McDonald's When Steve Easterbrook took over as CEO at McDonald's, the changes were dramatic and swift. Gone was the "family" atmosphere and in was the "team." (You can't choose your family members, but you can choose your team.) Easterbrook cut costs, cut people, and cut trust with many of the people working there. He moved the company's headquarters from Oak Brook Illinois to Chicago and picked a location that would make it difficult for a long-time employees to access it via the commuter train station. The new location had an open floor plan and a bar on the top floor of the building. It was at this bar (the company had Thursday night happy hours) that became a focal point when Easterbrook was accused of sexting and carrying on a relationship with an employee - all against company policy. The board unanimously decided to fire Easterbrook, but not for cause, allowing him to leave with over $40 million in severance. Subsequently, it was found out that Easterbrook had relationships with at least three other employees and sent inappropriate pictures and messages over company e-mail.

Normally, a conservative company like McDonald's would likely do everything in its power to sweep the entire circumstance of Easterbrook's departure under the rug - especially a family-oriented company like McDonald's. However, the decision of the new CEO Chris Kempczinski was to do the opposite. The head of human resources (a friend of Easterbrook) was fired and the company filed suit to recoup the severance package given to the ex-CEO. "In situations like this, there's a tendency to gloss over it. But I thought it was very important for us to be very upfront and frank about what had happened," Kempczinski said. The new CEO saw the lawsuit as a sign to employees that they can trust the organization and that nobody, regardless of level, is above company standards.

Kempinski is now trying to foster a "speak-up" culture within the company - not only for reporting misdeeds, but also for new ideas. The culture as a whole is also getting a once over. Heidi Capozzi, executive vice president and global chief people officer, has implemented a number of actions including a cultural assessment, listening sessions, review of hiring and promotion practices, as well as an investigation of how employee complaints are dealt with. Following Easterbrook's dismissal, an Atlanta based franchisee said, "The CEO does not define the organization. They get the attention, but they're not McDonald's."

Questions

• What are the advantages and disadvantages of McDonald's choice to sue its former CEO?
• Why is it easier for a CEO to tear down a culture of trust than it is to build one?
• If you were Kempczinski what are some things you would focus on to help it reinstall the culture at McDonald's?