Sustainable Big Macs: The plan for a leaner, greener McDonald’s

McDs_Langert1Imagine going into a McDonald’s and learning that all of the beef used in their hamburgers was sustainably sourced. Not only that, but the restaurants were using less energy, recycling more and adding more fruits and vegetables to their menu. Seem far-fetched? Not when you learn that the company, famous for its fast, low-cost food items, has been developing sustainability initiatives for the past three years. Enter Bob Langert, McDonald’s Vice President of Corporate Social Responsibility and keynote speaker at Foster’s Fourth Annual Idea Lab. Speaking to an audience full of MBA students and Puget-sound area business leaders, Langert talked about supply chain, consumer buy-in, and championing sustainable beef at the home of the Big Mac.

Having labeled McDonald’s as a company in transition, Langert hopes that their involvement in the sustainability movement– which he thinks is “too small [and] too niche”– will jumpstart supplier and consumer buy-in. McDonald’s has developed a plan, dubbed “Our Journey Together. For Good”, to make their menu both healthier and sustainable. The plan’s goals include:

  • To begin serving sustainably sourced beef by 2016
  • Add more fruits and vegetables by 2020
  • Reduce fat, sugar and overall calories in their food
  • Provide 100 percent sustainably sourced coffee
  • Reduce restaurant energy consumption by 20 percent
  • Increase in-restaurant recycling by 50 percent.

To achieve these goals, McDonald’s first priority is to address the supply chain—which Langer believes accounts for 80 percent of the corporation’s environmental impact. While aggressive, this certainly isn’t the first time the Golden Arches has addressed food sourcing.McDs_audienceClose

Dressed in chicken suits, Greenpeace activists staged protests in European McDonald’s restaurants with the hopes of raising awareness of deforestation in Brazil due to soya production in the Amazon. As it turned out, Amazonian soya was a major source of soy for McDonald’s food products. Surprising cynics (and probably a few Greenpeace protestors), Langert met with the activists, even traveling to the Amazon with them to get a first-hand picture of the devastation. Within three months, Langert says, McDonald’s was able to negotiate a moratorium on Amazon soya. Reflecting on the experience, Langert said, “[I’m] proud of the work, not proud that it came through a crisis.” The soya-based deforestation problem was a watershed moment for McDonald’s, driving the company’s other environmental initiatives like responsibly sourcing their coffee and their fish—100 percent of which comes from sustainable fisheries. With a focus now placed squarely on their beef suppliers, McDonald’s hopes to do the same for the millions of hamburgers they sell each day.

From enlisting the consulting expertise of famed animal science doctor and autistic activist Dr. Temple Grandin to honing in on their message, McDonald’s approach to the beef industry has been multi-pronged. Recalling his keynote speech at the first annual Ranch Sustainability Forum earlier this year, Langert reiterated the importance of coming together as a community to be more environmentally responsible and forward-thinking. “I kept saying we’re on the same page. We want sustainable beef to sell more beef.” However, Langert knows that sustainability isn’t limited to suppliers. Pointing to the trouble their European restaurants are having convincing their customers to recycle (crew members are manually separating garbage from recycling), Langert acknowledges there’s still a long way to go. When asked if it’s possible that customers are fatigued by sustainability messaging, Langert half agreed, stating that while McDonald’s Chief Brand Officer is coming up with “disruptive ways to reach consumers” he knows that what they’re doing right now is not enough. He added, “The plan right now is not consumer-centric. Our time now is being spent within the supply chain.” That’s not for nothing. Langert said that he continues to be astounded by the progress made on the supply side, stating that “suppliers discussing sustainability is a big deal.”

McDs_qaThere’s no doubt for Langert that McDonald’s has a challenging road ahead to achieve total supplier and consumer buy-in, stating, “When you try to develop something bold, there’s a lot of resistance.” However, Langert maintains that the folks at the Golden Arches are committed to taking sustainability beyond the “small and niche.” Within a few short years, McDonald’s may evolve in to paragon of environmental stewardship in the business world and possibly beyond. We’ll all just have to wait and see.

This event was co-sponsored by Foster’s Net Impact MBA club. Net Impact is a new generation of leaders who use their careers to tackle the world’s toughest problems. They put their business skills to work for good throughout every sector. By doing so, they show the world that it’s possible to make a net impact that benefits not just the bottom line, but people and planet too. Learn more about the club here.

Minority Business Hall of Fame and Museum opens

Fred Canady and John F. Robinson
Fred Canady and John F. Robinson

On May 13 the Minority Business Hall of Fame and Museum was unveiled at the UW Foster School of Business Center for Consulting and Business Development. The Hall of Fame, founded in 2004 by the National Minority Business Council and the Minority Business News USA, recognizes trailblazers who have built minority-owned businesses across the U.S. Since its inception, more than 50 people have been inducted.

In 2013 the Hall of Fame board approached the Foster School and Professor and Dean Emeritus William Bradford, who was inducted into the Hall of Fame in 2013, with a request to collaborate on the exhibit. Fast forward to almost a year later, a partnership between the Hall of Fame and the Foster School has been established. The exhibit is housed on campus in Mackenzie Hall and was developed in partnership with the Center for Consulting and Business Development, which has been helping minority-owned businesses succeed for the past 19 years.

Provost Ana Mari Cauce
Provost Ana Mari Cauce

At the grand opening of the Hall of Fame, Foster School Dean Jim Jiambalvo said he was very pleased the Foster School and the Center for Consulting and Business Development were able to form this partnership with the Minority Business Hall of Fame and Museum. UW Provost Ana Mari Cauce said the Hall of Fame, along with the Office of Minority Affairs & Diversity, the UW Samuel E. Kelly Ethnic Cultural Center and the Intellectual House, scheduled to open in March 2015, represents the UW is committed to building a diverse community open to everyone. Washington State Representative and Foster alumna Cindy Ryu (MBA 1983) said the Hall of Fame signaled there are opportunities for everyone. She also cited the Washington State Dream Act (REAL Hope Act) as one of the most important pieces of legislation to pass because it makes college possible for people who are not legal citizens and creates a more diverse learning environment at higher education institutions in Washington.

John F. Robinson, founding board chair of the Minority Business Hall of Fame and Museum, said that for the past nine years they have always wanted to find a home for the Hall of Fame and he was pleased it was able to be here at the Foster School. Then Fred Canady, chair of the Hall of Fame, introduced the newest inductees. Two of the five 2014 inductees are from the Seattle area: Firoz Lalji, co-founder of Zones, an IT company, and the founders of Liberty Bank, which was started in the Central District of Seattle in 1967 by business leaders who wanted to make more banking services available to minorities. The other inductees are Charles Timothy Haffey, former VP of corporate purchasing for Pfizer; Don McKneely, founder, chairman and CEO for MBN USA and Business News Group and co-founder of Billion Dollar Roundtable; and Margaret Z. Richardson-Wiley, former executive director of National Minority Supplier Development Council.

Yonas Seifu
Yonas Seifu

The grand opening concluded with Foster MBA student Yonas Seifu. He shared how mentoring and seeing African Americans in the engineering field, the career path he pursued as a high school and college student, shaped his career. He ended the talk by referencing the African proverb, “It takes a village to raise a child.” And he said, “The Minority Business Hall of Fame and Museum is now part of the Foster School of Business village.”

Checking in on YEOC: The March and April Sessions

March: International Experiences
In an ever-connected world, with the lines that divide nations, ethnicities and philosophies becoming blurrier with each passing year, cultural competency will be (if it is not already) key when it comes to professional success. With the theme “International Experiences,” YEOC students are once again proving themselves to be ahead of the curve. The day began with college prep workshops in cultural awareness and leadership, preparing them for the month’s activity. In an event dubbed Global Student Experiences and Around the World Lunch, students rotated between three themed rooms (China, India and Brazil) where they ate lunch (also themed) and listened to a panel of students who had visited that particular country. Afterward, parents joined the students to watch the highly anticipated annual YEOC Cultural Showcase. Performers included UW’s African Student Association, Perlas Mestiza, Jamela Mohammed, Myanmar Student Association, Khmer Student Association and Seattle Karen Don Dance group. Be sure to watch the video for snippets of the showcase and to see the YEOC Flash Mob!

April: Accounting
Just in time for tax season, this month’s theme was “Accounting.” Students kicked things off with a mentor lecture on accounting and a workshop on dining etiquette. Led by Pamela Lacson (Foster’s Associate Director of Diversity & Recruitment), the workshop included the 3 “D’s” of etiquette: Demeanor, Dining and Don’ts. Students also learned the importance of first impressions, voice, eye contact, appropriate attire, handshakes and elevator pitches. Afterward, Beth Lambert, senior manager of EY Fraud Investigative Dispute Services, joined students for this month’s YEOC Talk on Forensic Accounting. Fans of the popular Crime TV genre may be familiar with the term “forensic” as a scientific means to solving grisly crimes. As it turns out, those same skills (gathering and analyzing evidence) can be used to solve white-collar financial crimes like embezzlement, bankruptcy or fraud. Not many high school students can say they spent the day learning the ins and outs of a crucial specialty practice area of accounting. Near the end of the session, students were introduced to their last YEOC activity of the 2013-2014 school year—the case competition. Students will present their findings to a panel of Seattle-area professionals during the May session.

This blog post is a part of a series focusing on monthly YEOC student activities. Visit the YEOC page to learn more about the program.

Seattle meets Saudi

Lateefa Alwaalan

Lateefa Alwaalan wants to bring Arabic coffee to a global market

Coffee and start-ups might seem more Seattle than Saudi Arabia, but not to Lateefa Alwaalan (TMMBA 2011). Yatooq, the company founded by Alwaalan, makes it easier and faster to brew Arabic coffee, a blonde, spicy coffee central to all social gatherings in places such as Saudi Arabia, Bahrain and the United Arab Emirates.

Alwaalan came to Seattle to get her MBA after studying computer science, and working in IT and then banking in her home country of Saudi Arabia. While in the Technology Management MBA Program, she focused intently on gaining business and entrepreneurial skills. She competed in the Business Plan Competition with her idea for Yatooq. She also enrolled in the Entrepreneurship Certificate, offered by the Buerk Center for Entrepreneurship at Foster. She says her experience at the Foster School, “transformed me. I use everything I learned—from change management to supply-chain management to marketing.”

Upon returning home after graduation, her father offered her a job in his pharmaceutical company. Her first job was entering invoices, but that didn’t last long. She quickly moved up the ranks and became the general manager in less than two years. During that time, Alwaalan was also busy launching Yatooq.

The coffee business
Yatooq started by selling ready-made blends of coffee, with good results. The company’s most successful product, however, has been the introduction of its coffee machine last year. When made traditionally, Arabic coffee takes 20-30 minutes to prepare and requires over ten steps. Yatooq’s machine dramatically reduces the time and effort required to make Arabic coffee, and it’s one of the first such machines to be sold in Saudi Arabia. Within two weeks of launching the coffee machine in grocery stores and online, it sold out.

Shortly after that initial success, Alwaalan was able to stop working at the pharmaceutical company and focus on growing her business full-time. She is relentlessly focused on improving the product. The coffee machine has gone through several iterations and improvements, and Alwaalan says, “I’m focusing on acquiring market share and building the brand.”

Recently, competitors have entered the coffee market in Saudi Arabia with machines similar to Yatooq’s, and Nestlé introduced its own version of ready-made blends of Arabic coffee. Alwaalan views this positively; it means the market is growing.

Networking advocate
Not only has Alwaalan managed a pharmaceutical company and launched a successful start-up, she also co-founded the organization CellA, which offers women the opportunity to regularly network with each other—a foreign concept for many women in Saudi Arabia. CellA also provides career management training and a mentorship program for women who are just starting their careers. In 2011, the group had 70 members. Today, membership has ballooned to almost 3,000, and the organization has provided training to 600 women. Alwaalan was nominated to be president of the organization earlier this year.

Onwards
The future looks bright for Alwaalan. Yatooq continues to expand. Last fall, the company started distributing its coffee and coffee machines in Kuwait and opened a store there. In December, she was chosen by Forbes Middle East as one of its “Leaders Inspiring a Kingdom in the Business World.”

Alwaalan said her greatest challenges now are scalability and shifting from a start-up to a more established company. Her goal for the future is to bring Yatooq’s coffee and coffee machines to the world, and her vision is for Arabic coffee to be the next Chai tea. Look for Yatooq in a store near you soon.

Fashion changes, values do not

It’s not every day that the president of a billion-dollar company hands out his email address to a group of undergrads. But not every company president is like Blake Nordstrom.

Nordstrom
Blake Nordstrom discusses the importance of company culture in an undergrad retailing class.

On April 30, Blake Nordstrom, president of Nordstrom, gave a brief presentation and answered student questions in an undergraduate retailing course. He began his presentation with a wide smile and disarming honesty. “We have a motive here; we’re hoping some of you will come work for us,” he said.

After a little backstory on the humble beginnings of both the man (who started in the stockroom of the shoe department) and the company (which started as a Seattle shoe store), Nordstrom launched into a discussion on the impact of company culture. “Fashion changes, values do not,” he said. Over the course of the presentation Nordstrom emphasized his company’s commitment to both their customers and employees. He attributed much of their success to an inverted pyramid model where customers are at the top, followed by the employees who work most closely with customers, and management is at the bottom. “Our business works when we live that pyramid,” he said.

Nordstrom elaborated on his company’s commitment to customer service and customer experience. “It’s all about making the customer feel good,” he said. He underscored the importance of making the customer feel empowered, as if it were their name, not his, on the door. Online shopping is one part of that customer empowerment strategy. “Ecommerce helps customers shop on their terms,” he said. On the subject of the retailer’s liberal returns policy, he stated believing in the customer creates trust, which in turn creates sales volume.

Next, Nordstrom talked about the importance of employee growth. “We really believe leadership development is grounded in experience,” he said. He emphasized the company’s practice of promoting from within and how they strive to give managers hands-on training, citing that most managers cut their teeth on Nordstrom Rack stores before moving to full-line stores. He then discussed the company’s commitment to social responsibility—embodied by the Nordstrom Cares project and its motto, “leave it better than we found it.” Nordstrom emphasized importance of having workers who want to be associated with the company and its values. He stated job seekers should make sure a company’s principals align with their personal principals.

Nordstrom ended the presentation by discussing the company’s internship program—and its 80% retention rate—before opening up the floor for questions. Students asked questions ranging from potential international expansion to the impact of social media. On the subject of social media, Nordstrom discussed their success in creating excitement and energy. “We’ve got to try new things. If it doesn’t work, we learn from it quickly and move on,” he said.

A design framework for innovation

On April 2, the Foster School held its 2nd annual Innovation and Entrepreneurship Symposium, hosted by Neal Dempsey, this year’s Fritzky Chair. Julia Link, principal of the Link Group which offers product and go-to-market strategies for various companies, spoke about the creative process and provided a design framework.

A design framework for innovation:
Julia LinkStep 1: Empathize – In this phase, you’re trying to understand your target customers’ needs, motives, feelings and goals. Your job is to get the story. Don’t go to your potential customer with the solution; instead let them tell you what they want.

Step 2: Define – Take the information and insights you’ve gathered in step one and start to define the user and decide what problem you’re trying to solve. You should ask yourself “so what.” We’ve created this product that solves this problem. So what? Why is it so important to solve that problem? Who needs that problem solved?

Be sure to design your product for individuals, not the industry. Link also made a very important point about designing for the extreme users. Extreme users are not power users, but they are people who have more requirements than the average product user. If you can design for the extreme users, chances are high the regular users will also like what you designed. An example she cited was wheels on suitcases. Now ubiquitous, wheels on suitcases were originally for people who traveled a lot.

Step 3: Ideate – Come up with a lot of ideas for your product. This works best when you can brainstorm with a group which has varying backgrounds. Have everyone suggest ideas. Don’t judge the ideas, just write them down.

Steps 4 and 5: Prototype and Test – Take the ideas generated in step three and go make something. Don’t spend a lot of time or money on the prototype. It’s not sacred. You’re simply trying to create something people can give you feedback on. Don’t take the feedback personally. Repeat this process as often as needed: Prototype > Fail > Learn often.

Learn more about all the Innovation and Entrepreneurship Symposium sessions.

Consider the inevitable

On April 2, the Foster School held its 2nd annual Innovation and Entrepreneurship Symposium, hosted by Neal Dempsey, this year’s Fritzky Chair. Three people spoke about design and innovation trends in business: Ken Denman, president and CEO of Emotient; Bob Paulsen co-founder and CEO of PlayerLync; and Julia Link, principal of the Link Group. Below are highlights from Denman’s and Paulsen’s sessions.

Ken DenmanDenman focused on innovation and relayed his experiences with Emotient, a facial expression recognition and analysis company. Main points included:

  • When established companies are trying to innovate, they tend to make existing products only incrementally better. This works for awhile, but then smaller companies start to catch up and offer more innovative products that grab more and more market share. The example Denman cited was the iPhone. When it came out, it was a product category maker or re-maker. It started taking market share away from existing markets such as GPS and personal cameras.
  • Study up on the industry you’re in so you know who the competitors are and where the market is heading. Knowing this information allows you get beyond the basics in conversations.
  • As an entrepreneur, you’re always raising money while you’re doing everything else. It’s exhausting, but it’s part of the job.
  • As an entrepreneur you have to be able to overcome your fears. You must have the confidence to say, “I can do this.” And you have to be able to project that confidence.
  • Uncertainty is a given in entrepreneurship. You don’t know what you don’t know, but you’ll learn it when you need to know it.
  • Product philosophy: Before you start, think about the inevitable. What’s inevitable given the technology available, customer needs and status of the market? Use the answers to these questions to decide whether or not to pursue an idea. If you can identify those areas in the market where something big is going to happen, you’re positioning yourself for success.
  • One of the most challenging aspects of innovation is to take big complex ideas and make them stupid simple—so simple anyone can understand them.
  • To innovate, be disciplined and methodical in your thinking. Try something, measure it and iterate. Repeat that process over and over.

Learn more about Ken Denman and his company Emotient, formerly Machine Perception Technologies.

Bob Paulsen, co-founder and CEO of PlayerLync, shared his innovation best practices. PlayerLync creates an enterprise platform that provides a secure and easy way to control content and offers tablet-based collaboration. Their clients include large restaurant chains and NFL football teams.

Bob PaulsenPaulsen shared several keys to success:

  • PlayerLync takes a very user-focused approach to their product, and Paulsen reinforced that mentality throughout his presentation. He said you have to make it easy for someone to use your product. If their first experience with it isn’t positive, they’ll look for something else.
  • When developing PlayerLync, they considered what their customer would want in their product by anticipating their needs. The customer gave them a few initial requirements, and they took those requirements and ran with them. The result was a product that exceeded the customers’ expectations.
  • Ideas are great, but businesses are based on who will pay for your product, service or software. Don’t overlook this when starting a new venture.
  • He also recommended three business books: The E Myth by Michael E. Gerber, Crossing the Chasm by Geoffrey A. Moore and The Discipline of Market Leaders by Michael Treacy and Fred Wiersema.

Learn more about all the Innovation and Entrepreneurship Symposium sessions.

The Global Team is GBCC 2014 champion

Nick Schuler (UW), Jarred Adams (FSU), Mathea Hubert (NHH), and James Lam (CHUK)
Nick Schuler (UW), Jarred Adams (FSU), Mathea Hubert (NHH), and James Lam (CHUK)

Four students representing four different universities and three continents made up the ‘Global Team’ that took home the trophy in the 16th annual Global Business Case Competition (GBCC) on Saturday, April 12th.

Each of the twelve student teams that competed in GBCC spent 48 hours analyzing a business case on Nike’s sustainability and labor practices. The students were asked to identify three countries where Nike should shift its production. Teams had to justify their choices by explaining the advantages and tradeoffs of candidate countries in terms of sustainability and labor practices, as well as costs and other competitive factors. They also had to address ways in which Nike could implement traceability of its supply chain for collegiate apparel.

Of the four teams selected to move on to the final round, the judges chose the ‘Global Team’ as this year’s Champion. Unlike the other competing teams who came from just one university, the ‘Global Team’ was made up of one student from the Chinese University of Hong Kong, Florida State University, NHH Norwegian School of Economics, and the University of Washington. They met for the first time just days before their final presentation.

Multicultural teams are now a reality of both the classroom and the professional environment. The Global Business Center began the ‘Global Team’ tradition eight years ago to bring students from around the world together to work as a team. The judges said that the team’s final presentation clearly benefitted from their diverse backgrounds and experiences. In eight years, the Global Team has placed in the finals four times, and now they are GBCC Champions!

The Global Business Center would like to acknowledge the hard work of our GBCC Student Leadership Team who spent countless hours organizing this event. Co-chairs Lisa Dang and Connor Harle were exceptional leaders for over 100 students that were involved this year.

Finally, GBCC would not be possible without our major corporate sponsors: The Boeing Company, Costco Wholesale, F5 Networks, Fluke Danaher Corporation, Russell Investments, Starbucks Coffee International, and Wells Fargo.

Innovation and Entrepreneurship Symposium

InnovEntreSymposiumOn Wednesday, April 2, the Foster School of Business held its 2nd annual Innovation and Entrepreneurship Symposium. Neal Dempsey, the visiting 2013-2014 Edward V. Fritzky Chair in Leadership, hosted an interactive day where students and business representatives came together to discuss the latest challenges in design and innovation.

The symposium started with Christian Chabot, founder CEO of Tableau Software. Next, Salman Ullah of Merus Capital and Neal Dempsey gave an insightful talk and provided advice to aspiring entrepreneurs. Highlights included:

  • It’s hard to be an entrepreneur. You have to fail to succeed. And after you fail, you have to get up and do it again.
  •  To be successful today, you have to work really, really hard—harder than those in previous generations. Why? Because the world is full of people who are also working really, really hard, and you’re competing against them.
  • Raising money.
    • There are many sources from which to raise money. Ullah made the point, however, that it’s good to raise money from traditional sources (venture capitalists) because they have a high bar, which is good for you and your business.
    • The real work of an entrepreneur starts after you’ve raised money. Ullah said, “Have enough psychic energy to get past the initial euphoria of raising money.”
  • Take responsibility for your own career path. Regularly evaluate your career to ensure it’s what you want. If it isn’t, make a change.
  • In every job you have figure out who will give you air cover. In this context air cover refers to a person who will back you and your ideas up when you need it. This person could be someone you’ve done a favor for, your mentor or a colleague.

Learn more about all the Innovation and Entrepreneurship Symposium sessions.

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