Paradigm-based communication;
Like cholesterol in the arteries it can choke the lifeblood of an organization.
Matthew Clulow - All Rights Reserved - 2006
Business processes are like the arteries of the human body. They channel important stuff that keeps us alive. Paradigm-based communication can act like cholesterol and choke the flow.
Case in Point - A multi-department team responsible for turn-key stores.
Opening new stores was an essential competitive strategy and a priority. Management wanted good relationships with franchisees but hadn't addressed that in their strategic plan; it was just an expectation.
| "One manager was taking all the heat for the problem" |
While the stores were generally finished on-time and everyone had completed their respective tasks as required, the franchisees were withholding significant payments because they felt they hadn't received what they were paying for. The problem had been accruing for two years and the outstanding collections were now too significant to ignore. The home office felt that the franchisee reaction seemed disproportionate to the problem.
One manager seemed to be taking all the heat for the problems. The fact that this guy had become the scapegoat was an interesting study itself, but it wasn't the problem we were asked to work on. Regardless, under the microscope it became apparent that he had done more than anyone to resolve the issue and was far more interested in resolving problems than placing blame. In fact, he had founded the entire process and had produced a record number of stores in the last two years.
Our first step was to ask a lot of questions. Here is a summary of the proposals and conversations that surfaced.
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Law Department: We have a contract. Look at what we have on paper and issue a default notice.
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Human Resources: We have to ensure that this accountability has been detailed in the job description, and that we train our staff to handle these unique accountabilities.
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Information Technology: We could install Microsoft Project Manager so everyone can see what has to be done, when, where, and why. The technology part is actually quite easy, but someone else will have to map the process.
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Accounting and Finance: When the project is done we tally the charges and mail the invoice. If we can't collect it becomes a legal or franchise department problem.
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Store Set-up Team: We don't get fixtures when we need them. We don't get inventory soon enough to meet deadlines and there are large wholes in the merchandising because inventory is back-ordered. We are pressured to open the stores before they are really ready.
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Real Estate: We have to push to open the store by the end of the rent free period. After that it costs us money every day we are closed.
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Franchise Sales: Our marketing material sets up a performance expectation. If we don't start delivering on that it's going to be hard to sell franchises.
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Dealer Relations: We used to have such a good relationship with our franchisees but now we don't. Word is getting around that we don't deliver and it's the new store team that's causing the problem.
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Merchandising: New stores are a small part of our responsibilities but they take up in inordinate amount of time. We squeeze the vendors to death for discounts, rebates, returns, promotions, sponsorship and terms, and then we don't pay them on time. It's tough getting them to ship. Finance has to pay our vendors on time.
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Advertising: It seems like we are always getting the short end of the stick. A supplier doesn't deliver product so we have to change the flyer at the last minute. It seems like everything is a mad rush and when we deliver, we have to delay the distribution of a preprinted flyer because the store set-up team didn't finish on time.
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Distribution: Our system is highly effective for replenishment, but handling one-off scenarios like new stores always requires and inordinate mount of special handling.
Any experience retail manager would recognize this as normal growing pains. When people work in isolation as part of a larger system, they develop a unique, but isolated view of the business and that may or may not not mesh with another part of the organization, or the overriding objectives of the business, and that can clog the system.
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The big question at this point was, who is the real problem and do we need to replace them?
| "...should we fix people or replace them?" |
After our initial survey and review of the process maps, we believed that everyone was handling their designated tasks as well as could be expected, under difficult circumstances. We also felt that we had not identified the real problem.
The final answer came from a private conversation with a franchisee. He commented that the "experts" from home office were seen as arrogant and indifferent by franchisees and the backlash was more about that, than it was about the money. That surprised me and didn't fit with my perception or experience at all. At first I wrote it off as a bad attitude but later, while reviewing the process map from a communications perspective, it jumped off the page.
The turnkey approach, by design, did not include regular communication with franchisees. The team had developed a high degree of competence and efficiency and the inexperienced franchisee was neither required nor welcome during the build-out or initial stocking period. The new franchisee was fully occupied in the training program at where they could learn about retail rather than construction. They often developed a strong relationship with the staff in the training facility. Then, when the store was ready, they inspected the new facility and a deficiency list was filed and solutions were scheduled - all normal!
| Marketing communication was not aligned with operational communication. |
The problem was, the franchise sales group had set up an expectation of teamwork and support while selling the franchise, but the new store team did not include them at all. Through due process the franchisee would discover deficiencies only to see the team run off to the next store. This was followed by long periods waiting, and continual delays; the deficiency list was not a bonus item but opening a new store was.
It's important to emphasize that the deficiencies were not significant. All of this seemed normal to the insider who was in the loop, but to a new franchisee it had become a major point of anxiety. They felt ignored, shut out, and isolated; the home office had not lived up to it's promise of support and this was all about relationships and communications.
The challenge now was to have the team discover the root problem for themselves and resolve it. Process review was not new to this group so we called for a process review. As we walked through the process several things became clear.
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Unable to sell their paradigm based solutions, individuals had taken on a defensive posture to ensure they were not blamed.
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No one in the room knew what the whole process was except for the manager who designed it.
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Several people disagreed on a critical points of the process; and this was ironed out in due course.
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No one owned or felt responsible for the relationship with the franchisee; but when that discussion surfaced someone saw this as an opportunity for personal growth and jumped on it.
With the problem identified and someone taking ownership of the relationship, the next step was to build a communications strategy and anchor it in the process. This was not difficult.
In the end, there was no significant change required other than ensuring that someone focused on strengthening the relationship with the franchisee and making sure that their issues did not get pushed aside.
Conclusion
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When communication plans are integrated into your strategic plan and business process you have a far better chance of achieving the desired outcome.
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Paradigm based communication can clog the system and fester into significant issues.
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It's not always necessary to replace people or overhaul a system to get the results you want.
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