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8/8/2019 Building Future Success Survey Report (April '10)
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Building Future SuccessBuilding Future SuccessResults & Analysis of Survey 2010Results & Analysis of Survey 2010
April, 2010April, 2010
NOTE: This presentationNOTE: This presentation--report is incomplete without the accompanying discussion.report is incomplete without the accompanying discussion.
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Table of contents
Survey 2010 objectives, content, structure & rollout plan Survey results & analysis:
Response ratio & demographics
Findings: Information & Knowledge-Sharing Brand Strategy/Success
Fostering One System & Trust Operational Execution/Excellence Profitability & Growth Top Challenges & Suggestions Summary of Top Issues
Partnership Effectiveness Scorecard Comparisons with 2007 & 2008 surveys
Recommended actions
Appendix- Scorecard Committee members, 2010 survey questionnaire
& past survey results
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Survey objectivespurpose
3
Our 2010 Franchise survey was aimed at identifying:
barriers in system that interfere with us working effectively
together & with KFCC;
the top 2-5 issues of concern, & improvement actions, we all
agree on;
our strengths, successes, whats working & wins- not just
issues, or problems.
Build stronger organization trust & partnership with KFCC
Measure & benchmark, over time, how were doing to enable
calibration of future action
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Survey content and structure
This years survey asked 19 questions, including 3 that
solicited open-ended comments & suggestions Questions were developed in late 2009 by Joan Bowling, her
Balanced Scorecard Committee members, with Sr. KFCC
management input & assistance from an independent
consultant, Mike Takla (MGT & Associates)
The survey was organized along 5 Effectiveness Factors:
Information & Knowledge-Sharing
Brand Strategy/Success
Fostering One System & Trust
Operational Execution/Excellence
Profitability & Growth
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Survey distribution and rollout
Target AKFCF recipients (539):Target AKFCF recipients (539): One survey per franchise, letting larger ones decide who else on their
management teams should also be invited to complete questionnaire.
2010 survey rollout & feedback:2010 survey rollout & feedback: Survey launched & available for completion at Feb./10 Convention;
3rd party supplier (Survey Monkey) handled on-line collection &
consolidation of survey results; Summarized survey data went to Mike Takla & then AKFCFs BSC
Committee to analyze findings & develop priorities & recommended
actions;
Survey findings, draft priorities & recommended actions sent to DanYagoda & AKFCFs leadership team for discussion & approval;
Survey results & future actions made available in early April;
Town hall meetings, AKFCF Newsletter, & local presentations to be
used to communicate survey results, planned actions & to solicit
additional feedback & opinions.
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Table of contents
Survey 2010 objectives, content, structure & rollout plan Survey results & analysis:
Response ratio & demographics
Findings: Information & Knowledge-Sharing Brand Strategy/Success
Fostering One System & Trust Operational Execution/Excellence Profitability & Growth Top Challenges & Suggestions Summary of Top Issues
Partnership Effectiveness Scorecard Comparisons with 2007 & 2008 surveys
Recommended actions
Appendix- Scorecard Committee members, 2010 survey questionnaire
& past survey results
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Survey results: Response ratio and demographics
Highest AKFCF survey response ever at 74%*
7
N= 397/539 (74%)*
Past AKFCF Scorecard surveys*:
Spring '07- 178/539 (33%) Fall '07- 184/539 (34%) Fall '08- 268/539 (49%)
How many restaurants do you operate?How many restaurants do you operate?
Which regional association do you belong to?Which regional association do you belong to?
NOTE: Numbers might not total 100% because not everyone answered all questions.
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Survey results:
Information and knowledge-sharing
47%47%
63%63%
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Survey results: Information & Knowledge-sharing
Significant findings
Almost of franchisees (47%) believe they have the
information & know-how to successfully operate their
restaurants; 27% disagree;
Only about of all respondents believe there are
productive ways to share information & best practices
& that information about the brand is communicated &
distributed in a timely & effective manner; 63% dont believe that financial data, used to make
business decisions, is shared in an open & effective
manner.
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Survey results:
Brand Strategy/Success
71%71%
55%55%
83%83% 81%81%
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Survey results: Brand Strategy/Success
Significant findings
71% dont believe that the current brand vision & strategy
are clear;
83% dont believe we have a strong Marketing calendarthat will drive sales growth & 81% dont think that KFCs
product development provides a pipeline of innovative &
cost-effective products;
Just over half of franchisees (55%) believe that were not
responding, effectively & promptly, to address customer
issues & needs;
Data suggests that many franchisees believe: customer-related issues & needs are effectively being
addressed at the store level, but not on a national basis; much more product testing is needed before launches; were making quick product changes but some are too
quick, not thought out enough &/or are not the rightchanges we should be making.
Topic with 3rd lowestrespondent ratings.
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Survey results: Fostering One System & Trust
Significant findings
84% dont believe that franchisees & KFCC leaders work
jointly, in a spirit of trust & mutual respect, toward brand
growth & success; 80% dont believe that franchisees & KFCC are responsive
to each others concerns- not enough give & take on
KFCCs part;
Almost of all franchisees (74%) dont believe thathealthy debate & 2-way dialogue is occurring between
franchisees & KFCC.
Topic with 2nd lowest
respondent ratings.
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Survey results:
Operational Execution/Excellence
46%46%
47%47%
48%48%
60%60%
55%55%
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Survey results: Operational Execution/Excellence
Significant findings
Less than of all franchisees (46%) believe thatoperational & performance standards are clear &
reasonable & that theyre consistently applied &executed on a nationwide basis, including inspectionstandards (47%);
Less than (48%) believe that knowledge, resources &support are provided to achieve operational goals &
objectives 60% dont believe that training is reliable, accessible &cost-effective. Although the move towards digital, on-linetraining appears, on the surface, to be a good idea: KFCC has done a very poor job of providing quality,bug-free training for the monthly fee it charges franchises; most restaurants have a very limited number of computers to
support training initiatives; training oftentimes interferes customer service delivery.
55% dont believe were effectively leveraging technology &working towards continual improvement & simplified
operations.
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Survey results:
Profitability and Growth
82%82%
84%84%
80%80%
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Survey results: Profitability & Growth
Significant findings
82% of franchisees dont believe that were doing all we
can to improve business profitability- many are hurting;
84% dont believe that new builds & remodelledrestaurants are cost-effective- a major lack of
endorsement of KFCCs current remodelling strategy;
80% dont believe that products & promotions, rolled out
this year, were profitable for their organization- a major
lack of endorsement of KFCCs current Marketing &promo strategies;
The very small minority of franchisees, that disagree with
the above (4-8%), are likely: smaller restaurants, in rural areas, not heavily impacted
by current upgrade &/or Marketing/promo strategies; restaurants who have been rescued by KFCC, in some
way, & are not feeling the hurt as intensely as others.
Topic with lowest
respondent ratings.
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Lowest rated effectiveness factors
1
2
3
4
5 3.3. Brand Strategy/SuccessBrand Strategy/Success (1.8) Brand vision & strategy unclear (71%)(71%) System too slow in addressing customer issues & needs (55%)(55%)
Weak Marketing calendar driving sales growth (83%)(83%)
Weak product development for innovative & cost-effective products(81%)(81%)
1.1. Profitability & GrowthProfitability & Growth (1.4) Not enough being done to improve profitability (82%)(82%)
New builds & remodels not cost-effective (84%)(84%)
Products & promotions unprofitable (80%)(80%)
2.2. Fostering "One" System & TrustFostering "One" System & Trust (1.6) Trust & mutual respect lacking (84%)(84%)
Unresponsiveness to each others concerns (80%)(80%)
Healthy debate & 2-way dialogue absent (74%)(74%)
CoreCore
RequirementRequirement
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Table of contents
Survey 2010 objectives, content, structure & rollout plan Survey results & analysis:
Response ratio & demographics Findings:
Information & Knowledge-Sharing Brand Strategy/Success Fostering One System & Trust Operational Execution/Excellence Profitability & Growth Top Challenges & Suggestions Summary of Top Issues
Partnership Effectiveness Scorecard Comparisons with 2007 & 2008 surveys
Recommended actions
Appendix- Scorecard Committee members, 2010 survey questionnaire
& past survey results
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Survey results: Top Challenges & Suggestions (784 comments*)
Profitability, mutual respect and goal-alignment
Q.1: Biggest challenge that franchisees and KFCC need to address together?
1. Achieving profitabilityprofitability & sales growthsales growth.2. Building trust & mutual respecttrust & mutual respect to beat competition, not each other.
3. More leadershipleadership teamwork, cooperation, communications & compromise-
Partners, not dysfunctional enemies.
4. Goal & process alignmentGoal & process alignment on brand positioning, operations simplification,decision-making rights, at operating level, & better information/data-sharing.
Joint KFCC/AKFCFJoint KFCC/AKFCF--related commentsrelated comments
KFCCKFCC--related commentsrelated comments
1. RecognitionRecognition of franchisees core role, knowledge & expertise- Too much top
down, condescension, arrogance, lack of listening, understandingbullying.
2. Too many new & unprofitable productsToo many new & unprofitable products are killing bottom line. Promote all
products, not just Marketings pet initiatives.
3. Overly-rigid upgradesupgrades notnot costcost--effectiveeffective & require urgent attention.
(Contd)*279 answered question; by order of most frequently mentioned.
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Survey results: Top Challenges & Suggestions (784 comments)
Profitability, mutual respect and goal-alignment
1. Creating relevant brand & productsbrand & products for customers which have been lost- Back
to basics & Original Recipe. Too many poor quality, unprofitable products now
on a bloated menu. More appeal to younger generation with innovative, healthy
offerings.
2. Lowering offood & laborfood & labor--related costsrelated costs.
3. Clear & effective Marketing program, advertizing & promosMarketing program, advertizing & promos based on facts
& customer needs, not gut feel. More rigorous product testing before launches.
Lack of overall impact & success that Marketing (& remodels) have had on sales-
completely out of touch with reality. Were discounting our products away.4. More & better front-line trainingtraining, which is practically non-existent now.
5. Fairer & more balanced Inspectors/inspectionsInspectors/inspections- Their sole mission appears to
be to support KFCCs agenda of putting franchisees out of business to gain more
control.
Business PracticesBusiness Practices--related commentsrelated comments
Q.1: Biggest challenge that franchisees and KFCC need to address together?
(Contd) 21
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Survey results: Top Challenges & Suggestions (784 comments*)
Communications, information-sharing and
business alignment
Q.2: . How can franchisees and franchise organizations be more effective?
1. KFCC needs to listen to, respect & trust franchisees knowledge, expertise &viewpoints.
2. More & better sharing of information & data- financial, marketing, facilities.
TwoTwo--way Communicationsway Communications
1. Cross-system sharing of best practices.2. Better:
longer-range planning; store-level training for Managers & teams; innovation & more open-mindedness; access to professional services & experts to assist in field; cost control.
3. Clear understanding of needs, common business goals, strategies & tactics-
One agenda, not two.
4. Profitable Marketing & promotional programs that clearly add to bottom line.
5. Sharing of decision-making between KFCC & franchisees- new products, ads.
Business Strategies & ProcessesBusiness Strategies & Processes
*238 answered question; by order of most frequently mentioned. (Contd)
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Survey results: Top Challenges & Suggestions (784 comments)
Communications, information-sharing and
business alignment
Q.2: . How can franchisees and franchise organizations be more effective?
1. We need to stand together with strength, solidarity & firmness.2. Work with KFCC in these tough times as partners, not enemies.
3. Focus on the future & competitors, not on the past & inward against each
other.
4. KFCC needs to get their vindictive Inspectors off our backs.5. Current NCAC issues need to be resolved. NCAC needs to get its act together
& not simply sit back & blame KFCC for poor products.
Other Notable SuggestionsOther Notable Suggestions
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Survey results: Top Challenges & Suggestions (784 comments)
KFCC needs to understand the formula:
Franchisee success=KFC successQ.3: How can KFCC be more effective?
1. Clearer business vision, goals, strategies & tactics, incl. alignment on these.2. Higher quality & cost-effective training, incl. sharing of best practices.
3. More rigorous testing of new products before launch that everyone
participates in; use RRP.
4. Simplify operations & menus.5. Rebalance the role of the gotcha Inspectors who currently are totally
counterproductive.
6. Quit giving away new products & diluting value.
7. Stick to proven basics (Original Recipe, COB) & new products that arent
capital/equipment intensive.
Business Strategies & ProcessesBusiness Strategies & Processes
(Contd)
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Survey results: Top Challenges & Suggestions (784 comments)
KFCC needs to understand the formula:
Franchisee success=KFC success
1. Be more realistic concerning facility actions in these tough economic times.2. Stop operating on gut feel & financially onerous remodels based on
international markets. Our reality is meeting North American customer needs.
3. Visit & spend more time in restaurants to better understand our business
environment, customers & restaurant business models/success factors.
4. Give us new U.S.- savvy leaders who understand our customers, & can workwith franchisees on a win-win basis, not foreigners who dont & cant.
Other Notable SuggestionsOther Notable Suggestions
Q.3: How can KFCC be more effective?
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Summary of top issues
Urgent, deep-rooted and multi-layered
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Whats broken: 2-way communications & information/data-sharing; alignment on business vision, goals, strategies & tactics; clear, effective & profitable Marketing & promo programs; bloated menus with too many new, unprofitable products; strong product & labor cost-management; rigorous new product testing before launch;
unrealistic & costly facility upgrades; relevant, cost-effective store-level training; fair & balanced Inspectors/inspections.
WhatWhats broken:s broken: 2-way communications & information/data-sharing; alignment on business vision, goals, strategies & tactics; clear, effective & profitable Marketing & promo programs; bloated menus with too many new, unprofitable products; strong product & labor cost-management; rigorous new product testing before launch;
unrealistic & costly facility upgrades; relevant, cost-effective store-level training; fair & balanced Inspectors/inspections.
Whats lacking: mutual trust & respect;
understanding of N. American customer & needs; external focus on customers & beating competition; cooperative problem-solving in lieu of legal recourse; leadership teamwork, cooperation & compromise; recognition of franchisees as key stakeholders, theirneeds, expertise & viewpoints;
top KFCC leadership credibility with franchisee
community.
WhatWhats lacking:s lacking: mutual trust & respect; understanding of N. American customer & needs; external focus on customers & beating competition; cooperative problem-solving in lieu of legal recourse; leadership teamwork, cooperation & compromise; recognition of franchisees as key stakeholders, theirneeds, expertise & viewpoints;
top KFCC leadership credibility with franchiseecommunity.
Business Strategy& Processes
ManagementStyle & Behavior
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Table of contents
Survey 2010 objectives, content, structure & rollout plan Survey results & analysis:
Response ratio & demographics Findings:
Information & Knowledge-Sharing Brand Strategy/Success Fostering One System & Trust Operational Execution/Excellence Profitability & Growth Top Challenges & Suggestions Summary of Top Issues
Partnership Effectiveness Scorecard Comparisons with 2007 & 2008 surveys Recommended actions
Appendix- Scorecard Committee members, 2010 survey questionnaire
& past survey results
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AKFCF/KFCC partnership scorecard
Information & KnowledgeInformation & Knowledge--SharingSharing
Brand Strategy/SuccessBrand Strategy/Success
FosteringFostering One SystemOne System & Trust& Trust
Operational Execution/ExcellenceOperational Execution/Excellence
Profitability & GrowthProfitability & Growth
PA
RTNERSHI
P
EFFEC
TIVNESS
2.72.7
1.81.8
1.61.6
2.32.3
1.41.4
5 Effectiveness Factors5 Effectiveness FactorsAverageAverage
Scores*Scores*Average OverallAverage Overall
EffectivenessEffectiveness
1.91.9ActionAction
PlanningPlanning
30* Not weighted
HighlyIneffective
HighlyEffective&Target
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Score comparisons:
Years 07, 08 and 10
Spring 2007Spring 2007 Communication: 2.6
Innovation: 2.5 Training: 1.9
Profitability: 2.3
KFC Brand Value: 2.3
Fall 2007Fall 2007 Communication: 2.2
Innovation: 2.1 Training: 1.9
Profitability: 1.7
KFC Brand Value: 1.9
Fall 2008Fall 2008 Communication: 2.3
Innovation: 1.9 Training: 1.9
Profitability: 1.7
KFC Brand Value: 1.7
Winter 2010Winter 2010
Information & KnowledgeInformation & Knowledge--SharingSharing
Brand Strategy/SuccessBrand Strategy/Success
FosteringFostering One SystemOne System & Trust& Trust
Operational Execution/ExcellenceOperational Execution/Excellence
Profitability & GrowthProfitability & Growth
2.72.7
1.81.8
1.61.6
2.32.3
1.41.4
CommunicationCommunication
KFC Brand ValueKFC Brand ValueInnovationInnovation
TrainingTraining
ProfitabilityProfitability
CommunicationCommunication
31
55Target
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Table of contents
Survey 2010 objectives, content, structure & rollout plan Survey results & analysis:
Response ratio & demographics Findings:
Information & Knowledge-Sharing Brand Strategy/Success Fostering One System & Trust Operational Execution/Excellence Profitability & Growth Top Challenges & Suggestions Summary of Top Issues
Partnership Effectiveness Scorecard Comparisons with 2007 & 2008 surveys Recommended actions
Appendix- Scorecard Committee members, 2010 survey questionnaire
& past survey results
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Key concerns and 4 indicated actions-KFCC
33(Contd)
Rebuild TrustFranchisee concerns:Lack of trust in leadership. Lack of recognition of franchisees core role, knowledge & expertise- Too muchtop down, condescension, arrogance, lack of listening, understanding, bullying.63% dont believe that financial data, used to make business decisions, is shared in an open & effectivemanner. 71% dont believe that the current brand vision & strategy are clear. 84% dont believe thatfranchisees & KFCC leaders work jointly, in a spirit of trust & mutual respect, toward brand growth &success. 80% dont believe that franchisees & KFCC are responsive to each others concerns- not enoughgive & take on KFCCs part. 74% of franchisees dont believe that healthy debate & two-way dialogue isoccurring between franchisees & KFCC.
Action:Top KFCC leadership needs to rebuild the trust & credibility theyve lost with all the franchisee community.KFCC Leadership needs to demonstrate leadership with honor & integrity. KFCC needs to listen to, respect& trust franchisees knowledge, expertise & viewpoints.
Quit bullying, bulldozing, attacking & policing. This is a partnership, not a dictatorship. Drop the old school
management techniques.
Listen to the voice & ideas of franchisees & support them.
Create a climate where honest exchange of ideas are encouraged; more transparency. More & bettersharing of information & data- financial, marketing, facilities. Provide straight answers to questions & stopdancing around the issues & data.
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Key concerns and 4 indicated actions-
KFCC
(Contd)
New Products
Franchisee concerns:Too many new & unprofitable products are killing bottom line.
71% feel the brand vision & strategy are unclear. 80% believe that the new products & promotions areunprofitable. 83% dont believe we have a strong marketing calendar that will drive sales growth. 81%dont think that KFCs product development process provides a pipeline of innovative & cost-effectiveproducts.We are making quick product changes, but some are too quick, not thought out enough, &/or are not theright changes we should be making. NCAC needs to get its act together & not simply sit back & blame
KFCC for poor products.
Action:Need much better process & discipline prior to new product launches. A more disciplined approach isneeded than is currently followed. Adopt & follow the Restaurant Ready Process. Early Franchiseeparticipation is essential to help ensure all aspects of a specific promotion get a green light, with no
backtracking, & to increase the odds of a successful product launch.More rigorous product testing before launches is required. Red Lights must be adhered to. EmotionalGreen Lights are very risky. Franchisees should be involved throughout the development process.Last-minute, up-or-down franchisee votes are very risky.
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Key concerns and 4 indicated actions-KFCC
(Contd)
Operational Excellence & Training
Franchisee concerns:Only about one-third of respondents believe there are currently productive ways to share information & bestpractices & that information about the brand is communicated & distributed in a timely & effective manner.Less than half (48%) believe that sufficient knowledge, resources & support are provided to achieveoperational goals & objectives.Less than half (46%) of franchisees believe that operational & performance standards are clear & reasonable& that they are consistently applied & executed on a nationwide basis, including inspection standards.KFCC needs to get their vindictive Inspectors off our backs. Inspections need to be fairer & more balanced.Inspectors sole mission appears to be to support KFCCs agenda of putting franchisees out of business to
gain more control.60% do not believe that training is reliable, accessible & cost-effective. Although the move towards digital,on-line training appears, on the surface, to be a good idea, KFCC has done a very poor job of providingquality, bug-free training for the monthly fee it charges franchises. Most restaurants have a very limitednumber of computers to support training initiatives. 60% dont believe that training is reliable, accessible &cost-effective.
Action:Improve availability of tools, knowledge, resources & support, incl. reliable, cost-effective & accessibletraining. Improve cross-system sharing for sharing best practices.
Training needs to be accessible to all Franchisees, easy to use & reliable. Learning Zone should be free, tothe entire system, so we can Step Change operations at every store & more effectively deliver customer
service.35
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Key concerns and 4 indicated actions-KFCC
(Contd)
Business ModelFranchisee concerns:Business is not profitable. Overly-rigid upgrades not cost-effective & require urgent attention.
82% of franchisees dont believe that we are doing all we can to improve business profitability.
Many are hurting. 63% dont believe that financial data, used to make business decisions, is shared in anopen & effective manner. Overly-rigid upgrades are not cost-effective. 84% dont believe that new builds& remodeled restaurants are cost-effective.
Action:Care about the business growth & success of franchisees, which clearly isnt the case now.Jointly identify initiatives directly aimed at improving both KFCC & franchisee profitability.
Identify processes & joint actions to ensure cost-effective builds & remodels, incl. development ofinnovative products & promotions. Develop profitable marketing & promotional programs that clearlyadd to bottom line. Include franchisee input in preparing the business case.
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AKFCF actions going forward
Remodels & new builds- Sponsor AKFCF facilities council to share
best practices & cost savings ideas for remodels & new builds to helpcalibrate ROI.
Information exchange- Develop process, whereby local advertisingco-ops can share information on new products & promotions, under
direction of Larry Light & Joan Kiddon.
Training- Franchisee developed, or recommended, trainingprograms to be used at regional meetings, or as webinars- programs
such as Harmans 7-Steps to Margin Improvement.
37
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Table of contents
Survey 2010 objectives, content, structure & rollout plan Survey results & analysis:
Response ratio & demographics Findings:
Information & Knowledge-Sharing Brand Strategy/Success Fostering One System & Trust
Operational Execution/Excellence Profitability & Growth Top Challenges & Suggestions Summary of Top Issues
Partnership Effectiveness Scorecard Comparisons with 2007 & 2008 surveys Recommended actions
Appendix- Scorecard Committee members, 2010 survey questionnaire
& past survey results
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Balanced Scorecard Committee members
Committee Chair:Committee Chair: Joan Bowling
Committee Members:Committee Members:
Keith Cole
Joe Kendall
Mary Leonida
Mark Steinke Justin Stewart
Wen Wagstaff
Survey Admin. & Support:Survey Admin. & Support: Debbie Newton
39
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2010 survey questionnaire
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Section 1: Tell Us About You
How many restaurants do you operate?
More than 15
Between 5 and 15
Less than 5
Which regional association do you belong to?
Southern California
Northwest
Upper Midwest
Southwest
Great Lakes
Southeast
Northeast
(Contd)
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2010 survey questionnaire
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Section 2: Rating Scale, Topic Areas and Statements
Information and Knowledge-Sharing
Financial data, used to make business
decisions, is shared in an open and
effective manner
Information about the brand and
operations is distributed in a timely
and effective manner
There is a productive way to share
information and best practices amongKFCC and franchisees
Franchisees have the information and
know-how they need to be successful
Brand Strategy and Success
KFC product development provides
us with a successful pipeline of
innovative and cost-effective products
We have a strong marketing calendar
that will drive sales growth
Our system responds promptly and
effectively to act on and addresscustomer issues and needs
The brand vision and strategy are
clear to the system
(Contd)
1 - Strongly Disagree2 - Disagree3 - Neither Agree Nor Disagree4 - Agree5 - Strongly Agree
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2010 survey questionnaire
42(Contd)
Section 2: Rating Scale, Topic Areas and Statements
Fostering One System and Trust
Healthy debate and two-way
dialogue occurs between KFCC
and franchisees
Franchisees and KFCC are
responsive to each othersconcerns
Franchisees and KFCC leaders
work jointly in a spirit of trust
and mutual respect toward brand
growth and success
Operational Execution/Excellence
We are effectively leveraging
technology and working towards
continual improvement and simplified
operations
Training is reliable, cost-effective and
easily accessible to franchisees,
managers and team members
Relevant tools- knowledge, resources
and support- are provided to achieve
operational goals and objectives
We consistently execute on our
operations and performance standards
on a nationwide basis
We have clear operations and
performance standards for our
restaurants
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2010 survey questionnaire
43
Section 2: Rating Scale, Topic Areas and
Statements
Profitability and Growth
Products and promotions, that were rolled out
nationwide this year, were profitable for your
organization
Current business plans for new builds and remodeled
restaurants are cost-effective
We are doing all we can, as a system, to improve the
profitability of the business
Section 3: Top Challenges andSuggestions
1. What is the biggest challenge thatfranchisees and KFCC need to addresstogether?
2. How can franchisees and franchiseorganizations be more effective?
3. How can KFCC be more effective?
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Spring 07 survey results
BSC
MEASURE WEIGHT Target AVERAGE
COMMUNICATION 20% 2.6
Communication to franchisees that is timely, accurate and 100% focused on domestic KFC brand7% 5.0
3.1
KFCC support of regional meetings and AKFCF convention 5% 5.0 2.9
Share financial information 5% 5.0 1.9
Share 2N1 financial information/best practices 3% 5.0 1.6
INNOVATION 25% 2.5
Simplify operations (especially back of house) 10% 5.0 2.2
Appeal to the younger generation, both as customers and employees10% 5.0
2.5
Healthy products that are profitable 3% 5.0 2.0
Regional products 2% 5.0 1.9
TRAINING 25% 1.9
KFCC support franchisees with fully staffed trainers and relevant materials.20% 5.0
1.7
Constructive CER evaluations and Champs scores used for training purposes. 5% 5.0 2.1
PROFITABILITY 30% 2.3
Sustain Sales and Transaction Growth 10% 5.0 2.5
New Products that fit a realistic food and paper cost 10% 5.0 2.5
Lower Building and Equipment Costs 7% 5.0 1.8
Cost shifting to franchisees 3% 5.0 1.9
KFC BRAND VALUE 100% 2.3
N= 178/539 (33%)
44
8/8/2019 Building Future Success Survey Report (April '10)
45/46
8/8/2019 Building Future Success Survey Report (April '10)
46/46