FD57 Looking At Leadership

FRANCHISE DEVELOPMENT

LOOKING AT LEADERSHIP

By Staff Writer • September/October 2017 • Issue 57

A healthy franchise system is largely dependent on the leadership at the helm!


Contributed by Franchize Directions in association with the Franchise Relationships Institute (FRI) www.franchize.co.za

In the current unstable economic and generally turbulent business environment, strong, committed and transparent leadership is the key to franchising success. Franchisees need to feel that they can trust their franchisor and that their brand leaders have their best interests at heart. 

Franchisees who have confidence in their leadership are more likely to recommend the franchise to others, which is essential for the growth and development of a network. They will be committed to continually improving and investing in their business, which keeps the brand strong, and support the strategies of the network, committing to a win-win scenario that goes along with a healthy relationship. 

Once you have committed to being a franchisor, you are no longer in the business of flipping burgers or selling cell phones — you are in the business of assisting third parties realise a healthy return on their investment. It is a mind shift from the original, predominantly operational business functions to a strategic role — leading a portfolio of entrepreneurs and providing business management services to help their businesses grow. 

In a corporate environment, leadership is often perceived as dictating the path rather than directing others along it with you. Franchising on the other hand requires a more inclusive leadership strategy; franchisees are not employees, but partners to a degree. Although there must always be a captain — usually the franchisor — it is not to the detriment of the franchisees and they are not excluded from the process. It is challenging to run a healthy franchise system without the buy-in and support of the franchisees. A franchisor who is willing to listen and who promotes a culture of inclusiveness will find it much easier to hold together a strong network and steer the company through challenging and uncertain times. Certain franchise systems are centralised and require strict adherence to rules and regulations, while others, small to medium systems in particular, tend to allow a little more flexibility within the boundaries of the business format.

3 ESSENTIAL LEADERSHIP QUALITIES OF AN EFFECTIVE FRANCHISOR 

When you are in the business of helping people manage their business, Greg Nathan, founder of the FRI, suggests that these three qualities — intelligent thinking, empathy and courage — are well worth cultivating. 

1. Intelligent thinking: 
Maintain a clear, rational mind and be sure to consider all the relevant factors when making decisions or giving feedback. This quality can be cultivated through reading, reflecting, being open and curious, and controlling your emotions.

2. Empathy: 
Show concern for others and consider how your behaviour impacts the people you are leading and mentoring. While we might not like it, this quality is largely cultivated through the personal life experiences that keep us grounded and in touch with our humanity.

3. Courage: 
Be willing to speak up, have difficult conversations and take action on important issues, even if it is uncomfortable. This is not inconsistent with showing empathy. When leading or mentoring others, a ‘tough love’ approach may be needed to keep them focused on the right issues and when addressing subjects that could cause them harm later. When you speak up because you want to help someone achieve their goals, bring out the best in them, right a wrong, or repair a broken relationship. It is easy to garner courage when you speak from the right place. 

The most important aspect in a franchise system is the franchise relationship and as John C. Maxwell said, “Leadership is not about titles, positions or flowcharts. It is about one life influencing another.” 

Reference: Tip #154 – The 3 most important qualities of a leader by Greg Nathan of FRI. http://www.franchiserelationships.com.au/gregs-blog
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