Franchise Update Magazine Issue I, 2014 | Page 6

WOMEN AT 24 THE TOP Reflections from a Female CEO Therese Thilgen, CEO, Franchise Update Media W elcome to our inaugural issue of Franchise Update magazine’s Women at the Top special issue. In my 35-year career in franchising, it is only in the past 5 to 10 years that I have observed significantly more females at our annual conferences and at the IFA Annual Convention—especially females from the CEO and CMO suites. We last visited this topic in Franchise Update 10 years ago, when the number of women in the franchise C-suite was dismal, and decided we were well overdue to revisit it. With this first annual issue recognizing franchising’s “leading women,” we needed to establish a benchmark for ongoing research. Our goal was to find companies with women CEOs and presidents, rank the top 25 by system-wide revenues, and ask each executive the same series of questions. We almost got there with 24 profiles. Collectively, these 24 women executives oversee more than 17,000 units and $16 billion in annual system-wide revenue—and they plan to add $5 billion more in the next 5 years. That’s some powerful economic clout! We were unable to pin down three women executives for the profil es— each recognized as a leader in their industry. We have, however, included their companies in the rankings list on page 10. The three we missed are Sally Smith, CEO and president of Buffalo Wild Wings (#4); Susan Steen, CEO of Servpro (#5); and Tammy Whitworth, chair and CEO of Window World (#10). In a broader look at nearly 200 women-led franchises, we found their brands represented in more 4 Franchiseupdate ISS U E I, 2 0 1 4 Collectively, these 24 women executives oversee more than 17,000 units and $16 billion in annual system-wide revenue. than 25 categories, including automotive, food, pet care, and maintenance services (see page 11). Restaurants/fast casual/QSR accounted for 13.5 percent of the total, with child-related brands a close second at 13 percent, followed by health and fitness at 11.5 percent. Despite the progress women have made in ascending to franchising’s C-suites, it’s disappointing that their numbers remain so low. Research from 12 years ago revealed that 16 percent of all executives listed in UFOCs were women—a figure that included CEOs, presidents, COOs, CFOs, HR, training, and marketing. At that time, you could almost count with your fingers (and maybe toes) how many women were in the executive suite. Current research provided by Frandata reveals that 14 percent of franchisor CEOs and presidents now are women (based on FDDs with updated executive records through mid-2013). I see this as good news because the needle is moving in the right direction for women with the desire, fortitude, competency, character, and all else that is critical to leading a franchise organization. Ongoing research shows a strong business and financial case for advancing women to leadership positions. “Diverse business leadership and governance are correlated with stronger business performance, employee engagement, and innovation. Shareholders beware: a company with no women at the top is missing one of the biggest opportunities in the marketplace today,” said Ilene H. Lang, former president and CEO of Catalyst, a nonprofit that’s led the way in helping women become business leaders. Lang, who retired at the end of 2013, was a trailblazer herself, recognized as a pioneering woman high-tech and Internet executive before joining and leading Catalyst. As a female business owner myself for almost 27 years, my admiration runs deep for the women we’ve profiled: proven business leaders, many of them trailblazers as well. And while it’s exciting for me to