When the hedge fund Starboard Value took over the board of Darden Restaurants, the parent company of Olive Garden, Starboard’s CEO and Chairman Jeff Smith got to work.
He waited tables and worked in the kitchen.
All of Starboard’s new directors sitting on Darden’s board were required to do the same. They not only worked side by side with front line employees, but they also asked Darden employees for their ideas, inquired about the challenges they faced, and then took their responses seriously.
Starboard Value’s leadership team displayed the wisdom and respect that employees treasure in their leaders.
The new board members demonstrated to employees they realized that, despite their tremendous intelligence and business savvy, they could not know the day-to-day realities and requirements of front line employees’ work. They understood that without direct contact, they could not truly appreciate the challenges employees faced or the customer experience they delivered.
The new board showed that they understood and respected the invaluable insights that front line employees can provide when asked.
When leaders sincerely seek to understand the front line employee experience, they communicate:
By getting in the trenches with employees, Darden’s new board members were able to see and hear things that helped shape their strategy:
“We felt we could not make the decisions without knowing what was happening in the restaurants,” noted Starboard Value’s CEO and Chairman Jeff Smith.
Their genuine interest in what employees had to say led to a significant contribution to their menu refresh: two new sandwiches made with the Olive Garden’s famous breadsticks. This idea came from a store manager who shared with the chain’s executive chef that using breadsticks as buns was something his staff did when they were making their own meals.
The benefit gained from soliciting employee input is not limited to improving strategy. Getting in the trenches with employees didn’t just provide Darden’s new board members with insights that shaped their strategy and execution.
Doing this also facilitated important relationship and trust building with employees. Because of The Speed of Trust factor, described by Steven M.R. Covey, this investment will no doubt help them execute the new strategy more quickly and effectively.
Whether you are formulating a new strategic initiative or simply seeking to boost employee engagement and productivity, here’s how you can borrow from Starboard Value’s Olive Garden turn-around strategy:
At the risk of stating the obvious, the only way this will make a difference, is if you do all six steps, and not stop at Step No. 3. Omitting Steps 4-6 will only breed cynicism and greater disengagement.
If you do all six steps well, it could be a game-changer.