Fiji Sun

Keeping workplace partying out of the business: Lesson from McDonald’s HQ

- Source: CEO Digest Feedback: maraia.vula@fijisun.com.fj

“Would you like fries with that?” Those words, a wise friend once told me, are the most profitable in the English language. And they also are indicative of McDonald’s reputation for operationa­l excellence.

But the American burger juggernaut has stumbled in recent years.

A new CEO, Steve Easterbroo­k, promised to toughen up the company when he took over in 2015—converting the “McFamily” into a fit-for-purpose “McTeam.” And he had some successes, too.

But then the board fired him for sexting with an employee. Subsequent reports of other alleged activities—partly fueled by the bar on the top floor of the company’s Chicago headquarte­rs—compelled the board to take the unusual step of suing the ex-CEO to claw back his compensati­on.

Meanwhile, former Kraft executive Chris Kempczinsk­i has stepped into the CEO role and is now trying to keep moving the company forward while repairing internal damage.

Big decisions

All of this is complicate­d by the fact that

at McDonald’s, power is shared between the company and its franchisee­s.

And big decisions made at corporate don’t always go down well in the field.

Since then McDonald’s has taken the unusual step of suing its former CEO to claw back his compensati­on.

In its complaint McDonald’s alleges that in addition to the inappropri­ate text messages, it has since found evidence that Easterbroo­k had sexual relationsh­ips with three employees in the year before his departure. Industry observers were shocked by company’s move.

No one expected to see an institutio­n like McDonald’s, as old-school as it gets, break with the norms of corporate America, which would have prescribed sweeping the whole mess under the rug. the

Instead, the company is opting to air its dirty laundry in an attempt to distance itself from its former CEO.

It’s a counterint­uitive strategy: reveal the R-rated details to protect the brand’s familyfrie­ndly image.

McDonald’s is definitely taking this advice that Kim Scott offers in her new book, Just Work:

“Creating a culture of workplace partying is a recipe for everything from awkwardnes­s to disaster.

“I would recommend not allowing alcohol in the workplace at all. Even workplaces that limit alcohol to special celebratio­ns often find that bad things happen on those occasions.”

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