building a culture of accountability - franchise · pdf filesteve lefever, cfe . profit...
TRANSCRIPT
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Steve LeFever, CFE Profit Mastery Chairman Mark Liston, CFE Glass Doctor President Greg Esgar Massage Envy CFO Tim Purcey Comfort Keepers COO
BUILDING A CULTURE OF ACCOUNTABILITY
FOUR DISTINCT WAYS TO
IMPROVE ORGANIZATIONAL
PERFORMANCE
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YOUR MODERATOR
Steve LeFever, CFE Founder and Chairman Profit Mastery Seattle, WA
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PANELISTS Mark Liston, President, CFE – Glass Doctor
Greg Esgar, CFO – Massage Envy
Tim Purcey, COO – Comfort Keepers
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Management is doing things right...
Leadership is doing the right things.
Considerations in Business Performance and Profitability…
BUSINESS PERFORMANCE…
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• The “success road” is littered with failures
• Profile of the business owner
• 80% of businesses fail
BUSINESS PERFORMANCE…
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WHY?
Measure…
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What Gets Measured, Gets Managed
Monitor Financial Position
and
What Gets Managed, Gets Done!
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Three Primary Considerations…
Monitor Financial Position
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• Education
Accountability and Performance is a three-legged stool
– establishing the foundation • Benchmarking – creating the yardstick • Performance Groups – providing the
accountability and discipline
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The three gentlemen you’ll meet today have all “done it”...
Not perfectly...
but they’re here — And they’re still standing
And their networks are significantly better because of their efforts
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AND... Although their stories are very different...
Their experiences, each in their own
way, are remarkably similar
Let’s meet Mr. Mark Liston...
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MARK LISTON, PRESIDENT, CFE – GLASS DOCTOR
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MARK LISTON, PRESIDENT, CFE – GLASS DOCTOR
Overview of company
• Established in 1962 • Began franchising in 1977 • Became part of Dwyer Group, Inc. in 1998 • Sold to private equity in 2004 • Dwyer Group has more than 1,700 units • Glass Doctor has 190 franchisees in the US
and Canada with 300 locations
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MARK LISTON, PRESIDENT, CFE – GLASS DOCTOR
• How to transfer accountability to the franchisees
• Identifying your key people and teaching them how to work together
• Performance groups make benchmarking actionable
• Franchisees can build stronger, more motivated teams!
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Systems Analysis
114 Areas!
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YOUR DREAM TEAM • Mark Borchin • Jon LaLanne • Gene Porter • Neil Hall • Garry Jones • Tom Ashley • Brad Roberson • Colt Easley • Bryce Stahlke • Jim Bernstein • Dave Kozlowski • George Strauch
• Matt Kelly • Larry Patterson • Ed Sieber • Jeff Bogdanski • Bob Boehm & Kelly
Larson • Cary Hooper • Justin Eimers • Mike Scorzo • Mike & Mary Ellen
Jones • Dave Hawthorne • Bryan Yarborough
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RANK ITEM 1 Phone Handling 2 Know Your Numbers 3 Local Advertising/Marketing 4 Tone, Attitude, Lead by example 5 Business Plan/Goal Setting/Budget 6 Full Service Offering 7 Image/Brand Support 8 SWAT/MPG 9 Proactive Dispatching
10 Outside Sales Rep 11 Cross Trained Staff 12 Office Flow 13 Consistent/ Ongoing Training 14 Timely Closeout/Invoicing
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THE DOCTORS OF THE CLINIC • 8 Franchisees who make up 19.8% of the
volume – Goal of 50% growth per year
• 2 more groups followed after hearing results
• All three groups have a Glass Doctor
Franchise Consultant working with them
• Calls each week – Voted chairperson for group
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•Tim Jokl – Chair, Indianapolis •Colt Easley – Denver •Brad Roberson – Brookhaven / Jackson, MS •Vern Steiner – Millersburg, OH •Neil Hall – Amarillo •Jerry Doyal – NW Louisiana •Mike Shanahan – Austin •Gene Porter – Clovis (NM) & Lubbock (TX) •David Herrli – Elkhart (IN)
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THE “A TEAM”
•Wayne Gaudette, Chair – Raleigh •Holly Nieman – Hot Springs (AR) •Ron & Jane Maxey – Northwest IN •Matt Nicklaus – Inland Empire (CA) •Ed Cape – Virginia Beach •Jeff Bogdanski – Greenville (SC)
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GREG ESGAR, CFO – MASSAGE ENVY
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THE MASSAGE ENVY BRAND • Founded in 2002 (Scottsdale, AZ) • First franchise awarded in 2003 (Phoenix, AZ)
• Massage Envy Spa opens in 2007 providing therapeutic facials along with massage
• Established an exclusive partnership with global skincare leader Murad®
in 2008 • Today:
• 848 Open Clinics
• 594 Massage Envy Spas
• 1,111 Total awarded franchises
• Acquired by Roark Capital Group in late 2012
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THE MASSAGE ENVY MODEL
• Professional, convenient, affordable
• Membership model
• Recurring revenue
• Offerings deliver greater value to the consumer
• Competitive national pricing structure
• 43 regional developer groups nationwide
• 73% of franchisees are multi-unit owners
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BRAND GROWTH
• Over 1.3M members nationwide
• 103 new clinics opened in 2012
• 16.15 million services were performed in 2012 • 50 millionth massage performed • 1 millionth facial performed • Opened in Hawaii in 2012 • Opening in Alaska next month – 47 states!
• In 2012, on average, the network was performing 300,000 services per week
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BRAND GROWTH
• World’s largest employer of licensed/registered massage therapists
• Only nine units have closed in the brand’s ten year history
• National Finance Program: Massage Envy is one of only 30 franchises selected for this national program that provides development capital to new and existing franchises
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UNIT LEVEL PROFITABILITY
• Average unit volume is $1.2 million
• Unit level profitability is an inherited culture cultivated by PROFIT COACHING from Massage Envy Corporate
• Culture of sharing relevant data
• Profit coaching occurs at three levels: – Regional developer – Franchisee – Clinic
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UNIT LEVEL PROFITABILITY • Data Sources
Data Warehouse/ Report Portal
Region Franchisee Clinic
Corporate
Unit POS
Customer Service
Financial
CRM Database
OSR Feed
Marketing
Legal Membership Data
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ADDRESSING UNIT PROFITABILITY
• Profit centric leadership is a core pillar to organization
• Profit coaches Forward thinking
• Provide limited data enabling franchisees to FOCUS on relevant data
• Provide multi-level comparisons; region to region, clinic to clinic
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ADDRESSING UNIT PROFITABILITY
• Metrics are available 24/7 via a proprietary intranet accessible by RDs and Franchisees
• Profit forecasting and planning occurs prior to a clinic opening as well as recurring review once open
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UNIT LEVEL PROFITABILITY
• Methods of Profit Coaching
– Collect clinic P & Ls via a network portal and layer results through a consistent template
– Create reports and rank through Key Performance Summary
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ADDRESSING UNIT PROFITABILITY
• Methods of Profit Coaching
– Share network metrics (price points, region stats, results by vintage, etc.) through the report portal and at the Massage Envy Annual Franchise Conference
– Health Meters were created for Regional Developers to monitor clinic performance (triage system: green, yellow, red)
– Created a Profitability Committee through the National Franchise Advisory Board
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RESULTS OF PROFIT COACHING
• EBITDA increases year-over-year
• Double digit same store growth
• Goal setting is aimed at increased revenue and business growth
• Provides insight into the business - catalysts and deterrents for profit growth
• Encourages franchisee to focus on what’s important
• Creates a competitive environment
• Provides a clear vision for the future
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TIM PURCEY, COO – CK FRANCHISING, INC.
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BUILDING A CULTURE OF ACCOUNTABILITY
• Comfort Keepers – Profile
• 2nd largest franchise in the Home Care Industry • As of Fiscal Year Ended Aug 31, 2012 644 Units • High degree of MUO’s • 1 of 60 (Last Count) competitors • High franchisee satisfaction
– History • Founded 1998 • Began Franchising in 1999 • Private Equity owned from 2003- 2009 • Strategically owned since 2009
– Structure and ownership • We are a wholly owned subsidiary of Sodexo
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• Process – Peer groups – Coaching
• Personalize – Vision – Success
• Power – Measurement – Influence
BUILDING A CULTURE OF ACCOUNTABILITY
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• Franchisor responsibility – Create the opportunity – Create the tools – Sell the franchisees on the value – Participate from the top
• Franchisee responsibility – Commit the time – Follow the process – Dedicate the resources – Do the work
BUILDING A CULTURE OF ACCOUNTABILITY
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• Engagement • Systems • KPI’s • Accountability • Strategic Disengagement • Wealth Building
BUILDING A CULTURE OF ACCOUNTABILITY
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COACHING • Characteristics
– Franchisor Managed – Coach – Individual – Tactical – Operational
• Tactics – Assessment – Training – Follow-up
• Areas Covered (Tactical) – Finance – Operations – Sales – Marketing
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PEER GROUPS • Characteristics
– Franchisor Facilitated – Peer – Groups – Strategic – Fiscal
• Tactics – Education – Benchmarking – Accountability
• Areas Covered (Strategic) – Growth – Profitability – Wealth building
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CONTACTS • Steve LeFever: [email protected]
• Greg Esgar: [email protected] • Mark Liston: [email protected]
• Tim Purcey: [email protected]
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From Profit Mystery…
To Profit Mastery
It’s a Journey
Just do it!
DRIVING UNIT PROFITABILITY