McKinsey: Looking back on your tenure so far, is there anything you wish youd done differently? President and Chief Executive Officer at McDonald's Corporation 1y . (200003), Boston Consulting Group In this role she was accountable for all external reporting and SEC compliance, accounting technical guidance and accounting policies. When you eat as much McDonalds as I do, you think in day parts. In this role, he worked closely with our business leaders and franchisees to identify innovative new ideas and best practices to accelerate system growth. In addition to serving on the McDonalds Board of Directors, he is also a trustee of Ronald McDonald House Charities. In this role, he worked closely with our business leaders and franchisees to identify innovative new ideas and best practices to accelerate system growth. In this current environment, all companies are being asked to define their mission, their higher purpose. Second, what if youre a loyal customer? Were going to be transparent with people. Given your particular focus on those factors, even before you became CEO, its almost as if you saw the pandemic coming. But far more often, its a huge benefit because people just love to talk about McDonalds, and thats something we should lean into. Prior to becoming CEO, Chris served as President of McDonalds USA, leading the business operations of approximately 14,000 McDonalds restaurants throughout the United States. As President and CEO of McDonalds, Chris leads the millions of dedicated McFamily members who help create delicious, feel-good moments for everyone. In addition to Insitu, which is now a wholly-owned subsidiary of Boeing, Heidi held leadership roles in human resources and communications at Northrop Grumman and TRWs automotive and defense business. Controller Group supporting key business initiatives and five years in the Corporate Controller Group in both external reporting and Europe management reporting roles where she was a 2001 McDonalds Presidents Award winner. In this role, she has led several strategic initiatives; from the Future of Work - inclusive of the COVID-19 response and return to office for corporate staff to an HR Transformation to modernize service delivery and improve the employee experience. They wantand expectMcDonalds to be a force for good. And under Mr. Kempczinskis leadership, McDonalds is committed to delivering on that expectationbeing defined not just by what they do, but how they do it. Have events or experiences of the last year in any way altered or broadened your perspective on leadership?Definitely one of the things thats gained focus is the need for communication. By using this website, you accept the use of cookies. As you navigated a global pandemic and the rise of extreme social unrest during your first year as CEO of McDonalds, did any particular principle or philosophy guide you?Its been important to me that were always connecting the decisions that we make back to what we stand for as a company. Senior Vice President and Chief People Officer, IOM. Prior to, at Kellogg, Brian established the companys global Digital Marketing foundation, which allowed Kellogg to build relationships with consumers in a targeted and personalized way, including the creation of its loyalty program Kellogg Family Rewards. Steve was at the company for 20 years. As Chief Marketing Officer for the Global Nutrition portfolio, she oversaw brand positioning and innovation for Quaker, Tropicana, Gatorade and Naked. The onion flavor gets sort of seared into the beef. In India, you have the tikka masala burger. I wanted to step back and just think about where we could actually make a difference. A common thing that I will hear from people who are not in the industry is that retails a dead-end job. They also work closely with McDonalds Global Impact Team to implement actions that drive resilience and brand trust in service of the companys purpose to feed and foster communities. She returned to the McFamily in 2022 to accelerate the next phase of the IOM segments growth, elevating our marketing and creative excellence while enhancing our crew and customer experience to unlock new growth opportunities in the IOMs. (Laughs.). Ians team ensures the optimal allocation of resources, and at the same time, effectively manages risk through strong controls and fiscal discipline. In his previous role, John wasManaging Director of McDonald'sSpainfor two years, delivering aperiod ofexceptional results. Its been helpful for us just to keep people in the loop, informed, focused forward. And what are things that are best left to othersgovernments, other companies, or nonprofits? In this role, Manu oversees the companys Data Analytics, Digital Customer Engagement, Global Marketing and Global Restaurant Development and Restaurant Solutions teams, creating a more authentic and compelling experience at each physical and digital McDonalds customer touchpoint. She is a Henry Crown Fellow of the Aspen Institute. But what so impressed me about him was that he was firmly focused on the future, on moving forward. Corporate Senior Vice President, International Operated Markets, Emilee DeMartino Never miss an insight. Please try again later. Keeping McDonalds relevant: An interview with CEO Chris Kempczinski. Manu is fluent in Dutch, English, French and German. new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0], I get asked sometimes, What exactly do you do as CEO of McDonalds? It can seem as though the system runs itself. The McDonalds brand is well known around the world. I think for us, to be honest, we just had to catch up. Regardless of the delivery channel deployed, though, we always focus on our customers experiences because customer satisfaction is critical to us. We also need to be operating in the social-media space much more dynamically. McKinsey: Might there come a time when your business is more than just selling burgers and Reminding people: Here are the values that have defined McDonalds over the years and, based on those values, heres why were going to make these decisions. Jill holds a BA in Business Studies from Brighton University, United Kingdom, and a Chartered Institute of Marketing Diploma. Customers are seeking brands that reflect their values and the line between the corporate brand and the consumer-facing brand is blurring.. Chris Kempczinski is CEO of McDonalds. Catherine lives in Illinois with her husband Brian Giffin and their four children. I needed to learn and I needed to listen quite a bit. So says Chris Kempczinski, President and CEO of McDonald's Corporation, in this interview with Dr. Lori Esposito Murray, President of the Committee for Economic Development, the public policy center of The Conference Board (CED). We also put the onions actually on the grill as opposed to putting the onions on at the dressing table. Theres a whole bunch of other areas that arent as relevant to us where we shouldnt be lending our voice. In Europe, dine-in was 65 percent of our business in some markets; it might be less postpandemic. All Rights Reserved. What are some of your boldest predictions for McDonalds over the next ten years? As Global Chief Marketing Officer, Morgan Flatley leads the development and execution of bold marketing strategies to create stronger customer connections around the world. From 2015 to 2019, Manu served as Managing Director in the Netherlands, during which the region generated significant growth in sales, guest counts, Operating Income and Owner Operator Cash Flow. Manu studied art and design at the Royal Academy of Fine Arts in Antwerp, Belgium. Speaking during the company's 2017 investor meeting, Kempczinski noted that customers were spending more money at renovated stores. A US Army Veteran, he served as a Supply Sergeant with deployments to Afghanistan and Uzbekistan. In this role, he was responsible for leading global strategic planning and was instrumental in the rapid scaling of McDelivery from a $1 billion business to more than $4 billion in 3 years. Chris Kempczinski: Prior to 2017, delivery was a $1 billion business for us, largely in Asia. Senior Vice President and Chief People Officer, IOM, Bethany Tate Cornell To manage that risk, though, you have to make sure your creative teams are nimble. Before stepping into his current role, Jo led the IDL European Business Unit from 2015 until 2018. Chris joined McDonald's in 2015 as Executive Vice President, Strategy, Business Development and Innovation. Just hours after McDonald's had released what Kempczinski, 51, called possibly the "worst" quarterly results in the history of the companysales dropped 24% the CEO joined TIME for a video. 5 things you need to know. Bethany is a graduate of Indiana University of Pennsylvania (IUP) and Ithaca College, where she earned a Bachelor of Science degree in education and communications media and a Master of Science in corporate communications and instructional design. Thats why in China, you find things like bubble tea, which has little tapioca droplets in it. Please email us at: More than 30,000 McDonalds locations around the world now offer delivery. During his time as CFO, the company increased systemwide sales by over 25% to more than $100 billion, increased the number of restaurants worldwide by more than 10% to nearly 40,000 restaurants, and returned over $50 billion to shareholders through dividends and share repurchases. Partnering with stakeholders across the business and beyond, Jennys team serves as stewards of McDonalds global ESG commitments, which leverage the brands scale and presence in over 39,000 local communities worldwide to foster meaningful change at scale, while addressing some of the most pressing social and environmental challenges facing the world and the company today. We did recognize three or four years ago that delivery was going to be a huge opportunity for us. Ive taken different lessons from all the leaders Ive worked for and admired. Chris Kempczinski: This is the fun part of the jobto imagine the what ifs. I think about it this way: in the markets that we serve, about 80 percent of the population will go to a McDonalds at least once a year. Its not about you. Im also a pretty voracious reader, and Im constantly looking for things that could be helpful to me in my role at McDonalds. He was appointed Vice President Finance of the UK business 2008. Maybe there is a lane for our loyal customers that allows them to go through in a faster way. She drove the democratization of learning building the Boeing Digital Campus providing digitally accessible learning and micro certifications through partnership with Degreed.com reaching 51K active global users. In this role she leads Corporate Employee Relations, Diversity, Equity, and Inclusion, Total Rewards, and Talent Management among other areas. He also was an instructor and faculty administrator for the University of Phoenix for several years. Before joining McDonalds, Desiree spent more than three years as General Counsel and Corporate Secretary at Boston Scientific Corporation, where she provided global legal leadership across all of its businesses, regions and functions. This includes loyalty which is now in nearly 50 markets introducing new innovations like artificial intelligence and automated order taking, and modernizing data systems to move faster while improving the experience for customers and crew. Reggie began his career at McDonalds in November 2020. You also have to acknowledge there are things that we dont know. Through trying that product, you get a sense of how the kitchens running. Every time you go to a new organization, you take a risk with that. Where do we have credibility to speak and stand behind our values and commitments? Manu began his career at McDonalds in 2001 as a Field Service Consultant in Belgium. Most recently at Boeing, Bethany was Vice President of Leadership, Learning and Organizational Capability (LLOC), where she was responsible for implementing the enterprise learning, culture transformation and workforce development strategies in support of Boeings business imperatives for 150K employees in 65 countries. Mark has also held roles in Global Insights, Global Menu Strategy, and US Strategy & Insights. We also put the onions actually on the grill as opposed to putting the onions on at the dressing table. Mr. Kempczinski wasnt new to the company but unlike previous chief executives, he hadnt joined the restaurant giant decades earlier, either. The things you just referenced there are about us getting more aggressive, getting more out of our investment and then embracing our role in culture. Whether youre the CEO or youre working a fry station, if you fail to live up to the values, then you cant stay in the system. In July, in response to the killing of George Floyd, McDonalds posted a video titled, They were one of us. How do you view the responsibility of brands such as McDonalds to take a stand on social issues?It all connects to what you stand for as a company. In 2010, Jill became the Managing Director for our UK business and President, Northern Europe, sustaining strong performance across all metrics of our company, including a strengthened brand, a reinvigorated employee experience and double-digit sales growth, all while fostering successful franchisee performance and engagement. Full Bio Lori Esposito Murray President CED Everybody recognizes the golden arches. That is our primary responsibility, so we try to stay pretty focused. Outside of McDonalds, she actively supports causes that care for the homeless, under-served children, Special Olympics and veterans having proudly served our country. HACER Scholarships for Hispanic Students, Do Not Sell or Share My Personal Information. In this role, he worked closely with our business leaders and franchisees to identify innovative new ideas and best practices to accelerate system growth. We had too many instances where a country or market was almost making up the playbook as they went along, and its because we werent as good as we could have been in sharing best practices. So I think our reticence to publicize those things early on was a missed opportunity. In July 2015, he was appointed Chief Marketing Officer for the High Growth MarketsSegment, comprisingninemarkets across Asia and Europe. During his tenure as president of McDonald's U.S. footprint, Kempczinski oversaw the business operations of around 14,000 stores. We have a responsibility not only to serve great food, but to make it responsibly and to enrich the communities in which we operate. In addition, Amy is licensed to practice law in Illinois. My answer is: ensuring the relevance of the brand. After Kempczinski's comments ignited a political firestorm, McDonald's pledged $3.5 million to 40 neighborhood organizations. While overseeing these 29 European markets and their more than 1,750 restaurants, Jo established a new structure and team for the European organization, resulting in consistently strong sales results. It goes back to credibility. He held progressive leadership roles, includingMarketing Director for the Southern Europe regionandVice-President of Food, Strategy & Insight for McDonalds Europe, overseeing Food Strategy & Development, as well as guiding business and brand knowledge across the European markets. Our cash flow went down about $2 billion in 2020. When youve built your business model on diversity and providing opportunities for everyone, and suddenly a human rights issue comes into the public discussion, it would have been a huge miss for us to not put our voice out there. COVIDs a perfect example of that. Manu has been part of the McDonalds System for more than 20 years, with extensive knowledge of the companys global customer base and deep understanding of the needs of McDonalds customers. Pivot to lunch, I always get the fries. Weve seen our customer service scores go up across the globe. As Chief Communications Officer at McDonalds, Michael Gonda is responsible for driving integrated communications strategies that focus on protecting and advancing the reputation of the company globally. Ian has spent more than 25 years at McDonalds leading markets and functions globally. I stepped up my communication to make sure that our employees understood what our plan was to get through thisbut also to get a lot of feedback. As someone who eats at McDonalds daily, what is your favorite regular item at HQ?Youve got to double-click one moregive me a day part. We have a big advantage with 40,000 restaurants. Chris is a proud alumnus of both Duke University and Harvard Business School. It was a great reminder about the embedded cost of complexity in our P&L. How does the brand remain so cohesive while catering to local tastes? chris kempczinski leadership style. Chris has more than 25 years of experience working in premier global consumer companies. Her oversight includes strategies and cross-functional programs relating to food and planet impacts - climate action, nature-based solutions, nutrition, restaurant sustainability, packaging and circularity; and community and people impacts - human rights, corporate philanthropy, youth opportunity and volunteerism. They like to show me the latest thing that theyve got on the menu and Ill go with that. At the end of the year, we asked our employees, Did you feel supported in 2020? and over 90 percent said they felt well supported. Notably, as EVP, Chief Information Officer and Global Business Services at Cardinal Health, Brian completed one of the largest SAP implementations in the industry, to drive value throughout the company. What I found over time was that it was an incredibly generous organization. https://www.conference-board.org/events/CED-Distinguished-Leadership-Awards-DinnerFor more than a quarter century, the CED Distinguished Leadership Awards ha. Im very proud of having put our values front and center. What are your 2021 priorities for staying ahead and nimble?We call them the three Ds: Drive Thru, delivery, digital. But Im now a convert to the spicy. If they dont express a strong bias, I do the Quarter Pounder because thats a great product to calibrate around the world. We expect to roll out our loyalty program, called MyMcDonalds Rewards, in the US later this year and in all our major markets over the next couple of years. Signup for our newsletter to get notified about our next ride. In this current environment, all companies are being asked to define their mission, their higher purpose. He lives in Chicago, IL, with his wife and two kids. And at the time of Mr. Kempczinskis one-year anniversary in early November, McDonalds stock had spiked even above the year-earlier price when he took over as CEO. The more delivery locations you have, and each of our restaurants is a delivery location, the better you can make that experience. As you hear feedback, you need to pivot and respond appropriately. Whats this we hear about changes to your iconic burgers? I came in and I was very much the outsider. So, credit to the team for getting on that one early. He began his career in PR and marketing for Compaq Computer Corporation, first on the agency side and then in-house. Chris Kempczinski Leadership Style. Home; Categories. John W. Rogers, Jr., the Chairman and Co-CEO of Ariel Investments, introduces award honoree Chris Kempczinski, the President and CEO of McDonalds Corporation October 26, 2022 07:00 PM ET Marc N. Casper, the Chairman, President and CEO of Thermo Fisher Scientific, accepts the CED Distinguished Leadership Award. In July, in response to the killing of George Floyd, McDonalds posted a video titled, They were one of us. How do you view the responsibility of brands such as McDonalds to take a stand on social issues? One of our values is that we open our doors to everyone. Im a Filet-O-Fish-no-tartar-double-ketchup guy. Reminding people: Here are the values that have defined McDonalds over the years and, based on those values, heres why were going to make these decisions. Yet by the fourth quarter of 2020, the companys global systemwide salesat $25.8 billionhad fully recovered to its 2019 fourth-quarter sales. Definitely one of the things thats gained focus is the need for communication. His progression through the company has included responsibilities as Regional Financial Controller, Head of Business Strategy and Head of Commercial Finance. Chris Kempczinski: I admire how Amazon constantly talks about Day 1; I think thats a great orientation and mindset for us to have at McDonalds. A big part of that will be selling food, but we dont necessarily have to do that in a restaurant; there may be other ways to sell food. He also holds an MBA with honors from The University of Chicago. That was the direction that I gave to the system. The road to affordable autonomous mobility, What matters most? When you serve as many customers as we do, our customers are society. At Boeing, Heidi led initiatives for 160,000 employees across a $76 billion global enterprise and oversaw the companys leadership and learning, talent planning, employee and labor relations, total rewards, and diversity and inclusion initiatives. You know what a good Quarter Pounder should taste like. Our purpose is to feed and foster communities, now more than ever. And in many cases, it's that little bit of that odd juxtaposition that creates interest. Any franchisee reading this is going to make sure they suggest a new item because they dont want to be calibrated. 09 September 2020. Youre going to love those grilled onions. If we further build out a hybrid delivery model, do we let others, perhaps, ride on our delivery platform? Evidence had emerged that McDonalds then-CEO, Steve Easterbrook, had violated company policy and undermined company values. In both his work and personal life, Paul strongly believes in living by a lesson passed on from his Mum: Treat others the way you want to be treated yourself. So, are there things we can do to speed up the Drive Thru? President and CEO In early November, Brunswick Partner Jayne Rosefield, head of the firms Chicago office and Global Consumer Industries Practice, interviewed Mr. Kempczinski. Under her guidance, Boeing reimagined their HR model and transformed talent development and mobility system wide. Jo holds a Master ofScience in Applied Economics -EhsalBrussels,and is fluent in Dutch, French and English. All Rights Reserved. 65 years in business serving 65 million people a day (give or take). Im a product of the 90s. He lives in Chicago, IL, with his wife and two kids. In just four years, he had clearly made a mark. What defines McDonald's leadership is the knowledge that from a McDonald's executive to a McDonald's franchisee, corporate leadership strategy matters. Do Not Sell or Share My Personal Information. . The importance of [showing up] every day. As McDonalds Executive Vice President and Chief Customer Officer, Manu Steijaert leads the Customer Experience team focused on transforming how customers engage with the McDonalds Brand. McDonalds is not responsible for the content provided by third-party sites. In a recent interview with McKinseys Greg Kelly, Kempczinski discussed his tenure so far and what the next normal might look like for McDonalds. [3] In a Project leader and consultant So says Chris Kempczinski, President and CEO of McDonald's Corporation, in this interview with Dr. Lori Esposito Murray, President of the Committee for Economic Development, the public policy center of The Conference Board (CED). Everybody has a clear sense of it. Our executives preserve it. To me, there is nothing further from the truth than that. Chris is responsible for driving McDonalds growth strategy, Accelerating the Arches, and ensuring that the companys values are embedded throughout the system as the filter through which all our business decisions are made, bringing its corporate purposeto feed and foster communityto life. Its got to be about the company and the organization. I dont think we did enough to embrace how we are a part of culture, Mr. Kempczinski said in explaining the launch of the Travis Scott Meal, a wildly successful venture between McDonalds and the celebrated rapper. I hope so. The McDonalds brand is well known around the world. Chris Kempczinski is one of the dynamic leaders on The List of People Shaping Retails Future 2022 who will be celebrated at the NRF Foundation Honors. That led to the feed and foster community idea, because I did feel like thats a place that we have a very credible ability to make a difference. I dont think we did enough to embrace how we are a part of culture, Mr. Amid all else thats going on, you recently launched a purpose to feed and foster communities? Some delivery orders are, as you said, initiated directly on the sites of our delivery partners. As a working dad, Paul has consistently led conversations within the business and industry on the challenges of balancing a demanding work life with being a good husband, father, and friend. Cornell serves as an alumni board member and student mentor for Ithaca College Park School of Communications. Subscribed to {PRACTICE_NAME} email alerts. Put simply, he is a leader who at his core cares a lot., Inside McDonalds, Mr. Kempczinski wasted no time reminding employees, franchisees and suppliers that their pride in McDonalds was rooted in the values on which the company was founded-and reiterating his personal commitment to those values. My very first impression of Chris, and a belief I continue to hold today, is that he is a true values-based leader. Prior to this role, he was Vice President of Operations in France, overseeing the creation of the Experience of the Future program, which is currently deployed in all McDonalds restaurants worldwide. So, for example, with Drive Thru, the classic frustration for the customer is: How long is it going to take? She joined McDonalds from The Boeing Company, where she served as Senior Vice President of Human Resources since 2016. In this role, Kevin identifies and focuses on areas where we can continue to evolve our Accelerating the Arches growth strategy long into the future, and provides active counsel as teams execute against the strategy. In 2019, Desiree was named one of the most powerful women in corporate America by Black Enterprise Magazine, and in 2020, she was named as one of the top innovative General Counsels around the world by the Financial Times. Consultant in Belgium dont know autonomous mobility, what matters most wasnt new to company! Values-Based leader in PR and Marketing for Compaq Computer Corporation, first on grill., on moving forward in it pandemic coming open our doors to.... 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