NFL Playbook to Corporate Culture

Pete CarrollAlthough there are variables to every industry and organization, employee engagement is largely contributed to social connections created throughout the workplace, which is an enormous driver to productivity. Healthy company culture creates higher employee retention, motivation, and commitment to the overall organization and its future.

Last year’s Superbowl champions, the Seattle Seahawks, were by no means an overnight success. Head coach, Pete Carroll’s list of accomplishments come with controversy; however, it’s hard to not to take note especially since he’s won championships on both an NFL and NCAA level. Love him or hate him, his cutthroat management style can give us all a brief lesson on successful employee management and the importance of corporate culture.

Within Coach Carroll’s first year, he completely reorganized the Seahawks with 502 transactions. In a business perspective, these transactions take the form of layoffs, terminations and new hires. He was able to recognize that not only did poor performers need to be removed, but those who allowed an environment of poor performance needed to go as well. Reports have shown that poor performers have detrimental affects on productivity, because not only are they not upholding company standards, but they also influence coworkers with their bad habits. It’s difficult to implement massive organizational shakeups but, simply recognizing when cuts need to be implemented can be the determinant between creating a winning or losing team.

Unsurprisingly, decisions such as these are often difficult and unpopular. Last month, Percy Harvin, who contributed to the 2014 Superbowl win with an 87-yard kickoff return for a touchdown, was traded to the Jets. Although Harvin has had a lackluster performance this season, this mid-season trade still took many by surprise. It was later revealed the main objective behind the trade was due to Harvin’s anger management issues, which caused physical altercations with teammates and prevented him from fully fitting in with the team. Despite his contributions, the organization knew it was best to part ways.

2014-08-15-NFL_QB_salary_performance_original_original

Just as important as letting go weak links or those who are not a culture fit, retaining talent is also a vital contribution to an organization’s success. There’s no question that this is the reason why the highest salaries in the NFL are granted to quarterbacks who not only throw the most touchdowns, but also limit turnovers. Translating back to the business world, this shows that organizations must be able to recognize management achievement by rewarding and compensating accordingly. When managers are able to create a framework that creates great corporate culture, it not only creates durability for long-term success, but it opens the doors for new organizational opportunities.

How important do you think corporate culture is within the workplace?

Do you think strategies such as Coach Carroll’s are too drastic to apply to an organization whether big or small?

Do you see any other strategies organizations can borrow from the NFL?

 

 

Sources:
http://www.huffingtonpost.com/ian-sephton/an-nfl-guide-to-employee-_b_5683400.html
http://www.forbes.com/sites/sylviavorhausersmith/2013/08/14/how-the-best-places-to-work-are-nailing-employee-engagement/
http://www.si.com/nfl/2014/10/18/seahawks-percy-harvin-trade-jets-golden-tate#

 

How Chipotle Rolled to Success

Obama-Chipotle-MemeStep into Chipotle during lunch or dinner hours (or after class), and you can almost guarantee a line that stretches far past their service counter. With articles such as one from Business Insider teaching consumers how to get more food for the same price and the story of President Obama committing the ultimate faux pas while ordering his burrito bowl, it’s safe to say Chipotle has become a cultural phenomenon.

Chipotle can contribute their success and expansion to several factors such as a clear brand message that commits to serving fresh, healthy and natural food at affordable prices; however, depending on external funds by franchising their restaurants isn’t one of them.

Several of the most successful restaurant chains can credit franchising to their rapid growth including Subway, McDonald’s, Dunkin Donuts, Starbucks, KFC, Dairy Queen and Buffalo Wild Wings.

With just around 1,600 locations, which pale in comparison to many popular franchises (Subway has 43,000 locations), why hasn’t Chipotle considered franchising?

The answer is simple. They don’t need nor do they want to. So how have they managed to succeed among the sea of franchises?

One of Chipotle’s greatest contributing factors lie within their management approach called the restaurateur program.

Starting in 2005, shortly before their divesture from the McDonald’s Corporation, the company implemented a system that heavily relies on internal promotion to motivate their employees and provide opportunity for career growth beyond most fast food corporations. The same year the restaurateur program was initiated, it was quoted that 20% of managers gained their position through the program. As of 2013, 86% of salaried managers and 96% of hourly managers were internally promoted.

chipotlecareer_004

A general manager can only rise to the rank of being a restaurateur based on their performance of how well they manage their restaurant and staff. After being selected, restaurateurs make well over $100,000 and are given a $10,000 one-time bonus, stock options, a company car and an additional $10,000 for each of their crew members that are promoted to general manager.

I think employee motivation is a crucial factor that’s often overlooked to successful operations management and have found it refreshing to learn that a company I frequent so often offers great employee incentives and benefits. In addition, not conforming to industry norms by trusting the skills of their employees to adjust recipes such as if a crate of jalapeños is hotter than usual, in my opinion, creates a superior product, service and experience. Do you think Chipotle chose the right track by not franchising their restaurants?

On the other hand, it takes more than a management handbook to keep a system running smoothly. Recently, a Chipotle near Penn State University experienced almost their entire management and crew resign citing near sweat-shop working conditions due to understaffing. This forced operations to shut down. Do you think this was an isolated incident by poor management at this particular location or are there bigger problems within the Chipotle Corporation?

Overall, what do you think of Chipotle’s restaurateur program?

Sources:
http://qz.com/183224/how-chipotle-transformed-itself-by-upending-its-approach-to-management
http://www.businessinsider.com/why-chipotle-doesnt-franchise-2014-10
http://www.huffingtonpost.com/quora/what-are-the-keys-to-chip_b_5916086.html