A privately held large franchisee of a major brand was having consistently declining results in a majority of their locations. They held 270+ stores and approximately 200 were located in the same geographic region of the United States.
THE NOVO SOLUTION.
We first travelled the region as “secret shoppers” to visit approximately 40-50 locations to gain a customer experience of our client’s stores. After noting the differences in the few high performing versus the norm of declining revenue locations, we had all field management positions (manager, district manager, regional manager and vice president of operations) along with the executive team, complete objective assessments to identify the similarities and differences between their actions, competencies, previous work experience and education.
The next step of the process was to rank all operations managers into exceeds, meets or does not meet expectations categories. The assessment data was then analyzed to find the statistically significant differences of the higher performers.
This analysis was used to create a “success profile” range to be used for selection going forward. Additionally, 33% of the store managers and 25% of the district managers were interviewed to gain insights into the operations practices of the company. From this process, the field structure was significantly changed as District and Regional roles were replaced with the “consultant/advisor” positions for Financial, Operations and People support of the stores.
The store manager level requirements were increased to higher business acumen roles as identified by the success profile and many current store managers were recast to assistant store manager positions.
To ensure each market was launched for success with the new plan, there was a mandatory 13 weeks of training provided to all store managers. There were 7 weeks of operational/financial training conducted by the internal consultant roles and 5 weeks of managerial/leadership training conducted by our consultants.
Our client began seeing revenue increased within 45 days of each market being changed to the new model. The most dramatic change was in a market that had been in the bottom 10% of the franchisors performing markets in the U.S., who by 18 months in the new model was performing in the 50th percentile nationally.