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In the business world, the stakes are high and the competition is fierce, so it’s typical for CEOs to practice an authoritarian style of leadership to drive the bottom line. As younger generations prioritize purpose, balance, and empathy, servant leadership offers a natural evolution: placing human needs at the center of the business equation.
Recent studies have shown that servant leadership, a philosophy that prioritizes the needs of customers and employees over the bottom line, can boost profits while increasing morale, setting companies up for long-term loyalty and success.
So, how can we as leaders ensure we are utilizing this philosophy to benefit our franchisees, their employees, and their customers? It boils down to a few things: defining a clear purpose, reinforcing your values, and treating franchisees like partners.
The heart of any organization is its purpose. It’s the North Star guiding decision-making and communicating what your brand stands for. In a franchise system, this clarity is even more critical – it aligns diverse owners and teams under one mission. When you center your company around your franchise owners and employees, you create buy-in at every level.
A core tenet of servant leadership is stewardship – the belief that leaders are entrusted with people and resources, not entitled to them. This extends beyond financial stewardship. Supporting your people with tools, training, and encouragement is an investment in your purpose and their success.
Purpose is powerful, but only if leadership lives it out. Our actions set the tone. Employees and franchisees watch to see whether our decisions reflect stated values. When leadership is consistent and authentic, trust follows. When trust is present, performance improves.
When implemented effectively, servant leadership transforms not only the leader but the organization. One of my greatest joys is seeing teams flourish because they feel supported. In my roles, I’ve enjoyed removing roadblocks that enable the team to stay aligned with our purpose. People who feel that their leaders genuinely care for their well-being are more likely to go the extra mile, be innovative, and take ownership of their roles.
As you continue abiding by your brand’s purpose and serving your teams, you’re creating an environment where collaboration, trust, and respect are at the forefront. With franchise brands scaling rapidly and competition intensifying, it’s easy to overlook perspectives at every level. However, when practicing servant leadership, you must listen to franchisees and employees, often uncovering valuable ideas and opportunities that would otherwise be missed. Listening fosters inclusivity, making individuals feel valued.
No one likes to be told what to do, so collaboration is imperative to my servant leadership style. When I include franchisees in decision-making, they feel they have a voice and purpose in the outcome. It leads to better solutions, and those who participated provide strong validation during systemwide rollout.
Practicing empathy is also key to deepening relationships with franchisees, employees, and customers. Being a servant leader means understanding the struggles of your teams and providing both professional guidance and personal support. This kind of understanding nurtures purpose, driving engagement and productivity. The old adage that “no one cares how much you know, until they know how much you care” proves true. I have found that when I attend weddings, funerals, and team celebrations across the brand, I am demonstrating that we are more than work and providing a human touch to the relationship.
Moreover, this approach enhances organizational resilience. By listening and emphasizing empathy, you’re building a company adaptable to challenges where employees are more motivated and engaged. This ensures the company can weather tough times together. During economic downturns or disruptions, it’s not just the strength of the product that helps companies survive but the strength of their culture.
The beauty of servant leadership is its long-term approach. Some in power may focus on short-term gains, but nurturing long-term relationships with employees, customers, and stakeholders pays off. It’s not just about leaving a legacy in financial success, but also one in how people are treated, how values are upheld, and how the company impacts the world.
In franchising, servant leadership means recognizing that your success is intertwined with your franchisees’ success. By providing resources and mentorship, leaders empower team members to excel. This encourages a culture where everyone’s unique skills contribute to collective success.
Prioritizing people builds trust, fosters innovation, and creates purpose – essential qualities for any business looking to thrive in today’s marketplace. In my experience, when you invest trust in those you depend on, it comes back tenfold.
Doug Flaig is CEO of Stratus Building Solutions.