Why Every Franchise Should Have a Peer Performance Group Program
What is a Performance Group?
Bin There Dump That has performance groups that meet quarterly. As the franchisor, we group together individual franchise operators based on the criteria below;
How long have they been in business ?
How large is their business ?
Where are they situated geographically ?
We try to group franchise operators together that are similar. The mission is to give the franchise operator an opportunity to work together to help each other improve their businesses. This fosters a great suppor team for both the franchisee and franchisor.
The purpose of these groups was formed so that the franchise operators can work amongst themselves to help each other.
How to set up a Performance Group?
We, at Bin There Dump That have 5 to 7 franchise operators in each of the performance groups. They meet virtually on a quarterly basis. In the beginning months of creating performance groups, they were meeting monthly to get into the grove of these meetings. The groups also meet face to face once a year usually the day before our annual conference begins.
How are the meetings run?
Franchise operators have an opportunity to present to the group Key Performance Indicators(KPI). These numbers are specific to their own business in the past quarter. The other members of the group act as advisors. They analyze their numbers with them and provide suggestions as to how they can improve their business based on experience. The Key Performance Indicators create benchmarks for other operators within a similar criteras.
One of the most important things that we measure at Bin There Dump That, is the cost of dumping. As you know we are a trash hauling business that dumps at the landfill, which to your surprise is a large expense.
At Bin There Dump That we have over half of our franchise operators participating in these meetings. Its important to note that not everyone is allowed to participate, and not all franchise operators will be comfortable to share. As a franchisor be open with the commit level of these meetings. They must be willing to share all their numbers with peers, and make the commitment to attend the meetings.
An operator is running at a high cost of goods on dumping. The other franchise operators would help that particular operator figure out what they can do to improve and become more effective. The group looks at labor costs, fuel costs, and marketing costs.
These meetings foster an excellent support team to help each other, as well as provide direct feedback to the franchisor and how they can better assist their franchisees. We expect that as we continue to grow the network, we will continue to grow and restructure this program.
This is a highly successful program for our franchise; we recommend trying it. It’s all about benchmarking and knowing your metrics to help your single franchise operator units improve their own business.