They Don’t Know – That They Don’t Know Department of Management E.J. Ourso College of Business Administration Louisiana State University Baton Rouge, LA 70803, USA Department of Information Systems and Decision Sciences E.J. Ourso College of Business Administration Louisiana State University Baton Rouge, LA 70803, USA

Learning Operant Conditioning – When learning occurs as a consequence of behavior we call it operant conditioning. Most of our workplace behaviors are operants. Social Learning Theory – Albert Bandura (1977), of Stanford University, stipulated that we learn by observation and imitation of others in a social situation or social learning experiences. Situated Learning Theory – Lave and Wenger (1991) claim that learning is located or “situated” within everyday work experiences

HOW TO INFLUENCE OTHERS Group Behavior Individual Behavior Motivation Attitudes Knowledge

BEING A PROFESSIONAL Beginner - Learn to do it - Learn to do it Novice - Practice DOING IT - Practice DOING IT Advanced - DO IT - DO IT Master - Teach others to DO IT - Teach others to DO IT Professional - Be the Best You can Be - Be the Best You can Be

Steering Power?Pedal Power? Which One is More Important?

Steering Power?Pedal Power? Franchisor?Franchisee?

Training The franchisor needs to initially, and continually, train the franchisee –Materials, text books, systems manuals, training camp, sales training, marketing, business training, The franchisor and the franchisee need to work together, and develop mutual trust and respect. –Trust comes from experience, respect develops from trust Need to move past just operations training to business principle training - McDonalds.

Franchisees: working with other franchisees Reviewing another’s performance ratings and activities Spending a week together helping each other.

Franchisee Focus Groups –Generally set up by the franchisor to encourage communication, ingenuity, and responsiveness from the franchisees. –12 – 20 members meeting together to discuss, markets, management, promotion and activities. –Different geographic areas. –

Education & Training Programs Pre-store opening training Your Franchisee Organization (YFO) Similar to the Young Presidents Organization (YPO) the YFO may meet three to four times a year with 12 – 15 franchisees meeting together for two days to discuss their best practices, successes, achievements and failures Annual Conference training Regional training programs Headquarters Executive training Continuous franchisee training

Education & Training Programs cont. Employee training Franchisees trained by franchisees Government training - Malaysia – Many nations have identified franchising as a preferred method for economic growth. The Prime Ministers office of Malaysia asked for, and received, valuable information about franchising as a tool for economic growth.

Conclusions They Don’t Know – That They Don’t Know This is our dilemma. Many of us do not understand that we do not know many factors of our business or our franchising systems. Almost no franchising company, whether franchisor or franchisee, is immune from the lack of knowledge. The reality is that the franchising business must increasing cope with new knowledge, information, cultures, and experiences. The fact is that executives are not aware of the tremendous impact that additional knowledge and education have on the vision and success of their businesses.

Franchise Organization Chart Prior to Sale of First Franchise

10-40 Units STAFF Accounting Marketing Purchasing Personnel STAFF Accounting Marketing Purchasing Personnel