Global Franchise 10.3

MARY KENNEDY THOMPSON CEO, Business Network International (BNI) “Strong systems begin with understanding, appreciating and spending time on the franchisee unit-level economics – how are they doing?” asserts Mary Kennedy Thompson – and she should know, having served as COO for the world’s largest home services company for more than a decade before becoming CEO of Business Network International, the world’s largest referral networking organisation, with more than 356,000members. “You need to understand how you can help make your franchisees as profitable as possible, because there are three things you do must with profit: pay yourself, so you get the ROI; pay down debt so no one can take your business away; and put it back in the business, so your business grows at the right pace, which is what everyone in the network wants.” “The top 10% of franchisors do three things exceptionally well,” Mary continues. “They understand the KPIs behind what the franchisee is doing, and what those KPIs mean for the franchisee’s life and decision-making. They look at how long it’s taking from sign-up to getting a franchise open and money in the franchisee’s hands – because they need that. And finally, they build strong relationships with their franchisees.” This last point is key to Mary’s mission at BNI. “Why does someone become a franchisee?” she asks. “Typically, it’s because they intuitively understand that they want to belong to something bigger than themselves; they want to be part of a system.When I signed up as a franchisee I was looking for processes that simplified the everyday as well as being exposed to great coaching – I was also a business owner. They own the opportunities and doing the right things.We should treat them as such. That’s why I recommend that franchisors have a Franchise Advisory Council (FAC), made up of elected franchise owners who can represent their peers and advise the franchisor, for example, on how to best implement new projects.” Mary acknowledges that relationships between FACs and franchisors may on occasion have a natural tension and disagreement – and when that happens, she says, it can be because the franchisor has lost touch, not because franchisees are being unrealistic or excessively demanding. “One of my favorite Whether you are talking about gyms, home care, fast food or B2B services, across high- performing franchise systems, operational excellence shows up in surprisingly consistent ways. 1. Outstanding franchisors understand that unit-level performance, rather than overall growth, is the key to assessing systemic health. Data is used as a diagnostic tool, rather than a way of enforcing rigid targets. And support is focused on helping the franchisee achieve their own goals, within their own business. 2. Without trust and accountability, there can be no excellence. Standards are there for a reason, and are non-negotiable; but they are a minimum, to which each franchisee will bring their own entrepreneurial spirit and energy. And listening – through advisory councils, surveys, field consultants and one- to-one conversations – is an operational priority. 3. Strong systems evolve – at a pace and in a manner that doesn’t risk damaging franchisor-franchisee relationships. The expertise and experience of those on the front line is never undervalued or forgotten. K E Y N O T E T A K E AWA Y S 44 GLOBAL FRANCHISE Issue 10.3