Inside Management, Ltd.
In these trying economic times, strong leadership seems
elusive. But even during times such as these, there are principles
that you can adopt to help you become a better leader -- whether
it’s in the office, in your community or at home. There is no
better place to learn about these principles than McDonald’s, one
of the most highly regarded, well-run corporations in the world.
Even during this recession, McDonald’s stood out as one of the few
companies to post gains.
To learn more about the principles that define
leadership,
Bottom Line/Personaltalked with
management consultant Paul Facella, who spent the first 34 years of
his career at McDonald’s, rising from behind-the-counter cashier to
regional vice president. There he developed an understanding of the
company’s culture and the principles of leadership underlying it.
LEAD BY EXAMPLE
At McDonald’s, I learned that effective leaders model the behavior
that they want to see in others. This started first and foremost
with Ray Kroc, McDonald’s founder.
I saw humility and graciousness the first time I met Ray. He was
known for visiting with regional employees whenever he came to
town. Because I was the highest-ranking staff member in the New
York franchise where I worked, it was decided that I would dine
with him. I was a director of operations at the time, and so this
was quite an honor for me. In the limousine, Ray insisted on taking
the small "flip seat," offering me the most comfortable seat
because I was his guest.
Having the head of one of the most successful businesses in the
world put me at ease made a huge impression on me. I have never
forgotten his efforts to make an ordinary employee feel special. I
vowed to adopt this mind-set in my own life.
Even today, I always try to remember the impact I have on others.
When new members join an organization that I belong to, I go out of
my way to interact with and welcome them.
It was not unusual at McDonald’s to see leaders, such as Ray
himself, demonstrate what needed to be done. No task was too
humble, even for the boss.
During a visit to one New Jersey restaurant, Ray picked up
cigarette butts in the parking lot, setting the tone for
cleanliness. When executives were out in the field, they always
made a point of pitching in. If there was a problem, they would
jump behind the counter and help out.
The influence of Ray Kroc and others at McDonald’s has always
stayed with me. Even though I am a senior member and former officer
of my local volunteer fire department, I always try to be the first
to pick up a mop or a broom. When junior fire department members
see me doing this, they invariably pitch in as well.
FOSTER RELATIONSHIPS
Integrity is valued above all else at McDonald’s and permeates the
culture of the company. Everyone is treated as a partner. Some even
say it is like a surrogate family. There was an unprecedented level
of trust between people involved in all aspects of the business. We
called it the "three-legged stool." This meant that the
relationship between the three interdependent partners -- the
franchisees, the suppliers and the corporate staff -- was
understood to be vital to the company’s success.
Making the "three-legged stool" work often required taking gutsy
steps that might have seemed counterintuitive.
Example: There were times when Ray
told suppliers to raise their prices. He figured that for these
companies to become long-term partners, they needed to succeed, and
they wouldn’t if he forced them to accept profits that were too
low. This worked. When vendors increased profits, the result was
stronger loyalty to McDonald’s. Vendors had so much faith in
McDonald’s that they actually helped bail out the company in 1959,
when it was in trouble because of a real estate deal gone
bad.
This culture of trust was so strong that important agreements often
were made with a handshake rather than a written contract. Many
suppliers, now second- and third-generation businesses, haven’t had
a formal contract with the company for 50 years.
The high level of trust also reaped rewards for the company.
Because they felt such loyalty, suppliers, franchisees and
employees often suggested some of McDonald’s most successful
products and concepts.
Example: Herb Peterson, a franchise
owner, was the creator of the Egg McMuffin in 1973.
RAISE THE BAR
At McDonald’s, the company mantra is "Never be satisfied." We
always were looking to break our records, whether it was increasing
the number of customers or lowering costs.
To raise the bar as high as possible, we used metrics, or
measurements, to determine whether we had reached our goals. We
measured everything from hourly sales to how many bags of potatoes
were used each day. We made goals measurable. This especially
helped team members know what they were working toward and gave
them a sense of ownership. It also encouraged an environment of
friendly competition.
Example: When I was a manager, many
cashiers were coming up short each day, so I put up signs showing
just how over or under each cash register was. Within 24 hours,
every person’s total was perfect. No one wanted to be the lowest
performer in the store.
PROVIDE RECOGNITION
At McDonald’s, recognition is everywhere. The company makes it a
way of life, encouraging managers to recognize employees regularly.
Ray knew that there is no better way to inspire people. Even
front-line employees were recognized. You might think of a crew job
at McDonald’s -- working the kitchen -- as menial, but if you
worked hard, you were noticed and rewarded. For many, that meant
being promoted and advancing from crew to operator to the corporate
office.
Result: About 42% of the current
worldwide leadership at McDonald’s started out as crew members.
Whenever possible, employees at McDonald’s are recognized in public
with fanfare.
Example: To acknowledge a McDonald’s
staff attorney who had joined a national Hispanic organization, the
company president addressed the entire floor of the office to
congratulate him and then gave him an all-expenses-paid week at a
corporate retreat. The move also encouraged other employees to join
similar organizations.
At McDonald’s, recognition always is sincere, meaningful and
tailored to the individual -- whether it is a bonus, concert
tickets or time off. When I was an assistant manager, I was out one
evening with my future wife at a restaurant that I could barely
afford. I saw the owner/operator of the franchise where I worked.
We waved to each other. When I was ready to pay the check, I found
that he had paid for our dinner. At times such as these, I felt as
if I would do anything for the company.