Transformational Leadership at McDonald’s

Anonymous

Background 

Frank has been the manager of a busy McDonald’s franchise for seven years and is known for his energetic and positive attitude. He has been continually working to transform his team’s performance and customer satisfaction levels, and the store regularly wins regional mystery shopper contests. He believes in empowering his staff, creating a fun working environment, and tries to consistently find improvements in service speed and delivery.

Key Challenges

High Turnover Rate: The store location has a historically high turnover rate of over 50%, which can impact service quality and team morale.

Customer Service Issues: There are sometimes periods of time (a few weeks to a couple months) where customers submit reviews about poor food quality or the speed of the service they received.

Employee Engagement: When employees leave, one of the most common reasons is that they feel like they are underappreciated and are part of an assembly line.

Frank's Leadership Approach: Frank wants to complete a drastic culture shift and brings forward the following changes he would like to implement:

1. Frank’s new vision: “We’re not just serving food; we’re creating memorable experiences.” He shared success stories during team meetings, such as a story about how an elderly couple routinely brings their grandchildren for ice cream a few times a month, emphasizing the importance of their role in the community.

2. Frank observed the employees for a week, and created a list of each employee’s strengths and improvements they could each make to help complete their tasks more efficiently. He then began to meet one-on-one with everyone to provide feedback and give praise when people did an excellent job.

3. Frank also decided to hold monthly brainstorming sessions where employees could propose ideas to improve service efficiency. One employee suggested a reorganization of the cooler and freezer, which resulted in the ability to more quickly grab items running low during times of high demand.

Results

After implementing these strategies, Frank achieved the following results within a year:

Turnover Rate Reduction: Reduced turnover from 50% to 20%.

Customer Satisfaction Scores: Improved from 70% to 90% on customer feedback surveys.

Employee Engagement: Employee satisfaction surveys indicated a 40% increase in morale and engagement.

Lessons Learned

When employees feel empowered and valued, they take ownership of their roles, which can cause enhanced performance.

Regular communication and feedback are crucial for helping create a positive work environment.

Encouraging staff to contribute ideas can lead to significant operational improvements.

Discussion Questions

How can transformational leadership impact employee morale and retention in high-turnover industries like fast food?

In what ways did Frank’s leadership style address the challenges faced by the franchise?

License

This case study is licensed CC BY 4.0.