Managing Franchisees Through Crises

Having successfully navigated the COVID crisis, the franchising sector is now facing its toughest test since the great financial crisis of 2008. Our research indicates we have entered a dangerous period for small business viability, and franchisees are calling out now, more than ever before, for support to maintain their margins, motivation, and momentum.

Whistling in the Dark: 12 Lessons for Leading Through Crises

Greg Nathan took these 12 points from Mary Kennedy Thompson’s talk at the recent Franchise Association of New Zealand Conference. Mary’s insights come from her training as a Marine and her role as COO of the Neighborly Home Services franchise network, growing it to 30 brands with revenues of $4.3b. Three weeks ago she accepted the role of CEO for BNI Global, overseeing operations in 74 countries.

#1: Honour the past and disrupt the future. Franchise leaders need to respect the mission and values on which their companies were founded while boldly innovating and adapting to current conditions.

#2: Value franchisees as your most important stakeholder. Franchisor leaders must show deep empathy for their franchisees and their aspirations, and appreciate that without them, there is no business. 

#3: Whistle in the dark. Leaders will often be in situations where they and their people face extreme uncertainty about what to do. The leader’s role is to stand firm, build confidence, and provide direction for others to follow.

#4: Cut fat not muscle. When facing tough financial conditions, leaders need to help their team identify non-essentials and cut them out. Invest in building capability and confidence, and focus on services that add value to customers.

#5: Danger and opportunity co-exist. During a crisis, opportunities often look like threats and people can freeze with fear. A leader's job is to mobilise people into action as this helps to overcome fear and builds confidence. 

#6: Be ready to serve. We need to suspend our ego and build trust. This means being real, consistent and genuinely caring about your people. Never be too busy to talk with others and understand their fears and goals.

#7: Lead with love. This often means standing firm, and not giving in to what people want. A good leader gives others what they need, not what they want, and explains why they need to honour important principles or commitments.

#8: Forget communication and focus on connection. Franchisees will not follow you until you understand their hopes, wishes, dreams, and goals. An important component of this is understanding their families and their personal lives.

#9: To inspire means to breathe life. A leader needs to be a beacon of positivity and optimism, inspiring others through their own energy and commitment, and helping them to be their best.

#10: Insist on excellence. Encourage others to practice again and again until they can’t get the important things wrong. Enrol them in helping you to achieve great things by asking for their help.

#11: Comfort is the enemy of growth. Continue to push yourself and share your talents and gifts with others. The best state to function is between conscious competence and unconscious competence. If necessary, ask for permission to make others uncomfortable.

#12: Don’t find consensus, build it. It’s no good just trying to find what others want. A good leader works hard to understand the current situation, then builds a vision and inspires others to take action to close the gap.

It was interesting to observe how Mary engaged with everyone at the conference, showing humility and enthusiasm, attending sessions and taking notes. What a great example of a leader with a growth mindset!