Franklin Covey Co., trading as FranklinCovey and based in Salt Lake City, Utah, is a provider of leadership, individual effectiveness, and business execution training and assessment services for organizations and individuals. The company was formed on May 30, 1997, as a result of merger between Hyrum W. Smith's Franklin Quest and Stephen R. Covey's Covey Leadership Center. Among other products, the company has marketed the FranklinCovey planning system, modeled in part on the writings of Benjamin Franklin, and The 7 Habits of Highly Effective People, based on Covey's research into leadership ethics. FC Organizational Products, LLC is the official licensee of FranklinCovey products and continues to produce paper planning products based on Covey's time management system. FranklinCovey also has sales channels in more than 120 countries worldwide.
|Formerly||Franklin Quest Co. and Covey Leadership Center|
Russell 2000 Component
|Industry||Business consulting, talent development, education and training services|
|Founded||May 30, 1997|
|Headquarters||Salt Lake City, Utah|
|Robert Whitman, Chairman/CEO |
Stephen Young, CFO/CAO/VP of Finance/Controller
Stephen R. Covey, co-founder
Hyrum W. Smith, co-founder
|Products||Leadership and individual effectiveness training|
|Revenue||$225.36 million USD (2019)|
FranklinCovey began as a result of separate entities founded by two different Utah entrepreneurs. Franklin Quest Co. was founded in Salt Lake City in 1983 by Hyrum W. Smith and was so named because of its focus on time management and the organizational principles based on Benjamin Franklin’s writings. Two years later, Stephen Covey formed Stephen R. Covey and Associates in Provo, Utah, to offer leadership seminars based on his ongoing research on The 7 Habits of Highly Effective People, a book he would publish four years later. Stephen R. Covey and Associates changed its name to the Covey Leadership Center the same year.
Franklin Quest and the Covey Leadership Center operated independently until January 22, 1997, when the two companies jointly announced a merger and public offering valued at $160 million. The merged entity took its new name, FranklinCovey, from the first part of Franklin Quest’s name and founder Stephen Covey’s last name. Both Smith and Covey remained as co-chairs of the new company’s board and remained so until their deaths in 2019 and 2012, respectively.
Effect of mergerEdit
Hyrum W. Smith, then the CEO of Franklin Quest, expected that the 1997 acquisition would increase market value through the synergistic combination of Covey's 7 Habits book with the Franklin Planner system and with the company's associated training courses. However, after the merger FranklinCovey's stock price dropped from around $20 per share to a low of under $1 per share by early 2003. As of June 1, 2006, it traded around $7 per share which has increased their purchase rate. From late 2009 to mid-2010, the stock price moved in the range $5.5 to $8. By 2019, the stock price improved to the $20 to $39 range with annual revenue reported at $225.36 million.
Products & servicesEdit
In the early 2000s, the company focused on marketing a variety of book and audio products based on Covey's 7 Habits material, as well as numerous titles by other FranklinCovey consultants.
The PlanPlus software division, which previously developed software plugins for Microsoft Outlook and standalone cloud-based planning tools, was sold to Complete XRM in 2006.
In 2008, FranklinCovey’s CEO, Bob Whitman, enacted a pivot for the company by selling off its popular paper products business and focusing instead on in-person training solutions and live-online training through the growing World Wide Web. The spinoff of the paper planner business became known as FC Organizational Products and maintains a contract with FranklinCovey as the authorized licensee of the brand name. Together the two companies still maintain one retail location, located at FranklinCovey's corporate campus in Salt Lake City.
Also in 2008, FranklinCovey's Education division launched The Leader in Me, a leadership curriculum solution for K-12 schools based on a book by the same title and which was coauthored by Stephen Covey and his son Sean Covey.
FranklinCovey has more recently focused on various in-person and live-online solutions for individuals and organizations, ranging from leadership development training, business execution planning, sales performance, and individual effectiveness training. Typically, the company will correspond their products with book launches written by FranklinCovey consultants or industry thought leaders. The company’s core training products it remains known for is The 7 Habits of Highly Effective People, Leading at the Speed of Trust, and The 4 Disciplines of Execution.
In 2016, FranklinCovey pivoted its business model to become primarily an online subscription company with its All Access Pass solution—effectively providing all of its training content available live, live-online or on-demand, for an annual fee.
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- Langer, Emily (July 16, 2012). "Stephen R. Covey dies; author of 'The 7 Habits of Highly Effective People' was 79". Washington Post. ISSN 0190-8286. Retrieved November 9, 2020.
- Urias, Lisa. "5 lessons from the barrio make coping with coronavirus - or anything else - easier". The Arizona Republic. Retrieved November 9, 2020.
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