John Lee Hancock | 2016 | The Weinstein Company
★★★★☆ Governance Insight Rating
Executive Brief
A compelling examination of how organisational purpose can drift when short-term pressures and personal ambitions override founding principle, essential viewing for boards seeking to understand the ongoing vigilance required to maintain purpose-practice alignment.
The Setup
The film follows Ray Kroc's transformation of McDonald's from a single restaurant concept created by the McDonald brothers into a global franchise empire. What begins as a story about operational excellence and customer focus gradually becomes a cautionary tale about how mission drift can fundamentally alter an organisation's character.
The McDonald brothers represent purpose-driven leadership—their original concept emphasised quality, service, cleanliness, and value. Kroc initially champions these principles but gradually subordinates them to growth and financial optimisation.
Governance in Action
The early scenes demonstrate perfect purpose-to-agenda alignment. The McDonald brothers' obsessive attention to operational details serves their clear mission of delivering consistent, high-quality fast food.
Every process decision connects directly to customer value creation.
Kroc's initial success comes from understanding and amplifying this purpose alignment. His early franchise presentations focus relentlessly on the McDonald's system and values, ensuring franchisees understand how operational excellence serves the broader mission.
The film's turning point occurs when Kroc begins prioritising expansion speed over quality control. Board meetings and strategic discussions shift from "How do we serve customers better?" to "How do we grow faster?" The mission filter gradually weakens until financial metrics drive all decisions.
Behind the Camera
Director John Lee Hancock structures the film to mirror the gradual nature of mission drift. Early scenes are bright and optimistic, reflecting the clarity of the original vision. As Kroc's priorities shift, the visual tone becomes harder and more corporate, suggesting the loss of human-centred purpose.
Michael Keaton's performance captures the seductive nature of mission drift—Kroc doesn't suddenly abandon his principles but rather convinces himself that growth serves the greater good. This rationalisation process reflects how boards can gradually lose sight of purpose while believing they're acting strategically.
The Founder’s meticulous depiction of its era underscores the influence of organisational culture and values. The stark contrast between the brothers’ close-knit business and Kroc’s expansive corporate structure reveals how rapid growth can reshape an organisation’s fundamental character.
The Business Case
This film illustrates several governance dynamics that experienced directors will recognise. The tension between maintaining quality standards and achieving growth targets appears in every scaling organisation.
The McDonald brothers' insistence on operational excellence conflicts with Kroc's demand for rapid expansion, a dilemma familiar to boards balancing stakeholder interests.
The financial engineering that enables Kroc's ultimate victor - shifting from franchise fees to real estate ownership - demonstrates how business model innovation can serve growth while undermining original purpose. The brothers created a restaurant system; Kroc built a real estate empire that happened to sell hamburgers.
Most significantly, the film shows how purpose drift occurs gradually through seemingly rational decisions. No single choice appears to abandon the mission, but the cumulative effect fundamentally alters the organisation's character and stakeholder relationships.
Cultural Context
"The Founder" emerged during a period of increased scrutiny of corporate purpose and stakeholder capitalism. The film's critical view of pure growth-focused strategy reflected contemporary debates about sustainable business models and organisational responsibility.
The McDonald's story resonates because it parallels the experience of many iconic brands that began with clear missions but evolved into primarily financial entities. The film serves as a case study of how a founder's vision can be both preserved and betrayed through institutional growth.
Hancock's previous work on corporate and historical subjects lent credibility to the film's examination of business transformation and the human cost of institutional change.
Boardroom Application
- Implement Regular Purpose Audits: Like the McDonald brothers' obsessive attention to operational standards, boards need systematic processes for assessing whether current activities serve a stated mission. The film shows how gradual drift can occur without conscious abandonment of principles.
- Create Mission Filter Discipline: Every major strategic decision should include an explicit evaluation of purpose alignment. Kroc's real estate strategy might have been financially brilliant, but it fundamentally altered McDonald's identity from a restaurant company to a property empire.
- Monitor Culture Alongside Metrics: The film demonstrates how financial success can mask cultural erosion. Boards need qualitative indicators of purpose alignment, not just quantitative measures of performance.
The film's most sobering lesson is that purpose drift often occurs through success rather than failure. Organisations can achieve their financial objectives while losing their soul, making ongoing vigilance about mission alignment a critical governance responsibility. The McDonald brothers' fate—marginalised by their own creation—serves as a warning about what boards risk when growth becomes disconnected from purpose.
Take Action
Concerned about mission drift in your organization? Try our "Purpose-to-Agenda Alignment Checklist" at your next board meeting.
