Is confidence in all franchising past the Tipping Point?

March 19, 2010

The CEO and president of the International Franchise Association, IFA announces his retirement.

And then their board of directors announces that it’s looking for his successor?

  • Hello…does anyone talk to each other on the premiere franchisor-dominated trade association any more? Nobody cared on the board of directors enough to do anything until Matt Shay went public?

Don over at Blue MauMau makes a great point in his Importance of succession planning.

It is a healthy sign when a board of directors is strong enough to carry out one of its most fundamental jobs, making sure there is a leadership successor.

In the hidden world of the board room, it is a rare outward sign of possible cronyism or a weak board when it has not carried out this function. A vacuum of leadership in a trade association can be disconcerting to its membership. It can be an incredible opportunity for competitors.

The IFA announced yesterday that it has hired an executive search firm—probably with “urgent”, “critical” and “HELP!” stamped all over the job description packet—to find a suitable candidate to replace its outgoing CEO, Matt Shay. He has given his month notice, April 16.

I added my two cents worth in Excellent point on Leadership continuity.

I suggest every half-baked, local not-for profit plans for their leaders’ recruitment, training and inevitable replacement. Leadership planning is the core competency of any boy scout troop let alone the “brain trust” of everything that goes bump in the night in franchising worldwide.

It seems the IFA Board is in crisis. A crisis, I suggest, that has been triggered by almost no new sales or re-sales in a recession (contrary to past cycles). They denied it first, got angry at scapegoats, bargained with Uncle Tom social medias, sulk/in a funk and then will be dragged unwillingly into accepting a new, higher-quality business model (see death stages).

D’oh!!

The elite’s catching on: their dinosaur practices has pushed the industry past the Tipping Point with investors’ confidence.

And they realize they are powerless because the internet’s reputation mechanism lacks an off switch.

John Q. Public investor is waking up (becoming conscious) to the fact that modern franchising is Unsafe at any Brand.

  • This is very good news for franchisees wanting to co-operate with each other and good faith franchisors.

Not so much for the opposite: house negro franchisees and predator franchisors.

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