S1Ep285 Authentic Leadership and Keeping the Promise with Jason Hewlett

Relationship selling is becoming more valuable as technology makes sales communication easier to automate. AI can generate emails, research prospects, create content, and help sales teams operate faster than ever. But greater efficiency also creates more noise, and buyers have more tools to evaluate the people and companies trying to earn their business. That puts trust at a premium. Mark Hunter, known as "The Sales Hunter," has built his career around sales, prospecting, profitability, and trusted customer relationships. As a keynote speaker, author, and podcast host, his philosophy is rooted in a straightforward idea: sales should create value for the customer, and strong relationships can produce better business without forcing companies to compete primarily on price. As AI changes the mechanics of selling, those fundamentals may matter more than ever. Technology can help initiate contact, but a tool cannot substitute for credibility, judgment, accountability, or the confidence a buyer develops in someone they trust. Relationships Create a Competitive Advantage Businesses have access to an extraordinary number of tools for reaching potential customers. That accessibility can create the temptation to focus on volume. If 50 emails are not generating enough opportunities, send 500. If 500 are not enough, automate 5,000. More activity, however, does not automatically create more trust. "Relationships matter more than ever because of AI, because of all the tools," Mark said. "It's noisy out there." The opportunity for sales professionals is to become more intentional about the relationships surrounding their business. Mark recommends thinking about those relationships in circles. His framework starts with a small group of highly trusted customers, peers, and advocates. A larger circle includes people with whom there is already a meaningful relationship, followed by another group with the potential to move closer over time. The specific numbers can change depending on the organization. The principle does not. Not every contact deserves the same amount of time and attention. Sales teams often respond to declining performance by casting a wider net. Mark argues that the better response may be getting more focused. Understand the customers you serve best, identify what they value, and position the organization as an expert for that particular market. This is where AI can support relationship selling without replacing it. Technology can help research a market, identify patterns, organize information, and provide greater insight into customers. The salesperson still has to use that information to create a relevant human connection. The goal is not simply to become easier to find. It is to become someone worth continuing to do business with. Sales Activity Still Requires Personal Accountability One of the easiest traps in sales is confusing preparation with selling. Salespeople can spend hours updating a CRM, researching accounts, creating proposals, attending internal meetings, working on presentations, and engaging with social media. All of those activities may have value, but none necessarily means the salesperson is spending meaningful time with customers or prospects. Mark calls this customer-facing time, or CFT. He recommends measuring how much time salespeople actually spend interacting with customers and then separating that time between existing accounts and new prospects. That distinction matters because someone can appear busy while spending most of the week servicing accounts instead of creating new opportunities. Mark also uses a simple personal metric: five conversations each day with people who can buy from him, are currently working with him, or could refer business to him. He also aims to provide at least three referrals each week. Those measurements shift attention away from excuses and toward controllable activity. Salespeople cannot control the economy, competitors, corporate marketing budgets,

Franchise expansion can be exciting. New markets, new owners, and new locations create visible signs of momentum. But adding units is not necessarily the same thing as building a stronger franchise system. The difference often comes down to discipline. Successful franchise brands have to know when an opportunity fits, when it does not, and whether the people behind that opportunity are capable of representing the brand for years to come. That requires looking beyond the immediate transaction and considering how each decision affects franchisees, customers, operations, and the long-term health of the system. Kristie Kalinowski has spent her career developing that perspective. As Vice President of Franchise Development at Hand & Stone Massage and Facial Spa, she helps guide expansion for a franchise organization with hundreds of locations across the United States and Canada. Her previous experience with brands including Primrose Schools and Sylvan Learning has also given her the opportunity to work with several hundred franchise owners throughout her career. That experience points to an important principle for any growing organization: smarter franchise expansion is not about pursuing every available opportunity. It is about identifying the right ones. The Best Growth Decision May Be Saying No Growth creates pressure to say yes. A prospective franchise owner has capital. A promising location becomes available. A market appears underserved. Everyone sees another unit on the map and starts thinking about what it could mean. Experienced development leaders know that enthusiasm cannot replace evaluation. "Not every opportunity is the right opportunity for specific brands," Kristie said. A prospective franchise owner may believe a particular community desperately needs the concept. The location may even look attractive on the surface. But research may reveal that the market simply cannot support the business. That is when franchise development requires discipline. Strong brands are willing to walk away from opportunities that do not serve the larger system. The objective is not simply to increase unit count. Every new location has the potential to influence customer perception, franchisee satisfaction, operational resources, and the reputation of the entire brand. The same scrutiny applies to franchise owners. Capital is important, but having enough money to invest does not automatically make someone a strong operator. Kristie places significant emphasis on understanding why someone wants to become a franchise owner in the first place. "If I can better understand their why and match that to the company's really long-term goals and see if those align, then I know that we have a path forward." That alignment matters because franchise ownership is not a passive investment for most operators. Even owners who hire managers and build teams still need to remain engaged with the business. The better question is not simply, "Can this person buy the franchise?" It is, "Can this person build the business?" Franchise Expansion Depends on the Right People The quality of a franchise system ultimately depends on the people operating inside it. Hand & Stone has demonstrated that franchise expansion does not require every new owner to arrive with industry-specific experience. Kristie explained that owners can enter the system without a background in the spa industry because training and support are designed to help them understand the model and execute it effectively. That makes the characteristics of the owner even more important. A franchisee needs the willingness to follow a proven system while also taking responsibility for the performance of the local business. They need to build a team, engage with their community, understand their customers, and remain open to coaching. Multi-unit expansion raises the stakes further. Kristie shared that roughly 70 percent of Hand & Stone's system is multi-unit owned, although single-unit

Leadership from the front becomes increasingly important as an organization grows. More employees, more customers, more locations, and more layers of management can give leaders greater reach, but they can also create greater distance from what is actually happening inside the business. That distance can be dangerous. Reports, dashboards, meetings, and performance metrics provide valuable information, but they cannot always tell a leader how customers are being treated, where employees are struggling, or why a proven system is not producing the expected results. David Druker, President and CEO of The UPS Store Canada, has spent decades in retail and franchising and leads an organization with more than 400 locations across Canada. His perspective on leadership is shaped by experience on multiple sides of the business, including being an entrepreneur, franchise owner, multi-unit operator, and eventually a master franchisor. That experience reinforces a fundamental leadership principle: staying close enough to the business to understand reality while building a team capable of succeeding without the leader controlling everything. Strong Leaders Stay Close to the Business For David, leadership from the front means being active. He joked that his office chair probably has the "lowest mileage" of anyone's because he would rather be in the field than sitting in an office waiting for information to reach him. He regularly visits franchise locations because that is where the business actually happens. Leaders can analyze, plan, and make assumptions from headquarters, but being around employees, franchisees, and customers provides a different level of understanding. That does not mean a CEO should personally manage every decision. In fact, David emphasized the opposite. Leaders have to develop people and give them enough freedom to make decisions, experience mistakes, and become stronger. "You can't be in everybody's face," David said. "Human beings learn by making errors." This is one of the more difficult balances in leadership. Staying involved is not the same as micromanaging. Leadership from the front means remaining close enough to understand the business while giving capable people room to execute. As organizations grow, leaders need people who can take responsibility without waiting for permission at every turn. If everything depends on one person, the organization has not truly developed leadership capacity. Leadership Is Not a Popularity Contest Accountability becomes especially complicated in franchising because franchisees are independent business owners operating within a larger system. They have invested their own money and accepted responsibility for their businesses, but they have also agreed to follow a model designed to create consistency across the brand. David describes franchising as a collaborative sport. The franchisor provides systems, coaching, resources, marketing, operational support, and the strength of the brand. The franchisee still has to execute within the local business. Problems arise when someone begins believing that the proven system applies everywhere except their location. As David put it, "Your store isn't different. Your situation might be different." That distinction applies far beyond franchising. Leaders frequently encounter people who explain disappointing results entirely through external circumstances. Markets change. Competition increases. Costs rise. Technology disrupts established practices. Those factors are real, but strong leadership requires identifying what can still be controlled. Accountability means looking honestly at execution before blaming circumstances. It also means leaders must sometimes deliver messages people do not want to hear. "Leadership is not a popularity contest," David said. He described quality leadership as being built around honesty, integrity, and a willingness to tell people what they need to know rather than simply what they want to hear.

Responsible growth requires more than opening new locations, increasing revenue, or expanding into new markets. Growth has to strengthen the business, not simply make it bigger. That distinction becomes increasingly important as a company moves beyond its original founders and locations. What worked when the business was small may become too expensive, too complicated, or simply ineffective at scale. Leaders have to recognize those changes early enough to adapt without abandoning the qualities that made the company successful. Don Varady, CEO and Co-Founder of Clean Eatz, understands that evolution firsthand. What began as a small healthy-food café eventually developed into a franchise organization with more than 120 locations. The path was anything but perfectly mapped out. It involved starting over, taking significant risks, entering franchising without years of industry experience, making mistakes, changing the model, and becoming increasingly disciplined about how the company grows. That experience points to an important reality for any entrepreneur: responsible growth is not about having every answer before you begin. It is about building the ability to make better decisions as the business becomes more complex. Build the Business Around What Customers Value Clean Eatz did not begin with a master plan to create a national franchise system. Don and his wife and co-founder, Yvonne, were initially focused on building a healthy-food concept that served their local community. As the business developed, they found additional ways to serve customers. Today, the Clean Eatz model includes dine-in and carryout business, third-party delivery, rotating weekly meal plans, grab-and-go meals, catering, and marketplace products. A sister company also provides shipped meals and serves additional accounts outside traditional franchise territories. Those revenue streams matter, but the larger business principle is even more valuable. Growth can come from understanding what customers already value and finding additional ways to provide it. The grab-and-go component is a good example. It originated as a practical solution for excess food. Instead of allowing usable ingredients to go to waste, meals were prepared and frozen. Over time, that simple operational solution became another revenue stream and an important source of variety and convenience for customers. Responsible growth often develops this way. Leaders pay attention to what is happening inside the business, identify opportunities that fit the customer, and turn successful ideas into repeatable parts of the model. The key is alignment. Adding revenue streams simply because they might produce additional sales can create unnecessary complexity. The strongest opportunities reinforce the value the company already provides. Be Willing to Change What Used to Work One of the more difficult responsibilities of leadership is recognizing when yesterday's successful model no longer fits today's business environment. Clean Eatz faced that challenge with its restaurant prototype. Don explained that a model the company had used successfully for years eventually became less attractive as construction costs increased and real estate became more expensive. Rather than continuing to force the existing approach, the company began moving toward a tighter, smaller footprint that could reduce equipment and development costs for franchisees. That is responsible growth in practice. A strategy does not have to be a failure before it deserves to be reconsidered. Economic conditions change. Customer expectations change. Technology changes. Labor markets change. Real estate changes. What produced strong results five years ago may create unnecessary friction today. Leaders can become emotionally attached to systems they created, particularly when those systems were once successful. But scaling requires separating the principle behind the business from the specific way it has always been executed.

Franchise success depends on much more than selling franchises, opening locations, or generating leads. A franchise system can grow quickly on paper while problems develop underneath if franchisees are struggling, communication is weak, or the people involved stop trusting one another. For more than three decades, Brad Fishman, CEO of Fishman PR, has had a front-row seat to the franchise industry. He has worked alongside emerging brands, established franchisors, franchisees, suppliers, and industry leaders, giving him a broad perspective on what separates healthy franchise systems from those that struggle. One principle consistently rises above the others: franchise success is closely tied to the quality of the relationships throughout the system. Strong brands create an environment where franchisors and franchisees can succeed together, where communication flows both ways, and where decisions consider the long-term health of the entire organization. Growth Gets Easier When Franchisees Are Successful It is easy to assume that a franchise brand experiencing slower growth simply needs more leads. More prospects, more marketing, and more franchise sales can seem like the obvious solution. Brad looks at the issue differently. Before concentrating on generating more demand, leaders should consider whether the underlying opportunity is strong enough to support the people already investing in it. As Brad put it, "Growth becomes really easy when your franchisees are doing well." That idea gets to the heart of franchise success. Existing franchisees are more than operators within the system. Their experiences can become some of the strongest evidence that the business model works. When franchisees are profitable, engaged, and confident in the organization, they can become advocates for the brand. Prospective owners can speak with people who are actually operating the business and hear firsthand what the experience is like. The opposite is also true. Aggressively selling franchises before existing operators have a strong foundation can magnify weaknesses rather than solve them. More units do not automatically create a healthier franchise system. Brad's perspective is grounded in a simple question: Can the franchisee make money at this? That question should remain important even as a brand becomes larger and more sophisticated. Franchise success requires a model where both sides have the opportunity to achieve meaningful results. Relationships Create a Stronger Franchise System Franchising creates an unusual business relationship. Franchisees are independent business owners, but they are also operating within a larger brand and following a system established by the franchisor. That structure requires trust. Franchisors need franchisees to follow the model, protect the brand, and take responsibility for building their businesses locally. Franchisees need confidence that the franchisor is continuing to strengthen the system, provide appropriate support, and make decisions with the health of the network in mind. When either side begins viewing the relationship as purely transactional, tension can build quickly. Brad has spent decades watching franchise relationships develop across different brands and stages of growth. His experience reinforces the importance of building genuine connections throughout the franchise community, including among franchisors, franchisees, suppliers, advisors, and other industry professionals. Those relationships become especially valuable when leaders face challenges they have not encountered before. Instead of trying to solve every problem independently, they can draw on people who have already faced similar decisions. That willingness to share experience is one of franchising's greatest advantages. A leader may be encountering a particular growth challenge for the first time, but someone else in the franchise community has probably experienced a version of it before. Franchise success does