Lake_wobegon I read with interest fellow IowaBiz author Victor Aspengren’s article on Forget the Ratings in conducting annual performance reviews.  Victor points out that most companies use subjective rating systems in their performance reviews which leave everyone in the company, supervisors and employees alike, dreading the annual review process.

What happens next is what I call the Lake Wobegon effect:  Every employee becomes "above average" because supervisors are unwilling to hold employees accountable.  Then when it comes time to discipline or terminate employees companies are often shocked when I tell them it may be difficult to discipline or terminate an employee because of their employee evaluations.

Employee evaluations are valuable proof in an employment lawsuit.  Make sure poor performance is properly documented.  Otherwise, the judge or jury will not believe you when you say the employee performed poorly but all their evaluations are excellent.  You should conduct the evaluations on a regular basis, usually at least once per year.  And Victor’s ideas on creating a dialogue with your employees is on the mark as long as that dialogue is open, honest and holds employees accountable for their performance.

See also:  Considerations for Your Performance Evaluation and Employee Evaluations are Critical to Firing Decisions.

photo on flickr by Krista76

Over on the Iowa Law Blog I discussed the fact that the number of lawsuits is down this past year for U.S. businesses.  The statistics are based upon a study from the international law firm of Fulbright & Jaworski.  But you need to read a little deeper to find a more intriguing statistic:

The survey showed that companies based in the Midwest settled more often than those in other parts of the country.

One surprising statistic is that smaller companies were actually less willing to settle their cases than mid-cap or billion dollar firms.

But no surprise that Midwest companies are more willing to settle.  My experiences have been that most Midwest lawyers, particularly here in Iowa, will work hard to get cases resolved.  Perhaps that is another reason why Iowa is not considered a litigious state.

As regular readers of this blog know, I am engaged in a never ending search for blogs that present franchise opportunities in a fair and objective manner.  All too often franchise related sites are merely promotional pieces. 

FranchisePick is a site worth checking out.  Yes, there are some promotional pieces on the site.  But franchise marketing veteran, Sean Kelly, has done an excellent job of presenting worthwhile information on several franchises.   

For example, recent posts on 30 minute workout franchises are hard hitting and full of information.  The experiences shared on the site are invaluable for anyone who is interested in making an investment in a franchise.  Sean likes to have fun, including making fun of my name, but he is on a serious mission to expose unethical practices in the franchise industry and encourage best practices.

Sean has a number of other sites covering the franchise industry including FRANBEST, Franchisor Marketing, and Franchisee Marketing.  He is also the President of IdeaFarm which specializes in helping franchise companies achieve growth through brand development and innovative marketing techniques.

Thanks to Sean for reaching out to me and exposing me to his sites.

 

West Des Moines financial planner Art Dinkin’s story shows that identity theft can happen to anybody.  Be sure to read the comments for some helpful hints in what to do if identity theft strikes you.

Read my previous post if you are interested in Tips to Protect Your Business and Customers from Identity Theft.

 

First with Drew McLellan on marketing, and now with Shirley Poertner on leadership, the IowaBiz.com free breakfast series is off to a fast start.  Shirley spoke yesterday about accountability in the workplace.  A concept that is frequently missing in many organizations.

Shirley says we have fallen into a "blame" society. 

  • If you spill hot coffee in your lap while driving . . . sue McDonald’s.
  • If you invest money in a high risk portfolio and lose . . sue your broker.
  • If your accountant misses the "S" Election . . . blame the lawyer. (Shirley really didn’t say this one I just needed to poke fun at Joe one more time). 

This notion of blaming others permeates the workplace.  "It’s not my fault" becomes the rallying cry of employees and supervisors alike. 

So how do we hold others accountable in the workplace according to Shirley? 

  1. Set clear expectations.  You may think you have set clear expectations but would your employees say the same thing?  You might be surprised by the answers.
  2. Consider Both Motivation and Ability.  Your initial thought may be that your employees are lazy or just want to make your life miserable.  Have you thought about other factors that may be influencing behavior?  What about whether the employees have the skill and knowledge to complete the task?  Is there a bureaucracy in your organization preventing work from getting done?    
  3. To Hold Others Accountable:  Skillfully Handle the Hazardous Half Minute. 
    • Describe the gap.  Make a statement about what you expected and what occurred.  Ex.  You made a commitment to get the project done by Friday.  It’s the following Wednesday and the project is not completed.
    • End with a question.  What happened?
    • Then listen.  What’s going on?  Is it about motivation or ability or both?

These strategies for accountability in the workplace will not only provide you happier employees and greater productivity but it may also help you reduce workplace litigation.  Treating employees with respect and effective communication are two of the cornerstones on how to avoid lawsuits from employees. 

I have written in the past about Iowa Franchise Law and Territorial Encroachment.  Franchisees generally want an exclusive territory that is protected from encroachment by other franchisees or the franchisor’s company owned stores.  But have you considered the impact of Internet retailing by the franchisor or other franchisees?

Be sure to review the territory provisions in the franchise disclosure document and franchise agreement with an eye toward whether the franchisor or franchisees are able to conduct Internet retailing.  In many instances franchisors will have a Web site but franchisees are not permitted to conduct online retailing.  While I am a big believer in the Internet for marketing and sales you will possibly suffer the consequences if a franchisor has a strong Internet sales presence.  Do you really have an exclusive territory if the franchisor conducts sales online?

Franchisors must also balance the possibilities of territorial enforcement with the need of franchisees to conduct online retailing.  This is where local search marketing comes into play.  Are there opportunities for franchisees to compete fairly online without cannibalizing each other? 

There are no easy answers when it comes to franchise Internet retailing but it should be a part of your decision making process in determining whether to buy a franchise.

Photo on flickr by aranarth

At this past week’s ABA Forum on Franchising I attended an insightful presentation with Michael Levitz, Kenneth Milner and Robert Purvin.  Purvin is from the American Association of Franchisees and Dealers which has some helpful tips and resources on its Web site to evaluate franchise opportunities.

While the presentation covered many areas of successful franchisee representation the concept of assembling a team to evaluate the franchise was probably most important.  In addition to the franchise lawyer, the presenters said successful franchisees will also contact the following:

  1. Accountant – to examine the financials of the franchisor, costs and expenses to buy the franchise and financial projections of the business.
  2. Real Estate Agent – to help you decide which location is best for you.  It is a mistake to rely completely on the franchisor in this context.  Most franchisors will be from out of the state and probably do not have a complete handle on the real estate market or trends in the community.
  3. Marketing Professional – evaluate the marketing plan of the franchisor, develop your own marketing plan and assess whether the franchise opportunity is right for your region of the country.

I would also add that each prospective franchisee should also have a banker and an insurance agent to help them along in the process.  Assembling the right team is critical to success.