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