HR Corner Information a key ingredient by Charles Mak Structured knowledge management mechanism helps the world's largest fast-food restaurant chain prepare for change In today's information-driven global business environment, the most important asset in a company is knowledge. For success though, such knowledge should be pragmatic, easily accessible and transferable, notes Alan Chan, vice president, operations, human resources and training, McDonald's Restaurants (Hong Kong) Limited. According to Mr Chan, effective knowledge management (KM) requires a sophisticated infrastructure facilitating knowledge processing, consolidation and sharing. Thanks to technological advances, a great deal of McDonald's global operational wisdom is stored and shared on its global intranet MCD. Mr Chan says. "It's like an encyclopaedia." Hong Kong McDonald's KM concepts are in line with those of the US headquarters' but modifications are encouraged to suit local contexts. "The Hong Kong office implemented KM initiatives a mere two years ago but with experience, support and advice from our headquarters, we are able to build and continuously develop our own systems focusing currently on local staff training and development," Mr Chan says. The development of the KM platform was not a one-off exercise. A dedicated internal team was commissioned instead of outsourcing the task to IT firms. "We adopt a progressive approach keeping abreast of technological changes and new knowledge initiatives," he adds. "Every year we allocate resources building on our original capacity. The next stage will include a wide range of HR related information and services." Being there In spite of such rich global intranet content, Mr Chan believes the most effective learning still demands learners' physical presence. This is made possible through McDonald's growing knowledge transfer systems. "MCD lists appropriate and available programmes in accordance with rank and individual learning needs," he says. "Our Hamburger Universities in the US, the UK, Germany, Japan, Australia, Brazil and Hong Kong offer regular restaurant management training, meeting the knowledge needs of specific regions." "We must constantly remind ourselves that we are still green and growing" Three years ago, the US headquarters set up the Leadership Institute to satisfy the growing demand for new leaders. The institute subsequently designed the MBA-like one-year top-talent development programme under which experts from all over the world transfer executive skills to future generations of business leaders through an array of meticulously designed exercises and activities. The programme includes an intensive training course offered by a reputable US management school. Every three months, participants gather at a regional office such as Singapore or Dubai for a week-long management training course. The programme closes with participants submitting a business project. Closer to home, a one-year top-talent development programme was launched in collaboration with the Hong Kong Productivity Council. Five per cent of the company's management elite participated in various learning activities designed to unleash professional potential and contribute to personal career advancement. Participants compiled a career plan, conducted 360-degree feedback, took part in an array of training programmes and workshops and completed a final project. "We also arranged for participants to visit the company's business partners and be observed," Mr Chan notes, adding that promotion was virtually guaranteed. "In fact, more than 80 per cent of participants were promoted as a result of the programme," he remarks. Since 1999, the McDonald's "Grill Direct System" has been gradually replaced by a "Made For You" production system. Of the 200-plus restaurants in Hong Kong, more than 40 now boast new food preparation facilities as well as personnel with the necessary skills and knowledge gained from tailored training at the Made For You training centre. Other local training programmes are on offer via the company's McCafe training centre, and its Food Studio in North Point which also serves as the food innovation hub for the entire Asia Pacific region. "There are two basic levels of training, each with specific learning tools," Mr Chan says. "Frontline crew receives station training while restaurant managers and assistant managers undergo operational training." Green and growing New product concepts including alternative ingredients, cost structures, sales performance, food photography and expert comments on product origins are available on the global knowledge platform. McCafe and the Shogun burger exemplify two concepts resulting from successful knowledge transfer. "Through our knowledge bank, regional meetings and sharing sessions with regional experts, we can gain insight and observe the most effective business practices," Mr Chan adds. Every year, McDonald's Hong Kong training department devises a range of training programmes for more than 1,200 assistant managers and restaurant managers, and a management trainee programme grooming over 240 young aspirants. What keeps McDonald's KM initiatives alive is its keen focus on continuous learning. "Knowledge helps us get ahead," Mr Chan concludes. "Therefore, we must constantly remind ourselves that we are still green and growing." Salient points Sophisticated infrastructure facilitates knowledge processing, consolidation and sharing Effective knowledge management requires efficient knowledge transfer systems Continuous learning a company value Taken from Career Times 23 November 2007, p. C12 Your comments are welcome at [email protected]