Chick-fil-a versus Wendy’s
This past weekend I helped chaperone a trip of 11 and 12 year old girls to the State basketball championships in Griffin, GA. We ate at a few fast-food restaurants while we were there. There was a striking difference in the quality of the service at Chick-fil-a and at Wendy’s. Even though the prices are higher, the coaches and parents agreed that when they go to a fast food restaurant they will drive out of their way to go to Chick-fil-a.
What leads to this striking difference? I don’t think it’s the processes. I’m sure both companies have well documented processes for all aspects of their stores. I don’t think it’s the technology. While Chick-fil-a’s technology may be better, it can’t lead to this striking of a difference. I went out on the Internet to do some research.
Dan Cathy is the president of Chick-fil-a and the son of Truett Cathy, the founder. He says that Chick-fil-a’s exemplary service begins with hiring the right people. Same small town, same talent pool to draw from, they must have a much higher cost to get good people. It probably eats into their profitability to attract better talent. So is it good business to make sure you select people that will help your business set itself apart. According this article over at Fast Company, between 2001 and 2004 sales increased 40%, to $1.53 billion, and the number of locations jumped from 958 to 1,160.
Employee selection and placement requires defining the qualities of the right people for your business, then selecting for candidates based on these qualities. Don’t underestimate how critical this is or people may be driving out past your store to pay a higher price to your competitor. What steps is your business taking to make sure you are getting the best people for your business?
March 5th, 2007 at 10:59 pm
You are right. Hiring the right people is everything. It is ironic how many large organizations do such a poor job. Many rely on recruiters and headhunters.
Who is missing from the process? The team members. There is nothing more damaging to a team than a bad hire.
March 7th, 2007 at 2:55 pm
Agreed, bad processes generate bad results, however good processes don’t ensure good results. Take for example the current buzz with Starbucks. Recent surveys show that Dunkin Donuts and (yup) McDonalds measure up strongly in the taste department. Starbucks chairman Schultz’s response isn’t to get better coffee (process), it’s to focus on regaining the experience (people).
In hiring for a knowledge organization I believe its much harder to determine who will be a “Starbucks” player as opposed to a “McDonalds” player, than it is in other organizations (service, manufacturing, etc) due to the importance of interfacing.
Brilliant people with toxic attitudes are exquisitely dangerous - even though we managers are drawn to their pedigrees.