Simple and Efficient

I recently saw the movie Founder, the story of Ray Kroc and McDonald’s. Most of us know the basics of the story. I consider it required viewing for anyone wanting to scale their business.

Before Ray Kroc got on the scene, the McDonald brothers made a huge investment of time and energy perfecting the simplicity and efficiency of their business. First, they culled their product line to a very narrow offering that satisfied the large majority of their customer base. Then they then streamlined their processes and configured the physical space to optimize production. The result was a standardized quality product produced in a fraction of the time previously considered possible.

Kroc was the visionary. He took the well-oiled prototype and replicated it across the U.S. and the world. Of course, along the way he added management structure, HR standards and tight quality control.

There are a few lessons here.

First, the brothers’ mantra was simple and efficient. Any effort that was extraneous to the efficient delivery of the narrow range of products was eliminated.

Second, the prototype was a proven success  before Kroc attempted to replicate it. The importance of this cannot be overstated. It is much easier to fix a flaw in the business model or in execution once rather than across an enterprise.

Third, the product was standardized and easily replicated. For companies that produce a product, it may be relatively easy to envision standardized product(s) based on customer demand. For a service company, that might mean developing a standardized set of reports that utilize a common template.

Fourth, after a few set-backs Kroc finally identified the profile of the successful owner/franchisee. In the end, the successful franchisee was a family-oriented owner-operator willing to abide by the dictates of the parent company. It took him awhile to get this right, and the company struggled mightily until he did. Again, it is important to know what to look for in your key employees before the company gains any real scale.

Fifth, it was pretty clear that Kroc instituted strict management controls. From sourcing of raw materials to inventory management, accounting and quality control. Nothing was left to chance or interpretation.

Lastly, Kroc had a vision. He saw the customer delight in the prototype and potential to expand. Without this, McDonald’s might never have grown beyond a one location burger joint.