What determines the development of a franchise network
18.09.2019 12211

What determines the development of a franchise network

It is difficult to overestimate the influence of personality on business development. Of particular importance is this aspect for franchise networks, where the ability to find the right partner has a decisive influence on the success of the entire enterprise model. The human factor in business in general, and franchising in particular, is described by expert SR, business coach Anya Pabst.

Anya Pabst Anya Pabst - Head of the Russian branch of BEITRAINING. Master of Sociology and Slavic Studies. Education "HR Manager", is a specialist in the field of crisis communication. He has experience working with people in study groups of various profiles both in Germany and abroad. Over the years, Anya Pabst has trained over 150 trainers. For more than 7 years her professional activity has been associated with work in the CIS countries - Russia, Kazakhstan and Ukraine. BEITRAINING is an international franchise company and a certified strategic partner of the German and Austrian Franchising Union on the topic of “Professional Development”. He specializes in training and professional development in the field of management, trade, customer service and personal growth.

It is no secret that the qualifications, motivation and performance of employees lie at the heart of the success of the enterprise. Not least because in the modern world of the digital economy and the rapidly changing business environment, it is a person and his ability to respond to changes, and even direct them, that is at the forefront. The franchised business model, due to its features, is even more dependent on the human factor than traditional business models.

The processes are becoming more automated, and the end result is more dependent on personal relationships, motives and preferences. And the decision to purchase is always an individual decision of a person, including when it comes to buying a franchise. Based on this, the path to long-term success is determined by a well-thought-out strategy of attracting, motivating and retaining talented personnel at all levels - from employees of the central office and relations between the franchisor and the franchisee to ordinary employees of the franchise network in branches.

Employee marketing

The concept of “employee marketing” implies an internal corporate strategy that takes into account the goals and needs of “internal customers”. It is part of the leadership model, in which the principles of doing business with external customers - customers, partners, government organizations - are also transferred to the personnel of the enterprise. These principles may differ based on the specifics of the company, but the basic principles remain unchanged.

The development of internal marketing strategy begins with the definition of the goals of the enterprise in the medium and long term. They relate to such areas as the expansive development of the enterprise, the expansion of the product line, the attraction of new target groups and brands, as well as the change and improvement of internal work processes.

The main components of the internal marketing concept include a description of the profile and functions of the enterprise, attracting new franchisees and employees, their adaptation and training. Every franchise needs people who fit its concept and product. Therefore, success in finding suitable franchisees and employees depends on how accurately the selection criteria are formulated based on the concept and the product being sold.

A clearly defined description of job functions in the profile of the desired employee or franchisee makes the recruiting process much more effective than the classic job description, which lists only the requirements for the candidate. In addition, in addition to education and work experience, it is useful to indicate what social competencies, from communicating by telephone and giving presentations in front of large groups to the skills of a leader, are necessary for the applicant.

Search for new partners

As for the search for new partners, most franchise networks have criteria and a developed system for attracting suitable candidates. But one point in the recruiting process is often not worked out with due care, namely how the applicants are treated. If a potential partner or employee submitted an application, in 90% of cases he conducted his own research about the company and made a positive opinion about it. It’s just that it can quickly disappear if, after submitting an application, the applicant is not treated carefully enough.

So, many enterprises respond to the application only after a few weeks. Bounce statements are too general and more like unsubscribing. And even the interview itself with the candidate is often replete with mistakes - starting with the need to wait a long time in the reception room and ending with ill-conceived questions, which in general speaks of an underdeveloped "culture of hospitality" in the enterprise. For a franchised network, this may mean that a negative impression along the chain will go further to the regions. Optimization of recruiting involves not only improving processes, but also improving aspects that are determined by the human factor.

The first steps for a beginner: adaptation and integration

The thoughtful process of adaptation and orientation of the new franchisee ensures its quick integration into the system, and also helps the newcomer to identify himself with the enterprise. Usually, integration events for beginners are held several times a year, and their frequency depends on the expansion plans of the network.

Key topics at these events include:

  • quality standards, tasks, rights and obligations;
  • marketing, social networks and internal communication;
  • advanced training and career prospects;
  • organizational structures, areas of activity;
  • responsible and contact persons;
  • Relevant IT systems.

The first three points are mandatory for all new partners and employees and should be explained by the enterprise management. For other topics, depending on the field of activity, individual employees may be responsible. In addition, it is convenient to indicate the basic facts and norms in a special guide to help new franchisees and employees.

At the next level, for employees of branches opened by new franchisee partners, such directories are usually not provided. At the same time, they could become a useful adaptation tool and contribute to the observance of enterprise standards on the periphery. Statistics confirm that new partners and employees who took part in all events for beginners quickly became independent, regardless of their position or place of work. The number of errors and new employees who left the company during the trial period was also significantly reduced.

Advanced training and adaptation of beginners is one of the main tasks of the central office of the franchise network. In addition, activities based on the principle of “on-the-job training” are very useful when a new partner or employee receives a curator who helps him already in the process of work. In addition to professional knowledge, a beginner adaptation package may include social competencies, which, at times, are crucial in the success of an enterprise.

On the power of social competencies

While professional skills, knowledge about the enterprise and the product belong to the mandatory part of training for beginners, the blocks related to social competencies - from teamwork and self-organization to sales - are optional. But only professional knowledge alone does not guarantee success in the profession.

Inclusion in the workflow in the regional office is the next stage of the beginner’s adaptation after the initial training conducted by the franchisor. Depending on professional experience and competencies, the adaptation plan should ideally be worked out individually for each employee and calculated for a period of three to six months.

A sample plan should include the following aspects:

  • main goals during the adaptation period;
  • memo for managers;
  • general picture with an emphasis on: assignments for study, necessary trainings and recommendations, area of ​​responsibility, time frame for completing assignments.

The main goal during this period is for the beginner to learn how to independently and successfully cope with the tasks. At the same time, it is possible to identify and eliminate inaccuracies made during recruiting in time, and regular personal conversations with a new partner or employee are of particular importance.

Entry into the position and adaptation are of particular importance for franchisees, who are the first contact person and representative of the entire network for their employees. Therefore, in addition to professional knowledge in the areas of sales, organization, planning, personnel management, finance, IT and business management, franchisee's necessary skills include methods of leadership, delegation, communication, team building, project management and conflict resolution.

Improving the competence of the franchisee affects their effectiveness, and therefore, is in the interests of the franchisor. According to BEITRAINING, in most cases, among the trainings offered by the “center” for franchisees, it is not enough those who develop social skills soft-skills. Such seminars can be organized on the basis of regular meetings of the franchisee, especially the presence of newcomers from regional branches. Ideally, such training should also be offered to field staff.

Thus, a well-thought-out and well-planned adaptation period for beginners, including filling in the gaps in the necessary skills, is ultimately beneficial to the parent company itself. This is manifested in the productivity of the new employee, fewer errors, customer orientation, reduced staff turnover and loyalty. If relations at the enterprise are built on a trusting and transparent basis from the first day, this lays a solid foundation in the event of disagreement or crises, as any business is faced with challenges and new challenges every day. So the human factor largely determines the success and stability of the enterprise.

This article was published in the 154 issue of the print version of the magazine.

It is difficult to overestimate the influence of personality on business development. Of particular importance is this aspect for franchise networks, where the ability to find the right partner has a decisive influence on ...
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