The CED discussion series, Leadership in Challenging Times, interviews business leaders about the unprecedented . In early November, Brunswick Partner Jayne Rosefield, head of the firms Chicago office and Global Consumer Industries Practice, interviewed Mr. Kempczinski. According to the Wall Street Journal, Easterbrook and other executives, including the former head of McDonalds human resources, David Fairhurst often partied after work with other executives and staffers (Fairhurst voluntarily stepped down one day after Easterbrook was outsted). McDonalds is not responsible for the content provided by third-party sites. Married, with 2 children, Holds an MBA from Harvard Business School and a bachelors degree from Duke University, McDonalds Here are a few questions, along with Kempczinskis answers (watch the video above for all 20 Questions):What is the biggest risk you have taken in your career? The context of how I came into the job is important to understand: it was very much a values-based situation. 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). When I travel abroad, I embrace the hospitality of the franchisee that Im visiting. You also have to acknowledge there are things that we dont know. Because were McDonalds and our reach is so great, were in so many different countries, we touch so many different things, we were getting pulled into lots of efforts where either we didnt have inherent credibility or our ability to make a difference was limited. The New Year's message follows a Wall Street Journal report published Sunday that alleged that under Kempczsinki's predecessor, Steve Easterbrook, the company's culture tolerated late-night socializing between senior managers and rank-and-file employees. What does that mean exactly and how will your customers see this come to life? That, for me, was incredibly gratifying. 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. Where do we have credibility to speak and stand behind our values and commitments? Its got to be about the company and the organization. Project leader and consultant My very first impression of Chris, and a belief I continue to hold today, is that he is a true values-based leader. McDonald's newly minted executive leadership have worked this week to adjust to their new positions while assuaging concerns of employees still stunned by the abrupt downfall of now-former CEO Steve Easterbrook. He builds great teams. If they dont express a strong bias, I do the Quarter Pounder because thats a great product to calibrate around the world. As President and CEO of McDonalds, Chris leads the millions of dedicated McFamily members who help create delicious, feel-good moments for everyone. 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. That was the direction that I gave to the system. Ive taken different lessons from all the leaders Ive worked for and admired. [Many] decisions were left to the field and I think ultimately that proved to be quite successful for us.What is one misconception about retail that you would love to debunk for everyone? Detailed information on the use of cookies on this site is provided in ourcookie policy. 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. The whole world was in crisis mode, but Chriss calm demeanor and thoughtful approach ensured that as a team we could implement the swiftest operational transformation in our history to protect restaurant crew and customers, while providing financial support to franchisees to ensure they could focus on running their restaurants rather than worrying about what the future might hold.. The adjustments were making are a series of small changes that add up to one big difference our customers really notice. I think everybody has recognized were going to a world thats going to be more contactless, thats going to have more dine-away as opposed to dine-in. Home. Given your franchise model, how do you ensure during COVID-19 that restaurants can survive the short term and be in a position of strength for the long term?We were lucky in that McDonalds franchisees came into the pandemic in a very strong position. 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. In the meantime, you'll continue to see and hear from me across the System. 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. Additionally, weve been able to expand the number of restaurants offering delivery to more than 30,000. And one of the things that I tried to do in the very beginning was to just outline some principles of how we were going to look at it. Its kind of amazing. To lead, you have to be out there talking a lot and, in some cases, saying the same message over and over and over. The nonprofit, nonpartisan, business-led organization delivers well-researched analysis and reasoned solutions in the nations interest. In November 2019, Mr. Kempczinski became President and Chief Executive Officer of McDonald's, the world's largest restaurant company. For more information on how to manage cookies, please read our cookie policy. McDonalds new chief executive, Chris Kempczinski is trying to change what has been described as a macho, guys club corporate culture at McDonalds. (201415), Senior vice president, US grocery The McDonalds brand is well known around the world. Families visiting our restaurants aren't just customers, they're neighbors. Definitely the Egg McMuffin with no Canadian Bacon. To lead, you have to be out there talking a lot and, in some cases, saying the same message over and over and over. So when events happen that strike at the heart of our core values, we want to speak out on those occasions as well. When I came to McDonalds, that was probably one of the biggest risks for me. 09 September 2020. Plenty of things. Sometimes, having the visibility of McDonalds can be a burden, can make for an easy target. Yet Lightfoot hasn't done much to help. Weve been in the Drive Thru business for decades, so I dont want to say that we had any foresight in that. Its been important to me that were always connecting the decisions that we make back to what we stand for as a company. "We must now champion and apply them more evenly across the three-legged stool to be even stronger.". He has been with McDonalds Corporation since 2015 and is in his second year as president and CEO. I wouldnt be a Duke fan if I didnt take some lessons from Coach K. His ability to forge a sense of comradery among his players holds lessons for any leader. Youre going to love those grilled onions. You cant be in a situation where you say, Ive made it to this level or Ive made it to this role. For me, whether it was back as a brand assistant at P&G or now in my role here at McDonalds as CEO, there is a recognition that you constantly have to prove yourself thats something that has carried with me throughout my career.What do you do to stand out? The List 2022 honoree Chris Kempczinski answers 20 Questions, Meet The List of People Shaping Retails Future 2022, Introducing The Visionary 2022: Target CEO Brian Cornell, 10 go-to-market strategies move forward in NRF Foundation scholarship competition, The List of People Shaping Retails Future 2022, NRF Foundation Next Generation Scholarship. We also need to be operating in the social-media space much more dynamically. Looking at your recent marketing initiatives, featuring cultural icons like Travis Scott and J Balvin, and the recent launch of Spicy Chicken McNuggets, I have to wonder how a brand as established as McDonalds continually reimagines marketing? If we further build out a hybrid delivery model, do we let others, perhaps, ride on our delivery platform? Covering all aspects of labor markets, from monthly development to long-term trends. Some people feel that McDonalds ought to take a stance on other issues as well, such as fighting obesity and raising the minimum wage. But, broadly, our systems in great shape. Seventy-five percent of the population across our top markets live within three miles of a McDonalds. Any franchisee reading this is going to make sure they suggest a new item because they dont want to be calibrated. Our research and analysis have helped the world's leading companies navigate challenges and seize opportunities for over 100 years. I came in and I was very much the outsider. Given your particular focus on those factors, even before you became CEO, its almost as if you saw the pandemic coming. Why Accountability Is At The Core Of Stewardship Delegation, 5 Ways To Grow Your Personal Brand As A Content Creator, Why We Need To Make Every Day Employee Appreciation Day, In A Competitive Job Market, Heres How To Win The Interview, 5 Tips To Recession-Proof Your Career And Bullet-Proof Your Security, How Leaders At Ultragenyx Balance The Duality Of Action And Connection, Companies Outside Of Big Tech Are Winning Top Talent. I think Nike does a great job of engaging customers and using pop culture to keep their brand relevant. The onion flavor gets sort of seared into the beef. Our cash flow went down about $2 billion in 2020. fries? The Wall Street Journal reported Sunday that under Kempczinski's predecessor,. Listen as Kempczinski talks to Dr. Murray about human-centric leadership, how to keep stakeholders resilient in times of crisis, the importance of defining your company purpose, engaging in the public square, and more. I hope so. During his tenure as president of McDonalds U.S. footprint, Kempczinski oversaw the business operations of around 14,000 stores. I think the important thing is dont try to stand out. 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). Were rolling out this new cooking procedure around the world. After a thorough investigation, the Board took decisive action, terminating Mr. Easterbrook and naming a new leader. HACER Scholarships for Hispanic Students, Do Not Sell or Share My Personal Information. Members of The Conference Board get exclusive access to the full range of products and services that deliver Trusted Insights for What's AheadTM including webcasts, publications, data and analysis, plus discounts to conferences and events. What are we uncertain about? We use the expressionIm sure other companies use it as welltheres freedom within the framework. Track the state of the business cycle for 12 global economies across Asia and Europe. 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. Maybe there is a lane for our loyal customers that allows them to go through in a faster way. McDonald's CEO Chris Kempczinski lays out the fast food giant's new strategy to emerge from COVID-19 a winner. We can make a difference around being there for communities in crisis, from Ronald McDonalds House Charities to natural disasters. Chris Kempczinski, McDonald's, speaks during a press conference in New York, November 17, 2016. He has been with McDonald's Corporation since 2015 and is in his second year as president and CEO. Outside of McDonalds, Chris serves on the Board of Directors for Procter & Gamble. Steve Easterbrook Separates as President and CEO and as a Member of the . 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. Keeping McDonalds relevant: An interview with CEO Chris Kempczinski. In India, you have the tikka masala burger. We would have a digital relationship with those customers. Im a Filet-O-Fish-no-tartar-double-ketchup guy. You never know exactly what youre going to get back from customers. As the Harvard Alumni Association notes, before joining McDonald's global strategy team in 2015, Kempczinski was an executive vice president. November 9, 2020, 6:00 AM PST. As we hit the ground running in 2020, I want to congratulate you, the McDonald's System, on a job well done. In a recent interview with McKinseys Greg Kelly, Kempczinski discussed his tenure so far and what the next normal might look like for McDonalds. In this current environment, all companies are being asked to define their mission, their higher purpose. Of Mr. Kempczinski, Mr. Kelly says, At college, we nicknamed him The Colonel given the similarity between his leadership qualities and those of Dukes legendary basketball coach. In the younger Mr. Kempczinski, Mr. Kelly also saw the tremendous energy and resilience that might have predicted his traveling the globe not only as a rising leader in business but as a serial runner of marathons far and wide. Kempczinski reportedly will no longer tolerate this type of partying and fraternizing at the fast food giant. https://www.conference-board.org/events/CED-Distinguished-Leadership-Awards-DinnerFor more than a quarter century, the CED Distinguished Leadership Awards ha. In just four years, he had clearly made a mark. So what do you do? When you travel abroad, do you have any favorite international menu items? 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. (2019present), Vice president, global strategy, business development, and innovation When COVID-19 struck, the first thing that we wanted to do was put some immediate liquidity into the system. That also opens up a whole bunch of other opportunities for us. But far more often, its a huge benefit because people just love to talk about McDonalds, and thats something we should lean into. I did spend time up front providing a framework a list of five things to help guide those decisions: Were all in this together. 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. We tend to want to socialize with others who are similar to ourselves, so managers can be exclusionary if they are left to choose their own interactions partners. Food is such a local experience that you have to give people some latitude to adapt to local tastes. The biggest decision that I was most proud of, that was also most critical, was not trying to make all the decisions here at headquarters, but pushing those decisions out into the markets, while giving our leaders in the restaurants who were closest to the situation the flexibility to make the decisions. McDonald's CEO Chris Kempczinski is trying to restore a more professional culture, starting with feedback from key stakeholders and applying the chain's core values across the system of franchisees, suppliers and employees. I didnt think that we had contemporized our approach to marketing. The CED discussion series, Leadership in Challenging Times, interviews business leaders about the unprecedented . Every time you go to a new organization, you take a risk with that. Clearly heavy drinking and womanizing shouldnt be part of the executive bonding with employees, but organizations should be aware of other issues as well. The Conference Board and torch logo are registered trademarks of The Conference Board. Chris Kempczinski was enjoying a quiet moment at his home in Chicago last autumn when he received a call from Chair of the Board of McDonalds Corporation, Rick Hernandez. We have a big advantage with 40,000 restaurants. 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. We also put the onions actually on the grill as opposed to putting the onions on at the dressing table. He lives in Chicago, IL, with his wife and two kids. Listen as Kempczinski talks to Dr. Murray about human-centric leadership, how to keep stakeholders resilient in times of crisis, the importance of defining your company purpose, engaging in the public square, and more. In most major markets, they were at or near record cash flow, which essentially is how much money theyre able to take out of the business. Keeping McDonald's 'relevant': An interview with CEO Chris Kempczinski, Fast action in fast food: McDonalds CFO on why the company is growing again, Eating out(side): Restaurant dining in the next normal. Chris Kempczinski, CEO of McDonald's "Leaders of other enterprises often define themselves as captains of the ship, but I think I'm more the ship's architect or designer. Freedom within the framework gets back to this point of how the brand stays relevant. Chris Kempczinski, named CEO on Sunday, along with Chairman Enrique Hernandez, held a town hall meeting Wednesday with employees at . Kempczinski has every reason to shut this behavior downits exclusionary, its degrading to women, and its just unprofessional. We did recognize three or four years ago that delivery was going to be a huge opportunity for us. Greg Kelly, a senior partner in McKinseys Atlanta office, conducted this interview. If we have that level of consumer engagement on our app, could we do even more for them? Mr. Ozan reflected on his CEOs approach: From the outset of this pandemic, Chriss priority has been clear-protecting restaurant crew and customers above all else. In Kempczinski's message Monday, he said he was "impressed by the candid feedback.". When TGIF meetings first started, all the Google employees could fit in a small meeting room. The fast-food giant's board fired Easterbrook in November because he had a consensual relationship with an employee, which violated the company's fraternization policy. During their undergraduate days at Duke, Mr. Kempczinski made no secret of admiring Coach K, aka Mike Krzyzewski, whose teams have won five national titles. I am proud of our success in 2019. They like to show me the latest thing that theyve got on the menu and Ill go with that. It wasnt obvious where that complexity was, but now that weve discovered it, were committed to keeping our business simple. And one of the things that I tried to do in the very beginning was to just outline some principles of how we were going to look at it.