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YOU DON’T HAVE TO BE AN
MBA.. TO BE A PEOPLE
MANAGER
McDonald’s India – January 2012.
WHAT IS EXPECTED FROM PEOPLE
MANAGER’S ?
   From their managers they are seeking respect and support.
     respect and value them (43%);
     support them with career progression (36%);
     trust them to get on with things (35%);
     communicate well with them (34%).”


   On the other hand, managers
     see regular feedback about performance (50%)
     setting clear objectives (49%) as the most important behaviours.”


   To sum it up, people see their role at work as part of a career
    – and managers see it as a job


                                         Institute of Leadership & Management
THE TALENT CHALLENGE
1.2 Billion People and 66% of Employers say
Talent is Scarce
WE ARE GETTING YOUNGER.. YO!!




 * Source: Census of India Projections and IMaCS Analysis
HIRING OVERVIEW-SECTORS




        One of Top 4 Hiring Sectors
*Research by ACHIEVE Global
INDIA EMPLOYABILITY: REALITY
-   Student’s exposure is limited to the four walls of
    his school.
    -   Competition is key


-   Theory Vs practical
    -   Fantastic at IQ but EQ?


-   Literacy rate – 71% - but what is employability??
    -   English Skills and over qualification

-   Functional literacy
    -   1 in 4 engineers is considered employable
EDUCATION DISTRIBUTION




                         7
MCDONALD’S
FUN, FLEXIBILITY AND FUTURE
MCDONALD’S : KEY FACTS



                                  Key Facts
                         • Over 70% percent of Senior
                         Management in McDonald’s
                         International is Internal

                         • Jim Skinner – Worldwide CEO
                         started as a crew

                         • In over 30 countries including
                         India McDonalds gets credits for
                         the Training
MCDONALD’S INDIA : KEY FACTS




 250 Restaurants with total 6000
 Crew and Manager headcount
THE MCDONALD’S WAY
   Earn While you Learn - First job that allows
    people to polish key skills of
     Communication
     Customer Interaction
     Exposure to the industry
     A chance to develop the soft skills of team work and
      inclusiveness
   Teach people Skills for Life
     Learning Orientation
     Desire to Lead
OUR PEOPLE PHILOSOPHY
BUILDING PEOPLE MANAGERS -
SIMPLIFIED


                  Get



               Employee
               Lifecycle
         Gro
                           Keep
          w
GET-
RESTAURANTS ARE OUR TALENT PIPELINE

                     An integrated program
                      focusing on
                         Flexible Day part Hiring-
                             Early Exposure
                             Hiring Part time
                         Competency based hiring
                         Correct Orientation
                         Focus on hiring from Colleges,
                          Influence them Early
GET –
CORPORATE OFFICE
   Corporate Office
     Almost 40% of our corporate staff started in the restaurants
     Process for selection - Performance Development System
         Clear communicated Promotability Criteria
         Talent calibrations

         Feeder Pool

       Cross functional movements
           Early in career
       External Hires
         Competency based interviewing by functional leads
         Decision is functions – HR is enabler
KEEP- ENGAGE, INVOLVE!
                    Rewards and Recognition
                     Programs- At the function level as
                     well as at company level
                      Ensure there is always parity in pay –
                       benchmark not only industry but also
                       where we hire from.
                      SOI Incentive, Employee of the month
                       etc
                      Celebrate with them- Thanksgiving
                       Week
                      Let’s Ketchup Awards



                    Flexibility for the line manager to
                     innovate on Rewards and
                     recognition programs.
                      Stars Program
                      I Value U Cards
KEEP – RECOGNISE TALENT




 Global Singing Contest in 130 countries and 50000 contestants
GROW

Build
Skills
for Life
GROW- AT ALL LEVELS
   Talent Management
     Identification of Key positions
     Building a robust leadership Pipeline
     Robust Learning Platform for growth across all functions-
      Real Estate, HR, Marketing, Strategy
     Hi-Potential Identification and specialised investment


   Training System
       Continued Learning Options
       Training Approach changing with Times
       Learning is blended with shoulder to shoulder training,
        self study and classroom

   International Training Compulsory Restaurant
    Managers and above
3 PRONGED APPROACH

 On-floor    • Hands-on experience of things
 Training    • Learn while you work



 Off floor   • Training at store/function level
 Training    • Study material & training tools



Classroom    • Extensive class room programs
 Training    • High learning opportunities
Training Path
                             Restaurant Manager             MDP 3


                            First Assistant Manager         MDP 3



Growth Path              Second Assistant Manager           MDP 2



          Trainee Manager


                                Floor Manager               MDP 1


        Trainee Floor Manager



                                Training Squad              CTDP



                            Part Time Crew member

                                                            CDP

                       Part Time Trainee Crew member
SAMPLE TRAINING @ MANAGER LEVEL
   People Practices
    Understanding work environment and communication skills
     ;Understanding laws and policies ; Risk management, incident
     management and consultation
    Documenting and investigating incidents
   Counselling
    Determining a training need ; The 6 step counselling process
   Business Focus
    Identifying line items on a P&L and what is included in each line
     item
    Evaluating and analysing P&L issues ; P&L projections

   Delivering through Personal Leadership
    Using Stephen Covey's 7 Habits of Highly Effective People® to
     manage restaurant systems more effectively
   Understanding People
    Valuing the differences in people & exploring personal perceptions
    Identifying behavioural styles and adaptation
   Customer Satisfaction & Recovery
    Customer service vs. customer delight
    Customer feedback
    Techniques for handling customer complaints and feedback
   Creating Change
    Understanding change & change management
TRAINING @ CORPORATE
WHAT ARE LINE MANAGERS TRAINED ON -
   Values
       Custodian and role model of the McDonald’s Values

   Culture in team – reflects organisations culture
       All Staff Meetings
       Department Meetings
       Open Door policy – eg. Chat corners, 7 days in restaurants
        every quarter

   Their role as people managers –
       “Hard on Performance but Soft of people” – gain trust and
        respect

   Communication and coaching

   Hard calls are theirs and not HR
LEADERSHIP PIPELINE
                                          Skill requirements:
                                            New competencies are
                                            required to execute new
                                            responsibilities
                                          Work values:
                                            What people believe is
                                            important and becomes
                                            the focus of their efforts;
                                            different sources of
                                            satisfaction are also
                                            available at each
                                            passage
                                          Time applications:
                                            Allocation of time shifts
                                            according to priorities
(Source: The Leadership Pipeline, 2001)
EVOLUTION OF TALENT MANAGEMENT AT
      MCDONALD’S
                        Talent Management                                         2007-12
                        & Leadership
                        Development – one
                        of the CEO’s three
                                                                2006
                        top priorities                                                TM Advisory Board
                                                                                      Leadership

                                              2005                 McDonald’s
                                                                                       competency model
                                                                                       revised
                                                                    Leadership        McDonald’s Values
                                                                    Institute
                        2004                     AOW              Global
                                                                                      Accelerated
                                                                                       Development
                                                  Accelerated       Leadership         redesign
                                                  Development       Development       More rigorous
2003                       Talent
                                                                    Program
                                                                    (GLDP)
                                                                                       assessment for
                                                                                       Sr. Leadership roles
                            Management Plan
                                                                   Talent            Talent Management
                            Framework
                                                                    Management         Leads established in
   Accelerated                                                     Software           all AOWs
    Development Pilot                                               (Limited)
   Executive
    Development
    Workshops
                                                                                                McD’s
$25                     $32                   $34               $44                $85          Stock
                                                                                                Price
“We take the hamburger business
more seriously than anyone else”.
                      ~Ray Kroc

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Developing People Managers- McDonalds India

  • 1. YOU DON’T HAVE TO BE AN MBA.. TO BE A PEOPLE MANAGER McDonald’s India – January 2012.
  • 2. WHAT IS EXPECTED FROM PEOPLE MANAGER’S ?  From their managers they are seeking respect and support.  respect and value them (43%);  support them with career progression (36%);  trust them to get on with things (35%);  communicate well with them (34%).”  On the other hand, managers  see regular feedback about performance (50%)  setting clear objectives (49%) as the most important behaviours.”  To sum it up, people see their role at work as part of a career – and managers see it as a job Institute of Leadership & Management
  • 3. THE TALENT CHALLENGE 1.2 Billion People and 66% of Employers say Talent is Scarce
  • 4. WE ARE GETTING YOUNGER.. YO!! * Source: Census of India Projections and IMaCS Analysis
  • 5. HIRING OVERVIEW-SECTORS One of Top 4 Hiring Sectors *Research by ACHIEVE Global
  • 6. INDIA EMPLOYABILITY: REALITY - Student’s exposure is limited to the four walls of his school. - Competition is key - Theory Vs practical - Fantastic at IQ but EQ? - Literacy rate – 71% - but what is employability?? - English Skills and over qualification - Functional literacy - 1 in 4 engineers is considered employable
  • 9. MCDONALD’S : KEY FACTS Key Facts • Over 70% percent of Senior Management in McDonald’s International is Internal • Jim Skinner – Worldwide CEO started as a crew • In over 30 countries including India McDonalds gets credits for the Training
  • 10. MCDONALD’S INDIA : KEY FACTS 250 Restaurants with total 6000 Crew and Manager headcount
  • 11. THE MCDONALD’S WAY  Earn While you Learn - First job that allows people to polish key skills of  Communication  Customer Interaction  Exposure to the industry  A chance to develop the soft skills of team work and inclusiveness  Teach people Skills for Life  Learning Orientation  Desire to Lead
  • 13. BUILDING PEOPLE MANAGERS - SIMPLIFIED Get Employee Lifecycle Gro Keep w
  • 14.
  • 15. GET- RESTAURANTS ARE OUR TALENT PIPELINE  An integrated program focusing on  Flexible Day part Hiring-  Early Exposure  Hiring Part time  Competency based hiring  Correct Orientation  Focus on hiring from Colleges, Influence them Early
  • 16. GET – CORPORATE OFFICE  Corporate Office  Almost 40% of our corporate staff started in the restaurants  Process for selection - Performance Development System  Clear communicated Promotability Criteria  Talent calibrations  Feeder Pool  Cross functional movements  Early in career  External Hires  Competency based interviewing by functional leads  Decision is functions – HR is enabler
  • 17. KEEP- ENGAGE, INVOLVE!  Rewards and Recognition Programs- At the function level as well as at company level  Ensure there is always parity in pay – benchmark not only industry but also where we hire from.  SOI Incentive, Employee of the month etc  Celebrate with them- Thanksgiving Week  Let’s Ketchup Awards  Flexibility for the line manager to innovate on Rewards and recognition programs.  Stars Program  I Value U Cards
  • 18. KEEP – RECOGNISE TALENT Global Singing Contest in 130 countries and 50000 contestants
  • 19.
  • 21. GROW- AT ALL LEVELS  Talent Management  Identification of Key positions  Building a robust leadership Pipeline  Robust Learning Platform for growth across all functions- Real Estate, HR, Marketing, Strategy  Hi-Potential Identification and specialised investment  Training System  Continued Learning Options  Training Approach changing with Times  Learning is blended with shoulder to shoulder training, self study and classroom  International Training Compulsory Restaurant Managers and above
  • 22. 3 PRONGED APPROACH On-floor • Hands-on experience of things Training • Learn while you work Off floor • Training at store/function level Training • Study material & training tools Classroom • Extensive class room programs Training • High learning opportunities
  • 23.
  • 24.
  • 25. Training Path Restaurant Manager MDP 3 First Assistant Manager MDP 3 Growth Path Second Assistant Manager MDP 2 Trainee Manager Floor Manager MDP 1 Trainee Floor Manager Training Squad CTDP Part Time Crew member CDP Part Time Trainee Crew member
  • 26. SAMPLE TRAINING @ MANAGER LEVEL  People Practices  Understanding work environment and communication skills ;Understanding laws and policies ; Risk management, incident management and consultation  Documenting and investigating incidents  Counselling  Determining a training need ; The 6 step counselling process  Business Focus  Identifying line items on a P&L and what is included in each line item  Evaluating and analysing P&L issues ; P&L projections  Delivering through Personal Leadership  Using Stephen Covey's 7 Habits of Highly Effective People® to manage restaurant systems more effectively  Understanding People  Valuing the differences in people & exploring personal perceptions  Identifying behavioural styles and adaptation  Customer Satisfaction & Recovery  Customer service vs. customer delight  Customer feedback  Techniques for handling customer complaints and feedback  Creating Change  Understanding change & change management
  • 28. WHAT ARE LINE MANAGERS TRAINED ON -  Values  Custodian and role model of the McDonald’s Values  Culture in team – reflects organisations culture  All Staff Meetings  Department Meetings  Open Door policy – eg. Chat corners, 7 days in restaurants every quarter  Their role as people managers –  “Hard on Performance but Soft of people” – gain trust and respect  Communication and coaching  Hard calls are theirs and not HR
  • 29. LEADERSHIP PIPELINE Skill requirements: New competencies are required to execute new responsibilities Work values: What people believe is important and becomes the focus of their efforts; different sources of satisfaction are also available at each passage Time applications: Allocation of time shifts according to priorities (Source: The Leadership Pipeline, 2001)
  • 30. EVOLUTION OF TALENT MANAGEMENT AT MCDONALD’S Talent Management 2007-12 & Leadership Development – one of the CEO’s three 2006 top priorities  TM Advisory Board  Leadership 2005  McDonald’s competency model revised Leadership  McDonald’s Values Institute 2004  AOW  Global  Accelerated Development Accelerated Leadership redesign Development Development  More rigorous 2003  Talent Program (GLDP) assessment for Sr. Leadership roles Management Plan  Talent  Talent Management Framework Management Leads established in  Accelerated Software all AOWs Development Pilot (Limited)  Executive Development Workshops McD’s $25 $32 $34 $44 $85 Stock Price
  • 31. “We take the hamburger business more seriously than anyone else”. ~Ray Kroc