How NOT to decide on a profile's effectiveness


I read an article in the latest QSRWeb magazine (you can read it here) that once again proves to me how little so many people that sell profiling tools really know. At least I hope it's that they're ignorant and not that they're trying to deceive.

It seems a company has come up with a "new" franchisee profiling and screening tool. One that supposedly uncovers the attitudes and values of a prospective franchisee.

There's no problem with that, right? Where I take exception is the methodology used to arrive at a benchmark score. Simply put, their method makes no sense. They state that to validate the benchmark, they give the profile to "several of the more successful existing franchisees of the business."

Seems to make sense, doesn't it? But if you think about, you don't need a degree in psychology to realize that profiling only successful franchisees tells you nothing useful. Yes, you know how they scored, but you have no way of knowing how their scores differ from unsuccessful franchisees!

If you don't profile poor performing franchisees, how do you know how the good differ from the bad? And even more important, how do you know that the profile even measures the characteristics and attitudes that are needed to be successful? Simply put, you don't. And there's no way to know unless you also profile poor performers!

I don't mean to single out the company in article because this kind of thinking is rampant throughout companies that sell franchisee or other selection profiles.

Unfortunately, I see this kind of thinking all the time. It's not only franchisors that are seduced by this supposedly easy way of finding out what the best people look like. This same tactic is used all the time for other positions as well. Sales people especially come to mind.

"Wouldn't you like to clone your best salespeople? Let us profile your best and you can base your hiring decisions on the outcome." Rubbish!!!!

I wouldn't mind this (unintentional?) deception so much, except for the fact that franchisors especially are making decisions that affect the life savings of innocent bystanders (franchise applicants).

If you make a decision based on a profile that's based on a benchmark arrived at by profiling only good franchisees, you're wasting your time and money. Plus, you may as well simply toss a coin. Your results will be about the same.

I wish these people that sold franchisee, sales, or any other kind of selection profiles would start using sound scientific principles when they're working with a company.

An offshoot of this attitude is the one about giving away one free profile as a way of determining how "good" the profile is. I ask you, what good does that do? Yes, you'll see how easy to use the profile is and what kind of report you'll get, but..... you still won't know if the profile has a hope in differentiating between good and bad performers.

That's why whenever we offer free profiles, it's ALWAYS with the stipulation that they be used to profile one good performing franchisee and one poor performing franchisee. How can you make a decision on a profile's effectiveness without seeing quickly whether the profile can tell you who is the successful franchisee?

If it can't, then why use it? But then, maybe that's why so many companies selling profiles work the way they do? They know they can't differentiate, so they do what they can to deflect attention from this fact. They find a way to "sell" you on using a profile based on a flawed concept.

What do you think? Leave me your comments, I'd love to hear from you.

Fred Berni
November 13, 2007

New Franchise

I appreciate all you have to say. But we keep coming up against the same brick wall. Being an emerging franchise with 2 franchisees plus our company owned franchise, we don't have the "pool" of franchisees to use this type of survey. The other side of that coin is, because we don't have the means to "profile" how do we go about getting the right franchisees. Our business is in-home dog training. It's a catch 22, you must love or at least really like dogs to do this, but that says nothing to the aspects of marketing and running your own business. We are finding this to be very frustrating. We do have an outside broker selling our franchises and the last candidate they sent over sure seemed to be great on Discovery Day but she has turned out to be a very negative, self-defeating franchisee!!!! HELP!

New Franchise

Hi Leila:
I understand your quandary. We've run into this same situation many times over the past 20 years. I see no disconnect between loving dogs and being able to run a business. Your franchise would never have even started if these were mutually exclusive.

I'd like to address your comment in reverse order. First, what are the characteristics that your broker is looking for? Are they screening based on "love of dogs"? Do they also look at the person's background and look for proof that the person can run a business?

One of the tough challenges faced by all franchisors in a service business is finding franchisees that walk that thin line between being entrepreneurial enough to go out and sell, and yet not so entrepreneurial that they won't follow your system.

Unfortunately, there's not a "perfect" answer to this. People strong in sales tend to lack the skills and mindset needed to handle all the detail and drudgery involved in running a business. And at the same time, folks that relish the detail and drudgery typically don't make very good salespeople.

So take a little time and clearly decide on what is most important to you in a franchisee. Decide whether you're looking for a salesperson, or someone to follow the system. They're not always the same.

I'll also reply by private e-mail.

Now for your first comment. With a properly developed profile, you don't need a "pool" of franchisees.

Franchisees in similar types of businesses are not that different from one another. So what works in one dog training franchise will work in another. Remember, we're not talking about personality here. Rather we've talking about attitudes. Things like positive attitude. Will they respect and trust the franchisor and follow their advice? Will they work consistently and intensely, even in the face of adversities that he/she may encounter as a franchisee? Will they act in an insensitive or uncaring manner?

Yes, the types of personalities vary from one company to the next, but the skills and attitudes needed for success don't. It's like the old saying heard so many times: "If you don't change your attitude, you'll never get anywhere."

Another way to look at profiles is to not think of them as the final decision in whether to accept a candidate. Use them as a guidepost. No tool should be given the final say. Just as finances can't be the sole criteria for whether or not to award a franchise to someone.

Have a DYNAMIC day!

Fred Berni