case study: chick-fil-a team 7 -the bootstrappers: alicia

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Running head: CHICK-FIL-A STUDY 1 Case Study: Chick-fil-A Team 7 -The Bootstrappers: Alicia Fowler Christopher Mead Shravan Uttakalla Irene Walger Chia-Hua (KiKi) Wu Texas A&M University EHRD 614 Spring 2017

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Running head: CHICK-FIL-A STUDY 1

Case Study: Chick-fil-A

Team 7 -The Bootstrappers:

Alicia Fowler

Christopher Mead

Shravan Uttakalla

Irene Walger

Chia-Hua (KiKi) Wu

Texas A&M University

EHRD 614

Spring 2017

Running head: CHICK-FIL-A STUDY 2

Executive Summary

A war is underway in the fast food world. The contenders are the fast food chains, and

the crown being fought over is to become the most successful provider with the most loyal repeat

customers. One would assume that the primary contenders in the arena would be the mightiest of

the fast food chains, and most will say those top contenders are McDonald’s, Burger King, or

KFC. With a single-minded focus on quality of food and customer satisfaction Chick-fil-A

shattered this assumption as of 2013. It began knocking on the door of being a top contender in

the fast food war when it overtook KFC to become the largest chicken fast food chain in the

country. This distinction was not attained by accident. Through its human resources (HR)

processes, Chick-fil-A has implemented and continues to live by a strategic organizational plan

that focuses on its core values: tenured leadership and a passion for giving to and serving others.

The Bootstrappers’ (Team 7) intent of this case study is to demonstrate how these core values

and Chick-fil-A’s HR functions and strategies are key factors in the company’s success.

A high performance organization (HPO) is characterized by realizing remarkable results

over its peers over a period of time. The key factors that contribute to being an HPO include:

management quality, openness and action orientation, long-term orientation, continuous

improvement and renewal, and workforce quality. Chick-fil-A’s strategic approach to its

development is implemented in a manner that aligns its core values with key factors that are

characteristic of being an HPO. In turn, everything drives toward meeting Chick-fil-A’s ultimate

goal: providing quality product with superior customer service and satisfaction. This case study

will dissect what Chick-fil-A has done right thus far and what it continues to do right with

respect to being an HPO in order to remain poised to overtake and surpass its competitors in the

fast food world.

Running head: CHICK-FIL-A STUDY 3

Introduction

Chick-fil-A’s highly effective business model began over 60 years ago by founder Truett

Cathy. Effectiveness criteria include growth, the development of new markets and resource

acquisition (Denison & Spreitzer, 1991). Chick-fil-A has achieved tremendous success by any

business standard. Competitiveness is increasingly dependent on the ability of suppliers to

display the best practice in all facets of their operations and segment and tailor their products to

local variations in taste and preferences (Dwyer, Teal, Kemp, & Wah, 2000). Chick-fil-A is

known for having a good reputation for quality of product and customer service. Very few

companies have a stronger culture than Chick-fil-A. As Kruse (2016) relayed, “culture is the soul

of an organization” (para. 3). And every company has a culture, whether leaders consciously

mold it or not. Chick-fil-A's leaders are people-centric, value service to others, and believe they

have a duty of stewardship. Nearly all are humble and passionate operators who are deeply

involved in the details of the business. Most have long tenures in their organizations. They have

not forgotten what it was like to be a line employee. They believe that every employee should be

treated with respect and have the opportunity to do meaningful work. These high-performance

organizations show that people-centric environments and high performance are not mutually

exclusive. Employees in these companies have high emotional engagement, loyalty and

productivity, and outperform the competition on a daily basis over long periods of time.

Chick-fil-A uses partnership goals to make long-term hires by building an employment

brand and a consistent process for attracting, screening, and identifying the highest quality

applicants. In an HPO, leadership maintains trust relationships with people on all organizational

levels by valuing employees’ loyalty, showing people respect, creating and maintaining

individual relationships with employees, encouraging belief and trust in others, and treating

Running head: CHICK-FIL-A STUDY 4

people fairly. The first factor was identified as the quality of leadership and management of the

organization. Chick-fil-A is a company that is considered more successful than its competitors in

areas such as profitability, customer service, and strategy. For a company to be high-performing,

it is vital that its mission statement aligns with its business strategy. Hiring employees with a

personal outlook that is similar to the company's strategic approach also helps. Employees

should have a clear idea of company strategy and values so that they can be effective in their

jobs. They also know that serving its customers is its primary function. It works diligently to

provide the best customer service possible.

However, organizational effectiveness is likely to be characterized in terms of the

attainment of specified goals such as financial or productivity outcomes and the satisfaction of

strategic constituencies such as owners, shareholders, customers, suppliers, and creditors

(Robbins & Barnwell, 1994). High performance is not just about excellent customer service; it is

about using customer information effectively to determine future services and products. Most

consumer-facing businesses could stand to learn a few things about customer experience and

employee engagement from Chick-fil-A. Chick-fil-A franchise owners are responsible for

everything that happens under their roof, including the service climate unique to that restaurant.

Owners hire and train their employees and are in charge of their engagement. And most

importantly, each owner has the freedom to do different things for his/her own staff to make sure

they are engaged and motivated. Chick-fil-A trusts the people on the ground doing the work, and

empowers its owners to make decisions and try new things based on each of their own

observations. Organizational socialization is important for new employees during the early stages

of their employment (Wanous, 1980). Chick-fil-A’s employee training is thorough,

customizable, and designed around the behaviors and operational aspects that really matter to its

Running head: CHICK-FIL-A STUDY 5

customers. Individual owners are encouraged to put their own touches on how they train their

teams.

The HPO Framework is a conceptual, scientifically validated structure that managers can

use for deciding what to focus on in order to improve organizational performance and make it

sustainable. Chick-fil-A is considered an HPO. An HPO is an organization that achieves

financial and non-financial results that are exceedingly better than those of its peer group over a

period of time of five years or more, by focusing in a disciplined way on that which really

matters to the organization. The important work of an HPO is in shifting the mindsets, emotional

states and behaviors to a psychology that will create and deliver performance. However, most

businesses focus the vast majority of their energy, attention and resources on the mechanics.

Chick-fil-A has happy employees and great customer service. Chick-fil-A (2017) stated that

founder, Truett Cathy, said “Our people are the cornerstone of all that we do at Chick-fil-A. As a

chain, we believe that attracting great people helps create an unforgettable experience for our

customers” (para. 1). Chick-fil-A employees do not say you’re welcome they say my pleasure.

This subtle change in vocabulary sends an entirely different message to its customers, adding an

element of class to the service. This example of Chick-fil-A’s attention to detail on such

seemingly minor but effective areas of customer service demonstrates how it puts HPO factors

into action.

The management of an organization is trusted by organizational members, and it is also a

role model for organizational members. Chick-fil-A understands that the behaviors of its

management are a means of communication. Chick-fil-A capitalizes on this by treating people

with dignity, being in the moment and not multitasking, not interrupting others, listening

intensely, smiling, acknowledging the contributions of others, admitting mistakes, and spending

Running head: CHICK-FIL-A STUDY 6

time on the front lines with employees and customers. Chick-fil-A management understands that

behaviors either build trust or destroy it, and without trust one cannot generally achieve

consistent high employee engagement and high performance. The organization needs to have a

clear goal. Clarity takes time and intentional focus. When one is able to cut through the fog and

create clarity, confusion is minimized and an advantage is gained that propels the team to the

next level. By crafting a compelling vision, establishing shared goals, and creating and

implementing a plan to communicate them, an organization positions its team to work together in

powerful ways.

Furthermore, managers at all levels of the Chick-fil-A organization maintain trusting

relationships with employees by valuing their loyalty, treating people with respect, creating and

maintaining individual relationships with employees, encouraging belief and trust in others, and

treating people fairly. Human Resource Development (HRD) is the opportunity to influence

innumerable aspects of the organization, to assist in the development of its employees, and to

play a part in influencing strategic business decisions. All employees are personally invested in

the company's goals and must understand their roles and influence in the organization. Managers

and supervisors must show leadership by understanding their subordinates' strengths and how to

properly utilize them. Employees have to understand that their behavior personally affects the

company and its performance. A business is only as good as its employees, and an organization's

employees are only as good as its HR team. Chick-fil-A looks for ways to create valuable

customer experiences by delivering quality through its products and services. The company

thinks through its customer experience and adds extra touches that exceed expectations, drive

loyalty, and inspire advocacy. By adopting this approach to customer service, entrepreneurs will

be able to maintain strong and sustainable relationships with corporate sponsors and customers.

Running head: CHICK-FIL-A STUDY 7

Definitions

Characteristics of an HPO

As stated previously, an HPO is characterized by those organizations that achieve

remarkable results over its peers over a period of time. More specifically, The HPO Center

(2017) defines an HPO in the following manner:

A High Performance Organization is an organization that achieves financial and non-

financial results that are exceedingly better than those of its peer group over a period of

time of five years or more, by focusing in a disciplined way on that which really matters

to the organization. (para. 3)

Kirkman, Lowe, and Young (1999) concede that there is no standard definition of an

HPO, but maintain that there are key factors or components within an organization that

contribute towards it becoming an HPO. Kirkman et al. (1999) outline these factors and

components as: increasing information flow across organizational boundaries, being composed

of flexible productions systems, tapping into human resources with employee involvement and

self-managing work teams, total quality management, and long-term orientation.

Furthermore, The HPO Center (2017) provided research that indicated that there are

direct and positive correlations between the aforementioned components and financial

performance such as revenue growth, profitability, Return on Assets, Return on Equity, Return

on Investment, Return on Sales, and Total Shareholder Return. Kirkman et al. (1999) agree and

stress that an HPO will outperform its peers in every category. Additionally, The HPO Center

(2017) stresses that “in the area of non-financial performance HPOs [outperform their peers

again and] achieve much higher customer satisfaction, customer loyalty, employee loyalty, and

quality of products and services than their less able counterparts” (para. 4).

Running head: CHICK-FIL-A STUDY 8

The HPO Center (2017) states that “the HPO Framework is a conceptual, scientifically

validated structure that managers can use to help decide what to focus on in order to improve

organizational performance and make it sustainable” (para. 1). That being said, the HPO

Framework is not a map or a set of directions to follow to an end goal. It is not a blueprint, but

rather, the HPO Framework is a flexible guide that should be translated by managers and

adjusted to their specific organizational setting and situations. This framework was essential in

determining whether Chick-fil-A, the focus of The Bootstrappers’ case study, could be

considered an HPO.

Why Chick-fil-A?

The five members of The Bootstrappers are located in four different cities in two

different states. Therefore, any collaboration between group members on any focus of a project

posed a logistical challenge. When pinpointing an organization or company to focus on,

members agreed that an organization should be selected that would be in operation in each city

and readily accessible. Once deciding that a chain company would be the team’s best option, The

Bootstrappers chose Chick-fil-A as the focus as each member was familiar with the company,

had visited one in the past, and agreed that it would be interesting to learn how its HRD

contributed to its undeniable success.

Cursory research on Chick-fil-A showed indications of organizational characteristics and

strategies that gave the impression that they aligned with components of the HPO Framework.

For example, researchers such as Couret (2015) found that Chick-fil-A upper management stated

that “longevity in leadership has always been one of [their] secret ingredients” to success (para.

5). Similarly, “Employee Loyalty” (2001) described Chick-fil-A as “an organization that built

value by building loyalty among customers and employees” (para. 1) and as “a company that

Running head: CHICK-FIL-A STUDY 9

targets high-performers” (para. 4) when selecting its employees. All of these findings were early

indicators to The Bootstrappers that demonstrated a high likelihood that Chick-fil-A would prove

to be an HPO and would be an appropriate choice for the case study.

Methods

It is evident that Chick-fil-A has been standing out in the fast-food business in America.

To establish this, The Bootstrappers members individually did their research on the organization.

During the research process the team found that even though McDonald’s is the name that comes

to mind when one thinks about fast-food, Chick-fil-A has been climbing towards number one in

the business in America. Taking this as inspiration, the team decided to approach Chick-fil-A to

understand the operational strategies implemented by Chick-fil-A that contributes to its success.

Each team member then tried to establish a connection with a senior level operator at a

Chick-fil-A branch closer to our respective geographic locations. Despite, their busy schedules,

each manager was kind enough to give each team member some time. Subsequently, the

objectives of our project were explained to each of the managers. Although, each manager

requested time to communicate with the owner regarding the project, approval for participation

was given to each location.

While discussing the project proposal with the managers, The Bootstrappers learned that

Chick-fil-A does not run each individual restaurant. As Petrone (2014) stated, “Chick-fil-A’s

hiring process is like Zappos in some ways: it has a very clear culture and makes cultural fit a top

priority.” Thus, Chick-fil-A leases each restaurant to individual operators based on the cultural

fit.

Before beginning the process of formulating questions for the interview, The

Bootstrappers explored articles related to Chick-fil-A’s history, policies, and culture to gain

Running head: CHICK-FIL-A STUDY 10

critical information. With the extensive information at our disposal, the team developed 15

questions (see Appendix) which would aid in giving insight into Chick-fil-A’s strategies. Each

question provided information related to a critical part of the business that resulted in the success

of this HPO.

The Bootstrappers had an opportunity to conduct an extensive interview with each

manager individually at each member’s respective location. The main focus of the interviews

was to gain information to conduct an in-depth analysis. The team used interviews and

observations as the main tool given that Gray (2014) advises that “conducting on-site interviews

[helps] tailor the questionnaire to the knowledge and cognitive compatibilities of the audience.

This may also help identify questions that are too sensitive” (p. 113).

The team utilized SWOT to establish key points. Although there are other tools available,

SWOT was chosen given that “the company must concentrate its future objectives on its

strengths, while averting tendencies related to the companies weaknesses” (Houben, Lenie, &

Vanhoof, 1999, p. 127). Dyson (2004) stated that “SWOT analysis aims to identify the strengths

and weaknesses of an organization and the opportunities and threats in the environment” (p.

635). Even though, The Bootstrappers did not use SWOT as our primary tool for analysis, it was

used it to supplement the research. Identifying the strengths and weakness is essential because,

“unlike threats and opportunities, which are external in nature, strengths and limitations exist

now, in real time; and they are internal and controllable in nature” (Stowell, & Mead, 2005, p.

157). These contribute to a major part of the Chick-fil-A’s success and failures.

Results

During the interview process, The Bootstrappers team members recognized that a number

of themes surfaced and were common amongst all interviews. These themes were employee

Running head: CHICK-FIL-A STUDY 11

development and customer experience. The interviews for the case study were conducted in a

total of four cities within Texas and Minnesota. During the interviews, some differences in

results are noticeable. One interviewee was focused on profit and loss, another was focused on

people, a third was focused on processes, and the last was focused on growth. However, even

though there were differences in the approach to the business operations, there was one major

theme that all sites had: a focus on people. Focusing business operations on people results in

high levels of training, innovation, and customer experience. Additionally, these all tie together

and mutually support one another. For example, innovation may be in processes that support

customer experience or may be in processes that support consistent training to the employee

which turns into a good customer experience.

Employee Focus

Employee development is a common theme in all interviews. However, its degree of

importance did vary from site to site. One interview question solicited more responses about

development than other questions. This question was: “What is the strategy that you use to keep

the employee motivated?” (see Appendix). One location answered that opportunity was the

biggest motivator for employees and that they “do what [they] can to assist an employee to start

working towards [their career] goals” (KM, personal communication, March 30, 2017).

Employee development was also cited as a reason for the success of the company and appears to

be at the core tenants of the business philosophy which, though not spelled out, are people-

centered around its customers and employees.

Interviews disclosed that multiple sites referenced scholarship opportunities as well.

While the details were not spelled out in each case, one Chick-fil-A location required 1200

working hours in a year (approximately 23 hours per week) to be eligible for a scholarship.

Running head: CHICK-FIL-A STUDY 12

However, restaurant locations are not just financially supportive; they are also working with

individual schedules to give employees the time needed to attend class. This program is offered

to cultivate leadership development and assists in the company’s goal to promote from within.

Other forms of educational and training opportunities mentioned job-specific process training

and online training.

This job-specific training, online training, and scholarship opportunities assist in

leadership development within the Chick-fil-A organization. Other formal programs exist in the

company, as well, for those going into managerial positions. The Chick-fil-A Jumpstart program

is a two-year program aimed at developing future Chick-fil-A leaders. All interviews stated that

Chick-fil-A prefers to hire from within. However, the people interviewed were all hired from

outside of the company into higher positions rather than being promoted from within.

Peterson (2016b) asks, “Do you know the dreams of your team?” (para.16). Peterson’s

(2016b) findings describe a Chick-fil-A site in Florida that discusses the need to develop

employees for the position they want in the future. Doing so results in high levels of motivation

from employees. This restaurant site has paid for employees to attend photography classes as

well as tuition to complete their marketing degrees. However, Peterson (2016b) states that

restaurant sites have also offered internal certification in areas such as “managing food and labor

costs, managing conflict in restaurants, and other areas of expertise” (para. 21).

Team members’ interviews revealed that employee development is also discussed as

filling a need to assist in the rapid growth of the company. With this, Chick-fil-A has a large

focus on leadership development. The company has spent a significant amount of time and

resources to develop leaders. The goal of the company’s leadership development programs is to

move “leaders […] far beyond ‘hired hands’” (Miller, 2010, p. 45).

Running head: CHICK-FIL-A STUDY 13

Customer Focus

The focus on people extends beyond the employee and includes the customer.

Interviewees commented: “It’s our care for people, employees and customers, that drives our

success” (KM, personal communication, March 30, 2017) as well as “valu[ing] its relationship

with its customers and community” (GB, personal communication, March 31, 2017).

Multiple links are made between the two groups: employees and customers. Employee

development is directly linked to providing a good customer experience. One site provides

detailed hospitality training to its employees, and another cites its commitment to the customer

by hiring and developing “caring and passionate people with a servant attitude” (KM, personal

communication, March 30, 2017).

Opening a Chick-fil-A restaurant takes significantly less resources than most other fast

food chains. Opening a Chick-fil-A restaurant costs $10,000, and requires no other assets to

participate. Other companies can require over $1 Million up front along with hundreds of

thousands of dollars in assets. Chick-fil-A’s philosophy is not to have money be “the barrier to

entry [but instead] seeks to find the very best business partners who find great joy in making

other people’s days” (Peterson, 2016a, para. 5). Additionally, Chick-fil-A encourages sites to be

involved in their local community with community-focused service projects.

Barriers to Operations

During the interview process, turnover was cited as a significant barrier to operations.

However, the sites interviewed in The Bootstrappers’ case study saw different reasons for the

turnover. One interviewee noted that due to the relatively low unemployment rate of 4.2%, (U.S.

Department of Labor, 2017) competitors have started to utilize aggressive and successful

recruiting tactics leading to increased turnover at Chick-fi-A sites. Another interviewee asserts

Running head: CHICK-FIL-A STUDY 14

that the issue with its workforce population is that potential employees perceive employment

with Chick-fil-A as temporary/seasonal since this particular Chick-fil-A is located on a college

campus and in a college town. According to Schmall (2007) turnover in Chick-fil-A is

significantly lower than what is normal for the industry citing that “hourly worker’s turnover is

60%, compared with 107% for the industry” (para. 3).

Discussion

This study found that Chick-fil-A has maintained as an HPO by keeping its values at the

hub of its strategic plan which allows a competitive advantage. Chick-fil-A continues to have an

impressive record of growth for 42 years straight (“Chick-fil-A Marks”, 2010). The managers

that participated in The Bootstrappers’ study were accurate and all agreed that valuing its

employees’ and customers is a top priority of the organization. Chick-fil-A truly believes that it

has grace and influences the lives of its employees (Cathy, Bingham, & Galagan, 2010).The

participant’s encouraged innovative thinking and entrepreneurial spirit within employees which

produces development and growth within an HPO. The aforementioned strategic characteristics

were high emotional engagement, loyalty, and productivity. An interview with Dan Cathy, the

COO of Chick-fil-A, supports all the findings in the results of The Bootstrappers’ study. When

the recession took place, innovative thinking stood at the forefront of the organization. It had to

build margins in scheduling, revisit financial ratios, and the capacity of continued growth and

development (Cathy, et al., 2010). Cathy explains that an experimental spirit is always

welcomed, and it encourages employees to think in an innovative way. The organization is

always willing to try new things, experimenting at a low risk but under low radar. As Cathy et al.

(2010) demonstrate, an eight-year employee named Tiffany Holland had the idea to let the first

100 customers of a new store win Chick-fil-A for free. She was apprehensive and did not know

Running head: CHICK-FIL-A STUDY 15

how the organization executives would take to losing over 28,000 dollars each year from a

promotional event. However, received by its welcoming spirit for innovation, she was able to

present her idea for what is now one of Chick-fil-A’s best-known incentives of a new restaurant,

and it also increased publicity for the entire organization (Cathy et al., 2010). This exemplifies

how employees are allowed to grow and develop and gain professional confidence.

Chick-fil-A is known for its contagious culture based in valuing its customers and

employees. The organization treats its employees and customers like ladies and

gentleman. With a kind culture being an essential part of the organization, it takes hiring the

right people very seriously. The findings in the team’s interviews and the Cathy interview agree

that selecting the right people is a vital part of the organization. Cathy et al. (2010) supported the

interview findings by stating that it focuses on the three C’s when hiring employees. The three

C’s consist of competence, character, and chemistry. Chick-fil-A wants to make sure that the

employee can do the job in which he/she is applying for, has great character, and has the desire

to inspire and motivate others (Cathy et al., 2010). Chick-fil-A pays close attention to diversity

when hiring an individual (Couret, 2015). Once the individual is hired, it takes the person’s

culture and background into consideration and customizes the individual development

experience (“Employee Loyalty”, 2001). Chick-fil-A understands that some employees may need

extra mentoring and develops them at the rate dictated by the employee and not according to

rigid guidelines (Cathy et al., 2010). Furthermore, to ensure that leaders are always being

developed, an inventory of talent is conducted annually with its leadership team (Cathy et al.,

2010).

Dan Cathy mentioned that Chick-fil-A will never go to the bank and borrow money or go

to Wall Street, and he stated that its primary focus will remain on its customers and employees

Running head: CHICK-FIL-A STUDY 16

(Cathy et al., 2010). This finding was a pattern that was found within the results of the team’s

interviews that were conducted. A desired focus on the employee allows appreciation to be

developed within the employee, and then the customers are able to witness a genuine focus on

them as well. When the organization makes the employee and customer a priority within its

strategic plan, it is able to see positive results among the productivity and profits. Chick-fil-A’s

continued growth over 42 years is evidence of this successful strategic plan. The last pattern

within the research is operations barrier with human capital. Within the hospitality industry,

turnover is inevitable, but Chick-fil-A has a goal of keeping the turnover as low as possible by

developing its employees (“Employee Loyalty”, 2001).

There were some unexpected findings within the team’s research. One of the unexpected

findings was that each restaurant operated individually, and there is not a tailored way that each

restaurant must conduct business. The store is able to customize and strategize its local goals

according to the needs of that particular restaurant. With an HPO, the expectations of

standardized business operations would be expected. It was surprising to learn that the operator

is able to choose how the business is ran and customized however he/she sees fit while still able

to maintain the same culture.

There were some limitations with the results. The study was only conducted with five

locations within Texas and Minnesota. Although there is additional scholarly research stating

that Chick-fil-A is indeed an HPO, more locations in different regions would have been

beneficial to the research. A weakness of the study is that only one observation was conducted

due to logistics of other restaurant locations. Out of the five selected restaurants, two were on a

college university campus. Lastly, four of the stores were in Texas, and only one impacted

another region.

Running head: CHICK-FIL-A STUDY 17

The business world has gone global. It continues to move and will continue to move at a

rapid pace. In order for companies to keep a competitive advantage, an innovative and high-level

strategic plan is essential. Within HRD, practitioners will have to be change champions by

leading innovatively. This research identifies the importance of imagination and creativity being

at the hub of successful HPOs (Brews, 2005). Chick-fil-A is like any other company with

financial goals. It is able to be classified as seeing continued growth by being able to measure

and evaluate its financial goals, which is also part of the a successful strategic plan (Brausch,

2010) . HRD means leading others to success. With leadership being an important role in HRD,

practitioners will need to focus on the importance of achieving results through others (Andersen,

2006). This research allows a closer look at a high-level organization so other organizations are

able to understand and attain the same status. Also, HRD practitioners can understand how vital

customers and employees are in leading a successful business. The recommendations for further

research is to continue to look for other HPOs and compare them to companies such as Chick-fil-

A, and continually research how HPOs conduct innovation and business.

Conclusion

Once The Bootstrappers compared findings from each member’s interviews, it was

undeniable that Chick-fil-A is easily classified as an HPO. From interview to interview, there

was a recurring and consistent theme: Chick-fil-A understands the power of passion for

leadership, passion for quality product, and passion for quality customer service. In their own

words, each interviewee conveyed how essential it is for their organization to cultivate each of its

three passions in a balanced manner, and that Chick-fil-A’s current success is a result of

maintaining that focus. “Employee Loyalty” (2001) offered a telling quote when it comes to the

culture and mindset of the powers-that-be at Chick-fil-A: “[It] aligns the interests of outlet

Running head: CHICK-FIL-A STUDY 18

operators with those of the company, and gives the customer ultimate power over both” (para. 3).

This statement’s underlying message was evident in The Bootstrappers interviews, observations,

and research findings. Chick-fil-A understands that its success and status as a top fast food chain

company is not just a matter of selling more product than its competitors; it is tied to the manner

in which its HRD is carried out.

Whether with intent or not, Chick-fil-A’s unique characteristics and the manner in which

it carries out business with its own personal style all directly align with key factors within the

HPO framework. The key factors within the HPO framework include: management quality,

openness and action orientation, long-term orientation, continuous improvement and renewal,

and workforce quality. Chick-fil-A satisfies each factor exceptionally.

Managers and owner-operators are usually long-term employees that began their careers

at a young age and who plan to stay with the organization (Couret, 2015). These managers and

owners all value their relationship with Chick-fil-A, have earned and put trust into their

employees, and they are role models for their employees. Chick-fil-A managers and operators

are committed to their place within Chick-fil-A.

Interviews, observation, and research all conclude that the culture of Chick-fil-A values

the opinions of its customers and its employees at all levels. Also, it deeply values the

relationship with both. It is a performance driven organization (Couret, 2015), and it keeps its

members involved in processes with clear and consistent communication.

Petrone’s (2014) findings and team interviews both indicate Chick-fil-A’s relationships

with stakeholders and management-level employees are a long-term in nature. Managers are

often promoted from within and show a long-term commitment to the organization. Chick-fil-A

Running head: CHICK-FIL-A STUDY 19

encourages its employees to better themselves, and it grows future management generations from

its own ranks.

Chick-fil-A is also always looking to improve on itself. Chick-fil-A is not afraid to take

risks. While Chick-fil-A is exceptional at what it does, it is not willing to rest on its laurels. It

strategically incorporates new technology, new practices, and new ideas as long as they align

with its core competencies and values.

One of the strongest findings in interviews is that Chick-fil-A goes out of its way to hire

employees that fit its culture. Team interviews and Petrone’s (2014) findings both point to the

same factor with Chick-fil-A’s workforce: Chick-fil-A has a tough vetting process when hiring

employees. Finding a high-performing employee that best fits the company’s culture is its top

priority. These hiring practices have led to the organization to have a top-down commitment to

one, clear vision and overall success.

Ultimately, Chick-fil-A has been successful because it sticks to what it knows while

keeping a firm hold of its core values. There is not just a single-minded focus on selling the

most, but instead a global perspective that focuses on several key factors that all align to bring

success. Chick-fil-A has perched its self as a top-performing fast food chain because it

understands how essential it is to cultivate each of the factors of the HPO framework while

keeping its own priorities in order.

Running head: CHICK-FIL-A STUDY 20

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Running head: CHICK-FIL-A STUDY 21

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Running head: CHICK-FIL-A STUDY 22

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Running head: CHICK-FIL-A STUDY 23

Appendix

Team 7: Interview Questions

1. What is your Chick-fil-A journey? How have you gotten where you are now?

2. What success factors make your organization stand out in the industry?

3. What should your organization keep doing?

4. How do you continue to keep the culture Chick-fil-A has come to be known for? What is

your process in hiring the right people?

5. What continues to be done right as an organization? Could anything be improved?

6. What practices are in place to ensure consistency even when management is not around

and with multiple locations?

7. How many layers exist in the organization between the CEO and the frontline employees

and what affect does this have on the organization?

8. What is the strategy you use to keep the employees motivated?

9. How do you deal with a conflict between employees?

10. If there is a new policy introduced by the company which is immediately perceived as

beneficial for your employees how do you deal with it? Is the organization open to a

discussion? How?

11. What is your biggest personnel challenge at your particular location? What does Chick-

fil-A do well to support you in these challenges? How so?

12. What programs does Chick-fil-A offer to assist with leadership development and how is

the success of such a program measured?

13. Does Chick-fil-A tend to promote inhouse talent or hire outside talent for promoted

positions? How do you think this affects the organization?

Running head: CHICK-FIL-A STUDY 24

14. What goals would you like to achieve within a year?

15. What are you most proud of about Chick-fil-A as an organization and employer?