In 1954, spurred by the purchase of 8 milkshake machines with capacity of 40 milkshakes at a time, Ray Kroc made a visit to one of his customers, a small burger stand owned and run by the McDonald brothers. Ray saw the opportunity, was intrigued, and quickly arranged an agreement to begin selling McDonald’s franchises. This event served as the catalyst that took McDonald’s from a single CA based location to ~7,500 locations with sales north of $8 billion dollars at the time of his death in 1984. While many factors contributed to his success, 1 in particular is responsible for the astronomical growth he achieved. Ray spent his time working on the business, not in the business.
As a leader of a small-midsize business, you're busy from the moment your day starts until the moment it ends. There are decisions to be made, people to speak with, deals requiring negotiation, employees to train, products to develop, problems to solve, and fires to extinguish. It’s exhausting and overwhelming and, most days, success is measured by keeping your head above water. With so much to do, you’re left wondering how you can find time to work on your business?
So how did Ray do it? His story teaches us 3 lessons we can apply to our businesses to get started.
Define a repeatable process, including how you deal with the unexpected.
Ray believed the success of the McDonald’s franchises was dependent on a consistent experience, regardless of the franchise location. To accomplish this, he created a 75 page manual that outlined every aspect of their operations from cleaning to food measurements to flavor consistency and everything in between. Creating a comprehensive manual like this takes both time and intention and is built 1 process at a time. If you haven’t already started, start by outlining your key processes. Pay special attention to outline the decision-making logic needed, especially for processes where you are the bottleneck.
Grow leaders and teach them to think like you.
Ray knew that it wasn’t enough to define what they did and how they did it. Consistent execution requires you to teach people the ins and outs of your businesses. That’s why Ray introduced Hamburger University in 1961, a program designed to train franchisees, managers, and employees on the proper methods defined in his manual. Do you have the right people across your teams? As you define your processes, can you train them to take over and consistently manage these processes without you? How and when can you consistently make time to develop your future leaders?
Step away weekly to think about the business.
Ray didn’t work in the business making hamburgers, he worked on the business selling franchises, driving consistency, and maintaining quality, resulting in ~7,500 locations at the time of his death. Growing a business requires time, attention, and a different way of thinking. It requires intentional analysis of the components to determine whether you have what you need to reach your goals. While it will take time for you to make this transition, you can with setting aside 1 offsite day per week. Treat this time as precious, only allowing interruptions for emergencies. In addition to your focused attention, it gives your emerging leaders time to practice their skills without you present as a fallback.
To get started, some key question for your day should include:
How are we doing? What’s going well and what’s not?
Do I have the right people/teams/structures/skill sets? If not, what do I need and how do I address it?
How is our culture?
Have I learned something recently that should influence or change our priorities? Who needs to be involved in that discussion and decision?
What’s happening in our market? (Product, competitors, industry trends, economy, etc...)
What are our customers saying? Are we achieving the excellence in service, experience, and/or product performance that we expect?
Right now, how can I best support my team and our mission?
Where is my time best spent right now in the business?
How can you apply these lessons to begin working more intently on your business?
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