Running a Franchise organisation has a lot more challenges than most businesses. You still need the same skills as any other CEO running a business in your Industry but you also have the challenges of managing the relationships with a diversified group of people that have all come from different backgrounds – your Franchisees.
Each of your Franchisees has a different skill set and recognising their strengths and weaknesses early on helps you enormously in the training and support that you provide them as well as ensuring their long term success with your brand.
As the Franchisee becomes competent at running their business, they then start contributing their ideas for improving the system. In a franchise organisation, the CEO has to manage the synergy that franchising brings to the business ensuring it is managed in a positive manner so that it can create long lasting value to the organisation.
It is one of the reasons why franchise organisations can react so quickly to changes in the market place and the economy. Franchisees are close to their Customers and this is feed up the line to the CEO very quickly.
It is an incredibly unique relationship that a CEO develops with his Franchisees in they are both entrepreneurs working in the same business – one at the macro level and one at the micro level.
Your Franchisees are CEO’s in their own right running their own businesses which you have to interact with everyday as you are also dependant on their success for yours.
It is this synergy which can create a very powerful organisation that can grow at an exponential rate to be able to compete on the world stage very effectively. If not managed correctly, it can also bring it to its knees.
It is this synergy that can provide an organisation with innovation that keeps it ahead in the market place. In the tough competitive market place we do business in, innovation is the food our companies need to continue to grow; that differentiates us from our competitors and provides the excitement for people to want to be part of our brand.
So what does it take to be a good CEO?
Let’s look at the skills a CEO needs to have to be efficient at this role – and these are in no particular order :
– a mentor
– a teacher
– a leader
– relationship manager
– negotiating skills
– a visionary
– a marketer
– a financial analyst
– a human resource expert
– an administration expert
– good knowledge of IT
– ability to deal with ambiguity and complexity
– resilience
– creative problem solving
– focused on the customers of the business
– empathetic
– time management
– think clearly
– not being reactive
As well as being an expert in the industry the business operates in! There’s probably a few I have left out however the point is the varied skill set that the position requires.
And then there are the challenges that a CEO faces everyday.
So how does a CEO stay focused in a job that is 24/7 – 365? Especially with all the small and large decisions that have to be made as well as the plethora of things that need to be followed up on and done.
How does a CEO meet the challenges of the daily grind of choosing and moulding his management team and motivating his franchisees and staff to achieve the successful execution of the company’s plans and strategies?
No one is more critical than the CEO themself on the performance of their organisation. A good CEO is always asking “how can my company be performing better?”
And then there is the real test of a good CEO in how they handles the inevitable disappointments and unforseen events that occur in business – which sometimes seem to occur more often than the successes. How do you turn them around and keep your company focused and motivated and not diminish your credibility as Leader?
It might seem to be a glamorous role but what others find hard to understand is that being a CEO is the most difficult job in an organisation. And success is far from a foregone conclusion. Being the CEO is a tough gig. But if you have the right attributes for the role, it is one of the most fulfilling jobs that you will ever do!
About the Author: George Yammouni of Bathroom Werx
George is CEO of the Bathroom Werx Group, a national franchise specialising in bathroom makeovers.Having started life in Merchant Banking as a Futures/Foreign Exchange Dealer in 1980, George become a franchisee in 1986, acquired the Franchisor in 1988 and then began franchising in 1990. George is one of Australia’s leading exponents of service franchising and has been actively involved in the Franchise community in Australia :
– Franchise Council of Australia : Director 10 years, Chairman 2 years.
-Victorian Government’s Small Business Advisory Council : 2 years
– World Franchise Council : 2 years.
Specialties: Franchising, Finance, Marketing, Management.
To ask George a free question in regards to franchising or the Bathroom Werx opportunity, email him here