Happy
Meals, analytics, Customer focus and a Happy Glow
When we took our three year old
daughter to McDonalds for her birthday treat recently, I checked whether there
was a ‘birthday drill’ they had (like some Pizza joints). They did, but it
sounded a little too loud for a three year old’s comfort. So, I settled on
buying a happy meal, given the little toy that comes with it. The series was
that of the Smurfs and I was quite curious to choose an interesting one. What
surprised me was the fact that the person at the counter brought the whole box
of toys, spent time finding unique ones and then let me choose. It isn’t the
end just yet. When I chose three of them and asked my wife if she was ok having
a “happy meal” too (just so that we could get all the three toys), the employee
intervened and said that we could order whatever we wanted and that the two
additional toys were a gift from McD’s.
What struck me and stuck with me was
the fact that here was a person who wasn’t a manager, had the initiative to
bring the entire stock of toys, had the discretion to have a colleague fill in
while he moved out of the counter to help me select the toy and actually give
two more toys away! There was a manager around all the while and the employee
did all this in the full view of the manager. So, obviously, he did nothing
‘illegal’ in the McD’s ecosystem. From a business point of view for McD’s, I
think the return on investment of two additional Smurf dolls has more than paid
for itself. Not only did I gush about it on Facebook and to my friends, you are
reading about it probably half way across the world too!
So, what led to all this value
creation for McD’s in this case? Was the employee given a bonus? I don’t think
so. Did he feel happy too? I am sure he did. I felt something was missing here.
Rather, something was happening here. Typically, every business faces a
fundamental paradox. Its called the Principal-agent problem in Economics, and
to put it simply, it is because the promoters and the employees are expected to
behave in their own little self interest. Go a little deeper and we are looking
at constant tension. If a bonus is paid for achieving sales, it goes against
the Principal’s self interest. If it is not paid, it goes against the agent’s!
Assuming that the bonus is actually going to produce a favorable behavior, it
is worthwhile to remember that the behavior is likely to continue as long as
the stimulus is present. So, in order to achieve psychological satisfaction for
the employee, while not draining the Principal is the dilemma.
So, is there a way that value
creation of the business can be achieved with a humanized approach? I think
there is.
Much like in solving a coaching
dilemma, the answer lies outside the plane of focus. One of the ways of solving
the problem of seemingly opposite self interests is by making the organization
purpose driven. Purpose has this seemingly magical quality of dissolving the
paradox and aligning the inherent interests of both the principal and the agent
in the same direction. The purpose of a company need not possibly be an
esoteric statement. It could be a Customer Promise.
While writing this article, a little
online research took me to the website of cedwardsgroup.com that is the
operating company of seven McDonald’s restaurants in Western North Carolina. “The
McDonald’s Promise” reads thus, “With a sense of fun and youthful spirit, we
will proudly serve an exceptional McDonald’s eating experience that makes all
people feel special and makes them smile every customer – every time.”
Having a customer promise and
aligning all people systems to either feed into that eventually could be any
service company’s dream goal. Just having constant ‘indoctrination’ from
induction to learning to appraisal to compensation to recognition to talent
management to exit, is definitely the first step in the right direction. Reporting
them back to the employees in the form of effort/efficiency/effectiveness
metrics is the next step that helps build learning into the system. But it shouldn’t
possibly stop at that. Having Impact metrics that are customer centric like the
Net Promoter Score helps moving the organization from going around in circles
to moving up a virtuous spiral of value creation. The plus point being that the
entire organization’s decision making sounds like a well tuned instrument that
allows individuals make a difference to others, all the while working in the
best interests of the company. Compassion is known to create happiness to the
practitioner. So, would such employees have a glow? I am sure they would. So
would the customers. Wouldn’t they?
Introducing the three Smurfs who
triggered this article. Noticed the glow on one of them?
Siddharth is the Chief People Officer at www.Cloudninecare.com, India’s premier Maternity and Child care centre. He has authored a free e-book on HR analytics at www.HowManyTheBook.com