The importance of leadership in the franchisor/franchisee relationship

Effective leadership can mean the difference between success and failure. 

By Gerhard van Wyk

While many theories and definitions as to the nature of leadership exist, for leaders to be successful they must be able to exert influence and also motivate and inspire a productive working environment. In the context of the franchise environment, leadership refers to the influence a franchisor exerts over franchisees and the franchisor’s ability to persuade franchisees to willingly work towards achieving the franchisor’s organizational objectives.

To successfully manage the individuals and groups that comprise a franchise network, effective communication is essential. Effective communication requires that the franchisor communicates the company’s vision, mission, goals, strategies and expectations to the franchisees, but also that the franchisor will listen to the franchisees’ problems and expectations. Closing the gap between goals and planning requires that the franchisor takes the lead in transforming plans into reality by influencing and motivating franchisees.

Why it is important for franchisors to be leaders 

Leaders have followers – no followers, no leader! And no franchise business! It is the franchisor’s responsibility to effect change and encourage performance within the franchise system by highlighting growth opportunities and giving direction to franchisees.

 One of the most notable shifts in the concept of leadership in the 21st century is a move towards leadership as an influential relationship. Consider the words of Harvard Professor and former Medtronic CEO, Bill George, “their approach to leadership is entirely different . . . They don’t care about position, power, status or organizational hierarchy, or even having followers. Instead, they are superb networkers who find collaborators to create opportunities and businesses. They are online 24/7, always networking, always in touch.”

For these emerging super-networkers leadership becomes an interlocking network of relationships where people work together to create change. For them, leadership is what people do together.

What is the difference between leadership and management?
Management is the ability to attain franchise goals via planning, organizing, staffing, directing and controlling organizational resources. Leadership should be in addition to management and can be described as the ability to influence others to cooperate willingly. Not all managers are good leaders and vice versa.

Management maintains stability and predictability whilst applying rules, policies and principles. Leadership on the other hand invokes change and challenges the status quo. Managers do things right while leaders do the right things. Managers assist in managing the changes induced by leaders, but contradictory as this may seem, good leaders can also follow.

Personality traits of effective and successful leaders:
• A realistic self-confidence (even during times of crisis)
• Honesty, integrity and credibility
• Extrovert
• Assertive
• Emotional stability (EQ)
• Enthusiastic/optimistic
• Sense of humour and warmth
• High tolerance for frustration

Personality traits of ineffective leaders:
• Insensitive to others
• Abrasive
• Cold
• Untrustworthy
• Selfish
• Unable to delegate

The performance of an organization/franchise system is directly related to the quality of its leadership. For a franchise to be successful it is imperative that the franchisees, employees and shareholders trust the leadership of the franchisor. A franchisor who is loyal, consistently reliable, exercises good judgement and is competent, will earn the trust of his franchisees.


vanwykg@mweb.co.za
+27 71 481 9956