Page 141 - Everything I Know About Business I Learned

Lead by Example

and develop management for the system. Generally speaking,
McDonald’s worked hard to maintain a standard of excellence in
the company stores. And yet there were instances when these
stores were not run properly. They had a unique handicap: the
lack of an on-premise entrepreneur—one of the key components
of the three-legged stool. And even if they had great managers,
those were the ones who got promoted quickly, so the consistency
of management in those stores was always an issue. Many times
these stores were sold to owner/operators who put in their full-
time best efforts and therefore were more successful at pushing
the sales and operation levels up to their full potential. If we could
not lead by example, then we would sell them so they ran right.
It also showed that as a company we put our words into actions.
Selling these stores to franchisees was the ultimate backup plan.

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Leading by Example: Additional Benefits
Lead by example and you not only will model expectations but
also demonstrate the McDonald’s career path for staff members,
fostering company loyalty. This is evident everywhere at
McDonald’s. Currently, in fact:

• 33 percent of franchisees started out as crew.
• 42 percent of worldwide top management of the company
started their careers by serving customers.
• 63.6 percent of company restaurant managers started as
crew.
• 31.5 percent of operations and midmanagement level staff
started as crew.
• 18.4 percent of nonrestaurant staff above administrative
level started as crew.

In my tenure, the talented and capable rose through the ranks
like a badge of honor, if that was their desire. Role models sent