mission statement. Your dream now glitters on the horizon of the future. But you are standing in the reality of the here and now. How do you close the distance? You can't dream your way into the future. You must have a plan. You have to know where you want to go and decide how you're going to get there. The important word is "how." The word "if" won't take you there. You must approach your future with a sense of certainty that your dream is achievable.
Hannibal, the great general from ancient Carthage, once asserted: "We will either find a way, or make one...

I can't say enough about the importance of empowered employees in helping a business survive and grow, even in the worst of economic situations. When you empower your employees to make decisions quickly to take care of your customers, the results will be amazing: increased customer loyalty, increased sales, decreased employee turnover, and word-of-mouth advertising that is less expensive and more credible than anything you could buy.
Most executives agree that employees, particularly frontline employees who deal directly with customers on a daily basis, should be empowered to do whatever it takes to solve customers' problems, often they are merely giving lip service to that concept.
Most employers--and employees--actually fear empowerment...

For months, Republicans in Washington have been beating a steady drumbeat about the harm regulations have on businesses, the economy, and job creation.

While the rhetoric has been loud, it is clear regulators around the country, including the Occupational Safety and Health Administration (OSHA), are not listening as they continue to fulfill their job descriptions.

The impact of regulations on businesses is constantly up for debate; but businesses - including franchisees - cannot ignore them for the health and safety of their employees and customers or the financial impact of a fine. In reviewing recent announcements and developments from OSHA, there appears to be an emphasis on the food and service industry oversight...

Ray Harrigill believes in diversification. His Sunray Companies has restaurants (Bumpers Drive-In), tanning salons (Palm Beach Tan), fitness centers (Koko FitClub), and hotel properties (Hampton Inn), to name a few. That's because of lessons he's learned along the way.
Harrigill got his start in the restaurant business working in a multi-unit, multi-concept company. When he set out on his own, restaurants were his first choice but he couldn't open new units quickly enough to satisfy his goals. He began opening Blockbuster Video stores in 1999, quickly ramping up to four. But even then it was clear to Harrigill that the Blockbuster model wasn't "a long-term business play." So he began diversifying further.
"I invested some money in comprehensive rehab facilities, which I lost a fortune in, and almost simultaneously got into the tanning business...

We are always on the lookout for big franchisees, the kind who don't run a half dozen units but dozens of units. They're powerful, dominant, and know how to be leaders in their business and communities. That's why again this year we have teamed up with FRANdata to create and publish our annual Mega 99 rankings.
We realize numbers alone don't tell the whole story, but they do provide a great starting point. The multi-unit franchisees on this list have worked hard, witnessed highs and lows firsthand, and poured themselves into creating empires known for their sheer numbers. Beyond the numbers are the stories of real human beings. It takes a unique individual to reach this level of franchising, one who can overcome obstacles, struggles, and failures, and yet rise from the ashes...

The ideal state for all of us at work--from leadership to the front line--is to do what you love in the service of people who love what you do.

The emotion of love is often considered to be out of place or simply inappropriate in the world of business. Many even believe that good business people keep their hearts out of their work, but the opposite is true. It's the heart that brings the fire of creativity to bear on the day-to-day. It's the heart that inspires drive, loyalty, and leaps of innovative brilliance.

I'm not saying you should love every aspect of your work or job. We all have things that we have to do whether we like (let alone love) them or not. We have a technical term for that; it's called "being an adult...

We've all heard the platitudes about having a positive attitude. But does it really make a difference in the workplace? It is an interesting question since none of us are perfect and attitude may not be our strong suit.

A 2010 study by Stanford Research Institute and Carnegie Mellon Foundation with Fortune 500 CEO's found that 75 percent of long term job success depends on people skills, while only 25 percent depended on technical knowledge. The soft skills seem to matter the most. Franchisors and franchisees want team players and people who can work well with each other.

The soft skills needed are:

The best part of my job is being invited to speak to associations and corporations all over the world about the best ways to find, hire, and retain great hourly employees and their managers. I never fail to learn a lot from the folks in attendance, and these occasions are often the start of great long-term working relationships.
About six months ago, I got to chatting with a multi-unit owner attending his company's annual expo and we decided to explore whether we might work together to improve his hiring results. When I did the requisite needs analysis, we found that the areas with less-than-satisfactory results had the same root cause as those of most of my clients over the past 25-plus years: the system was written to meet the needs of HR professionals rather than those of the hiring managers in the field...

When Greg Thomas decides whether to fix or ditch a financially troubled store, he typically thinks big. "I don't pay attention to pennies, nickels, and dimes," says Thomas, franchisee of more than 30 Great Clips salons in the Southeast. "When something is distressed, saving a few nickels, dimes, and pennies doesn't do anything. You have to increase sales 25 to 50 percent overnight."
Not everyone has his constitution--nor his experience turning distressed franchise units into profit-makers. Thomas, president of Parkside Ventures in Duluth, Ga., has made it his business to know whether a store has profit potential or will continue to bleed red (for an in-depth profile of Thomas, see www.franchiseupdate-digital.com/franchisee/2011iss3)...

Never before has timing been as critical to an organization's success as it is today. While it certainly is critical to, for example, the introduction of a new product or the infusion of cash, it is equally critical when it comes to solving a customer's problem.

Technology--specifically social networks--has driven the need for timely customer complaint solutions to a new high. Those networks have put businesses throughout the world under a technological microscope, as disgruntled customers share their experiences with thousands, if not millions of people, in a matter of seconds with a simple click of a button.

In the past, customers who had a problem with a company would tell, on average, 20 of their friends, coworkers, and family members about it...

For years, Subway has prided itself on offering healthier fare for its customers. But now the brand is honing in on what it can do to promote a healthier planet. In fact, the franchisor now has 14 of its "Eco-Restaurants" open while many of its franchisees also implement a number of these "eco" elements into their existing stores. The overall goal of the eco-restaurants is a design that offers environmentally friendly aspects that help reduce energy, water, and waste consumption in cost effective ways.

"All of these new eco-restaurants reflect the brand's commitment to social responsibility and sustainability," says Marketing Director Elizabeth Stewart, who heads the brand's corporate social responsibility efforts. "We have made a commitment to make our restaurants and operations more environmentally responsible...

Last time I discussed embracing fear and love as part of the leadership experience. I explained how those who actively use the experience of fear and love daily in their attempts to change the world for the better are extreme leaders. Now it's time to take a LEAP into leadership.

Extreme leaders must take a Radical LEAP (love, energy, audacity, proof) daily. Here's how.

L: Cultivate love. The extreme leader's personal credo is akin to this theme: Do what you love in the service of people who love what you do. Many consider the emotion of love to be inappropriate in business; they believe that good business people keep their hearts out of their work. The opposite is true. It's the heart that brings the fire of creativity to bear and inspires drive, loyalty, and leaps of innovative brilliance...

If I were to ask 100 CEOs to define customer service, I would guess that 97 of them would say something like this: "Customer service is providing the customer with service that is fast, accurate, and courteous." While those are indeed elements of customer service, there is more to it, so much more.

Customer service is a moving target; it is whatever the customer thinks it is. That includes quality products, convenience, competitive prices, timely responses, reliability, a personal touch, and knowledgeable employees. Customer service means doing what you say you will do and doing it when, if not before, you say you will do it. It is operating on the belief that no transaction is complete unless the service customers receive is sufficient enough to motivate them to return...

It takes a creative mind to exercise leadership in the 21st century. In fact, it's not enough for the leader to be creative. The people who are led must also be taught to be creative.

If change is the norm for this century, then innovation is the engine of change and knowledge is its fuel. If all the knowledge in your company is stored in just one brain, then you're going to be running on empty pretty quick. Successful organizations will be those that spread knowledge throughout all levels and encourage people at all levels to apply that knowledge in creative ways.

When the leader hogs all the knowledge, then nobody knows what to do until the leader gives the word. Creative leaders don't tell people what to do; they help people decide for themselves what to do...

There's no arguing that banks, potential investors, and creditors look heavily to a company's financial statements to determine its value. However, past financials often aren't the whole story. Here are some additional factors to consider as you seek to maximize your company's value - whether you plan to sell soon or simply want to be ready when that day comes.

Proven Potential for Increased Profitability
Perhaps the most important aspect of making a business attractive to a potential buyer is building their confidence that the business has the potential for increased profitability. Of course, step one is to produce documentation showing steady, reliable revenues and cash flow, but other steps can help paint a picture of untapped potential...

Dave Melton has learned the importance of setting standards for the employees at his Domino's locations. He starts by ensuring that employees know what's expected of them on the job. For example, are they willing to work Fridays until 2:00am?

"At my franchise, all team members receive a document we call the '30 Day Expectations for New Team Members,'" says Melton. "It tells them succinctly what we expect their skill level to be after 30 days on the job." He says if an employee has trouble understanding anything a peer mentor or manager will be there to help. As a result, says Melton, the simple '30 List' has helped make jobs less daunting and mysterious.

Try adapting some of this list to your operation.

30-DAY EXPECTATIONS
Delivery Team Member Responsibilities

Most of us hate complaints. We hate to get them, and we hate to give them. John Tschohl, on the other hand, loves to do both. He views complaints as a positive, not a negative.

"When customers complain to a company about its products or services, they are giving that company an opportunity to improve," says Tschohl, founder and president of Minneapolis-based Service Quality Institute and the internationally recognized service strategist. "When you complain, you really are acting like a consultant to that particular company, letting it know where it has deficiencies. I complain all the time and, when someone complains to me, I thank them and do whatever is necessary to improve the product or service that was at the core of the problem...

Wisconsin-based Topper's Pizza just launched its first-ever "mobile pizza store" this past July. The brand is one of many testing the waters of mobile food delivery vehicles. Executives hope it's a strategic move that will help them gain a market share edge in the highly-competitive pizza sector.

Scott Iversen, Toppers Pizza's director of marketing says, "Thus far we are only using it (truck) within the delivery area boundaries of a corporate owned market. We want to determine the best ways to utilize the truck to capture additional sales from a current trade area before suggesting to franchisees to make an investment in one for their areas."

He sees numerous potential advantages to the mobile model. Iverson believes the trucks will help capture more "impulse sales" opportunities than a traditional brick and mortar location could...

They are athletes, Nobel Prize winners, and heads of state. They are role models who inspire others not only to follow in their footsteps, but to do better, dream bigger. But where, I ask you, are the customer service role models? Where are those people who have made providing customers with the best service possible not only a priority but an art?

Sadly, they are few and far between. That doesn't mean they don't exist, however. In fact, the most customer-driven executive I have ever had the pleasure to meet is Vernon Hill, founder of Commerce Bank in the United States and, most recently, of Metro Bank in the United Kingdom. Banks are notorious for bad service, but Hill set a standard that no bank in either country has ever been able to replicate...

After speaking to a customer service representative on the phone recently, I was reminded of one of my hiring tips. I know some of you reading this would love to be hiring right now rather than shrinking your staff. But when hiring is back on your agenda, make certain you get the best possible employees. Here is my laundry list for hiring smart to start:

Hire the attitude. You can do that by utilizing behavioral interviewing, which I hope is pretty much the standard for your hiring practices. Ask questions that will help you determine how this candidate will behave. You want to know more than just what they have done previously. Pose specific customer situations and get their opinions on how they would handle those scenarios.

When you are down to the last few candidates, bring them in and have them actually observe the job you're interviewing for...