https://www.conference-board.org/events/CED-Distinguished-Leadership-Awards-DinnerFor more than a quarter century, the CED Distinguished Leadership Awards ha. Keeping McDonalds relevant: An interview with CEO Chris Kempczinski. Following three years at Saatchi & Saatchi, she joined PepsiCo and led marketing and innovation for Gatorade. During this time, he co-created the companys sustainability vision, PepsiCo Positive (pep+), an end-to-end transformation of how the company creates growth and shared value with sustainability and human capital at the center. In this current environment, all companies are being asked to define their mission, their higher purpose. Chris Kempczinski had been at McDonalds 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. Weve been in the Drive Thru business for decades, so I dont want to say that we had any foresight in that. Thats why in China, you find things like bubble tea, which has little tapioca droplets in it. I dont think we did enough to embrace how we are a part of culture. (Laughs.). The importance of [showing up] every day. What dont we know? Morgan earned her MBA from Harvard Business School and her bachelors degree from Dartmouth College. The following are edited excerpts of their conversation. Ukraine News. (201517), Kraft Heinz From here, he moved to roles of increasing scope and responsibility, before assuming the role of Managing Director for the Belgium market in 2001, and Managing Director for the Netherlands in 2005. McKinsey: Marketing has also played a big role in McDonalds recent financial outperformance. Home; Categories. In both his work and personal life, Paul strongly believes in living by a lesson passed on from his Mum: Treat others the way you want to be treated yourself. Weve seen our productivity and our restaurant-level margins improve. A former security chief for McDonald's is filing a racial discrimination lawsuit against the company and CEO Chris Kempczinski, claiming he was fired for speaking out in a meeting. During his tenure, the China and Hong Kong markets were converted to developmental licenses in the largest re-franchising transaction completed in McDonalds history. Working closely with Brunswicks Abu Dhabi and Dubai offices, the Riyadh team advises clients across sectors on areas including financial situations, corporate positioning and issues management. 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. Chris is a proud alumnus of both Duke University and Harvard Business School. Please review the third-partys privacy policy, accessibility policy, and terms. Im a Filet-O-Fish-no-tartar-double-ketchup guy. I like the Nuggets with ketchup. 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. He has been with McDonalds Corporation since 2015 and is in his second year as president and CEO. . COVID-19 has raised the stakes for boards, argues Brunswicks Paddy McGuinness, former UK Deputy National Security Adviser. In her prior role as Vice President of Center HR & People Experience - Emilee led the Corporate Functions HR Business Partner team, HR Operations, Reputation & Engagement, Workplace Solutions, Safety, Security & Intelligence, Change Management, and Aviation. Now, we actually have to create some advantage there. I'm excited to share several leadership updates: . In this role she leads Corporate Employee Relations, Diversity, Equity, and Inclusion, Total Rewards, and Talent Management among other areas. Amid all else thats going on, you recently launched a purpose to feed and foster communities? Chris joined McDonalds in 2015 as Executive Vice President, Strategy, Business Development and Innovation. 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. During his tenure as president of McDonalds U.S. footprint, Kempczinski oversaw the business operations of around 14,000 stores. They like to show me the latest thing that theyve got on the menu and Ill go with that. He joined McDonalds from VF Corporation, where he served as Vice President, Global Inclusion and Diversity, building the companys first I&D strategy and turning it into an award-winning program. Bethany is a graduate of Indiana University of Pennsylvania (IUP) and Ithaca College, where she earned a Bachelor of Science degree in education and communications media and a Master of Science in corporate communications and instructional design. Mr. Kempczinski had barely warmed his chair in the job when the pandemic struck, closing restaurants around the world seemingly overnight. Outside of McDonalds, she actively supports causes that care for the homeless, under-served children, Special Olympics and veterans having proudly served our country. Post earning a Bachelor of Science degree in Logistics and Distribution from Western Illinois University in Macomb, IL, Marion held distribution roles in sales and operations. 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. Paul has been a key member of the McDonalds team for 25 years and in that time has held a variety of leadership roles, always maintaining strong relationships with Franchisees and suppliers. Our purpose is to feed and foster communities, now more than ever. Seventy-five percent of the population across our top markets live within three miles of a McDonalds. At Boeing, Heidi led initiatives for 160,000 employees across a $76 billion global enterprise and oversaw the companys leadership and learning, talent planning, employee and labor relations, total rewards, and diversity and inclusion initiatives. According to salary.com, of Kempczinski's total salary, "$725,000 was received as a salary, $336,869 was received as a bonus, $1,000,005 was received in stock options, $2,500,183 was awarded as stock and $116,283 came from other types of compensation." When you travel abroad, do you have any favorite international menu items?When I travel abroad, I embrace the hospitality of the franchisee that Im visiting. John W. Rogers, Jr., the Chairman and Co-CEO of Ariel Investments, introduces award honoree Chris Kempczinski, the President and CEO of McDonalds Corporation October 26, 2022 07:00 PM ET Marc N. Casper, the Chairman, President and CEO of Thermo Fisher Scientific, accepts the CED Distinguished Leadership Award. Postpandemic, I dont think dine-in will come back to where it was. The more delivery locations you have, and each of our restaurants is a delivery location, the better you can make that experience. And I might with that get either a cup of coffee or a small Diet Coke. 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. In Australia, we provided consumer staples; people could go to their local McDonalds to get things like bread, milk, and butter. 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. Outside of McDonalds, Jon is a member of the Board of Directors for World Food Program USA, a non-profit that supports the mission of the UN World Food Programme to advance the global movement to end hunger. Reggie began his career at McDonalds in November 2020. Youre going to love those grilled onions. Prior to that she was Sr. Director, U.S. McOpCo Controller from April of 2014 to September of 2016. She is a Henry Crown Fellow of the Aspen Institute. Were building on our strong foundations to ensure we have long-term success. Prior to McDonalds, Bethany spent 30 years leading talent development and learning innovations at six companies, including Boeing, GE, Gap, Ethan Allen, IBM and The Interlock Group. In this role, he worked closely with our business leaders and franchisees to identify innovative new ideas and best practices to accelerate system growth. About Chris Kempczinski is President-McDonald USA at McDonald's Corp. Quite simply, we commit to use our Scale for Good.All of this is underpinned by our core values, which are the bedrock of our company. Catherine has also held roles as Sr. Director Global Planning and Analysis, Director Financial Management and Development for US McOpCo, Director of Financial Reporting and Director Corporate Analysis and Support. Every time you go to a new organization, you take a risk with that. Heidi holds a bachelor's degree from Oberlin College in political science and East Asian studies and earned a master's degree in human resources and industrial relations from the University of Minnesota. Yet by the fourth quarter of 2020, the companys global systemwide salesat $25.8 billionhad fully recovered to its 2019 fourth-quarter sales. But Im now a convert to the spicy. j=d.createElement(s),dl=l!='dataLayer'? He previously served as Vice President of Weber Shandwick, a leading global public relations firm, where he supported some of the worlds largest brands with issues management and corporate communications. In this role, Morgan will lean into digital to continue elevating consumers love and trust for the McDonalds brand around the world. If its available, I like a blueberry muffin with that. Kempczinski, previously the president of the fast-food giant's US business, has big shoes . But far more often, its a huge benefit because people just love to talk about McDonalds, and thats something we should lean into. 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. Definitely one of the things thats gained focus is the need for communication. (2019present), Vice president, global strategy, business development, and innovation He builds great teams. tagor villas ritz carlton, abama; daredevil main villains chris kempczinski leadership style. Outside of McDonalds, Chris serves on the Board of Directors for Procter & Gamble. As for drive-thru, we offer it in 95 percent of our US restaurants and nearly 65 percent globally. "The typical person who is a golfer would have about a 1-in-15,000 chance in making a hole-in-one on a particular hole," Victor Matheson, professor of | 12 comments on LinkedIn Are we making the right trade-offs between keeping our restaurants open, keeping communities served, keeping employees employedbetween all of that and keeping people safe? As McDonalds Vice President, Global Chief Diversity, Equity, and Inclusion Officer, Reginald J. Miller oversees the companys global I&D strategy with a focus on transformational change around the world. 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. Kempczinski's genuine commitment to personal growth and development, as well as his focus on building meaningful connections. Married, with 2 children, Holds an MBA from Harvard Business School and a bachelors degree from Duke University, McDonalds Meet our President and CEO, as well as other McDonald's U.S. executive team members who continue to build our legacy and ensure our Golden Arches shine bright. 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? 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. Jo started his McDonald's career as an intern in finance in Belgium in 1992. Were going to make decisions with the long-term in mind. Voice recognition could be one area to do that. Within one year and one month of joining McDonalds, Kempczinski was promoted to president of McDonalds USA in October 2016. Marion was recognized by the National Diversity Council for being one of Illinois 2012 Most Powerful and Influential Women and has been recognized by Black Enterprise as one of the 50 most powerful women in corporate America, 2015, Most Powerful Women in Business, 2017, 300 Most Powerful Executives in Corporate America, 2018, one of the Most Powerful Woman in Corporate America in 2019, a 2019 CNN Risk Taker and a 2019 Chicago United Business Leader of Color. A US Army Veteran, he served as a Supply Sergeant with deployments to Afghanistan and Uzbekistan. Executive Vice President and Chief Financial Officer, Executive Vice President, Chief Legal Officer and Corporate Secretary, Executive Vice President and Global Chief Information Officer, Jill McDonald Ive never forgotten that. He has participated in McDonalds Hamburger University curriculum, as well as continuing education opportunities in data and technology. In his first town hall as CEO, Chris was clear with his expectation that everyone personify the values of the company, recalls Kevin Ozan, CFO at McDonalds. Senior Vice President, Corporate Controller. 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. Its been important to me that were always connecting the decisions that we make back to what we stand for as a company. Prior to this role, he was Vice President of Operations in France, overseeing the creation of the Experience of the Future program, which is currently deployed in all McDonalds restaurants worldwide. I did spend time up front providing a framework a list of five things to help guide those decisions: Were all in this together. Friday evening news briefing: Ukrainian flags raised in Kherson . Response to Chris Hedges. And Kempczinski had been in the role for less than five months when COVID-19 shut down many of McDonalds 36,000-plus dining rooms around the world, sending the companys revenues plunging and generating high anxiety among employees and franchisees. According to Forbes magazine, his total net worth equates to a whopping figure of $2.8 Billion dollars as of March 2013 (Fontevecchia, 2013). Senior Vice President, Corporate Controller, Reggie Miller He earned a bachelors degree with honors from Brown University and lives in Chicago, IL, with his wife, son and daughter. I think for us, to be honest, we just had to catch up. Ian has spent more than 25 years at McDonalds leading markets and functions globally. McDonalds is not responsible for the content provided by third-party sites. Far from being a dead-end job, retail offers an opportunity for people that doesnt exist in most other places.Since 2015, the Honors has raised the funds to continue to provide programs and resources that connect people to an industry thats a great place to start and grow. Chief Marketing Office and Corporate Vice President, International Operated Markets, Paul Pomroy So I wanted, right from the start, to emphasize and refresh the core values that define who we are as a company. became President and Chief Executive Officer of McDonalds, the worlds largest restaurant company. She and her husband, Brian, reside in the Chicago area. So dine-in will still be important, but I think takeaway channels, like delivery, drive-thru, and order ahead with curbside pickup, will stay elevated for the foreseeable future. Under her guidance, Boeing reimagined their HR model and transformed talent development and mobility system wide. I get asked sometimes, What exactly do you do as CEO of McDonalds? It can seem as though the system runs itself. At the end of the year, we asked our employees, Did you feel supported in 2020? and over 90 percent said they felt well supported. Finally, I went to Duke and Im a big Duke basketball fan. 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 purpose to feed and foster community to life. Any time youre in a crisis, you can get a little bit short-term focused. Instead, Mitchell and Bob Rupczynski were given newly-created senior VP roles. Additionally, weve been able to expand the number of restaurants offering delivery to more than 30,000. Mark graduated magna cum laude from The College of William & Mary with a bachelors degree in International Studies. new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0], As Executive Vice President International Operated Markets (IOMs), Jill oversees our five largest wholly-owned international markets and our IOM Business Unit, consisting of our remaining wholly-owned international markets. He began his career in brand management at Procter & Gamble, and also held senior positions at PepsiCo, and most recently at Kraft Foods where he was EVP, Growth Initiatives and President, International. What Im most impressed with are the people who are servant leaders the people who prioritize others.What decisions did you make during the pandemic that proved critical? Subscribed to {PRACTICE_NAME} email alerts. She has also served as the US Global Womens Leadership Network Co-Vice Chair. We were lucky in that McDonalds franchisees came into the pandemic in a very strong position. Pauls life outside of work is centred around his family, spending as much time as possible with his two young boys. In that same press release, McDonalds announced the companys new CEO was taking the reins immediately. Theres nothing more important to my job than making sure McDonalds is as relevant 10 years from now as it is today. Given your particular focus on those factors, even before you became CEO, its almost as if you saw the pandemic coming. We also put the onions actually on the grill as opposed to putting the onions on at the dressing table. Prior to joining McDonalds, Emilee was Vice President of Change & Culture at CNA Financial Corporation, where she focused on advancing new go-to-market business strategies, organizational restructuring, implementing a new HRIS, leading the design and move of a new headquarters location, and establishing a new leadership model in line with the purpose and values. Ian also spent time as Managing Director of McDonalds Ukraine. Gonda leads a team across corporate and U.S. communications, media relations, crisis communications and brand communications. Brunswick Partner Jayne Rosefield is Head of the firms Chicago office and Global Consumer Industries Practice. On occasion I will do a Quarter Pounder. 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. The circumstances were unusual. Chris Kempczinski: Yes, a couple of things come to mind. Bethany leads Hamburger University across 8 global locations, providing experiential and virtual learning to upskill restaurant management and crew members. 5 things you need to know. We did have a leader who didnt act in accordance with our values, and youve got to hold everybody to the same account. That praise encouraged co-workers to come up with similar innovations, such as ice-skating and rollerblading. 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? As President and CEO of McDonalds, Chris leads the millions of dedicated McFamily members who help create delicious, feel-good moments for everyone. Photograph: Jerritt Clark/Getty Images for McDonalds. Are there particular mentors or heroes whose words or examples have helped guide you this past year? I could never have anticipated how much those messages would resonate. Right now, Im reading Ten Lessons for a Post-Pandemic World, Fareed Zakarias book on what the world might look like when the pandemic is over. In 2010, Jill became the Managing Director for our UK business and President, Northern Europe, sustaining strong performance across all metrics of our company, including a strengthened brand, a reinvigorated employee experience and double-digit sales growth, all while fostering successful franchisee performance and engagement. Under his stewardship, the UK and Ireland business achieved gender balance at every level, including the Executive leadership team, and was nationally recognised McDonalds as the Top Employer for working mums, as well as being awarded the Best Employer for Mental Health. As a member of the McOpCo Business Unit Leadership Team she was responsible for financial management, portfolio optimization, operational financial consulting and safety risk management. But those are areas of uncertainty. He also reimagined the Foundations global strategy towards advancing a more sustainable food system through new partnerships and investments to alleviate hunger, provide access to safe water, and drive economic empowerment. Were going to lead by example. As a working dad, Paul has consistently led conversations within the business and industry on the challenges of balancing a demanding work life with being a good husband, father, and friend. 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.. The thing about drive-thru is that no matter how good you are, you can always get better. After Kempczinski's comments ignited a political firestorm, McDonald's pledged $3.5 million to 40 neighborhood organizations. 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. How do you think youve improved the companys marketing since you became CEO? In this role, Manu oversees the companys Data Analytics, Digital Customer Engagement, Global Marketing and Global Restaurant Development and Restaurant Solutions teams, creating a more authentic and compelling experience at each physical and digital McDonalds customer touchpoint. Please try again later. So what do you do? McDonalds announced that its CEO, Steve Easterbrook, was being removed from his position due to breaking company guidelines regarding relationships with employees. In 2012, Paul was promoted to the position of Senior Vice President, Chief Financial Officer, with additional responsibility for the companys Development and Supply Chain functions. The global technology organization powers the industry-leading capabilitiesfrom restaurant and digital technologies to business infrastructure and cybersecurity. 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. Jenny earned her BS/MS in Earth Systems from Stanford University and her MBA from the Yale School of Management. Evidence had emerged that McDonalds then-CEO, Steve Easterbrook, had violated company policy and undermined company values. The onion flavor gets sort of seared into the beef. Yes. Morgan developed her passion for global brands early in her career. 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. I stepped up my communication to make sure that our employees understood what our plan was to get through thisbut also to get a lot of feedback. Prior to that, he led the International Developmental Licensed Markets, where he was responsible for 46 developmental licensees (DLs) across more than 80 markets around the world, including Brazil, China, India and Philippines, which continue to represent the majority of McDonalds new restaurant growth globally. AsChief Marketing Officer and CorporateVicePresident of International Operated Markets, John Alves leads the development and execution of marketing strategies for McDonalds sixlargest markets outside of theU.S.(China, UK, France, Germany, Canada and Australia). Customers are seeking brands that reflect their values and the line between the corporate brand and the consumer-facing brand is blurring.. Chris joined McDonald's in 2015 as Executive Vice President, Strategy, Business Development and Innovation. Senior Vice President, Chief Learning and Development Officer, Catherine Hoovel We also put the onions actually on the grill as opposed to putting the onions on at the dressing table. In his previous role, John wasManaging Director of McDonald'sSpainfor two years, delivering aperiod ofexceptional results. Chris Kempczinski. Notably, as EVP, Chief Information Officer and Global Business Services at Cardinal Health, Brian completed one of the largest SAP implementations in the industry, to drive value throughout the company. Much of it is done through third-party operators, like Uber Eats, DoorDash, Just Eat Takeaway, and Deliveroo, but in some marketslike parts of Asia, Australia, and Germanywere actually experimenting with hybrid models, including self-delivery. Re-Franchising transaction completed in McDonalds history were given newly-created senior VP roles industry-leading capabilitiesfrom and. 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