What do you do if your franchising business lacks a pipeline of future leaders?

When I started BNI India, we didn't have a proven roadmap to build a successful master franchise territory, nor did we have a blueprint for a successful head office to support the operation. The best piece of advice I got was to draw an org chart for how the business would look when we had realised our BHAG (big hairy audacious goal, ref: Good to Great, Jim Collins). Each role was drawn, and my name went into each box. As we grew, m name was taken out of the roles that others could do better, or I didn't enjoy. This approach resulted in being recognised as a top performing territory on most of the critical KPIs valued by the organisation. Or as Dr Stephen Covey said "begin with the end in mind"

The first step in building a pipeline of future leaders lies in accurately identifying where your franchise system is weak. Don't just assume the issue is a lack of talented individuals – dive deeper. Are you missing key roles required for scaling? Do you have strong mid-level managers but no one seasoned enough to step into an executive position? In my experience, understanding the specific gaps gives you a much more targeted focus for your leadership development efforts. Tip: Conduct a thorough skills and competency audit within your franchise. Don't just look at current job descriptions - think about where your franchise is headed in the next 5-10 years and the leadership capabilities you'll need to get it there.

Conduct a thorough assessment of your organization's current leadership capabilities and future needs. Identify gaps in skills, experience, and leadership qualities that may be hindering the development of future leaders. Utilize data analytics and employee feedback to pinpoint areas for improvement and prioritize development efforts.

I would add to look for future gaps that may arise as the franchise continues to grow. Career development is a long term game - so having a 5-10 year timeline is key.

Identifique potenciais líderes, ofere?a treinamentos e acompanhamento (mentoria) para o desenvolvimento profissional, n?o adianta identificar e largar o talento de lado. Avalie decis?es conjuntamente, ajuste seu comportamento na gest?o da equipe, media??o e resolu??o de conflitos. Identifique e prepare sucessores para posi??es de lideran?a. De oportunidades reais e n?o apenas retórica de contrata??o e reten??o. Autonomia para liderar em diversos níveis, aceite contribui??es e idéias. Discuta, explique com clareza de forma técnica a viábilidade, custos e impactos para que ampliem a vis?o. Talentos precisam ter a sensa??o de importancia, para mante-los motivados, melhorando suas colabora??es e postura, criando um efeito disseminador.

One of the ways to invest in future leaders is to allow them to learn other parts of the business beyond their original job title. This can sometimes be hard to do because they will likely not be as effective in a different role and you also create a gap in their former role, but will make them more valuable employees and also greatly improve the retention in your company.

Como gestora de equipes, invisto n?o só em treinamentos como também no repasse do meu conhecimento. Umas da melhores maneiras de criar possíveis sucessores é ensinar na prática. Observe, ensine, acompanhe e forne?a feedbacks construtivos. Paralelamente, possibilite treinamentos técnicos sobre a fun??o.

Operational excellence and know how matters. But franchising is a people business. Even if you deal via the internet only with your end user, you still have to interact with your franchise network and suppliers. Franchisees have to engage with their own teams/suppliers. And people buy people- always: eg. what's the determining factor if you have exactly the same deal from 2 different vendors for a car? You will likely lean toward the person you like more! So training your teams in soft skills is even more important. And a great short cut is to recruit on "attitude" and then train on the "aptitudes". You can teach someone the specific aspects of doing their tasks but its a lot harder to teach an intrinsically dour person to be engaging!

Once the gaps are clear, it's time to invest strategically in training. Consider that leadership development is not a one-size-fits-all solution. Early-career managers need different skills than those being groomed for top-level roles. I've seen too many franchises waste resources on generic leadership courses that don't align with their specific needs. Tailored training programs and focused skill-building workshops can provide a much higher return on your investment. Tip: Consider partnering with specialized training providers that understand franchise-specific challenges. They can offer programs relevant to the unique dynamics of running a franchised business model.

Invest in comprehensive training and development programs to build the skills and capabilities of potential future leaders. Provide opportunities for ongoing learning, both through formal training sessions and on-the-job experiences. Offer workshops, seminars, online courses, and coaching sessions focused on leadership development, strategic thinking, decision-making, communication, and other essential skills.

Foster a culture of ownership and accountability among employees by empowering them to take on leadership responsibilities and make meaningful contributions to the organization's success. Encourage initiative, innovation, and entrepreneurial thinking at all levels of the organization. Provide opportunities for employees to lead projects, initiatives, or teams, and recognize and reward those who demonstrate leadership potential.

Development of Entrepreneurial thinking is the key, which can foster ownership in team members but most important over here is that founders or top management has to be honest and transparent with key team members so that they can develop entrepreneurial thinking.

Partnering experienced team members with less experienced team members in a formal way is a huge way to do this. Set up a monthly coffee or 15 min meeting for them to engage and learn from each other.

Nothing accelerates growth like a strong mentor-mentee relationship. Senior leaders in your franchise system have a wealth of experience and knowledge to share. I've seen the power of formalizing a mentorship program where up-and-coming potential leaders are paired with experienced executives for guidance and career development. This provides invaluable hands-on learning and exposure to strategic decision-making. Tip: Mentorship programs work best when they are structured with clear expectations for both mentors and mentees. Don't just leave it up to chance – provide guidance on topics to discuss and a framework for regular meetings.

Establish mentorship programs that pair emerging leaders with experienced executives or senior managers within the organization. Encourage mentorship relationships based on mutual trust, respect, and shared goals. Provide guidance, support, and feedback to mentees as they navigate their career paths and develop their leadership skills. Encourage mentors to share their knowledge, insights, and experiences to help mentees grow and succeed.

Mentoring in franchising is a crucial element that supports the growth and success of franchisees. It involves experienced franchisors or successful franchisees providing guidance, knowledge, and support to new franchise owners. The mentor-mentee relationship helps in transferring essential business skills, addressing challenges specific to the franchise model, and fostering a supportive network within the franchise system. This provides structure to the Franchise system and enables a more supportive environment. This will show the Mentee what is possible in building their own potential. The Franchisor builds a Top Talent list for future development opportunities especially when entering a new geography.

Monthly zoom calls and regular one to on meet can add lot of value and speed this processes, mentor reaching out to mentee on regular basis by some sort of schedule and task can do wonders

Develop clear pathways for career progression and leadership development within the organization. Outline the competencies, experiences, and milestones required for advancement to leadership roles. Provide transparent career development opportunities, succession planning processes, and promotional pathways to motivate and retain top talent. Communicate openly with employees about their career aspirations and provide guidance and support to help them achieve their goals.

That is a very good advice – I just went to conference here in Germany two weeks ago and heard about this: A well-known Pizza-Brand has established an academy model to help Pizza-Workers grow to a Multi-Unit Franchise Owner. Learn from the best: do it, too.

To improve engagement and retention, be clear about the various pathways people can grow and contribute to the organisation. (This applies to any organisation, even if not franchised.) Tony Robbins talks about the 6 Human Needs and the two most powerful ones for fulfilment/meaning are growth and contribution. People crave meaning and fulfilment and if they don't find it, they move on to other things, or worse still, they remain but are disengaged (note the recent rise in "Quiet Quitters")

Step 1: Franchise recruitment undergoes strict screening. This may affect early signups and revenue, but lifetime franchise value will yield greater returns over time. Step 2: While most franchise systems have a well-designed training methodology it is imperative to innovate and bring in external support to inject fresh ideas and energy. Step 3: Promote a growth culture by encouraging franchise owners to empower their teams. Give them opportunities to make decisions and foster next-in-line leadership. Step 4: Incentivize and retain good talent. Recruiting and training new manpower is time-consuming and expensive. Step 5: Identify future needs of franchise units, create new roles, and assign leaders.

Retaining top talent is all about compensation! If you can't afford to pay competitive salaries and bonuses consider throwing equity bonuses and long-term incentives that will align everyone's goals

Creating a pool of future leaders should be amongst the highest priority of the top management. It is not an overnight realisation that there aren't leaders, it is a factor of ignorance. - Draw an org chart and identify gaps - Understand the levels at which leaders are needed. - Explore if these gaps may lead to existential crisis sooner than later. - Identify who amongst the existing lot can handle this mandate or would it need lateral hiring. - Check for fitment: they should believe in the ethos, value systems, culture of the organisation, etc. - You may encourage doubling up responsibilities till such a time that the lateral hiring is done and the incumbent is eased into the role. - Provide ample support & encouragement

If your business lacks a pipeline of future leaders, you need to address the situation. The sooner the better. Why? You can only grow and sustain your organisation to the level of leadership in place! Consider the roles you need leaders in. Thinking beyond current needs to which leaders are going to develop other leaders will ensure longevity of the organisation beyond your own impact/reach.

I am the owner of a consultancy for FranchiseGrowth in Germany, so you might say I am a little selfish, when I give you this advice (but I was "on the other side", too when I worked for one of the Top 3 Franchising Companies in Germany): Get an external opinion, or two or three, before you make a decision. I do it, too, when it comes to fields I have no expertise on. You will safe money, time and a lot of nerves...