An engineering perspective on the leadership problem: The experience of McDonald’s South Africa’s CEO

Members of the South African Academy of Engineering were enthusiastic to hear the perspective of Greg Solomon, CEO of McDonald’s South Africa, on the topic “We have a leadership problem” at the annual Hendrik van der Bijl Memorial Lecture, held at the University of Pretoria on 10 October 2024.

This lecture is an annual event hosted by the South African Academy of Engineering, in collaboration with the University’s Faculty of Engineering, Built Environment and Information Technology. It commemorates the contributions of this giant in industry to the industrial and scientific development of South Africa. It has been held since 1963 and has featured many eminent persons whose work illustrates the general theme of the role of engineering in society.

Introducing the guest speaker, the University’s new Vice-Chancellor and Principal, Prof Francis Petersen, described Solomon as a successful business leader and humanitarian, who puts people first, and believes in making a difference in terms of inclusivity, equity and diversity. As the master franchise of the American multinational fast food chain, McDonald’s South Africa has almost 400 restaurants and employs more than 15 000 people. Important imperatives that have played a role in its development since its entry to the South African marketplace in 1995 include technology, digitisation, modernisation and brand purpose.

Having trained in civil engineering, Solomon is the epitome of an engineer who has migrated to another industry where he has made an impact with the skills he has acquired. “Losing engineers to other industries represents a gain to the country’s economy,” he says. Explaining the topic of his presentation, he reflects, “as engineers, we are leaders, and have to make sure that we contribute a solution to the leadership problem in South Africa”.

He described the three aspects that are essential to leadership and management: leading yourself, leading others and leading business. “it’s often not about doing different things but rather doing the same things differently.” He identifies the two prerequisites of a true leader to be the qualities of trust and respect. “It is all about delivering on your promises and teaching someone something new today.” His experience with McDonald’s South Africa serves as an example of how to manage a business by managing its people and its systems.

Looking back at challenges that have had the potential to impact negatively on South African business, he cited the COVID-19 pandemic, loadshedding and the riots in KwaZulu-Natal. He managed to overcome these challenges by having prepared for future eventualities. “We had already started the digital transformation journey, and our involvement in our communities ensured that we had their continued support.” He explains that when the external environment changes faster than the internal environment, it is easy to become irrelevant. His advice is that one should continue to evolve and change, and most importantly, learn. “One needs to focus on scalability and sustainability by paying attention to where transformation needs to take place.”

Solomon places great emphasis on the choices one makes: both in business and in one’s personal life. “In South African business, and particularly in the retail industry, we are standing at a crossroads, where we need to find solutions to two important challenges: youth unemployment and purchasing power.” He believes that one’s decisions have the power to transform business, to transform the youth, and to transform the country. Solomon said that the ‘’choices we make today will define our successes in the future”, and sked that we choose wisely.

Choosing wisely, thinking carefully and making well-calculated choices are the secrets to his business success. “To run a responsible business, you need to think ahead so that you can respond to any unexpected challenge,” he says. He believes in nurturing a culture of innovation, and the importance of continuing the education journey. Highlighting milestones in the development of McDonald’s South Africa since its inception in 1995, he illustrates how many of the innovations were based on listening to the people who work for him, and recognising when something needs to change. He also explained the significance of launching the new flagship Sammy Marks branch in the city centre of Pretoria, rather than in the more prestigious precincts of Brooklyn or Menlyn. “Be authentic and consistent to your core values and proposition no matter where your Brand lives. This builds trust. Treat every customer the same no matter their differences. This is where we can make the biggest difference in the lives of an important demographic in our client base,” he says.

Other important elements of a successful business include having contingency plans in place, being a nimble business leader with an analytical mindset and playing out different scenarios for any future situation. “When something changes by the power of 5, something needs to change fundamentally,” he explains. This recognition drives his operational excellence.

“I believe our power lies in our differences, and that it is our values that bring us together.” He therefore subscribes to the values of service, inclusion, integrity, community and family, where he puts his staff and his customers first. He also believes that it is the smaller things that make the biggest difference. . He also believes in the importance of balancing relationships, and holding people accountable, which is why the tripartite relationship between the franchisees, the corporation and the company’s suppliers form a key part of the brand’s strategic plan, with the customer and staff members as the ultimate beneficiaries. However, Greg’s says “this comes with compromise and making everyone happy if often more difficult than making everyone equally happy’’ – a subtle but significant difference.

Solomon concluded his presentation by responding to a wide range of questions about the firm, business in general, tips for future entrepreneurs and his personal priorities. The consensus was that it was a very insightful talk, with a good mix of finance, passion for people and the willingness to take a risk. By following his example, South Africa’s leadership problem may have found its solution.