Win-Win Relationship Shift

A major corporation serving the weight loss industry
is forced to re-examine and restructure its business model

The Challenge

The company had based its business model on a "role model" concept. The service providers were recruited from the base of successful clients. The need and cost to train thousands of service providers was proving to be a major burden on resources. Further, internal struggles between business units were reaching a "breaking point."

Analysis

The Company was split between company-owned branches (about two-thirds) and franchises, and relationships between the two groups were civil at best. Conflicts between company-owned and franchise operating business units had reached an impasse over the development of nutrition and training programs for service providers. With both groups resisting collaboration, an impasse blocked any product innovation and threatened productivity.

In the past, they each independently hired outside experts to analyze situations. These previous attempts to propose viable solutions to issues failed. None of these proposals were ever executed, nor were any attempted on a company-wide basis. The only results were 20 large binders physically packed away in storage.

The HCp Solution

We facilitated a joint meeting of "opposing" parties and outlined a plan of action. A productivity study would be conducted across the company (a first!). A pilot would be conducted in a company owned branch first, but full disclosure of all results and activities were agreed to (another first!). Through the process of dialog, both "opposing" parties agreed to suspend their assumptions and beliefs about the other and strive for understanding, although not necessarily agreement. The process fostered open communication (another first!).

Results

The company relationships shifted from conflict and lack of trust to collaboration and understanding.