CHRO Conversations: Scott Weisberg - Wendy's

Summary

In this insightful conversation, Scott Weisberg, Chief People Officer at Wendy's, discusses the multifaceted role of a CHRO in driving business success. Weisberg highlights the importance of influencing enterprise-wide decisions, managing human resources across a global franchise network, and addressing strategic challenges like rising labor costs and technological shifts. He also emphasizes the value of hiring for potential and fostering an adaptive, motivated workforce. Weisberg's approach to talent management focuses on leadership development and collaborative problem-solving, providing valuable lessons for HR professionals and aspiring leaders.

Takeaways

• 💼 The CHRO plays multiple roles: senior leadership team member, function leader, manager, advisor to the CEO, and confidant to the board.
• 🍔 Wendy's faces strategic challenges, including rising commodity and labor costs, increased competition, and the need for restaurant image updates and technology investments.
• 🛠 HR plays a crucial role in redesigning work systems, improving staff development, and incorporating automation to reduce costs and enhance the employee experience.
• 🔄 Wendy's is addressing high turnover (168%) by making jobs more desirable and improving work systems and management models.
• 🧑‍🤝‍🧑 Hiring for potential is key at Wendy's: they focus on hiring based on capability, then training for specific skills, especially for customer service roles.
• 🎯 Scott Weisberg's 'smart, mature, motivated, and courageous' criteria are key for assessing potential hires, particularly for leadership roles.
• 🤝 The relationship between Wendy's corporate HR and franchisees focuses on enabling them with systems, tools, and best practices rather than direct control, fostering a collaborative learning environment.
• 📈 Franchisees are eager for solutions that drive better outcomes, and good ideas tend to gain traction organically within the franchise network.
• 🎓 Motivating HR talent at Wendy’s stems from the opportunity to make a large-scale impact, such as developing training that benefits 200,000 employees.
• 💡 Weisberg emphasizes the importance of listening and adapting when ideas face resistance, as strong solutions typically gain support without needing to be forced.

Q & A

What is the primary role of a CHRO in the executive leadership team?

A CHRO's primary role is to be part of the senior leadership team, making enterprise-wide decisions. While they lead HR, they also weigh in on broader business strategy and decisions from multiple angles.

What unique challenges does the CHRO face in a company like Wendy's?

The CHRO at Wendy's has to navigate the complexities of managing human resources for both the corporate team and 400 franchisees, which own 95% of the restaurants. They must ensure strategies align with franchisees' needs while also addressing company-wide HR initiatives.

How does the CHRO balance decision-making between corporate leadership and supporting franchisees?

The CHRO's role involves creating an agenda that aligns with the company's business strategy while also supporting franchisees. This includes providing tools, systems, and processes that can help franchisees improve their HR practices and operational efficiency.

What are some strategic obstacles Wendy’s is currently facing?

Wendy’s is facing inflation in commodity and labor costs, increasing pressure on franchisees’ margins. Additionally, there is a need for investment in restaurant upgrades and technology to improve customer experiences, such as mobile and kiosk ordering.

How is HR involved in technological changes and automation at Wendy's?

HR plays an architectural role, helping modify work systems and introducing automation where necessary to enhance the employee experience, reduce costs, and increase efficiency. HR assists in change management to ensure smooth transitions with new technologies.

What hiring philosophy does Scott Weisberg emphasize at Wendy's?

Weisberg believes in hiring for potential and capability rather than specific skills. He looks for qualities like being smart, mature, motivated, and courageous, which he feels are essential for success and future leadership.

What does Weisberg mean by 'smart' when hiring for potential?

Weisberg defines 'smart' not just as book knowledge but as incisiveness—being able to anticipate the right issue and having good instincts to address problems proactively.

How does the CHRO at Wendy's influence without direct authority over franchisees?

The CHRO focuses on providing solutions, tools, and systems that franchisees find valuable. Instead of pushing ideas, the CHRO listens to franchisee feedback and adjusts approaches to meet their needs, allowing effective ideas to naturally take off.

What is one of the biggest challenges in HR for the quick-service restaurant (QSR) industry, according to Weisberg?

One of the biggest challenges in the QSR industry is high employee turnover, which can exceed 160%. Addressing this requires making jobs more desirable, improving work systems, and focusing on employee development to reduce turnover.

How does Wendy's HR department support the development of franchisee HR teams?

Wendy’s HR department provides franchisees with systems, processes, and tools to improve their HR outcomes. It also fosters a learning environment where franchisees can exchange ideas and best practices to elevate their human capital capabilities.