As President and CEO of McDonalds, Chris leads the millions of dedicated McFamily members who help create delicious, feel-good moments for everyone. For over 100 years, our cutting-edge research, data, events and executive networks have helped the world's leading companies understand the present and shape the future. In our top markets, our drive-thru service times are now about 30 seconds faster than they were two years ago. Customers want to see that the McDonalds they visit locally matches how we act globally. As one of the worlds leading brands, McDonalds makes a difference in the lives of people every day. We can think about our business beyond just the four walls of McDonaldsand perhaps even beyond what is McDonalds brandedbecause we have scale and a platform that we, and even others in our industry, could use to deliver important and sustained value to our customers. Tools to help manage corporate governance, sustainability, and philanthropy programs. Chris Kempczinski, McDonald's, speaks during a press conference in New York, November 17, 2016. Everybody has a clear sense of it. How does the brand remain so cohesive while catering to local tastes? One thing weve learned during the pandemic is that if we simplify our business and focus on what were great atlike drive-thru and our core menu itemstheres a fantastic benefit for our customers. 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. When you took on the role, quickly establishing values as a central theme of your leadership, was there a sense that McDonalds needed its values updated?I think its precisely because McDonalds had a very strong core set of values that the issue with my predecessor was as traumatic for the company as it was. These events dont need to be frequent or long, but it is essential that the employees have some opportunity to interact with the senior executives. New York CNN Business . 'https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f); We must now champion and apply them more evenly across the three-legged stool to be even stronger. Michael Hsu, Mr. Kempczinskis former boss at Kraft Foods, now Chairman and CEO of Kimberly-Clark, saw the way in which these character traits, coupled with his deep understanding of consumer behavior, drove strong business performance. It calls for Kempczinski to meet with Black and brown employees and community leaders in Chicago in the coming days to "tell us what your plan is to address systemic racism at McDonald's and. Leadership McDonald's CEO Chris Kempczinski apologizes for his text to Chicago's mayor "Those comments were wrong," he said in a video to the system amid a furor over the message, which appeared to blame parents for shooting deaths of two kids. When you look at the career progression that people can have in the retail industry and the career progression that people have at McDonalds, its quite remarkable. CHICAGOMcDonald's Corp. Chief Executive Chris Kempczinski . 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. Where weve launched it, in markets like Canada and Australia, weve seen great success with meaningful lifts in both sales and traffic, and were excited about what it can do in the rest of the world as well. What does that mean exactly and how will your customers see this come to life?Customers are seeking brands that reflect their values and the line between the corporate brand and the consumer-facing brand is blurring. Chris Kempczinski: Its true; we get asked to speak out on almost any topic. Steve Easterbrook Separates as President and CEO and as a Member of the . The more delivery locations you have, and each of our restaurants is a delivery location, the better you can make that experience. There are social issues on which you havent hesitated to speak outfor example, you put out public statements after the killing of George Floyd and after the attack on the Capitol. The CED discussion series, Leadership in Challenging Times, interviews business leaders about the unprecedented challenges facing the nation and how they are helping chart a path forward for both their companies and communities in which they operate. Mr. Kempczinski wasnt new to the company but unlike previous chief executives, he hadnt joined the restaurant giant decades earlier, either. Nothing about Mr. Kempczinski's ascent surprised Greg Kelly, a Senior Partner at McKinsey & Company and a friend of Mr. Kempczinski's dating back to university. McDonald's Corporation Announces Leadership Transition. How much consumer demand do you expect to shift back to dine-in when COVID-19 subsides? We did have a leader who didnt act in accordance with our values, and youve got to hold everybody to the same account. I came in and I was very much the outsider. During an internal McDonald's town hall meeting, Kempczinski vowed that he will look at every senior executive and ask if they "personify the values of our company." Your investments in Drive Thru and digital in restaurants have proven to be fortuitous, even prescient, amid the pandemic. So I think our reticence to publicize those things early on was a missed opportunity. The MyMcDonalds platform is essentially an ecosystem of all the things that you can do via digital touchpoints with McDonaldsthink mobile ordering, payments, delivery, rewards, or deals. Greg Kelly, a senior partner in McKinseys Atlanta office, conducted this interview. I think weve done a pretty good job over the years of striking that balance. I hope everyone had a chance to relax and spend time with family and friends over the holiday season. McKinsey: McDonalds has fared better than many other restaurant chains during the pandemic, thanks to your investments in what you call the 3 Ds: delivery, drive-thru, and digital. When you had a leader that acted in a way that was incongruous with those values, it raised a question: Are we as good as we say we are? In Australia, we provided consumer staples; people could go to their local McDonalds to get things like bread, milk, and butter. 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.. In this role, he worked closely with our business leaders and franchisees to identify innovative new ideas and best practices to accelerate system growth. I dont have all the answers, and if I pretended I did have all the answers, people wouldnt believe me. One of our values is that we open our doors to everyone. Everybody recognizes the golden arches. BY Beth Kowitt. When Ray Kroc structured McDonalds as a franchise business, the founding idea was to have a franchisee who lives in the community and who is going to be way better at managing the restaurant than some corporate stiff, thousands of miles away. McKinsey: Youve had quite the baptism by fire. That new CEO is Chris Kempczinski, and here are five facts you need to know about him: In the press release announcing his promotion to CEO, Kempczinski said: Im thrilled to be leading this incredible company. You never know exactly what youre going to get back from customers. Beyond our leadership platform, we have our five company values, one of which is inclusion. Married, with 2 children, Holds an MBA from Harvard Business School and a bachelors degree from Duke University, McDonalds Were making sure that were continuing to offer a better experience on these than anybody else. In a recent interview with McKinseys Greg Kelly, Kempczinski discussed his tenure so far and what the next normal might look like for McDonalds. We just have an incredible footprint that lends itself to delivery. I think the important thing is dont try to stand out. When you eat as much McDonalds as I do, you think in day parts. One of the things that has defined McDonalds over the decades has been our emphasis on diversity, making sure we have a franchisee population that reflects the US population or the global population. He said he hoped to speak with the victims' parents. In India, you have the tikka masala burger. And were definitely doubling down on those. By continuing to use this Site or by clicking "OK", you consent to the use of cookies.OK, On leading during COVID-19: as you would imagine, in a system like ours, where you have not just the company people, but you have a network of suppliers, you have a network of franchisees, you get bombarded with a lot of questions that come in from everybody around the world. Kempczinski has an MBA from Harvard Business School. All Rights Reserved. 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. 09 September 2020. Brunswick Partner Jayne Rosefield is Head of the firms Chicago office and Global Consumer Industries Practice. Blog > chris kempczinski leadership style. Not any of the other sauces; just straight-up ketchup. Executive vice president, growth initiatives McDonalds is not responsible for the content provided by third-party sites. I think its precisely because McDonalds had a very strong core set of values that the issue with my predecessor was as traumatic for the company as it was. To me, there is nothing further from the truth than that. Regardless of the delivery channel deployed, though, we always focus on our customers experiences because customer satisfaction is critical to us. On leading during COVID-19: as you would imagine, in a system like ours, where you have not just the company people, but you have a network of suppliers, you have a network of franchisees, you get bombarded with a lot of questions that come in from everybody around the world. And yet the menu varies from culture to culture, place to place. When something in the public discourse is relevant to who we are as McDonalds, and frankly where we would be expected to say something, we should lend our voice. My view is that in this day and age, you have no choiceif you want to control the message, you will be an inauthentic brand and you wont have any resonance. 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. Given your particular focus on those factors, even before you became CEO, its almost as if you saw the pandemic coming. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. For a while, the meetings were touted as one of Googles many promising management ideas. 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. I'd love for you to be my first followers. Executives are typically time-constrained and may be reluctant to participate in formal socializing events. And that brought us back to the notion of community. Its a great flavor improvement on our product. Clearly heavy drinking and womanizing shouldnt be part of the executive bonding with employees, but organizations should be aware of other issues as well. When you had a leader that acted in a way that was incongruous with those values, it raised a question: Are we as good as we say we are? Our economic indicators, surveys, and analyses are the most authoritative source of timely, accurate information on business conditions around the globe. Its got to be about the company and the organization. And were definitely doubling down on those. When you serve as many customers as we do, our customers are society. By using this website, you accept the use of cookies. The following are edited excerpts of their conversation. Kempczinski could have netted an another $4.25 million. 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. Where do we have an opportunity and a responsibility to make a contribution? June 17, 2021, 10:52 AM PDT. In a leaked video, Pichai admitted that Google is genuinely struggling with employee trust. The chain's total CEO compensation in 2019 ended up topping $18 million. Were looking to innovate and actually make sure that were doing it better than anybody else. In a press release, McDonalds said Easterbrook, who had been CEO since 2015, violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee.. In following that example, Ive tried to not put a lot of corporate spin and polish on stuff, but to just speak in a pretty open, honest way about how I see things. Kempczinski started his career with Procter & Gamble in brand management, and worked for four years in its soap sector division, before leaving to attend Harvard Business School (HBS). 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? A big learning for me was realizing that there is no such thing as overcommunicating. For more information on how to manage cookies, please read our cookie policy. So, credit to the team for getting on that one early. Thats why in China, you find things like bubble tea, which has little tapioca droplets in it. 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. I wanted to make that set of expectations very clear at the beginning of my tenure so that this was not a moment to reconsider what we stood for. What dont we know? This button displays the currently selected search type. In this role, he worked closely with our business leaders and franchisees to identify innovative new ideas and best practices to accelerate system growth. Customers are seeking brands that reflect their values and the line between the corporate brand and the consumer-facing brand is blurring.. But we're only just getting started. As chief executive of McDonald's, Chris Kempczinski occupies one of the most powerful posts in the corporate world. 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. Ive always liked the regular. Whats this we hear about changes to your iconic burgers?The adjustments were making are a series of small changes that add up to one big difference our customers really notice. Also, we could have done a better job demonstrating and articulating what McDonalds was doing to support communities. McDonald's CEO Chris Kempczinski said he is spending more time planning so the company is prepared for future executive departures. 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? McKinsey: In delivery, youre currently partnering with third-party providers, which means you dont have full access to the customer data or full control of the customer experience in delivery. When I started my career, 30 years ago, marketing was typically well develop a campaign and run it for a full year, then well think about it again in a year. But now were in an always-on marketing environment, driven largely by social media. 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. Our records show that you are a Member of The Conference Board, but you do not have access to this webcast based on your Membership level. Kempczinski has also heard from other stakeholders about McDonald's culture and ethics through meetings with corporate officers, marketing managing directors and the franchise leadership of the chain's International Development Licensed markets. Its been important to me that were always connecting the decisions that we make back to what we stand for as a company. Total officers declined from . McDonald's new CEO attempts to change company's culture, Restaurants see major changes on the menu in 2019. 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? As the Harvard Alumni Association notes, before joining McDonald's global strategy team in 2015, Kempczinski was an executive vice president. McDonald's new CEO, Chris Kempczinski, seems to be facing low or manageable risk and should do fine - highest chance of success. Another influence was Nelson Mandela. No US state or city has been hit harder by COVID-19 than New Yorkwhich, as of June 21st, had seen 388,000 confirmed cases and nearly 31,000 deaths. Ive taken different lessons from all the leaders Ive worked for and admired. 2023 The Conference Board Inc. All rights reserved. I like the Nuggets with ketchup. Chris Kempczinski had been at McDonald's less than five years when he was named president and CEO, in November 2019, rising to the top job after his predecessor was fired for violating company policy on personal conduct. 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. But far more often, its a huge benefit because people just love to talk about McDonalds, and thats something we should lean into. 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. (201415), Senior vice president, US grocery I focused on being a good listener to understand how people were feeling and what we could do to support them. Collectively they represent 30+ industries, over a trillion dollars in revenue, and over 4 million employees. Detailed information on the use of cookies on this site is provided in ourcookie policy. First, we have the four pillars of what we call our Corporate Leadership Platform: supporting local farmers and local sourcing, protecting our planet, serving our communities in times of need, and providing jobs and opportunity. McDonald's hi qu ngt. I have a rotation of lunch items. But under his leadership, recoveryand growthare once again on the horizon. Im a Filet-O-Fish-no-tartar-double-ketchup guy. By Jonathan Maze on Nov. 06, 2021 When I travel abroad, I embrace the hospitality of the franchisee that Im visiting. 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. Sexual harassment against McDonald's restaurant employees "will not be tolerated," McDonald's CEO Chris Kempczinski said in a statement responding to a CBS News . The McDonalds brand is well known around the world. Chris joined McDonald's in 2015 as Executive Vice President, Strategy, Business Development and Innovation. He has been with McDonald's Corporation since 2015 and is in his second year as president and CEO. Amid all else thats going on, you recently launched a purpose to feed and foster communities? Outside of McDonalds, Chris serves on the Board of Directors for Procter & Gamble. McDonald's CEO Chris Kempczinski has apologized multiple times to U.S. employees after a text exchange with Chicago Mayor Lori Lightfoot, addressing the shooting deaths of two children, was. It would have been so easy for him to dwell on all the horrible things that had happened to him over the decades. We have our core menu: hamburger, cheeseburger, Big Mac, Quarter Pounder. And yet the menu varies from culture to culture, place to place. Evaluate and optimize the impact of corporate citizenship programs. We also put the onions actually on the grill as opposed to putting the onions on at the dressing table. The 51-year-old Kempczinski is known as "Chris K" around the office. So you just have to accept the unpredictability and risk as part of the bargain to be a relevant brand today. I wanted to step back and just think about where we could actually make a difference. I think for us, to be honest, we just had to catch up. During this first year, Mr. Kempczinski has proven agile in his role and is firmly focused on the path ahead, having refreshed the companys values over the summer and recently launching McDonalds new growth strategy, Accelerating the Arches. They like to show me the latest thing that theyve got on the menu and Ill go with that. Chris Kempczinski: Yes, a couple of things come to mind. Our research and analysis have helped the world's leading companies navigate challenges and seize opportunities for over 100 years. Together, we served over 65 million customers, on average, every day, providing great tasting food faster with more convenience and better service than ever before. They like to show me the latest thing that theyve got on the menu and Ill go with that. Ive never forgotten that. Rather, this was a moment to double down on what we stand for and make it clear that it applies to all of us equally. McDonald's new CEO held a town hall on Wednesday, as the fast-food giant adjusts to an unexpected leadership shakeup. (2019present), Vice president, global strategy, business development, and innovation So I don't have all the answersBut I am going to outline for everybody some principles about how we're going to approach these issues.. My answer is: ensuring the relevance of the brand. Now, youve got me hungry.Youre going to love those grilled onions. More than 1,000 McDonald's employees have responded via a survey. However, shutting down all socialization between senior executives and the rank and file isnt the answer either. The adjustments were making are a series of small changes that add up to one big difference our customers really notice. Senior Partner, Consumer Industries Group Global Lead, Head of Office, Chicago. 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. Although she opposed "defunding" the police, her 2021 budget shrank the force by eliminating hundreds of vacancies. Put simply, he is a leader who at his core "cares a lot." McKinsey: Marketing has also played a big role in McDonalds recent financial outperformance. In just four years, he had clearly made a mark. Then last November, Google CEO Sundar Pichai announced that TGIF meetings would be cancelled in favor of monthly meetings and separate forums. Definitely the Egg McMuffin with no Canadian Bacon. Everybody has a clear sense of it. The importance of [showing up] every day. The McDonalds brand is well known around the world. Kempczinski said three things about McDonald's make him proud: It creates opportunity, builds community and collaborates on solutions. 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?I get asked sometimes, What exactly do you do as CEO of McDonalds? It can seem as though the system runs itself. In Kempczinski's message Monday, he said he was "impressed by the candid feedback.". Our in-person and virtual events offer unmatched opportunities for professional development, featuring top experts and practitioners. 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. So, are there things we can do to speed up the Drive Thru? 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. 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). That, for me, was incredibly gratifying. But then you do have the flexibility locally to add items that you think appeal to local tastes. 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. How does the brand remain so cohesive while catering to local tastes?We use the expressionIm sure other companies use it as welltheres freedom within the framework. (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start': Chris Kempczinski had been at McDonald's less than five years when he was named president and CEO, in November 2019, rising to the top job after his predecessor was fired for violating company policy on personal conduct. That's different from a captain's role, in which the route is often fixed and the destination defined." Zhang Ruimin, CEO of Haier In the past 9 weeks, I have been doing just that. Regardless of the method of interaction, executives should make the time to interact with the rank and file. Im very proud of having put our values front and center. Chris Kempczinski: Prior to 2017, delivery was a $1 billion business for us, largely in Asia. McKinsey: Are there companies or thinkers that you look to for inspiration? After a thorough investigation, the Board took decisive action, terminating Mr. Easterbrook and naming a new leader. How do you think youve improved the companys marketing since you became CEO? More than 1,000 McDonald's have provided feedback via a survey since Kempczinski took the reins. Assigning leaders to meet with entire teams for an occasional lunch or drinks can go a long way toward increasing employee engagement for all employees. As we hit the ground running in 2020, I want to congratulate you, the McDonald's System, on a job well done. By the end of 2019, delivery sales were over $4 billion and we continued to see very strong growth in 2020. Data is a real-time snapshot *Data is delayed at least 15 minutes. I did spend time up front providing a framework a list of five things to help guide those decisions: Were all in this together. What are your values? 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.