Instilling owner motivation in employees

Most business are capable of at least 10% extra performance. The key is motivating the right individuals. Many businesses can learn from Flight Centre’s experience.

Most Australian networks rely too heavily on remuneration incentives to motivate employees. Unfortunately, incentives generally fail to produce the desired outcomes because they do not cause a change in the employee’s underlying behaviours. Having “skin in the game” is the key to driving changed behaviours. In franchised businesses, franchisees have considerable skin in the game and commonly achieve at least 20% higher sales than company store operations. However, franchising is not the right business model for all businesses and there are certainly alternatives.

DC Strategy’s “Business Associate” model, a derivative of the more common debenture model underpinning Flight Centre’s success over the last twenty years, is one such alternative. Eyewear giant Luxottica and Run Property are using DC Strategy’s Business Associate model to attract and retain better quality operators while still retaining a company owned model. Importantly, the model has also been developed to avoid the complexities of offering financial instruments under the Corporations Act 2001.

Why a Business Associate?

• Increase profit with an operator who has “skin in the game”;
• Increase staff tenure; and
• Attract and retain better quality operators.

 

DCS Consulting is your business growth specialist. For more information in relation to our quality business analysis, please contact:     

Level 5, 530 Collins Street,
Melbourne VIC 3000 Australia
growth@dcstrategy.com
+61 (0)3 8102 9200