Au Bon Pain, an up-scale fast food cafe, was founded in 1977 and has since achieved successful growth in the quick food service industry. Currently, it operates 230 company-owned and franchised restaurants in the US and Asia. However, in 1986, the management of the company recognized their inefficiency and lack of effectiveness despite having more than ten years of experience. Co-founder Ron Shaich identified that the company was trapped in a "cycle of failure" and encountered difficulties in recruiting new staff for operational roles.
Pleasing and retaining qualified and dedicated professionals was becoming a growing problem, leading to a decline in customer satisfaction and sales at Au Bon Pain. Recognizing the need to address these human resource issues before they negatively impacted the company's overall success, the owners sought out Len Schlesinger to join their management team. They hoped that Schlesin
...ger's expertise in organizational behavior would help establish a system within the organization to boost sales and enhance quality by fostering employee ownership - both financially and psychologically.
Schlesinger and Shaich created the Partner/Manager program with a primary focus in mind. To test its effectiveness, they selected two Au Bon Pain stores: one located in a mall outside of Boston and another situated in a busy office building in downtown Hartford, Connecticut. By choosing these contrasting settings, they aimed to ensure that the program would work well across various types of establishments. The program had a duration of six months and compensation was primarily based on incentives tied to controllable profits. Each store participating in the experimental program would have both a partner/manager and an associate manager assigned to oversee and operate all aspects of the restaurant.
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two appointed individuals would be in charge of managing all aspects of the business, such as ordering products and supplies, maintaining cleanliness in the restaurants, recruiting and retaining employees, and ensuring customer satisfaction. Essentially, the partner/manager had full control over the success of their establishment. This program added value to Au Bon Pain's compensation system for high-level managers. The program resulted in increased pay for those who were promoted to managerial positions. This compensation included a fixed weekly salary along with a percentage of the store's controllable sales. It was evident that higher monthly sales translated to higher earnings.
Upon receiving this incentive, the managers became more motivated and engaged. However, they now faced the challenge of aligning other important aspects of their store. They needed to come up with a plan to increase customer appeal, retain a competent staff, and establish effective operating controls. Ultimately, their goal was to sustain the level of passion that was initially sparked. This task might prove difficult, as stated in the article Six Dangerous Myths About Pay, which suggests that this type of reward can undermine teamwork, encourage short-term thinking, and cause individuals to prioritize relationships and personal charm over performance. Nevertheless, the Partner/Manager program provides managers with an opportunity to expand their leadership responsibilities.
According to Professor Northcraft, the new owners of an Au Bon Pain cafe have the freedom to create a business plan based on their own ideas. It is crucial for them to comprehend both the practical and emotional aspects of running a business in order to succeed. Instead of trying to control resources, their success hinges on effectively utilizing them. They can be innovative and
apply their expertise to experiment with novel methods and ideas, aiming for the desired outcomes. Ultimately, they possess the power to take ownership of the business and make it distinctively theirs.
While some managers who are promoted to ownership level embrace their role and navigate challenges effectively, others may struggle to adapt in the fast food industry. They may find the demands overwhelming and need to reorganize their thinking to improve their environment. This can result in loss of motivation and direction for these managers. Furthermore, the Partner/Manager program hampers open communication and diminishes its value.
Communication is crucial in all relationships. The program aims to change the role of district managers from being police-like supervisors of 3 to 4 stores to being coaches overseeing 8 to 10 stores. However, this approach is undermining the importance of working together to achieve success. As a result, the Partner/Managers are missing out on valuable knowledge and expertise possessed by district managers, which could be shared if a more inclusive relationship is established. Additionally, as district managers take on the added responsibility of overseeing more stores, they lose touch with the specific challenges faced by individual store partners/managers.
These partners/managers are facing the daunting task of having to navigate on their own. The departure of these talented and creative individuals at the next level of authority could be detrimental to the organization instead of enhancing its success. Although the partners/managers will continue to receive guidance from district managers, the increased workload of managing more stores will likely diminish the consultants' enthusiasm and ability to provide personalized attention. Optimal results can be achieved when all levels of management collaborate towards a shared
objective. Each individual contributes unique ideas and perspectives to the discussion.
In our class example of "how many f's in the sentence," everyone looks at the same thing but perceives something different. This lack of communication hinders us from experiencing and understanding others' unique perspectives. This division in management levels can also alienate partner/managers who may view asking for help as a weakness. Moreover, if there is a breakdown in communication, teamwork within each store can be hindered. According to Dunn, associate managers fear that their success or failure depends on the partner/manager they work with. The partner/manager has the final say, despite the associate manager's financial investment. As a result, if the two managers fail to connect or if one is not given the opportunity to contribute and participate in decision-making, the associate manager's enthusiasm will wane.
The loss of hope described by Dunn leads to a downward spiral of despair. The tanagram assembly activity shows the significance of teamwork. Effective communication between the manager team and project team leads to better collaboration and assignment completion. Understanding each member's role and being comfortable with it is crucial for success. When the entire organization comprehends its functions, productivity and results improve.
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