![Contact Information Lawrence Appell & Associates Office: 480.659.5143 Cell: 818.219.4993 E-mail: [email_address]](https://image.slidesharecdn.com/improvingmultiunitoperationsanintro-12979577667359-phpapp02/85/Improving-Multi-Unit-Operations-An-Intro-27-320.jpg)
Improving Multi Unit Operations An Intro
- 1. IMPROVING PERFORMANCE IN MULTI-UNIT OPERATIONS: An Introduction to Lawrence Appell & Associates LAWRENCE APPELL PRESIDENT LAWRENCE APPELL & ASSOCIATES Lawrence Appell & Associates
- 2. About Us Lawrence Appell & Associates is a performance improvement consultancy for multi-unit, direct-to-consumer service businesses. The firm’s capability is the result of 35 years of experience in franchised and company-owned multi-unit operations across a range of industries for companies as large as $110MM and as small as $1MM. Clients of the firm can expect clear guidance to: Increase revenues Increase volume Increase revenues per location Reduce expenses as % of revenue Increase variable margin Increase contribution margin per location Increase employee retention and satisfaction Lawrence Appell & Associates
- 3. Target Audience Lawrence Appell & Associates Organizations, or regions/divisions of larger organizations, with five to 500 geographically dispersed units performing the same service for an identified consumer audience Annual revenues >$2 million >50 Employees An identified or perceived need to reverse negative trends or an opportunity to grow through new unit count or by increasing volume/profits per unit Open-Minded leadership team
- 4. Services Provided Lawrence Appell & Associates Outsourced Chief Strategy Officer Appell Operating System (AOS) Implementation Operational Studies One-Off Projects
- 5. About Lawrence Appell Lawrence Appell is a domestic and international consultant to multi-unit, direct-to-consumer service businesses. He provides operational guidance for turnarounds, growth businesses, and start‑ups in the for-profit education/training, health, well-being and fitness and restaurant industries. Mr. Appell is often referred to as the CEO’s Trusted Strategy Advisor due to his unique combination of skills and experience. Among his areas of expertise are operations management, business planning and analysis, new service development, team leadership, performance management, process and productivity improvement, and budgeting and forecasting. In his management career he led large geographically dispersed company-owned and franchised operations to grow revenue, profit and customer satisfaction. Mr. Appell is the founder and President of Lawrence Appell & Associates (LAA); a consultancy that provides business improvement solutions to operational challenges for multi-unit, small to mid-sized businesses (>$2MM in revenues) around the globe. Outside the U.S. he has worked extensively throughout Europe and Asia. Prior to founding LAA, Mr. Appell held senior management positions for major franchised and non-franchised brands such as Weight Watchers, Pritikin, Sylvan Learning Centers, La Petite Academy and Mathnasium. Over the course of his management career Mr. Appell created and served as President of Westlake Management Co, LLC, a boutique investment firm which owned and operated both franchised and self-owned businesses. Holdings included Jamba Juice (two locations in Los Angeles), Mydashi Japanese restaurants (three locations in the San Francisco bay area), Pangea Wraps (Los Angeles) and Nic’s (a fine dining restaurant in Beverly Hills). Mr. Appell serves on the board of directors for InterSchola, LLC. (www.interschola.com). InterSchola manages on-line auctions for school districts in the U.S. who wish to retire surplus assets at the end of their financial life cycle. InterSchola returns a portion of each auction to the school district’s general fund. Mr. Appell has a B.A in Psychology from the City University of New York and a M.S. in Counselor Education from St. John’s University (NY). He resides in Scottsdale, Arizona and can be reached at 818.219.4993. Lawrence Appell & Associates
- 6. Sample Career Achievements For a For-Profit Education Company: Developed and implemented a strategic plan to reverse a three year revenue decline. Reduced the number of declining properties from 65% of portfolio to 40% in nine months. Increased EBITDA 65%. Completed a customer segmentation analysis leading to new program, promotional and pricing. Increased revenue per customer by 3-4% per year. Increased variable profit per classroom 15%. Increased sales conversion rates from prospects to tours to 41% from 35% in two years and increased overall conversion rates from prospects to enrollments by 35%. For a Start-Up Health Club Concept: Negotiated leases at below market rates for 12,000 square foot facilities, designed space plans, managed construction and purchased equipment while maintaining the business plan budget and timetable. Designed work processes, recruited and trained professional and administrative staff. For a Major Weight Loss Company: Developed and implemented a long‑range strategic plan to improve company operations. Revenue increased from $55 to $100MM; Operating Income increased from $16 to $23MM. Established and implemented a strategy to manage growth via leased and sub‑leased locations. Total number of locations grew by 350 in four years from 1,100 to 1,400 (450,000 square feet leased). Increased average revenue per location by 62%. Lawrence Appell & Associates
- 7. Sample Client Descriptions Serve as Chief Strategy Officer and provide project services for a chain of dental offices seeking to expand throughout the Southwest. Serve as Chief Strategy Officer services for an on-line auction seller of surplus merchandise for school districts that has returned $10MM in funds. Serve as Chief Strategy Officer for a trade newspaper seeking to expand beyond the southeast via franchising Serve as Chief Strategy Officer for a chain of pre-schools in Chennai, India seeking to expand throughout India via franchising. Serve as Chief Strategy Officer for a multi-unit franchisee of a national for-profit education tutoring service. Lawrence Appell & Associates
- 8. Our Process (How We See and Think About Organizations) Lawrence Appell & Associates Operational Imperatives Desired Outcomes + = Strategic Foundations
- 9. Examples of the Process in Use Lawrence Appell & Associates
- 10. Sample Strategic Foundations Statements Lawrence Appell & Associates VISION STATEMENT Using the best information available at any point in time and good judgment borne of personal maturity and professional experience; we, the management and associates of the Division, will make decisions every day regarding the early childhood education and childcare needs of our enrolled families and operate our schools at levels of operational excellence that create customer defined levels of satisfaction and perceived value for money while achieving ever increasing levels of utilization; market penetration and profit. VALUES STATEMENT 1- The customer comes first in everything we do 2- We all stand in line to serve the customer, if you ’re not serving the paying customer you are serving a colleague (aka internal customer) who does. 3- We are motivated by a desire to improve the customers quality of life 4- We are honest 5- We work hard 6- We learn from our collective experience and use that experience to continuously improve the delivery of our service at higher margins. 7- We have fun 8- We are goal oriented 9- We do what we say we are going to do (results count) 10- We communicate and coordinate within the division and beyond STRATEGY Develop the best team Take back the neighborhood WOW our customers Find a better way MISSION To be recognized as the leading provider of pre-school services in the United States by 2014
- 11. The Customer Imperative Lawrence Appell & Associates Understanding Consumer Needs and Wants Quality/Profitability Tradeoffs The Service Environment Designing Customer Interface Points Service Provider Standards Service Provider Training Customer Perception of Value Customer Willingness to Recommend to Others Unit Economics
- 12. Sample Customer Satisfaction Survey Questions Lawrence Appell & Associates
- 13. The People Imperative Lawrence Appell & Associates Job Descriptions The Organization Chart today and as it will look in the future Managing the dilemma to have the right people in the right place with the right skills at the right time Designing an organization specific reward and compensation program
- 14. The Process Imperative Lawrence Appell & Associates How we do what we do in such a way that we can say this is the XYZ Company Way Recognizing that everyone serves a customer- either internal or external
- 15. Sample Process Map Lawrence Appell & Associates
- 16. The Data Imperative The Balanced Scorecard- A Data Management System for the 21 st Century To Drive Decision Making The Customer Leg or Perspective The Financial Leg or Perspective The Internal Business Process Leg or Perspective The Knowledge, Education and Growth Leg or Perspective Lawrence Appell & Associates
- 17. Sample Section of a Balanced Scorecard Across Multiple Units Lawrence Appell & Associates
- 18. Indexing Metrics Across Units to Identify Areas of Improvement Opportunity Lawrence Appell & Associates
- 19. Outlier Identification Lawrence Appell & Associates
- 20. Sample Local Unit Improvement Initiatives Lawrence Appell & Associates
- 21. Services Provided: Chief Strategy Officer (CSO) Lawrence Appell & Associates A CSO's role is to continuously examine the company as a whole and to provide guidance to the CEO on critical business questions like: Should we be developing a new service or improving an existing service? When should we move into a new market? What companies should we consider acquiring? What is the best location for our service? What are our competitors doing? Why is one region performing better than another? What is the proper role of technology in our business? Should we franchise? The CSO must deeply understand what makes the company successful and how it will continue to be successful in the future. Then they must translate that knowledge into the ability to judge specific activities the company is undertaking, and ensure all of those activities are helping the company be successful. The key factor and the major value-add of the CSO is the ability to help the CEO ensure that decisions are in alignment with company strategy. CSOs must be experts at working with people, because they will need to build alliances in order to get all the information they need, yet they must also ask hard questions and require that people make changes that help the company. He or she must be able to sort through and analyze a great deal of detailed information in light of a big-picture view of the business.
- 22. Outsourced Chief Strategy Officer (CSO) Lawrence Appell & Associates The outsourced CSO is the CEO’s trusted strategy advisor and is “on-call” for the CEO. Like the company’s attorney or accountant the outsourced CSO is knowledgeable about the company and can assist the CEO as needed. Unlike the company attorney or accountant the CSO is not billing by the hour but is retained. The outsourced CSO must become familiar with existing business plans and updated regularly on key performance reports including P&L’s and scorecards. The outsourced CSO and the CEO have a set time to formally meet each month. Meetings take place in person, on the phone or on Skype.
- 23. Services Provided: The Appell Operating System™ Lawrence Appell & Associates The Appell Operating System is a management process that engages the leader/owner of the enterprise and his/her senior management team to achieve a high level of functioning such that the enterprise is best aligned with and serves the needs of the customer. AOS is a multi-month process that requires a level of commitment The outcomes of the AOS process are a high-functioning senior management team that is capable of achieving target levels of revenue, profit, employee and customer satisfaction.
- 24. The AOS Implementation Process Lawrence Appell & Associates
- 25. The Role of the AOS Consultant Lawrence Appell & Associates
- 26. Other Services Offered Lawrence Appell & Associates Operational Studies From franchise feasibility studies to organizational diagnosis studies One-Off Projects Shorter term, well-defined projects
- 27. Contact Information Lawrence Appell & Associates Office: 480.659.5143 Cell: 818.219.4993 E-mail: [email_address]