Strategy: Martin launched what he called the "four-by-four strategy," a bold plan that meant increasing the number of achieving companywide sales of $4 billion by the end of 1991. To accomplish this there had to be a key change in corporate thinking. The company had to understand it was not competing with other Mexican restaurants, but rather fast-food in general. This meant going head-to-head with well-established fast-food restaurants like McDonalds. To accomplish this, the mindset and capabilities of the company had to be changed.
1983 – 1988: The Company set about modernizing the company’s physical units. This included remodeling existing restaurants, increasing seating ...view middle of the document...
They expanded their signature brand of retail products through Taco Bell New Concepts, Taco Bell Supermarket Retail, and Taco Bell International. The company also developed a concept of shared resources partnering with other companies to enhance their products and product offerings.
Shared value: The culture of the company was to embrace continuous and intelligent change. It evolved into a learning organization: not top down, not bottom up, but side to side. The culture changed to one that allowed for the institutionalization of employee self-sufficiency. Customer value was the driving force of change within the organization. This was accomplished through enhanced and more efficient communications throughout the organization. By understanding that the company had to learn faster than its competitors Taco Bell gained a competitive position in the industry. The company created a culture of embracing continuous and intelligent change.
Structure: To cut costs and increase speed of delivery the company created and fast and flat organizational structure. The role of the restaurant manager was changed to that of a general manager, giving them more decision-making authority and more accountability for restaurant performance. The role of District Manager was changed to that of a Marketing Manager forcing them to manage by exception and change their approach from policeman to that of a coach. Team Managed Units were implemented and sufficiently trained to manage a store without a full-time on-site manager with the intent of the crew members performing the day-to-day tasks of a general manager. This permitted the general manager to manage multiple POAs.
Style: There was a change in the leadership approach that allowed managers and employees to make decisions for their stores. Management by exception was the norm. Only significant deviations from budgeting and planning were brought to the attention of management allowing them to focus only on areas that really needed attention. Managers were given a larger span of control by increasing the number of stores they were responsible for. There was side-to-side interaction that focused on cooperation.
Staffing: The hiring process was revised to include life themes testing and personal interviews prior to hiring. They sought out sales and product managers with Fortune 500 experience. They opted to hire managers who were graduates from top MBA programs. The training of staff was focused on leadership, conflict management, skill management, communication, technology, finance, adapting to change, and coaching. Compensation was revamped to attract and keep a higher caliber of management personnel. The company also made cuts and changes when necessary.