A Q&A with the Center for Employment Opportunities (CEO) and Big Brothers Big Sisters of America (BBBSA)
Originally published February 2007

Last November, the McDonald’s Corporation invited several Foundation grantees to its corporate campus in Elk Grove, Illinois to learn about its unique talent development program named “Hamburger University.” The program boasts many distinguished alumnae, including the company’s current CEO, Jim Skinner, who climbed the corporate ladder from a post as restaurant manager trainee in 1971.

In the interview below, two of the EMCF grantees who participated in the visit, Diane Maguire, Vice President of Human Resources and Learning at Big Brothers Big Sisters of America, and Mindy Tarlow, Executive Director of the Center for Employment Opportunities, share some of the lessons they learned, along with a few examples of how they've already applied their knowledge.

EMCF: What insights did you gain from your visit to “Hamburger U?”

Diane Maguire: We were intrigued to learn that McDonald’s faces many of the same challenges that we do: we both have extensive local chapters (for McDonald’s, it’s franchises), we both ask these local chapters to meet high standards, and we both believe that it is imperative for the main office to work cooperatively with local offices. I found it interesting that McDonald’s high expectations of its local franchises fuels their interest in the training and development program because they are genuinely striving to improve their operations.

Mindy Tarlow: For us, despite the obvious differences (in size, scope, and mission) between McDonald’s and CEO, I found a number of similarities in the challenges we share. I was particularly struck by how central “leadership development” and “talent management” are to the sustainable success of a corporation as vast and global as McDonald's, and I was particularly impressed by their corporate commitment to promote from within. Coming from a smaller nonprofit focused on employment issues, I found this dedication to employees particularly refreshing.

EMCF: How are the talent needs of private companies similar to those you've faced?

Mindy: There are several similarities. Whether for-profit or not-for-profit, there are inevitably lots of low- and mid-level management positions that require technical skills, but maybe not leadership or critical thinking skills. There’s a tremendous need to find ways of building core “strategic thinking skills” so people can move up to higher-level management positions that require less "content" and more "context." There’s also a need to identify emerging leaders and have a clear sense of their readiness for promotion (McDonald's has a performance rating matrix that evaluates employees on a continuum of "promotion readiness" that ranges from "stay at current level" to "ready for promotion now"), and a development plan to get employees as far as they can go.

Diane: We hire many people from the private sector throughout our network. We do this because our talent needs are very similar to the private sector. We seek out entrepreneurial, growth-oriented people who understand how to manage and work in an environment that focuses on results. The difference between us and the private sector of course is that the results we are seeking are for the children and families we serve versus the shareholders.

EMCF: How are the challenges of retaining talent different for nonprofits?

Diane: Although the talent needs of BBBSA (and all nonprofits) are quite similar to those of for-profit companies, what is more challenging for a nonprofit seeking to attract and retain the best talent is the scarcity of financial resources. Nonprofits don’t have access to financial incentives that are so common in large corporations, like stock options and bonus plans. More importantly, we don't yet have the career ladders that many corporations have and the opportunities for advancement. Our goal is to create more of these opportunities within our network in the coming years.

Mindy: Nonprofits in general (and smaller nonprofits in particular), are pushed to spend their resources on mission-driven programs (in CEO's case, job training and placement service) and are discouraged by many funders from using resources on activities like capacity building that are not directly related to service delivery. Public sector organizations like CEO that rely heavily on government funding are particularly restricted when it comes to securing our future organizational needs. Fortunately, there is a growing recognition in the philanthropic community that investments in leadership will improve core program outcomes in the long run, and that these investments will strengthen the public sector over time. This makes a mix of public and private funding sources even more critical to the advancement and implementation of leadership development strategies. Diane : On the positive side, we are fortunate that there are numerous highly-talented people seeking to move out of the for-profit sector and apply their knowledge and skills to nonprofit work. However, this creates challenges as well. Often, professionals crossing over do not fully understand the nonprofit sector and its unique challenges, and therefore require additional training.

EMCF: Have you applied any lessons from McDonald’s to your own talent development programs?

Mindy: At CEO, we are establishing an “Emerging Leaders Program.” To identify candidates for the program, we utilize a process we learned from McDonald’s called “performance calibration/talent review roundtables,” where high-performing employees are suggested by senior staff members, and then challenged across various departments and evaluated relative to other performances by other units. We are also embracing the concept of “valuing the ‘B’ players"–those with high technical skills who aren't yet ready for a leadership track, but add significant value to the organization’s work. In the near future, we will also be developing a leadership advisor program that combines self-assessments by employees with areas of specific needs that senior managers identify to help employees become stronger emerging leaders.

Diane: We are in the process of working with Bridgespan to develop a strategic plan for the network where talent is a key initiative. Specifically, we are looking at creating a broad based management training program that will provide our network with ongoing development. We have instituted a Leadership Network where our CEO’s and Board Chairs come together to strengthen their partnership and discuss key strategic and leadership topics. We see employment branding as a crucial foundation for attracting a diverse and talented workforce in the years to come.

EMCF: Finally, what's your take after this experience on peer-to-peer learning?

Diane: We are excited that McDonald’s (and others) have been so forthcoming about their models for talent management and development. Learning from McDonald's has opened up a wealth of real-world, practical information, and an example of excellence to work toward.

Mindy: Our peer-to-peer learning experiences have been one of the highlights of our participation in the EMCF portfolio. For us, this trip has reinforced our belief that all organizations (for profit, or not-for-profit) should not take too narrow an approach when searching for best practices or meaningful learning experiences, and that all players in the public and private sectors should be less "siloed" and more open to cross-sector learning.