Four seasons goes to paris case study

In this case, The “Four Seasons goes to Paris” is considered as a well renowned and challenging example in organizational design, which I would like to emphasis on five main parts: intro

Four Seasons goes to Paris

Organizational Design

Nguyen Thi Kieu Khanh (Kiki) Master class

Professor: Walter Mareovich February, 2018

Table of Contents

Executive Summary 2

Introduction 2

Discussion 3

Corporate management 3

The Four Seasons’ Adaptation to French culture 6

Performance weakness 10

Conclusion 11

References 11

Executive Summary

The Four Seasons Hotels & Resorts are one of top leading hotel operator of luxury hotels worldwide Moreover, they are well-known for high standard value service to their customers and guests’ pleasant In 2002, operating in over 24 countries and managing

53 properties, The Four Seasons Hotels & Resorts has been experiencing to adapt a wide range of distinct cultures Refreshingly different approaches to specific regions would require suitable adaptations within the company culture and region culture These adaptations can be a classification of tangible features (laws, organizational structure, etc.), service quality, and changes in human resource and management styles

In this case, The “Four Seasons goes to Paris” is considered as a well renowned and challenging example in organizational design, which I would like to emphasis on five main parts: introduction of the company, corporate management, its adaptation to French culture, performance weakness, and conclusion

Introduction

Established in 1961 by the founder - Isadore (Issy) Sharp, the story of The Four Seasons Hotels & Resorts has begun with its first hotel in downtown Toronto, Canada This Canadian-based company, for more than 50 years, has transformed from a motor hotel into the international hospitality industry Owning 112 properties in 46 countries currently (updated in 2015), the founder’s vision was to create a chain of luxury hotels that offered excellence in service and amenities Additionally, Four Seasons has redefined luxury for modern traveller in the process

Since the first opening of Four Seasons in London, United Kingdom in the 1970s, this hotel had achieved its success to bring a clear future direction and pioneered its signature of services Remarkably then, the company had found its niche: mid-size hotels of “consistently exceptional service”, which has been maintaining to “maximize the value” of guests’ time until now Doing so, Four Seasons aims to be the world’s

leading luxury hospitality company that “manages the finest hotels, resorts, and residence clubs wherever we locate” with “a deeply instilled ethic of personal service” Within thirty years, Four Seasons had expanded into all Canada, North America, and several destinations in Europe and Asia in success As fifty years went past, this company had grown in both size and reputation all over the globe And entering its sixth decade, Four Seasons has continued to maintain its global expansion to enhance its leadership in luxury travel

As a result, Four Seasons was ranked as one of 100 Best Companies to Work For in FORTUNE Magazine for the twentieth consecutive year since 1998

Interestingly, one of its most challenging situations of this company is entering Paris, France analyzed in “Four Seasons goes to Paris” case study (Hallowel, 2002) This company renovated the Hotel George V and renamed to Four Seasons Hotel George V Paris in 1999, becomes its first French property As a senior Four Seasons manager said:

“Europe is different from North America, and Paris is very different I did not say difficult I said different” This case presents how Four Seasons has approached to a new national culture with strong differences in organizational culture; especially to French culture, and adapted perfectly by some key elements, described in the following

Discussion

Corporate management

During its well-known hospitality service more than 50 years, Four Seasons has chosen its corporate mission statement based on the Golden Rule – to “treat others as you wish they would treat you”, as its core value From that, the managers and employees presented the firm’s values through their practical behaviors to their guests, shareholders, and colleagues

Sharp emphasized that “The Golden Rule is the key to the success of the firm”, shaping a strong relationship between the management, guests and employees Based on the Golden Rule, the management monitors the activities of the employees and the functions to guarantee the prosperity of the firm, and increase long-term profits

Furthermore, “family” was referred as a strong adherence between corporate and field managers, along with rules, traditions and customs, and tough love in Four Seasons And, the employees and managers were targeting to work for their firm, not for the individual property, as their powerful “one-firm sentiment” They can work cooperatively together, and respecting contribution and importance of others so as to satisfy the guests Thus, people in Four Seasons are a key asset which can provide a sense of dignity, pride and satisfaction in what they are doing

Additionally, the top managers are comfortable in widely international areas They are

“global citizens”, who can live and adapt to every different culture, language and country Thus, Four Seasons hotels are like cultural specialties that the managers desire achieving Importantly, the orientation of customer service enlarged into every managerial level at Four Seasons hotels For example, managers, sometimes, assisted the staffs to clearing restaurant tables It clearly identified the willingness and flexibility

to the service

Hence, the Golden Rule is the foundation of the values and culture at Four Seasons hotels and resorts, which spreading successfully to every city, country worldwide Moreover, the managers and associates at Four Seasons made enthusiastically practical service culture, which differentiated Four Seasons from other firms

Approaching to international growth

“Each hotel is tailor made” is to adapt to national environment and represent the culture

of its destination “When you sit in the Four Seasons in Bali, you feel that you are in Bali.” It demonstrated the diversity and singularity of this company Even Four Seasons hotels are original Canadian products; their intangible styles are definitely strong, unique, and perfect for different countries

In tangible products, Four Seasons hotels and resorts are the pioneer of service and facilities

in the hospitality industry, which became the first hotel including bathroom amenities (e.g shampoo, bathrobes, hairdryers and make-up mirrors) in their hotel rooms Also, it is the first firm providing 24-hour room service, overnight dry cleaning, and fitness centers Thus, the products in every Four Seasons’ rooms are convenient to the guests’ requests, from the public spaces to the bathroom More than that, Four Seasons’ properties were designed

to be suitable with the perceptions and differences in every culture For instance, the

restaurants are more important in hotels in Asia, so they enlarge more restaurants in every property in Asia Or, the bathrooms in Europe tended to be small while the lobbies in Far East need to be large for guests to see and to be seen

In addition, seven intangible Four Seasons’ “service culture standards” were implemented to all associates around the globe at all times (SMILE, EYE, RECOGNITION, VOICE, INFORMED, CLEAN, and EVERYONE) to shape the rules and exceptions in international growth In addition, the management will give exceptions to be familiar with local flexibility and sense, forwarding culture standards For instance, associates’ uniforms are differently changeable cloths in Bali or Chicago To be added, they can change their clothing uniform when being dirty, showing the respect and dignity of the organization Also, “if you can do something for a client that goes beyond a standard, do it”, managers told the employees, as the desire of minimum expectations to the customers The associates at Four Seasons are inspiring and impressive with the understandings of its cultural standards, which are not similar to other companies Opposed to its standards, Four Seasons used both external and internal auditors to evaluate the performance of every property Thus, it brought the clarification in measurement programs, and contributing to the relationships between people and organizational culture

Inspiringly, an “intelligent, anticipatory, and enthusiastic service” was spreading to every corner of Four Seasons hotels The management focused on both intangible and tangible elements in service quality When the associates are distinctive, adaptable, empathetic, and anticipate the needs of guests, the interaction between guests and employees will be close-knitted, which built and maintained the customers’ trust

Furthermore, Four Seasons enables to improve its service until meeting the satisfaction

of the guests Take scrambled eggs and “oeuf brouillés” as an example, one couple ordered an omelet and scrambled eggs The man sent the omelet back and wanted scrambled eggs Then he gave it back, the second time, because of not his expectations

It turned out that scrambled eggs and “oeuf brouillés” are different between America and France Thus, Four Seasons did not charge the couple for that, and adjusting to deliver the service with spectacular patience and heart

International structure of the organization

The management of Four Seasons Hotels and Resorts implemented the firm’s regional management structure to increase the highest service quality at every property In each property, a general manager will be responsible for supervising daily operations and then reporting to one of the thirteen Regional Vice Presidents or one of the two Senior Vice Presidents, Operations As well as, general managers will have a supporting team including a General Marketing Director, a Regional Human Resources Director, and an Area Director of Finance

The top management team of Four Seasons has its longevity, which has been working almost for more than 25 years They mostly work as full-time employees of Four Seasons Hotels and Resorts, with partly managing regional matters Their traits specially include a respect for modesty and compassion, an international flair, and a “no excuses” mentality to their peers Thus, service orientation like a sensitive sense, became a significant element of every manager at Four Seasons since several years of experienced working These created comfortable and close-knitted relationships between the management team and the colleagues

Additionally, the price of Four Seasons’ rooms is flexible in every city in the world, but mostly this hospitality company focuses on the luxury and ranged from 300 to more than 1,000 dollar per single room

As a consequence, the management of Four Seasons aims to give the best high quality service to the guests around the globe in both tangible and intangible products, suitable with every cultural difference

The Four Seasons’ Adaptation to French culture

Service landscape

Two well-known French art deco architects designed George V, one of six historical hotels known as “Palaces” (large, historical, and luxurious) in the 1920s, locating in a Paris’ most fashionable district Due to the pride of French history, culture and landmarks, Four Seasons tried to preserve original French architecture and physical design while renovating and developing some parts of the location “I would like guests re-discovering the hotel to think that I had not changed a thing-and, at the same time, to notice how much better they feel within its walls”, Rochon stated in the case study

Closed in two years, F.S George V renovated the facility to meet the needs of its operation (e.g art deco windows and balconies, reduced rooms, tapestries) while keeping the meaningful and prideful symbols, signs and artifacts to reflect the combination of luxury, innovative design and classic heritage In addition, Le Calves stated “Paris is a city of fashion and culture, artistic and innovative”, in the case study, thus the design of lobby should be large to contain one thousand roses as spectacular symbols of French and international culture

French laws and regulations

Four Seasons’ management has built American life-safety standards in Paris; meanwhile, it has been following local laws, business culture, and specialty of its citizens, affecting design and workplace Although French rules and laws are not straightly different from other countries, they are restrictive, especially labor laws The management of Four Seasons decided to adapt French culture by implementing several practical policies

First, food and garbage have to be travelled in different corridors and elevators, to ensure the hygiene in France Second, the employees have a right to work near the light (a window) for some specific hours per day Thus, when designing the hotel, there should have many windows as possible to follow the laws Third, Four Seasons committed to the French law of 35-hour work week, not similar to other hotels (up to

40 hours), targeting to a competitive attraction for the employees Although the managers did not understand the impact of the 35-work week, they had still implemented to the French spirit, which each associate can work 214 days per year with around 1,500 to 1,600 workable hours, comparing to approximately 2,050 hours in the United States, and every 80 managers had to have two consecutive days off per week As a consequence, the labor laws explained for the increase of staff ratios in Paris,

as illustrated 2.5 employees-to-room ratios at George V whereas 1.6 in worldwide average

French law ruled that a comité d’entreprise (a staff committee) is a group of more than

50 employees in organizational establishment, which presented the decisions of management affecting the employees (e.g salaries, work hours) Therefore, Le Calvez at Four Seasons George V hosted the monthly meeting of the committee, including union

representatives To adapt the culture, Le Calvez did anything he can to adjust to be suitable with the company, even it is similar to other property with different title

French management

Due to the differences in French culture, a general manager is required to embrace the love and respect for others and enhancing social, cultural, and ethnic integration Therefore, Four Seasons decided to arrange Le Calvez to be general manager of Four Seasons George V in Paris At first, he hesitated to take this position because of his sensation between labor and management in French culture However, he had seen the resulted great changes at The Pierre, which encouraged him to take this position (This kind of traits can be proved to be “seeing is believing” (seeing something works and following the process) as French culture.) He possesses more than twenty-five years of international hospitality’s experiences, but also French culture as his home country He

is open-minded, visible, welcomed to all the employees

Le Calvez usually encouraged the colleagues to call by their first name to each other, not Monsieur/Madam with their last name as tradition It would present a friendly, relaxed, and direct relationship between the managers and employees Then, to help him and his team of Four Seasons George V in smooth opening, Four Seasons assigned a task force of thirty five people as a common “culture carriers” to establish the norms, listen for the problems, avoid rumors, and communicate effectively the right information The task force included both veteran Four Seasons managers and associates to get the property

up and running in a physical way It is a strong symbol which supports adherence to the whole firm, not one specific property; thus, the members could understand and be inspired how Four Seasons does things Another advantage of this task force reveals the managers who will become general managers to do the process of hotel openings

To prepare for the hotel reopening, Le Calvez invited the representatives of various unions to lunch and then touring the whole hotel so that union representatives could experience what was done and excited about the hotel Even this approach of unions were not familiar with French people, Young felt it was easier than in New York The reason is because of the French institutions with strict and predictable laws whereas hot-tempered and self-centered American individuals in leadership

To attract high-quality employees, F S George V’s managers decided to advertise the recruitment with higher salaries than any others, which brings a lower turnover rate of 11% compared with the hospitality industry average of 27% Additionally, the managers would interview potential employees four times, including the last interview with General Manager They look for the right attitude, and adaptation, suitably positive personalities; then, they are dedicated to have intensive trainings for their staffs To be added, from the great perspectives of veteran employees, they started to inspire others

by encouraging them to apply for vacancies Furthermore, the George V management preferred the employees with prior Four Seasons and/or U.S experience considered as their ambassadors to share great U.S experiences which French people did not know about

As a result, the oriented culture of the Four Season Hotel step by step for its associates increases employee efficiency, and then increasing customer satisfaction and retention that leads to higher sales

Human capital

Le Calvez and his team applied an employee-of-the-month and employee-of-the-year program Although this program had not been done in France before, the management did it successfully, which could recognize those who perform greatly and then being in recognition and rewards It is quite similar to the cultural differences between IKEA Sweden and China IKEA China applied to have “star co-worker” to reward best employees and encourage co-workers to distribute their greatest performance and increasing productivity while IKEA Sweden did not Moreover, applying the annual evaluation (unfamiliar with French people) was an open and beneficial purpose for maintaining great employees and their productivity, which French employees could adapt when being needed Then, the whole team could celebrate achievements if highly great property rankings In addition, a “Plan d’Epargne d’Entreprise” was a combination

of tax-deferred savings account and 401(k) type retirement plan, applied for George V associates It is clarified as the employees could contribute up to 4 percent of their salary (plus 2 percent from the hotel, based on profitability) to be their agreement of retirement plan