Four Seasons Goes to Paris

53 Properties 24 Countries 1 Philosophy

2002 – Four seasons hotel & Resorts: the worlds leading operator of luxury hotels

Diversity and Singularity People come first

ONE SHOULD TREAT OTHERS THE WAY HE EXPECTS TO BE TREATED

= THE GOLDEN RULE

Performance

Generally Operated and not owned midsized luxury hotel and resorts

1996-2000: Revenues increased by 22.6%Operating Margins: 58.8% to 67.9%Revenue per room 32% that US competitor, 27%

higher than European competitor2001 Revenues & earnings had dropped (103074-

86486) (check out financial statements again, after finance-

include ratios, etc..)

Organizational Hierarchy

President

Hotel GM’s

Hotel Staff

RVP(promoted from

GM position) (13) Support System: •Regional Human

Resources Director

• Area Director of Finance

• Regional Marketing Director

For each environment: stake holders, managers,

employees, and for clients the GOLDEN RULE IS RESPECTED

BUSINESS DESIGN MODEL

PLAN

DO

CHECK

ACT

Plan:What?

• Golden Rule • Global but local: Preserve and adapt locally–Managers are “world citizens” –Firms top managers comfortable in

international settings–Setting clear goals with management standards

• Enabling services• Enhancing services• Diversity and Singularity• Global Uniforms Standards- to evaluate

performance against standards Internal and External Auditors

Do: =How?• GM responsible for supervising day to day operations

of a single property – rewarded on ability to deliver and maintain the highest and most consistent service standard in most cost effective manner

• Task force• Establishing Four Seasons service standards.

Enabling services are improved untill client’s satisfaction is reached: Example of scrambled eggs Vs “oeuf brouillés”

Enhancing services: creative differenciation:Example of the Guest Room Evening Service = orientation to detailed attention

Intelligent, Anticipatory and Enthusiastic Service No Excuses

→= S-E-R-V-C-E

The Seven Four Season “SERVICE Culture Standards”

SMILE

EYE

RECOGNITION

VOICE INFORMED

CLEAN

EVERYONE

Check: how well?

• FBM: Feed Back Management: Strong Allegiance to Firm – Internal employees surveys– Feedback on managerial system from employees,

through a monthly 30-employee group meeting–Managers daily morning meetings

• External feed back– Family experience , open interaction treating

employee as they are expected to treat clients: Golden rule, importance of the employee.

– Responsive to media– External service quality auditing

Act: constent improvement• Direct response to feedback• Constant improvement of service• Constant evolution therefore adaptation

to the changing expectations of customers

Other Culture habits

Modest, compassion and discipline

Very professional, not pretentious, detail oriented

Interested in people One firm sentiment Accountability

Facilities

• Landmark • Excellent Service • Luxury/Cultural

Design • Michelin Star

Restaurant • Spa

From the ORIGAMI napkins to the PAINT on the WALLS

There is NO ESCAPE from the SERVICE FACTOR!!!

It is EVERYWHERE and EVERYTHING!

FOUR SEASONS: MASTERS OF LUXURY HOTEL SERVICES FOR THE PAST 30 YEARS

SUCCESS = SERVICE• DISTINGUISHING EDGE - “CONSISTENTLY EXCEPTIONAL SERVICE”High quality, truly personalized service. Maximize value of customers time – According to Grönroos’ Service Marketing Triangle this is a ‘value creation service.’“the distance between the employee and the guest has to be small.”

• “THE GOLDEN RULE”Treat others the way you want to be treated. Turnover is half of industry average of 55% “Very professional, not pretentious” “Family” Happy employee = happy customer (Fortune top 100 best companies to work for in North America) E.g. Each employee has several uniforms for when they get dirty…keeps dignity

•PROCESS CONSUMPTION - HIGH-TOUCH SERVICEFrom the moment of booking ONWARDS – SERVICE No PREBUNDLED PRODUCT! – Must be FLEXIBLE & EMPATHETIC! E.g. concierge taking guest to hospital and staying overnight “Intelligent service” able to cope with changing demand – anticipate guest needs

INTERNATIONAL hotel

INTERNATIONAL MINDSET

GLOBAL BUT LOCAL“Our strength is our diversity and our singularity” – Corinthios (President Europe,

Middle East & Africa)

• LOCAL APPROACH - DIVERSITY!“each hotel is tailor made” adapted to its national environment – David Crowl, VP sales & marketing Europe, Middle East, and Africa e.g. more restaurants in Asian hotels When waking up in Instanbul hotel you know you are in Turkey

• SINGULARITY“the process for opening and operating a hotel is the same everywhere.” Standards are universal e.g. clean room, good breakfast….but done with own style

•7 SERVICE CULTURE STANDARDS – KEEPING SERVICE INTERNATIONAL!!!Standards create a strong foundation but yet can be locally flexible e.g. do not leave coffee pot on table in France as perceived as lack of service Expected of ALL staff ALL over the world at ALL times Standards are MINIMUM expectations – GO BEYOND a standard if possible

Moment of truthFunctional qualityRelational qualityMoment of opportunity

Influence mood through music, flowers, friendliness, (decoration - feng shui – servicescape)

The 7 criteria of good perceived service quality pg. 89

Relationship quality pg. 91

EXPECTATIONS!!“When you are the best hotel in the world, how do you measure yourself when the only challenge is you? Essentially, the continual striving to surpass inevitably makes you better, which is why Four Seasons George V remains one in a million" Gallivanter's Guide, UK, March, 2009

Each Hotel Is Tailor made with the following in Mind:

Happy People

Staff :

Benefits , Work Hours, Direct , , employee training, Line, Open

Door

Government /Unions

Press:Open Communication

Customer:Service , Value,

Location, Rooms

Human Resources

Who We Are: Experiences of

Exceptional Quality

Superior Properties

Instilled Ethic of personal service Premier Luxury

Hospitality Company

What We believe: Greatest Asset: PEOPLE

Satisfying guests depends on the united efforts

How we behave: “Seek to deal with others as we would have

them deal with us”

How we succeed:Clear

understanding Conviction in what we do

Fair and reasonable profit

Goals, Beliefs, Principles

Golden Rule: One should treat others as they wish to be treated

ENTRY STRATEGY IN THE FRENCH MARKET

LOCAL APROACHGLOBAL MANAGEMENT

SERIOUS SERVICE DEDICATION

GEORGES VHeritage of the 8th arrondissement of Paris in the heart of the

luxury: architecture art, shopping…Parisian Culture

KEY LOCATION: PARISIAN LANDMARK

THE PLANSticking to the standard opening strategy of the hotel: Global buT local: to an extreme sensitive adaptation.Preserve the soul of the Georges V although rebuild for the international

traveler

Preserve:– French style in design and cuisine

• Renovations, decoration• House-keeping• French chef: « culinary coup d’etat » = very new to the four Season’s management

choice policy but respectfull to the customers expectations of a

« serious » french chef, «serious food »!– Adapt to the worker unions, and work week standards:

The standard work week in the hotel industry in france is actually up to 39 hours, other

industries 35h/week, which makes it a chalenge and a competitive attraction for employees

REBUILD:– French manager whom embodies the Four Seasons culture and

standards– Serious about golden rule– Resulting in better reception from the environment and work-force

– American style of management• The employee of the year• TASK-FORCE• AMAZING COMUNICATION!

– Direcrt line= 30 employee group meeting.– Manageer’s daily morning meetings– Familly experience 3 times a year, hotel opening doors to the employees and their family– Unexpectedly open and responsive to the press

Generally speaking the american style of management can be perceived as a bit imposing;– Allthough it is balanced with smooth adaptation to french

workers

– And the PDCA: design management style of the company is responsive to feed back and openied to managerial improvements

Do the Lessons from Four Seasons Going to Paris apply to Luxury Service Firms

Entering Markets Other than France ?

YES

All countries in all service industries: RETAIL INDUSTRY

SPA INDUSTRY FASHION INDUSTRY SERVICE INDUSTRY

REAL ESTATE

SERVICE IS ABOUT PERSONALITY THEREFORE CULTURE AND NEEDS TO BE APROCHED LOCALY