Synapsys Blog - February 2007

Social Commitment Is Good Business

I am not normally a fan of McDonald's. But franchisee Greg LaPat is doing something right. During a four-month renovation of his McDonald's restaurant, he managed to retain every member of his 30-person staff.

How did he do it? Well, faced with an extended period of time in which he didn't have work for his people, he had a few options. He could have fired them and hired new people -- it's relatively easy to staff up a McDonald's -- but that would have been completely out of character. His staff have been with him an average of six years, some up to 18 years. He could have put them on furlough, not paid them and kept his fingers crossed that they would still be around four months later. He could have paid them to sit at home; no doubt some people would have appreciated the opportunity to watch 12 hours of uninterrupted CSI episodes every day.

Or he could do what he did: continue to pay them, and loan them out to social organisations like Hospice and the Red Cross.

The social organisations loved it. The people helped by the volunteers loved it. LaPat's accountant loved it -- the business got a tax break on the salaries paid towards volunteer time. Most importantly, though, is that the staff loved it.

Management guru Peter Drucker points out that, in today's knowledge society, we no longer have the physical community of old, driven by barriers to mobility. Japan spent several decades trying to develop a replacement community in the factory, one mostly driven by fear of losing your job. Drucker, though, says the true replacement community is where people feel needed, where they're able to use their talents for the good of others.

This is a feel-good story, and it may seem like fluff. The critical point, though, is that people lie at the heart of every initiative. Every learning strategy, every induction programme, every knowledge management system is driven by people with hearts, hopes, dreams and fears. Historically, businesses have shied away from discussing people in emotional terms; they're 'resources' and 'assets' and 'capacity'. Such coldhearted terminology, though, doesn't change the vibrant reality of the human beings in question -- it just masks it.

Visionary companies know this. In their book 'Built to Last', Jim Collins and Jerry Porras showed that those organisations that have stood the test of time and excelled for more than a century are united by one primary thing: they all have a clearly articulated purpose and values. What could be more 'human' than a purpose? What could be less 'resource-driven' than values?

As LaPat, Collins and Porras have proven, tapping into the genuine humanity of your 'resources' can make the difference between a workplace and a community, with outstanding, measurable results on the bottom line. This stuff isn't tree-hugger. It's integral to becoming extraordinary.

Training Consistency is Franchise Operation's Key to Success

Subway Restaurants has just managed to top Entrepreneur’s Franchise 500 list for the 15th time—an impressive feat, and one made more achievable by the organisation’s dedicated and consistent approach to eLearning and other training opportunities.

“Providing training opportunities is an integral part of our overall corporate strategy,” says Bonnie Zownir, Director of Worldwide Training.

“Compared to many other franchise systems, the Subway concept has… training and follow-up support from an extensive network of regional and headquarters personnel, who provide foodservice know-how and business guidance,” claims Rob Wilson, Subway’s Public Relations Coordinator.

Subway backs their spokespeople with action. They’re building a custom online university to relay restaurant policies and processes, food safety, and product recipes. The eLearning strategy can be linked with overall business objectives, which allows personnel to see how their efforts directly relate to the success of the operation.

It’s taken Subway 30 years to get this far. But newer ventures can capitalise on the ingredients of their success. Kiwi juice bar company Reload came to Synapsys for assistance with their operations manual and training infrastructure almost as soon as they knew they wanted to sell franchises. They recognise the importance of having good systems in place that can grow with the organisation.

Creating a system that can be replicated is what will allow Reload to make sure that the 100th franchise benefits from the same training as the first, and that a Reload in Mississippi will deliver the identical fruit smoothie as the one in Christchurch.

Michael Gerber, the founder of E-Myth, suggests that every business should treat its operations as if they intended to sell franchises. Even if that intention is not there, the discipline of creating procedures and living by them is what enables staff to deliver a consistent customer experience time after time.

And, whether you have one location or 27,000 (like Subway), your customers want a consistent experience. They want to know that every time they walk in, the food will taste just as good, the service will be just as friendly, and the environment will be just as clean. Confidence in a consistent experience is what allows people to recommend your operation. The worst thing people could say is, “You can try Joe’s Restaurant if you want—it’s kind of hit-or-miss, though.”

Being able to provide a high-quality experience every time requires a clear strategy, explicit policies and procedures, and an entrenched learning culture. When we talk to our clients about their training systems or business processes, we always ask how they fit into the organisation’s overall strategy and culture. Who is the recipient of this information? What is their motivation? What is their optimum learning style? What is the reward for following the system and what is the penalty for not? Is there a clear link between the training or processes and the achievement of the organisation’s big-picture goals?

The lesson from Reload, Michael Gerber and Subway is simple: those who understand the vital role of consistency stand a far greater chance of success than those who don’t.