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Group H: Module 8 Research and Report Back

McDonald's, like many large corporations, has had its fair share of scandals and bad press. The article McFamily Feud: Scandal, lawsuits, and cultural upheaval at McDonalds exhibits weak workplace culture that took place at one of the worlds most famous fast food restaurants. In 2015, McDonalds was going through a financial crisis and Steve Easterbook stepped in as CEO. He quickly made employees unhappy by getting rid of anyone who followed McDonalds old practices. He wanted to wash away any old remnants of the culture that existed before him. Mass firings ensued and this did not bode well for new employees as they were entering an environment that had almost completely lost its identity. Not only was this a bad first impression, but it made employees feel like McDonalds was operated more like Congress than a corporation (Kowitt).

Amongst the multiple lawsuits McDonalds was facing, new CEO Chris Kempczinski, had many obstacles to overcome. He stated, When you have to make some tough decisionssome decisions that maybe are unpopular, it's going to subject you to criticism, and that just goes with the territory. (Kowitt) With the constant clash between franchisees and corporate, finding the middle ground seemed almost impossible. By understanding the McFamily and what it means to be a part of it, Kempcizinski is attempting to implement change by what he calls a speak up culture (Kowitt). This gives employees and franchisees an opportunity to not only share new ideas, but also report any misconduct that may occur in the company.

Another issue companies face is decreased performance levels, which could involve profit, customer service or employee production. Before the overhaul in 2019, Sams Club was experiencing employee turnover and decreasing sales. Chief Product Officer, Tim Simmons, was the change agent who implemented the plan which led to a 43% increase in sales and lower employee turnover. Two ways this was accomplished by decreasing the number of products on the sales floor and stocking the store during the day to increase the number of employees available to assist customers during operating hours. He encouraged employee feedback and changed outdated systems and structures that hindered performance.

Tim Simmons came up with new technology that helped transform the employee experience. They created an app that tracks inventory and requires employee feedback to improve. It helps sell the products better as well as allowing employees to save time, since they no longer have to go through pages of information to track inventory. This app was launched slowly covering only a couple of stores till it was launched all across the country. Feedback was required to ensure efficiency throughout the expansion. This new technology helped with reducing turnover as it made it easier for employees to do their daily task since they already knew the explanation behind everything. It also made it easier for customers to shop because it reduced the time it takes to help customers.