This best practice speaks to the importance of establishing and managing a regular performance monitoring and review cycle.
Management thinker Peter Druker famously said “If You Can’t Measure It, You Can’t Improve It.” What he was understood to mean is that you can’t know whether or not you are successful unless success is defined and tracked.
The corollary for franchising is, as for other forms of business, while it is important to measure a range of KPIs, they are of limited use unless they are measured and reviewed on a consistent basis.
A franchising company needs to establish and maintain a monitoring and review cycle to suit their business.
For many companies, it may be that some KPIs are reviewed on a different basis. For example, a cafe owner may review labour and sales within day parts (to optimise daily labour), while other aspects may more practically and usefully be reviewed weekly, monthly, quarterly or annually.
The important thing here is ensuring that there is a consistency to what is being measured and reviewed, by franchisees and the franchisor.
A best practice franchisor will tie this framework into the field management and greater performance management cycle, using these structures and practices to cascade up. More specifically, an established franchisee monitoring and review cycle enables the franchisor to consistently understand their own levels of achievement to franchisor business plan objectives.
- How regularly do you and your franchisees monitor and review performance?
- What do you monitor and when, and how could this be improved?
About the Franchising Best Practice 500 Series
This is part of a series of franchising best practices. Franchize Consultants is sharing and publishing these best practices weekly for the betterment of franchising. We know that better knowledge and execution of franchising best practices leads to bigger and more valuable franchisor and franchisee businesses.
We have assembled the first 40 best practices into The Best Practice Handbook, which is available for purchase.