GF Issue 54

What role does leadership play in managing hourlyworkers effectively, and how can franchise owners develop strong leadership skills in this context? Busyness is the enemy of leadership. Many franchisees get so caught up in the day-to-day grind that they neglect to take care of their teams. They don’t train properly. They don’t provide adequate feedback and coaching. They don’t build and maintain culture. They just buy their employees pizza and gift cards and then tell themselves they’re good bosses. If franchisees are serious about boosting team performance, they need to lead. Nothing is more important than building up your team. Can you share some examples fromyour book of franchisees who successfully transformed their hourlyworkforce? We typically associate hourly workers with quick-service restaurants (though retail is the largest sector relying on hourly help). Almost half of these employees don’t last 90 days on the job. That’s not the case for one KFC owner I interviewed who runs 128 restaurants. He loves his employees and invests a lot of time building and replicating culture. He enjoys higher morale, lower turnover, and a very smooth and profitable enterprise. The same goes for another franchisee I interviewed from Tropical Smoothie Café. Both these owners sounded like the independent dry cleaner, the grocery chain, and the industrial packaging plant I talked to. They manage their hourly teams at a higher level, and therefore enjoy higher performance. In doing your research, did you learn anything that surprised you? I’m all about the human elements that impact performance. But the data I found suggested that given the choice between a results- oriented manager and a people- oriented manager, the results- oriented ones are looked at more favorably by their teams. But neither manager type comes close to those who focus on both results and people. Most of the work you do is speaking at franchise conventions. Can you share insights fromyour speaking engagements within the franchise industry and how they have informed the content of your book? I’m paid to speak, but most of my work is listening. I interview executives and franchisees from the brands who bring me in. If my schedule allows, I attend other sessions at their events and eat with franchisees before my presentations. That’s all part of my due diligence. I hear their complaints and concerns. But I also meet their top performers (whom I call “wealthy franchisees”) and see what they have in common. I look for the characteristics and behaviors others can replicate. I spend a lot more time learning than teaching. My presentations and books are all about these great performers and what the rest of us can learn from them. What can franchisors do to help franchisees and their managers improve employee performance? This is tricky. Franchisors, especially here in the United States, have lived with the threat of joint employer status. Many steer clear of anything related to employee management at the store level to mitigate risk. That’s allowed many people with little or no formal leadership training to suddenly be in charge of large teams. To me, that’s as bad as giving someone keys to the car without driver’s training. In other TOP PERFORMANCE TAKEAWAYS Out-recruit other businesses by offering an extra dollar per hour Retain employees (so you don’t have to keep recruiting) by building a strong culture Create personalized awards and be generous with recognition Set aside a budget for tokens of appreciation Spend time with new employees at the beginning to ensure they feel cared about Find out early what employees like so you can use that to reward them Offer incentives based on performance and give employees specific benchmarks to target. INTERVI EW 32 GLOBAL FRANCHISE | ISSUE 8.2