Case Study:

A franchisor in the hair cutting industry wanted to improve the selection process of prospective franchisees, area directors and store managers. They wanted to discern sooner in the interview process which applicants were ideal for their prospective positions. Franchisees were suffering an average annual employee turnover of approximately 200%. Many existing franchisees did not have the right personality for their positions.

They first benchmarked the behavioral requirements of three positions: area director, franchisee and store manager. As a part of this process they also surveyed the personalities of all of their existing area directors and franchisees. The points were used as part of the benchmarking process and were later utilized for the purposes of training and leadership development. These franchisees were trained using the Accord 5 Tier Performance Pyramid and its cognitive approach. Through this approach, their B players were able to become A players, their C players became B players and many of their D players were able to develop greater levels of success as well. They are now in the process of utilizing similar technologies to select stylists.

They found that area directors with the right personality were able to perform at higher levels and grow their territories at a faster pace. The right area director was able to effectively manage a larger organization, have a greater impact on their franchisees and generated greater revenues because of the impact they displayed.

They found that franchisees with the right personality are able to reach profitability 33% quicker 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 in general were lower maintenance franchisees.

They found that by Getting the People Side of their Business Right they were able to meet their tactical short term goals while maintaining their strategic vision.

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

Questions

Help hair salon make a decision by outlining the Five (5) advantages and Five (5) disadvantages of a staff positioning.

Assuming that hair salon has adequate capital, would you recommend that he invest in the franchise or open his own shop and why?

Entrepreneurial research hair salon needed to find out his training and leadership development? Explain Five (5) market research steps.