Monday, December 24, 2012

The legendary McDonald’s System





IN the book I recently launched, Franchise Wisdom From The Masters, I shared with the readers the Legendary McDonald’s System.
Fred Turner is largely acknowledged as the genius behind the operating regimen of McDonald’s. Fred’s dedication to the operating details of the system is carried up to the present day. This completely complemented Ray Kroc’s personal commitment to quality, service and cleanliness (QSC). QSC is an innovation of McDonald’s that distinguished them from competitors.
Achieving uniformity is the toughest single task of any franchised food service business. McDonald’s had one operational secret that made them a standout in the food industry—they found a way to obtain strict manufacturing uniformity without stifling the individual creativity of its operators through excessive regimentation.
Its commitment to QSC was well known. It was more than a commitment, it is almost a religion to everyone in McDonald’s. Ray would constantly tell operators “Do it my way or you won’t be around.”
Kroc decided that to build a national chain—one could be licensed to hundreds of newcomers of the restaurant business—he would have to develop a far more refined system of operation than the one he originally had. He needed a system that was so solid and yet so simple that it could convert novices into strong operators within weeks.
The McDonald’s System is built on four areas: improving the product, developing superior supply relationships, upgrading the building and equipment package and organizing a field force to train licensees and monitor their stores.
Top management adopted a process of discovery that was used to develop new ways of improving the processes in the system. Everything was done on trial-and-error basis. No idea was unworthy of discussion. Most were worth trying. McDonald’s system evolved as a result of thousands of operating experiments made in the real world of store operations. Turner would say, “We were continuously looking for better ways to do things, and then a revised better way to do them, and then a revised, revised better way.”
By spelling out its operational procedures so carefully, McDonald’s signaled to its franchisees how serious it was about their meeting its standards.
All operating details are contained in the voluminous Operations Manual of McDonald’s that gets changed and revised very frequently.
The characteristic that was most responsible for creating the family image Kroc was looking for  was the cleanliness aspect that was built into the system. The first Manual of Turner clearly documents the stringent requirements for cleanliness in the system. Even other franchisers accept the uncommon dedication to cleanliness of McDonald’s. Thus, this set the standard for the rest in the industry.
McDonald’s was overly intense when it comes to enforcing its operating standards. Kroc realized that a national food chain had to require operator’s conformity with a very strict set of standards. “We found out that we cannot trust some people who are non-conformist. We have to make conformists out of them in a hurry.”
Finally the real secret of McDonald’s successful operating system is not found in its regimen but in the way it enforces uniform procedures without stifling the entrepreneurial spirit of its franchisees.
For entrepreneurs who are looking for ways on how to further improve their business, it may be better if they can ponder and discuss the pointers with their team. The entry of McDonald’s in the Philippines way back in 1986 did create an impact on improving the standards of many food establishments.
Those who are interested in copies of my latest book may just send me an e-mail.

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