By Earsa Jackson, Clark Hill PLC, IFA Diversity Institute Chair, IFA & IFA Foundation Board Member

 

It is a wonderful time to be in franchising.

Franchising weathered the pandemic and has come out of it even stronger. There is a rebirth of sorts in franchising. Brands figured out more ways to support franchisees and deliver better products and services to customers. It has been said that “Necessity is the mother of invention.” Many brands realized during this time that we are all connected, and our very own survival is dependent upon how we connect with our neighbors and adapt to change. During this period of rebirth, I saw a more concerted effort than ever before to focus on diversity, equity and inclusion (DEI) in franchising. Below are practical tips for brands to consider as they take their DEI efforts to the next level.

Starting Within — An Inside Out Approach

Companies are now looking at its internal leadership and asking what it can do internally to be more inclusive. Companies have learned that it is not enough to have a great plan for recruiting diverse franchisees because prospects also want to know how diverse the team is who will be supporting franchisees. They want to know how diverse the supplier base is who is supporting the franchise. As a result, companies are undergoing internal assessments. Creating an inclusive internal environment which fosters belonging internally is a key differentiator for companies who desire to advance DEI in franchising.

I had the opportunity to collaborate with a company which realized that while its efforts to recruit diverse talent was genuine, it needed to first take a hard look in the mirror. Leadership decided it wanted to lead on DEI just like it has traditionally led every other metric critical to the company’s success. The DEI message came from leadership. When it was time for company-wide DEI training, leadership spent more time in training than the employees because it was critical that the employees saw leadership make DEI a priority. Leadership wanted to walk the walk to improve its chances of success on its DEI efforts. This top-down approach can be very impactful. Without it, many good efforts become merely a check-the-box exercise.

Creating an inclusive internal environment which fosters belonging internally is a key differentiator for companies who desire to advance DEI in franchising.

 As company leadership has focused on DEI, so have investors, stakeholders, employees, franchisees and customers. Investors, prospective franchisees and customers are looking for companies which reflect their own values. To that end, environmental, social and governance (ESG) efforts have spiked. While corporate governance is not new, the emphasis on ESG is new. Many of the ESG efforts focus on DEI and social justice. Just like companies are judged by their financial reports, they are also judged by ESG efforts. Sustainability leads the discussion, and DEI must be a part of the calculus. To continue to grow, the entire community must be included and have a seat at the table. Some of the ESG efforts around DEI have resulted in companies undergoing extensive racial equity audits which are conducted by independent, third-party consultants. Some have stopped short of audits but have engaged in detailed internal assessments to get an idea of how the company looks internally. Either way, this is a good exercise for the company to get a baseline on DEI. The company can then better set realistic goals and metrics for success.

Reach Your Audience

I’ve spoken with a number of companies who have spent an enormous amount of time developing elaborate plans to reach diverse audiences to recruit diverse franchisees and employees. The problem is that many of these programs have not reached the desired audience. The plan does no good if it never reaches its target audience. Companies should aggressively promote any DEI initiatives and consider other groups for collaboration who already have a membership you are trying to reach. This allows you to amplify your message and increase your chances of achieving success. The IFA Diversity Institute would love to hear about effective efforts so that it may become a repository for this information.

Move from Effort to Impact

I’m most excited to report that many conversations I’ve had recently with franchise companies around DEI have shifted from the structure of DEI committees to how these committees and initiatives can make an impact to move the needle. Companies are now focusing on impact because they realize that efforts alone are not sufficient. How will success be measured? What are the interim goals? Who is responsible for the success? How do you incentivize to increase success? Who can you collaborate with to improve your chances of success? These are just some of the questions which are top of mind for companies trying to move the needle on DEI. Companies are figuring out how to measure, validate and report on their progress. As these efforts evolve and companies become more transparent on their efforts, opportunities and challenges, more companies are likely to adopt successful initiatives.

Just like companies are judged by their financial reports, they are also judged by ESG efforts.

 IFA Diversity Institute

The Diversity Institute is a resource for companies dedicated to advancing DEI in franchising. It currently has three active affinity groups established to further advance the Diversity Institute’s mission: Hispanic Latino Franchise Leadership Council (HLFLC), Pride Franchise Leadership Council (PFLC) and Black Franchise Leadership Council (BFLC). These affinity groups provide extensive programming throughout the year. The Diversity Institute and its affinity groups would love to partner with you to advance DEI in franchising.

 

Earsa R. Jackson, Esq. is a member of Clark Hill PLC, chair of the IFA Diversity Institute, and a board member of IFA and the IFA Foundation. For more information about IFA supplier member Clark Hill PLC, please visit franchise.org/suppliers/ clark-hill-strasburger.

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