Work the way you liveDeloitte Shared Services Conference 2019

Breakout 18: Transforming McDonald’s global business services from the inside outJennifer Sturch and Alex Fraser, McDonald’s

Your ‘go to’ menu item at McDonald’s

Big Mac

McChicken

McNuggets

MilkShakes

…

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McFacts – Did you know?

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Setting the Stage

McDonald’s GBS has undergone 3 important transformative phases

1996 – 2010MCDONALD’S NORTH AMERICA

SHARED SERVICES

ESTABLISHED

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2010 – 2016TRANSITION TO A GLOBAL

SHARED SERVICES MODEL2

2016 – 2018CREATION OF A GLOBAL

MULTIFUNCTION GBS

ORGANISATION

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4

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GBS MATURITY

VA

LU

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OC

US

GBS Scope of Services

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• Global Financial Service Delivery (STP, OTC, ATR, RTR)

• Change Enablement

• Performance & Financial Management

• Client Service Delivery (CRM)

• Employee HR Services

• Payroll, Payroll Tax & Benefits Admin

• Mobility Services

• Equity & Compensation Reporting

• Strategic Meeting & Events Management• Creative Consulting, Design & Brand Management• Global Travel Management/Corporate Card Program• Digital Asset Management

• Global Process Ownership & Compliance

• Governance Services & Performance Management

• Continuous Improvement & Knowledge Management

• Global Data Excellence & Automation

GLOBAL BUSINESS SERVICES

GBS FINANCE

GBS PEOPLE

AGENCY123

OPERATIONALEXCELLENCE

One Global BusinessServices Organization

Hybrid Service Model with McDonald’s& 3rd Party (Third Party) Delivery Centers

In Market Teams

Chicago, IL, USA

Oak Brook, IL, USA

Columbus, OH, USA

Hyderabad and Bangalore, India

(Finance only)

Birmingham, UK

Paris, France

Moscow, Russia

Munich, Germany

Sydney, Australia

Our Turnaround Story

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2016 – 2018CREATION OF A GLOBAL, HYBRID, MULTIFUNCTION GBS

ORGANISATION

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2015 – McDonald’s Turnaround and GBS’ role

Velocity Growth Strategy initiated 2015• Experience of the future

• Digital

• Delivery

Global re-structuring and outsourcing initiatives launched

Significant shift to greater Franchising

Shift in culture and mind-set - progress over perfection

Our industry, our business and our customers were changing at an unprecedented pace

By 2016 we were underway creating our global hybrid, multifunction organisation

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By 2017….we began to see that our journey needed to chart a different course – a UK&I case study

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8BusinessFranchisee Suppliers

UK Economy & High Street Challenges

Business turnaround strategy moving at pace

Evolving Organisational Structures

Increasing Franchisee Ownership

Greater Complexity (Digital, Re-image, Consumers, Technology)

How do we need to change and make the RIGHT difference?

Accurate & Timely Services Complete & Easy Information Attention to Customer Service Support for Strategic Initiatives

Customers & stakeholders providing consistent feedback on GBS Finance UK&I not meeting service delivery expectations – we needed to identify the root causes and understand the priorities clearer.First step in search of the answers was to Stop, Look, Listen to Customer perspective on our Performance, People and Processes and take meaningful action…

Reputation & BrandDelivery & PerformancePeople & Culture

GBS Employee SatisfactionImproved business knowledge & skills

Employee engagementFuture GBS capabilities

Continuous Improvement Culture CI training and championing

CI mind-setValue and capacity creation

Customer EngagementService training and mind-set

Customer engagementImproved experience and satisfaction ratings

Meaningful Actions that built our “Why?” we are;

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Our response was to take a completely fresh look at every process, activity status, control and deliverables and ask “Why?”. Uniting the team behind a clear purpose and developing a culture that drives improvements in our people, processes and technology – the foundation for building customer trust and being able to better support local and global growth initiatives.

Monitor and Measure

2018

Individual & Team Insights

UKI CFO & FDCentre Visit

Accounting PrinciplesWorkshop

2017

Validate Service Catalogue & Review

Org Structure

Task Force on Critical Issues

QuarterlyTeam Pulse

Check

Business & Stakeholder

update

Frequent & Open Customer Engagement

Start Monthly Team Pulse

Check

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And 18 months later….

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BusinessFranchisee Suppliers

Our Transformation Story

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2018 AND BEYOND

BUILDING A DIGITALLY ENABLED GBS FOCUSED ON

CONTINUOUS IMPROVEMENT AND CUSTOMER OUTCOMES4

McDonald’s Polling 2: Placeholder slide

Use Multiple Option Poll

What areas are your top 3 transformation priorities in your organisation’s GBS/SS function

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- Enhancing the Operating Model (establishing SS/GBS)- Optimising Service Placement (retained/outsourced)- Evolving Service Delivery Location- Building Talent, Skills & Capabilities- Employing Enabling Technology- Managing Data Governance- Developing/Running Continuous Improvement Program- Testing/deploying Intelligent Automation & Robotics- Modernising Customer Experience- Other……

McDonald’s Global Business Services (GBS): Strategy on a Page

VISIONTo be recognised as a valued business partner and world-class global business services organisationfocused on excellence in our people, services and execution.

STRATEGY

CAPABILITIES

We will deliver our commitment to a better McDonald’s through transforming the way we do business with a focus on…

Our strategy is enabled by applying fundamental capabilities to the work we do each day.

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Employee Experience

Customer Experience

Digital Enablement

Service Growth

Service Excellence

Customer Obsessed

Continuous Improvement Driven

Results Focused

Service Oriented

To accelerate our Transformation – we have established our GBS ‘Game Changers’

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Driving & leading a culture of Continuous Improvement

Policy Standardisation – consistent policies to drive improved outcomes

Process Reengineering – e2e simplification, quality and customer experience

Intelligent Automation – to create capacity, efficiency & effectiveness gains

Digitising our work through Intelligent Automation

Robotics – eliminating rules based, manual, repetitive tasks

Artificial Intelligence – opportunities for self-learning & adaptive technology

Supporting Technologies – optimal use of OCR, SharePoint & Reporting Tools

Modernising the GBS Customer Experience

Define ‘Moments that Matter’ – solutions that drive a seamless experience

GBS Talent – developing new skills & capabilities for our workforce of the future

Systems Replacement – addressing legacy systems