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