By Aaron Lynett
Each week, the Financial Post profiles one winner of Waterstone Human Capital’s 2008 10 Most Admired Corporate Cultures program. This week, Sanam Islam spoke with John Betts, chief executive of McDonald’s Canada, about how the company demonstrates excellence in the five areas used to evaluate companies nominated for the program.
Company: McDonald’s Canada
CEO: John Betts
Number of employees Canada: 77,000 plus
Annual revenue: N.A.
Vision and Leadership McDonald’s Canada’s corporate culture is aligned with its Plan to Win business model that states its “well-trained people will proudly provide fast and friendly service that delights customers.” Mr. Betts says the company’s leaders create an environment that makes it safe for employees, franchisees and suppliers to express their point of view.
“Some of the very best ideas come from the restaurants. If you encourage an open culture, it allows great ideas to bubble up,” he says. An online feature called Straight to John, where employees can send a question, feedback or comment directly to Mr. Betts, highlights the company’s open-door policy.
Cultural alignment, measurement and sustainability To align, measure and sustain corporate culture, there is regular communication between executives, managers and employees through e-mail, an intranet system, meetings, listening in sessions and departmental surveys.
McDonald’s also runs seven Hamburger universities to provide corporate training for employees at all levels. “If you can get strong alignment, people feel great and motivated, and give great business results,” Mr. Betts says.
Corporate Performance McDonald’s Canada’s revenue for 2007 increased 2%, following exceptional performance for the past several years, Mr. Betts says. “Business hasn’t been better. It’s really great to see staff motivated by the opportunities in front of them.”
He says at one time the company tried to do too many things with too many people, but the implementation of Plan to Win in 2003 boosted performance. Since then, it has offered more nutritional food choices, remodelled restaurants to boost employee and customer engagement, bought equipment that is focused on investing in technology to face challenges.
Rewards and recognition “None of us is as good as all of us,” says Mr. Betts, quoting McDonald’s founder Ray Kroc. “That emphasizes to me the value we put on people.”
McDonald’s Canada recognizes its employees in several ways, whether it’s with a thank you, cash bonuses, or programs such as the Golden Maple Leaf Awards, which reward exceptional performance. The best employees in their field are awarded up to $10,000 in post-secondary education scholarships. Corporate awards recognize top employees around the world, as well as the top 10% of Canadian managers.
Social responsibility In 2007, McDonald’s Canada raised more than $3.4-million in its bi-annual fundraising campaign called McHappy Day, which benefits children in need in local communities.
Another initiative involves franchisees contributing 10¢ from every Happy Meal sale to Ronald McDonald House Charities. The company runs 2 Ronald McDonald Houses across Canada.
In other areas, the fast food chain has reduced waste, implemented more environment- friendly practices and increased its offerings of nutritious foods.
