Wednesday, February 25, 2009

Connecting with the customer


Forbes.com recently ran an article on Jim Skinner, CEO of McDonald's. The message was that Skinner was in tune with his customers because he actually visited the stores. Sound obvious? Yes, but with all he had to do, why would he make it a priority? Shortly after I joined Great Clips, our president, Rhoda Olson, told the entire executive team that we were each expected to visit 20 Great Clips salons in that quarter. I was waiting for someone to raise their hand and clarify the request; certainly we weren’t expected to take time away from our responsibilities to visit 20 salons…were we? Heck, I only get my hair cut every month, and almost always at the same salon – so I still had to visit 19 salons! What amazed me was that Rhoda made it her priority to get out into the field. She's rarely in the office. Instead, she's on the road visiting our franchisees or one of our 2,700+ salons. Needless to say, I got out of my comfort zone and hit the road, too. There were several Aha! moments for me because what I learned was that by understanding what the customer is experiencing and how they feel about our brand we can design and deliver the necessary training, marketing and support that our franchisees need in order to succeed. Somehow Jim Skinner and Rhoda Olson already knew that. I have a lot more to learn, but what I know is that successful franchise leaders have a sense for what the “end user” customer needs, and make it a priority to deliver it.

Thursday, February 19, 2009

IFA Convention

Along with about 2,500 other franchise professionals, I attended the annual International Franchise Association (IFA; www.franchise.org) convention in San Diego from 2/13 through 2/17. It’s very energizing to spend time with so many smart, dedicated franchise folks. At the convention we heard speeches from Bill Clinton, Steve Greenbaum (CEO of PostNet), Dina Dwyer-Owens (CEO of The Dwyer Group), Ken Walker (CEO of Driven Brands) and many others.

The primary message was that franchisees and franchise organizations will help lead us out of this recession. These two groups have the drive, the ideas and the commitment to create real opportunity for themselves and the rest of the world. They are so enthusiastic to capitalize on the unique “recession-created” opportunities before them.

I talked with retail franchisors that were taking advantage of prime sites available for their system; service franchisors that were growing sales in what many would consider to be “recession-prone” industries, and lenders that were providing the capital to fuel this growth. While many would rightfully say the economic outlook is still overcast for some period of time to come, there are many out there that see the sun peeking through clouds. I’m proud to be part of an industry that, as a group, sees the silver lining and is smart enough to seize the day.

Monday, February 9, 2009

I get a kick out of all the franchise systems that claim to be recession resistant


In my travels I’m finding virtually every franchise organization is claiming to be "recession-resistant." Yep, we say it, too, but only because our franchise owners can back it up.

I talk with Great Clips franchisees every day. And of course I speak with prospective franchisees every week. Lately the latter group has been addressing the former group with one particular question, "How is the economy impacting your salons"? One would expect to hear an answer filled with equal amounts of shock, horror and carnage. But instead, franchise prospects are hearing, “Today is an ideal time to start a Great Clips business: commercial landlords are eager to retain tenants and to find new ones, and their eagerness may result in more favorable leasing terms than we’ve seen over the last five years, and staff is plentiful."

Unlike many retailers, Great Clips is growing at a healthy pace – partly because (and let me brag here) we have intelligent, aggressive franchisees who are jumping all over a strategy Warren Buffett champions: “We simply attempt to be fearful when others are greedy, and to be greedy only when others are fearful." If you’re considering a franchise, do your homework, and dig deep particularly when you hear that recession-resistant claim. Then the real question becomes, do their franchisees back it up?