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The Franchisee’s Invisible Line

October 15th, 2009

Lastly, when it comes to technology projects, the historical success of implementing technology for both the organization and the CIO creates another IDM Threshold. If the organization or the CIO has historically failed (in the franchisee’s mind) at implementing technology in the past, then the business case is in trouble. This causes debate on an emotional level rather than on an empirical level. Although this one is harder to quantify, the fact is that if the franchisees do not believe the organization either has the capability to successfully deploy a new technology or will deliver the promised results, then “It Doesn’t Matter” how good the business case is.

You may be thinking, “So should retail franchise IT only focus on delivering cheap and easy-to-use approaches?” In most cases, I would say, “Yes.” I do, however, believe that IDM Thresholds can be managed and changed over time. I think it is important for organizations to have explicit goals to manage IDM Thresholds. Here are some ways to improve your organizations IDM Thresholds:

  • By far the best way to increase your IDM Thresholds is to under-promise and over-deliver on the small projects. Go for a high batting average with a lot of singles versus a lot of strikeouts and a few home runs. This approach helps you gain credibility and momentum.
  • Talk to your franchisees about IT spending in enterprise environments. Make sure they understand that it is not uncommon for IT organizations to increase their IT spending when they feel it has strategic or competitive value. Remember, strategic IT is not something that most franchisees think about. Share with them analysts’ reports about strategic IT spending. Have these conversations when you aren’t trying to pitch them a big project.
  • Take the time to make sure that the technology projects you deliver focus on ease of use. Be maniacal about it. Choose ease-of-use over value. A simple approach that only produces one-half of the benefits is better than a complex one.
  • Know your franchisees’ and your organization’s IDM Thresholds at all times. Constantly filter your thinking about delivering IT value against these thresholds. Don’t put yourself in a position to fail before you start.

    So the next time you work with your partners in operations or marketing on a new technology package for your retail locations, talk to them about the organization’s IDM Thresholds. Make it part of how your company thinks about technology projects in the future. In the end, you will be better prepared to discuss the business case with your franchisees by openly talking about the hidden line on the business case.

    What do you think? Love it or hate it, I’d love to gain some additional perspectives. Leave a comment, or E-mail me at Todd.Michaud@FranchiseIT.org.


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    One Comment | Read The Franchisee’s Invisible Line

    1. Rob Martell Says:

      Maybe if the Franchiser paid some or all of the costs, Franchisees would be less reluctant?

      You want me to spend X to update something, and Y to train all my people to use it? Ticking off customers in the meantime. And I have to pay?

      Ha!

      My 2 cents
      Grins,

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