Learning Management Systems — Has Covid-19 Hastened Their Arrival?

By: Darrell Johnson | 4,723 Reads | 36 Shares

Featured in: Franchise Update Magazine: Issue 3, 2020

%3Cp%3ENow+that+franchise+businesses+have+adjusted+and+the+paths+through+the+crisis+have+been+determined%2C+it%26rsquo%3Bs+time+to+give+some+thought+to+what+the+post-recovery+landscape+will+look+like.%3C%2Fp%3E%0D%0A%3Cp%3EFor+most+of+the+franchise+community%2C+that+conversation+is+about+the+post-crisis+consumer.+However%2C+I+think+we+should+be+giving+equal+thought+to+another+issue%3A+%3Cem%3EHow+has+the+franchise+business+model+itself+been+permanently+changed%3F%3C%2Fem%3E%3C%2Fp%3E%0D%0A%3Cp%3EIf+a+franchisor+is+merely+adjusting+to+the+new+consumer+and+using+its+old+approaches+to+executing+the+business+model%2C+I+think+that+system+will+be+left+behind.+Franchisors+are+responsible+for+the+execution+of+11+functional+areas.+I%26rsquo%3Bll+give+an+example+of+how+a+functional+area+probably+will+not+change%2C+and+another+of+how+one+already+is.%3C%2Fp%3E%0D%0A%3Cp%3EFor+the+former%2C+let%26rsquo%3Bs+look+at+franchise+development%3A+a+franchisor+makes+a+connection+with+a+prospect.+This+functional+responsibility+has+evolved+greatly+over+the+past+couple+of+decades.+The+central+part+of+the+development+process+is+a+mutual+evaluation+by+franchisor+and+prospect.+Until+March+of+this+year%2C+this+mutual+evaluation+was+largely+anchored+in+face-to-face+interaction+at+some+point+in+the+development+process%2C+frequently+with+discovery+day+visits.+While+prospecting+has+evolved+a+lot+over+the+decades%2C+the+mutual+evaluation+process+almost+always+involved+judging+each+other+through+personal+contact+before+a+final+commitment+was+made+by+both+parties.%3C%2Fp%3E%0D%0A%3Cp%3EWill+that+change%3F+Perhaps%2C+but+I+don%26rsquo%3Bt+think+hours-long+Zoom+calls+will+substitute+for+physically+spending+many+hours+together+to+truly+assess+each+other+and+address+the+emotional+factors+that+lead+to+career-changing+decisions.+To+draw+an+analogy%2C+online+dating+works+to+connect+two+people+and+can+go+on+for+a+long+time.+But+actually+spending+physical+time+together+seems+to+be+the+best+way+to+determine+the+likely+long-term+success+of+two+people.%3C%2Fp%3E%0D%0A%3Cp%3EOn-screen+interplay+and+pretend+elbow+bumps+are+not+as+comforting+as+hugs+%26ndash%3B+or%2C+for+franchise+prospects%2C+firm+handshakes.+For+this+functional+responsibility%2C+online+dating+might+be+the+only+way+to+get+back+in+the+game+today%2C+but+it%26rsquo%3Bs+likely+to+be+an+inferior+way+to+bring+new+prospects+into+the+fold%2C+and+I+would+expect+a+return+to+in-person+discovery+days.%3C%2Fp%3E%0D%0A%3Cp%3EThe+same+will+not+be+true+for+other+functional+responsibilities%2C+in+my+opinion%2C+as+they+are+likely+to+be+permanently+affected.+I%26rsquo%3Bll+use+the+example+of+franchisee+onboarding.+Most+franchisors+required+onsite+training+at+corporate+locations+right+up+to+the+start+of+the+crisis.+Online+guides+and+manuals+have+been+a+part+of+many+franchise+programs+for+some+time%2C+but+franchisee+onboarding+has+not+relied+on+them+exclusively.+Yet%2C+learning+management+systems+%28LMS%29+have+made+major+training+leaps+in+the+past+decade.+From+a+technology+standpoint%2C+an+LMS+seems+specifically+designed+for+the+conditions+the+pandemic+has+created%3A+distance+learning.%3C%2Fp%3E%0D%0A%3Cp%3EThe+challenges+our+educational+system+is+confronting+actually+make+the+adoption+of+LMS+into+the+onboarding+process+easier+to+embrace.+I+would+go+further+and+say+it+will+become+a+competitive+advantage+for+franchisors+that+offer+it.+Think+about+it+from+a+prospect%26rsquo%3Bs+standpoint.+Many+new+franchisees+are+seeing+their+children+take+online+courses.+Why+shouldn%26rsquo%3Bt+a+franchisee+be+able+to+learn+at+their+own+pace%2C+under+your+watchful+eyes%3F+Even+if+post-Covid+onboarding+includes+on-site+interaction%2C+it%26rsquo%3Bs+not+hard+to+see+how+the+efficiency+and+lower+per-unit+cost+of+using+an+LMS+will+become+appealing+to+franchisors.%3C%2Fp%3E%0D%0A%3Cp%3EThe+reason+we+haven%26rsquo%3Bt+already+seen+it+more+frequently+in+franchising+simply+is+the+set-up+cost.+The+platform+can+run+%2450%2C000+to+%24100%2C000+to+implement.+While+some+franchisors+can+make+that+type+of+investment%2C+most+can%26rsquo%3Bt%2C+especially+with+their+budgets+under+pressure+these+days.+If+cost+is+the+challenge%2C+scale+is+the+answer%2C+and+franchising+has+historical+experience+on+its+side+to+solve+this%3A+shared+platform+costs.+The+franchising+business+model+is+built+around+consistency+and+uniformity%2C+characteristics+well-suited+for+an+LMS.+Franchising+also+has+a+cooperative+mindset+built+right+into+other+functions%2C+such+as+marketing.%3C%2Fp%3E%0D%0A%3Cp%3EI+believe+one+of+the+outcomes+of+this+crisis+will+be+a+broader+application+of+LMS+for+franchising.+It%26rsquo%3Bs+what+the+franchisee+already+has+a+preference+for%2C+and+on+a+delivery+basis+with+scale+it+is+more+efficient+and+cost-effective+for+franchisors.+That%26rsquo%3Bs+a+winning+combination.+The+IFA+recognizes+this+and+has+pushed+for+tax+credits+to+ease+the+cost+of+implementation+as+part+of+federal+fiscal+recovery+policy.%3C%2Fp%3E%0D%0A%3Cp%3EOf+course%2C+once+an+LMS+is+embraced%2C+it+is+relatively+easy+to+envision+applications+in+other+franchisor+functional+responsibilities%2C+such+as+compliance+%26ndash%3B+which+may+be+another+franchisor+functional+responsibility+permanently+altered+by+this+crisis.%26nbsp%3B%3C%2Fp%3E%0D%0A%3Cp%3E%3Cem%3E%3Cstrong%3EDarrell+Johnson%3C%2Fstrong%3E+is+CEO+of+FRANdata%2C+an+independent+research+company+supplying+information+and+analysis+for+the+franchising+sector+since+1989.+He+can+be+reached+at+703-740-4700+or+%3Ca+href%3D%22mailto%3Adjohnson%40frandata.com%22%3Edjohnson%40frandata.com%3C%2Fa%3E.%3C%2Fem%3E%3C%2Fp%3E

Published: August 3rd, 2020