McDonald’s has incorporated a framework entitled “Plan to Win” and has adapted five major components: (1) People, (2) Place, (3) Product, (4) Promotion and (5) Price. The goal for this framework is to promote effective business strategy along with global business. These five components have strengthened the company’s talent management system to secure a whole-base business strategy of satisfaction from the customer, to the employee to headquarters.
As the talent management system has been restructured, McDonald’s has especially taken interest in supporting the organization’s goal of meeting the global leadership of the business.To do so, they have implemented five key initiatives: (1) the redesign of the performance development system, (2) introduction of the talent review process for all officer-level positions, (3) the development and roll-out of a series of accelerated development programs beginning with the Leaders at potential individuals for officer level positions (4) the introduction of the McDonald’s Leadership Institute; and (5) the design and launch of the Global Leadership Development Program.The first initiative expounded on the expansion of rating performance and potential because senior management’s sense of continual successful would embrace a culture of entitlement. A stronger sense of urgency on the accountability of results, increased performance differentiation and consideration to change and innovation restructures the first initiative.
The second initiative resulted from the recognition of business reduction and the increase of global competition.Surveyed questions were asked to corporate leaders and senior management to initiate the talent review process. Strong and weak performers were weeded out and job moves were made throughout the company. With the vision of talent management transparency, the global Leadership at McDonald’s Program (LAMP) was designed to apply the third initiative. LAMP has been implemented to further develop the talent of the high performing officers as well as a means to drive results, shape culture and build leadership depth.
Because McDonald’s initiated opportunities for growth and advancement internally/externally, the company’s expectations and commitment were heightened. Continual feedback opportunities were available to the participants to assess the effectiveness of the business strategies to developing a stronger talent management system. In addition to LAMP, the fourth initiative implemented a McDonald’s Leadership Development Institute in 2006. The focus of this initiative is to impart perpetual development for every leader who is positioned at a director level and above.
Efforts geared from this institute are globally driven to guide leaders to maximize their prospective endeavors. Moreover, the educational institute focuses on innovative development opportunities, networking strategies, individual consulting, disclosure to other leaders in/out of the organization and imperative information on the company. The final initiative was created following the development of LAMP and McDonald’s Leadership Institute.The Global Leadership Development Program is the fifth initiative of McDonald’s developing an effective talent management system. Top talent such as highest potential officers and managing directors employed at McDonald’s are granted assistance to broaden their global leadership expectations.
It is intended to solidify a sturdy peer network as transition of leadership occurs over time. The make-up of this framework outlines McDonald’s talent management system.The initiative of McDonald’s recognizing that it is perfectly business appropriate to “break it-even if it is not broken” has been the reasoning for their heightened success (Adamy, 2008). McDonald’s decided to strengthen their talent management system even though the company was profiting much success at that point. There were some current management practices that were no longer relevant or even effective with the time-both locally and globally. The risk of assessing company flaws and ineffective practices from op executive officers’ point of view shows that the company is confident in what the organization goals and vision are; therefore, the need to impart a redesign of talent management birthed.
Another strength of the program is evoking an awareness of what the people wanted. Considering the consumer and what they value as quality even for a burger joint has been a major success factor for McDonald’s. Leaders who have solidified this opportunity have gained momentum from the consumer community.This variable as such has been a motivator to the CEO of McDonald’s to invest and focus in talent management because leaders’ maximum potential had not been challenged. Additionally, taking this challenge further, the company invested into a privately learning institution: Hamburger University as a means to accelerate development and a strategic global business understanding of how impacting high potential, committed and dedicated leaders can be if their talents were assessed and expanded properly.The expansion of educational opportunities through LAMP, Hamburger University and the McDonald’s Leadership Institute has supported this organization as becoming a globally competitive empire (Jenkins, 2008).
Furthermore, the efforts of investment, motivation and leadership confidence that McDonald’s invests in their employees is a win-win situation (MacArthur, 2001).Because McDonald’s show their top management officers the importance of their success personally as it will relatively benefit the company heightens the trusting relationship between top management and the officers positioned below them. The influx of intrinsic motivation will overpower any insecurities and uncertainties about their relevance to the company. Job security and professional development are two key factors that many employees lack due to expenses, lack of support etc.
At McDonald’s, leaders undergo many development services that will be beneficial in the present and future career.The effort of McDonald’s talent management has been restructured completed. The success rate of leadership quality and business strategy has increased revenue and customer satisfaction tremendously; however, there are areas in which McDonald’s should improve their talent management planning process. As stated before, the highest potential officers and managing directors are the primary employees that receive the strenuous and mandated training for improving their leadership and management skills.Nonetheless, Wiesman (2006) asserts that a form of talent motivation and execution should be subdued across the entire employee bracket- no matter their position or area of performance.
Additionally, the overall focus of employing global competitiveness and wider business strategy should allot the opportunity for all employees to experience some form of the talent management process.Stimulating the minds of the participants, McDonald’s would secure an intrinsic motivation of lower leveled employees to work harder and become more in tune in the possibility of moving up in the company and securing more store-leveled employees to foresee career opportunities within the company. Including every employee in an organized effort to strengthen their work performance will result with a confident morale and willingness to meet organizational short and long term goals.Another opportunity for improvement in the talent management planning process is ensuring that all technologies adopted in the organization are properly integrated. When this is considered, the decrease in network technology will require less use of Human Resource data and less complication of integrating HR processing and results 4.
Create at least two (2) more effective approaches to meet the talent management challenges in the future. An effective way of approach to meet the talent management challenges in the future is to ensure the recruitment process is not minimized because of the nature of a fast-food restaurant.Selecting high performance and self-motivated candidates through a job requirement and description will eliminate the journey of surveying leaders (Marquez, 2006). During every hiring process, McDonald’s should employ significantly high standards with an effort to remove the “average Joe” or the employee who does not uphold unique work ethic.The organizational goals and talent management plan should closely align with one another with the emphasis of each potential mployee meeting a standard to ensure the plan is executed.
These factors must be included to ensure performance management and the organization’s vision has room to validate the employee as well as the employee willfully aligning personal goals with previously established company goals. Another effective approach to meeting the talent management challenges in the future is implementing a system that evaluates employee performance over a time so the potential for advancement is not overshadowed.Assessing one’s ability to pursue a career in McDonald’s management team and undergo the talent management process should not cast away from current performance. Taking the time to assess potential leaders of this organization should not be based on an initial evaluation. The application of broad screening and the assessment of employee consistency, aspiration and performance should be evaluated for a long-term to help alleviate inaccurate assumptions from the current evaluation process.
