ORLANDO – David Novak doesn't necessarily believe in the adage that the customer comes first. Instead, he believes that companies need to put their employees first.
"The formula for success is to put your people first," the CEO of Yum! Brands told a crowd of HR professionals Tuesday in the opening keynote address at the HCI Human Capital Summit in Orlando.
"What's wrong in so many businesses is they start out thinking about how to make money but they don't think about how to get there," he said.
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Getting there is simple, he said: If you make sure your company's employees are happy, they'll make sure the customers are happy. And, in turn, your company will make money.
"This is the stuff that creates results," he said.
Novak should know: In his role at Yum! Brands, Novak leads 1.5 million employees who work in tens of thousands of KFC, Taco Bell and Pizza Hut locations nationwide.
He's so confident in his leadership lessons that he teaches a course several times a year. He also outlines the formula in his book, "Taking People With You."
His key takeaway to making employees happy? Recognize them.
"People want to be appreciated. Without recognition, there's no employee morale."
"It's such a big calling you have," he told HR professionals, "to make people feel valued."
Key leadership lessons he shared include:
Make recognition fun. Novak likes to take a different approach from the usual "let's give one employee a plaque once a year."
As president of KFC, Novak found a fun way to recognize people: with a silly, rubber chicken. When he wanted to recognize an employee, Novak gave them a signed, numbered chicken along with a $100 bonus. He would also take a picture with the recognized employee and put it in his own office.
"I've given away 1,300 awards in 15 years," he said. "In my office I have pictures of the people we've recognized. When they come into my office they see what we are about: it's all about people."
Don't be too proud to use others' ideas — including those from other companies. "Some of our best ideas came from outside the company," he said. "Celebrate other people's ideas more than your own. It doesn't mean you don't have ideas of your own but you need to create an environment where people can come to you with ideas."
Be self-aware. Self-awareness is key, Novak said, as it helps you grow. "You have to know yourself before you can become a great leader," he said. "Have an open mind about how others see you and the best way to find out is to ask. Make yourself vulnerable so you can really know."
Share information with your team. "Make sure everyone is on the same page. Tell it like it is. What's our brand reality? What's the financial reality? What are our customers saying? I share all of that with my team. And then I say: What would you do? And I tell you what, that's powerful. If you don't take the time to make people involved, they won't be committed."
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