A franchisor in the haircutting industry wanted to improve the screening process for prospective franchisees, area directors, and store managers. They wanted to discern earlier in the interview process which candidates were ideal for their potential positions. Franchisees suffered an average annual employee turnover of approximately 200%. Many existing franchisees did not have the right personality for their positions.

They first compared the behavioral requirements of three positions: area manager, franchisee, and store manager. As part of this process, they also surveyed the personalities of all their existing area managers and franchisees. The points were used as part of the benchmarking process and were then used for training and leadership development purposes. These franchisees were trained using Accord's 5-Level Performance Pyramid and its cognitive approach. Through this approach, your "B players" were able to become "A players," your "C players" became "B players," and many of your "D players" were also able to develop higher levels of success.

They found that area managers with the right personality could perform at higher levels and grow their territories at a faster rate. The right area manager was able to effectively run a larger organization, have a bigger impact on their franchisees, and generate more revenue because of the impact they showed.

They found that franchisees with the right personality can achieve profitability 33% faster than those without the right personality. They were also able to grow and maintain their operations. They had significantly lower employee turnover, were more proactive, and were generally lower maintenance franchisees.

They found that by "getting the people side of their business right," they were able to meet their short-term tactical objectives while maintaining their strategic vision.

The cost of the two-year implementation was approximately $45,000. The franchisor was able to add seven area managers, grow their organization from 350 to 500 locations, and lay the foundation for more profitable growth.

Questions

Help the salon make a decision by outlining the Five (5) Advantages and Five (5) Disadvantages of a Staff Position.

Assuming the salon has adequate capital, would you recommend that they invest in the franchise or open their own store and why?

Hairdressing business research needed to find out your training and leadership development? Explain the five (5) steps of market research.