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Ducks in a Row: TCBY vs. Microsoft

by Miki Saxon

http://www.flickr.com/photos/jessicamullen/3672695368/

Common wisdom says that the larger a company the harder it is to get management to listen, especially when it goes against fundamental corporate practice.

Franchises are even worse and the longer they’ve been around the less they are likely to listen to a franchisee, let alone a new one.

But when they do the result can go way beyond the most optimistic prediction.

The frozen-yogurt giant credits the 32-year-old’s success with pushing them to embrace the self-serve model – a move that has reinvigorated the company and led to exponential growth.

TCBY had been around 30 successful years when Samuel Batt was approved for a new franchise in 2010.

He grew up eating TCBY, but wanted to incorporate self-service—enabling customers to choose flavors, toppings and quantity of each—in his new franchise.

Sounds old hat today, but DIY was just gaining traction in new venues back then.

Long story short; the powers-that-be said yes, as long as he kept the branding.

And within three weeks, his location was one of the top-five most profitable franchises in the country. (…) About half of TCBY’s nearly 500 franchises across the country have embraced the new model to great success, each doing from 25 percent to 200 percent better in sales than with the traditional model, Brian Mooney, director of operations for the Eastern U.S., said.

Management could have just as easily said no.

Compare TCBY’s attitude to Steve Ballmer’s at Microsoft; they are close to the same age—TCBY is just six years younger than Microsoft.

In 2007 Ballmer said, “There’s no chance that the iPhone is going to get any significant market share.”

He didn’t listen to either his own people or the industry when they said that mobile and the cloud were the future—or maybe he was in denial.

But as I recall, Bill Gates didn’t listen when staff tried to tell him that the Internet was going to be really, really BIG.

Bosses at every level, not just CEOs, have a choice.

They can choose to listen and be flexible—or not.

Flickr image credit: jessica mullen

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