Scorecards allow franchise owners and managers to keep tabs on certain metrics or key performance indicators (KPIs). Scorecards organize, store, and display information from multiple data sources, so stakeholders can see at a glance how their metrics relate, change over time, or compare to a target or goal.
Scorecards are useful in all business settings, but they are a vital tool for franchisors. Managing franchisees can be a challenge, especially as you continue to grow and expand to further away locations. Scorecards allow franchisors to quickly and effectively track financial and operational KPIs, even if there is a lot of physical distance between them and their franchisees.
Benefits of a Franchise Scorecard
Peter Drucker, a prominent management consultant, is attributed with saying “If you can’t measure it, you can’t improve it.” Franchise scorecards allow franchisors to measure all of their key data points so they can improve their business. Here are some of the other benefits that come with implementing a franchise scorecard:
1. Encourage Communication and Collaboration
Scorecards can serve as a bridge between franchisors and franchisees by providing actionable reports and metrics that can help drive strategy and pinpoint areas in need of improvement or deserving of praise. If you find that something is working for one franchisee, you can apply that across the board.
2. Improve Access to Data
Some franchise scorecard software solutions allow you to assign different permission levels to various members of your organization. That way, everyone can have access to the data they need in order to do their jobs effectively, and you can still maintain privacy over confidential information. Franchise scorecards can be viewed on desktop or mobile, so you can view your KPIs anytime, anywhere.
3. Motivate Franchisees
When everyone has access to public dashboards and scorecards, franchisees are held more accountable for their metrics. They can also compare their performance to multiple other franchise locations and devise a plan or strategy for how to improve their rank on the leaderboard.
4. Save Time
When you manually compile data to create reports, the numbers are often outdated by the time the report is complete. Scorecards allow you to not miss a beat, and get the most accurate up-to-date data possible. They can connect to multiple data sources to completely automate your reporting and analytics. They are also customizable, so you can organize and view your franchisee data in the optimal way for you.
5. Better Decision-Making
Scorecards allow franchisors to take a data-driven approach to your decision-making. They can “keep score” of important metrics to see if they are on pace to meet a goal or deadline. If not, franchisors can adjust their business strategy or fine-tune their processes to better align with their objectives.
Choosing the right tool
With so many franchise management and data visualization tools on the market, it can be difficult to determine which is right for you. Here are some key features to look for in a franchise scorecard software:
Scorecards and dashboards should provide a dynamic experience. Instead of just providing static information (like a table in Excel), interactive scorecards allow viewers to filter data, interact with charts to see changes over time, and drill down to see the numbers driving your metrics. With an interactive component to your scorecard, you can get as much or as little detail on specific metrics as you want.
You want to ensure you find a solution that prioritizes protecting your confidential information and sensitive data. Look for software that offers built-in security and permissions. With our role-based permissions, you control which individuals and groups can access, edit or view the dashboards. You can also choose how your scorecards are hosted, behind your own firewall or in our secured Cloud.
3. Ease of Use
If you are not a programming whiz or data guru, but still want to create a franchise scorecard, you should be able to! Look for tools that allow you to easily create beautiful scorecards to engage and enlighten your audience. We offer a drag-and-drop dashboard builder that allows you to create colorful, customizable, and interactive charts and graphs that bring new life to your disorganized data. You can even include your company logos, images, videos, maps, and more to craft unique dashboard reports and presentations.
Want to learn more?
Are you interested in creating a scorecard to better manage your franchise’s data? Click here for a free, personalized demo of our unique franchise dashboard software.