Don't be afraid of your No. 2
There was a time when the idea of "Hamburger U," McDonald's training facility, used to elicit titters, but to Skinner, who didn't graduate from college or earn an MBA, management training is no joke. He created a leadership institute a year after he became CEO. One nine-month leadership program brings together top-performing executives to work on addressing big issues for McDonald's. Funding for another program, for all new officers, comes out of Skinner's own budget.
This push for talent development may be Skinner's greatest legacy at the company, which has 700,000 employees in the U.S. alone, thanks in part to its April "national hiring day" spree of 62,000 workers. He requires that all executives train at least two potential successors -- one who could do the job today, the "ready now," in McDonald's parlance, and one who could be a future replacement, the "ready future." One could speculate that this redundancy might have to do with the way Skinner came into his current position. Every year the executive team, including Skinner, reviews the top 200 positions in the company and the feeder pool, which means it ends up looking at about 400 people. "We talk about all of them," says HR chief Rich Floersch.
Skinner doesn't show much sympathy for employees who can't handle the thought of having a subordinate right behind them who's capable of tackling their job at any moment. "That's always a danger, and some people can't live with that," Skinner says. "I always like to say that my goal is to surround myself with people smarter than I am. I'm not afraid of it." And Skinner seems to practice what he preaches: At analyst meetings and on calls, he regularly defers to his No. 2, Don Thompson, who moved into his current job as chief operating officer in 2010.
Skinner isn't exempt from having a "ready now," and Thompson is widely believed by analysts to be his heir apparent. McDonald's doesn't have a mandatory retirement age, and the 66-year-old Skinner won't say when he plans to make the move. He does offer one lighthearted hint: "People always ask me when I'm going to retire," he tells me. "I say, 'When I run out of lids.'"