A recipe for consistency

(Fortune Magazine) -- When David Novak, the 54-year-old CEO of Yum Brands (Charts, Fortune 500), was flying to Australia last February, videos of rats scampering through a Taco Bell in New York City hit the web. "Honesty, consistency, and continuity of communication are key to managing through these issues," he says of how he handled every executive's nightmare, adding that it typically takes "six to nine months to fully recover" lost sales anytime there's a food-safety issue.

Controlling vermin, however, is not his greatest challenge. For Novak, whose company's holdings include KFC, Taco Bell, Pizza Hut, A&W, and Long John Silver's, one of his most demanding tasks is creating an integrated culture -- a supersized order since the company has more than a million employees in over 100 countries. Here Novak shares with Fortune his recipe for unifying his team and tips that might help explain how the Kentucky company -- which is somewhat ironically using "Sweet Home Alabama" in ads to market the Colonel's chicken -- is able to sell its all-American delicacies worldwide.

DO YOUR OWN TALKING. Several times a year Novak runs a three-day training seminar for Yum managers in which he shares stories from his own career. It is an intimate way of spreading values among employees and gives them a chance to learn what's happening at Yum. "They see their CEO, and it makes a big company small," says Novak. "They learn how we're looking at our strategy. So they walk away with more knowledge. If you have more knowledge, you care more about the company, and you're more committed."

USE MARKETING TOOLS IN-HOUSE. Novak will sometimes ask a manager who's trying to lead his team on a new initiative, "Are you a good ad or a bad ad?" Meaning that just as a good advertisement has to be engaging and deliver a clear message, a good leader has to do the same with a new idea to persuade a team to execute.

SHOP YOUR STORES. When traveling, Novak often shows up at his restaurants incognito for what he calls "blind tours." "You're wearing jeans and your hat, and you get a sense of the speed of service. You see the world as a customer sees it," he says.

PICK YOUR BATTLES. Yum's restaurants have become targets for both nutrition advocates and animal-rights activists. Yum has responded to the former and ignored the latter. In the past year, both KFC and Taco Bell have stopped using trans fat in their cooking oils, switching to soy and canola alternatives. Animal-rights activists are, well, a different breed: One threw a bucket of red dye and white feathers at Novak a few years ago, and protesters have picketed in front of his church. Novak says Yum does not respond to corporate terrorism. And there are no plans for KFC to go vegan.

Sticking together: These multibrand firms make an effort to create a sense of unity.

IAC (Charts, Fortune 500): CEO Barry Diller gathers the heads of his 65 brands four times a year, sometimes in his home.

INTERCONTINENTAL (Charts, Fortune 500): Some 125 execs from across the company's seven hotel brands meet once a year and schedule calls in between to share ideas.

ESTÉE LAUDER (Charts, Fortune 500): To help build parent-company loyalty, the beauty giant rotates managers among its different labels.