Reference no: EM132260479
Read the Leader in Action Jerry Murrell, the CEO and Founder of Five Guys Rewards Teamwork and respond/analyze the following questions:
Teamwork The CEO and founder of these Five Guys Burgers and Fries (usually referred to as Five Guys) is Jerry Murrell. The name stems from the fact that Murrell has five sons, all of whom are now top-level managers in his enterprise. The company has more than 1,100 restau- rants in the United States and Canada, with expansion plans into Great Britain. The Murrell family, including wife Janie, ran five res- taurants in the Washington, DC area before starting a franchise operation. Within five months, Five Guys had 300 franchisees. The tightly enforced food preparation system includes fresh food only, and no freezers or microwave ovens. Customers are permitted to choose from an unlimited toppings included in the price. French fries are made from high-quality potatoes (usually from Idaho), cooked in peanut oil. The only permanent menu change has been the addition of hot dogs, a veggie sand- wich, and a grilled cheese sandwich. The Five Guys mission statement recognizes that to complete in a restaurant industry that is crowded with hamburger and French fries chains, it is essential to do hamburgers and French fries better than anyone else. This includes using top-quality ingredients, toasting buns on the grill, and hand-cutting the meat portions. Murrell heavily emphasizes good team work among the store employees, the vast majority of whom are teen- agers. The absence of paid advertising helps free up money for building team spirit. Five Guys management collects 1:5 percent of revenues from franchisee stores to give to employees teams who receive outstanding independent audits for quality of service, safety, and cleanliness. Crew members earn about $9 per hour. In addition, the crews that score well on the audit can earn up to $1,000 to divide equally among themselves. The bonus is paid each week based on the secret shopper incentive program. Murrell says that the franchise tries to make the young workers feel ownership in the company. If the auditor does an inspection and the bathroom is not clean, that crew has lost potentially big bonus money. Next thing he knows, the guy who was supposed to clean the bathroom has bathroom tissue all over his car and a potato lodged in the tail pipe. Another teamwork building approach Five Guys relies on is an independent franchise committee that meets quarterly. Ideas for improvement are exchanged, and committee members are free to express objection to any one idea. Mark Mosely, a former player for the NFL team, the Washington Redskins, is the head of franchising for Five Guys. He says about Murrell, “I look at him like a football coach. He’s the leader, and he hires good people and lets them do their jobs.” Murrell received an Associates of Arts degree from Alpena Community College and a bachelor’s degree with a major in economics from the University of Michigan. His work in a fraternity house kitchen at the U of M triggered his interest in the restaurant business. However, before founding Five Guys, he worked first for a life insurance company, and then as a financial planner.
1. At least seven family members are part of the executive team at Five Guys. Discuss what effects this fact has on top-management teamwork?
2. Discuss your opinion of the impact on teamwork of paying large financial bonuses to crew members?
3. Based on whatever information you might have or find available, discuss how well Jerry Murrell is doing as the CEO? Is he still the CEO? Has he moved on to another company, what shape is Five Guys in today? Give me a brief analysis of the impact of his leadership.