family-business-succession-planning

In the dynamic world of multi-unit franchise ownership, effective leadership is the key to seamless business operations, even in the owner’s absence. This is particularly crucial for those navigating growth and succession strategies. However, the conventional “hub and spoke” management approach, often seen in entrepreneurial-owned businesses and multi-unit franchises, can present challenges to smooth operation, growth, scaling, and succession planning.

Drawbacks of the Hub-and-Spoke Model

Under the hub-and-spoke model, all information and decisions flow through a central individual—the hub—while the spokes represent employees fulfilling specific roles. While this approach is prevalent, it comes with drawbacks that impede progress. Growth is restricted by the owner’s capacity, decision-making experiences delays, and employees lack empowerment, hindering their development.

Strategies for Effective Delegation

Effective delegation is paramount to unlock your business’s full potential and ensure long-term success. Here are ten strategies to leverage your team’s talents and skills:

  1. Understand Your Team’s Strengths: Identify each team member’s skills and strengths to recognize areas of expertise and passion.
  1. Clearly Define Expectations: Communicate objectives, expectations, and desired outcomes clearly, providing detailed briefs with specific guidelines.
  1. Match Tasks to Skills: Align tasks with each employee’s capabilities, ensuring that the complexity of tasks matches their experience levels.
  1. Encourage Ownership: Empower employees to take ownership of their tasks, allowing them to make decisions and take responsibility for their work.
  1. Provide Adequate Resources: Ensure employees have the necessary resources, tools, and information, and offer training for skill enhancement.
  1. Establish a Feedback System: Create an open feedback loop, offering regular feedback that highlights strengths and areas for improvement.
  1. Encourage Initiative: Foster a culture where employees feel comfortable taking initiative and acknowledge and reward proactive behavior.
  1. Set Realistic Deadlines: Manage expectations by establishing realistic deadlines and considering the time requirements for quality work.
  1. Build Trust: Demonstrate confidence in your team’s abilities, avoiding micromanagement to preserve trust.
  1. Communicate Effectively: Maintain open communication lines, being available for questions and clarification.

Growth and Succession Strategies

Developing specific job descriptions, coaching, training, and mentoring will prepare individuals to assume responsibilities. The goal is to replace yourself with an equally effective hub—one key person or several key players.

If your multi-unit business heavily depends on you, consider strategic changes to reduce dependence and propel your business to the next level. Reflect on how well your business functions in your absence and take steps to avoid letting the hub-and-spoke approach stifle your business’s potential.

Unleash the full power of your team and elevate your business to new heights!

Contact Us, and we can help you with insights and other resources and see if it makes sense to work together. At the very least, in 30 minutes, you may get some ideas to apply to your business immediately.

The article was initially published on Franchising.com: Break Free from the Hub & Spoke Mentality.

For more insight:

Visit the “Multi-Unit & Multi-Brand Franchise Ownership Strategies” discussion page or select one of the additional episodes of the series below:

Resources

  • West Coast Franchise Law: Serving multi-unit, quick-serve restaurant franchisees nationwide and their franchise, leasing, and business law needs. For more information on West Coast Franchise Law services, contact Nate Riordan.
  • Succession Readiness Survey:  A 7-minute investment in time will put you in an informed position of opportunities many business owners overlook, impacting business value, growth, and lifestyle and ultimately achieving your vision.
  • Contact a Succession Planner: The Rawls Group can help you with insights and other resources and see if it makes sense to work together. At the very least, in 30 minutes, you may get some ideas to apply to your business immediately.



Leadership Management & Continuity

Top talent is hard to find these days, so when you find them, it is critical you have the strategies in place to retain and motivate your key people. Click the following links for more drill-down resources on Leadership and Management Continuity.

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We can help you with insights, other resources, and see if it makes sense to work together. At the very least, in 30 minutes, you may get some ideas you can apply to your business right away.