Audrey Williams-Lee
Senior Director,
U.S. Talent Management
Denise Broz
Director,
Global Talent Management
IQPC
Talent Management Conference
Tucson, Arizona
October 16, 2007
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McDonald’s at a Glance
System-wide Sales = $57B
Total Revenues $21B
$4.4B Operating Income
31,886 Restaurants in 118 markets
More than 70% of restaurants are operated
by franchisees and joint ventures
Serve 52 million customers per day
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Serving 52 Million Customers Daily
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Some Unexpected Succession
Needs...
Jack Greenberg resigns as CEO – Dec 2002
Jim Cantalupo becomes CEO – Jan 2003
Jim Cantalupo dies unexpectedly and Charlie Bell
named CEO – April 2004
Charlie Bell resigns due to illness – Nov 2004
Jim Skinner becomes CEO – Dec 2004
Four CEOs in 3 years!
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…in the Midst of Some Business
Challenges
First time ever reporting a loss (Q4 2002)
Jack Greenberg Resigns (December 2002)
– Stock price: $14.24
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McDonald’s Today
Through August 2007:
52 consecutive months and 17 consecutive
quarters of positive comparable sales
Stock price over $50
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Overview of Talent
Management @ McDonald’s
Established as a new department within Human
Resources in 2002
Initial focus on top 200 positions and the talent pool for
those positions
Expanded focus to include longer-term talent pipelines
Aligned to provide guidance and support to the Areas
of the World
– Global Talent Management Business Partners
– U.S. Talent Management Function
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2007 Top Companies for Leaders –
Fortune Magazine
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Talent Management Message Map
Tomorrow's Leaders
Today’s Leaders Deep, diverse pool
High performing, of replacement
committed leaders candidates for all
in all key key leadership
positions positions
Goal of TM
Ensure McDonald’s
has the leadership
talent to drive
business success
both today and
into the future
Development Culture
Culture that
both demands
& supports
learning and
development
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Talent Management @ McDonald’s…
Enabling the Business
Assessing Potential
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Talent Identification
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Differentiating Talent -- an
Evolution
2007
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A New Synthesis of Employee Potential
An employee’s potential is determined by his or her aspiration, ability and engagement
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New Attributes – McDonald’s
Desire to Lead
(Aspiration)
Organizational Learning
Engagement Orientation
(Engagement) (part of Ability)
15
McDonald’s Predictors
Past Performance
– Trend of results achieved over last 3 years
Leadership Competencies
Other Attributes (New)
– Learning Orientation
– Desire to Lead
– Organizational Engagement
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Past Performance
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Learning Orientation
Behaviors
– Seeks feedback on a regular basis and acts on it
– Learns lessons based on experience; does not make the same
mistakes twice
– Demonstrates ability to personally change for the better
– Quickly processes and grasps new concepts and information
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Desire to Lead
Behaviors
– Seeks out and assumes increased responsibility on job without
being asked
– Willingly goes above and beyond the call of duty on a regular
basis
– Steps up to assume leadership positions when placed in teams
– Getting ahead is clearly important to him/her
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Organizational Engagement
Behaviors
– Personally aligned to the organization’s vision and values
– Enthusiastically supports his/her organization/dept. and influences
others to commit to its mission
– Is a positive advocate for the business in all dealings external to
McDonald’s
– While candid and vocal internally about how things can be
improved, emanates a positive attitude about his/her
organization/department.
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Improving Clarity Regarding Long
Term Potential
From To
Promotion Readiness Potential For Advancement
Ready Now – immediately
Then
Ready Future – within 2 yrs
Promotion Readiness
Current Level – longer than 2
yrs Ready Now – immediately
Ready Future – within 2 yrs
Long Term – longer than 2
yrs
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Talent Management @ McDonald’s…
Enabling the Business
Accelerated Development
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Accelerated Leadership
Development – Purpose
Use leadership development process to drive
business results, shape culture and build leadership
depth
Strengthen and build the capabilities of future senior
leaders
Broaden participants’ understanding of strategic
business issues and challenges from a
multifunctional, multicultural perspective
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Accelerated Leadership
Development – Purpose
Provide an opportunity to broaden participants’
internal and external networks
Provide means for senior leaders to better know the
capabilities of talent within geographically dispersed
markets
Encourage and support a mindset of continuous
learning
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The Beginning: Leadership @
McDonald’s Program (LAMP)
Global program
– Australia, Indonesia, Ireland, Panama, U.S., Venezuela
22 cross-functional participants
– 60% female
– 44% minority
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Accelerated Leadership
Development – Current Status
Leadership @ McDonald’s Program (LAMP)
– U.S., Latin America, Canada
– 112 participants, 5 programs
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Global Diversity
43 Countries
Sweden
UK
Canada Denmark
Ireland Russia
Poland
Belgium Germany Ukraine
USA Portugal France
Turkey Japan
Spain China
Egypt
Mexico
Hong Kong
UAE
Thailand Taiwan
Panama
Venezuela Singapore
Malaysia
Philippines
Brazil Indonesia
South
Australia
Africa
Chile Uruguay
Argentina New Zealand
Pacific Islands
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Accelerated Leadership
Development – Structure
Common framework with ability to customize
– Leadership of self, of others and of the
organization
– Rigorous Assessments
– Coaching and Feedback
– Leadership Modules & Experiential Activities
– University Experience
– Action Learning
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Program Timeline
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Developing the Pipeline
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Leadership Development – Officer
Feeder Pool
U.S. Functional Accelerated Programs
– Accelerated Operations
– Cross-Functional Development
Leadership Institute
– Broad-based Leadership Development
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McDonald’s Leadership Institute –
“Be Your Best Leader”
A global community that drives McDonald’s
business by guiding leaders to reach their
potential and drive business success
Eligible leaders are those at the Director level and
above (or equivalent) around the world
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Portal to Connect to Resources
33
Talent Management @ McDonald’s…
Enabling the Business
Measuring Success
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We Identify A Few Key Metrics…
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…That Show Progress and Align
with the Business
Talent Management Plan Metrics
– Strength of incumbent leadership team:
– At least 95% meeting or exceeding objectives
– 100% of low performers on improvement plans
– Year-over-year diversity improvement
– 90+% of positions with strong
successors
– 95+% retention of top performers
– Development plans in place for all leaders
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APMEA Talent Measures
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APMEA Country Level Talent
Scorecard
Overall Bench Strength
– Examples: % positions with adequate replacements, unique
successors, ratings for existing team
Process
– Examples: Time to fill, % from succession plan
Talent Assessment & Development
– Examples: written development plans, annual development spend by
level
Diversity
– Examples: % positions held by local talent
Planned Actions from Talent Plan
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APMEA Country Level Talent
Scorecard
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Measurement Goes Beyond the
Numbers
Qualitative Data – Accelerated Leadership
Programs
– Senior Leadership involvement and commitment
– On-going funding and support for the existing Accelerated
Leadership programs
– The strength of the ALDP, ELDP & LAMP “brand”
– Unsolicited feedback from leaders of program participants
– Development of new programs focused on talent
– Increased leadership capabilities of our overall Officer
population
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Some Challenges…
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In Summary
We invest in developing all leaders, but invest
more in our high potential population
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In Summary
Standardize on a few key forms and processes
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Questions?
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