Talent Management at McDonald's and how succession planning was done so that they always had a contingency plan

1. McDonald’s Talent
Management and
Leadership Development
TALENT MANAGEMENT
Presented to
Prof. Ashutosh Muduli
Presented by
Darshit Paun 20131010
Nilay Dave 2013
Shirshendu Mandal 20131050
Siddhartha Bhatnagar 20131051

2. Goal of Talent Management
Today’s Leader
High performance committed
leaders
Tomorrow’s Leader
Deep, Diverse pool of
replacement candidates
Development Culture
Culture that both demands
and supports learning and
development

3. Scope of Talent Management
 Talent Planning/ Forecasting
 Talent Assessment
 Staffing /Recruiting/ movement
 Development

4. Step1: The Starting Point
 Moved from five to three rating category with new rating labels.
 Established target rating distribution of 20% in the highest
category,70% in the middle category and 10% in lowest category.
 Added demonstrated competencies in evaluation criteria.
 Aligned compensation system to ensure that pay differentiation
matched performance differentiation.

5. TALENT MANAGEMENT PLAN
 To assess the depth and diversity of the talent pool.
 Talent Plan reviews were conducted at the senior management
level on an annual basis.
 Senior managers to report the strengths of their current leadership
teams and the depth & diversity of their leadership pipeline.

6. KEY ELEMENTS OF TALENT PLAN
Forecast of
leadership
requireme
nt
Assessment of
performance and
advancement
potential
Identificati
on of
backups
for key
leadership
position
Diversity analysis
and improvement
Retention
Strategy
for top
talent
Leadership
development
strategy for key
talents

7. LESSON’S LEARNT
 Strong linkage required between the business strategy and the
Talent Plan.
 Disciplined approach to the plans and track its progress.
 Start the process at the top of the organization and gradually come
down to all the levels.
 Not much emphasis be given to the empirical data to avoid
“stretching the truth”.

8. Accelerated Development
Processes
In 2003:
 Leadership @ McDonald’s Program (LAMP)
In 2004:
 European Leadership Development Program (ELDP)
 Asian Leadership Development Program (ALDP)
 Middle Eastern & African Leadership Development Program
 LAMP Americas

9. LAMP
 Global
 24 high-potential director/senior directors
 Participation- Europe, Asia and the Pacific, Middle East, Latin America, and the
United States.
 Diversity: 40% Women and 39% minority participants representing 11 countries.
 Candidates nominated by senior leaders, Screened & admitted to program by CEO.
 Primary designed – Internal resources
Design & execution- Consultant/ Facilitator & Internal Staff

10. LAMP
Goals
Exposure to
business
issues
Self
developme
nt
Build
organizatio
nal
engageme
nt
Broaden
understandi
ng of
business
Enhance
leadership
skills
Build
relationship
s & strong
networks

11. LAMP- Key Elements
 9 months program – 6 classroom session (3-4 days each)
 Third party assessment & a 360 degree survey feedback
 Detailed personal development plans
 Executive dialogues at every session
 Coaching – by Facilitator & Peers
 Leadership Modules
 University experience
 An action learning project
 Presentation by senior leadership team

12. Statistics till 2009
 4 LAMP sessions, 3 ELDP sessions, and 3 ALDP sessions
 Total graduates- 200
 Women participation- 42%
 Representation from 45 countries
 37% of graduates of all programs have been promoted

13. Lesson’s Learnt
 Start small, with a pilot, & establish a brand.
 Length of program matters.
 Selection of Action learning projects is important & should have
strong sponsors.
 Scales project correctly
 Programs in different areas of the world need to be shaped &
customize.

14. Leadership Development
 2006 – Decision was made to launch the McDonald’s Leadership
Institute.
 Virtual Centre providing accelerated development programs,
 Transition programs
 Core programs
 Online Development Resource Centre (Personal Development
related resources accessible from anywhere around the world)
 Leadership Dialogues from Senior leaders and external thought
leaders.

15. Scope of Resources for McDonald’s
Leadership InstituteCareerTools
Complete your
internal profile
Prepare for an
interview
Leadership
position profiles
Development
planning
360 feedback
Development
Planning Support
Online
Development
Resource Centre
Development
Resources
Internal
Development
curriculum
University
programs
Self-study books,
articles
Executive
Coaching
Job transitions
On-Boarding and
assimilation
support
Job transition
support
Accelerated development programs
GLDP LMP ELDP ALDP
Talent Management
Development Culture
2006 Launch

16. GLDP – Global Leadership
Development Program
 Accelerating development of highest potential officers.
 Funded from CEO’s budget
 Global Effort to build leaders using internal expertise and external thought
leaders.
 Focus on
 Knowing the market and the customer
 Executing to deliver results
 Leading innovation
 Paying attention to ethics and values
 Enhancing self-awareness and driving for continuous personal development.

17. Metrics to measure impact of TM
initiatives
Strength & Diversity of
Current Leadership
Team
•Annual performance
Rating distribution
•% of leaders
assessed having
higher potential
•% of lower
performers on
improvement plans
•Year-over-year
changes in diversity
Depth & Diversity of
feeder pools
•% of key leadership
positions for which at
least 2 backups
identified
•Diversity of feeder
pool candidates
Retention of top
performers & those
with high potential
•% of those rated
exceptional
•Retention of leaders
with high
advancement
potential

18. Improvement Areas
 Strong linkage between talent planning and strategic planning
 Making better use of planned job moves to accelerate
development
 Improving overall execution

19. Conclusion
 Carefully planned approach in building talent management.
 Started with fixing PMS
 Untimely deaths of two of its top leaders bolstered the requirement
of talent management initiatives.
 The metrics have been tracked and appropriate changes have
been made with time to ensure a strong leadership team in place.

20. Thank You