The people business: The philosophy at the heart of McDonald’s continued growth
Interview with Yukiko Saito, Chief People Officer, McDonald’s Japan
This article is an excerpt from our research publication SJ3: The pathway to regenerative business. A Japanese version is available on Note.
Introduction
McDonald’s embraces a brand purpose centered around “feeding and nurturing communities”, welcoming a remarkable 1.4 billion customers each year to its extensive network of nearly 3,000 stores across Japan. The company depends on a highly committed workforce of 100,000 staff, including both full-time and part-time employees, to consistently deliver exceptional service. Yukiko Saito, Chief People Officer of McDonald’s Japan, shared insights into what sets McDonald’s apart and drives its continued success.
McDonald’s has always regarded people management as a catalyst for growth. Why is it so important?
Since its founding, McDonald’s has held to the principle that “people themselves are the business”. By valuing our people and investing in their growth, we create a cycle that yields strong business performance.
Our success in driving innovation and continuous development in the food and beverage industry is rooted in our belief that people are the enabler of our growth. To embody this, we advocate our People Promise, ‘we value you, your growth and your contributions’ and our People Vision, ‘striving to become the best employer in every town around the world’.
Rather than imposing an explicit purpose, we aim to build a ‘feel-good place to work’ where our employees can enjoy themselves and feel a sense of fulfillment. Furthermore, we offer our dedicated employees regular training opportunities so they can fully embrace McDonald’s values, which cultivates high levels of engagement within our teams.
Can you tell us more about how you strengthen employee engagement?
The journey starts from hiring and continues until the employee leaves, and our engagement initiatives are carefully designed to create a sense of unity between the company and the individual.
For example, our ‘Hamburger University’, which focuses on store leadership and team management, trains over 10,000 staff annually. Before taking on a store manager role, individuals must dedicate significant time to studying and preparing for exams, and each store is required to have a trained expert ratio of at least 70%.
By consistently investing in our staff, we are able to maintain high service standards, even when team members change. Established in 1970 with the beginning of operations in Japan, ‘Hamburger University’ has played a vital role in the growth and evolution of McDonald’s Japan.
Do you have any unique programs for people working at the head office?
Given that a significant portion of our workforce at the headquarters consists of mid-career hires, our development programs are a little different. However, there is one constant: the unwavering appreciation we have for our frontline staff in stores. The office employees — including the President — dedicate a minimum of three weeks immersing themselves in store operations, acquiring first-hand knowledge of every facet of the business, even down to the nitty-gritty task of cleaning toilets. Being a people business, McDonald’s is a store-first company. That’s why we refer to it as the ‘National Restaurant Support Office’, rather than simply the headquarters.
What’s your approach to sustainability?
Amongst all of our sustainability-related work, I am most involved with fostering diverse talent, promoting flexible workstyles, and nurturing a strong relationship between the company and its employees. Now that there is a strong emphasis on human capital in Japan, it is so important to build effective HR practices and foster equal and engaged relationships between companies and their employees. This approach not only enhances career development but also contributes to a broader and more inclusive worldview.
Despite women staff members representing 60% of the workforce, the representation of women in managerial positions falls below 30%. We’re currently striving to increase these numbers. Moreover, there is a shortage of women store managers, and we must address obstacles such as arranging for successors during maternity or childcare leave and the challenges of working in 24-hour stores. That’s why we’ve introduced a number of measures, including flexible working hours at stores and remote work arrangements for some administrative tasks.
How do you think strategically about sustainability and reflect it in your stores?
In recent years, we’ve seen an increase in complexity from an operational standpoint, due to the popularity of mobile ordering and delivery. With these changes, it’s possible for our staff to feel overwhelmed. In order to continue providing exceptional service, the most important thing is to build an environment that enables frontline staff to feel positive and empowered, and to feel like they are growing. We often say ‘Smile and Hustle’, valuing an environment that fosters personal growth, authenticity and mutual respect. It is in creating this kind of ecosystem that we cultivate truly enriching experiences for our people.
Finding harmony between a cohesive set of values and embracing the diversity of employees can be challenging. How do you navigate this?
Although diversity is so important, relying solely on individual values for providing services to customers can result in a lack of cohesion. That’s why engaging in meaningful dialogue and training employees about the brand’s values is paramount. Building a culture that encourages open communication, where employees feel empowered to express their concerns, plays an essential role in establishing a workplace that employees can be proud of.
It also adds to the individual’s sense of worth, something that became clear in survey results. We take great pride in the fact that over 80% of our employees expressed their satisfaction with a resounding ‘satisfied’ or ‘very satisfied’ in our employee satisfaction survey.
Creating a satisfying work environment may seem challenging, especially in large organisations. The outcomes of McDonald’s employee-centred initiatives are a testament to the power of investing in human capital, and have garnered significant attention in recent years. Moreover, the company continues to distinguish itself by embracing diversity while also providing effective and meaningful training for its employees across Japan.
Fabric is a Strategic Design and Sustainability consultancy helping businesses move towards more innovative, sustainable futures. Based in Tokyo, we’ve been consulting with global and local companies since 2004. We have extensive experience bringing together design thinking, sustainability, and human insight to deliver good strategy for clients.
