Chapter 2 Creating Your PDS Plan
Information for Employees
Management of the Shift
(MOS)
PDS Guidebook
Driving Manager and Restaurant
Performance
© 2005 McDonald’s Corporation
2.1
Chapter 2 Creating Your PDS Plan
Information for Employees
Contents
What is the Performance Development System (PDS)

3
Performance Assessment – Individual Performance
Plan(IPP)
What are the Benefits

Page
3
Restaurant Manager/Management Team/Restaurant
How it Works
3

PDS Schedule at a Glance
4

Planning – Utilizing Restaurant Results - Utilizing SMPI
Results
5

Monthly Progress Review and Feedback
6

Mid-Year Review
6

Year-End Review
7

Utilizing the SMPI to Maximize Performance
Development
7
How Employees are Evaluated
10

Results Achieved
10

Leadership Competencies
11

Overall Performance
12

How to Calculate Ratings
12

Getting Started
13
Individual Development Plan - IDP
 Creating a Strong IDP
PDS Guide Toolkit
14
15
17

Managers Guide to Assessing Employee Performance
17

Handling Underperformance
21

SMART Objectives
22
Individual Performance Plan (IPP) Forms

23
Restaurant Manager, Assistant Manager, Shift
Manager
© 2005 McDonald’s Corporation
2.2
Chapter 2 Creating Your PDS Plan
Information for Employees
What is PDS?
The Performance Development System (PDS) is designed to drive high
performance and support employee development at McDonald’s. This system
involves creating performance plans, supporting those plans, evaluating
performance, and developing employees.
Under PDS, your performance assessments are based on results achieved (what
gets done) and leadership competencies (how it gets done). You are
encouraged to take responsibility for your own performance development, while
your managers provide support, coaching, and feedback.
Benefits for Restaurant Manager/Management Team/Restaurant
PDS helps the Restaurant Manager by:
 Aligning individual management team members performance objectives
and work activities around restaurant priorities
 Providing objective shift performance assessment criteria through utilization
of the SMPI reports and targets
 Providing routine coaching opportunities to develop management team
skills and improve individual performance
 Promoting a more concentrated focus on activities that will have the
greatest impact on restaurant results
PDS helps the Restaurant Management Team by ensuring each employee:
 Understands their role and responsibilities for the year
 Engages in a performance and development discussion with their Manager
 Understands how they will be evaluated at the end of the year
 Receives guidance on how to further develop their skills and advance their
career at McDonald’s
 Creates environment for recognition and rewards
PDS helps the Restaurant by:
 Aligning management team performance objectives with restaurant
priorities
 Promoting accountability and ownership for shift performance by linking
individual shift performance to rewards
How it Works
The PDS process consists of 4 primary steps:
1.
2.
3.
4.
Planning
Monthly Progress Review and Feedback - New
Mid-Year Review
Year-End Review
© 2005 McDonald’s Corporation
2.3
Chapter 2 Creating Your PDS Plan
Information for Employees
Performance Development System - Schedule at a Glance
Timeframe
Activity
Managers
Responsibility
Employee’s
Responsibility
December January
Planning
Complete
IPP/IDP for the
upcoming
year
Document
SMART
objectives for
the year on
the IPP/IDP
By end of
July
Mid-year
review
Communicate
objectives for
employees to
consider for
the coming
year
Assess
employee’s
performance
to date
Perform selfappraisal of
performance
to date on
business and
individual
development
objectives
Meet to review
manager and
employee
assessments
and possibly
revise
objectives for
the remainder
of the year
December January
Succession
Plan/Talent
Plan
(Where
Applicable)
Year-end
review
Assess
employee’s
performance
for the year
Perform Selfappraisal of
performance
for the year
Review
employee’s
SMPI results
and progress
on
performance
objectives Provide
coaching and
recognition
where
appropriate
Record SMPI
data to IPP Discuss shift
performance
and status of
performance
objectives with
manager
Meet to review
final
assessments
and establish
plan for next
year
Meet to discuss
shift
management
performance
and progress
on
performance
objectives
December January
Weekly,
Monthly
and
Ongoing
© 2005 McDonald’s Corporation
Employee and
Manager
Together
Meet to review
and modify the
plan.
2.4
Chapter 2 Creating Your PDS Plan
Information for Employees
Planning
Step 1: Identify and agree on restaurant targets and priorities
At the beginning of the year, each Restaurant Manager should meet with their
Operations Consultant or Owner/Operator to establish People, QSC, Sales (Guest
Count), and Profit targets for their restaurant. Key restaurant performance reports
should be reviewed and discussed during this session – ROIP, Mystery Shop, CSO,
SMPI, Manager and Crew Turnover, Commitment Survey, Year-end P & L
Statements and Profit Plan. Together, the Restaurant Manager and Operations
Consultant should identify the top 1 – 3 opportunities in the areas of People, QSC,
Sales and Profit and develop targets for each. At a minimum, 90 day turnover,
CSO, Guest Count and PAC targets should be established and agreed upon. This
meeting should also include a discussion on the leadership behaviors required to
achieve targets.
Step 2: Restaurant Manager documents IPP performance objectives
After consulting with the Operations Consultant and/or Owner/Operator on
restaurant targets and priorities, the Restaurant Manger writes their performance
objectives on their IPP form. These objectives should be developed based on the
following:



Restaurant targets (Plan) and priorities e.g. sales, GC and profit plan
Restaurant shift management opportunities from SMPI
Assigned areas of responsibility e.g. labor scheduling, food cost, crew
development, etc.
Additionally, performance objectives should be written as SMART objectives.
(SMART objectives are Specific, Measurable, Achievable Relevant and Time
bound - See SMART Objectives section of Toolkit.
Step 3: Restaurant Manager Communicates Restaurant Priorities, Targets and
Performance Objectives
The Restaurant Manager communicates restaurant priorities, targets and his/her
individual performance objectives to the management team and instructs them
to write their individual IPP performance objectives.
Step 4: Document and agree on IPP targets and performance objectives
Each Management Team Member documents their IPP performance objectives
and meets with the Restaurant Manager to review them. The Restaurant Manager
and each individual Management Team member identify and agree on final
targets and objectives. The performance objectives and targets should take into
consideration the following:




Restaurant targets (Plan) and priorities e.g. sales, GC and profit plan
Individual shift management opportunities from SMPI
Assigned areas of responsibility e.g. labor scheduling, food cost, crew
development, etc.
Individual manager knowledge, skill and ability – developmental needs
© 2005 McDonald’s Corporation
2.5
Chapter 2 Creating Your PDS Plan
Information for Employees
Monthly Progress Review
Step 1: Record SMPI Data
Monthly each employee should record SMPI data for the month to their IPP form
(SMPI Review -Pg. 1) and meet to discuss their SMPI results (Strengths and
Opportunities) and progress on performance objectives with their manager. (The
Restaurant Manager meets with Operations Consultant, Owner/Operator and/or
Operations Manager. Assistant and Swing Managers meet with the Restaurant
Manager.)
Step 2: Schedule Monthly Progress Review
Each employee and manager should schedule a brief review of progress on a
monthly basis. The objective for this session is to discuss SMPI results, progress on
performance objectives and to provide an opportunity for coaching and
recognition. The time investment for the monthly meetings will vary by employee
based on their progress and the complexity of their assignments. The manager
should determine the actual meeting duration based on these factors. 15 – 30
minutes should provide a good starting point for scheduling purposes.
Mid-year Review
Step 1: Update IPP and Complete Mid-year Self-assessment
At mid-year, each employee updates their IPP with SMPI and performance
objective results, and completes a self-assessment on their demonstration of the
leadership competencies during the first half of the year. This is submitted to their
manager prior to the mid-year feedback session.
Step 2: Schedule and Execute Feedback Session
At Mid-year, the manager schedules and executes a feedback session with each
employee. During the mid-year discussion managers give feedback on progress
against business targets, SMPI results, performance objectives and leadership
behaviors. Performance trends, strengths and opportunities are noted and
managers and employees should discuss areas of focus for the remainder of the
year.
To prepare for this review, the employee should record monthly SMPI results on
their IPP form (SMPI Results page 1) on a monthly basis. At mid-year, and again at
year-end, the employee should record cumulative SMPI results for the period. The
mid-year and year-end cumulative SMPI results should be discussed by the
manager and employee. At mid-year, the employee and manager should
confirm the employee’s IPP performance objectives are aligned with opportunities
identified from the SMPI report. At year-end, the employee should develop
individual shift management performance objectives for the next performance
period.
This mid-year review provides the manager and employee with a sufficient time
period in which to review, identify, discuss and address employee performance
trends
to
ensure
success
prior
to
year-end.
© 2005 McDonald’s Corporation
2.6
Chapter 2 Creating Your PDS Plan
Information for Employees
Year-end Review
Step 1: Update and Complete Year-end Self-assessment
At year-end, managers request an updated IPP from employees. Each employee
updates their IPP with SMPI and performance objective results and completes a
self-assessment on their demonstration of the leadership competencies during the
year. This is submitted to the managers prior to the Year-end feedback session.
Step 2: Manager Completes Year-end Ratings
The manager completes a rating on results achieved based on accomplishment
of performance objectives and the operating environment. They also complete a
rating for demonstration of leadership behaviors for each competency. Finally, a
preliminary rating for overall performance is determined. Note: This rating is
discussed with the managers’ manager (Operations Consultant, Owner/Operator,
Operations Managers, etc.) before being finalized and communicated to the
employee.
Step 3: Communication and Feedback on Performance and Final Ratings
During the year-end review, managers meet with employees to discuss final
performance ratings and provide feedback on the employees’ performance
during the year. Areas for further development and required development
resources e.g. Training classes, 12 Systems Toolkit, Roadmap to profitability website, etc. should be discussed and incorporated into the employee’s Individual
Development Plan objectives.
Utilizing the SMPI to Drive Performance Improvement and Development
Promotes greater
accountability and
ownership for
shift performance
The Shift Management Performance Indicator provides tremendous opportunity
for continuous performance development for all managers. The SMPI provides
objective and real information that managers may use to identify performance
development opportunities.
© 2005 McDonald’s Corporation
2.7
Chapter 2 Creating Your PDS Plan
Information for Employees
On a shift basis, the SMPI report allows each manager to analyze their shift, reflect
on strengths and opportunities and take action to improve performance for the
next shift. Taking this action helps to improve performance from one shift to the
next. Linking the SMPI with the Performance Development System creates a
powerful tool for effective performance evaluation, improvement and
development.
The following example illustrates how the SMPI and IPP combine to improve
individual and restaurant performance. In this example the Restaurant Manager
and Assistant Manager Dana meet for Dana’s year-end performance review
discussion. One element of their discussion was focused on Dana’s SMPI results for
the year. When the Restaurant Manager and Dana reviewed her cumulative SMPI
results for the year, they identified a trend of low KVS and Service times.
As a result of their analysis and subsequent discussion, Dana wrote the following
SMART performance objectives under the QSC Driver of her IPP plan for the
following year (year-end 2008 SMPI opportunities would be used to develop
performance objectives for 2009 IPP):
QSC/
Customer
Experience
Drivers
Objective
Objective
Mystery Shop Trends- Mystery Shops are a key measure of
the customer experience. Develop a SMART objective that
will contribute to achieving the Mystery Shop target for
your restaurant.
MS Rating- Current YTD 87% Year-end Target 94%
1.
Improve D/T order to present times from 95” to 90”
or less with 85% or better cars under 90” by June
30th and Improve D/T cashier to present times from
52” to 45” or less with 85% or more cars under 45”
by June 30th.
2.
Improve KVS reaction time from 50” to 30” or less by
April 30th and 20” or less by June 30th.
© 2005 McDonald’s Corporation
December
31st
Mystery Shop
June 30th
SMPI Report
June 30th
SMPI Report
2.8
Chapter 2 Creating Your PDS Plan
Information for Employees
Additionally, from observing several of Dana’s Shifts the Restaurant Manager
determined that Dana does not delegate or communicate effectively with her
crew. For example; when Dana experiences a service bottleneck during her shift,
she will typically jump in an position herself on a work station and remain their for
extended periods instead of first reviewing her crew positioning to determine if she
has them properly positioned to optimize customer service. She avoids
communicating, delegating and providing direction to the crew as well. If Dana
would provide more effective coaching and direction, she could motivate them
and more effectively address service bottlenecks. The Restaurant Manager
discussed this observation with Dana during her year-end performance discussion.
As a result of their discussion, Dana will draft IDP performance development
objectives focused on improving her communication leadership and delegation
skills.
In addition to these performance objectives focused on Dana’s SMPI results, she
may write performance objectives for her assigned areas of responsibility i.e. labor
scheduling, crew training, PM, etc. and/or objectives relating to specific store
priorities i.e. food cost management, crew 90 day turnover, new product
implementation, etc.
© 2005 McDonald’s Corporation
2.9
Chapter 2 Creating Your PDS Plan
Information for Employees
How Employees’ Are Evaluated
Employees are evaluated by managers on two elements:
 Results achieved on performance objectives (what was done)
 Demonstration of leadership competencies (how it was done)
The overall performance rating is a weighted rating based on ratings from these
two areas. As a guideline results achieved accounts for 75% of the overall rating
and leadership competencies accounts for 25%. This guideline is used to inform
the judgment of managers; however the ultimate decision for rating is at their
discretion. Note: All performance ratings must have documented evidence to
support the rating and be approved by the managers’ manager (Operations
Consultant).
How to Calculate Ratings
Results Achieved Rating Calculations
The results achieved rating is determined based on how well the employee
accomplishes their performance objectives in the 4 business driver categories
(People, QSC, Sales and Profit). The manager evaluates and rates employee
accomplishment of each performance objective and assigns a total rating at the
end of the results achieved section of the IPP using the following criteria:
What the Ratings Mean
4 Exceptional Results
Accomplishments were significantly beyond target performance levels.
Contributions to business unit/team and department results were exceptional.
3 Significant Results
Accomplishments met and sometimes exceeded target performance levels.
All requirements and expectations of the job were fulfilled.
2 Some Improvement Required
Accomplishments met some but not all performance levels and/or basic job requirements were consistently met. Performance is unsatisfactory and improvement is required.
1 Unacceptable Results
Few performance targets were met and basic job requirements were not maintained. Performance improvement must be achieved.
The rating and manager and employee comments should be recorded on the
results achieved rating summary. In our example below, the results achieved
rating is 3 – Significant Results
Performance Objective - Results Achieved Rating - 75% of Overall Rating
End of Year Rating:
4
Exceptional Results
3
For additional details, refer to your PDS Guidebook
Significant Results
2
Some Improvement Required
1
Unacceptable Results
Mid-Year Employee Comments:
Mid-Year Manager Comments:
End of Year Employee Comments:
End of Year Manager Comments:
RESULTS ACHIEVED RATING
3
(75% 0f Overall Performance Rating)
© 2005 McDonald’s Corporation
2.10
Chapter 2 Creating Your PDS Plan
Information for Employees
(For additional detail, see the “Managers Guide to Assessing Performance” in the
Toolbox section of this guide.)
Leadership Competency Rating Calculations
To establish the leadership competency rating, the manager must review of the
behaviors under each of the 8 leadership competencies and based on
demonstrated performance by the employee, assign the appropriate rating (1 –
4) to each competency. Once the manager has assigned a rating to each
competency, he/she must total the competency ratings and divide by 8 to obtain
an average. This average represents the rating for the Leadership Competency
section.
To determine the Leadership Competency rating, the manager must complete the
following calculation:
Year-end Leadership Competency Ratings
Insert a rating (1-4) for each Leadership Competency
Year-end Leadership Competency Ratings
MidYear
Trend
Yearend
Rating
Communicates Effectively and Honestly
3
Develops Crew and Managers
2
Builds Teamwork
3
Influences by Example
2
Puts the Customer First
3
Organizes the Work
3
Supports Change
3
Plans Beyond the Shift
3
Total
22
2.75
Average Rating (Above total divided by 8)
The Leadership Competency rating for this employee in this example is 2.75 and
represents 25% of the overall performance rating.
© 2005 McDonald’s Corporation
2.11
Chapter 2 Creating Your PDS Plan
Information for Employees
Overall Performance Rating Calculation
Once the manager has determined both the results achieved and leadership
competency ratings, he/she can move forward with calculating the overall
performance rating. The overall performance rating consists of a weighted rating
of 75% for results achieved and 25% for leadership competency. In our example,
the ratings for the two sections were as follows:


Results Achieved = 3
Leadership Competencies = 2.75
To determine the Overall Performance rating, the manager must perform the
following calculation:
Weighted Rating
Results
Achieved
Rating 3 x 75%
2.25
+
Leadership
Competency
Rating 2.75 x
25%
.69
=
Overall
Performance
Rating
2.94
The overall performance rating for this employee is 2.94 or a significant performer
based on the established performance criteria below.
Overall Performance Level
Overall performance rating takes into account results achieved on objectives and shift performance (75%) and performance on leadership
competencies (25%).
4 Exceptional Performance
The employee achieved results that far exceeded expectations and requirements of the job, while modeling the Competencies expected of McDonald’s employees. The employee’s performance was
always of exceptional quality. This rating is reserved for employees who have exhibited exceptional performance while meeting challenging demands.
3 Significant Performance
The employee achieved results that consistently met or occasionally exceeded expectations and planned objectives. This rating describes employees who successfully do their jobs and meet high
performance standards while at the same time demonstrating McDonald’s Competencies. (Note: This rating should also be used for employees who are new in their jobs and who are progressing as
expected.)
2 Some Improvement Required
Improvement is required as the employee’s performance was varied, and his or her ability to meet expectations and accomplish planned objectives was inconsistent. This rating should be used for
employees who achieved results but did so by demonstrating behaviors that are not consistent with McDonald’s Competencies. Employees in this rating category should be placed on an accelerated
review cycle with a Performance Improvement Plan to improve performance.
1 Unacceptable Performance
The employee’s performance was unacceptable and needs immediate improvement. Expected results were not attained and planned objectives were not achieved. This rating also pertains to employees
who achieved results but did so in a manner that is clearly in violation of the Competencies that are expected of McDonald’s employees. An employee in this category should be on a Performance
Improvement Plan, and must meet the objectives of the plan to remain in current position. In some cases, termination without going through a Performance Improvement Plan may be appropriate.
Overall Performance Level Rating: 2.94 - Significant
1.0-1.49
1.5-2.49
2.5-3.49
3.5-4.0
Rating Guideline
Unacceptable
Some Improvement Required
Significant
Exceptional
For additional evaluation considerations and tips, see the “Managers Guide to
Assessing Performance” in the Toolbox section of this guide.
© 2005 McDonald’s Corporation
2.12
Chapter 2 Creating Your PDS Plan
Information for Employees
Getting Started
To begin the process, complete the following steps.
Step 1: Locate the IPP for your position and complete the information at the top
of the form (e.g., Name)
Step 2: Familiarize yourself with the business targets, performance objective
categories and leadership behaviors expected for your position.
Step 3: Consider what areas of focus will be most important for success in the
coming year.
Step 4: Begin the process by meeting with your manager.

See “How it Works” section of this guide.
© 2005 McDonald’s Corporation
2.13
Chapter 2 Creating Your PDS Plan
Information for Employees
INDIVIDUAL DEVELOPMENT PLAN – IDP
The Individual Development Plan (IDP) should be used to establish a detailed development plan
to improve performance in your current job, or to determine targeted objectives to gain skills and
knowledge for future positions.
As a starting point, you should meet with your manager to discuss your short-term and
long-term career goals, and competencies that are important for your current and future
jobs. You and your manager should discuss and evaluate your performance on these key
competencies and establish development goals that will help you gain skills and
knowledge to improve performance on each targeted competency. The development
goals can focus on strengthening leadership competencies or operations competencies.
IDP PLAN DEVELOPMENT ACTIONS:
1. Establish short-term and long-term career goals –
 On the IDP form write a statement that captures your 1-3 year career goals.
2. Meet with your manager to determine and agree on development opportunities and
goals –
 Discuss and identify development opportunities and goals to improve
performance in your existing job and to acquire skills and knowledge needed for
future jobs. You should ask and answer the following questions at a minimum:
i. What leadership and job competencies do you need to improve on to
achieve high performance in your current job?
ii. What skills and knowledge do you need to acquire or improve to achieve
your 1 – 3 year career goals (Future Jobs)?
iii. What are the top 1-3 development opportunities/goals to focus on for the
year?
iv. What actions, resources or commitment is required to achieve
development goals?
3. Write development goals –
 Write specific development goals improve performance in your current job or to
acquire/improve skills and knowledge for future positions.
 Write a brief statement that describes how each development goal will make you
more effective in current or future jobs.
 Write specific success measures for each development goal.
 Determine and write specific action steps required to achieve each development
goal. Completion dates, and resources/commitment needed for each action step
should be included on the form.
Completion of your individual development plan and development discussion with your
manager can occur during the same time frame as your performance review, or at a
different time. Talk with your manager about what will work best for your review cycle.
On the next page you will find a resource that will help you to create an effective
Individual Development Plan.
© 2005 McDonald’s Corporation
2.14
Chapter 2 Creating Your PDS Plan
Information for Employees
NOTE: Managers may choose to list Individual development goals/actions as performance
objectives under the “People Drivers” section on page 2 of the IPP form, or use the
Individual Development Plan to create a more comprehensive development plan.
Creating a Strong IDP
The purpose of this document is to help you find your focus in creating a robust
individual development plan (IDP). It is organized by a series of questions and
considerations, all of which are important in crafting a strong IDP. Use this
document when creating or revising your IDP.
Directions: As you read each section below, reflect on your current IDP if you have
one. If you answer no to 3 or more of the statements under any given section, use
that section as your starting point to update your development plan.
Section 1: What is your situation?

Do your development goals fit the current job situation and the
restaurant/business situation?
 Yes/No: Your IDP focuses on development needed for your current situation (e.g.,
you are new in position, improved results are needed, there is a change in your
responsibilities or scope, etc.)
 Yes/No: Your developmental goals leverage the current restaurant or business
challenges & opportunities to help you grow & learn.
 Yes/No: Your development actions help you build or strengthen key business
relationships.
Section 2: What are your development needs?

Is your IDP connected to your individual development needs and career
goals?
 Yes/No: Your development goals are connected to your long-term career goals,
assessments or feedback received, and your overall performance feedback.
 Yes/No: Your IDP focuses on preparation for your next role if a move is likely in the
next few years.
 Yes/No: If you do not have a long-term career development plan, your IDP

includes steps to create one (i.e., Career Development workshop; job shadow
senior managers or others; or actions to know yourself, know your options, create
your plans, etc.).
 Yes/No: If you have not received significant feedback from others about your
development needs or career aspirations, your plan includes actions to get that
feedback.
Yes/No: Your development actions help you build your network.
© 2005 McDonald’s Corporation
2.15
Chapter 2 Creating Your PDS Plan
Information for Employees
Section 3: Do you have the motivation?

Do you have the motivation & support needed to succeed?
 Yes/No: You are excited or motivated to achieve your development goals.
 Yes/No: You can clearly articulate your development plan and the rationale
behind it.
 Yes/No: You can clearly see how achieving these goals will help you move toward
your longer term career goals.
 Yes/No: Your manager is supportive of your development goals and actions.
 Yes/No: Others, who will play a role in your development, are committed to the
specific actions you need from them. They will help hold you accountable to your
plan.
 Yes/No: Sufficient resources (time, budget, mentors. etc.) are available to support
your plans.
Section 4: Do you have a variety of learning & development methods?

Does your plan incorporate a variety of learning & development methods,
emphasizing on the job activities?
 Yes/No: Your IDP includes multiple types of formal and informal learning methods,
such as:
o Stretch assignments, projects, research (with guidance/feedback as
needed)
o Joining or leading a project team or task force
o Gathering feedback
o Community, volunteer, or civic activities
o Shadowing, informational interviewing, observing people or processes
o Reading, book club, book discussion
o Mentoring (giving or receiving)
o External programs, professional or trade associations, external networking
o Formal training or educational programs
 Yes/No: Your IDP contains development activities that fit your learning style.
Section 5: Do you have SMART goals?

Are your development goals SMART?
 Yes/No: Specific. Your development goals are specific, clear and concrete, and
have supporting action steps.
 Yes/No: Measurable. Your development goals include how you will measure
success, or assess what has changed.
 Yes/No: Actionable. Your development goals are clearly spelled out, and you
know how to begin.
 Yes/No: Relevant. Your development goals fit your career plans, business situation,
and development needs.
 Yes/No: Time bound. Your development goals have completion dates included,
and at least one IDP review and update is planned.
© 2005 McDonald’s Corporation
2.16
MOS PDS Guidebook
Restaurant Performance
Development System
PDS Guidebook Toolbox
Managers’ Guide to Assessing Employees’ Performance
The overall performance rating is based on both the results achieved against individual
performance objectives and scorecard targets and the leadership competencies ratings.
As a manager you make the final decision about what overall performance rating to assign. Your
decision should be informed by, but not automatically dictated by the weights of 75 percent for
results achieved and 25 percent for leadership competencies. You should have evidence to
support your ratings
Results Achieved Against Business Targets, Performance Objectives – 75% of Overall Performance
When developing a preliminary results achieved rating, for performance objectives, evaluate
the employee’s accomplishments against the established measures.
Rating Scale for Results Achieved
R
What the Ratings Mean
4 Exceptional Results
Accomplishments were significantly beyond target performance levels.
Contributions to business unit/team and department results were exceptional.
3 Significant Results
Accomplishments met and sometimes exceeded target performance levels.
All requirements and expectations of the job were fulfilled.
2 Some Improvement Required
Accomplishments met some but not all target levels and/or basic job requirements
were not consistently met. Performance is unsatisfactory and improvement is
required.
1 Unacceptable Results
Few objectives were met and basic job requirements were not maintained.
Performance improvement
must be achieved.
In making your decision, first consider where the individual’s performance results’ fall in terms
of the range for the results achieved scale. Next, use the following guidelines to assign a
rating (1-4) that best represent the results achieved by the individual in the given time period.
• Quality of work—the quality of services or work delivered in terms of accuracy,
thoroughness, and appropriateness.
• Timeliness of delivery and output—the timely delivery of services or work product in terms
of schedules, deadlines, and targets.
• Productivity—the quantity or amount of work produced personally on assignments, tasks,
projects, products, or services.
• Use of resources—the efficient use of time, money, materials, and people to deliver the
services or work product.
•
Value added—the degree to which the services or work produced meet or exceed the
expectations of internal and external customers.
In the United States, and elsewhere to the extent permitted by national law:
17
McDonald’s reserves the right to amend or modify the policies and procedures described in this guide at any time without prior notice. The information and processes contained in this guide do not create any contractual obligation between McDonald’s and its
employees. At McDonald’s, employment is at will. This means that employees are free to terminate their employment at any time, for any reason, and McDonald’s reserves the same right. The president of McDonald’s is the only person who may make an exception to
this, and it must be in writing and signed by the president.
In countries where the above is inapplicable, McDonald's reserves the right to amend or modify the policies and procedures described in this guide to the maximum extent and under the conditions permitted by law. McDonald's relationship with its employees in a
particular country, including but not limited to the creation, terms and termination of that relationship, are governed by the law of that country. It is not the intention of this guide, nor shall it be deemed, to create any additional contractual obligations between McDonald's
and its employees unless such is required by National law.
MOS PDS Guidebook
In the United States, and elsewhere to the extent permitted by national law:
Restaurant Performance
Development System
18
McDonald’s reserves the right to amend or modify the policies and procedures described in this guide at any time without prior notice. The information and processes contained in this guide do not create any contractual obligation between McDonald’s and its
employees. At McDonald’s, employment is at will. This means that employees are free to terminate their employment at any time, for any reason, and McDonald’s reserves the same right. The president of McDonald’s is the only person who may make an exception to
this, and it must be in writing and signed by the president.
In countries where the above is inapplicable, McDonald's reserves the right to amend or modify the policies and procedures described in this guide to the maximum extent and under the conditions permitted by law. McDonald's relationship with its employees in a
particular country, including but not limited to the creation, terms and termination of that relationship, are governed by the law of that country. It is not the intention of this guide, nor shall it be deemed, to create any additional contractual obligations between McDonald's
and its employees unless such is required by National law.
Restaurant Performance
Development System
MOS PDS Guidebook
Leadership Competencies – 25% of overall performance
Use the following ratings when assessing how well an employee displayed each category of
leadership competencies.
Instructions
Competency Rating Key
a) Read the expected behaviors for each
Leadership Competency.
b) Consider how well the employee fits the
definition and demonstrates the expected
behaviors, and where the employee may be
able to improve.
c) If an expected behavior doesn’t apply to a
specific position, do not consider it when
determining a rating for the Leadership
Competency.
d) Record comments for each Leadership
Competency and assign a rating
4 Exceptional Demonstration
Demonstrated the expected behaviors in an extremely effective and consistent manner. This
employee is considered a role model of this Leadership Competency.
3 Significant Demonstration
Demonstrated the expected behaviors for this Leadership Competency in a consistent and effective
manner.
2 Some Improvement Required
Did not consistently and/or effectively demonstrate some of the expected behaviors for this Leadership
Competency.
1 Unacceptable Demonstration
Demonstration of the expected behaviors for this Leadership Competency was unacceptable and
needs immediate improvement. Behavior was in clear violation of one or more of the expected
behaviors.
For each leadership competency, consider the following:
•
What specific examples support your assessment
•
What are your expectations about the employee’s performance based on the employee’s tenure in
his or her position
•
Is there a need for development in a particular competency?
•
Can an individual improve their performance by improving a particular competency?
Process Notes
1. If an individual hasn’t had an opportunity to exhibit a specific behavior, you should not factor the
behavior into the overall rating for that leadership competency. Also, if an expected behavior
does not apply to a specific position, it should not be used to determine the leadership
competency rating.
2. Managers should solicit feedback from others, including peers and subordinates, with whom the
employee interacts.
3. As you consider the expected behaviors for each leadership competency, it’s important to think in
terms of the current performance period rather than what has happened in the past. However, if
there has been a consistent pattern of deficiency in exhibiting a given behavior over time, and
especially if this has been addressed with the individual in the past, this should weigh more heavily
in the rating for the overall leadership competency category.
In the United States, and elsewhere to the extent permitted by national law:
19
McDonald’s reserves the right to amend or modify the policies and procedures described in this guide at any time without prior notice. The information and processes contained in this guide do not create any contractual obligation between McDonald’s and its
employees. At McDonald’s, employment is at will. This means that employees are free to terminate their employment at any time, for any reason, and McDonald’s reserves the same right. The president of McDonald’s is the only person who may make an exception to
this, and it must be in writing and signed by the president.
In countries where the above is inapplicable, McDonald's reserves the right to amend or modify the policies and procedures described in this guide to the maximum extent and under the conditions permitted by law. McDonald's relationship with its employees in a
particular country, including but not limited to the creation, terms and termination of that relationship, are governed by the law of that country. It is not the intention of this guide, nor shall it be deemed, to create any additional contractual obligations between McDonald's
and its employees unless such is required by National law.
Restaurant Performance
Development System
MOS PDS Guidebook
Overall Performance Rating
The following ratings are used to describe the employee’s overall performance level. The overall
performance rating for individuals is based on both the results achieved against business targets,
performance objectives and the leadership competencies ratings.
Overall Performance
Performance
Level
Definition
Characteristics of Person Performing at this Level
4
Exceptional
Performance
The employee achieved results that far exceeded expectations and
requirements of the job, while modeling the leadership competencies
expected of McDonald’s employees. The employee’s performance
was always of exceptional quality. This rating is reserved for employees
who have exhibited exceptional performance while meeting
challenging demands.
“Exceptional performers achieve ‘best in class’ results for
themselves while simultaneously improving the performance of the
people that surround them.
Note: You must be able to document the exceptional results versus
the defined business objectives and/or describe an event that
occurred which added work beyond normal expectations.
What results did this individual accomplish that were well beyond the
normal job expectations or objectives that were set for the year?
3
Significant
Performance
The employee achieved results that consistently met or occasionally
exceeded expectations and planned objectives. This rating describes
employees who successfully do their jobs and meet high performance
standards while at the same time demonstrating McDonald’s
leadership competencies. (Note: This rating should also be used for
employees who are new in their jobs and who are progressing as
expected.)
If you asked the person’s manager, manager’s manager, internal
clients, peers, best-performing subordinates, work-performing
subordinates, they would all agree that the person achieves
fantastic results while modeling the behaviors (leadership
competencies) that drive high performance of others” (Harold
Reynolds, SVP of Organizational Effectiveness).
Below are some questions to ask yourself when you are considering
whether or not a direct report should be rated an Exceptional
Performance.
•
•
•
•
-
Are accomplishments at a significantly higher level than
normally expected for the job?
-
Does this employee continuously improve himself/herself,
others, and his/her work?
-
Does this employee exhibit McDonald’s leadership
competencies with no major gaps?
-
Would those who surround this employee (peers, direct
reports, his/her manager’s manager, customers) agree
that he/she is an Exceptional Performer?
Performs well and contributes to the restaurant
Consistently gets the job done in the right way
Is competent in job skills
Has no significant performance issues with any of the leadership
competencies
Note: This describes the majority
of employees.
2
Some
Improvement
Required
Improvement is required as the employee’s performance was varied,
and his or her ability to meet expectations and accomplish planned
objectives was inconsistent. This rating should be used for employees
who achieved results but did so by demonstrating behaviors that are
not consistent with the leadership competencies expected of
McDonald's employees.
• Does not meet some of his/her target performance levels or
achieve defined goals
• Meets expectations on his/her goals but does not display some
of McDonald’s leadership competencies
Note: Employees with a Some Improvement Required rating require
specific performance improvement plans and should be placed on
an accelerated review cycle.
1
Unacceptable
Performance
The employee’s performance was unacceptable and needs
immediate improvement. Expected results were not attained and
planned objectives were not achieved. This rating also pertains to
employees who achieved results but did so in a manner that is clearly
in violation of the leadership competencies that are expected of
McDonald’s employees. An employee in this category should be on a
Performance Improvement Plan, and must meet the objectives of the
plan to remain in current position. In some cases, termination without
going through a Performance Improvement Plan may be appropriate.
• Does not meet target performance levels or achieve defined
goals
• Does not display McDonald’s leadership competencies
• Does not contribute to the organization in an impactful way
Employees in this rating category should be placed on an
accelerated review cycle with a Performance Improvement Plan to
improve performance.
In the United States, and elsewhere to the extent permitted by national law:
20
McDonald’s reserves the right to amend or modify the policies and procedures described in this guide at any time without prior notice. The information and processes contained in this guide do not create any contractual obligation between McDonald’s and its
employees. At McDonald’s, employment is at will. This means that employees are free to terminate their employment at any time, for any reason, and McDonald’s reserves the same right. The president of McDonald’s is the only person who may make an exception to
this, and it must be in writing and signed by the president.
In countries where the above is inapplicable, McDonald's reserves the right to amend or modify the policies and procedures described in this guide to the maximum extent and under the conditions permitted by law. McDonald's relationship with its employees in a
particular country, including but not limited to the creation, terms and termination of that relationship, are governed by the law of that country. It is not the intention of this guide, nor shall it be deemed, to create any additional contractual obligations between McDonald's
and its employees unless such is required by National law.
Restaurant Performance
Development System
MOS PDS Guidebook
Expected Distribution Guidelines
McDonald’s expected distribution guidelines indicate the percentage of employees that
should fall within each level of the overall performance rating scale.
The expectation is that approximately 20% of employees will fall in the Exceptional
Performance category, approximately 70% will fall in the Significant Performance category,
and about 10% will be in the Some Improvement Required and Unacceptable Performance
categories combined.
Some
Improvement/
Unacceptable
Performance
10%
Exceptional
Performance
20%
Significant
Performance
70%
These guidelines represent a realistic distribution of performance ratings when challenging,
measurable objectives have been established. Managers should make a strong effort to
approximate the expected distribution in their ratings by being candid in their employee
assessments and subsequent ratings.
Process Note
If managers are effectively assessing performance, the expected distribution guidelines
should be seen in groups of 30 people or more.
At the store level, the distribution is less likely to occur. You may have more or fewer in the top or
bottom rating categories.
In the United States, and elsewhere to the extent permitted by national law:
21
McDonald’s reserves the right to amend or modify the policies and procedures described in this guide at any time without prior notice. The information and processes contained in this guide do not create any contractual obligation between McDonald’s and its
employees. At McDonald’s, employment is at will. This means that employees are free to terminate their employment at any time, for any reason, and McDonald’s reserves the same right. The president of McDonald’s is the only person who may make an exception to
this, and it must be in writing and signed by the president.
In countries where the above is inapplicable, McDonald's reserves the right to amend or modify the policies and procedures described in this guide to the maximum extent and under the conditions permitted by law. McDonald's relationship with its employees in a
particular country, including but not limited to the creation, terms and termination of that relationship, are governed by the law of that country. It is not the intention of this guide, nor shall it be deemed, to create any additional contractual obligations between McDonald's
and its employees unless such is required by National law.
MOS PDS Guidebook
Restaurant Performance
Development System
Handling Underperformance
Some of your employees may fall into the Some Improvement Required or Unacceptable
Performance categories. For these employees, identify possible causes and determine a course of
action using the following guidelines and your in consultation with your Operations Consultant,
Owner/Operator and Human Resources representative if applicable.
In some situations, you may choose to create a performance improvement plan. Other cases may
require immediate termination of the employee.
In deciding the course of action to follow, consider the employee’s commitment to improving his
or her performance, whether or not the employee has received a low performance rating
previously, the level of the employee, and the needs of the business.
A performance improvement plan is a short-term plan to help employees raise their performance
to an acceptable level. Depending on the country, employees generally have a specified
number of days to bring their performance up to a consistently acceptable level.
This can vary depending on the employee’s job level, instances of repeated
underperformance, country legislation, and other factors.
In the United States, and elsewhere to the extent permitted by national law:
22
McDonald’s reserves the right to amend or modify the policies and procedures described in this guide at any time without prior notice. The information and processes contained in this guide do not create any contractual obligation between McDonald’s and its
employees. At McDonald’s, employment is at will. This means that employees are free to terminate their employment at any time, for any reason, and McDonald’s reserves the same right. The president of McDonald’s is the only person who may make an exception
to this, and it must be in writing and signed by the president.
In countries where the above is inapplicable, McDonald's reserves the right to amend or modify the policies and procedures described in this guide to the maximum extent and under the conditions permitted by law. McDonald's relationship with its employees in a
particular country, including but not limited to the creation, terms and termination of that relationship, are governed by the law of that country. It is not the intention of this guide, nor shall it be deemed, to create any additional contractual obligations between
McDonald's and its employees unless such is required by National law.
MOS PDS Guidebook
Restaurant Performance
Development System
SMART Objectives
SMART objectives allow the employee and manager to establish a tangible measurement of
accomplishment for each performance objective. A well written objective must be SMART
What is a SMART Objective?
A SMART objective is an objective that is: (Specific, Measurable, Attainable, Relevant, Time-bound):
Specific: Being specific helps everyone, including you, understand what you will need to accomplish.
For example: I will train three additional grill closers on the weekend shift to be verified by the 27th of
March.
Measurable: Measures help you to know when the objective has been met. Measures can be
numeric or descriptive; they can define quantity, quality, or cost.
When you are specific, you should be able to measure your results. In the above example, you will
know you have achieved your objective on March 27th if you have three grill closers complete SOCs
at 100%.
Attainable: The objective must be within your power to accomplish, or if it is something that more than one
person must work on, everyone must know about it and be committed to achieving the objective. You
should not make commitments for others who might be unable to carry out the work.
Relevant: The objective should identify actions that are important to the customer, restaurant,
region/division and/or country.
Time Bound: The time frame you assign an objective should also be reasonable and within your power to
achieve.
SMART objectives help you focus on what you need to accomplish in a way that ensures success.
In the United States, and elsewhere to the extent permitted by national law:
23
McDonald’s reserves the right to amend or modify the policies and procedures described in this guide at any time without prior notice. The information and processes contained in this guide do not create any contractual obligation between McDonald’s and its
employees. At McDonald’s, employment is at will. This means that employees are free to terminate their employment at any time, for any reason, and McDonald’s reserves the same right. The president of McDonald’s is the only person who may make an exception
to this, and it must be in writing and signed by the president.
In countries where the above is inapplicable, McDonald's reserves the right to amend or modify the policies and procedures described in this guide to the maximum extent and under the conditions permitted by law. McDonald's relationship with its employees in a
particular country, including but not limited to the creation, terms and termination of that relationship, are governed by the law of that country. It is not the intention of this guide, nor shall it be deemed, to create any additional contractual obligations between
McDonald's and its employees unless such is required by National law.
MOS PDS Guidebook
Restaurant Performance
Development System
IPP FORMS
In the United States, and elsewhere to the extent permitted by national law:
24
McDonald’s reserves the right to amend or modify the policies and procedures described in this guide at any time without prior notice. The information and processes contained in this guide do not create any contractual obligation between McDonald’s and its
employees. At McDonald’s, employment is at will. This means that employees are free to terminate their employment at any time, for any reason, and McDonald’s reserves the same right. The president of McDonald’s is the only person who may make an exception
to this, and it must be in writing and signed by the president.
In countries where the above is inapplicable, McDonald's reserves the right to amend or modify the policies and procedures described in this guide to the maximum extent and under the conditions permitted by law. McDonald's relationship with its employees in a
particular country, including but not limited to the creation, terms and termination of that relationship, are governed by the law of that country. It is not the intention of this guide, nor shall it be deemed, to create any additional contractual obligations between
McDonald's and its employees unless such is required by National law.