An extensive branch network. We "weave" branch networks. Key budget positions

Even if you opened some branches, first of all, in order to provide your customers with a certain level of service, and these specific branches do not bring profit, the company's total profit should grow. If your profit is not growing, then you have completely useless expenditure of effort, time, money and other resources.

The work of the branch must be controlled.Only when you have the technology to control the work of your central (main) company, then you can think about scaling using federal networks. If you work manually, the branch will not bring you profit, pleasure or a competitive advantage. He will most likely spoil the image of your company in the person of your customers and take your money.

The branch network should not be the only distribution channel.

If you think that it is enough to build a branch network and nothing else matters, you are wrong. There are territories where it is unprofitable to build branches.

If you don’t use other channels, you will receive less profit.
If your goal is not to experience self-esteem from the fact that you have 50 branches open, if you want to make money from them, then it makes sense to count for each territory and choose the method that brings greater efficiency.

Branch network building technology

Preparing to open branches is the same as starting a franchise. The only thing is that you yourself are the beneficiary of this franchise.
You must necessarily have regulated business processes for the activities of the head office, these are processes such as: production and provision of services., Sales, marketing, procurement and logistics, personnel management, operational management enterprise, control and reporting. This is the main scaling condition.
If you do not have an understanding of how you build business processes while your main company is under manual control, and at the same time you open branches, then that's it, this is a quick and painful death for the branch and your company as a whole.

Sales, sales management

If you do not have an automated process for managing and tracking sales, for example, as part of an increase or decrease in a customer base, turnover and profit in the context of product categories, sales channels, suppliers, etc. - that's it, goodbye. You will definitely not be able to control sales in third-party territories, and the branches will be unprofitable.
Moreover, a sales management tool is not as important as having a clear control system. For example, one large federal company with 60 branches successfully managed sales, financial analytics using only Excel !. And thanks to the regulation of activities, it had been present on the market for 20 years at that time. They, of course, incurred additional costs due to the fact that they had about 10-15 people processing this analytics.
So, automation is a big plus, but without regulation, it doesn't matter with what tool you automate it.

Implementation of budgeting throughout the company structure

It is the most important element in the structure and control of sales and expenditures. If you don't have budgeting, then there are two options - either spend a significant part of your time manually managing branch expenses (trying to analyze and confirm every action about every purchase of everything, including stationery), or leave these decisions to the branch managers, provoking them if not for theft, then for uncontrolled purchases that are excessive in terms of quantity and / or quality, deliberately increasing the share of the cost of your goods or services. Therefore, budgeting should be mandatory.

Branch structure management

For this, a unit is created that monitors the implementation of the budget and other indicators, filters for itself and solves routine issues, and only a small part of them, which it does not have the authority to resolve, is forwarded to your level.
This structure deals with the planning and development of branches. Provides you with analytics of the activities of branches at a given frequency, and with it, proposals for the development of the branch network. This is the appointment of the unit that manages the branch structure.

Launch of a new branch

A very complicated process. From the selection of premises to the search for personnel. You must equip your employees with a completely clear list, a checklist describing each step in opening a branch in a specific sequence, with a launch schedule for each facility, without fail - with responsible persons and deadlines.
Generally speaking, opening a branch is a classic project management task. You prescribe tasks, connections and dependencies, milestones.
Market analysis in the selected territory, assessment economic feasibility opening a branch, selecting the management of the branch and other personnel, if necessary, choosing a location, launching a marketing campaign, training the management of the branch in the standards of the main processes that you already have, purchasing equipment for the office and retail space. Beginning of work. These are major stages of the project to open a new branch.
After that, the specialists of this division will be able to open branches, how to sculpt pies.

Control over the current activities of branches

It should be regular, carried out according to many parameters, but you should not be engaged in these control! You should only connect when benchmarks are out of alignment. Never rate a business on average. It should be assessed on a branch-wise basis. Each division or store must collect its own financial metrics as well. you need to have control points for the metrics.

Key budget positions

In order for you to be able to assess in advance the profitability or loss-making of a division, budgeting is used. You set them a sales plan for the next year, you collect a budget calculation from them. And you invest the maximum requirements.

Fixed costs:

• Rent, communication, stationery, communication, consumables and more than 50 items!
• Repair
• Variable expenses (bonuses). Your sellers receive bonuses.
• Marketing budget
• Shopping plan. Purchase of inexpensive items (less than 20 thousand rubles), which do not require control and approval of each.
• Investment plan. Purchase of expensive items (over 20 thousand rubles). For example - carrying out repairs, re-equipment, construction, purchase of vehicles.
• Each position is necessarily coordinated with the profile divisions of the head office.
• An investment plan is characterized by a return on investment calculation.

When you are planning an investment budget for opening a branch, you should separate investment and operating expenses. In the course of the activity of the branch, it must not only ensure its expenses and bring the planned profit, but its income must, as a separate item, recoup the investment for the planned investment return period.

The minimum set of indicators for monitoring the activities of a branch:

• Sales figures:
  • in value terms, in the context of periods and areas of activity
• Customer base metrics:
  • number of new clients
  • total number of clients
  • market share
  • etc.
• Performance indicators
• Economic and financial indicators.

Scheme of interaction with the parent company

There are two opposite principles here. Each of which has its own pros and cons.

Branch is an independent entity economic activity

• The head of the branch has the powers of the general director:
• Separate checking account
• Agreements with clients and counterparties are concluded by the head of the branch
• Self-service tax reporting
• Self-employed staff recruitment

Everything is fine, it works great, but you bear the risk that a particularly smart, gifted director will look and say, "why am I, in fact, working for someone else's uncle?" and will copy this activity, create its own company, completely taking your technology and manufacturing process doing similar activities.

Branch-separate subdivision:

• The manager does not have the powers of the general director, in fact, he is responsible for the implementation of the sales plan. In essence, it is a remote negotiator. Quite an extreme case when he does not have the right to sign contracts.
• No separate checking account
• Contracts with clients and counterparties are concluded by power of attorney
• Tax reporting is carried out by the parent company

But in this scheme, everything is much worse. You suffer consequential losses due to the slowness and sluggishness of this management scheme.

Branch management pitfalls

Loss of control... If you have not built BP and especially control processes, then your branches will certainly work with very low efficiency. Most likely, they will simply imitate the activity and demand a salary for this. Duplication of BP execution of a branch.
You have to increase the capacity of the head office to carry out the processes that must be performed by the branch offices. To deal with the maintenance of additional documentation, correspondence with clients and a lot of other processes. The question arises: why do you need such a branch at all?

Alternatively, hidden duplication of processes. Head office employees are not just doing the work for the branch employees, they are just checking every process that the branch employees have done.

Double, triple, etc. control.

If the company is seriously bureaucratic (I have met companies in which there were 7 levels of management. From the CEO to an ordinary employee of the branch, there were 7 levels of management!). This suited the business owners - they received their planned profit. But the flow of management documentation simply did not leave time for the actual earning of money by the employees of the branches.
This is how it usually happens: The CEO gathers direction directors and sets tasks. They return to their offices, gather the heads of their subordinate departments, and broadcast this task. They do the same with the heads of departments within their departments. It turns out that tasks on the same topic, but transformed to the areas of responsibility of the directors of these tasks, come to one branch manager or his employee from 10 points of the head office. And the whole branch urgently, throwing away current activities, must complete all these 10 tasks.
Sometimes the owners of the company deliberately begin to push their heads against the divisions. Salesmen with production workers, production workers with marketers, marketers with logisticians, and this is fun for the director. There are management styles.
As a result, there are no sales. Including in branches.

Risks of introducing a scaling system by opening branches

• High investment cost.

Opening a branch, even taking into account the implementation of all the previously listed nuances, is an expensive thing. And in the absence of at least one of key points, costs can increase several times

• It is obligatory to have a high organizational culture at the head office.

Business processes, indicators, control - all this must be implemented initially. This is a difficult thing to implement, because it requires a change in the attitude of all persons of the company, including owners, top management, towards these actions.

• Leave the activities of branches to gravity.

If there is no control system, then you can assess what is happening in the branch only by the final financial indicators. Moreover, branch managers will always find a lot of serious reasons why such indicators were obtained, and why it is impossible to get a better result.

• Low efficiency of work of remote units.

If there are no regulations for business processes and control, work performance will be worse than none! People don't like to work. It's no secret to any business owner that hired employees don't want to work. If there is the slightest opportunity not to work, they will take advantage of it, and no amount of positive motivation will force them to spend more personal energy than necessary.
If you are good at running one store or one division, that does not mean that you will be good at running a chain of stores. How the staff work with and without your presence is a big difference.

• Theft of heads of remote divisions.

Those who have the right to independent economic activity can find many ways to include their income in the costs. If there are fuel costs, then this is a golden topic. Also, on any other service that the company uses, you can earn your own pretty penny. You can even create your own service company and provide services to your branch. Since there is more than one service, there is a significant increase in wages.

• The problem with hiring qualified personnel in the branches.

When hiring employees for a branch, we mainly encounter such people who sit out the storm. Such employees do not have their own point of view on the development of the branch and always agree with what you tell them.
Even if you were able to find a proactive employee, as a rule, his qualifications leave much to be desired. If, at the same time, you do not have a training program, there are no procedures for the processes according to which personnel should work and there is no personnel development program, you will not be able to ensure that this employee would quickly benefit your company. Unless you can compensate for this to some extent with mentoring.
But if you have these three things, then you take any adequate employee and after 2 weeks he begins to bring the result that you expect.

Problems when using dependent branches:

• Low speed of decision making

Before signing the contract, you need to explain how it is beneficial, to convince the head of the central office that it is good condition... Naturally, your boss will think about this proposal for a while, because a boss like you has 10 more. And after some time he will make a decision. It's good if it's positive. And your client can change his mind ten times during this time. If they sign the contract for a month, then how long will the delivery be carried out?

• Impact of personal relationships with head office employees on the speed and composition of decisions

If the chief accountant doesn't like you, then your payments, which he confirms, will take a very long time.

Pros of using business scaling:

• Access to end consumers
• Full control over the sales process and customer base
• Maximum margin among other schemes
• Selection possibility best employees for the head office.

You can motivate them and take them to your place. Moscow companies use this all the time. Business elevators in large companies work because it’s cheaper to hire a person from the region, and he will actually work for the idea, for food, than to find someone among Muscovites who will look 120 times more what you offered them there.

Examples of implementation practices:

I would like to give examples of companies that have successfully solved the problems of forming a branch network.

• Express delivery (B2B services). The company has been on the market for 25 years, has 60 branches. For some reason, the company refused to automate sales and for 25 years it grew along with the market.
• Trade finishing materials(B2B and B2C). The company has been on the market for over 15 years. She had 18 branches at that time. Developed quite successfully, except for the last 3 years. 18 branches is not 60.
• Trade in mobile phones and gadgets

How to avoid the risks of using a branch structure:

• Regulation of the key business processes of the head office activity before the start of the structure creation
• Implementation of budgeting throughout the company structure
• Creation of a branch structure management unit at the same time before the opening of the first phial
• Feasibility study and business plan calculation for opening a new branch
• Development of a complete set of detailed regulations for each step of opening a new branch
• Development of a reporting system for the activities of the branch, necessarily using proactive indicators and quality indicators of process execution
• The remuneration system is directly related to the fulfillment of performance standards
• Planning and control of budget execution for each branch
• Implementation of sales management automation systems (CRM) and management of projects, tasks and orders
• Regulation of subordination and workflow

Watch the video…

Victor Anisimov.
Sales and Business Development Expert,
Senior Managing Partner, Business Profitability and Manageability Agency

Edition: Branch network: development and management

Chapter 1. Technologies of management and marketing in management
branch network

Why are branches needed, or development strategy

To begin with, let's define what value companies usually put into the concept of a branch network. In accordance with Russian legislation, a branch is a separate subdivision, open without formation legal entity, but has its own bank account. Article 55 of the Civil Code of the Russian Federation gives the following definition to representations and branches.

Yo A representative office is a separate subdivision of a legal entity located outside its location, which represents the interests of a legal entity and protects them.

Yo A branch is a separate subdivision of a legal entity located outside its location and performing all its functions or part of them, including the functions of a representative office.

Representative offices and branches are not legal entities. They are endowed with the property of the legal entities that created them and act on the basis of the provisions approved by them.

Many companies consider their subsidiaries to be subsidiaries, the controlling stake of which belongs to the parent company. Following them, we will also refer to these regional divisions as branches, although from a legal point of view, this is not entirely true. In addition, we will classify as branches their geographically distant divisions that carry out sales, as well as pre-sales and after-sales services, regardless of the form of organization, that is, without opening a separate legal entity or giving it the status of a separate legal entity.

There are many real situations in which a company will not be able to fulfill its goals without opening branches. And in this case, a branch network is necessary. Perhaps there are even more options for regional development, choosing which, the company can reach the planned sales figures and without the cost of its own remote divisions. L. Stern, one of the leading international specialists in the field of distribution, notes that first it is necessary to consider alternatives to its own sales divisions: organizing sales through dealers or distributors. Firstly, because the opening and development of branches is always associated with large capital investments, and secondly, regional divisions may turn out to be uncompetitive in terms of the range of goods or services.

What are the reasons that most often determine the need for the development of the branch network?

Lack or insufficient number of resellers in the region

Often, the supplier's satisfaction with the work of regional trading partners contributes to the opening of their own offices in the regions. Sometimes the quality of the dealers' work may not be satisfied (the requirements for warehouse storage, delivery conditions, necessary service, etc.) are not met. In a number of regions, there are no qualified distributors at all in some areas of business.

Such a situation developed several years ago in the sales system of Unilever CIS. Initially, nine distribution centers of the regional branch network were opened in the largest cities of Russia, through which goods were supplied to regional distributors. With the help of this network, Unilever CIS accomplished two tasks: reduced the risk of a “commodity hole” and ensured that it took no more than 48 hours to complete an order from any distributor for each commodity group. The open network of warehouses allowed the company not only to save on warehouse costs but also significantly increase sales.

Centers were opened in cities that are located at the intersection of several transport routes. Additionally, data on sales of products in the region were analyzed, since the planned load of the center was supposed to be at least 20 distributors. The company entered into contracts for the lease of space with firms that own warehouse terminals, and only invested in the installation of storage equipment food products and in the establishment of telecommunications.

In European countries and the United States, Unilever, like other multinational FMCG corporations, does not deal with logistics and distribution. The company either works directly with the purchasing departments of the largest retailers, or with firms specializing in warehouse storage and wholesale supply of consumer goods. For Unilever, the creation of a network of distribution centers in Russia has become an innovation within the entire corporation. In the specific Russian conditions, in which the largest distribution firms were concentrated in Moscow and St. Petersburg, Unilever CIS had to create a logistics and sales system that was atypical for the company. Having solved the issue of the quality of logistics services for customers, the company also managed to cover the most significant and promising regions of the entire Russian market.

Following clients

This strategy is usually chosen by companies that have network clients with large sales volumes in their client portfolio. For example, cleaning companies serving national customers follow them to the regions chosen by their partners. Of course, this option has its pros and cons. The pluses include excellent predictability of sales volumes on initial stage branch development. Among the minuses are all the risks that a company that focuses on large customers takes. It is very difficult to achieve the loyalty of such a client, and there is always a risk of breaking the relationship, which results in the loss of a significant share of the turnover.

The second aspect of this strategy is associated with the features of planning the future of the company as a passive adherence to changes in the business (for example, the movement of customers). Of course, this orientation is always more losing in comparison with the active formation and conquest of new markets, including regional ones. The company reacts to a fait accompli, which means that it is already wasting time to create a promising model, structure, and development region. Probably, with a pre-prepared entry into a certain regional market, the company would be able to attract interesting customers by offering new opportunities.

Aggressive regional politics

Aggressive regional policy is typical for companies hatching ambitious plans to build sales structures at the national level. The creation of a branch network with a warehouse system ensures quick filling of sales channels and efficient delivery of goods to any locality in the country. Suppliers, with the help of their own branch networks, achieve the most complete distribution and a wide range of products not only in their region, but also in the main regions of Russia. A powerful argument for a nationwide regional network for wholesalers and manufacturing companies is uniform pricing.

Regional warehouses often perform storage and retail delivery services, as well as coordinate the purchasing activities of distributors, their interaction with the trading and production departments of the parent company, and the development of logistics solutions that take into account the specifics of a particular counterparty. This allows regional clients to more efficiently manage time, human and financial resources. The ability to order goods from a local regional warehouse increases their frequency and reduces the volume of one-time purchases. According to a number of companies in the consumer market, the size of a one-time purchase is reduced to 50%, and the frequency of orders increases 2-3 times. And this is only for the already existing client base.

For regional clients, this form of work brings direct benefits: the amount of funds previously invested in inventory balances is reduced and working capital... And besides the "old" ones, serviced from the head office, new clients are attracted with the help of the branch, mainly medium and small ones. They also increase the supplier's sales in the region.

The network organizer is given access to new marketing information. If a regional distributor makes purchases from a central warehouse in large quantities, with stock, the goods actually disappear from the supplier's field of vision. Information about sales is lost: the goods could be in the warehouse, resold to other companies and thus travel to the regions. When working through a regional warehouse, a distributor purchases exactly as much as he can sell for a certain period of time, and on the basis of sales data, one can judge the preferences of consumers in a particular region. And this is extremely important information for companies planning to "capture" the main Russian markets.

There are many examples of companies striving for total takeover with the help of their own divisions in various areas of business. These are, as a rule, applicants for leadership positions... Perhaps it is difficult to imagine an efficiently operating national-level distributor company that does not have an extensive network of branches. This is the path taken by distributors of consumer goods, such as the Gradient company, which operates in the cosmetics and household chemicals market. SB Patushin gives many arguments in favor of his own regional network of pharmaceutical distributors in his book "Effective Distribution". The most important, he says, is the excellent manageability of its own subsidiaries. The author notes that the regional network is an indisputable competitive advantage: “… in general, it is very difficult to oppose the dictates of an interregional distributor with an incomparably large financial resource with the relatively modest competitive capabilities of a local wholesaler. That is why national and large regional distributors have succeeded in regional construction more than others. This process has become one of the main factors in the extensive development of the market - new branches, starting to compete first with local companies, and then with the emerging regional structures of other large players, noticeably revived the markets. [...] Today, covering almost simultaneously millionaire cities (six national distributors intersect in almost 90 % of regional centers), distributors are engaged in targeted regional development ”.

Bank Menatep SPb and Alfabank, which have more than a dozen branches, are pursuing an active regional policy. The task of becoming a federal operator of logistics services is inseparable from the development strategy of an extensive branch network. Therefore, such companies as Armadillo, Mile CIS, Pony Express, which have covered the main regions of Russia with a branch network, pay great attention to this issue.

Selective planning of regions of presence

Even without ambitious plans to “capture” the entire Russian market, many companies are counting on regional development of their branch network in the most promising regions. These companies usually have limited financial and human resources and cannot cover the entire market. The choice of regions of presence is a completely justified step if it is made on the basis of a well-thought-out methodology. The basic approach to shaping a choice system is outlined later in this chapter. With its use, it is possible to design an optimal distribution model from the point of view of regional development. Suppose your company does not have sufficient resources to open 5-7 branches per year. The main task in this case is to correctly distribute the regions between wholesale intermediaries and their own branch structures. It is necessary to understand in which regions the maximum return from branches is possible, and in which the best option there will be sales through dealership and distribution links. Probably, there are also “dead” regions, the return from which can not be expected in the near future.

Brand promotion or promising models of our own distribution networks

In practice, there are many cases when a company plans to open its divisions in order to promote a brand. This strategy is mainly followed by manufacturing companies that open retail divisions. In Russian practice, there are a lot of examples of the development of their own retail by suppliers, but so far not all such chains have been successful.

For example, a large alcoholic holding "Ladoga" is developing a chain of branded stores in St. Petersburg and Moscow, and in the capital the chain has not been profitable for a very long time. In an interview with the Sekret Firmy magazine, the general director of the Ladoga holding Veniamin Grabar says: “In Moscow, these stores are really unprofitable. In St. Petersburg, they pay off. At the same time, we intend to continue working in the capital. We consider them as the image component of our business. With their help, the consumer can be introduced to our product on a larger scale, and marketing activities can be carried out. From a commercial point of view, this network is, of course, not a profitable project. We spend about $ 1 million a year on these stores, and this amount is not critical for us. After all, representative functions are performed instead. In addition, we are now extremely limited in advertising opportunities. Strong alcohol is almost impossible to advertise today. Unless only with the help of various tricks like the release of mineral water under a vodka brand. " (Magazine "The secret of the firm", No. 8 (95), 28.02.2005.)

The tire holding "Amtel-Vredestein" has managed to become the largest tire seller on retail market through the purchase of large retailers in St. Petersburg - the Khoroshie kolesi and Nordshina chains, as a result of which retail outlets Amtel has exceeded one hundred. The company plans to expand its retail network by the end of 2007 shopping and service centers up to 200.

Gloria Jeans has made a lot of efforts to develop the chain of branded stores, and it does not reduce its plans for the annual opening of new stores. The manufacturer began by opening its own stores, and then launched a franchise project. Gee Jay stores serve as an image function and at the same time are an important distribution channel.

There are many such examples. However, foreign companies, whose business has been developing for decades, managed to realize the maximum of the advantages of their own retail. Over the past 20 years, many manufacturers have been opening so-called flagship stores (theater stores, entertainment stores). In them, the brand is supported in all possible ways and appears in everything: in the scenery, trade equipment and props, in the acting. Let's dwell on the rules for creating flagship stores of manufacturers in a little more detail, since for many this is a future advantage that can ensure the growth and development of companies in a tough competitive environment.

The flagship store not only presents exceptional retail opportunities by immersing shoppers in the brand's world. For the firm's own employees, he is an example of how brand identity and implementation go hand in hand. Brand identity is the complex of brand associations that creates a value proposition that includes functional, emotional and self-expression benefits, and instills consumer confidence in the brand.

One of the first flagship store was opened in 1986 by NIKE. It was named NikeTown (NIKE city). This event was one of three pillars of a very successful company promotion program that has delivered incredible sales and profits. When creating the store, the following principles of organization and design were laid.

Ё 6503 m 2 areas on three floors, in 18 pavilions, demonstrated the full range of NIKE.

Yo Music in the style of MTV sounded in the halls.

Yo There were huge screens all over the place with replays of important games.

Yo There is a giant poster with Michael Jordan on the ceiling.

Yo Architecture, layout, employees, exhibition stands - everything conveyed the essence of NIKE, embodying its energy and philosophy of “just in time”.

The MAGGI project in Frankfurt is considered economically successful. The company took the path of informing potential clients and the formation of consumer loyalty by developing the concept of the MAGGI center.

Yo The flagship store in Frankfurt is 2,000 m 2 with the slogan “Cooking fun for family and friends”.

Yo The store has a department where MAGGI products and related products are offered: convenience foods, seasoning bags, aprons, cookbooks, etc.

Yo The store has two kitchens. In the sampling kitchen located at the front of the store, visitors can watch the preparation process, taste the dish and receive a recipe card. The experimental kitchen hosts daily radio shows and special contests, which are broadcast online on the company's website.

Theme Park CADBURY

The confectionery maker Cadbury created the "World of Cadbury" in early 1990. Visitors to a former factory in Birmingham, converted into a museum, theme park and chocolate shop, are greeted by a knife-armed Indian priest from the wild forests of Yucatan. Then, for 2.5 hours, they make a journey through the history of chocolate, getting acquainted with such legends as "Hernando Cortez and the king of the Aztecs Montezuma". The visitor learns about the origins of cocoa and chocolate, how the Cadbury company started as a grocery store in 1824, and then expanded trade links throughout the British Empire. And when the history of chocolate and the history of the company merge, Cadbury is positioned as an authority on fine chocolate. But more importantly, you can sample hundreds of brands for free. chocolates Cadbury: This promotes first-hand exposure to Cadbury Chocolate and supports the company's slogan "Chocolate is Taste".

Cadbury World is like other European brands that have opened the doors of their companies to the general public. This, for example, a visit to the Nestle factory in Switzerland, numerous excursions to vineyards and breweries. The main difference between Cadbury World is that it really makes a profit, since there is a fee to visit, and there are about half a million visitors a year. (Based on the book by D. A. Aaker and E. Jochimstayler. "Brand Leadership: new concept branding ".)

After the opening of NikeTown, many began to build flagship stores: Sony, Polo Ralph Lauren, Warner Brothers, Disney, Sega, Virgin, Bass Pro Shops, REI, etc. In addition to stores, companies find the most favorable places of contact with the consumer, conduct extensive loyalty programs and commitment to the brand and products of the company. In highly competitive markets, own "non-core" chains of stores, cafes, specialized centers are the advantage that helps to take a step forward. Very famous interesting examples of how a premium ice cream maker has created exclusive café chains that embody the slogan “Ice cream is a sensual and sophisticated weakness”. It has already become a textbook example of the development by Nestle of a network of points for mothers with small children in car parks in France.

Branch network strategy: long-term benefits

So, this is a general list of reasons why companies are developing regional divisions. Not all of the proposed options can be called strategic guidelines for the company; it would be more correct to talk about the reasons for regional development. If a company opens its first branches, of course, it is not always possible to clearly formulate its strategic objectives. However, when more than 10 branches are opened, the network development program must comply with the main strategic goals of the company. The first question that needs to be worked out is the definition of the role of the branch network in the development of the company. The network always presupposes large long-term investments, thanks to which competitive advantages are formed in regional markets, but a more modest role is also possible. So, one Russian wholesale company, with which we have worked, attaches secondary importance to branches. In particular, they target medium and small clients in the region. All large clients are transferred to the head office for service. The secondary role of branches in this case hinders active development in the region and provides tangible benefits only in the short term.

When developing a regional development strategy, it is necessary to determine the main goals for the blocks:

Yo branch network concept;

Yo product and brand portfolio management;

Yo pricing;

Yo distribution and logistics;

Yo system of promotion in the regional market.

These blocks form the strategy of any company. However, when working with remote subdivisions, it is necessary to decide how centralized the performance of each of the tasks of pricing, assortment management, etc. will be. That is, in addition to the already developed provisions on product, price, marketing, etc., it is necessary to determine the role of branches in performing tasks companies. For example, if the marketing function is not transferred to affiliates, then it is unlawful to expect responsibility and increased efficiency of their work.

Analysis of the company's readiness to open branches

CEOs of a company usually decide to open a regional network because they are afraid of missing out on the opportunities presented by rapidly growing regional markets. The logic is approximately as follows: if the market is ready, then it is necessary to open urgently.

However, from the point of view of consultants, the internal readiness of the company for such a step is of great importance in making a decision to open remote divisions. Why do some companies manage to reproduce and successfully develop their business regardless of the region, while others have almost a third of their branches unprofitable? It turns out that developing the business of a company located in one office is much easier than cloning it through remote divisions. Methods and technologies that are effective for "mono-business" do not work on network structures.

The company's willingness to open regional divisions usually manifests itself at the following levels:

Yo managerial;

Ё financial;

Ё marketing;

Yo process.

Key Success Factors in Branch Network Management

Let's identify the key benefits for building well-managed regional networks. As practice shows, most companies with a successful regional strategy use several tools. Firstly, it is an optimal structure - flexible and in line with market requirements. Secondly, a correctly chosen model of branch management, which determines the degree of their independence. Thirdly, detailed instructions, regulations and documents defining the operation of the branch network.

Business development and choice of management structure

Probably, there is no such company that would not have to change its structure at least once during its existence. Over time, there is a need for new divisions, it is necessary to change the functions and composition of the old divisions. Usually such changes accompany the development of the company and changes in the external business environment. One of the famous researchers of business systems L. Greiner identified the typical stages that any enterprise goes through in its development. It should be noted that since its publication, its "transformation theory" has not met with serious refutation, and many domestic consultants use this approach to plan a promising company model. Greiner's theory is of particular interest from the point of view of the development of branch networks. According to Grainer, any company sequentially goes through a number of phases or stages (Figure 1.1).

The first stage of business development is called phase of business ideas ... At this time, the founding fathers of the company, having come up with, developed or somehow got hold of a business idea, begin to develop it. The team of a young company often has close informal ties: everyone knows each other well, they communicate not only at work. There is no clear division of roles or responsibilities: everyone does everything. However, over time, there is a need for specialists who thoroughly know their field. Greiner argues that a competency crisis arises as a result of the company's development. It turns out that it is necessary to "rebuild" a clear functional structure. If the company successfully copes with this, it moves to the second stage of development - function stage .

The founders of the business do not have their own knowledge, therefore, hired highly qualified managers are invited to the company, whose experience is necessary for further development. It is at one of the early stages (second) that companies build linear-functional structures. Initially, the new opportunities of this structure are actively used, but after a certain time its rigid framework turns out to be tight for the developing business. Many problems appear. The development of a business and its subdivisions requires the attraction of new competencies, which leads to the physical growth of functional structures, at the same time the old ones, which may already be unnecessary, but habitual, remain. Functional "wells" of power are beginning to resemble "ivory towers", their leaders turn into "experts" or "advisers" surrounded by numerous assistants. The heads of functional divisions have information, experience, knowledge and “advise” the top officials of the company to make one or another decision. In most companies, decisions are made by top officials, which threatens with significant delays in case of questions about branches. Horizontal connections between the "towers" collapse, information flows are switched directly to the assistant, who transforms them to the superior leader. The flow of information to the leader increases like an avalanche; in the most unfavorable cases, power paralysis occurs. Employees are guided by the execution of the decisions of the "expert", not interested in the impact of their work on the overall success of the company. Its effectiveness begins to drop sharply. Greiner calls this a coordination crisis.

Such problems are very typical for companies using functional structures in branch management. The way out of the crisis is the formation of process management systems aimed at achieving a result (diversification, delegation of powers and management by results or goals), and not just performing functions prescribed by an expert.

With favorable development, the company moves to the next process management stage (delegation and diversification stage) ... The essence of management systems at this stage is the unification of personnel based on the result of activities. A typical example of process management is the allocation and organization of business units. Not so long ago, the company "Pervomayskaya Zarya", a clothing manufacturer, rebuilt its management system, singling out business units and assigning certain trade marks and lines. In each business unit, collection design, production and sale of products were integrated. As a result, several so-called brand departments appeared at once, each of which included a staff of designers, purchase and sales managers. The business unit aims to achieve the same result for all and fully controls the entire process from the purchase of fabrics to the sale of finished products. Their leaders monitor the movement of the collection at all stages: form a concept, a brand budget, plan deadlines, give assignments to designers, artists, etc. some overall result (diversification). Such management was theoretically described back in 1952 by Peter Drucker in the form of the concept of "management by objectives". As applied to companies with a branch network, the transition to the phase of delegation and diversification means the separation of branches as independent business units with the transfer of powers to them to resolve operational issues. Organizationally, such a management model is very often fixed in a matrix or divisional structure.

Further development of the business system leads to the complication of information flows, including those used for control. To simplify the management of an expanded system, it is required to move to "network management", delegating the overwhelming number of managerial powers to the localities, but retaining control of the inventory and cash flows systems. According to Greiner's vision, companies need to overcome a crisis of control.

If companies overcome it, then they switch to network management stage ... That is, companies turn into network structures with subsidiaries, the controlling stake of which belongs to the parent company. In fact, this is the same process management as in the previous stage, only at a higher level. Many experts consider Gazprom to be a typical example of such a structure, which controls the commodity and material flows of its subsidiaries, but does not interfere with technologies and local management systems. Among the companies developing branch networks, there are many that plan to transform branches into legally and financially independent companies after a certain period of time. For example, in the book "Effective Distribution" S. B. Patushin recommends pharmaceutical distribution company start networking by opening branches as separate subdivisions without forming a separate legal entity, and from the second year of the project to re-register successfully operating branches into subsidiaries. In his opinion, it is this form that provides the branches with the necessary level of autonomy in the decision-making process. In most companies, control over financial and material flows remains in the parent company.

Further development of business within the framework of network structures generates, according to Grainer, a crisis of bureaucracy. It is caused by a significant increase in the unproductive mechanism that controls the network structure and determines the direction of investment activity of the corporate center. As in the case of functional structures, the bureaucratic apparatus begins to exist for its own purposes, different from the goals of the business system. Further centralized management of a huge volume of assets becomes almost impossible. Owners must decide to optimize the portfolio of assets managed by the corporate center.

If the right decision is made, then the business goes into knowledge management phase ... Russian experts often refer to it as the phase of intangible assets. (see Dmitry Khlebnikov's article "Growth Problems")... This stage is characterized by the creation of alliances, holdings and the management of intangible assets (in English - goodwill), that is, intellectual property. If the system continues to successfully exist and in its development has reached this stage, then this means that the business idea, image, brand and accumulated “know-how” are extremely effective. At this stage, it is necessary to select those assets that are most convenient to manage and commercially stable. Large or giant multinationals such as McDonald's and Beneton have grown to this stage. They have at their disposal the patented know-how and technologies of fast food restaurants, clothing stores, as well as well-known brands. The network structures of such a business are no longer built on the basis of their own divisions, but with the help of a franchising and outsourcing system. It is also interesting that at the fourth and fifth stages of the company's development, geographical divisions are allocated. For example, when entering new markets in Eastern Europe, a division opens up that manages the strategy in this region. As a rule, international corporations open divisions that manage business development in several countries at once.

It is known that not a single company has been able to pass all five stages of development in two or three years. However, this does not mean that it is useless to try and build a franchise system in parallel with their own branch network: many companies are laying the foundations for their long-term competitive advantages now. According to experts from the field organizational development the majority of medium-sized domestic companies are in the second stage of development or in a state of transition to the third. That's why it's so popular now process approach to the control system. Many companies are working out ways to delegate authority to the branch network and are using methods to make functional structures more flexible and manageable, for example, project-based forms of management. Another important conclusion for domestic companies from the theory of transformation is that it is practically impossible to develop a business without changing the structure.

Business development is very often associated with the opening and development of a branch network. Every second owner of a company with branches notes that, regardless of the degree of their development, there are difficult moments, the solution of which using common sense does not lead to positive results.

80% of entrepreneurs say: "If you want to be successful, develop your network!" In order, on the one hand, to avoid typical and fatal mistakes and, on the other hand, to make such business development effective, the authors summarized their practical and consulting experience in this issue and presented it at the Branch Management Seminar.

The program is held in the format of a master class. At the beginning of the seminar, the authors collect practical tasks and the hard-won needs of the listeners, then organize their discussion and development of solutions. This process is similar to hands-on consulting, as trainees receive answers to their questions and practical advice on how to set up and manage a branch network.

At SRC Business School, you are the right choice!

Bonus to every participant!
1.5-hour consultation with Mikhail Serov and Eduard Ivanchenko. You can register with your manager.

At the seminar you will learn

• How to make a project for the development of a branch network more balanced and profitable;
• How to avoid common mistakes;
• What is the strategy of an organization with a branch network;
• How to organize financial activities branches are simple and correct;
• How to maintain a dynamic balance between branch financial autonomy and centralization financial management in the company as a whole.

The program is designed for heads of companies with an already operating branch network or those who are planning to create it: general and executive directors, development directors, heads of sales departments, financial directors or their deputies, HR-directors, managers and specialists of control services.

Workshop program

1. Creation of branches as a way of business development, assessment of the correctness of the decision made

   • Analysis of the success of the project to open a branch network. Creation of a branch network on the map of the main opportunities for business development.
   • Analysis of the quantity and quality of resources available to the company. Analysis of competitive opportunities.
   • Sales representative in the region - a branch with shipments from the center - a branch with a warehouse - full functionality. When a branch becomes a subsidiary. Corporate center models.
   • Mechanisms for replicating the business of branches.
   • Taking into account the rules of business struggle when opening a branch network. The rules of Chinese strategy.



2. Key technologies for managing a trading company

   • Formation of an effective organizational structure.
   • Methods of transferring the corporate culture of the head office to the regional network.
   • The role of the branch director, his duties and powers.
   • Typical mistakes when creating branches or identifying a "weak link" when analyzing the level of management development.



3. Branch personnel management

   • The specifics of interaction between the branch network and the management company: the distribution of areas of responsibility and the role of the HR director and the director of the branch.
   • Formation of the staff of the branch in accordance with the chosen method of launching the branch: by the forces of the "landing" from the head office, by the forces of the manager of the branch, by personnel service parent company.
   • Features of the construction of the compensation system, taking into account the characteristics of the branches.
   • Training of branch employees: when it is profitable.



4. Organizational technologies of the branch network

   • Development of basic regulations for managing the work of branches.
   • Centralized and decentralized branch management.
   • Typical problems of "Branch - Center" interaction and ways of solving them.



5. Financial management in the branch network

   • Key differences in financial management in a branch network from a regular organization.
   • Connection financial management branches with overall strategy companies.
   • Peculiarities financial strategy in a company with a branch network.
   • Management of limited financial resources when opening new branches. How to prioritize correctly.
   • Financial potential and financial reserves of the organization.
   • Features of the organization of financial accounting in the branch network.
   • Key financial statements, financial control points, communication with the automation system.
   • KPI (indicators) system for monitoring and evaluating financial efficiency branch. Information financial panels (dashboard).
   • Building a rating of branches by financial indicators.
   • Features of budget management in an organization with a branch network: find 10 differences.
   • Correct organization of financial control in the branch network: control within the branch and control by the central office.
   • Risk assessment and risk management in a company with a branch structure.



6. Sales management of a geographically distributed organization

   • Analysis and formation of sales channels.
   • Organizational structure: who sells, sales department or branch network management department. How to combine sales in branches with general management.
   • Stages of changing the organizational structure depending on the degree of development of the branch network.
   • The role of the CPM system for sales management in the branch network (CRM, Customer Relationship Management).
   • An effective report on the implementation of the sales plan in an organization with a branch network.
   • Logistic technologies in the management of branches.



7. Control over the work of a commercial organization with a developed branch network

   • More branches - more advanced control system!
   • Two approaches to the organization of control.
   • Subdivisions of the internal control system.
   • A complete outline of control units at three organizational levels.
   • Distribution of tasks between control units.



8. Basic issues of automating the activities of a trading company with a branch network

   • Typical 1C solution in each branch.
   • Work on one base located on a server in the central office.
   • Typical problems with automation when opening and operating a branch network.

09:30 - 10:00 - REGISTRATION
10:00 - 11:20 - The first block of the program
11:20 - 11:35 - Coffee break
11:35 - 13:00 - Second block of the program
13:00 - 14:00 - Lunch
14:00 - 15:45 - The third block of the program
15:45 - 16:00 - Coffee break
16:00 - 17:30 - Fourth block of the program

Seminar Feedback

Alexey Mokrov, Image Game LLC, Founder, Moscow

I liked the interactive at the seminar. I will apply management accounting, HR work, organizational chart.

Anipko Sergey Viktorovich, Yugprom LLC, Deputy General Director, Essentuki

I liked the training very much. I got the information I needed. Now I know how to correct my branch management.

Kokurin Andrey Vladimirovich, Volya LLC, Head of the category formation department, Vladimir

The available analysis and forecasting tools, the system and structure of branches are explained.

Olga Dorofeeva, Stalker-shop, Branch Director, Tver

Very competent teaching with examples and answers to questions for a complete understanding (structure of income / expenses, dynamics of indicators, promotion factors ...).

Yuriev Alexander Nikolaevich, Moltrade LLC, Development Director of Separate Subdivisions, Moscow

Thanks a lot. There is a lot of useful information in an accessible language. This is the best workshop!

Andrey Bogdanov, "Europe" LLC, Deputy Director, Kursk

The topic of the seminar is very interesting, especially at the present time. Organization of the event at the highest level. In my work, I would like to apply knowledge about planning and analysis of activities before opening branches, as well as competently analyze financial sustainability organizations.

Alferova Irina Nikolaevna, LLC "BiK", General Director, Irkutsk

Organization of training, service and work of the SRC Business School manager is, as always, at the highest level. I liked the scale and depth of the approach to building a branch network. I have identified points of change in my work and plan to use a financial approach (modeling, risk management, etc.)

Alexey Dergunov, Stroy City Retail LLC, Director retail network, Tuymazy

Training is useful in that it systematizes the existing knowledge and allows you to learn a lot of new things to optimize costs. The knowledge on the formation of the reporting of the branches was obtained.

Ivanov Valery Nikolaevich, "ElekCom Logistic" LLC, Project Management Director, Cheboksary

Great hands-on workshop!
I propose to divide the material into 2 blocks and give each block for study on a separate day. I think that two days are not enough for such a useful seminar.

Alexey Novikov, Merida Plus LLC, Head of Branch Network Development, Moscow

Bagadzhiyan Roman Surenovich, Bizon Yug LLC, Deputy General Director for General Issues, Rostov-on-Don

Good training for branch managers. It is a pity that not all of them managed to get through, but the distribution box contains the full material. Probably, it would be better to extend the seminar by 3 days.

Oksana Maseykina, Budgeting Economist, Closed joint-stock company"Kyshtym Machine-Building Association" Branch "Kirovsk", Apatity

Thanks a lot! It is very informative, I would like to see a similar program introduced for state transport companies.

Stepanov Evgeny Vladimirovich, LLC "B1 Electronics", General Director, Moscow

I confirm the high level of teachers, in relation to the level of coaches from other schools in Moscow, which I attended.

Smirnov Aleksey Aleksandrovich, Bizon Yug LLC, Head of the Regional Development Department, Rostov-on-Don

A good, useful seminar, difficult things are simply outlined.

Krutyakova Tatyana Aleksandrovna, JSC "KMO", Kyshtym,

The training was useful, I structured my thoughts and knowledge, found answers to my questions.

To make the management of branches more sustainable and efficient, it is necessary to form optimal structure company and choose the most effective model management of remote divisions. Undoubtedly, within the framework of management, many different technologies and directions have been developed, but without establishing the basic principles, it is rather difficult to create a branch management system that shows sufficient efficiency regardless of the distance of the unit from the center.

How to organize branch management: step-by-step instructions

Step 1.We are looking for a regional leader

The most best workers- enterprising employees. They are overwhelmed with new ideas, they are ready to work hard and take responsibility. But they are also the most dangerous - sooner or later they decide to work for themselves. At best, they will simply leave and create their own business, at worst, they will grab your information, a pool of clients and become competitors.

If you are already a subscriber of the magazine "General Director", read the article

The selection of management personnel in an area remote from the city can be entrusted to the HR manager, regional recruiting agency or by posting a vacancy in the media and the Internet.

You should look for people with the specific knowledge and skills required for the position. This will allow you to quickly set up efficient management the activities of the branch. But you should not rest on the knowledge of this specific field of activity, within which the company exists.

The recruiting agency or HR manager can carry out the initial selection of candidates by analyzing the work experience and checking the recommendations. Per director general the final decision on the candidacy remains, which he makes on the basis of the data provided and the interview.

Step 2.We bring the head of the branch up to date

Due to the remoteness of the branch from the central office, which leaves its mark on the management features, it is necessary for the head of the representative office to have a complete set of information about the company: data on products, accepted business processes, and the staff of the central office.

In addition, there are 2 schemes for bringing the branch manager up to date.

1. Organization of a representative office near the central office ( new leader divisions visits the head office).

2. Organization of a representative office in a remote region.

Step 3.We manage branches and control the work of the heads of regional offices

At the initial stage of work (several months), it is necessary to closely monitor the management of the company's branches. Further, it is possible to use established schemes of work, with less frequency, but also carefully monitor.

The regional representative has a certain autonomy and cannot be constantly monitored. In this regard, a situation may arise that he simply shows the planned indicators, without trying to achieve more. Thus, in addition to external control, it is desirable to apply additional incentives to increase interest in work.

Step 4.We organize information management branches

One of the tasks of the head of the company in the management of the branch of the enterprise is to form a full-fledged channel of information transfer from the central office to the regions.

Types of branch management

Management of branches of a company can be divided into two types: centralized and decentralized. This division is somewhat arbitrary, since for the most part, decisions are made by the center, and only a part of decisions are made by the branch. It is necessary to decide what proportion of decisions is assigned to the center, and what is transferred to the regions.

Most often, decisions are given to centralization for which the representative office does not have enough time, data, human resources, professionalism. Also, there may simply be no motivation, or it is not enough.

All solutions not previously specified are subject to decentralization. Among other things, solutions that contribute to cost savings (for example, centralized procurement) are subject to centralization. However, in the case of centralized procurement, one should bear in mind the decrease in flexibility and speed of decision-making.

A simple technique can be used to determine the potential for decentralizing a decision, that is, to determine whether decision making can be decentralized. To do this, calculate the degree of compliance with the statements below (on a scale from 0 to 100%):

1. The department has comprehensive reliable information for making a decision (tasks, indicators for assessing the quality of a decision, input data required for making a decision).

2. The decision-maker of the branch has the necessary professional knowledge, skills, abilities and experience.

3. The expected consequences of the decision are of equal value both for the head of the branch and for the head of the center (their work is assessed according to similar parameters, the incentive system is similar).

4. The branch manager has the necessary time to make a decision (urgent decisions can come from the head office).

The higher the percentage of compliance, the more chances are to transfer these solutions or functions to the regions without losing management efficiency. In addition, the figure of the potential for these four points demonstrates in which direction to move to decentralize a solution or function.

Initially, all aspects that have an impact on decentralized decision-making, such as mission, strategy, vision, marketing policy, branch regulations, balanced scorecard for planning and monitoring development, common goals and the goals of the branch, the position and, of course, the annual plan and budget, should be created and approved with the direct participation of the head and employees of the branch.

Branch management structure

A well-formed structure is the key to the success of companies with a network of remote divisions. Sometimes companies are forced to change their management model under the influence of the dynamically developing domestic market. It is important to establish the most appropriate structure for a given time and area of ​​business, which will maximize development. It is also important to monitor the need for governance reform.

Within the framework of management, it is customary to distinguish the following types of organizational structures:

• linear functional;
• divisional;
• matrix.

Each type has its own advantages and disadvantages and shows good results when it matches the characteristics of the business and the strategy of the enterprise. Let's take a closer look at the models.

Linear-functional

The linear-functional structure of a company with a developed network of branches is usually presented in the following form (Fig. 1). There is a department in the central office that manages the activities of the branches. Any manager is responsible for the work and financial performance of one or more departments.

Heads of regional branches (Fig. 2) are usually not given much authority: they collect the proposals of subordinate departments and implement them through other departments of the central office. A similar organizational structure most acceptable at the initial stage of the company's expansion into the regions, when only the first branches appear. With an increase in the number of branches, the efficiency of the linear-functional structure decreases: the speed of reaction to the requests of branches decreases, innovations are almost not used, the mobility of branches is lost, which is of great importance for a highly competitive market.

Moreover, this management model is suitable for companies with a small assortment of goods. In this case, the list of problems solved by the branches and the sales system have some similarities and do not need to use different approaches. The linear-functional management structure will best fit into a company with an initial stage of regional network development.

This branch management scheme is used more by organizations that adhere to a leadership strategy that is ensured by a low cost. The best linear-functional structure is based on the principles of rationality and economy; It is distinguished by strong, centralized power, a formal reporting system, strong control and a priority of vertical ties.

Divisional structure

A divisional structure (Fig. 3) is preferable when an organization enters fundamentally new markets. This does not mean geographical expansion, but other commodity and food markets. Recently a key domestic operator cellular took a similar form of management. The main principle of the selection was the specificity of the markets. For the established Moscow market, the goal was to increase customer loyalty and increase sales (by increasing voice traffic and introducing new services). Activities in the regions were aimed at increasing the subscriber network or penetrating the market. According to the declared directions, 2 divisions were created: Moscow and regional.

If such a structure is applied, a “mini-head” office is formed in the divisions; accordingly, the costs of management personnel increase and the costs of duplicating regional programs may increase. At the same time, such a scheme for managing branches presupposes a certain autonomy of division directors and a corresponding delegation of decision-making in many aspects. Narrowing the spectrum of delegated powers is common mistake during the formation of this structure.

Many Fortune 500 businesses have a divisional management structure. Many serious market players use this management scheme when developing regional branches. In addition, it is perfect for organizations that provide a significant range of products. The main advantage of the divisional structure is the decentralization of management, as a result of which it increases its flexibility. The downside of the scheme is the reduced economies of scale inherent in functional structure: each divisional office creates its own management apparatus and its own promotion programs. Most often, divisions are based on the most reliable subsidiaries with good leadership and excellent development indicators.

Matrix structure

A number of organizations use a matrix structure for managing regional branches (Fig. 4). This form of organization is not typical for domestic companies that form their own network of branches.

The main reason for the low popularity of this scheme is the dual power inherent in the matrix structure. Dual power negatively affects the company's personnel and, given the historical characteristics of Russia, it is difficult to take root in our country.

In this structure, each employee of the branch is subordinate not only to his immediate superior, but also to the head of a certain functional unit of the central office. The effectiveness of such a scheme is possible if the levels of interaction of each employee are clearly fixed in the regulations in the process of solving work problems. The central office should monitor the improvement of communication and conflict resolution skills and organize team building programs through training for all staff, including branches.

The advantage of the matrix structure is the ability to control the workload of specialists and significant flexibility in responding to fluctuations in the local market. Most often, the responsibility for the results of the work of the branch is assigned to the head, who is able to make decisions in the branch subordinate to him. Relying on practical experience, we can say that the matrix management structure is more suitable for the service sector and medium-sized enterprises.

There is a certain pattern: the leaders of organizations using this management model are usually charismatic individuals and devote a lot of energy to maintaining the balance of power within the enterprise. This is an important point in the "legitimizing conflict" structure.

5 tips on how to monitor the work of remote workers

Tip 1: Leave the management of the branch to the salesperson administrator

For successful development branch, he definitely needs a competent leader. Having picked up a competent person for this place professional specialist able to independently move towards the goals of the company, success will not keep itself waiting. What is the difference between such an employee? This is a person who is able to solve any difficult situation in sales and at the same time demonstrates competent management of the company and personnel.

Of course, a contradiction arises, because sales people are usually bad managers, restless, unable to plan and analyze, i.e. do not have the qualities of a successful leader. At the same time, the "pure administrator", who excels in management and control, is not able to effectively carry out sales and negotiations.

The secret lies in 2 components of a person: personality and skills. The personality is stable and little subject to transformation, and skills can be influenced. It is much easier to mold a salesperson into a successful leader than it is to create an effective salesperson from a bureaucrat administrator. The best chapter remote branch only the seller-administrator is able to appear. Such a combination of skills in one person will certainly lead to success.

Tip 2: Control is of the highest importance in the system of working with branches

Only what you are able to control can be assigned to subordinates. What is included in the concept of "sales control"?

The owners constantly monitor the volume of revenue, gross profit and other indicators. In addition, oversight includes the ability to get things done so that the branch meets the sales targets on a regular basis. This function is performed by you. Avoiding responsibility for sales and giving the affiliate "freedom" - such management will not lead to anything good.

Sales control is:

• numbers;
• work system (technology);
• salesmanship.

These are the 3 main parameters that need mandatory control, no matter how difficult it turns out to be. The list of indicators for control is determined by the specifics of the business. Keep track of sales, gross margins, margin percentages, overdue receivables, appointments, calls, and more. Use all the possibilities of CRM.

Tip 3: Don't Be Addicted to Remote Employees

By analyzing remote sales and the system of interaction with branches, empower the managing organization with a wide range of functions. The existence of a central office with 3 or more branches is an important necessity. And even if it is only 3 employees under your leadership, they should be. In addition, you should create a team or department responsible for the strategy, control and activities of the branch network.

Try to perform the maximum number of functions remotely: submit reports, make calls on requests, plan delivery routes, study customer satisfaction. This will eliminate dependence on remote workers. Any violation of them will not lead to catastrophic consequences.

Tip 4: act as an auditor

Revision is the first thing in the system of working with branches. In fact, many employees have a good attitude towards good reviews. To do this, it is necessary to organize the revision in such a way that it becomes understandable and expected. Then the fear of her will disappear, and the workers will show their achievements. Introduce competition between affiliates in terms of audit metrics, and then the spirit of competition and a thirst for victory will awaken among the employees in the branches. It should be remembered that the purpose of such an audit is not to identify violations, but to stimulate the achievement of certain indicators and adherence to standards.

During the audit, any indicators can be checked: documents, appearance staff, cash discipline, presence of marketing materials, indicators of transport meters, customer satisfaction, number and quality of meetings with customers, etc. If you want to be successful for the branch, develop checklists in all areas and carry out regular checks.

Tip 5: Maintain Your Partnership in Relationships

Activity in a small company has its own specifics, when the team is a single whole, and often friends. This climate is comfortable for the owner. He can turn to any employee, talk to him, smile, slap on the shoulder, and the work will boil.

Branch office management and communication with remote employees you cannot build on friendship. To manage employees, it is important to clearly monitor the state and mood of the staff. With remote guidance, this is not possible. We see workers once every 3 months and cannot clearly differentiate their condition by external manifestations. In this regard, for remote workers, a certain motivation system should be developed that gives high pay for significant achievements. A clear system of work and adherence to existing standards will lead an employee to success. But remember that you are not friends. The employee does his job according to the rules - you accept, control and pay. If this balance is violated, you can lose control and, as a result, lose the branch.

In the situation of development of remote sales, you should establish your own rules of the game. Otherwise, employees will form the rules themselves, and you will have to follow them.

What are the problems of branch management

Rapidly developing enterprises with a large ramified branch network are bound to encounter difficulties in managing remote divisions. Geographically dispersed divisions that are not connected to each other cause a wide range of problems.

Aspects influencing the effectiveness of branch management:

1. Lack of data on the situation in the remote unit.
2. High independence in operational decision-making. It is the result of poor awareness: it is faster to decide for yourself non-standard situation on the spot than to go through the stages of the accepted scheme of interaction with the remote management.
3. The complexity of personnel control and the formation of business processes.

The methods of influence of managers of remote divisions practically coincide with the methods of managers who have employees “at hand”. But the ways in which these methods are used are different. This is partly due to the fact that many difficulties are easier to correct with full-time management. the managing manager has a complete set of information.

Improving branch management through automation and centralization

Evaluating the work of remote divisions, the analysis of the structure of the balance sheets of the branches and their financial indicators is carried out, the quality and composition of the client base of the branches and the specifics of its development are determined. In the process of making managerial decisions, the personnel structure of the branch and its qualifications are taken into account. Usually, such data are provided in the management accounts of the branch, formed in accordance with a predetermined form. At the same time, many managers find themselves in a situation when such important information for work arrives too late or with inadequate quality and content of management reporting. In addition, when generating reports in branches, accidental errors or deliberate distortion of management reporting indicators are often made.

To overcome this problem, the central office should both analyze the data on the work of branches, and prepare them, providing the branches exclusively with the implementation of the decisions of the head office and the submission of primary data on the operations performed.

It is possible to increase the efficiency of making managerial decisions with the centralized management of the branch business. Then the quality of decisions will be much higher, since they will be based on real data on the work of branches.

Modern Information Technology make it possible to obtain the maximum quality and minimum cost of work in the case of centralized management of branches. Such technologies rely on the use of a corporate data warehouse and a system for automated daily collection of primary data on operations performed from branches. They make it possible to form a single business day from separate “operating days” of branches and eliminate outdated ineffective methods of data collection: using paper reports and faxes, sending ready-made reports using Email.

The centralized management of branches can be established subject to a number of conditions:

1. Adopt the same work rules for all branches. For this purpose, a centralized maintenance of regulatory and reference information should be formed at the head office. First of all, you should create and keep up-to-date the chart of accounts of all branches (register the rules for opening accounts and making transactions for branches). Next, we define the rules for classifying customers, types of loans, risk groups, etc. All this will be applied by the branches when processing the transaction documents. It will also be important to maintain reference books of types of currencies, securities, rates and quotes, which will be required to carry out transactions. The specified centrally assigned information goes further to the branches.

2. Every day to accumulate complete information about the work of branches. Branches on the basis of the normative and reference information created and provided from above carry out their activities. With a certain frequency, at least once a day, they send primary information about their operations to the central office. This includes: new contracts, customer and personal account cards, payment documents, transactions, etc. As a result, data on the work of branches is generated. This process, similar to the transfer of reference information to the branches, should be carried out automatically.

3. To monitor the implementation of the rules of activity every day. Daily monitoring of compliance with the rules in the presence of an organization's data warehouse does not present any particular difficulties, since automatic control of the content and integrity of the information coming from the branches is carried out. It also opens accounts, makes transactions and analyzes the balance, standards and limits. If errors are detected in the activities of branches, the system promptly indicates them to the responsible employees of the head office. As a result, they bring information about existing violations to the branch in order to correct them before the end of the working day. This process of day-to-day control can be carried out most effectively if special techniques and automatic procedures are used.

4. Constantly assess the work of the branches. Enterprise managers who manage the operation of branches should compare the data of the current period of the branches' activity with the previous ones, tracking changes in the branch in a positive or negative direction for the specified period. You can also compare the performance of branches with each other, assigning them places depending on the performance indicators. With all the data you need, analytical techniques, and specialized OLAP tools, branch office analysis can be performed at any frequency and for any parameter, which significantly improves management efficiency.

The use of the technology of centralized management of branches with the use of the company's data warehouse increases the overall technological level of interaction between the head office and branches, and reduces the company's dependence on employees. The technology of centralized management of branches allows you to “see branches as under a microscope”.

1. I (the Client), I hereby agree to the processing of my personal data received from me in the course of sending an application for information and consulting services / admission to training in educational programs.

2. I confirm that the number I have provided mobile phone is mine personal number phone number allocated to me by the mobile operator, and I am ready to bear responsibility for the negative consequences caused by the indication by me of a mobile phone number belonging to another person.

The Group of Companies includes:
1. LLC "MBSH", legal address: 119334, Moscow, Leninsky prospect, 38 A.
2. ANO DPO "MOSCOW BUSINESS SCHOOL", legal address: 119334, Moscow, Leninsky prospect, 38 A.

3. Within the framework of this agreement, "personal data" means:
Personal data that the Client provides about himself consciously and independently when filling out an Application for training / receiving information and consulting services on the pages of the Site of the Group of Companies
(namely: surname, first name, patronymic (if any), year of birth, level of education of the Client, chosen training program, city of residence, mobile phone number, e-mail address).

4. Client - an individual (a person who is a legal representative natural person under the age of 18, in accordance with the legislation of the Russian Federation), who filled out an Application for training / information and consulting services on the Site of the Group of Companies, thus expressing his intention to use the educational / information and consulting services of the Group of Companies.

5. Group of companies in general case does not verify the accuracy of the personal data provided by the Client, and does not exercise control over his legal capacity. However, the Group of Companies assumes that the Client provides reliable and sufficient personal information on the issues proposed in the registration form (Application form) and maintains this information up to date.

6. The group of companies collects and stores only those personal data that are necessary for admission to training / receiving information and consulting services from the Group of companies and organizing the provision of educational / information and consulting services (execution of agreements and contracts with the Client).

7. The collected information allows sending information in the form of e-mails and SMS messages via communication channels (SMS distribution) to the e-mail address and mobile phone number specified by the Client for the purpose of receiving services for the Group of Companies, organizing the educational process, sending important notices, such as changes to the terms, conditions and policies of the Group of Companies. Also, such information is necessary to promptly inform the Client about all changes in the conditions for the provision of information and consulting services and the organization of the educational and admission process for training in the Group of Companies, informing the Client about upcoming promotions, upcoming events and other events of the Group of Companies by sending him mailings and information messages, as well as for the purpose of identifying the party under agreements and contracts with the Group of Companies, communication with the Client, including sending notifications, requests and information regarding the provision of services, as well as processing requests and applications from the Client.

8. When working with the personal data of the Client, the Group of Companies is guided by Federal law RF No. 152-ФЗ dated July 27, 2006. "About personal data".

9. I am informed that at any time I can refuse to receive information to the e-mail address by sending an e-mail to the address:. It is also possible to refuse to receive information by e-mail at any time by clicking on the "Unsubscribe" link at the bottom of the letter.

10. I have been informed that at any time I can refuse to receive an SMS message to my specified mobile phone number by sending an e-mail to the address:

11. The group of companies takes the necessary and sufficient organizational and technical measures to protect the personal data of the Client from unauthorized or accidental access, destruction, alteration, blocking, copying, distribution, as well as from other illegal actions of third parties with it.

12. The law of the Russian Federation shall apply to this agreement and the relationship between the Client and the Group of Companies arising in connection with the application of the agreement.

13. With this agreement, I confirm that I am over 18 years old and accept the conditions specified in the text of this agreement, and also give my full voluntary consent to the processing of my personal data.

14. This agreement governing the relationship between the Client and the Group of Companies is valid throughout the entire period of the provision of the Services and the access of the Client to the personalized services of the Site of the Group of Companies.

LLC MBSH legal address: 119334, Moscow, Leninsky prospect, 38 A.
LLC MBSh Consulting legal address: 119331, Moscow, Vernadsky prospect, 29, office 520.
CHUDPO "MOSCOW BUSINESS SCHOOL - SEMINARS", legal address: 119334, Moscow, Leninsky prospect, 38 A.

 

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