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This is actually a real thing. I worked at a consulting company partnered with McDonald's and they asked if we could help them optimize the number of sesame see
by twelfthnight 3y ago
This is actually a real thing. I worked at a consulting company partnered with McDonald's and they asked if we could help them optimize the number of sesame seeds on their burger buns.
- skippyboxedhero 3y agoAlso raises the question: why does an executive need a consulting company to tell them to put less seeds on the bun? We can accept that "optimize" does not mean more...so...?
- s1artibartfast 3y agoThe question makes perfect sense to me. I don't know the ideal number of seeds on a bun off hand, and don't expect the executive does either. Do you know it?
- skippyboxedhero 3y agoWhy would me knowing it matter? So shareholders are paying for the exec, and they are paying for the consultant who is doing the exec's job? If you work as an exec at MCD, working this out is the kind of thing that you should know. It is the reason why you are being paid money to be there.
- s1artibartfast 3y agoThe exec does know how to work it out: You hire a consultant to give you an answer. The job of the executive isn't to know the answer to every question. Their job is to make sure questions get answered. There are an infinite number of ways you can do this and hiring a consultant is a valid option.
- skippyboxedhero 3y agoAs I said, the job is not to know the answer to the question but to work out how. If you are hiring someone from the outside, you are outsourcing basic functions. If his job is as simple as hiring consultants, why do you need to pay someone $1m+/year to hire a consultant. Just hire a guy on $10k/year who tells you to hire a consultant. It isn't a valid option. This is one of the reasons why most corporations are poorly managed (right now, I would guess that there are maybe 10 CEOs of US listed companies who will go down as great CEOs...that is being optimistic, almost every CEO is paid like they are a star). Their "thinking" is outsourced to someone hiring a bunch of grads with no experience, that is what consultants are...it is like advertising, churn and burn grads. A key part of making better decisions is taking those decisions yourself and learning from the outcomes. But the way things happen now, all of the experience is gone and it is just a revolving treadmill of people who move through jobs too quickly to ever see the result of what they did or take responsibility for it. Hiring consultants is an indication that the company lacks executives with the capacity to perform their function correctly (unfortunately, this is the case at most companies now).
- s1artibartfast 3y agoI think you're starting from the conclusion you want CEO is bad and reverse engineering a justification along with making up supporting facts. I hire consultants and outsource activities all the time. It isn't all I do but a key part of it. There's no chance you'd find someone to do my job for 10K a year. There is no chance I would want to hire dozens of employees each time I have a rare off question. Your example and position make no sense: hiring an outside group is always wrong and hiring inside team is always right. I don't learn anything different either way. You call it a basic function, but what if I wont want to indefinitely keep a team on staff to answer seed questions?
- fbdab103 3y agoI think consulting company could just mean someone to do market research. Produce buns with 200, 100, 50 seeds and do consumer surveys. Find that sweet spot before people start doubting the value proposition. Edit: Any idiot can build a burger that people like, but it takes an engineer to build a burger that is just tolerable.
- toomuchtodo 3y agoBecause if they're wrong, it's the consulting company's fault, not the executive's. It is accountability laundering with a budget.
- skippyboxedhero 3y agoYes, I asked the question facetiously...I worked in equity research for consumer products companies, and you see this (alarmingly) at good and bad companies. "We did X, it went very badly...don't worry, we have fired the consultant who was responsible"...the question you want to ask (but cannot) is then: why I am paying the salary for the monkey, not the organ-grinder? The worst part is that I have seen this at companies that are doing well, you just have to accept the fact that you are getting pickpocketed by a bunch of idiots who control the money printer.
- toomuchtodo 3y agoThe sarcasm did not come through, my apologies!
- skippyboxedhero 3y agoIt wasn't sarcasm, it was just being humorous...and, indeed, I have replies saying how ridiculous it is to expect executives to be able to run a company. The sarcasm wouldn't have been detected because the reality is that this kind of thinking has become embedded in US corporate culture: reward with no responsibility.
- s1artibartfast 3y agoI don't think that's true at all. If you're a shareholder you're not happy with an exact that gets wrong answers. If that's why the answer is wrong, having paid a consultant is still a better answer than we didn't try and simply guessed.
- fbdab103 3y agoNow I wish I could see a timelapse segment of McDonald's burgers over the years to watch the progressive loss of sesame seeds. Similarly, I believe Oreos have been optimized to death. A current Double Stuff is actually smaller than the original regular Stuff.