Lessons in Management: McDonald’s During the 1970’s

Posted by Jesse Kliza in Business, Leadership, Management

Late last week I had the privilege of talking with someone that opened and ran numerous McDonald’s in the 1970′s.Two things he said really stuck out to me.  One speaks of his own innovative management practices and the other of the leadership of McDonald’s CEO at that time (Fred Turner).

He told me about one McDonald’s he ran in particular, and how he had problems in that area with many of the younger employees.  He came up with a hiring strategy in which he would hire half younger/teenage employees, and half nannies.  What he found was that the nannies would naturally organize, and manage the younger employees.  He said it was so successful that he rarely had to deal with disputes, or really run the store himself.  He would come out of his office, and the nannies that were working would immediately tell him to relax, and assure him that they had everything under control!

What an innovative management strategy!

He also told me something that Fred Turner said to him, and the other 48 managers at the time that were out in the field, growing the McDonald’s business, and opening stores all over the world.  He told them: “When you guys are out in the field, you are the CEO. You make the decisions, and you’ll be right 75% of the time.  And that’s the best rate in the industry.”

Fred empowered his employees to make decisions and he encouraged and inspired them to be the best.

I love hearing stories like these.