Mcdonald's Case Study

McDonald’s Case Study

Traci Hill Roberts

July 21, 2013

Talent Management- HRM 532

Dr. Robert D. Waldo, SPHR

1. Outline the talent management program that led to success for the company. McDonald's is the world's leading global foodservice retailer with more than 34,000 locations serving nearly 69 million customers in 118 countries each day (mcdonalds.com). In 2001 senior management noticed several factors that led to the conclusion that a more robust talent management and development system was needed if they wanted to stay competitive amidst their growing competition. Firstly, after many years of profitable business results and growth, McDonald’s experienced its first quarterly loss in its history. This was realized in contrast to incredibly high performance management ratings for its managers. Senior management recognized that clearly there was something wrong with high performance ratings that did not align with company performance. Secondly, it was noted that, despite these high performance ratings, when key leadership positions became available, there was difficulty finding employees that were truly ready to take on these roles and responsibilities within the organization. As a result, in 2001 McDonald’s began to implement a strategic plan to develop a more consistent and disciplined approach to talent management and development (Goldsmith and Carter, 2010. p. 156).

This system included 1) the redesign of McDonald’s Performance Enhancement System, 2) significant enhancements to their Global Succession Planning and Development Process, 3) the design and implementation of a customized leadership development program called LAMP (The Leadership at McDonald’s Program), as well as the introduction of 4) The McDonald’s Leadership Institute and 5) The Global Leadership Development Program. All of this was designed and implemented with the intent of supporting McDonald’s business strategy of becoming “everyone’s favorite place to eat” and by instituting a “plan...