Tuesday, May 02, 2006

We don't need no stinking documentation!

We don't need no stinking documentation!

Your business associates will appreciate
knowing about this newsletter.
Why not forward it to them n0w?

I am about finished with a new book designed to
help you:

* solve the problems of DIS-organization and

* create a sustainable business
organizational structure that works.

To get your FR.EE Chapter, go to


In my business, I have developed a lot of
documentation for Silicon Valley start-ups and
established companies. I've learned that:

* Many developers do not properly document
their own PRODUCTS,

* Many executives do not properly document
their own COMPANY, and

* Many employees do not properly document
their own WORK.

And many companies fail because employees are
"winging it" everyday. That's no way to succeed
against today's competition.

Have you ever noticed that most franchises
succeed while most start-ups fail?

What's the difference between a franchise and a

* A franchise uses a SYSTEM of documented
business processes that produce consistent
results for the franchisee and its customers!

* A start-up typically uses "key" people and
undocumented "tribal knowledge." (They don't
need no stinking documentation!)

Successful franchises document their business
processes so ordinary people can buy a turnkey
business that can hire ordinary mortals to do the
work of the business.

This way, the franchise becomes a SYSTEM for
delivering predictable results to their customers.

A tested and proven franchise SYSTEM provides
faster delivery, uniform service, higher profits,
plus the ability to serve more customers at lower

But, some franchises are not ready for prime

An acquaintance recently quit his Corporate
America job and bought into a start-up franchise
operation. You'd think, after they've opened
40-50 stores in the last 3 years, that they'd
have the opening process down pat.

But, it's taking too many months to open each
store. Why?

Well, here's what happens. Every franchisee must
go through a lengthy ordeal to open a store
because the franchisor has not eliminated
time-consuming stumbling blocks.

Their franchise manual lists many (not all)
things that must be done to open a store -- but
the manual gives no plan, system, or correct
sequence for doing them.

My friend tells me that the franchisor's home
office is good at answering questions -- but one
at a time.

In other words, every franchisee must stumble
over each problem, try to solve it, call the home
office, wait for an answer, then proceed to the
next unpredicted stumbling block.

"I don't have time!"

My friend said he has an option to open 5 stores
in his area.

I asked him whether he's documenting all his
problems and their solutions. "No, I don't have
time!" This means he must personally open every
store using knowledge he learned the slow,
expensive way. This will take 3-5 years.

I suggested that he write everything down so he
can have OTHERS open the next stores faster. "No

He doesn't get it. He paid a large franchise fee
to be stuck in yet another annoying, repetitive
"job." Except this job takes 12-16 hours a day
instead of 8.

This new franchise service idea seems like a
winner. But... unless someone takes the extra
steps to streamline and document their store
launching processes, a competitor will take the
idea, do it better and faster, and put my
acquaintance's franchise out of business.

"If you can't describe what you're doing as
a process, you don't know what you are doing."
-- W. Edwards Deming

HELP Profitable Venture Tactics help your

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Profitable Venture Tactics.

Your business and management colleagues will
thank you for being so thoughtful.

What did you learn today that you found most

How will you apply what you have learned at

Please email your comments to

Best Regards,

Mike Hayden, Principal/Consultant
Your partner in streamlining business.

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