Remaining Relevant in an Ever-Changing Business World

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Where change is recognized, opportunities are unlocked.

By R. Scott Sutton, CFE

 
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It’s been said that a little axe can chop down a big tree. And while this metaphor has a number of applications, rarely is it more appropriate than in describing the concept of change. In the business world, some moments of change happen swiftly. But in many cases, change, like the swing of that little axe, can be slower. Less noticeable. Sneaky.
 
For franchisors and franchisees not in tune with the changes in the marketplace, customer and market relevancy can slip away. By contrast, for those disciplined business owners and leaders, change can be recognizable. And where change is recognized, opportunities are unlocked. So how can franchisors and franchisees alike develop the disciplines needed to recognize change? Implementing some of the following approaches can help. 
Talk About Change Often
Many franchisors create and execute a discipline of holding regular meetings with members of the executive leadership team. This seems to be a common practice among most efficiently-operating organizations. 
 
Best-in-class companies take their meetings to another level by actually adding an item to the recurring agenda solely focused on business, marketplace and customer trending. This practice forces a discussion about how internal impacts (customers, vendors, employees, franchisees) and external (economy, regulatory environment) are affecting the future performance of the business. Add this simple item to your ELT agenda and start talking proactively about the trends in your business that point to needed changes.

Assign a “CCO”

Most companies hire professionals to govern areas like sales, operations, IT, HR and the like. But where do the areas of competitive intelligence, ideation, business trends and change management fit? The short answer is in many organizations, they don’t fit, aren’t discussed and, thus, create a void when strategies and tactics are developed to help a brand remain relevant and thrive. A simple approach in any organization is to assign an existing executive or other key leader with the responsibility of also being the organization’s “Chief Change Officer.” The duties here are focused on working with internal and external resources to identify trends and metrics in the marketplace that require a thoughtful and planned approach to change.
Mine the Data from the Customer 
Let’s face it, within franchise organizations, the people most often interacting with the brand’s customers are the brand’s franchisees. And in many cases, franchisees are tactically focused on hitting metrics, implementing marketing campaigns, managing staff and serving customers, among other things. The momentum and just plain inertia of the day-to-day tactical approaches of franchisees can mean that tremendous customer intelligence is lost. 
 
What’s a better way to retain this intelligence? Create a committee made-up principally of franchisees to report-out on the trends each is seeing and hearing within their businesses. Seated within the committee is the CCO, who can then capture the relevant committee data and report to the rest of the executive team along with recommended actions gained from franchisees working within the field. The committee should also include at least some franchisor operational/field professionals to add to the outputs. 
Get Involved in Trade Associations
In nearly every business sector, a trade association has been formed to provide the opportunity to network and share valuable information about the sector, its health, risks and opportunities. And while not all trade associations are alike, each has at least one thing in common: membership comprised of other business leaders operating businesses within the same sector. For this reason alone, get involved in your trade association. If your business sector has multiple associations, try and find the one that best fits the market niche your business serves. Doing so will provide access to other leaders in your sector. And from that access, relationships are built through networking. These networks provide additional intelligence related to trends and changes taking place within your marketplace. Of course, if the trade association is governed in a strong way, the association itself may provide additional resources such as benchmarking and other metric assessments to help business leaders gain a stronger awareness of the trends that affect each. 
Count on IFA and its Resources
Perhaps the strongest association in which any franchisor or franchisee can get involved is the International Franchise Association. The entire team at the IFA is member-focused. In addition, the resources the IFA has created and deployed provide a wealth of opportunity to collaborate and share information with other franchisors and franchisees alike. Perhaps more, the IFA has created a robust supplier network that includes consultants and other firms dedicated to compiling and providing data and other valuable information companies can use to track trends and get a better read of the changes occurring in the marketplace. Be sure and also read through the supplier guides to identify organizations that can add value in assessing the trends in the marketplace. Finally, join FranSocial and be vocal. Share with others the challenges, opportunities and trends you’re seeing.
 
These disciplines are important and can be extremely impactful in helping your organization remain ahead of the trends and on the cutting-edge of change. Make no mistake however, that being smarter about your business’ trends and understanding the progression of change is only half of the story. The other half lies with thoughtfully working through your strategic planning process to incorporate the findings and intelligence gained from addressing current market trends. During your strategic planning process, set aside time on your agenda to focus on actual actions that need to be implemented to ensure the brand remains relevant, based upon the guidance and intelligence gained from the field, the trade association, the IFA and other resources.
 
We’ve heard it before, but it bears repeating: the only constant is change. Staying relevant as a franchisor or a franchisee requires placing a priority on tracking the trends and changes that affect your business, and then incorporating the learnings into the strategic and tactical focus for the periods ahead. While it may sound daunting to implement, the best approach is to start today and take it one day at a time — similar to how that little axe chops down that big tree. 
 
R. Scott Sutton, CFE, is Vice President of Franchise Development for Safeguard.

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