MOD Pizza: A winning Recipe?

Key issues..

• How to scale a culture, which is often more complex than scaling a

company’s physical footprint

• It forced us to think can an organisation be both for –profit and also

seek to achieve a social goal, particularly when the social goal's
benefit to the business is hard to quantify in terms of financial returns
or other metrics.
• How are Scott and Ally creating value at MOD Pizza?
• What are the competitive advantages of MOD Pizza?
• What challenges MOD Pizza face? Develop an action plan
Culture
• Employee centric
• No formal dress
• No rule book
• Tailor-made service
• Employees can give away free products to customers
Balancing empowerment with control system
 Belief Boundary
Core Risks to be Systems
Systems avoided
Values

Business
Strategy

Critical
Strategic
Performance Diagnostic
Interactive Uncertainties Variables Control
Control
Systems
Systems
Diagnostic Control

• Goal setting
• Constant monitoring
• Connected to reward
Belief Systems

• Companies have used beliefs systems for years in an effort to articulate the
values and direction that senior managers want their employees to embrace

• Typically, belief systems are concise , value-laden and inspirational

• How the organization creates value (Best customer service in the world), the
level of performance the organization strives for (pursuit of excellence), and
how individuals are expected to manage both internal and external
relationships(respect for the individual)
Boundary Systems

• Ask yourself the question, if I want my employees to be

creative , am I better off telling them what to do or telling
them what not to do?

• Telling people what to do by establishing standard operating

procedures and rule books discourages the initiatives and
creativity unleashed by empowered employees

• Telling them what not to do allows innovation, but within

clearly defined limits.
Interactive Control

• Interactive control systems focus on constantly changing information that senior managers consider
potentially strategic
Model

Service-profit chain theory

• Employees -> Customers -> Shareholders/owners
Nadler & Tushman’s Congruence Model
• Strategy
• Structure
• Hierarchy
• Dispersion
• Critical Task
• Culture
• Organisational Systems/ Processes
• Hiring
• Performance Management
• Training & Development
Larry E Greiner’s
“Five phases of growth”