How do you balance innovation with core values?

1 Define your core values

The first step is to clearly define your core values and communicate them to your franchisees. Your core values are the principles and beliefs that guide your business decisions, actions, and behaviors. They are what make your brand unique and recognizable. You should identify the core values that are non-negotiable and that apply to all your locations, such as customer service, integrity, or social responsibility. You should also explain why these values are important and how they benefit your franchisees and customers.

2 Encourage innovation

The next step is to encourage innovation and creativity among your franchisees. Innovation is the process of creating new or improved products, services, processes, or methods that add value to your business and customers. Innovation can help you stay ahead of the competition, increase customer satisfaction, and reduce costs. You should foster a culture of innovation by inviting feedback, suggestions, and ideas from your franchisees, rewarding their achievements, and providing them with the resources and support they need to implement their innovations.

3 Set boundaries and guidelines

The third step is to set boundaries and guidelines for your franchisees to follow when they innovate. Boundaries and guidelines are the rules and standards that define the scope and limits of your franchisees' autonomy and authority. They are what ensure that your franchisees' innovations are aligned with your core values and brand identity. You should establish boundaries and guidelines for aspects such as quality control, pricing, marketing, design, and compliance. You should also monitor and evaluate your franchisees' performance and innovations regularly and provide them with feedback and coaching.

4 Adapt to local markets

The fourth step is to adapt to local markets and customer needs. Local markets are the specific geographic areas or segments where your franchisees operate. Customer needs are the problems, desires, or expectations that your customers have and that your products or services can solve or fulfill. Adapting to local markets and customer needs can help you increase your market share, loyalty, and profitability. You should allow your franchisees to customize or modify your products, services, or operations according to the local market conditions, preferences, and demands, as long as they do not compromise your core values or brand image.

5 Learn from best practices

The fifth step is to learn from best practices and share them with your franchise network. Best practices are the methods, techniques, or processes that have proven to be effective, efficient, or successful in achieving a desired outcome. Learning from best practices can help you improve your performance, quality, and innovation. You should identify and analyze the best practices of your own franchisees or other franchises in your industry or region. You should also share them with your franchise network and encourage them to adopt or adapt them to their own situations.

6 Balance innovation with core values

The final step is to balance innovation with core values. Balancing innovation with core values means finding the optimal combination of novelty and consistency, flexibility and stability, and diversity and unity. Balancing innovation with core values can help you maintain your competitive edge, customer satisfaction, and franchise cohesion. You should review and adjust your balance regularly and involve your franchisees in the process. You should also celebrate and showcase your achievements and innovations that reflect your core values and brand vision.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?