We did recognize three or four years ago that delivery was going to be a huge opportunity for us. But we're only just getting started. Kempczinski has every reason to shut this behavior downits exclusionary, its degrading to women, and its just unprofessional. Im very proud of having put our values front and center. 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. We have a responsibility not only to serve great food, but to make it responsibly and to enrich the communities in which we operate. We use the expressionIm sure other companies use it as welltheres freedom within the framework. })(window,document,'script','dataLayer','GTM-MFNGH2P'); Brunswicks Digital Investor Survey is a comprehensive review that explores how institutional investors gain information and the impact those insights have on their investment decisions. For a while, the meetings were touted as one of Googles many promising management ideas. Sign up for free newsletters and get more CNBC delivered to your inbox. Hopefully, positive social interactions between management and junior employees are a key part of their value system. 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. By the end of 2019, delivery sales were over $4 billion and we continued to see very strong growth in 2020. Customers are seeking brands that reflect their values and the line between the corporate brand and the consumer-facing brand is blurring.. If you think you have reached this message in error, please contact [email protected], Our records show you are not a Member, and this webcast is only available to Members. 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. Voice recognition could be one area to do that. 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. However, shutting down all socialization between senior executives and the rank and file isnt the answer either. Finally, I went to Duke and Im a big Duke basketball fan. 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. Plenty of things. 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. 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? He describes Mr. Kempczinski as a business savant, someone who is able to translate insight into action into results. He also was struck by Mr. Kempczinskis genuine commitment to personal growth and development, as well as his focus on building meaningful connections. 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. (201517), Kraft Heinz But under his leadership, recoveryand growthare once again on the horizon. Ray Kroc left a legacy. For more information on how to manage cookies, please read our cookie policy. If I could go back and do it again, I would be more overt in telling our story. HACER Scholarships for Hispanic Students, Do Not Sell or Share My Personal Information. How do you decide which issues youll address? You are leaving McDonalds to visit a site not hosted by McDonalds. McDonald's CEO Chris Kempczinski talked franchisee relations, the restaurant recovery, and employee wages. 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. In this role, he worked closely with our business leaders and franchisees to identify innovative new ideas and best practices to accelerate system growth. 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. We think we can get even fasterand were also thinking about ways that the digital experience might work in drive-thru. 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. McDonald's CEO, Chris Kempczinski vows to put an end to partying culture at McDonald's (AP [+] Photo/Richard Drew). The prior CEO stepped down last year over a compromise of company values, and this year the company has faced accusations of racial discrimination and sexual harassment. 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. When you put other people first, I think thats what allows you to stand out. Yet Lightfoot hasn't done much to help. When I started in this role, my commitment to you was to listen and learn across the System. President and CEO fries? He has been with McDonald's Corporation since 2015 and is in his second year as president and CEO. Our franchisees were under significant financial stress; there was a lot of anxiety. For example, inclusion is the first rule of any interactions between executives and employees. In the retail space, I have a lot of respect for how Walmart has engaged with their associates to address questions about their corporate brand. When you travel abroad, do you have any favorite international menu items? Steve Easterbrook Separates as President and CEO and as a Member of the . The Committee for Economic Development of The Conference Board (CED)uses cookies to improve our website, enhance your experience, and deliver relevant messages and offers about our products. became President and Chief Executive Officer of McDonalds, the worlds largest restaurant company. Weve seen our customer service scores go up across the globe. Hed come to McDonalds in 2015 after holding top management positions at Kraft Foods and PepsiCo. Some organizations have addressed the time issue by encouraging electronic interactions with employees, either by utilizing social media or in-house systems. That, for me, was incredibly gratifying. We had too many instances where a country or market was almost making up the playbook as they went along, and its because we werent as good as we could have been in sharing best practices. Through trying that product, you get a sense of how the kitchens running. Theres the promise of potentially what youre going to learn but theres also the risk of starting all over. 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. Everybody recognizes the golden arches. Its a leaders job to keep the workforce engaged and motivated, and one of the best ways to engage the workforce is through informal interactions between executives and junior employees. Keeping McDonalds relevant: An interview with CEO Chris Kempczinski. Everybody has a clear sense of it. The 51-year-old Kempczinski is known as "Chris K" around the office. I focused on being a good listener to understand how people were feeling and what we could do to support them. 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? McDonald's CEO Chris Kempczinski said he is spending more time planning so the company is prepared for future executive departures. Weve been in the Drive Thru business for decades, so I dont want to say that we had any foresight in that. What are your 2021 priorities for staying ahead and nimble? 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. Every time you go to a new organization, you take a risk with that. 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. So says Chris Kempczinski, President and CEO of McDonalds 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). 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 in Challenging Times: A Conversation with Dan Schulman, Leadership in Challenging Times: A Conversation with Marc Casper. Pop cultures a great way to do that; our campaigns featuring [rapper] Travis Scott and [singer] J Balvin have paid off in a big way. We just have an incredible footprint that lends itself to delivery. 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? 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. McDonald's CEO Christopher Kempczinski last year doubled his compensation, to $20 million, as the company reported record operating income and he dealt with an uproar over texts he sent to Mayor . We recognize our responsibilities as one of the world's leading companies, and we're committed to being part of the solution wherever we can make a difference. But the flip side is that theres also greater authenticity. And we were constantly pulse-checking our organization. The thing about drive-thru is that no matter how good you are, you can always get better.