DAVID FAIRHURSTChief People Officer, Europe

Actively Disengaged

Not Engaged

Engaged

Actively Disengaged: 20%

Not Engaged: 61%

Engaged: 19%

01: Why HR must focus on thepositive as well as the negative

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performance management

What our

business needs

What our people value

What our business needs

Committed People

Cleanliness

Service

Quality

CustomerVisits Sales Profits

Employee Engagement Customer Loyalty Business Growth

Confidence

Competence

Simple Easy Enjoyment

Praise from immediate manager

Cash bonus

Leadership attention Increase in base pay

Opportunity to leadproject or task force

Stock options

No-Cost Rewards Cash-Based Rewards

What our business needs

Committed People

Cleanliness

Service

Quality

CustomerVisits Sales Profits

Employee Engagement Customer Loyalty Business Growth

Confidence

Competence

Simple Easy Enjoyment

What our people valueI work in an enjoyable, energizing atmosphere where everyone feels part of the team.

I have a challenging, varied job that has the flexibility to fit into my lifestyle.

I have the opportunity to grow and progress by learning personal and work skills that will last a lifetime, whatever I choose to do.

What our

business needs

What our people value

ExcellentDelivery

EmployeeValue

Cohesive, focused teams A sense of belonging

Flexible workforce Flexible working

Well-trained staff Recognised qualifications

Controlled wage costs Negotiated staff discounts

Meet emerging needs Develop emerging skills

Enhanced reputation Pride in the organisation

02: Why we need to become partnersin the education of our people

80% 20% 50+%

44% of employees havetwo or more indicators of“social disadvantage”…

− Low educational attainment− Periods of unemployment− Parental unemployment− Single or no parental figure− Resident in deprived area

40% had improved theirhighest qualification

79% see their job as along-term career(just 10% at point of hire)

96% believe their skills to bevaluable to other employers

Giving people life chances is at the heart of the Government’s crusade on social mobility and this research provides ample evidence that McDonald's is contributing significantly to that.

03: Why we must learn lessonsfrom Marketing Science

How could you …… spot someone single and living alone?

… spot if they’d started a relationship?

… spot if the couple had bought a puppy?

Ranked Lowest to Highest by Digital Usage

Total Respondents = 103,333

High35,434

Medium31,603

Low36,296

01: Why HR must focus on thepositive as well as the negative

02: Why we need to become partnersin the education of our people

03: Why we must learn lessonsfrom Marketing Science

01: Why HR must focus on thepositive as well as the negative

02: Why we need to become partnersin the education of our people

03: Why we must learn lessonsfrom Marketing Science

04: Why ‘why’?

Why

How

What

Why do Apple exist?...

Why do GlaxoSmithKline exist?...

Why do Harley-Davidson exist?...

… to make a dent in the universe.

… to improve the quality of human life by enabling people to do more, feel better and live longer.

… to sell to 43-year-old accountants the ability to dress in leather, ride through small towns and have people be afraid of them.

If you want to see something done, just tell some human beings it can't be done. Make it known that it's impossible to fly to the moon.

Or run a hundred metres in nine-point-nine seconds.

Or solve Fermat's Last Theorem.

Remind the world that no one has ever hit sixty-two home runs in a season.

Stuffed eighteen students into a Volkswagen Beetle.

Set half the world free.

Or cloned a sheep.

Dangle the undoable in front of the world. Then consider it done.